Business

Samsung rethinks 2020 Tokyo Olympics marketing strategy amid trade dispute

Samsung Electronics has decided to rework its marketing strategy for the 2020 Tokyo Olympics, whereby the company’s name will be removed from advertisements in favor of the Galaxy brand name.

The decision was made amid ongoing trade disputes between Japan and South Korea. Samsung has been an Olympics sponsor for a couple of decades but the 2020 Tokyo Olympics have created some discomfort for the company, especially since it’s the only Korean firm in the group of 13 Olympic Partners.

A calculated decision

According to a recent report from The Korea Bizwire, Samsung has employed the services of a global marketing firm to determine how big of a negative impact the Tokyo Olympic Games sponsorship will have on its brand image in Japan, especially since Samsung continues aiming to achieve a two-digit market share in the country. The company concluded that it would be more profitable in the long run if the Olympics marketing campaign would omit the Samsung name entirely and focus solely on the Galaxy brand instead.

Samsung admitted a month ago that it is “somewhat uncomfortable” with the idea of supporting the 2020 Tokyo Olympics amid the trade disputes between the two countries. However, the contract with the International Olympic Committee was signed back in 2014, years before the ongoing trade dispute was even a thing, and there’s no way around these obligations.

Although Samsung will continue to sponsor the event, the company will attempt to mitigate the damage that could be done to its brand image by disassociating itself from the Tokyo Olympics as much as possible. Samsung is an iconic Korean tech giant and the name carries much more weight and history than the Galaxy brand.

All in all, don’t be surprised if the Samsung brand will be missing from the 2020 Tokyo Olympic adverts and billboards. The company is still a worldwide Olympic Games sponsor and will continue to be for at least until 2028.

1 Comment

Sign in »

1
Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ogishi
Ogishi

I think fostering its own KOLs is a much better approach. Any sports event other than the FIFA World Cup is second to social media or Youtube channels influentially nowadays – and the budget on KOLs will be much lower.