Can Samsung Be Trusted to Product Test Properly After the Exploding Galaxy Note 7 Crisis?

In 2016, Samsung was blowing up—quite literally. The phone maker was battling its biggest ever brand crisis after defective Galaxy Note 7 smartphones began exploding around the world. A battery malfunction was threatening to permanently damage both its business and its reputation: its mobile sales were down 15% by October 2016. But a year later, the South Korean company seems to be on a path to a full recovery. Just last week, it went up from the seventh to the sixth position in the marketing consulting group Interbrand's 2017 Best Global Brands list and saw a 9% increase in brand valuation despite the crisis. Samsung's profits are up in 2017, and its new Galaxy 8 has been selling well, according to Marketwatch.

Embracing Accountability

When disaster struck, Samsung knew that it had to be proactive and take responsibility. According to Schunker, the company promptly held a press conference in which it took full responsibility for the crisis. It was also forthcoming in its admission that while it didn't know what was causing the battery malfunction, it would not rest until the actual cause was discovered.

The company then moved into decisive and meaningful action, getting 700 researchers and engineers, 200,000 phones, and over 30,000 batteries tested under every extreme condition possible. In a company first, Samsung also opened up to third-party auditors. When Samsung eventually figured out what exactly had gone wrong, it communicated that out to the public. In January 2017, it announced a quality assurance program and other safety features, including an 8-point battery safety check, rolling them out the very next day.

Building Brand Love

Once the issue at hand was addressed, Samsung turned its attention towards recovering people's love and trust. It focused on finding a bigger purpose that both its employees and consumers could rally around, made its brand more inclusive globally, and tried to create an internal culture of change. The brand sought to break away from its 'same old' image and instead embrace a new vision that resonated with its global audience.

Another significant aspect of Samsung's recovery was its ability to unite all its regions and markets under a common vision. This unified approach not only bolstered the brand but also propelled it even further ahead. By doing so, Samsung managed to rebuild trust and regain the loyalty of its customers, which is crucial in the highly competitive smartphone industry.

Relying on Partners

Social media war rooms—where brand and agency teams coalesced to take on tentpole events on social media in real time—may be a thing of the past. However, during Samsung's phone scandal, desperate times called for desperate measures. According to Schunker, Samsung and its agencies set up a war room in the immediate aftermath of the crisis, monitoring media reports and consumer sentiment online day in and day out to ensure everyone was on the same page and up to speed on the latest.

Conclusion

How did Samsung manage to pull its comeback? By embracing accountability, building brand love, and relying on partners, the company demonstrated a comprehensive strategy that includes taking responsibility for its actions, addressing the root cause of the crisis, and rebuilding trust through communication and transparency. This case study can serve as a valuable lesson for businesses facing similar challenges in terms of brand recovery and reputation management.