Lg Case Study

Assignment #2 LG Case Study

A. Defining the issue

The immediate issue is to develop a marketing plan for the LG Watch Phone.

B. Analyzing the Case Data

• Consumer electronics represent 3 sectors of products: in-home consumer electronics, in-car consumer electronics and portable consumer electronics

• Majority of the growth in the industry was attributed to the portable sector with 46.8% of total sales volume and with popularity of miniaturization creating a high demand open market

• The portable market characterized by technological convergence

• LG identified as a top global brand leader with 5% of the total market share

• Dependent not only on LG’s capability to deliver innovation but relies heavily telecommunication infrastructure

• Since 2003, 2.7 billion in sales with 11.3% growth indicating a healthy growing market

• Long standing company at the forefront of innovation in consumer electronics

• LG has a strong global presence and developed a global brand strategy in 2008 and subsequently focused on building brand identity along with slogan “Life’s Good”

• In 2009 introduced watch phone at CES with much media attention followed by launch in Europe

• In Canada decisions yet to be made included:

o Exclusive to one carrier or across all available carriers

o Contract vs. pay as you go, European launch included contract with one carrier

o Price point, since already gained ground in global market, pricing could be flexible

o Skimming price strategy or penetration price strategy

• High level of promotion to raise awareness would be required in the promotion plan with a well defined target market

• Identify message to be conveyed either stressing functionality or catchy slogan

• Promotional medium yet to be determined but financial resources were available

• Promotional efforts could be shared with carriers or try something different

C. Generating Alternatives

1) Share the venture with one carrier – Skimming Price Strategy

Pros:...