Tuesday, 4 October 2016
Despite Note 7 Battery Fiasco, Samsung Retains Most Valued Brand Status
When the whole exploding batteries problem started, financial experts and economists predicted that Samsung would lose billions.
They also predicted that Samsung’s brand value would suffer because of the battery problem. If what they predicted actually came true, Samsung would have lost the its hard earned gains and plunge back into losses.
Notice the “if” in the previous sentence. Because as it turns out, Samsung is still the top brand in South Korea.
Top Brand in South Korea
Samsung did not lose any brand value at all in its home market of South Korea. After the massive global recall of the Note 7 phones and the replacement drive, the company is now finally back to resuming sales of the Galaxy Note 7.
A local brand research company in South Korea has discovered that Samsung Galaxy brand name retains the highest position in the list of top 100 Korean brands.
Brand Stock, the research firm, found that Samsung Galaxy scored 912.2 points on its Top 100 Index. Samsung Galaxy is followed by E-Mart, a local supermarket chain with 908.5 points. Following the first two is the popular mobile messaging service in Korea, KakaoTalk, with 903.4 points.
Brand Stock says that Samsung’s quick and large scale response was positively received in the local market. This would explain why Samsung still retains its brand value, at least in South Korea.
Possible Reasons for Brand Value Retention
They have taken steps to make sure that every singe faulty Note 7 phone is replaced on a worldwide scale. One thing worth noting is that most of the customers who bought a Note 7 are sticking with their phones despite the battery fiasco.
According to Samsung Newsroom, 90% of the existing Note 7 customers are choosing to stick with their current phones instead of going towards greener pastures.Brand loyalty therefore, may have caused Samsung to control their losses because of the battery problem and to retain their brand value.
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