Founded in 1938, SAMSUNG has become one of the largest electronics companies in the universe. As the most popular electronics company among consumers in the universe, Samsung owns a good repute. Furthermore, Samsung occupies more than 20 % of entire export in South Korea ( Samsungish, 2010 ) . Presently, the invention and high quality of Samsung ‘s merchandises are recognized by the whole universe ( SAMSUNG, 2010a ) .
1.2.1 Market Segmentation
Market cleavage means that concerns divide their markets into a few subdivisions with similar characteristics, so that they can aim different groups of consumers and produce ware or service for them. Market cleavage is classified into four methods which are geographics, human ecology, psychological science and behaviours ( Hall et al, 2008 ) .
Marketing mix is defined as those elements of a house ‘s selling scheme which are designed to run into the demands of its clients ” . There are four factors which are called 4Ps, and they are merchandise, monetary value, publicity, and topographic point ( Hall et Al, 2008:75 ) .
The aim of this study is to analyse the differences of the market cleavage and selling mix of LG and SAMSUNG.
LG, a well-known trade name around the universe, is to sell TVs to rural countries in China ( Articlesbase, 2010 ) . Home contraptions such as Televisions, rinsing machines, and iceboxs are LG electronics ‘ major merchandises ( LG Electronics, 2010 ) . In add-on, LG is adept in utilizing advertizements to pull shoppers ( Pakistan & A ; Gulf Economist, 2005 ) .
Similarly, Samsung sells its merchandises in the universe. It non merely sells to metropoliss but besides rural countries. In order to favor consumers, Samsung holds promotional events to pull shoppers. However, Samsung has some merchandises which LG does non bring forth, such as Personal computer peripherals, print solutions, and memory cards ( SAMSUNG, 2010b ) .
An obvious manner of sectioning market is geography. LG Electronics sells its ware spread all over the universe, particularly well-known states, for illustration, LG digital telecasting in China. Yucheng Zheng ( 2010 ) , the CEO of LG Electronics ( China ) Co. , Ltd. , reported that LG launched a undertaking to advance digital telecasting in rural country in China. LG marks at the rural market and provides digital TVs and place appliers for rural consumers. The accent of rural section is monetary value fight ” . LG is traveling to cut down the monetary value of its merchandises so that it can develop good ( Articlesbase, 2010 ) .
Samsung focuses on rural country every bit good, for illustration, the Samsung colour Television in rural country and urban country of China. This section involves mass market, low- and medium-end units to rural clients or high-end merchandises to urban clients ” ( EssayForStudent, n.d ) . To cover with an extended merchandise line, a mass market capacitates Samsung to fulfill consumer demands. Because Samsung enters China market tardily, it faces challenges to be succeeded in mass market. Furthermore, the rural market, which is about 80 % of the whole market, is aimed by Samsung via the low-end units ” . However, because of the old concerns of low-priced, low-end colour TVs ” , Samsung had to work a new high-end Television ” in urban market. With the singular betterment of people ‘s populating criterion, the measure of high-end TVs in urban market in China is increasing though the section is non large ( EssayForStudent, n.d ) .
LG pays attending to upper and upper center categories and provides merchandises for those consumers. High quality and good service of LG merchandises are so progressive that merchandises are end product to developed states ( Pakistan & A ; Gulf Economist, 2005 ) . LG Electronicss ( 2010 ) in China shows that the merchandises include Television sound picture, nomadic phones, place contraptions, IT merchandises, and air conditioning ( LG Electronics, 2010 ) .
The pricing scheme of LG is cost plus fixed grade up ” . Following the pricing policy, LG ‘s expression is import cost + sensible gross net income ” . The expression is used to cover the market cost and do net incomes in any market including China ( Pakistan & A ; Gulf Economist, 2005 ) . An LG ‘s cell phone called Lollipop cost RMB 2,000 in 2009, when it foremost appeared in China.
One effectual manner of publicity is advertisement. As a celebrated trade name, LG advertises its merchandises to acquire promoted ( Pakistan & A ; Gulf Economist, 2005 ) . LG is accustomed to ask foring celebrated stars to publicize its ware. For case, Kim Tae-Hee, a celebrated actress, advertised for LG mobile phone and camera. Her advertizements pull immature shoppers in China to purchase comparative ware.
LG ‘s ware is sold throughout the universe, particularly developed parts. There are Numberss of LG retail merchants in large metropoliss including Guangzhou, Shanghai and Beijing. In add-on, LG sells its merchandises in place contraption interlink retail endeavors such as Suning and Gome in China.
Equally same as LG, Samsung besides provides nomadic devices, Television sound picture and place contraptions for Chinese shoppers. However, there are some merchandises that LG lacks, such as camera camcorder, Personal computer peripherals, print solutions, and memory cards ( SAMSUNG, 2010b ) . Furthermore, concentrating on the hereafter of radio communications, Samsung launched futuristic merchandises such as the nomadic phone ticker, the PDA-phone, the digital camera semen mobile phone, the MP3 Mobile phone and its latest theoretical account of 3G nomadic phone ” ( 123HelpMe, 2010 ) .
The monetary value of Samsung merchandises is similar with LG. For illustration, Samsung F480 Mobile Phone, which has 223 MB Memory, 5 Mega-Pixel Camera with 4 Ten Digital Zoom ” , cost RMB 993-RMB 2,325. Another illustration, Samsung UA40C7000 40 ” 3D LED Television, which is 40 ” Screen, Full HD, High Definition, Widescreen, HDMI, Internet, and 1920 ten 1080 pels ” , cost RMB 9,320- RMB 15,656 ( MyShopping, n.d. ) .
Samsung invariably holds gross revenues promotional events. For illustration, late, there is an event called Samsung Smart Television Promotion ” in HongKong. Customers can acquire a FREE Samsung 1TB external Hard Drive and 3D Starter Gift Pack upon buying eligible theoretical account of 3D LEDTV and 3D LCD Television ” from 16th October to 30th November ( SAMSUNG, 2010c ) . The publicity is able to assist Samsung spread out its gross revenues.
Samsung sells its merchandises by retail merchants and place contraption interlinks retail endeavors Suning and Gome every bit good as LG. Nevertheless, Samsung non merely sells merchandises in metropoliss, but besides in countryside. Samsung in China took portion in a policy named place contraptions to rural countries ” in 2009. This policy was to add net incomes to the multitudes that lived in rural countries. Samsung was one of the companies that help rural people improve their living criterion.
In short, the study involves the background of the two competitory companies, theory of market cleavage and selling mix and comparing between the two companies. Via discoursing market cleavage and selling mix of LG and Samsung, the high qualities of the two companies are obvious to be found. The general strength of Samsung is better than LG, so LG has to be enhanced.
Harmonizing to the analyses above, LG is recommended to better its promotional events so that there will be more consumers to buy its ware. Furthermore, LG is supposed to spread out the scope of its merchandises to different Fieldss. However, Samsung should sort its cleavage more clearly. As a consequence, if the two companies cut down the monetary value, the demand of their electronic merchandises will increase.