Submitted by: Submitted by jsarginson
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Category: Business and Industry
Date Submitted: 04/07/2013 11:01 AM
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:...