The most promising action plan for the launch of the new watch phone in Canada is alternative 1 in the section below. The plan is to use penetration pricing with the two major telecommunications carriers in Canada; Rogers and Bell. The price point can be adjusted with a 12-24 month contract similar to the European launch and include bundles with our HDTVs. Wal-Mart and BestBuy in addition to Rogers and Bell can bundle the watch phone as a great incentive for the Canadian consumers. We will communicate with marketing mediums such as television, radio, webpages, newspapers, and magazines to help attract all consumers within Canada. We are looking to launch as soon as possible several months before Christmas time as it is the most ideal time. This action plan is surely to generate revenue and place the watch phone as a new competitor to the smart phone market in Canada. A: Defining the Issue (s):
Construct and execute a marketing strategy for LG Electronics to launch and promote their new watch phone into the Canadian market. B: Analyzing Case Data:
* Majority of the growth in the consumer electronics industry was attributed to the portable sector of the market and to the increasing popularity of product miniaturization * Products have been driven by consumers demands to listen to music, watch video, play games, and communicate anywhere and anytime * Top brand manufacturers are Nokia, Motorola, Samsung, Sony, LG, and Apple * In north America, high definition televisions (HDTV), mobile phones and laptop computers were in greatest demand * Wal-Mart and Best Buy were he largest North American sellers of consumer electronics * The watch phone is a wearable phone loaded with all the latest features including, 3G capabilities, a touch screen interface, an MP3 player and video calling. * Was first launched in Europe in August 2009 and then proceeded to investigate ways to expand into the North American market * The watch phone is the first wearable handset available to consumers * Touch screen face of the watch measured at 3.63 centimeters long * Canadian carriers or carrier for the watch phone needed to be determined, specifically between Rogers, Bell, Telus, Koodoo and Virgin Mobile * Needed to determine whether it would be purchased on a contract or pay-as-you-go * Canadian price was not yet established however, in Europe it was priced at approximately $1,290 when a 12 or 24 month contract was signed ( $107.5/m and $53.75m) * LG would have to choose between a skimming pricing strategy and a penetrating pricing strategy * Competition would influence the pricing decision
* Need to determine how to entice customers to switch from their current handsets to the Watch Phone * Needed a significant amount of promotion to raise awareness in addition to determine the target market based on gender, age, location, income, education level, and/or occupation * Should it stress on the functionality or develop a catchy slogan? * Needed to determine the promotional medium whether it be television, radio, newspaper, billboards, or internet * Joint marketing with carrier or promotion available through carriers? C: Generation Alternatives
1. Execute a penetration pricing strategy with carriers Rogers and Bell by pricing the watch phone on either a 12 or 24 month contract and promoting bundle packages with HDTVs and cable services through television, radio, internet, newspapers, and magazines targeting both men and women of all ages and incomes levels.
* A penetration strategy allows LG to cut into sales of competitors * A contract will lower the price point of the watch phone relative to a pay-as-you-go basis * LG can take advantage of its successful HDTV market by bundling it with the watch phone to make it more appealing * Both Rogers and Bell are the only carriers that provide services for cable, internet, and mobile phones * By only...
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