Painful Lessons to Be Learned Through The Samsung Note 7 Experience

Background

Too often the history of our collective corporate experience has repeatedly chronicled  the failings of companies that have brought products to the market without having performed the required amount of due diligence and as such have let down, financially disadvantaged and in extreme cases even harmed their customers.

Multiple Examples

In recent memory for example examples have been highlighted from various markets including Toyota from the motor vehicle market with their tragically under tested brakes that caused the deaths of unsuspecting drivers, pharmaceutical products such as some statins and T Channel blockers that were directly connected to patient deaths and now we find The Samsung Note 7 which potentially, whilst charging may in some cases catch on fire.

Implications

 For Samsung the implications are indeed dire. Approximately 2.5 million phones have been recalled globally and incredibly the replacement phones were also prone to the same fault. Initial financial data released to the market suggested that this mistake will cost the company around five billion dollars and more importantly will force them to shut down what was one of the biggest and most prestigious brands in telecommunications, namely The Samsung Note.

No doubt the product designers and technical staff are already at work trying to redesign a new flagship that long with some inspiring marketing may yet re-position it as a winning brand for the future.  Of course this will all take time and as the clock continues to click other android makers such as Google with its Pixel phone and Apple with its i Phones are naturally the big winners as the users are forced to switch across to other phones.

The Way Forward

For Samsung and all of us watching some serious lessons need to be learned. 
1. When you make a mistake, you need to own it.  Samsung knew about the problem and initially were very slow to respond.
2. When you do respond, be measured and put the customer's needs first. Samsung rushed  replacement units out again without and proper due diligence which again put their customers lives at risk.
3. Apologise.  If Toyota from the example above deserve credit for one thing it is that they did admit fault, and went on the proverbial front foot early to make positive changes. This approach I suspect bought them good will amoungst the PR disaster that they were involved with.

So moving forward let us wait and see what Samsung do next and how they learn from some terrible mistakes that have hurt their brand so profoundly this year

So until next time, good luck and good marketing.
Regards,
Daniele.