After a successful launch of the LG Watch Phone in Europe, LG Electronics Canada, Inc. is preparing to introduce The Watch Phone to Canada. As an assistant marketing manager I will aid in the development and execution of a niche marketing plan that blends with LG’s 51 years of brand equity while increasing market share in consumer electronics. No other watch phone currently exists in the Canadian market. The market is saturated with mobile phones and portable electronic devices that have 3G capability, a touch screen interface, MP3 player and video calling. LG must entice consumers to switch from their handsets to the LG Watch Phone and generate sales from new markets. Potential customers for this product will be educated, youthful and upwardly mobile: young Baby Boomers (aged 45-49), Gen Xers (aged 30-44), and older Gen Yers (specifically, the ages of 25-29). These consumers will make product, price and carrier plan comparisons between the higher-end handsets: Samsung Omnia; BlackBerry Tour; and Apple iPhone. My comprehensive marketing plan, with a scheduled launch during Q4 2010, outlines the following: Optimal target markets;
Skimming Price strategy;
Efficient distribution channel supporting LG’s new LTE technology A persuasive promotional campaign. It is anticipated that the LG Watch Phone will be launched in Canada in on November 25, 2010. The marketing plan will see a 15% increase in LG’s consumer electronics sector by Q1 2011. KEY ASSUMPTIONS
• The 2008 global financial recession did not severely affect overall performance of the consumer electronics industry. We are now at the end of Q3 2009. Economic recovery is slow with downward pressure on prices as consumers seek out better value for their money.
• The majority of growth in the consumer electronics industry was attributed to the portable sector of the market characterized by product miniaturization and technological convergence.
• The new brand identity associated with LG is “Stylish design and smart technology in products that fit our consumer’s lives”, as well as the company slogan.”Life is good”.These marketing messages had been very successful in helping Korean company expand through North America.
• The Watch Phone was a wearable phone loaded with all the features, including G capabilities, a touch screen interface, an MP3 player and video calling. LG launched The Watch Phone in Europe in August 2009 and then proceed to find ways to to expand the device's market to Canadian market.
• LG’s head office is located in Seoul, South Korea. North & South Korea share a border and North Korea is a dictatorship, that tends to act in an unpredictable way, which can create international tension and economic disruption at any time.
STATEMENT OF ISSUES
Analyze the product’s competition. No other watch phones currently exist on the market. LG needs to entice consumers to switch from their handsets to the LG Watch Phone as well as to attract new markets. Leading handsets that compare with LG are Samsung Omnia, BlackBerry Tour and Apple iPhone. Nokia and Motorola customers are not in the same target market as the LG Watch Phone. These phones are inexpensive and more of a commodity item. The Samsung Omnia, BlackBerry Tour and Apple iPhone are the closest competitors to the LG Watch Phone, however, only the BlackBerry Tour and Apple iPhone offer the new GSM technology with strong brand equity. Another consideration is the inevitable competition from China. China can produce knock-off products quickly and in great quantities at reduced prices. It is projected that the LG Watch Phone will have exclusivity in the market place for a maximum of six months.
• Establish the product’s consumers. Potential customers will be: between the ages of 25 and 49; possess middle to high incomes; be well educated professionals and stay-at-home parents; tech...
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