Lg Watch Phone

LG Electronics Canada Inc.

Brief Summary

LG Electronics Canada Inc. is preparing to introduce the Watch Phone to Canada after a successful launch of the Watch phone in Europe. And Alex Carson, a fourth-year business student, was trying to get the assistant marketing manager position in LG Electronics Canada Inc. by developing a marketing plan for LG Watch phone.

Industry Background

In 2008, Sales in Consumer Electronics Industry totaled 2.7 billion units representing US$739 billion. Specifically, 515 million units ($140.41 billion) were sold in North America, which contributed 19% of the industry. And Mobile Phones represented 18.5% of all North American consumer electronics, which is $25.97 billion. For future numbers, the industry was growing at 11.3% rate. Therefore, the North American consumer electronics sales would be $28.9 with that growth rate.

Besides the optimistic numbers above, first mover would usually take a lot of advantage in Consumer Electronics Industry. In 2008, 46.8% of consumer electronics expenditures were allocated to the portable sector. Furthermore, consumers in this industry are always looking for the newest, most innovative products.

SWOT analysis

Beginning with weakness in SWOT analysis, LG has never sold a watch. Therefore, it's a question that whether they are familiar with the industry style and demands. Even LG would make stylish watches, consumers in watch market do not like wearing the same kind of watch. Besides, the price of the Watch phone is high, $1290 with a 1 or 2 years contract. Comparing to the iPhone price, which is $199 with contract, the LG Watch Phone is very expensive. Therefore, the customers might have numerous functionality concerns, whether the Watch Phone worth that much. Another concern about the price is that new customers have to be enticed away from their existing cell phone contract. It will increase the cost of getting the Watch Phone.

There are threats that LG Electronics Canada Inc. faces. LG...