Samsung - The Making of a Global Brand

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Case Details:

Case Code : MKTG055
Case Length : 15 Pages
Period : 1998-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Samsung Electronics Corporation
Industry : Consumers Electronics
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Now they're in consumers' consideration set. After Sony, they have the potential to be the No. 2 brand globally."

- Jan Lindermann, Global Director for Brand valuation, Interbrand in 2001.

Emerging Giant?

In 1998, South Korea's leading consumer electronics major, Samsung Electronics Corporation (Samsung), entered into an agreement with the International Olympic Association to sponsor the 1998 Seoul Olympics. According to company sources, Samsung wanted to sponsor Olympics to establish itself as a global brand.

Analysts felt that by associating itself with the Olympics, Samsung would increase its brand visibility and brand recall among its consumers worldwide. They also pointed out that to become the next Sony (Refer Exhibit I) of the consumer electronics market, Samsung would have to invest heavily in marketing.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

In the late 1990s, Samsung entered into various marketing alliances with companies worldwide and sponsored events to enhance its brand awareness. Due to its marketing efforts, its brand value appreciated by 200% from $3.1 billion in 1999 to $8.3 billion in 2002.

Consequently, in 2002, Samsung emerged as the only non-Japanese brand from Asia to be listed in the global top 100 brands valued by Interbrand Inc1 (Refer Table I). The company was ranked 34th in Interbrand's list of the world's top 100 brands.

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1] Interbrand is a leading brand consultant established in 1974. Interbrand lists top 100 brands of the world in association with the BusinessWeek Magazine.

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