Smartphone

market studies in

Thailand A brand comparison study of iPhone VS Samsung 2015

Date: 19th June, 2015

A. Research background

iPhone and Samsung has been the long leader in smartphone market in Thailand. Samsung is claimed to

have higher market share; yet iPhone claimed to have strongest brand loyalty

While iPhone is the leading in new product development and innovation by launching the last version of

iPhone ahead of Sumsung- launched iPhone 6 in October 31th, 2014

Samsung S6 is just launched in April 20th, 2015, yet received the positive feedback on its design

This study is aim to study brand comparison of Samsung & iPhone on brand preference; brand loyalty and

brand switching rate

Samsung S6 iPhone 6

B. Research design

3

Research Method Online research

Fieldwork Period 8th – 16th June 2015

Research Area Nationwide (Thailand)

Respondent Criteria Iphone & Samsung Users (50%:50%) , Aged（above 16 years old）

Sample Size Iphone User : samplesSamsung User : samples

Number of Questions Demographic & Screening : 4 QuestionsBrand Preference : 10 QuestionsBrand Switching : 3 Questions

Criteria Purchased Iphone & Samsung brand for the period of 1-3 years

Research Objectives To understand about Thai consumers preference toward Iphone & Samsung brandTo evaluate brand switching key factors

C. Respondent profile

4

■Gender

■Smartphone user

■Age

■Monthly household income

47.3

62.7

Male

Female

Unit : %

10.0

24.3

27.0

38.716 - 20 yrs

21 - 25 yrs

26 - 29 yrs

> 30 yrs

50.050.0Samsung

Iphone

19.3

31.8

48.9

A Class B Class C Class

Class Income (THB)

A > 50,000

B 24,001 – 50,000

C < 24,000

D. Key findings : Brand Comparison Analysis

5

1. Most popular Smartphone BrandSamsung is the most popular brand with highest score of brand index at 41.46%Because of highest expansive score (66.57%) and ever used score (64.01%) and last purchase score (39.0%) had made Samsung the most popular one, yet iPhone shows the highest score of future intention (44.73%)

2. Iphone VS Samsung User Demographic

The graph shows that 42.7% of 30 years old and above prefer Samsung more than Iphone and equally prefer for age of 25 –29 years old (27.0%); yet younger generation (20 – 24 years old) are more iPhone user (27.7%)

The majority of class A user is iphone user (37.0%); while the majority of class C user is Samsung (39%)

3. GAP analysis of iPhone VS Samsung

High Quality of Clothes & Convenient Location are the brand image of UNIQLO, while Quality of Clothes & Friend Recommendation are the brand image of H&M. iPhone user are more satisfied with its camera function

The opportunities for improvement for Iphone and Samsung is on price; yet the dissatisfaction is higher for iPhone (-20%) while Samsung receive score of just -10%

4. iPhone VS Samsung Model User

The model of Samsung is more variety than Iphone and Galaxy Note is more popular that the rest of model Samsung except Galaxy S4 because Galaxy note function is more alike tablet function yet can make the phone call

While the majority of Samsung user is Samsung S4 user (19.0%); the majority of iPhone user is iPhone 5S (29.0%)

D. Key findings : Brand Comparison Analysis

5. Iphone VS Samsung Brand Switching Rate

The main reason why Samsung user switch to other brands because of slow processor(51.4%); software (49.7%) ; unstable (49.7%); while the switching rate main reason for old iphone user is about the screen quality (40.8%); value for money (40.8%) and because of its design (40.8%)

Samsung user has higher switching rate; 59.7% of Samsung user has switched to iPhone; while only 39.8%

has switched to be Samsung user

6. iPhone VS Samsung Brand Loyalty RateiPhone receive higher percentage for high loyalty rate (56.0%) and 70.0% of iPhone user prefer to purchase iPhone brand in the future; While only 56.2% of Samsung user prefer to purchase Samsung in the future

7. Iphone VS Samsung Brand Recommendation RateThe recommendation rate of Iphone (Mean = 8.25) user is higher than Samsung user (Mean = 7.48)The table below shows that Apple user suggestion level is in strongest level; while Samsung user level is strong but weaker thanApple user. Moreover, 9.7% of Samsung user do not wish to recommend Samsung brand, while only 3.7% of Iphone user does not prefer to suggest its brand

8. iPhone 6 VS Samsung S6 Preference RateiPhone received more loyalty score; this can be seen from the higher percentage of strong preference of iPhone user (22.5%); Despite the fact that 15.9% of iPhone user feeling that their price is quite expensive

9. Brand Image of iPhone VS SamsungThe higher score of iPhone in almost every positive brand image attribute particularly on luxurious; nobility; modern; hi-tech and leadership could explain the reason why iPhone receive higher brand preference, brand loyalty and brand recommendation

E. Detail findings

7

1. Smartphone Popular Brand Index

2. Iphone VS Samsung Brand Comparison

POPULAR BRAND INDEX (PBI)

Top of Mind

(TOM)

Expansive

Last Used

Future Intention

𝑃𝐵𝐼 = 𝑤1 ∙ 𝑇𝑂𝑀 + 𝑤2 ∙ 𝐸𝑥𝑝𝑎𝑛𝑠𝑖𝑣𝑒 + 𝑤3 ∙ 𝐿𝑎𝑠𝑡𝑈𝑠𝑒𝑑 + 𝑤4 ∙ 𝐼𝑛𝑡𝑒𝑛𝑡𝑖𝑜𝑛

Additional Information:

• Top of Mind (TOM) = The first brand in mind of the respondent.

• Expansive = Most brand found on advertising (TV, Billboard)

• Last Used = The last brand used in the determined period of time• Future Intention = Brand in mind the respondent would like to

purchase in the future

Brand is one of the important company assets and is also consideredas identity of the company. Brand or trademark is a name or symbolrepresenting a particular product or service and it gives a psychologicalmeaning or association.

Moreover, brand is also a promotion tool where this helps to reachout to popularity or people awareness that eventually influenceconsumers’ behaviour.

In order to improve organizational performance, brand developmentshould be evaluated. For this purpose, W&S Group conducted a PBI(Popular Brand Index) concept development where the measurement isanalyzed by using 4 parameters - Top of Mind, Expansive or brandexpansion, Last Used or well known as Market share and Future Intention.

Below is the calculation/formula to get the PBI score of a certainbrand.

Popular Brand Index Concept

9

1. Most popular Smartphone brand

Samsung is the most popular brand with highest score of brand index at 41.46%

Q20. Please tell us what mobile phone brand that you aware of, even you never bought it? [MA] n = 600Q21. Please tell us what mobile phone brand that you ever bought ? [MA] n = 600Q5. Please tell us what mobile phone brand that you bought most often? [SA] n = 600Q22. Please tell us which brand you prefer to buy in the future? [SA] n = 600Q23. Please tell us which brand of mobile phone that you find most often on commercial advertising (TV, Billboard & online)? [FA] n = 600

Unit : %

0

20

40

60

80top_of_mind

expansive

ever_usedpurchased

intention

Samsung Iphone/ Apple Nokia Oppo Asus

Brand Top ofmind Expansive Ever_used

Last Purchased

Future Intention

BrandIndex

Samsung 39.91 66.57 64.01 39.00 25.71 41.46

Apple 39.76 20.86 31.35 26.69 44.73 33.95

Nokia 4.42 3.85 51.96 7.18 2.38 4.49

Oppo 2.95 3.11 10.74 4.69 8.47 4.8

Asus 2.21 0.74 11.76 4.84 3.71 2.95

Because of highest expansive score (66.57%) and ever used score (64.01%) and last purchase score (39.0%) had made Samsung the most popular one, yet Iphone shows the highest score of future intention (44.73%)

E. Detail findings

10

1. Smartphone Popular Brand Index

2. Iphone VS Samsung Brand Comparison

11

2. Iphone VS Samsung User Demographic

The graph shows that 42.7% of 30 years old and above prefer Samsung more than iPhone and equally prefer for age of 25 – 29 years old (27.0%); yet younger generation (20 – 24 years old) are more iPhone user (27.7%)

The majority of class A user is iphone user (37.0%); while the majority of class C user is Samsung (39%)

9.3

21.0

27.0

42.7

10.7

27.7

27.0

34.7

16 - 20 yo

20 - 24 yo

25 - 29 yo

30 yo and above

Age

Samsung Iphone

24.0

37.0

39.0

37.0

31.3

31.7

A

B

C

Income

Samsung Iphone

Unit : % Unit : %

Q2. Please tell us your age ? [SA] Samsung n = 300 ; Iphone n = 300

Q4. Please tell us your income ? [SA] Samsung n = 300 ; Iphone n = 300

DesignScreen

Processor

Storage

Cameras

Software

Battery Life

Price

Durability

Ease of Use

WeightThe function other phone

does not have (15.00)

(10.00)

(5.00)

-

5.00

10.00

15.00

(15.00) (10.00) (5.00) - 5.00 10.00 15.00

Samsung

12

3. GAP analysis of iPhone VS Samsung

High Quality of Clothes & Convenient Location are the brand image of UNIQLO, while Quality of Clothes & Friend Recommendation are the brand image of H&M. iPhone user are more satisfied with its camera function

The opportunities for improvement for Iphone and Samsung is on price; yet the dissatisfaction is higher for iPhone (-20%) while Samsung receive score of just -10%

Q8. Please tell us how important the following aspects concerning when you bought current mobile phone ? [MSA] = 600Q9. Please tell us the satisfaction level you had on your current mobile phone ? [MSA] n = 600

High Quality

Opportunities for Improvement

DesignScreen

Processor

Storage

Cameras

Software

Battery Life

Price

Durability

Ease of UseWeight

The functions that the

other phone does not

have (25.00)

(20.00)

(15.00)

(10.00)

(5.00)

-

5.00

10.00

15.00

(10.00) (5.00) - 5.00 10.00

Iphone

Satisfaction

Important

Mean = 78.71

Mean = 83.99

Satisfaction

Important

Mean = 79.88

Mean = 84.25

13

4. iPhone VS Samsung Model User

The model of Samsung is more variety than Iphone and Galaxy Note is more popular that the rest of model Samsung except Galaxy S4 because Galaxy note function is more alike tablet function yet can make the phone call

While the majority of Samsung user is Samsung S4 user (19.0%); the majority of iPhone user is iPhone 5S (29.0%)

Q5. Samsung smartphone series most often using? [SA] n = 300Q6. Apple smartphone series most often using? [SA] n = 300

8.0

3.3

8.0

19.0

4.7

4.0

1.0

2.7

1.7

11.7

2.7

.3

9.3

1.3

10.0

11.0

Galaxy S6

Galaxy S6 edge

Galaxy S5

Galaxy S4

Galaxy A7

Galaxy A5

Galaxy A3

Galaxy E7

Galaxy E5

Galaxy S/A/E

Galaxy Note 5

Galaxy Note Edge

Galaxy Note 4

Galaxy Note 3 Neo

Galaxy Note 3

Galaxy Note

10.7

22.0

2.3

29.0

25.7

8.3

2.0

iPhone 6 Plus

iPhone 6

iPhone 5C

iPhone 5S

iPhone 5

iPhone 4S

iPhone 4

Samsung (n=300) iphone (n=300) Unit : %

49.7

38.3

51.4

49.7

38.9

30.9

36.6

37.7

31.4

27.4

22.3

27.4

3.4

37.9

40.816.5

19.4

35.940.8

30.1

21.4

30.1

32.0

40.8

28.2

4.9

Software

Design, Materials and colour

Slow Processor

Unstable

Cameras

Screen

Durability

Outdated

Storage

Battery life

Value for money

Ease of use

Others, please specify

Samsung iPhone

14

5. iPhone VS Samsung Brand Switching Rate

The main reason why Samsung user switch to other brands because of slow processor(51.4%); software (49.7%) ; unstable (49.7%); while the switching rate main reason for old iPhone user is about the screen quality (40.8%); value for money (40.8%) and because of its design (40.8%)

Samsung user has higher switching rate; 59.7% of Samsung user has switched to

iPhone; while only 39.8% has switched to be Samsung user

Q9. Please tell us if you ever change your mobile phone brand ? [MA] n = 600Q10. Please tell us on which is your previous mobile phone brand ? [MA] n = 600Q11. Please tell us the reason why you stop using your previous brand ? [MA] n = 600

Current Samsung

User (n=219)

Current iPhone User

(n=65)Previous

Samsung user 9.5 59.7

Previous

iPhone user39.8 5.8

Other brands50.7 34.5

Unit : %

15

6. iPhone VS Samsung Brand Loyalty Rate

While only 56.2% of Samsung user prefer to purchase Samsung in the future; 70.0% of iPhone user prefer to purchase iPhone brand in the future

iPhone receive higher percentage for high loyalty rate (56.0%)

Q17. Please choose the statement regarding the brand loyalty ? [SA] n = 600

Loyalty Rate Explanation Samsung User

Apple User

Highest It's the only brand I buy and I would not change to other brands even the qualification/product does not meet my expectation

30.1 32.0

High I like this brand and only would change to other brands when this brand does not has the qualification/product I look for

52.2 56.0

Average I feel neutral with the brand and would change to other brands when the other brands offer a better qualification/product

15.1 11.0

Low It's the brand I would buy when I have no choice 1.7 .3

Lowest It's the brand I would not buy anymore

1.0 .7

Samsung User Apple User

Samsung 56.2 21.2

Apple 27.1 70.0

OPPO5.8 1.0

HTC2.7 2.7

Sony 2.4 .7

Asus Zenfone2.1 2.0

Huawei 1.4 .3

LG .7 .3

Lenovo.7 0.0

Dtac phone.7 0.0

Others .3 1.6

Unit : %

16

7. iPhone VS Samsung Brand Recommendation Rate

The recommendation rate of Iphone (Mean = 8.25) user is higher than Samsung user (Mean = 7.48)The table below shows that Apple user suggestion level is in strongest level; while Samsung user level is strong but weaker than Apple user. Moreover, 9.7% of Samsung user do not wish to recommend Samsung brand, while only 3.7% of Iphone user does not prefer to suggest its brand

Q15. Please specify the suggestion level you would recommend your current brand to your friends & acquaintances ? [SA] n = 600

Suggestion levelSamsung User (%)

Apple User(%)

StrongestRecommendation

10 21.4 35.7

9 12.7 15.3

Strong Recommendation

8 31.4 23.7

7 8.7 10.0

Still Recommendation

65.0 5.0

Does not prefer to recommend

5 11.4 6.7

4 1.0 .3

3 2.7 1.0

2 2.7 1.0

1 3.0 1.3

Average 7.48 8.25

20.7 10.3

17

8. iPhone 6 VS Samsung S6 Preference rate

The graph below shows the reason why iPhone received more loyalty score; this can be seen from the higher percentage of strong preference of iPhone user (22.5%)

Despite the fact that 15.9% of iPhone user feeling that their price is quite expensive

Q12. Please comment your feeling regarding iPhone 6 ? [SA] n = 300Q13. Please comment your feeling regarding Samsung S6 ? [SA] n = 300

18.91

53.53

10.58 9.29 7.69

22.48

45.82

7.20 8.65

15.85

Like very muchLikeIndifferentDon't likeFeeling it'sexpensive

Samsung iPhone

18.9

22.5

53.5

45.8

Samsung

Iphone

High affection Affection

Unit : %

18

9. Brand Image of iPhone VS SamsungThe higher score of iPhone in almost every positive brand image attribute particularly on luxurious; nobility; modern; hi-tech and leadership could explain the reason why iPhone receive higher brand preference, brand loyalty and brand recommendation

Q14. Please tell tick on the statement relating to the following brands ? [MSA] n = 600

While Samsung receive higher score on the following attribute; Fun/Playful; Down to earth and friendly; hence it is perceived as brand image for Samsung

$Serious

$Trendy

$Individual

$Leadership

$Luxurious

$Mod…

$Simplicity

$Attractive

$Clever

$Confident

$Fast$Hi_tech

$Nobility

$Strong

$Sweet

$Unique

$Fun_Playful

$Creative$Social

$Down_to_earth

$Friendly

$Outdated$Slow

$Thrifty

(60.00)

(50.00)

(40.00)

(30.00)

(20.00)

(10.00)

-

10.00

20.00

30.00

40.00

0 5 10 15 20 25 30

Brand Image

Samsung Iphone

FOR FURTHER INQUIRIES, PLEASE CONTACT:

W&S Group

W&S HoldingsJapan – Tokyo, Osaka, Okayama

W&S Co., Ltd

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