Letter of transmittal
LG Electronics Australia MD
Mr. Daniel Shin
RE: Marketing LG Refrigerator and 15 LCD Television Remote Control in the Australian Market
Following a study on the Australian market, it was found out that the potential market for the company’s product can be established through analysis of the potential market of a country. In the areas such as suburban and large cities we observe large populations of people who prefer quality and unique goods and have a higher purchasing power, while in the regions where people live in the rural areas there is a tendency of having the product been of lower quality as they are more or less related to the customers income.
The management of a company can be in a position to increase the sales volume of the company product by carrying out a research about the customers’ behavior towards their products in order to understand the kind of target market in which to sell their products.
Product strategies within an organization should be carried out in order to make the right decisions that are commensurate with the organizations goals and objectives. Once the strategies have implemented, then the activities of the company can be implemented effectively.
I hope that the ideas that have been highlighted would be of assistance to you while making the company’s decisions.
Title: Establishing of a potential market for the LG refrigerator
Tutor: Daniel Shin
The LG refrigerators company is the company that buys and sells refrigerators that are of different type’s .For instance it consist of the innovative television refrigerators that are commensurate with the weather and the information centers that have attractive counter depth models with the built-in locks. Bottom freezer refrigerators are used to store food at an eye level in order to avoid the contamination of food substances
It was noted that the company was selling poor quality products, that led to complains from the customers that every time they utilized the equipment their food substances became bad frequently, hence led to large loses on the part of the consumers.
The management of the company can overcome this problem by implementing certain strategies within the organization such as the: market positioning strategies ,consumer behavior and the product strategies so as to increase the sales volume, profits and revenue of the company.
Table of content
Formal Introduction 1
Market Positioning Strategies 1
Consumer Behavior 9
Product Strategies 11
Conclusions and recommendations 11
In a business environment, there are many factors that affect the performance of a company such as the increased competion, tight budgets and stiff regulations that should be followed in order to carry out the duties and the responsibilities within an organization. It is therefore important for the management of the organization to set up strategies that are appropriate that will enhance the achievement of the goals and objectives of an organization.
It refers to the process whereby the marketers of any organization create an image or identity of the target market about the company’s product or brand. The positioning strategies that are made within an organization can established by taking into account what the competitors are doing in the market. The new companies that like tom venture in a company should position themselves in a way that can enable them to penetrate in the market they want to do business with. An example of a market positioning strategy such as the Unique Selling Proposition that is used to identify and to communicate the services that the firm offers to its customers hence can lead to the organization deriving benefits from the services been provided to the customers. It also shows what services to offer to the target market and how a firm can solve problems that may occur in the organization as this can improve the performance of a company.
The Unique Selling Proposition can be implemented by the management of the LG Electronics Australian organization as the strategy, to enable it to understand the products that are unique therefore be in a better position to compete effectively with other competitors in the market. It also states the benefits that are earned after implementing the strategy into the organization thus the company can produce the products that are can be accepted by the customers in general.
In the suburban regions and the large cities, the population of the people is usually denser and they tend to prefer luxurious products since they have the capacity and the ability to purchase those products. It was also noted that the people between the age of 30 to 40 years preferred to purchase the products that were of higher quality and expensive ones, as compared to the low earning individuals who did not care about the quality of their products .In another case the value as well as the lifestyle segment that can be used by persons in an organization determines how well a product will perform in the market, if the people value a company’s products more then they can purchase those items in the market. Personality of the consumer is used to show how the products would perform in the market since it influences their decisions to consume certain products and brand choices of a product , for example the most competitive, ambitious persons would prefer to purchase the product that are of the latest technology si9nce its prestigious to acquire the models into their houses .
The positioning strategies that can be applied in the organization are: product attributes benefits usage occasions, user, against competitor strategies and the product classes’ strategies. The LG refrigerators can be positioned on the basis of the customers attitude towards the product in the market or the benefit that will be derived from utilizing the product in the market, its use or application, class price or the level of the quality of the product in the market since people prefer products that are of good quality since they last for a longer period of time as compared to the poor quality goods that last for a shorter period of time.
It is a map that shows the consumers perception towards various products in the market .The most competitive products are selected by the consumers on the basis of their attributes obtained after carrying out market research within an organization. The management of the LG refrigerators should implement perceptual maps so that they can determine how well their products are performing in the market. It also assists in making the right decisions for the organization, since the management can check on the maps on the areas where there are no competitive rivals that may hinder high sales volume for the company.
It refers to the processes and activities that are involved in ensuring that people to search for, select, purchase, use the disposing products and services so that they can be in a position to meet the needs and their desires at the appropriate point in time.
The steps that are followed when a consumer is deciding on which products to purchase in the market are :establishing the scenarios in which the buyer would like to buy the LG refrigerator product in the market ,for example the product can be purchased on the basis of its quality, durability and the type of products that should be stored within the refrigerator .The other step involves the buyer setting goals that outline the decisions that should be followed while one is trying to achieve their goals and objectives so that the right products are purchased.
The other step involves identifying the obstacles that may hinder one from achieving the goals and objectives within an organization for example the company may not have enough spare parts for replacing the obsolete and the non working parts of the refrigerator, therefore they should be cautious while undertaking their tasks within the organization . The buyer should also identify the alternatives that can be used instead of purchasing the new products so as to ensure that the customers get the services that they require for example they can purchase the secondhand machines that can serve the same purpose as the new machines hence reduce the cost of researching a new model in the market.
The next step that can be followed involves evaluating the products advantages and their disadvantages that can assist the buyer to determine the products that he should purchase and the costs that are related with purchasing the products in the market. The advantages of the LG refrigerators are that one may purchase the products that can store the perishable goods that may go bad over a short period of time. The other advantage is that the owner of the machine may not waste time in trying to acquire the goods that they require since the goods can stay for a longer period of time without go bad. The consumer should also rank the alternatives according to the order in which the alternatives are useful to the consumers so that they can make the most appropriate decisions for the organization as failure to follow the right procedures may lead to losses for an organization.
The other step involves choosing the best alternatives and the evaluating the consequences that may occur as a result of choosing a certain alternative. It is important for the purchaser of the LG refrigerators goods to be cautious about the problems that may occur as a result of utilizing the product that is to be purchased so that safety precautions can be implemented in order to avoid hazards from occurring in the future. The factors that may influence the consumer buying behavior are: the personal, social, cultural and psychological factors. The cultural factors are the factors that state the set of values, perceptions, wants and behavior that are learned from the members of the society or in the family to act in certain ways in the organizations. The factor is based on the fact that persons must utilize their basic needs as they arise to the organization. The social class refers to how the society permanently and orderly divides the members that share the same values, interests and behaviors and are based on the customers’ occupation, income, education, wealth and other variables that exist within an organization.
The psychological factors are the factor that states the kind of buyers, their choises, motivation, perception learning, beliefs and their attitude towards the situations that may exist in a community. It also refers to the way different kinds of people react to different situations due to the force that has been imposed on those persons in order to satisfy their needs and desires.
The management of the organization should develop products on the basis of the income that will be derived from selling the product in the market. The product should have more advantages as compared to those of its competitors such as determining the products lower total cost of ownership, faster deployment level, greater usability and its operating spend that can enhance its workability. The LG refrigerator can be successfully implemented within the organization by having attributes such as fast, cheap and good quality products than those of its competitors.
Conclusions and Recommendations
It is important for organization be careful while making decisions within the organization this can adversely affect the performance of a company that can lead to low sales volume for the company’s products. The implementation of strategies such as product, consumer behavior and marketing positioning strategies can lead to good decision making programs for an organization that can lead to improved performance for a company in general. There are various models of refrigerators in the market hence the management of organization should ensure that they carry out extensive research that can ensure that the right kinds of models are supplied to the customers so as to avoid stock outs that can result to bad reputation of a company thus lead to low sales volume, profits and revenue for a company.
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