LG Electronics

For this assignment, your group will assume the responsibilities of LGE’s North American Planning team. Please write a report that responds to the following memo from Michael Ahn, President and CEO of LG Electronic’s (LGE) North American Headquarters. Please read the memo very carefully and be sure to provide the recommendations and justification that it requests from you. Please be sure to read the “Ground Rules” for this assignment very carefully as well, which appear after the memo. A printed copy of this assignment is due at the beginning of class on Tuesday, October 29 and an electronic version must be submitted to Blackboard / TurnItIn prior to class on October 29.

From: Michael Ahn, President and CEO of LGE’s North American Headquarters
To: Members of the North American planning team
Re: Marketing Recommendations

Dear Member of the North American planning team,

As you know, you have been given the task of designing our North American marketing strategy for our washing machine line. Our marketing research group has given you extensive findings concerning the attitudes and perceptions of U.S. consumers as well as recent trends in this market. At the next Executive Committee meeting, your team is expected to present your marketing plan. Please write a report containing your recommendations on the following key marketing issues for LGE.

1) Based on the research we conducted about the overall North American market, what are the main factors that drive consumer’s purchase decisions when buying washing machines? Given what we know, how well should LGE do in this market compared to Kenmore: more specifically, do consumers overall seem to prefer the LG TROMM or the Kenmore HE4t? (Make sure to justify your answer to this question.)
2) Recommend which of the target segments discussed in the case should become LGE’s target segment(s). Please justify why you chose this target segment based on the marketing research data we supplied to you, and explain why this segment is better for LGE than other target segments. Also discuss honestly any disadvantages of the target segment(s) you have chosen.
3) Recommend a positioning strategy for LG Electronics for your target segment. Discuss why you feel this is the best positioning strategy for LGE, and explain why it is superior to at least one other positioning strategy that your team also felt would appeal to LGE. Include a market positioning map or set of maps to illustrate this recommended positioning and use it to justify the positioning you recommend. Your positioning recommendations should also include an honest assessment the strengths and weaknesses of major competitors for LGE, given the positioning you recommend.
4) As you know, we are considering bringing one of two new concepts to market: a combination washer/dryer and washing machine that can steam clean clothes. Keeping your target segment in mind, please let us know which concept you recommend we bring to market and why. How would you describe the key new benefit of this concept to consumers?
5) We are also in the process of evaluating our marketing research group. Please let us know any concerns you had about the qualitative and quantitative research conducted for this project. Please also let us know what additional primary market research would have been helpful to your team in making your segmentation, targeting, and positioning recommendations.

Ground Rules – Please read carefully.

1) This is a group project. You will need to coordinate with your other team members. Everyone in the team will receive the same grade. Please read carefully the section on Guidelines for Group Projects in the syllabus. These guidelines are included to help your group function effectively, efficiently, and harmoniously.

2) Do not try to write up your recommendations independently of other group members, since this approach is likely to lead to disconnected recommendations that will not be useful to LGE. The best recommendations for each question above will depend on the recommendations your team makes in other questions. Your grade will depend not only on what your team recommends, but also on how well and clearly you explain and justify your recommendations and calculations. Every question should include justification of your recommendations.

3) The text of your report should not exceed six pages in length, with double spacing and twelve point font for the text. You may also include up to three pages of exhibits. Please be sure that the text refers to and explains any exhibits – otherwise we will not read the exhibits. Please number each of your answers to Questions 1- 5. Write and edit your report carefully. Your grade will depend on the clarity with which you present your analysis, recommendations, and justification. Make sure you read through the finished document yourself before you hand it in.

4) Many groups are likely to get very interested in LGE and washing machines in general when they write up the case. This is great and we will include recent developments at the end of our class discussion. However, please don’t use any information obtained outside of the case in your case analysis, and don’t rely on any developments after the time of the case. Do not assume that the marketing strategy that LGE has used since the time of the case is the best course of action.

5) Your team’s printed LGE report is due at the start of class on Tuesday, October 29th. No late cases will be accepted. Please be sure to put your section number and the names of all group members on the front of the case.

6) Your team must also, by the start of class on Tuesday October 29th, submit an electronic copy of your report to the TurnItIn plagiarism detection system which can now be done through our class Blackboard site. This requirement is to protect your group, and the entire class, from anyone attempting to gain an unfair advantage through plagiarism. TurnItIn is able to detect when parts of a written assignment are plagiarized from content available on the internet, or from an assignment turned in to TurnItIn by another student at NYU or any other university. You will receive instructions soon on how to submit your paper to TurnItIn using Blackboard.