Samsung

Samsung - The TOP Brand in the World

According to the global brand scoreboard of 2004 from Interbrand,

Samsung, the Korean based electronics brand, has boosted its profile

and being listed as 21st valuable brands in the world. Its brand value

surged by 16% to 12.5 billion US dollars compared to the figure in

2003 which is 10.8 billion US dollar. (Simon, 2004) It becomes the

world’s leading brand in electronics and digital industry. This

achievement is closely related to its sponsorship strategies. Samsung

associate its name to the “TOP” plan, which is “The Olympic Partner”

plan. It is a plan which leads Samsung to be the top brand in the

world. However, there are many other programs to support Samsung’s

sponsorship strategy. Without these strategies the “TOP” plan will not

have such effectiveness and efficiency.

Samsung’s philosophy is “devote our human resources and technology to

create superior products and services, thereby contributing to a

better global society”. (www.samsung.com) Under this philosophy

Samsung has adopted a sport-based strategy in building its brand. The

multinational consumer electronics firm acknowledges the fundamental

role played by sport and by the Olympic Games as a promoter of its

brand. Vice president of corporate communication at Samsung, Il-Hyung

Chang, rationalizes the important role of sport sponsorship by stating

"sports sponsorship is a strategy that fits well within our operations

at Samsung….it’s an integral part of our company’s philosophy". Philip

and David, 2003 Entering into the “TOP” plan propels Samsung’s

sponsorship to a new era. It has an opportunity to act on the same

stage with the world top brand such as Coca Cola, IBM, and Visa, which

greatly enhanced its brand image. The company’s active and established

role in the heart of the Olympic Movement has contributed to its brand

value surge in recent years.

Samsung’s involvement with the Olympic movement began as a local

sponsor for the Seoul 1988 Olympic Games. Then it became the TOP

sponsor in the wireless telecommunications equipment category for the

Nagano 1998 Olympic Winter Games, Sydney 2000 Olympic Games, Salt Lake

2002 Olympic Winter Games and Athens 2004 Olympic Games. This status

as a global partner in the wireless telecommunications equipment

category will be continuing in the Torino 2006 Olympic Winter Games

and Beijing 2008 Olympic Games. Samsung have agreed to pay the huge

amount for corporate sponsorship because they recognize the vital

importance of sports marketing on their bottom line. The TOP plan

helped Samsung increase its brand awareness and enhance market

position considerably. Compared to the results of the survey held

before the Sydney Olympic Games, the amount of consumers that became

aware that Samsung Electronics was one of the 9 sponsors of the Games

approximately tripled. Unaided awareness of Samsung’s “Olympic

sponsorship” was 6.0%, it placed 2nd after Coca Cola.

(www.samsung.com)

Samsung want to accomplish two goals with all its sponsorship efforts.

The first goal is to build brand awareness especially create higher

level of awareness than its rival Sony. The effectiveness of Samsung’s

Sponsorship was shown at the ATHENS 2004 Olympic Games which had a

positive impact on brand awareness, with an increase from 57% to 62%.

(Samsung steps up Olympics marketing campaign, 2004) The second goal

is to enhance the worldwide imagery and attitudes towards its brand.

Samsung considered its commitment to the Olympic Movement is a key

element in positioning and strategy. It contributes to the success of

the Olympic Games and at the same time enhances Samsung brand image

and its market position.

Samsung built its brand through sponsor Olympic Games in the following

ways.

Samsung mobilized the organization for brand building. Both the

process and the result of a brand-building effort often have a key

payoff internally to employees, as well as externally to consumers.

Samsung sponsored ATHENS 2004 Olympic Torch Relay, which was the first

truly journey of Olympic flame. 1,900 torchbearers were selected from

over 40 countries including SamsungÐ"‚’s employees. (www.sumsung.com)

They received emotional benefits from pride in being associated