"What helped Samsung to become an industry leading technology company was the marketing strategy they applied” (Sepherteladze 2015). [Photo: Saba Sepherteladze ׀ Inevitable Steps]
On March 1938, Samsung, meaning “three stars” in Korea, first started as a trade exporter of dried fish to China. It ventured on other businesses such as textiles and life insurance. Then in 1969, it started manufacturing black and white televisions. For the next ten years, Samsung has developed an even broader product line that includes washing machines, refrigerators, and microwaves (Kovach 2013).
In the 1980s, it focused more on electronics and began manufacturing colour televisions, personal computers, videocassette recorders, and tape recorders. Today, almost eight decades from when it was first stablished, Samsung is considered as one of the leading electronics company worldwide.
Samsung is considered as one of the best providers of smartphones today and is regarded as Apple’s arch rival, another leading electronics company.
At the Mobile World Congress in 2010, Galaxy S, which is Samsung’s first flagship android phone, was introduced. Certainly, it was a huge success as it is now on its seventh generation. Its latest flagship phones are the Galaxy S7 and S7 Edge released last month in the US and just this month in Australia.
“Rethink what a phone can do” (Samsung 2016). This is what the brand campaign says about these two phones. Samsung has pushed its boundaries in developing smartphones and created great changes. From its predecessor, Galaxy S6 and S6 Edge, the Galaxy S7 and Galaxy S7 Edge have a slimmer body, low-light camera that lets you take clear pictures in the dark, water- and dust-resistance, longer battery life, compatibility to both Gear 360 and gear VR, and an expandable microSD cards that gives you more storage for music, movies, and photos.
All these features are the central message of the latest marketing advertisement of Samsung. Moreover, according to Simpson (2016) of Gizmodo Australia, this is the best ad of Samsung ever. Below is the ad shown during the Oscars last February 28th, and apparently, it is just one of the series of ads Samsung has prepared for its new product line.
The next video is the official introduction ad shown across Australia.
Sales reports say that the Galaxy S7 duo exceeded expected sales. Consumer Reports even believe that the Galaxy S7 is the best smartphone in the world (Smith 2016). The Consumer Reports reviewed 49 smartphones based on 10 categories such as battery life, camera, processors, and screen resolutions, and the Galaxy S7 and S7 Edge have ranked first and second (Aparri 2016).
Analysts estimated an increase of 30% to 40% of shipped units, which is also higher than what was forecasted, outperforming its preceding models. It is also the first of the Galaxy S series to reach 10 million just in its pre-orders (Aparri 2016).
Compared with the first quarter sales report last year, Samsung has increased its profits by 10.4% and revenue rose 4% . In the U.S., the Galaxy S7 duo sold 30% more than the Galaxy S6, 20% more in Western Europe, and 10% more in China (Lee 2016).
Though market analysts were able to estimate of the new units sold, Samsung refuses to provide its sales figures since its flagship Galaxy S series have been introduced in the market. However, in rare remarks of Samsung Electronics Co. mobile chief D.J. Koh, he said: “I’ve gained confidence to do well after checking responses from major retailers and holding meetings with carriers in China” (Kim 2016).
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Aparri, J 2016, Samsung Galaxy S7 and S7 edge top in consumer reports review while Mophie introduces juice pack, JKNUS, retrieved 25 April 2016, <http://en.jknus.com/articles/2718/20160324/samsung-galaxy-s7-s7-edge.htm>.
Kim, Y.C., 2016, Samsung sees strong sales in Galaxy S7, The Korea Times, retrieved 25 April 2016, <http://www.koreatimes.co.kr/www/news/tech/2016/03/133_200733.html >.
Kovach, S 2013, How Samsung went from a dried fish exporter to one of the top names in tech, Business Insider, retrieved 22 April 2016, <http://www.businessinsider.com.au/history-of-samsung-2013-2?r=US&IR=T>.
Lee, M 2016, Samsung Electronics Operating Profit Driven by Galaxy S7 Sales, The Wall Street Journal, retrieved 24 April 2015, <http://www.wsj.com/articles/samsung-electronics-operating-profit-driven-by-galaxy-s7-sales-1459988665>.
Samsung 2016, Galaxy S7, Samsung, retrieved 20 April 2015, <http://www.samsung.com/au/>.
Sepherteladze, S 2015, Samsung marketing strategy: The master brand, Inevitable Steps, retrieved 22 April 2016, <https://inevitablesteps.com/marketing/samsung-marketing-strategy/>.
Simpson, C 2016, This galaxy s7 video is Samsung;s best ever ad, Gizmodo Australia, retrieved 23 April 2016, <http://www.gizmodo.com.au/2016/03/this-galaxy-s7-video-is-samsungs-best-ever-ad/>.
Smith, C 2016, Consumer reports: Galaxy S7 beats iphone to become the world’s best smartphone, BGR Media, retrieved 24 April 2016, <http://bgr.com/2016/03/23/galaxy-s7-review-consumer-reports/>.