I’m often asked for examples of brands that put innovation at the heart of their growth strategy. Samsung is definitely a brand that comes to mind as best-in-class in this regard.
Kantar BrandZ data tells us that Samsung’s strong brand profiles have all the hallmarks of an innovative brand, scoring well on such attributes as ‘leading the way’ and ‘having a good range’. But what does that mean for Samsung as a business? Today, Samsung has strong penetration in the market and also enjoys elevated Future Power, meaning there’s a high probability that it will grow value share in the next 12 months based purely on the strength of current brand associations.
But Samsung is an innovative brand precisely because it is unlikely to rely solely on the strength of its current offers and associations. Innovative brands know that to remain Meaningful and Different, they must seek alternative sources of growth from rich new spaces.
Samsung has done this well, offering a wide array of electronics beyond smartphones, but even within that domain, its range of handsets is far more extensive than that of Apple, in line with its guiding principle of ‘Innovation for all’. Today, Samsung’s smartphone offer encompasses everything from its more affordable Galaxy A series (meant to attract less affluent consumers) to its cutting-edge Galaxy S24 phone (targeted towards ‘tech enthusiasts’ who want better cameras and productivity).
Samsung has also innovated into the foldable phones space, with its clam-like Galaxy Z flip-phone aimed at Gen Z women who want a more unobtrusive phone to put in their back pocket. Today, Samsung dominates the foldable phones market – eight out of every 10 foldable phones owned by consumers are from Samsung according to Kantar Worldpanel ComTech data.
Samsung also has a wider vision around ‘connectivity in the home’. Compared to other electronics and tech manufacturers, this gives it such a strong opportunity to create a competitive space in which to grow, especially through innovations like its SmartThings home hub app and its Family Hub refrigeration line. Samsung has realized the need for technology to be less intrusive within people’s lives and homes and, to that end, has driven low-profile aesthetic innovations though its Frame TV range (which recently expanded further with the introduction of the Music Frame).
Where Samsung’s bravery really shows is in its willingness to experiment into new spaces, such as extra mile convenience stores featuring dynamic merchandising and digital humans. Samsung’s extensive stretch into new spaces not only affords it richer penetration opportunities, but it is also the reason for its strong Kantar BrandZ scores on ‘leading the way’ and ‘having a good range’. These are fundamental building blocks to long-term brand equity growth through innovation.
Innovation is part of Samsung’s DNA. But other companies may struggle to appreciate the important role innovation plays in helping brands to remain Meaningful, Different and competitive in the market.
Kantar BrandZ tells us that brands that are Meaningful, Different and demonstrate innovative behaviors, double their chances of growth – so the time to evolve is now.
The struggle often, however, isn’t to appreciate the need to innovate, but to have the bravery to innovate into ‘stretchier’ new spaces. At Kantar, we understand how to innovate successfully. Let’s consider now some of our biggest innovation learnings on how to put this courage into practice, with Samsung again called on as needed as our illustrative example:
1. Innovate to remain Meaningful and Different
Brands need to build from strong brand and consumer insight foundations. From there, they must use Meaningful Difference as their ‘North star’, guiding them to meet needs and exceed the competition as they develop innovations into new spaces.
2. Fuel your imagination
To get to richer opportunity spaces, brands must fuel their imaginations. That means taking both an ‘inside out’ approach to identifying opportunities (for example, from market understanding), as well as an ‘outside in’ approach that incorporates macro-forces, trends, consumer disruptive behaviors and learnings from adjacent industries.
3. Learn, test, and learn
Samsung, like all innovative brands, excels at experimenting and learning. After some challenges with its early foldable phones in 2019, it went on to dominate this space with a series of increasingly superior phone offerings for the more tech savvy consumer.
4. Be brave with data
Innovative brands use data to build confidence within their business, to continue making innovative bets. It’s about staying with the uncomfortable as a brand continues to open up to much ‘stretchier’ spaces.
5. Execute effectively
Brands should always look to expand into new spaces, but those spaces themselves should be carefully defined. Spaces that are too widely defined run the risk of a brand not being able to execute effectively across all areas, thus diluting its core brand message. In a similar way, messaging should reflect the range of audience segments and scenarios the brand plays in – but the emotive territory should remain somewhat cohesive.
The challenge in implementing this advice is that, often, electronics and technology manufacturers do not take the time to test and learn and seek consumer feedback. That could change as AI technology makes it easier and faster to incorporate consumer feedback in a way that doesn’t risk slowing down the tech world’s ‘move fast’ ethos.
From there, brands should remember that innovation is not an island. We know from Kantar BrandZ data that 70% of brands’ equity comes from delivering a strong experience, being innovative and being creative. To deliver this, brands must build great product experiences and communications in a connected way. That means coming together early across functions and aligning from strong brand and insight foundations.
Don’t leave your growth to chance. Use this advice to expand into rich new opportunity spaces. If you don’t, others will be keen to disrupt you.
