The two companies that will be discussed in this assignment will be LG Electronics and Samsung. LG Electronics was established in 1958 and has led the way into the advanced digital era thanks to the technological expertise acquired manufacturing many home appliances such as radios and televisions. LG Electronics has unveiled many new products such as technologies in the form of mobile devices and digital televisions in the 21st century and continues to reinforce its status as a global company. LG Electronics innovation is inspired by their customer’s needs. LG Electronics hope to empower their customers in return. LG are driven to create products that make people smile and to build brilliant solutions that make life more creative for all of their customers.
Samsung is a South Korean multinational electronics company established in 1969 and headquartered in Suwon, Korean. Samsung electronics has assembly plants and sales network in 80 countries and employs around 370,000 people. Samsung has long been a major manufacturer of electronic components such as lithium ion batteries, semi conductors, chips, flash memory and hard drive devices. Samsung creates these products for clients such as Apple, Sony, HTC, and Nokia. Their recent major popularity from Samsung Galaxy lines of devices. Samsung has been the world’s largest manufacturer of LCD panels since 2002 and also the world’s largest television manufacturer since 2006 and largest manufacturer for mobile phones since 2011
Samsung Electronics displaced Apple Inc. as the world’s largest technology company in 2011 and now is still remained the world’s largest manufacturer from South Korean economy. Samsung is leading company manufacturing the mobile devices as Android phones right now.
LG Promotional Strategies
LG sets the trend for companies by being competitive and maintaining a good position in the market. LG makes household goods for the consumers like washing machines, refrigerators, TV’s and mobile communications. LG knows there are many companies out there doing the same but they focus on the latest innovations for their consumers to suit their everyday essential needs. LG also focus on creating a great brand image. LG established themselves in developing countries while making all of their products easy to use and made with modern designs. LG made a wide range of products to serve all categories. LG did a lot of research and development to create the right products for the consumers to satisfy their needs.
Their market mix is product and price. LG made their products available in large retail showrooms, malls, private retail shops. Their services are available in more than 110 countries around the world and controls 114 local subsidiaries in India. LG promotes its products through Newspaper, T. V., Radio, hording and taking part in events. LG made a Regional Channel Strategy and Wide Distribution Network. LG also used a key strategy called Product localisation. LG also relies on the loyalty and trust of its customers and the trough efficient communication tools with the cooperation of many famous companies worldwide like Best Buy! Samsung Promotional Strategies
Samsung marketing strategy is very different from LG. Samsung’s majority of their budget is received from their financial budget. For example, their launch for Samsung Galaxy S4 cost five times more than their other marketing efforts and has the biggest budget than that of Apple’s. It is apparent the South Korean smart phone company is still taking a lot of effort in improving their promotional campaigns. Samsung has had their focus on their marketing strategies instead of innovating their product as LG has. Their expensive smart phones are still manufactured in plastics while their competitors have already explored higher-end materials. Samsung used Product innovation, Pricing, Distribution, Advertising and Sales Promotion, and they made themselves a global business. Two Ways to Gain Advantages over
Samsung has used many marketing strategies but here are a few that make Samsung successful against their competitors. One way Samsung differentiate from their competitors was product strategies and having a wide range of products with heavy asset in technology with product innovation. Samsung product range in India includes: CTV’s, Audio, Video products, Information technology products, mobile phones, tablets and home appliances. Samsung success was contributed to having a wide product range. Samsung positioned themselves on the technology platform.
Secondly, Samsung acquired a new corporate identity. Samsung went global and used innovation and a Design Strategy. The management strategy explores product design and Samsung outsource to get the new product design for the consumers electronic product. The design strategy helped Samsung discipline themselves which helps determine what to make, why and how to innovate contextually, and both immediately and over the long term. The process involves the interplay between design and business strategy. Samsung learned to use social research methods to help ground the results and mitigate the risk of any course of action. “Samsung knows by tapping into a lot of strategies as Energy, Compliance, Climate will put pressure on their competitors. Samsung migrating into advanced geometrics to further reduce costs and proposing a hefty 100 percent profit in market share through an aggressive plans” (Balasescu, M. (2012).
Short Term & Long Term Consumer Promotion
LG likes to identify what their customer’s needs, wants, and expectations are and this is an ongoing process for their company. LG uses the product development stage were various surveys are conducted to collect their customer’s views. LG uses a collaborative communication and its programs that engages the customers from the product development stage and they communicate to their customers. Their company recognizes their consumers needs before the consumer know what they need. For example LG uses a method called Pair and Treat. Pair is when LG is finding the right product to fit the consumer’s lifestyle process in the mobile setting. Treat indicates what the consumer value is when it comes to leisure life. This process allows customers to try out their products before purchasing. Their vision of creating value for customers is to incorporate customer’s views and even the needs they have yet to recognize in their products and marketing by a customer communication framework. One is Customer-Orientated Communication which identifies and resolve customer’s current inconveniences.
The next one is Customer Guiding Communication. Advertising ads are used to show consumers how products are used. Thirdly, is Collaborative Communication cooperate with customers to create what they want and the last one is Pioneering Communication which perceive customers’ emotions and behavior in addition to their spoken words. LG HR management strives to be a people company that drives excellence from the team of best people, right people with a passion. Right people are individuals with competitive world class capabilities, strong with dedication and drive to win. LG also likes professional competency in their workers and a global mindset with expect work knowledge and know how, smart working style.
Samsung uses several pricing adjectives to gain an advantage over their competitors like differentiating a product. Samsung is a diverse business with chips, and display of other technology. Profit is another pricing objective Samsung uses this pays dividends, allowing them to be competitive on prices. Samsung is so much more than a smart phone maker. Samsung is a conglomerate, a manufacturer and the world’s largest chip maker and makes many of the components that go into its smart phone, moreover increases their sales which is another pricing objective they use to set them apart and giving an advantage over the competitors. Samsung can be flexible in terms of what it produces and when to produce what products is needed. Effective Advertising Medium
Samsung was very creative in choosing the medium of advertising. The first example is when launching the Galaxy S3 the product advertising for the phone was advertise in movie theaters. Samsung knew it was summertime and knew that consumers go to the movies why not show the ads before the film run. Second example is Samsung ran ads on features for Galaxy 3 through social media telling of how only Galaxy smart phone users to download free content such as music or e books directly to their phones. Samsung used other advertising medium as Advertising agencies but saw using ads in movie theaters showing the features for Galaxy smart phone users was a great idea along with printed advertising through magazine ads.
Social media medium on Google is very successful as well. The ads running continually ran on social media sites and magazines are working as well and less expensive as TV ads and radio that are normally used for advertising your business and products or services for your company. LG electronics used smart TV as an effective advertising medium while accompanied with traditional TV advertising. Ad targeting and relevance are keys to driving impact to the consumers even though banner advertising performs well across all brands. LG found that full package ads are most effective. Conclusion
Samsung strives to serve the consumer by continued commitment to innovation and transformative technologies. Samsung Electronics is shaping the future to create new experiences for consumers. Samsung knows offering an immersive entertainment experience with unrivaled picture quality, true detail and outstanding features with every product. LG Electronics brings innovation to different regions with marketing programs that tap into local customs, cultures around the world. LG household name can be in homes around the world. Their motto is to make every home Healthier, and Happier with LG Electronics products.
DOVLEAC, L., & BĂLĂŞESCU, M. (2012). MARKETING MIX FOR CONSUMER HIGH
TECHNOLOGY PRODUCTS. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 5(1), 41-48.