Lg Electronics Canada Inc. the Watch Phone

2297 Words Mar 31st, 2013 10 Pages
EXECUTIVE SUMMARY

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
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The LG Watch Phone’s high design quality will also make the product attractive to the watch aficionados who purchase fashionable Omega and trendy Prada time pieces. The target markets desire quality, reliability and simplicity of operation.

• Determine if product adjustments are necessary. The LG Watch Phone is available in four different designs. A factor in the successful launch of the Apple iPhone, was the use of one colour in each launch location. A product partnership with Omega or Prada is also a consideration.

• Establish the product’s price. The Watch Phone was launched in Europe for US$1,290.00 with a mandatory signing of a 12- to 24-month carrier contract. LG successfully re-branded its position as a higher-end manufacturer for home electronics. This would permit the product to be priced as high as or higher than the Apple iPhone’s introduction in to Canada. The cost to purchase the BlackBerry Tour is CAD$700 and Verizon’s 2-year contract reduces this to CAD$200. The Apple iPhone launched with a price of CAD$223.00 based on a mandatory 3 year contract with Rogers/Fido, and no outright purchase option. The LG Watch Phone will be launched with a skimming strategy enhancing it as a quality item, garnering exclusivity and prestige.

• Determine the most suitable mobile carrier for the LG Watch Phone. Rogers is the market leader and The LG Watch Phone will be the first watch phone the new LTE technology. It is the best possible carrier for