Marketing Mix of LG and SAMSUNG Free Essays

the student’s work and are not examples of our expert essay writers’ work. READ MORE Market segmentation and marketing mix of LG and SAMSUNG This Korean company, which was founded in 1958, combined other two Korean companies named Lucky and Goldstar. Therefore, LG was defined as the two companies, but currently, it means Lifes good. We will write a custom essay sample on Marketing Mix of LG and SAMSUNG or any similar topic only for you Order Now LG Electronics is one of the leaders and innovators of technology in the world, and it focuses on consumer electronics, mobile communications and home appliances (OPPapers, 2010). SAMSUNG Founded in 1938, SAMSUNG has become one of the largest electronics companies in the world. As the most popular electronics company among consumers in the world, Samsung owns a good reputation. Moreover, Samsung occupies more than 20% of total export in South Korea (Samsungish, 2010). Currently, the innovation and high quality of Samsung’s products are recognized by the whole world (SAMSUNG, 2010a). 1. 2 Theory 1. 2. 1 Market Segmentation Market segmentation means that businesses divide their markets into a few sections with similar features, so that they can target different groups of consumers and produce merchandise or service for them. Market segmentation is classified into four methods which are geography, demography, psychology and behaviors (Hall et al, 2008). Marketing mix Marketing mix is defined as â€Å"those elements of a firm’s marketing strategy which are designed to meet the needs of its customers†. There are four factors which are called 4Ps, and they are product, price, promotion, and place (Hall et al, 2008:75). Aims The objective of this report is to analyze the differences of the market segmentation and marketing mix of LG and SAMSUNG. Findings LG LG, a well-known brand around the world, is to sell TVs to rural areas in China (Articlesbase, 2010). Home appliances such as TVs, washing machines, and refrigerators are LG electronics’ major products (LG Electronics, 2010). In addition, LG is adept in using advertisements to attract shoppers (Pakistan Gulf Economist, 2005). SAMSUNG Similarly, Samsung sells its products in the world. It not only sells to cities but also rural areas. In order to privilege consumers, Samsung holds promotional events to attract shoppers. However, Samsung has some products which LG does not produce, such as PC peripherals, print solutions, and memory cards (SAMSUNG, 2010b). Discussion Market segmentation LG An obvious way of segmenting market is geography. LG Electronics sells its merchandise spread all over the world, especially well-known countries, for example, LG digital television in China. Yucheng Zheng (2010), the CEO of LG Electronics (China) Co. , Ltd. , reported that LG launched a project to promote digital television in rural area in China. LG targets at the rural market and provides digital TVs and home applicants for rural consumers. The emphasis of rural segment is â€Å"price competitiveness†. LG is going to reduce the price of its products so that it can develop well (Articlesbase, 2010). SAMSUNG Samsung focuses on rural area as well, for example, the Samsung color TV in rural area and urban area of China. This segment involves â€Å"mass market, low- and medium-end units to rural customers or high-end products to urban customers† (EssayForStudent, n. d). To deal with an extensive product line, a mass market capacitates Samsung to satisfy consumer needs. Because Samsung enters China market late, it faces challenges to be succeeded in mass market. Furthermore, the rural market, which is approximately 80% of the whole market, is aimed by Samsung via the â€Å"low-end units†. However, because of the previous businesses of â€Å"low-cost, low-end color TVs†, Samsung had to exploit a new â€Å"high-end TVs† in urban market. With the remarkable improvement of people’s living standard, the quantity of high-end TVs in urban market in China is increasing though the segment is not big (EssayForStudent, n. d). Marketing Mix LG Product LG pays attention to upper and upper middle classes and provides products for those consumers. High quality and good service of LG products are so progressive that products are output to developed countries (Pakistan ; Gulf Economist, 2005). LG Electronics (2010) in China shows that the products include TV audio video, mobile phones, home appliances, IT products, and air conditioning (LG Electronics, 2010). Price The pricing strategy of LG is â€Å"cost plus fixed mark up†. Following the pricing policy, LG’s formula is â€Å"import cost + reasonable gross profit†. The formula is used to cover the market cost and make profits in any market including China (Pakistan ; Gulf Economist, 2005). An LG’s cell phone called Lollipop cost RMB 2,000 in 2009, when it first appeared in China. Promotion One effective way of promotion is advertisement. As a famous brand, LG advertises its products to get promoted (Pakistan ; Gulf Economist, 2005). LG is accustomed to inviting famous stars to advertise its merchandise. For instance, Kim Tae-Hee, a famous actress, advertised for LG mobile phone and camera. Her advertisements attract young shoppers in China to buy relative merchandise. Place LG’s merchandise is sold throughout the world, especially developed regions. There are numbers of LG retailers in big cities including Guangzhou, Shanghai and Beijing. In addition, LG sells its products in home appliance interlink retail enterprises such as Suning and Gome in China. SAMSUNG Product As same as LG, Samsung also provides mobile devices, TV audio video and home appliances for Chinese shoppers. However, there are some products that LG lacks, such as camera camcorder, PC peripherals, print solutions, and memory cards (SAMSUNG, 2010b). Moreover, â€Å"focusing on the future of wireless communications, Samsung launched futuristic products such as the mobile hone watch, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and its latest model of 3G mobile phone† (123HelpMe, 2010). Price The price of Samsung products is similar with LG. For example, Samsung F480 Mobile Phone, which has â€Å"223 MB Memory, 5 Mega-Pixel Camera with 4 X Digital Zoom†, cost RMB 993-RMB 2,325. Another example, â€Å"Samsung UA40C7000 40â € ³ 3D LED TV, which is 40†³ Screen, Full HD, High Definition, Widescreen, HDMI, Internet, and 1920 x 1080 pixels†, cost RMB 9,320- RMB 15,656 (MyShopping, n. d. ). Promotion Samsung constantly holds sales promotional events. For example, recently, there is an event called â€Å"Samsung Smart TV Promotion† in HongKong. Customers can get a â€Å"FREE Samsung 1TB external Hard Drive and 3D Starter Gift Pack upon purchasing eligible model of 3D LEDTV and 3D LCD TV† from 16th October to 30th November (SAMSUNG, 2010c). The promotion is able to help Samsung expand its sales. Place Samsung sells its products by retailers and home appliance interlinks retail enterprises Suning and Gome as well as LG. Nevertheless, Samsung not only sells products in cities, but also in countryside. Samsung in China took part in a policy named â€Å"home appliances to rural areas† in 2009. This policy was to add profits to the masses that lived in rural areas. Samsung was one of the companies that help rural people improve their living standard. Conclusion In short, the report involves the background of the two competitive companies, theory of market segmentation and marketing mix and comparison between the two companies. Via discussing market segmentation and marketing mix of LG and Samsung, the superiorities of the two companies are obvious to be found. The general strength of Samsung is better than LG, so LG has to be enhanced. Recommendation According to the analyses above, LG is recommended to improve its promotional events so that there will be more consumers to purchase its merchandise. Furthermore, LG is supposed to expand the range of its products to different fields. However, Samsung should classify its segmentation more clearly. As a result, if the two companies reduce the price, the demand of their electronic products will increase. Read more: http://www. ukessays. com/essays/marketing/marketing-mix-of-lg-and-samsung-marketing-essay. php#ixzz2OTcQ9YYp How to cite Marketing Mix of LG and SAMSUNG, Essay examples