MGT605 Business Capstone Assignment Sample

• University : Laureate International Universities My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Business Practice

Questionnaire

Q1. Are you loyal towards Samsung brand and has it influenced you to try new Samsung Galaxy?

1. Yes

2. No

3. Maybe

Q2. Do you think the Samsung galaxy phones are reliable enough as compared to other brands?

1. Highly reliable

2. Moderately reliable

3. Less reliable

Q3. Do you have enough budget to try the new Samsung Galaxy smartphone recently launched?

1. Yes as it is cheap

2. No, because it is expensive

Q4. Has the promotional strategy by Samsung influenced you to try the new smartphone launched by Samsung?

1. Yes 

2. No 

Q5. Which competitor brand would you choose if not Samsung?

1. Apple

2. Vivo 

3. MI

4. Oppo

Q6. Are you expecting more of technical features in the Samsung galaxy new variable like updated software, excellent camera quality and dual-sim feature?

1. Yes

2. No

Q7. Did the physical feature like good look, slim and its availability in different colours attracted you to buy this Samsung galaxy smartphone?

1. Yes

2. No

Q8. Is this phone’s price fits into your budget of trying new phone?

1. Yes

2. No

Q9. Are you satisfied with the life of product of smartphones launched by Samsung Galaxy?

1. Yes 

2. No

Q10. The decision of buying a new Samsung Galaxy is because of?

1. Long product life

2. Good technical features

3. Good physical features

4. Fair budget

Introduction 

Brand extension is the strategy used by the brands wherein they launch different products under their brand but of different product line. It is used in increasing the brand equity. The brand extension helps in getting more customers and results in customer loyalty for varied products. The report will cover brand loyalty of Samsung on its product launch of Samsung galaxy variables. The Samsung has launched various variables to extend the brand and has faced many issues. The report sheds the light on issues faced by Samsung during brand extension and it impact on the customers. The impact on the customers was evaluated using the survey questionnaire that is using the primary data. The outcome of the brand extension by Samsung was analysed using the survey results and are shown as graphs.

Statistics of market capture by Samsung

In 2017, the market capture by Samsung was 22% and by apple was just 11% (Counter point market research technology, 2019). Samsung has many potential competitors and it is easy for Samsung to lose its customers to its competitors so there was a need to extend the brand so as to maintain the brand personality. The market share worldwide by Samsung is the highest that is 31.13 % which is significantly higher than its competitors such as apple who is at 22.01%, Huawei at 9.16% and Xiomi at 7.76% (StatCounter, 2019). 

Brand extension by Samsung

The brand extension has become a very good trend that gives a lot of benefits to the company. They serve different varieties of products under their brand name that has a direct impact on the brand personality and brand loyalty shown by the customers. Samsung introduced the brand extension with launching the Samsung galaxy variables and this extension has helped in improving the brand personality of Samsung. The methodology adopted to analyse the impact of brand extension on the brand personality. 

Methodology 

The survey was conducted that had ten questions and each of them aimed to ask the impact of Samsung Galaxy variable smartphones launch on the customers. The aspects of the questions are to test whether the customers are satisfied with the brand extension that is done by launching Samsung Galaxy variable smartphones, does it increase the brand loyalty of Samsung with the customers, does it improve the brand personality and what makes the people buy Samsung smartphones as compared to other brands. The response from thirty smartphone users were recorded using survey monkey and the analysis was done on the basis of these responses. The survey questions were designed keeping the above aspects in mind and all of them answered appropriately to analyse the impact of brand extension on the brand personality and the brand loyalty shown by the customers.

Table 1: Statistics of market share worldwide (StatCounter, 2019).

Outcome of brand extension

The outcome of the launch of the smartphone Samsung Galaxy was positive and it impressed huge amount of people. The device proved its quality, craftsmanship and the safety along with the infinity display screen that impressed a lot of people. This device was the product of brand extension by Samsung and it created a great brand personality for Samsung. The biggest rivalry apple was left out after the launch of Samsung Galaxy because of its ability to let the user unlock the phone using face recognition and also an earphone port (Hobbs, 2017). Other Samsung competitors such as Huawei and Oppo vendors gave aggressive responses to Samsung Galaxy S8 in which Samsung has put everything they had and prioritized its hardware. Samsung used very good promotion strategies to promote the launch of the new Galaxy phone and about 66.67% people agreed that good promotional strategies of Samsung informed them about the launch of this device. Apple is the highest competitor of Samsung according to the population poll. People would prefer apple over other brands if they are not supposed to buy Samsung. Around 86.67% people are expecting high technical features after the failure of Galaxy Note 7. 83.33% people are impressed by the physical features of this phone that is its slim look, many colours that are available in the market. Samsung Galaxy devices have long product life and the best features in the Samsung Galaxy devices are the product’s long life and good technical features.

Results of brand extension

The results of the data collected from the primary source that is from the customers that use smartphones states that only 43.33% people are loyal towards Samsung brand and 46.67% are not loyal towards this brand. Maximum number of people thinks that Samsung Galaxy smartphone is moderately reliable and very less number of people doubt its reliability. 63.3 % people agree that Samsung smartphones are cheap and this is also one of the reason for its high preference among people. 

Conclusion

The market capture of Samsung in the year 2017 was 22% and it was experiencing a great loss to its competitors. The brand extension strategy adopted by Samsung was to launch Samsung Galaxy smartphones and it has significantly increased the market capture. The market capture in 2018 b y Samsung was 31.13% and these figures clearly indicate the successful brand extension move made by Samsung which improved this brand’s personality and enhanced the brand loyalty of customers towards Samsung. The brand extension has positive impact on the brand personality and the brand loyalty and thus the brands should look forward to its extension.

References

Counterpart market research technology. (2019). India Smartphone Market Share: By Quarter. Retrieved from https://www.counterpointresearch.com/india-smartphone-share/

Hobbs., T. (2017). Samsung’s flashy Galaxy S8 impresses but the brand isn’t out of the woods yet’. Retrieved from https://www.marketingweek.com/samsung-galaxy-s8/

StatCounter. (2019). Mobile vendor market share worldwide. Retrieved from http://gs.statcounter.com/vendor-market-share/mobile