Why Samsung So success in the most deadly industry

Samsung is now identical with the smartphone flagship call “Samsung Galaxy” series. Now, Samsung phones has positioned at No.1 best seller product in 2016, which has dropped out the main competitors such as Appl.inc, Huawei, and Oppo (Bloomberg.com, 2016). This achievement generates the question to understand how Samsung can build a very successful product, brand and new product in the market.


The product is the most central in marketing. The product is something that the business offer to the customers, in exchange for the money from the costumers (Arndt, J., 1967). According to Dickson (1987), there are two categories of product in marketing, tangible goods or an intangible service.

The product differs by the intangibility, a service is an intangible process that cannot be weighed or measured, whereas a good is a tangible output of a process that has physical dimensions. Secondly, variability, the goods, and service variability are different, for a service product the variability is high for example, a hairs style provider may have different way to service every single customer

A company must fully understand what their core product and value that can offer to the customers (Grönroos, 1997). Therefore, the firm can create a value added elements to differentiate itself. In addition, a Dynamic strategy is important to understand, because a core product of a business can be change to adapt to this dynamic environment and business must adjust to what precisely they can expertly do compare to the competitor (Utterback and Abernathy, 1975).  This  becomes the factor that lifts the Samsung phone demand, the right strategy to create a product that is so valuable to the costumers make others competitors left behind. For instance, it offers the special futures such as the water resistance to which become a huge value and differentiation point to the costumers.


A brand can create a loyalty for a product. A brand is the formed by various activity that focuses on building an identity for the firm and product. This begins with the brand name and logo, this two elements is important because it can provide information about the firm and product and makes the product more favorable to the target customers.

A brand can create advantages for the costumers, by reducing searching time, offer consistency of the quality, and reduce customers’ risk. Similarly, the firm can enhance loyalty, charging a premium price and reduce competition risk by using a brand.

The most important aspect of the brand is Brand association, a successful brand depends on the brand association.  This is built from the costumers personal believe that the product represents their idea, personalities, and social status. Furthermore, brand personalities can capture the information specific to the brand and the perception of brand position in the market (Iacobacci, 2013). A successful brand association will build a brand community which is a huge advantage for the company because it is associated with high costumer’s loyalty to the product (Wood, L., 2000).

New product

A new product is a way to sustain in the market, a Company must introduce a new product to sustain in the market. The world is changing, this can be seen from the technology industry, it is become common today that every year there is a new type of trends in the market. The Philosophy of new product development is that a company can create the product in two ways top-down method or bottom up. Ideally, a company needs to create a product according to the costumers’ need which refers to the “Bottom-up” method. On the other hand, the “Top-Down” method is thought up the new idea about a product and develop it and the customers will involve somewhere in between (Utterback, J, 1975).


There is six stage in product development this includes idea generation, market potentials, concept testing, design and development, beta testing, and launch (Utterback, J, 1975). Marketing management is important in every aspect of the development.

In creating a new product the product lifecycle and diffusion of innovation analysis is important. The product life cycle is used to analyse the product evolution from the market introduction, growth, maturity, and decline, this is used to map where the marketing strategy  of the product can be implemented.  Similarly, the diffusion of innovation is used to analyse how the costumers will act to the product, in this model five type of the costumers are analysed as, innovators, early adopters, early majority late majority and laggards (Iacobacci, 2013). With this analysis, the marketer can establish the right marketing activity in particular time.

The right management of product, brand and new product have brought Samsung to sustain in the market, the application of bottom-up product development, help Samsung to build a product that is highly innovative and high in demand. in addition, the support from the brand that over the time has built very strong brand loyalty creates Samsung to maintain their success in the market.


Arndt, J., 1967. The role of product-related conversations in the diffusion of a new product. Journal of marketing Research, pp.291-295.

Bloomberg.com (2016). How Samsung Became the World’s No. 1 Smartphone Maker – Bloomberg. [online] Available at: http://www.bloomberg.com/news/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker [Accessed 22 Aug. 2016].

Grönroos, C., 1997. Value‐driven relational marketing: from products to resources and competencies. Journal of marketing management, 13(5), pp.407-419.

Iacobucci, D. (2013). MM4. Mason, Oh.: South-Western College Publishing.

Utterback, J. and Abernathy, W. (1975). A dynamic model of process and product innovation. Omega, 3(6), pp.639-656.

Wood, L., 2000. Brands and brand equity: definition and management. Management decision, 38(9), pp.662-669.

YouTube. (2016). Samsung Galaxy Note7: Official Hands-on – S Pen. [online] Available at: https://www.youtube.com/watch?v=EJbRm7_koyM [Accessed 22 Aug. 2016].

By: dyudhist@deakin.edu.au



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