Lg Case Study Notes

Immediate Issue: I, Alex Carson, a fourth year business student am to create a marketing plan for LG’s new product, the Watch Phone.

Basic Issue:

* Distribution Options

* Not yet chosen carrier (exclusive or various)

* Purchased outright with contract or pay as you go basis

* Pricing Decision

* Pricing, skimming pricing strategy or penetration pricing strategy

* $1,290.00 initial in Europe, could be more flexible with pricing

* What is the value of the phone

* No internet, no stable browser with OS, limited quantities

* Demands of most NA consumers, push for computer handheld capabilities

* Promotion Plan

* Product differentiation

* Promotion to raise awareness, define target market (demographic)

* Promotional medium based on demographic

* Promotional strategy, ‘pull’ with carrier in joint promotion, or standard

* 4 p’s

* Marketing mix absent, no research available for product, does not exist (not functional for existing features in phone or watch)

* No information of primary or secondary data

* Technological factors not feasible for this product, too limited for consumer needs

* Sociocultural Factors unavailable for needs, most consumers in Canada use smartphones

* Competitive factors, untouched market

* Needs demographic segmentation, young teenagers, tweens, still unpopular – most text and tweet

* Behavioral segmentation, needs elite feeling to it, not a necessity, a luxury

* Price leadership, as this is an untapped market

* Bundling with carrier for contract, or outright sale

* Initiate limited exclusivity for immediate sale, no pay as you go

* Keep pricing high, demographic available as luxury only

* Skimming price strategy – high for optimal profit with little competition

* Penetration price strategy – low to attract more customers and discourage competitors

* Exclusive...