Why Did Samsung’s Chairman Burn 150K Phones?

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July 31 (Bloomberg) -- On today’s “BWest Byte,” Bloomberg Businessweek’s Sam Grobart reports on the 150,000 Samsung phones set on fire and buried by Chairman Lee Kun Hee. Grobart speaks on “Bloomberg West.” (Source: Bloomberg)

Anything to chance.

They have pulled out all of the stops getting the biggest stars in hollywood to promote them.

It is very true.

It is a strategy that involves spending a lot of money, but it goes beyond that.

Spending money does not always get what you want.

They made a choice a few years ago to say, how are we going to change the view of our company?

They went after a difficult category, the category of cool.

They enlisted a well-known ad firm here in l.a. think back to the next big thing campaign, started to poke fun at apple, and you are right.

They have enlisted a lot of a-list talent.

People are always skeptical when they see celebrities endorsing products, but maybe less so with samsung than alicia keys pushing for blackberry.

The other thing they have done is after they started to get more consumers adopting their products in the u.s., and they spent more than $440 million on the alex he marketing efforts -- on the galaxy marketing efforts, they took a different approach.

You've got the selfie ellen degeneres took at the oscars, where brad pitt and angelina jolie and julia roberts were also in the photo, the selfie david ortiz and the boston red sox took with president obama.

Apparently, that was planned.

Sam, what do you make of these guerrilla marketing tactics?

Samsung is taking that approach and marrying it to just a ton of money.

In 2013, the company spent more than $14 billion globally on its advertising and marketing efforts including $4 billion in advertising alone, which is quadruple what apple spent in the same year.

Of course apple is a much better known brand and a stronger brand than samsung, so they need to spend that money.

If they can couple that with appearances with celebrities and so forth, in fact, their campaign taking on apple was a big success and really did rattle apple as far as the advertising and marketing strategies were concerned.

On some level, this is working.

This is happening, but it is backed by an extraordinary amount of cash.

And then there is jay-z, who partnered with samsung on a now been released.

Jon, what kind of van packed -- on an album release.

Jon, what kind of impact that have?

A lot of people target jay-z. was it successful or not?

He took some heat for that.

I don't think they are going to back away from what they have been doing.

If you spend a lot of money and you try something that is seen as creative and it is working for the most part, do you move away from it?

And the fact apple seems to be awakened by this and is spending more money on marketing itself.

All right, i do want to get to the bwest byte before we go.

One number that tells a lot.

This text has been automatically generated. It may not be 100% accurate.


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