A Quick Analysis of Marketing Strategies Used By Apple, Samsung and Huawei (guest starring Sony and Xioami)





COPYWRITING BY ROO BRANDING

23.08.2021





The competitive smartphone market serves as an ideal environment to study the various advertising approaches and marketing strategies employed by major smartphone manufacturers as well as their effectiveness.


With customers’ decisions to purchase a smartphone heavily tied to their technology and feature offerings, we thought it would be interesting to see which marketing strategies work best (if at all) and thus provide useful pointers for marketers to better isolate what’s most effective.



APPLE





Lifestyle and Personality



Apple’s advertising focuses on branding itself as a personal lifestyle provider rather than selling a technology for its own sake. This is a strategy that has been successfully implemented by other brands, including Coca-Cola’s marketing.


Despite products more expensive on average compared to competitors and a small variety, their popularity is evidence for the significance that customer loyalties play in brand choice that was built up with consistent high-quality marketing - reinforcing what we already know about the effectiveness of marketing that focuses on a product’s relevance to customer’s lifestyles, sentiment and emotions.


It is interesting to note that even Samsung, with phone sales outpacing Apple by 5 percent and Xioami by 8 in Q1 2021, uses a similar line in their visual advertising and has also experienced tremendous success.


Through its promise to deliver products that fulfil customers needs, Apple allocates a sizable budget on marketing to engage its customers and learn what they would like to see in their next product - from ergonomics, design and user interface to features and real-world applications. This is arguably the largest contributor to the global success of its products.


From 2010 to 2015, Apple increased marketing spending from just over US$1 billion to US$1.8 billion. The expense that Apple affords to its marketing and R&D to design customer-centric products is the epicentre of a lawsuit the company filed against Samsung in 2011 for copying its design and features, which was finally settled in 2018.


Surprisingly, Apple's notorious customer service of highly conditional support, red tape, and non-ad hoc troubleshooting policy, Apple products remain popular - suggesting some merit to its replacement policy or its advertising strategy is in order.



Well-Received Advertising & Commercials



Overall, Apple’s advertising and commercials appear to be the most well-received compared to other smartphone manufacturers, which regularly receive millions of views each time they are released. This suggests that its advertising and branding campaigns have at least met with modest success.


To deliver on its promise of delivering products that fulfil customers needs, Apple allocates a sizable budget on marketing to engage its customers and learn what they would like to see in their next product - from ergonomics, design and user interface to features and real-world applications. This is arguably the largest contributor to the global success of its products. From 2010 to 2015, Apple increased marketing spending from just over US$1 billion to US$1.8 billion. The expense that Apple affords to its marketing and R&D to design customer-centric products is the epicentre of a lawsuit the company filed against Samsung in 2011 for copying its design and features, which was finally settled in 2018.


Tape and highly conditional support, as well as its non-ad hoc troubleshooting policy (it does have a robust replacement policy for defective products). Nevertheless, this has not significantly affected the popularity of its products overall, which suggests some merit to its replacement policy or its advertising strategy.


Interestingly, the comments section of official Apple advertisements on YouTube is closed, possibly to curb bots by competitors and other parties generating fake comments. Unsurprisingly, studies seem to agree that negative comments (genuine or not) have a real ability to affect how the actual message is perceived by audiences – and, unfortunately, online anonymity makes it easy for a few users to flood the comments sections on social media, often via the same bots used to falsify user counts in politically and socially sensitive issues. Yes, even megacorporations are not immune to online harassment.



SAMSUNG





With a global market share of 21 percent, Samsung is by far the most successful Android-based smartphone manufacturer, overshadowing even Google’s HTC Dream, the original developer of the Android iOS.


In addition to their tradition for innovation starting with the introduction of large screen smartphones to the world with their Galaxy Note (a trend emulated by all smartphone manufacturers today), Samsung also produces phones in a diverse price range to cater to different customers.


In 2018, it strengthened its offerings mid- to low- range phones in response to the rise of Chinese smartphone brands including Oppo, Vivo, Xiaomi, OnePlus, and RealMe. Samsung’s marketing efforts played a key role in helping the company identify what their customers need before implementing wide-ranging advertising and promotional campaigns to reach their intended audience – and today maintains a 22 percent global market share despite fierce competition from rising Chinese brands.


In 2019, it spent US$1.98 on marketing, producing some of the most effective campaigns and advertising, including the hilarious “Samsung makes fun of Apple” series of video commercials.



Good Marketing PR Saves Samsung From Burning Battery & Folding Screen Crisis



Samsung's handling of two of the incidents in 2016 and 2019 demonstrate the importance of marketing in maintaining good relations with customers and brand image – nothing short of a PR miracle.


In 2016, when the Galaxy Note 7’s batteries were setting the devices on fire, Samsung’s marketing immediately responded by apologising to customers and issued a return of all Galaxy Note 7s to be replaced with a free Galaxy S7. Instead of burying the crises with the Galaxy Note 7, Samsung went on to reassure customers that they would not repeat the same mistake with the Galaxy Note 8 - a move that eventually rebuilt the company’s reputation, proving again that customers appreciate companies that take their responsibilities seriously.



HUAWEI





Whether or not banning Huawei from the Google store and future collaboration with it is justified (we’re not here to discuss politics), it does show the importance that customers place on apps and services such as gmail, Google Play, productivity apps, games, as well as the feeling of security of their devices – all of which are elements that directly pertain to their lifestyle choices. The result: Huawei’s market share to plummet from 20 percent in Q2 2020 to just 4 percent in Q1 20201.


Huawei captured 20 percent of the global market share in Q2 2020 (need to see what happened during this time that sparked this). Its market share fell to 4 percent Q1 2021, while its regional competitor Xioami jumped to 14 percent.



Using Affordability to Grow Market Share



When it comes to reaching more customers, however, it is clear that prices matter, Huawei (and Xiaomi, other Chinese brands) focus on providing low price points for quality products to penetrate deep into the market. The pervasiveness of the products in turn creates brand awareness and their other product offerings.



Building Brand Awareness Through Pervasive Product Presence



Both Huawei and Xiaomi aim at deep market penetration to raise the visibility of their products to consumers. Through affordable quality products, their marketing strategy is to try to put their products into the hands of as many users as possible – generating significant passive brand awareness at minimal extra cost.


Recognising that this strategy can backfire if customers report negative experiences of their products, Huawei and Xiaomi both provide exceptional post-sales customer support to maintain the reputation as companies that care for more than just the point-of-sale.



SONY (XPERIA)





Sony’s failure to capture the attention of the global market is an interesting case study. Although the brand is well-received by those who know it, the tech company has failed to capture a wide audience.


Their first mistake is focusing exclusively on premium phones at high price points. Unlike Huawei, Xiaomi and Samsung that produce phones in various price ranges, Sony’s decision to alienate itself from the majority of consumers has led to their brand name being all but unknown.


Coupled with its unwillingness to strike better deals with local carriers, its strategy left them even more isolated – leaving a vacuum for other brands like Xiaomi, Apple, Samsung and Oppo to exploit. This led to its low market share today despite technological lead in many areas along with superb design and quality.


This video will help explain many other factors why Sony’s Xperia is, largely, a commercial failure: https://m.youtube.com/watch?v=j7QwJ-M_GAI