Do you well know about Samsung? We can often see Samsung advertisements in the streets or anywhere. Samsung is highly reputed as its mobile phones and it has been ranked as 6th biggest company in its brand reputation. In this way, Samsung has high brand value and reputation not only in Korea, but also in Europe, USA, Asia and in several different countries in the world. Then, how could Samsung establish such a high brand value and reputation through times? We can find the answer from Keller’s Brand Equity Theory.
First of all, the theory contains 4 levels, and from the bottom, we have a fundamental element “salience”. This is about Brand identity. An entrepreneur basically has to know how people know about his brand and acquire right messages. Thus, the entrepreneur’s mission is to let customers know that his brand is at premium price with noble quality products. If he fails to give a right message to the customers about the high price, customers would wonder why the price is so high. Meaning to say, he has to “demonstrate” how his brand produces satisfactory goods and services to the customers. Samsung was successful in this mission that they could prove, in the market, that their brand has that “something” to satisfy the customers and naturally, of course, customers accepted Samsung’s price and its identity as a good brand. Moving to second level, it comes to “meaning”. It can be specified in 2 different sections; performance and imagery. It can give societal meanings, with positioning, onto reputation on goods, price, and product quality. For example, when selling a good fashion brand products, entrepreneur makes contribution to society with some portions of their income, then customers can have a pleasurable purchasing experience. Then, customers will more likely to have an affinity and loyalty to the brand. In case of Samsung, they could well build up this “meaning” level. Samsung has a tendency to give people a fantasy over their products by making people think as they know their stuff or they are professional while using Samsung products. Moreover, Samsung makes people to have a high loyalty on them by well activating CSR.
Third level is “Response”. It comes to judgments and feelings which mainly focus on reputation. A company will have good reputation if their visioning goods and services meet the needs of customers, in which this consequence reinforces on brand reputation. Samsung kept upgrading their brand reputation by Samsung pursuing for more professional and higher quality of products than their rival company Apple and providing their products to the customers in needs of their products. Last level is “relationships” which also can be said as “Resonance”. This level is closely related with customer loyalty. If these previous levels were a question like “who are you?”, “what are you?” and “What about you?”, then this fourth level can be a question of “What about you and me”. This level is a step of building affinities between a company and customers. It is also deeply related with resonance conception, if this level is successfully structured, customers have much lesser tendency to move to another brand. Furthermore, if this level is really strongly embedded between a company and customers, in some brands customers begin to form a community for the corporation. Samsung definitely was so successful to have several consumer made communities under them. Through times, Samsung’s efforts to manage the “before purchase service”, “purchasing service” and “after purchase service” were so successful enough to make people to have loyalty on them. Consequently, Samsung could have 7th ranked global conglomerate in the world.
Samsung has strongly structured themselves according to Keller’s Brand Equity Theory and became a highly valued company with high customer loyalty. In 2017’s statistical report, Samsung has 66,219 million dollar brand fund and ranked as 7th biggest corporation amongst several global conglomerates.