Samsung Aims to Split Galaxy Brand, Creating a Premium Sub-Brand to Challenge Apple

Samsung Aims to Split Galaxy Brand, Creating a Premium Sub-Brand to Challenge AppleDespite consistently ranking among the top two smartphone manufacturers globally, Samsung's dominance stems largely from its mid-to-low-end devices. In the premium market, Samsung lags significantly behind Apple

Samsung Aims to Split Galaxy Brand, Creating a Premium Sub-Brand to Challenge Apple

Despite consistently ranking among the top two smartphone manufacturers globally, Samsung's dominance stems largely from its mid-to-low-end devices. In the premium market, Samsung lags significantly behind Apple. To elevate its brand image in the high-end segment, Samsung Electronics is planning to subdivide its Galaxy brand, positioning itself for a stronger competition with Apple.

According to media reports, Samsung has initiated internal research to explore brand segmentation as a strategy to enhance its competitiveness in the premium smartphone market. Lee Young-hee, Global Marketing Chief at Samsung Electronics, has indicated that an overly extensive product line could dilute brand value, and consumers are anticipating innovation and new names.

Samsung plans to conduct a thorough analysis of its product lines under the Galaxy brand to identify the most effective way to segment and position them. Consideration is being given to introducing new brand names for premium devices like the S and Z series, emphasizing their high-end positioning. Meanwhile, the mid-to-low-end A, F, and M series will retain the Galaxy brand.

This brand segmentation initiative reflects Samsung's strong emphasis on the premium market. Currently, Samsung faces significant pressure from Apple in this segment. Apple, with its powerful brand influence, innovation capabilities, and loyal user base, firmly holds the leading position in the premium market. Samsung hopes to create a dedicated premium brand, enhancing its competitiveness in this space and engaging in more heated competition with Apple.

Brand segmentation can enable Samsung to better position its products, attracting diverse consumer groups. By introducing new brand names, Samsung can establish a more distinct brand image for its high-end offerings, differentiating them from mid-to-low-end products and catering better to the demands of premium consumers.

Furthermore, brand segmentation can contribute to brand value enhancement. Upon encountering a new brand name, consumers associate it with higher quality, more advanced technology, and a corresponding higher price point. This helps Samsung elevate its brand image and attract a greater number of premium consumers.

Naturally, brand segmentation also carries inherent risks. If Samsung fails to effectively position the new brand name or fails to deliver premium products that align with consumer expectations, brand segmentation could backfire, leading to brand image erosion.

However, Samsung boasts extensive experience and strong research and development capabilities in the smartphone market. Through effective brand segmentation strategies, Samsung is confident in its ability to successfully establish a premium sub-brand, achieving greater success in the high-end market.