Building Brand Architecture: Samsung Vs. Huawei

Building Brand Architecture: Samsung vs. Huawei 

Introduction

This report builds and examines the brand architecture of two brands – Samsung and Huawei - in the smartphone market. The two brands are chosen as they compete in very similar markets and yet have very different brand personalities. Samsung and Huawei are the most valuable brands in the smartphone market, and this report will bring out the stark differences in the brand architectures of these two brands. The goal is to observe how consumers can have vastly different perceptions of and relationships with very similar products owing to the differences in brand architectures. 

Brand Architecture

The first step is to develop brand pyramids for both brands.

Brand architecture for Samsung

Brand Core/Essence `What we promised` Brand Personality- innovative, excellent male, 30-35 years old

Emotional Benefits: luxury, gaming experience

Product Benefits- Ease of use, trustworthy brand, record a video Product Attributes- Android, toggle fullscreen,face recognition

Brand architecture for Huawei

Brand Core/Essence- 'Make it possible' Brand Personality- innovative, flexible young girl, 2025 years old

Emotional Benefits-fashionable

Product Benefits- cheaper, suitable for outdoor extreme environment Product Attributes- Android, the high -speed ENP,

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Brand comparison

5-7 years ago, serious competition between Chinese brands and the Korean giant was out of the question. All the efforts of the Chinese were focused on creating cheap copies of successful gadgets, including parasitic technology. Over time, Huawei managed to destroy the bias about the quality of smartphones from China. Huawei does not have its own production base for creating displays, so it is forced to order them from third-party suppliers. Most models are aimed at young active users, which is reflected in the concept of smartphones:  bright design;  adequate cost;  excellent photo capabilities thanks to artificial intelligence data processing technology. In turn, Samsung is a recognized leader in the smartphone market, occupying 19% of the market. The company does not follow fashion, but dictates it, implementing innovative solutions in its flagships that other brands will be able to present only after 1-2 years. Unlike Huawei, Samsung has its own developers and production base for displays. Famous Amoled screens are 95% Samsung products. The leadership of the company is evidenced by the fact that even manufacturers of smartphones from the top 5, including Apple, Huawei use components from Samsung (displays, camera modules, etc.).

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Brand Value

Samsung remains the king of the smartphone space, accounting for 23% of the global market. It shipped 75.1 million units in the second quarter of 2019, representing a 6% year-over-year increase. Samsung remained the sixth most-valuable global brand this year with a value of $61.1 billion, up 2 percent from last year's $59.9 billion, according to Interbrand's latest top 100 best global brands list. According to Yonhap Samsung's brand value first surpassed $50 billion in 2016. The tech giant said its brand value has more than tripled for the past 10 years. Samsung added Interbrand acknowledged the company's growth potential based on future innovation technologies, including 5G, artificial intelligence and Internet of Things, and its efforts to deliver product innovations, such as the Galaxy Fold smartphone and Bespoke refrigerator. Brand Finance, the global authoritative consulting agency, released its ranking of the most valuable brands around the world in 2018. HUAWEI ranked twenty-fifth on Brand Finance Global 500 2018 with a value of 38046 billion dollars, and its brand value increased by more than 50%. Brand Finance, as the world famous brand value and strategy consulting firm, will assess the thousands of well-known global brands every year. It is one of the most credible global brand value evaluation agencies and its strict selection criteria includes not only Brand Strength Index (BSI), but also Brand Loyalty and Marketing Investment, etc. In addition to advancing year by year in the list released by Brand Finance, HUAWEI also appeared on the BrandZ Top 100 Brands and Interbrand’s “Best 100 Brands”. 

Sources Consulted

https://www.inform.kz/en/samsung-s-global-brand-value-exceeds-60-billion_a3576368 https://en.yna.co.kr/view/AEN20191017001600320?section=economy/industy https://www.media-marketing.com/en/news/huawei-25th-valuable-brand-world/