Brand Loyalty: Apple Versus Samsung

Brand Marketing Words Awareness Loyalty Branding

In the wake of Steve Jobs’ death, everyone is lauding Apple’s marketing brilliance. But Samsung has been outsmarting iPhone in the smartphone market, claiming a 31.7 percent global share to Apple’s 14.2 percent. Other competitors, such as LG Electronics and Lenovo, trail far behind these two giants. What sets Samsung and Apple apart? Part of the answer is brand loyalty.

Measuring Brand Loyalty

Brand loyalty can be measured. By applying psychology and statistics, brand consulting firms such as Interbrand and Brand Keys have developed categories for quantifying consumer beliefs and values, expectations, purchasing habits, and buying behaviors. This yields accurate predictions about how likely consumers are to buy specific brands.

Since 1997, Brand Keys has applied this methodology by publishing an annual Consumer Loyalty Engagement Index. This year’s index used 54 categories to measure loyalty to 375 brands. The results showed that Samsung has overtaken Apple in smartphone brand loyalty.

Samsung’s Innovative Strategy

Why is Samsung winning? Samsung has risen to the top by updating its business strategy and product lines in response to market conditions. During the 1980s, the company held off competitors by studying what their customers were buying and investing in research to develop cheaper imitations. However, these lower prices came with lower profit margins than leaders like Sony enjoyed. Samsung chairman Lee Kun-hee foresaw that cheap labor from China would make low-price marketing unprofitable.

Lee adapted by eliminating low-profit consumer lines and investing in developing cutting-edge components for other companies, aiming to learn leading production methods to benefit Samsung’s future consumer lines. Lee also began rushing innovative technologies to production in small quantities, fueling demand, and then replacing current models with improved ones. This enabled Samsung to gain footholds in new niches faster than slower competitors.

Implementing this approach, Samsung began supplying memory components for Apple in 2005, sowing the seeds of smartphone patent disputes. Samsung Electronics entered the mobile phone market in South Korea in 1988. The company initially trailed industry leader Motorola, but by 2007, it had overtaken its rival to challenge new champion Nokia. Samsung entered the Android smartphone market with its Galaxy line in 2009 and, by 2012, it had surpassed Nokia.

Meanwhile, Samsung has kept its brand in the public eye by leveraging its participation in the Seoul 1988 Summer Olympics into ongoing sponsorship of high-profile events. In 2012 Samsung aired its first Super Bowl ad to promote the launch of its new Galaxy Note phablet-sized smartphone.

This year’s game followed up with a comedic ad featuring celebrities Paul Rudd, Seth Rogen and LeBron James showcasing Samsung smartphones and tablets. Commentators observed that the ad reinforced Samsung’s campaign to position itself as “cooler” than Apple, especially in the eyes of younger demographics.

Samsung’s next-generation appeal reflects its branding emphasis on innovation, embodied in the diverse Samsung Accessories that distinguish its lines from Apple’s unified look. The company projects a corporate vision of excellence in customer service through technology.

Samsung’s visual logo expresses this vision. The background ellipse with its white-on-blue scheme represents the universe and world stage, aiming to convey a combination of flexibility and simplicity with a sense of dynamic innovation. The blue background symbolizes stability and reliability, along with corporate citizen responsibility. Openings at either end of the ellipse represent openness to ideas and communication with the world. The English characters appeal to American consumers.

Samsung supplements this visual with a four-note audio logo. The notes embody the audio orientation of Samsung’s mobile phones and are designed to echo the auditory experience of using a smartphone.

Finally, Samsung adapts its branding to different demographics. Paralleling its American Super Bowl campaign, in India, the company has capitalized on the national popularity of cricket. Ads for other specialized markets such as Iceland illustrate the contrast between Samsung’s locally-diverse branding and Apple’s unified global branding.

Apple’s Design-Based Branding

Apart from Samsung’s own activity, one reason Apple’s brand loyalty has declined is because its image has centered around Steve Jobs, and Jobs is gone. When asked where Apple outdid Microsoft, Bill Gates emphasized Jobs’ sense of how design influences branding.

Apple’s commitment to superior user experience through superlative, simplified design has remained constant, even as its product emphasis has shifted from computers, to iPods, to iPads. Jobs’ passionate commitment to this mission personalized Apple’s brand in a unique way that built consumer trust and customer loyalty.

Apple’s emphasis on design simplicity finds perfect expression in the minimalist style of the Apple logo. In 1998, coinciding with the launch of the iMac line, Jobs streamlined Apple’s original rainbow logo into a monochromatic design more consistent with the company’s dedication to innovative design. Rumors of a new Apple logo for the next iPad mini leave the market wondering what the future holds for the brand Jobs built.

0 comments

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

7 Purchasing the best hand-made WOW GOLD at IGXE.com

7 Purchasing the best hand-made WOW GOLD at IGXE.com(0)

Accumulating WOW GOLD is not as simple as most of the players consider. The selling of items that the player loot from the monsters is not always possible even if the player spends the months after the months. There is a faster way to find sufficient gold. It is to purchase WOW GOLD from the

Why you need to consider money lenders in Singapore

Why you need to consider money lenders in Singapore(0)

Singapore is a nation that has been experiencing great levels of development in their infrastructure and business all around in the past decade. It is inevitable to not realize the innovative structure of new businesses in Singapore such that employment is increased and money lending is an essential activity in the nation. Money lending has

What Type Of Kenwood Connector Should You Use With A Kenwwod Radio

What Type Of Kenwood Connector Should You Use With A Kenwwod Radio(0)

Although there are multiple types and designs of Kenwood radios out there, there are only two earpiece connectors compatible with these radios. Kenwood has been able to design their earpiece connectors in such a way that they are compatible with all their vast types of radios. A large percentage of Kenwood radios utilize the 2

Audio Brand?

Audio Brand?(0)

Have you ever been on hold for a company and listened to some music on the line. It was probably this music that kept you on hold so you did not hang up in frustration. The thing is, this music is a really important marketing aspect that many companies usually overlook. I did a quick

So You Own A Small Business: What an IT Pro Can Do For You

So You Own A Small Business: What an IT Pro Can Do For You(0)

Small businesses have different IT needs than do large companies and corporations. They require some of the same services such as installing POS systems and securing databases, but larger companies usually have IT departments in place to address their issues. This means that they can opt to avoid outsourcing for services when small businesses have

read more

Contacts and information

Social networks

Most popular categories

© 2012 computimesinc.com All rights reserved.