Marketing Plan LG in Egypt Ahmed Draft0

RMIT International University
[MARKETING PLAN: IPHONE 4S] 1
Marketing Plan:
LG Refrigerator
Marketing Principles
[MARKETING PLAN: LG REFRIGRATOR] 2
TABLE OF CONTENTS
I. ANALYSIS .......................................................................................................................................... 3
CURRENT MARKETING SITUATION ............................................................................................................3
Executive Summary ............................................................................................................................................3
Introduction .......................................................................................................................................................42
Situation Analysis..............................................................................................................................................43
Micro Environment ...........................................................................................................................................43
Macro Environment ...........................................................................................................................................46
SWOT Analysis.................................................................................................................................................49
SEGMENTATION, TARGETING AND POSITIONING ..............................................................................50
Market Segmentation.........................................................................................................................................50
Target Market ....................................................................................................................................................50
PROFILE OF T ARGET M ARKET .........................................................................................................................50
T ARGETING S TRATEGY ....................................................................................................................................50
Differentiation and Positioning .........................................................................................................................51
COMPETITIVE ADVANTAGES ...........................................................................................................................51
POSITIONING S TRATEGY ..................................................................................................................................51
POSITIONING M APS ..........................................................................................................................................51
MARKETING MIX STRATEGIES ..................................................................................................................52
PRODUCT ...........................................................................................................................................................52
PRICE .................................................................................................................................................................53
PLACE ................................................................................................................................................................54
PROMOTION ......................................................................................................................................................54
II. OBJECTIVES................................................................................................................................... 55
III. RECOMMENDATIONS ................................................................................................................. 55
MARKETING S TRATEGIES ................................................................................................................................55
SWOT MATRIX ................................................................................................................................................57
MARKETING MIX STRATEGIES ........................................................................................................................58
ACTION PROGRAM ............................................................................................................................................62
CONTROLS ........................................................................................................................................................63
IV. APPENDIX ................................................................................................................................... 64
V. REFERENCE LIST ......................................................................................................................... 71
I. ANALYSIS
CURRENT MARKETING SITUATION
Executive Summary
This marketing plan arrangement will examine a few sections of LG products, which are the most
powerful and advanced home appliance in Egypt with a specific end goal to convey more customer and
make LG in Egypt more effective.
Firstly, this study will present the circumstance of the LG products in Egypt. This part will specify about
the organization portrayal (history, business execution, values etc.) and product depiction (plan,
capacities, highlights and so forth.)
Also, market environment will be cleared up through microenvironment and macro scale environment to
know LG products is reasonable for Egyptian individuals and Egypt nation.
Moreover, SWOT Analysis has been executed to know plainly about the LG products feature state of
mind (inside) and Egyptian mentality (outside). A few Strengths, Weaknesses, Opportunities and Threats
have been brought up for the peruser to know precisely the qualities of the LG products and circumstance
of Egypt.
Next, Segmentation, Targeting and Positioning will be examined. Later on, Marketing Mix Strategies
comprise of Product, value, Place and Promotion are likewise researched profoundly.
To wrap things up, all parts of the promoting arrangement will be examined in suggestion part.
Introduction
The previous years described by the firm rivalry for the mind space of the egyptian customer. A large
portion of the multinational organizations propelled their most recent items in the Egyptian market. Past
years likewise observed arrangements that impression of the egyptian market changed as far as volume
and item traits over a time. It is a bit much that the items that have been an incredible accomplishment
outside the nation will keep on performing great on egyptian land. Egyptian customer searches for esteem
for cash.
Decrease in the financial development of the nation negatively affected the majority of the enterprises.
Purchaser solid was not an exemption to this.
Since the costs of the majority of refrigerator are in multiples of a normal average individual's
month to month compensation, there is a chain of importance of procurement, with the market being
price sensitive .
Correspondingly, any adjustment in government strategy with respect to lives, import obligations and so
on, can bring about impressive moves in demand along various segments; these strategies additionally
influence the aggregate local request.
While brand loyalty is a vital thought for customers, buys are significantly impacted by merchants,
making a boundless sales shopes chain, a basic requirment for success. Henceforth an extensive variety
of items covering all or all fragments, would give a manfacture economies of scale in dispersion and in
addition empower him to give strong after sales support.
Players acquire the buyer by offering countless and scope of models jarring for rack space,
discount and merchant edges have gotten to be essential to hold merchant enthusiasm for pushing the
item. A few organizations have been putting forth merchants costly endowments and even travel abroad.
LG products has been decided for this marketing plan since it is a hi-tech ,advanced, imaginative and
motivating item, which is existing in Egypt showcase. In addition, it is likewise truly valuable and could
help its client's everyday life turn out to be even more energizing and fascinating. Notwithstanding, there
are numerous difficulties for the LG products to achieve its best deals potential in Egypt. Also, the
Egyptian economy cause a few disservices to LG products. Therefore, this promoting arrangement is
made with a specific end goal to help it turn into the best products in Egypt.
Strategic Situation Analysis
Quality and relevance of audit (internal & external)

PEST
5 Porter s
SWOT
PEST Analysis
Political and Economic Environment:
Egypt is experiencing economical emergency after floating the Egyptian pound . These economical
conditions have made industry exceptionally flimsy. Further more raising the price of fuels such as
gasoline and gas It expands cost of manufacturing and subsequently drives them to in reverse position in
worldwide industry. From the past a few years Government of the Egypt are empowering export
strategies. Furthermore urge the outside investor whether Egyptian or international to put resources into
Egypt..
Government of Egypt has expanded duty rate on air condition/refrigerators, electric fans, toasters, micro
wave ovens, TVs and so on from 25% to 35% while rates on electric stoves/cooking ranges expanded
from 20% to 30% and it is not a decent sign for new financial investors, since it will likewise advance
carrying of home appliances.
On the off chance that the Government decrease the import duties on the crude materials the purchasing
force can be expanded for fridges. Egypt agreed with other countries which give services to Egypt by
using the worker of Egypt,. main positive thing from this that assembling expense of the product or the
service decreased (cost reduction), like the power bills, other industrial facility overheads, charges and so
on, so this is the reason that egypt want to outsource the service from the countries agreed to utilize
Egyptian workers. To set up a plant for this industry is less simple, one needs to satisfy certain principles
and directions, and furthermore the immense investment is required.
Social Environment:
There is a noteworthy move in the estimations of the general population of Egypt. The family size has
decreased. Factually, now individuals like to live separate instead of the joint family home. So it general
expanded interest for home appliance and particularly for refrigerator industry.
In Egypt, individuals buy home apparatuses on the season of event like marriage. They get them as share
thing and it has changed the demand shape now the refrigerator purchasing is almost constant during the
year. The accessibility of various items has likewise influenced the purchasing demand. Interest for
refrigrator is expanding a result of easiness of loans on the creadit card. Also, because of long and hot
summer season refrigrator has ended up essential need of each home. egypt is nation with more than 90
million individuals in it. This colossal populace has made our country paradise for entire home appliance
industry.
Innovative Environment:
In egypt you can find world's best fridges with highest tech frameworks in the market.
Advanced refrigerators utilize R600 since the old refrigerant and CFCs are unsafe to the climate if
discharged.
A few refregrators has microprocessor based control that takes into account versatile parameters are
checked and the control programming decides the best way to run the refregrator.
In freezing units, products are made with energy effective in keeping the food because of that individuals
need to purchase both fridges and deep freezer for space and capacity purposes.
Vitamin C innovation is utilizing for crisp sustenance stockpiling. Slide-out rack for simple nourishment
get to is new pattern. Programmed problems distinguishing and warming framework, door cooling
warning framework, upgraded condensedsystem. Water dispensers are likewise appended with new units.
Three doors fridges with enhanced quality and high space limit are likewise exicted in the market.
Another great element added to cooler is TV joined in its entryway.
Porter Analysis
Rivals power:
The refrigerator in Egypt market has two types local and imported. The local refregrator are Kiriazi, El
araby, electrostar, they take the 90% of the refrigerator market of egypt. The imported are LG, Sam Sung,
Siemens and General. They cook the 5% advertise prerequisites. Electrolux is a joint venture, so it is the
main multinational organization which has its plant in egypt and provide food right around 5% piece of
the overall market.
Bargaining power of buyers:
At the manfacturing level the purchaser power is not high . There are numerous organizations
making refrigrators in egypt, they are making a number of their parts locally and getting the ease
benefits.
At purchaser/extreme client level the dealing force is low as the purchasers are divided. The price
are settled in a large portion of the cases and no rebate is offered. The buyer are generally mindful
of the costs and they don't attempt to deal which makes the bartering force of the purchasers low
.switching cost level is low because of the fact that there are numerous providers in the market, the
purchaser may effortlessly switch to other brand if he investigate the cost and quality of the other
provider good for him
BARGAINING POWER OF SUPPLIERS:
Here the supplier in this industry are not predominant as there are parcel of providers from
various nations and providing distinctive parts of numerous qualities, for example, significant part
of the refrigrator is the compressor in which the entire refrigrator is depend on the compressor is
import from China, Italy, France, Japan and USA and so forth. There are numerous providers who
are making compressors.
Threat of Substitute:
There is no nearby substitute to refrigrator and freezers. Still as of now there is no innovative item
that turned out to be a nearby substitute of either fridge or coolers. As both items have distinctive
points of interest and characteristics
Threats of new entrants:
With the rise of new organizations in egypt, it will be essintial for the local fabricating
organizations to build their quality to compete with them, on the grounds that new firms are
accompanying imported and advanced refrigrator. Henceforth rivalry will be on quality, further
more the company should invest in Resarch to attracte the new clinets that why LG gain the
market in new items and advanced technology refrigratorsof
Situation Analysis
COMPANY DESCRIPTION
LG is a multinational corporation, which operates in various countries.The US $ 73 billion
LG gathering is one of the world's top aggregates today, having set up its matchless
quality in assorted field going from gadgets, chemicals, and so on., to exchange and
administrations. LG was the primary Korean Company to make beauty care products and
to enter the manufactured pitches industry. LG set up "Goldstar" in 1958, opening the way
to the hardware business in Korea. Goldstar was the Korean producer to deliver radios
By mid-eighties, LG developed into a main thorough concoction organization. It extended
its electric and gadgets business, progressed into the data and correspondence segment,
extended its assets and materials business
"Goldstar" mark item deals in 1996 came to US $ 9 billion, which positioned one of the
top gadgets businesses on the planet entered Egypt market..
In the succeeding years, LG built a new plant in Egypt to manufacture the led tv , washing
machine and the rest home appliance in Egypt.
PRODUCT DESCRIPTION
Boasting a lot of shrewd components and premium style, LG refrigerator are
stuffed with the most recent developments and arrive in an assortment of styles,
including:
French door refrigerators offer the most recent advances in nourishment
freshness joined with noteworthy stockpiling limit. LG has a style and size for each
kitchen setting.
Side-by-side refrigerators: one of most mainstream styles, these fridges feature
LG's most recent cooling and freshness innovation, advantageous capacity all through
and styling that upgrades each kitchen. also, you can see your whole nourishment stock
initially.
TOP-FREEZER REFRIGERATORS: boast propelled freshness highlights and upscale

energy - through and through! you'll get far reaching stockpiling and comfort, in addition
to immortal styling that upgrades each kitchen setting.
BOTTOM-FREEZER REFRIGERATORS: With this style, the fridge is eye level - precisely
where you need it.
DOOR-IN-DOORTM REFRIGERATORS: LG stockpiling development gives moment access to

your most loved favorite foods and reduce losing cold air misfortune up to 47%. You can get in
and get out rapidly on account of simple entryway in-entryway access to drinks and snacks.
LG has the ideal fridge for your home, your life and your style. Not just would you be able
to browse a few sorts of inventive refrigerators, you'll get all the most recent components like
LG's elite Linear Compressor innovation, which conveys ideal cooling, working proficiency and
unwavering quality. Discover your refrigerator today and make certain to see the greater part of
our rich home and kitchen apparatuses, including imaginative cooking machines, microwave
stoves, dishwashers and then some. Get the execution, style and vitality proficiency you have
to make the home you've generally needed.
http://www.lg.com/eg_en/refrigerators
Micro Environment
Company
LG Electronics (LGE) is a producer of electronic apparatuses, home excitement items,and

electronic parts. The organization makes an extensive variety of items. An expanded operation empowers
the organization to exploit openings inside particular markets and topographies, and in the meantime
shields it from portion particular difficulties.
Internal Analysis:
SWOT Analysis
Internal environment have to be scanned to become able to use the organization strength in achieving its
goals and improve its weakness to avoid organization failure.
Strengths:
Strengths in the SWOT investigation of LG gadgets
1. Global Giant: LG Electronics controls a lot of sub diaries around the world
2. Extensive distribution framework: LG being a quick moving customer tough organization makes
its items existing in the market sectors through its distribution chain.
3. Diversified refrigerator over the range: LG has a tremendous product offering and length over the
item classifications.
4. Brand equity The long time for existing of LG in the market, alongside their astounding item
systems, and unwavering quality on their items has guaranteed that LG has a solid brand equity,
and subsequently can make due in an intense business environment.
5. LG has solid innovative work (R&D) abilities. LGE is resolved to put resources into R&D to
make items with the most recent innovation and style. LG works 38 inquire about labs all through
the world. The organization's solid concentrate on R&D has empowered it to turn out with
creative items.
6. Marketing division: this Department is a center competency of LG refrigerator in egypt and
Marketing division is assuming a key part for the notoriety of organization over the organization
and this is turned out to be a solid point for LG in Egypt
7. Product Leadership: Alludes to the capacity to create imaginative, premium items through
particular innovations
8. Corporate Culture: Despite the fact that an organization executes consummate administration
procedures and gloats of remarkable and capable individuals, it ought to have a fitting corporate
culture to unleash the force of these capacities.
Weakness:
Presently there are no huge shortcomings of LG in the Local Market and LG is doing getting it done in
the market so as to manage in the nearby market and ended up being a progressive administration
capacity through persistent improvement in its product offerings.
1. Dependent Distribution Network: LG has not its own particular free Distribution arrange.
2. Target Markets: LG is concentrating on upper white-collar class and exclusive class just in its
cooler market and not concentrating on working class of the populace that is the reason it can't
pick up the greatest piece of the overall industry than different contenders and not showcase
pioneer at the occurrence.
3. Due to the products size and customization options, distribution and storage will be challenging
4. LG refrigerator is facing hard competition.
5. Management: Due to its broad filed of management in the white goods , electronics
,mobile phones and led television goods they are not ready to concentrate on each and
every item
6. No source of income most brands have a super hit item which is a money cash cow. In any
case, in LG, there is not any item, which is a money cash cow for them.
7. Demand is seasonal and is high during summer season.
8. Low purchasing power of consumers.

Opportunities
Taking after elements are thought to be the real open doors for the organization
1. Growth in population is dependably a major open door to upgrade their product features and
quantity as this increment demand in like manner.
2. Availability of Consumer and buyers financing expanded the purchasing force of clients and
this pattern open door for the organizations to offer important items at an additional costs.
3. Customer needs As there are refrigerator improvement this open doors for the organizations to
build up their items in such an approach to boost the item utility and to give the more
advantages to clients.
4. New innovation & technologyNew Technology is turned out to be a major driver for the new
item advancement and improvement of existing items. In this way, new innovative patterns
dependably give extreme chances to the organizations to build up their items recently.
5. Potential to catch additional extra share of the overall market industry Firms can catch extra
piece of the overall industry through enhancement procedures, as LG is most expanded
organization has a substantial broadened product offerings.
Threats
1. LG refrigerators has several competitors imported such as Samsung, Sharp and Local such as
El Araby, Kiriazi.
2. The legislation has been passed frequently related to industry
3. Technological transformation takes place in the industry was very high
4. Most of the target market already has an experience or owns a refrigerator before.
5. Other manufactures may copy the products shape design and features.
6. Customers may not buy in to the new technology or smart refrigerator concept.
7. Risk from substitute items/benefits the household purchaser is tormented by dangers from
substitute items. Simple availability to theaters/multiplexes, particularly in urban ranges.
Aims, Objectives and Strategies
Both corporate and marketing objectives and Strategies
These should be listed and clearly identified, and linked to the

500 controls.
Marketing Objectives
1. To increase the sale of the Dealers and Achieve yearly growth in deals income of 25% ..
2. achieve a -yearly unit deals volume of 1/2 million, which speak to 35 % of Egyptian
market
3. To change the Brand Loyalty of the Customers .
Appropriateness of segmentation, targeting and positioning

strategies.
Who is your target market? You need to explain why? Explain the
chosen segmentation criteria with justification. Who are the
competitors? What is your organizations current positioning in relation
to the competitors? Is it unique enough to give you competitive
advantage? If not, what are you suggesting? Why? You need to show current
and future positioning using perceptual maps. What is the 600
communication theme?
Client ANALYSIS: The above all motivation behind why the organization works is to acquire profit and
the way they can gain profit is through clients. Their goals for the end of the day is to either make or pick
up clients and keep them until they are beneficial to the organization.
To do that the organizations attempt to produce the products or offerings that coustmers need and esteem
them at costs that are more fascinating than the competitor.
LG for the most part works in the upper and center segment of Socio-monetary class of the clients which
incorporates the high and white collar class.
In the late years LG refregrator has thought of various variations refrigrators in the Direct cool fridges,
Forst free referigerator, Side by side, French Door for the Upper and smart fridge for white collar and
upper class individuals.
Before we select an objective market we have to recognize potential sectors that are accessible to
purchase our refrigerators.
Recognizing the Segment:
There are a few bases to recognize the segments for refrigrator however we will choose our section on the
premise of
Geographic
Demographics
Behaviouralistic
Target Markets:
Quality.feedback@qnbalahli.com
Segmentation from Geographic:
From geographic division we will work on all people Located in Egypt not region-specific. At first we
will take exclusive class of main cities all over Egypt starting in cairo and alexandria. After fruitful
dispatch of refrigerators in cairo and alexandria we will dispatch it in significant urban communities of
egypt like luxour, Ismailia ..etc.
Segmentation from Demographics (Income Level):
Our second Segmentation base is the salary level and age we will make our objective market is be buyers
with high and mid income levels and age from 30 to 40 years.
Segmentation from Behavioristic and Psychographic approach:
The third base that we have chosen is Behavioristic and Psychographic division approach. in this part we
will choose a customer loves and behaviors like
Good view of products, quality of products, up to date life style, interesting in technology, effort and time
saving
Market situation and competitors :

We develop the next figure the basis of prices charge and innovation in all the refrigerator Egyptian
Prices
High LG & Samsung
El Araby
Medium
Kiriazi
Low
Electrostar & other
LG and Competitor Review

LG:
Position: A good position of the refrigerator business, with the second most: reasonable costs and
demonstrated item quality make purchaser certainty.
Strategy: Launch a forceful advertising effort that highlights their presentation of new fridges that
are more helpful for the client.
The LG-Fridge has more than 3 noteworthy rivals in the cooler business:
El Araby Group maintained its lead in refrigeration appliances in 2015, recording a 29% share of volume
sales.
Kiriazi Group, which were second with 20% their long history with making fridges that are high caliber,
has made a feeling of trust among buyers.
Olympic Group, which were third with 19% volume.
Samsung:
Position: A pioneer in the fridge business with a high piece of the overall industry: reliable item
quality and a decent reputation make their items more alluring. They are not known for their fridges
however.
Electrostar:
Position: An outstanding refrigrator maker that has the most low piece of the pie in the fridge
business.
Positioning:
LG is a brand with the picture of most creative producer of gadgets on the planet. The items are
situated in the psyches of its clients as premium items.
LG has a position proclamation of "Life's Good" which speaks to LG's assurance to give
delightfully shrewd items that will make their buyer's life great.
Their trademark, 'Life's Good' best communicates their image's qualities, guarantees,
advantages and identity. It is an extreme expression for what their image remains for and what
they endeavor to convey constantly
Advertise Positioning
The refrigerator is intended to satisfy the purchaser's requirement for an adaptable apparatus
that fits their details and the requirement for a more useful, time and vitality sparing home
machine.
The refrigerator is designed for the modern shopper.
The refrigerator offers the up-to-date specification shopper an approach to update their home
further.
The innovation in the refrigerator is effective, saving the client money after some time.
The refrigrators can be tweaked to suit the market requirments
Purposes behind market plan:

A standout amongst the home appliance in homes is the refrigerators; these are well known in both urban
and village area. This was the reason this class was the most grounded in refrigeration products over the
past time frame, and is expected to keep up its advantage over the conjecture time frame. The main
manufactures understand the significance of this areas and the level of demand, so they offer different
models and products at various value reaches to cover the requirements of all buyers.
Two new bits of legislation were applied newly ,one by the national bank of Egypt to breaking point
ledger stores to US$50,000 every month, and the other by the customs authority to raise the cost of
imported items by 30%. These are main factors upon to guarantee that the main locally made brands in
refrigeration models keep up their lead over the figure time frame, decreasing the level of rivalry between
Egyptian fabricated brands and worldwide brands.
The purpose behind the development of this marketing plan arrangement is that we are propelling another
and particular refrigerator in the market. As the item is new so we need to change buyer conduct and also
position our refrigerator item as premium item in the psyche and the brain of shoppers who are wellbeing
cognizant. Additionally that we have to make promoting systems to effectively dispatch our new item in
the market. This report gives a point by point examination of cooler industry, focusing on, situating,
contenders, cost and item systems.
MARKETING MIX Strategy of 4 Ps
Product
LG products methodology is to introduce the best quality and innovation. Along these lines, the LG
Fridge bolsters elements, for example, Frost Free, 2 entryway base cooler, Refrigerant R600, Premium
look and Design, Quiet and more solid Compressor and so on. Moreover, LG is trying to pick up market
leader position so they will bring new and inventive items in the market. To catch market leadership they
are introducing different types and ranges of refrigerator to provide the answer for the demand request of
significant classes of the market. This range is wide enough to cover he market needs from the several
types like DIRECT COOL & FROST FREE: SIDE BY SIDE and FRENCH DOOR
LG has refrigerator differentiation procedure in the market. Subsequently they are delivering distinctive
product to the market.
Price
Price Strategy
To launch new products the most appropriate pricing procedure is skimming arrangement. So we will
collect cash from early adopters at starting stage. The refrigerator will be accessible in the market at a
cost going from 6000 EP to 13000 EP. The refrigerators will be accessible at outlets at same or uniform
value level. The item has a lot of advantage to clients through advancement so it will be charged at
premium cost. The product will be in classes like Prestige appearance and advanced refrigerator. So the
value proposition of the product is high. The product will be accessible in the entire nation at a similar
cost though outbound cost of the fridge from LG to wholesaler or retail outlet will be adapted by LG this
making LG empower to execute a uniform product price for everyone at any merchants whether they are
huge or little all through the nation
Promotion Strategy
LG utilizes various types of promotion. LG as an organization has faith in pulling the client to himself or
herself through publicizing however in the meantime utilizes solid strategies to push the refrigerator to
the client through deals advancements. Consequently on one hand, LG will enter new refrigerator with
exceptionally alluring technique. They are as of now putting high cash value in advancement i.e around
6-7 % of their income. Normally the business advancement spending plan and their assignment are
depicted by LG Korea. Following is the way to dispatch this product
Publicizing and Advertising
Roughly 80 % of the advancement spending will be utilized for the promotion of the item.
Electronic Media , internet and social media:
Out of aggregate advirtisng

spending plan roughly 25% of the spending will be assigned to the electronic media like cables TV
.internet advertising, marketing emails.
Outdoor Media:
Out of promotion spending plan around 40% will be dispensed for the Outdoor Media commercial.
Print Media:
35% of the promotion spending plan ought to be assigned to the print media. These will incorporate
promotion on top line daily papers and top of the line magazines. Also, handouts will be distributed with
the material containing advantages and use of the item.
Direct Marketing:
20% of aggregate spending plan ought to be distributed to direct advertising. Merchants will be a
noteworthy instrument for the offer of our item as they have impact on purchasing choice of the buyer.
They ought to be taught totally about our refrigerator. They should know all the specification,
determination, advantages and components of our item.
Place distribution Strategy :
LG has a good utilize its distribution arrangement all over egypt. This arrangement make the
accessibility and existment of the refrigrator all over various egypt markets.
There are roughly 2500 merchants accessible to LG countrywide. Consequently LG has incredible chance
to proficiently and successfully use this immense system. As the refregrator is focusing on the request of
specialty in this manner not everything except rather some of them will be utilized for the dispersion of
the items. Merchants in those business sectors where exclusive class ordinarily do their shopping will be
areas of our item.
LG refrigerator is available through different directs in the market. The Modern retail section
incorporates expansive retailers like Carrefour, Hyper one, and Smart home and any other people who are
available in the up-to-date electronic retail chain. LG refrigerator being such a marked item, the retailers
will undoubtedly keep LG refrigerator as an option for their clients.
Three Year Marketing Plan of the LG refrigrator:

The three year marketing plan of the product will be as follows
Year 1: We will launch our product in Cairo ,Alexandria, assuit and louxor only.
Year 2: We will launch our product in Egypt upper half .
Year 3: Will launch our product to other half of the country and introduce some more features to the
products if necessary.
Refrigerators launching Zones time frame Gantt Chart
Egypt lower Half
Egypt Upper Half
Cairo & Alex

1. Expected Sales
Units Marketing
Year Percent Market Share Revenue EP Notes
Sold budget
1 40,000 3%
240,000,000 16,800,000
2 150,000 10%
900,000,000 63,000,000
3 225,000 15%
1,350,000,000 94,500,000
4 375,000 25%
2,250,000,000 157,500,000
Budget
Year 1 2 3 4
Distribution
Total Value EP 7%
16,800,000 63,000,000 94,500,000 157,500,000
Elec., internet and
35%
social media 5,880,000 22,050,000 33,075,000 55,125,000
Outdoor Media 40%
6,720,000 25,200,000 37,800,000 63,000,000
Print Media 5%
840,000 3,150,000 4,725,000 7,875,000
Direct Marketing 20%
3,360,000 12,600,000 18,900,000 31,500,000
Controls
Goal: Launch promoting effort and make campaigns during the first year.
Measure of Performance: Execute arranged marketing communication methodologies and utilize

client surveys to decide the effect and range required of the advertising effort.
Goal: Capture 3% of the market in the primary year and 10% before the second's over year.
Measure of Performance: Compare organization deals to the aggregate market deals.

Accomplishing required market share would mean offering 40,000 units in the main year and 150,000
units in the second year.
Goal: Availability of fundamental models in every single significant retailer.
Measure of Performance: Build and guarantee connections with retailers, for example,
Carrefour, Spinneys, large merchants all over Egypt, and so on.
Future Outlook of LG refrigerator:
LG refrigerator is being dispatch in Egypt recently. The refrigerator has been propelled in the global
market where the refrigerator market share is increasing. The LG refrigerator has additionally effectively
earned numerous universal honors.
These honors demonstrate the achievement of the LG refrigerator in the global market, notwithstanding if
the marketing arrangement is executed legitimately in Egypt The LG refrigerator will be favored by the
majority of the potential clients in the market.
The LG refrigerator will face tight market circumstance because of economy situation of Egypt. in any
case it won't be influenced a lot. In light of the fact that in future, circumstance is relied upon to be
controlled. The latest economic decisions will help that the economic situation position will be better.
Furthermore, the first class or high society is not influenced a lot by this emergency but we can state that
it does not have any real effect on our objective market at least for the first two years.
So the product will have a good development rate in the market in forthcoming 5 years. Accordingly, LG
decided to boost USD 400 millions to complete the next step by building a refrigerator factory beside it
electronics factory in the Tenth of Ramadan city. LG planned to export from these factories.
The second phase aims to produce refrigerators and adaptations.
"As part of LG's strategy, the firm plans to boost its exports to USD 600m USD 800m in 201
5 to be expanded
to USD 1.7bn by 2016", said Hamdy.
By 2017, LG's exports are planned to reach USD 3bn. The current exports volume is about US
D 5060 m,
Hamdy added.
The product will face very tight market situation due to security crisis of Pakistan, however it will not be
affected too much because in future situation is expected to be controlled and the security position will be
better and also the elite or upper class is not affected too much by this crisis but a little bit so we can say
that it does not have any major impact on our target market so the product will have a good growth rate in
the market in upcoming 5 years.
The item will reach to its development arrange and there are additionally odds of
up degree of the item or change or establishment of some additional part like
LCD's in the item that will make extension of item in the market. Thus we can
state that the item will be utilized as a base item as a part of the market to get
advancement and separation the market.
Action Program________________________________________________
Necessary Actions
1. Start manufacturing and begin developing an advertising campaign immediately.
Allocated time for completion: one month.
2. Start accepting orders and create new advertisements will be introduced once the six month mark
is reached.
Allocated time for completion: six months.
3. Assess progress on the companys goals after one year and make any necessary changes to the
companys objectives and strategies.
Budget:
2. Required Funds
Factory, building, and equipment costs: $15,000,000
Total cost for production in the first year: $2,400,000,000
Profit is not expected in first year of operation. Much of the revenue will go to investors.
3. Expected Sales
Year Units Sold Percent Market Share Revenue

1 400,000 5% $2,800,000,000
2 800,000 10% $5,600,000,000
3 1,000,000 12.5% $7,000,000,000
4. Expected Expenses
Total cost of production for the first year (materials, labor, research and development and
overhead): $5,000,000
Necessary price markup: 16.75%.
Advertising campaign expense: $10,000,000
Controls
Goal: Launch marketing campaign within first month of project.
Measure of Performance: Execute planned marketing communication strategies and use
customer surveys to determine the reach of the advertising campaign.
Goal: Capture 5% of the market in the first year and 10% by the end of the second year.
Measure of Performance: Compare company sales to the total market sales. Achieving
desired market share would mean selling 400,000 units in the first year and 800,000 units
in the second year.
Goal: Availability of basic models in all major retailers.
Measure of Performance: Build and ensure connections with retailers such as Best Buy,
Sears, Target, Walmart, etc.
Three Year Marketing Plan of the Product:

Year 1: We will launch our product in Lahore only.
Year 2: We will launch our product in Karachi, Islamabad and Peshawar.
Year 3: Will launch our product to other major cities of the country and introduce some more features to
the products like LCD TV if necessary.
Future Outlook of Quadoor Cooling System:
Quadoor cooling refrigerator is being launch in Pakistan for the first time. The refrigerator has been
launched in the international market where the product is gaining very good market share in side by side
refrigerator category. The concept has also successfully earned many international awards. Some of them
are as follows:
Highest in Customer Satisfaction 2005 & 2006 J.D. Power & Associates
Good Buy Awards Good Housekeeping
Best of Innovations 2006 International CES
Innovative Award - EETimes2006
American Building Product Award
Kitchen and Bath Ideas
Must-Have Gadgets TIME Magazine
These awards clearly indicate the success of the product in the international market, however if the
marketing plan is executed properly in Pakistan it will be preferred by most of the potential customers in
the market.
The product will reach to its maturity stage and there are also chances of up gradation of the product or
improvement or installation of some extra part like LCDs in the product that will create expansion of
product in the market. Hence we can say that the product will be used as a base product in the market to
bring innovation and differentiation in the market.
Financial Projection:
Egyptian Market: Penetrate the Egyptian market (private hospitals: from 4-6 by year 2017)
Gulf Market: Penetrate the Gulf market (private medical center: from 2 by year 2017)
African Market: Penetrate a private or governmental hospital (from 1-2 by year 2017)
Number of Sales Expected in the first year

Hospital Application(Egypt) Medical Center Application(Gulf)
Hospital Application(Africa) Medical Center Application(Egypt)
2 2
1 1 1 1 1 1
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Second Phase (From 2018 to 2019):

Egyptian Market: Gain a good market share in the private hospitals: from 6-8 by year 2019
Penetrate the governmental hospital sector by 2 hospital by year 2019
Gulf Market: Gain more market share in private medical center: from 2-3 by year 2018
African Market: Gain more market share from the private or governmental hospital (from 1-2 by year
2019)
Third Phase (From 2020 to 2021):
Egyptian Market: Gain more market share in the private sector hospitals: from 8-12 by year 2021
Gulf Market: Gain a good market share in the (private medical center: from 2-3 by year 2021)
Penetrate a private hospital by 2 hospital by year 2021
African Market: Gain more market share from the private or governmental hospital (from 1-2 by year
2021)
Fourth Phase (2021 & more):
Egyptian Market: Gain more market share in the private hospitals: at least 4 hospitals yearly
Increase market share in the governmental hospitals: at least 1 hospital yearly
Gulf Market: Gain more market share in the private medical center at least 2 yearly
Increase market share in the private hospitals: at least 1 hospital yearly
African Market: At least 2 sale per year
Optimum Solution Market Share Expectation Next 5

Years In Egypt
14
12 12
10 10
8 8
6 6
4 4
2
0 0
2016 2017 2018 2019 2020 2021
Optimum Solution Market Share Expectation Next 5 Years

In Middle East & Africa
6 6
5
4 4
3 3
2
0 0
2016 2017 2018 2019 2020 2021
Distribution Strategy:
LG has a strategic coalition with PEL to use its distribution network. This effort will create a strategic fit
of availability and visibility of the product at different markets. PEL has a strong network country wide
and now LG can take benefit of that. However in the initial Phase product will be available at selected
outlets like at Abid Market, Defence commercial Market etc as we catering the demand of Lahore only in
its initial phase of launching.
There are approximately 2500 distributors available to LG countrywide. Hence LG has great opportunity
to efficiently and effectively utilize this huge network. As the product is targeting the demand of niche
therefore not all but some of them will be used for the distribution of the products. Distributors in those
markets where elite class usually do their shopping will be locations of our product.
6.3 Place
One part of Sonys place strategy is to be the last one to release its refrigerators on the market.
Sony has pursued this strategy already with its previous products like play stations & other
products and it ensures that the product will be the product with the newest technology on the
market. Furthermore, Sony offers only a limited quantity of products at the beginning of its
rollout. This is a really powerful marketing tool, because it ensures that early adopters really want
to have the product. Following such an approach, such people stand in lines for hours in front of
shops just to get one exemplar of the new refrigerators. It is important to convince and get early
adopters, because the long-term success of a new product can be based on how those feel about it.
A limited of products creates a passion to get one and it results in communication about the
product. Early adopters speak about the product and promote it. They write about the product in
blogs, create web-sites and connect the product to others in a way that other people will follow.
PLACE: Samsung is present through various channels in the market. It works on the channel
marketing concept wherein there are three segments. Sales and service dealers, Modern retail and
Distributors. The sales and service dealers handle key accounts for Samsung and are involved in
corporate sales. These dealers may also open exclusive Samsung showrooms. The Modern retail segment
includes large retailers like Croma, Hypercity, Vijay sales, Viveks and any others who are present in the
modern electronic retail chain. Samsung being such a branded product, the retailers are bound to keep
Samsung as an alternative for their customers.
The Samsung Brand shop network complements the over 8500 retail points for Samsung products located
across the length and breadth of the country. Samsung plans to continue enhancing its penetration levels
in the country to reach out to more and more Indian consumers
PROMOTION: Samsung uses multiple forms of promotions. Samsung as a company believes

in pulling the customer to themselves through advertising but at the same time uses strong tactics to push
the product to the customer through sales promotions. Thus on one hand, Samsung uses various
marketing vehicles across the year covering festive season as well as non-festive time. On the other hand,
it gives many offers and discounts to its trade partners to motivate them to sell Samsung above
competition. With such a strategy, Samsungs brand is on the rise so that both, the pull as well as push
strategy is working simultaneously in Samsung.
Promotion Strategy
LG will enter new product market with very attractive strategy. They are already investing very high
amount in promotion i.e approximately 6-7 % of their revenue. Total budget of LG for promotional
activities is approximately Rs. 300,000,000. Usually the sales promotion budget and their allocation are
described by LG Korea. To launch this product we need a very heavy budget for its advertisement.
Advertising
Approximately 80 % of the promotion budget will be used for the advertisement of the product.
Electronic Media:
Out of total advertisement budget approximately 25% of the budget will be allocated to the electronic
media like GEO news and local cable network of specific areas.
Outdoor Media:
Out of advertisement budget approximately 40% will be allocated for the outdoor advertisement. Bill
boards should be installed at major round about areas. Like in Lahore it should be installed near liberty
choke, cavalry ground etc.
Print Media:
35% of the advertisement budget should be allocated to the print media. These will include advertisement
on top line newspapers like Dawn and high end magazines. Moreover, pamphlets will be published with
the material containing benefits and usage of the product.
Direct Marketing:
20% of total budget should be allocated to direct marketing. Dealers will be a major tool for the sale of
our product as they have influence on buying decision of the consumer. They should be educated
completely about our product. They must know all the specification, benefits and features of our product.
6.2 Price
Sony's value technique is adjusted to its item. Because of the reality, that the Sony coolers offers
the best innovation and an a lot of functionalities, the cost for it is more costly as the
result of its rivals. By and by, Sony's high cost is a character for its high item
quality and the organization needs to broadcast its high cost together with its high innovation.
Moreover, Sony tries to adjust its cost to the specific environment and area.
Moreover, Sony seeks after a forming value strategy. As per Shapiro and Varian, it
includes offering a product offering and let clients pick the rendition of the item generally suitable
them.
Purchasers can choose in the event that they need to pay a higher cost for the premium version
with
some additional elements, or lean toward a lower cost with less additional elements.
Furthermore, Sony needs to permit credits to its significant retailers and to offer rebates as
indicated by
the amount of offers.
Cost
A skim-valuing system will be utilized for the Digi-Fridge.
The Digi-Fridge will be sold at a base cost of $5,000 with no customization choices. The
value represents:
The joined tablet.
The cost of application improvement.
The cost of refrigeration and cooler compartment parts.

The cost of scanner tag filtering innovation.
With customization alternatives, the Digi-Fridge's cost will fluctuate
A Custom shading will include $250.
A custom realistic will include $250.
Customizing the item's measurements will include $500.
A 10-inch screen (rather than the 8-inch standard) will include $250.
Pricing Strategy
To launch a new product the most suitable pricing strategy is skimming pricing policy. So we will
earn money from early adopters at initial stage. The product will be available in the market at a
price ranging from Rs. 250,000 to Rs. 300,000. The product will be available at outlets at same or
uniform price level. The product has brought benefit to customers through innovation so it will be
charged at premium price. The refrigerator will fall in categories like Prestige goods and product
innovation. So the value proposition of the refrigerator is high. The product will be available in the
whole country at the same price whereas outbound cost of the refrigerator from LG to distributor
or retail outlet will be beard by LG making LG enable to implement a uniform pricing policy for all
the dealers irrespective of whether they are big or small through out the country
6.2 Price
Sonys price strategy is adapted to its product. Due to the fact, that the Sony refrigerators offers
the best technology and a plenty of functionalities, the price for it is more expensive as the
product of its competitors. Nevertheless, Sonys high price is a character for its high product
quality and the company has to proclaim its high price together with its high technology.
Furthermore, Sony tries to adapt its price to the particular environment and region.
Furthermore, Sony pursues a versioning price policy. According to Shapiro and Varian, it
involves offering a product line and let users choose the version of the product most appropriate
them.
5
Consumers can decide if they want to pay a higher price for the premium edition with
some extra features, or prefer a lower price with fewer extra features.
Additionally, Sony has to allow credits to its major retailers and to offer discounts according to
the quantity of sales.
Price
A skim-pricing strategy will be used for the Digi-Fridge.
The Digi-Fridge will be sold at a base price of $5,000 with no customization options. The price
accounts for:
The incorporated tablet.

The cost of app development.
The cost of refrigeration and freezer compartment parts.
The cost of barcode scanning technology.
With customization options, the Digi-Fridges price will vary
A Custom color will add $250.
A custom graphic will add $250.
Customizing the products dimensions will add $500.
A 10-inch screen (as opposed to the 8-inch standard) will add $250.
Product Strategy
LG is striving to gain market leadership position so they will bring new and innovative products in the
market. To gain market leadership they are introducing different ranges of refrigerators to cater the
demand of major classes of the market.
LG has product differentiation strategy in the market. Hence they are bringing different products to the
market. This Quadoor refrigerator is also the part of LGs competitive strategy. The product has four
different temperature controllable compartments. The product is modern side by side type refrigerator
with water dispenser.
6.1 Product
Sonys product strategy is to deliver the best quality and technology. Therefore, the Sony
Refrigerator supports features such as Frost Free, 2 door bottom freezer, Refrigerant 134a,
Twin Bio attacker, Triple Ice tray, Premium look and Design, Quiet and more reliable
Compressor etc.. Sony has to spend a lot of money in innovation and R&D to use all resources
which are included in its refrigerators. For instance, the company has to focus on the
development of bottom freezer to take advantage of the fact that this new technology is possible
with their refrigerators. Moreover, Sonys multimedia functionality is another characteristic to
meet the needs of its customers.
Marketing Mix
Marketing mix of our plan is the combination of different strategies to be used like product, price, place
and promotion. The combinations of these Ps that we will use is as follows
Pricing Strategy
To launch a new product the most suitable pricing strategy is skimming pricing policy. So we will earn
money from early adopters at initial stage. The product will be available in the market at a price ranging
from Rs. 250,000 to Rs. 300,000. The product will be available at outlets at same or uniform price level.
The product has brought benefit to customers through innovation so it will be charged at premium price.
The refrigerator will fall in categories like Prestige goods and product innovation. So the value
proposition of the refrigerator is high. The product will be available in the whole country at the same
price whereas outbound cost of the refrigerator from LG to distributor or retail outlet will be beard by LG
making LG enable to implement a uniform pricing policy for all the dealers irrespective of whether they
are big or small through out the country.
Promotion Strategy
LG will enter new product market with very attractive strategy. They are already investing very high
amount in promotion i.e approximately 6-7 % of their revenue. Total budget of LG for promotional
activities is approximately Rs. 300,000,000. Usually the sales promotion budget and their allocation are
described by LG Korea. To launch this product we need a very heavy budget for its advertisement.
Advertising
Approximately 80 % of the promotion budget will be used for the advertisement of the product.
Electronic Media:
Out of total advertisement budget approximately 25% of the budget will be allocated to the electronic
media like GEO news and local cable network of specific areas.
Outdoor Media:
Out of advertisement budget approximately 40% will be allocated for the outdoor advertisement. Bill
boards should be installed at major round about areas. Like in Lahore it should be installed near liberty
choke, cavalry ground etc.
Print Media:
35% of the advertisement budget should be allocated to the print media. These will include advertisement
on top line newspapers like Dawn and high end magazines. Moreover, pamphlets will be published with
the material containing benefits and usage of the product.
Direct Marketing:
20% of total budget should be allocated to direct marketing. Dealers will be a major tool for the sale of
our product as they have influence on buying decision of the consumer. They should be educated
completely about our product. They must know all the specification, benefits and features of our product.
Distribution Strategy:
LG has a strategic coalition with PEL to use its distribution network. This effort will create a strategic fit
of availability and visibility of the product at different markets. PEL has a strong network country wide
and now LG can take benefit of that. However in the initial Phase product will be available at selected
outlets like at Abid Market, Defence commercial Market etc as we catering the demand of Lahore only in
its initial phase of launching.
There are approximately 2500 distributors available to LG countrywide. Hence LG has great opportunity
to efficiently and effectively utilize this huge network. As the product is targeting the demand of niche
therefore not all but some of them will be used for the distribution of the products. Distributors in those
markets where elite class usually do their shopping will be locations of our product.
Three Year Marketing Plan of the Product:

Year 1: We will launch our product in Lahore only.
Year 2: We will launch our product in Karachi, Islamabad and Peshawar.
Year 3: Will launch our product to other major cities of the country and introduce some more features to
the products like LCD TV if necessary.
Future Outlook of Quadoor Cooling System:
Quadoor cooling refrigerator is being launch in Pakistan for the first time. The refrigerator has been
launched in the international market where the product is gaining very good market share in side by side
refrigerator category. The concept has also successfully earned many international awards. Some of them
are as follows:
Highest in Customer Satisfaction 2005 & 2006 J.D. Power & Associates
Good Buy Awards Good Housekeeping
Best of Innovations 2006 International CES

Innovative Award - EETimes2006
American Building Product Award
Kitchen and Bath Ideas
Must-Have Gadgets TIME Magazine
These awards clearly indicate the success of the product in the international market, however if the
marketing plan is executed properly in Pakistan it will be preferred by most of the potential customers in
the market.
The product will reach to its maturity stage and there are also chances of up gradation of the product or
improvement or installation of some extra part like LCDs in the product that will create expansion of
product in the market. Hence we can say that the product will be used as a base product in the market to
bring innovation and differentiation in the market.
Positioning:
LG is a brand with the image of most innovative manufacturer of electronics in the world. The products
are positioned in the minds of its customers as premium products.
LG has a positioning statement of Lifes Good which represents LG's determination to provide
delightfully smart products that will make their consumers life good.
Their slogan, 'Life's Good' best expresses their brand's values, promises, benefits and personality. It is an
ultimate expression for what their brand stands for and what they strive to deliver continuously
Market Positioning
The product is designed to fulfill the consumers need for a customizable appliance that fits their
specifications and the need for a more functional, time and energy-saving home appliance.
The core product is designed for the modern consumer.
The core product offers the tech savvy consumer a way to upgrade their home further.
The technology in the core product is efficient, saving the consumer money over time.
The actual product can be customized to suit the consumers preferences, a first in the industry.
Current competitors offer refrigerators that come with set sizes and features that may not
accurately reflect the customers needs.
Competitive Review
The Digi-Fridge has 3 major competitors in the refrigerator industry:
Samsung:
Position: A leader in the refrigerator industry with a high market share: consistent product
quality and a good track record make their products more attractive. They are not known
for their refrigerators though.
Strategy: Focus on marketing updated refrigerators that are modern and include unique
features.
Whirlpool:
Position: A well-known appliance manufacturer that has the highest market share in the
refrigerator industry. Their long history with making refrigerators that are high quality has
created a sense of trust among consumers.
Strategy: Create refrigerators that will appeal to a variety of segmented markets.
LG:
Position: A dominator of the refrigerator industry, with the second highest market share:
fair prices and proven product quality create consumer confidence.
Strategy: Launch an aggressive marketing campaign that highlights their introduction of
new refrigerators that are more convenient for the customer.
Reasons for marketing plan:
The reason for the formation of this marketing plan is that we are launching a new and specialized
product in the market. As the product is new so we have to change consumer behavior as well as position
our product as premium product in the mind of consumers who are health conscious. Moreover that we
need to make marketing strategies to successfully launch our new product in the market. This report
provides a detailed analysis of refrigerator industry, targeting, positioning, competitors, price and product
strategies.
Target Markets:
Before we select a target market we need to identify potential segments that are available to launch our
product.
Identifying the Segment:
There are several bases to identify the segments for a product but we will select our segment on the basis
of
Geographic
Demographics
Behaviouralistic
Segmentation from Geographic:

From geographic segmentation we have selected region to select our segment. Initially we will take elite
class of Lahore. The area that we will cater is Defence, Gulberg, Model Town, Behria Town, Johar
Town etc . After successful launch of refrigerator in Lahore we will launch it in major cities of Lahore
like Karachi, Islamabad, and Rawalpindi etc.
Segmentation from Demographics (Income Level):
Second base we have selected for our segmentation is Demographic Segmentation where we will create
segment on the base of income level. As our target market is elite class of Lahore so our segment will be
consumers with high income levels.
Segmentation from Behavioralistic approach:

The third base that we have selected is Behavioralistic segmentation approach. And in this part we will
select a segment on the behavior of buyer like benefit sought by the customer like quality of the product,
look of the product etc.
Market Description
Target market traits for the Digi-Fridge:
Demographic traits:
Upper middle class to upper class.
30-50 years old.
Geographic trait:
Located in the United States (not region-specific).
Psychographic traits:
Tech-savvy.
Interested in saving time and being efficient.
On-the-go lifestyles.
Target Segment Customer Need Corresponding

Feature/Benefit
30-50 year old upper middle Organization and efficiency. Convenience, customizable,
to class-upper class. easy to use.
Those with an on-the-go Time saving appliance. Efficient.

lifestyle.
Tech-savvy individuals. Newest technology. Improved technology.
Main target market: 30-50 year old, upper-middle class to upper class individuals.
Market gap being filled: The ability to customize a refrigerator to the consumers specifications.
CUSTOMER ANALYSIS: The first and foremost reason why the company operates is to earn
profit and the way they can earn profit is through customers. Their ultimate aim at the end of the
day is to either create or gain customers and keep them until they are profitable to the company.
To do that the companies try to produce the products or offerings that people want and value
them at prices that are more attractive than the competiton.
Samsung mainly operates in the upper and middle segment of Socio- economic classification of
the customers which includes the upper class and middle class.
In the recent years Samsung has come up with different variants in the Direct cool refrigerators,
Forst free referigerator, Side by side, French Door for the Upper middle class and upper class
section people.
Threat from substitute products/services: The domestic consumer durables industry is

plagued by threats from substitute products. Easy accessibility to theatres/multiplexes,
especially in urban areas has turned off the viewership from TV to a large extent.
Following factors are considered to be the major opportunities for the company
Growth in population:
Growth in population is always a big opportunity for firms to enhance their product lines and capacity
as this increase demand accordingly.
Availability of consumer financing:

Availability of Consumer Financing increased the buying power of customers and this trend proved
to be a big opportunity for the firms to offer valuable products at an extra prices.
Customer needs:
As there are always product development opportunities for the firms to develop their products in such
a way to maximize the product utility and to provide the more benefits to customers.
New technology:
New Technology is proved to be a big driver for the new product development and development of
existing products. So, new technological trends always provide ultimate opportunities to the firms to
develop their products in a new way.
Potential to capture additional market share:

Firms can capture additional market share through diversification strategies, as LG is most diversified
company has a large diversified product lines.
1. Management: Due to its extensive presence in the white & brown goods market
they are not able to focus on every single product category properly due to which
they are losing their market share in several products like T.V, Refrigerator etc.
2. No Cash cows Samsung has amazing brand equity due to its smart phones
and smart TVs. Similarly, most brands have a super hit product which is a cash
cow. However, in LG, there is hardly any product which is a cash cow for them.
Currently there are no big weaknesses of LG in the Local Market and LG is doing at its best in the market
in order to sustain in the local market and proving to be a revolutionary leadership capability through
continuous development in its product lines.
Dependant Distribution Network:
LG has not its own independent Distribution network and have strategic alliance with PEL and using
the distribution channel of Pak Elektron to market its electrical appliances products.
Target Markets:
LG is focusing on upper middle class and elite class only in its refrigerator market and not focusing
on middle class of the population thats why it cannot gain the maximum market share than other
competitors and not market leader at the instance.
Internal Factors Potential Strength Potential Weakness

Management High experience in managing The absence of reserve managers
software companies
Marketing Excellent marketing plan focus on Difficulty of expansion outside
Cairo, Giza & Alex the main and Egypt in the first 2 years until the
biggest cities. The plan also products fulfill the African and
included how to penetrate the Middle East requirements
African and Middle East markets.
Flexibility in pricing system
makes the difference from the
competitors.
Sales Professional sales manager in Low numbers of sales
selling software applications representatives with weak
specially HMIS & ERP. experience
Difficult sale for the governmental
sector as a result of weak relation
with Ministry Of Communication IT
department (Healthcare sector)
Personnel Excellent staff loyalty so the Important employees may be leaves
company dont suffer high the company.
turnover
Finance The Company capital is good Budget not fulfill all the marketing
specially the Marketing budget needs

Development The company employs a Key developers may leave the
technologically qualified staff; company
their capabilities fulfill the
Egyptian, Africa and Middle East
markets needs.
High experience in software
development lifecycle process.
R&D Board consultants provide the Consultants are not permanent
knowledge for how the company employees so they may provide the
could be one of the pioneers. competitors with the same
consultation.
Lack of healthcare consultants in
International Standards ICD10, HL7,
CPT4
Customer Support Unique customer support policy Need more employees in this
by implementing loyalty system department
Growth Strategy Clear roadmap for the company The growth strategy depends on the
strategy growth existence of the CEO
Next, Segmentation, Targeting and Positioning will be analyzed.

Later on, Marketing Mix Strategies consist of Product, price, Place and Promotion are also investigated
deeply.
Next, the several objectives have been set to fit with Vietnams smart phone industry.
Last but not least, all parts of the marketing plan will be discussed in recommendation part.
The research team hopes these effectives researches can help iPhone 4S will be dominated in Vietnam.
Secondly, marketing environment will be clarified through microenvironment and macro-environment to

know iPhone 4S is suitable for Vietnamese people and Vietnam country.
Thirdly, SWOT Analysis has been applied to know clearly about iPhone 4S attitude (inside) and Vietnam
attitude (outside). Several Strengths, Weaknesses, Opportunities and Threats have been pointed out for
the reader to know exactly the characteristics of iPhone and situation of Vietnam.
Firstly, the exploration group will present the circumstance of the iPhone 4S in Vietnam. This part will
specify about the organization portrayal (history, business execution, values and so forth.) and item
depiction (outline, capacities, highlights and so forth.)
This marketing plan will analyze several parts of iPhone 4S, which is the most useful smart phone in the
world in order to bring more successful to Apple Inc. in Vietnam.
Firstly, the research team will introduce the situation of the iPhone 4S in Vietnam. This part will mention
about the company description (history, business performance, values etc.) and product description
(design, functions, features etc.)
Secondly, marketing environment will be clarified through microenvironment and macro-environment to

know iPhone 4S is suitable for Vietnamese people and Vietnam country.
Thirdly, SWOT Analysis has been applied to know clearly about iPhone 4S attitude (inside) and Vietnam
attitude (outside). Several Strengths, Weaknesses, Opportunities and Threats have been pointed out for
the reader to know exactly the characteristics of iPhone and situation of Vietnam.
Next, Segmentation, Targeting and Positioning will be analyzed.
Later on, Marketing Mix Strategies consist of Product, price, Place and Promotion are also investigated
deeply.
Next, the several objectives have been set to fit with Vietnams smart phone industry.
Last but not least, all parts of the marketing plan will be discussed in recommendation part.
The research team hopes these effectives researches can help iPhone 4S will be dominated in Vietnam.
Introduction
Apples iPhone 4S has been chosen for this marketing plan because it is an advanced,
innovative and inspiring product, which is focusedin Vietnams smartphone market.
Moreover, it is also really useful and could help its users daily life become more exciting and
interesting. However, there are many challenges for the iPhone 4S to reach its best sales
potential in Vietnam. To illustrate, competitors are growing like mushrooms. Additionally, the
Vietnamese economy and psychological aspects cause several disadvantages to iPhone 4S
itself. Therefore,this marketing plan is created in order to overcome the obstacles that iPhone
4S has to face and help it become the most successful smartphone in Vietnam.
Situation Analysis
COMPANY DESCRIPTION
Apple is a multinational corporation, which operates in computer hardware, software and
electronic devices. Apple is famous for being creative and making great changes in the
computer and electronics industry.
Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on April 1st, 1976.
However, Steve Jobs left Apple in 1985 after an internal dispute with other leaders of the
company. Apple had experienced many problems since then until 1997, when Steve Jobs
returned to be the CEO of Apple. Since 1997, Steve Jobs has created a revolution in the
computer and electronics industry with many famous Apples product lines like the iPod,
iMac, iPhone, and iPad. Since 2011, Tim Cook succeeded Steve Job and became the next
CEO of Apple.
Apple is a truly successful company, they targets to creativity, innovation, difference, and
changes in all products. Its value is about $500 billions and it was ranked the 35th largest
American company in Fortune 500 in 2011.
Apple entered Vietnam in 2007 and has achieved a great success and popularity.
Moreover, Apple Inc. has planned to penetrate deeper in Vietnams smart phone industry.
In 2012, it was announced that Apple has made FPT, a large Vietnamese information
technology company, to be its official partner in Vietnam.
PRODUCT DESCRIPTION
The iPhone 4S was first released in 2011 with new and more advanced features compared
to previous iPhone generations. For example, they include the new iSight camera, the
intelligent assistant Siri, the cloud storage and computing service iCloud, new and faster
dual-core A5 chip, and the new operating system iOS 5. The iPhone 4S is also well
designed and has high quality. Apple has claimed that the iPhone 4S is the most amazing
iPhone ever.
In Vietnam, Apple sells iPhone 4S unlocked and contract-free versions with much higher
price. Vinaphone and Viettel have been chosen as the official resellers of Apples iPhone
4S. The iPhone 4S has been fairly successful in Vietnam. However, it has to face many
strong competitors, which are the Samsung Galaxy, BlackBerry, Nokia, and so on.
Micro Environment
Company
TOP MANAGEMENT
Currently, Apples top leader is CEO Tim Cook. He has held the position of Apples CEO
since August 2011. He has much experience in managing Apples supply chain, sales, service
and reseller (Apple Press Info, 2012)
The change of Apples CEO from Steve Jobs to Tim Cook has several negative effects on the
company image because The Apples icon was Steve Jobs.
FINANCE
Apples current stock price is $603 per stock with approximately 14,428,200 stocks in the
market (Investor Relations, 2012). Furthermore, its revenue by September 2011 is about
$108,249,000,000 and the Operating Income is around $25,922,000,000 for all products of
Apple (Apple Inc (NASDAQ: AAPL) Income Statement, 2012). Therefore, the financial
situation of Apple in general and iPhone in specific is really strong.
R&D
Apple certainly has created many innovative and inspiring products. Its products have
consisted of the latest iPhone and it is 4S version. This smart phone uses a numerous high-
end technologies and advanced design, which has been developed through the companys
research and development activities.
However, Krantz (2012) stated that Apples expenditure for its R&D is much lower to
compare with its competitors. For example, Apple is only the 18th in R&D spending, only
$2.6 billion for the past year. Furthermore, Apples spending on R&D only represent 2% of
its overall revenue. This requires Apple to focus only on truly innovative ideas and encourage
the creative mindset among Apples employees.
Suppliers
Apple has over 150 suppliers worldwide. They supply Apple with raw material, labors, and
manufacturing globally.
Apple has a policy for its suppliers that require high social responsibilities (Supplier
Responsibility at Apple, n.d.). For instance, Apple Company emphasizes on the safe and
healthy working conditions, as well as enforcing Labor and Human Rights in its suppliers
activities.
However, there were reports of Labor and Human Rights violation by Apples suppliers. For
instance, according to Duhigg and Barboza (2012), Foxconns Apple products factories in
China, which include cases of excessive working hours, dangerous working environment,
and labors accidents. Hence, this has affected negatively Apples reputation.
Marketing Intermediaries
RESELLERS
Apple has resellers worldwide. There are two types of Apple resellers, Apple Premium
Reseller and Apple Authorized Reseller (Find a reseller, n.d.). To illustrate, Apple
Premium Reseller shops are well designed with trained staff and only sell Apple products
whilst Apple Authorized Resellers are given permission to sell one or some Apple products
while doing other business. The resellers help Apple sell its products. Therefore, choosing
the right resellers is one of Apples most important concerns.
In Vietnam, according to Apple Premium Reseller (n.d.), Apple only has resellers in
Hanoi and Ho Chi Minh City. There are four Apple Premium Resellers in Ho Chi Minh City
(3 Future World stores and iCenter) and only one in Hanoi (Future World).
PHYSICAL DISTRIBUTION FIRMS

Apple directly does the physical distribution to its retailers and resellers by itself. However,
for online purchase of Apples products, FedEx is Apples partner and both companies work
together to distribute Apples products to customers who order online.
MARKETING SERVICES AGENCIES

Apple has hired several external marketing services agencies to create its marketing
campaigns. However, Apple also works closely with the marketing agencies and sometimes
involves directly in the marketing process. One of the most important marketing agencies
for Apple is the TBA Worldwide. To define, TBA Worldwide is the company that did
Apples Think different and Get a Mac campaigns.
The marketing services agencies help Apple build its image as well as making Apples
products appealing to the customers and increase sales.
FINANCIAL INTERMEDIARIES
Apple uses various banks and financial organizations in the U.S to manage its finance and
online transaction. One of the biggest financial intermediaries is Bank of America (Payment
and Pricing, n.d.).
Customers
CUSTOMER MARKETS
Apple has a large proportion of customers who purchase its products for personal uses in the
globe. Apples policy for this market includes technical supports, Apple Store registrations,
and feedbacks. These things make its customers feel as they are connected to the company and
the company takes care against to them.
BUSINESS MARKETS
Apple originally did not focus on the business markets. However, especially since Tim Cook
replaced Steve Jobs as CEO, Apple is starting to change and pay more attention to sell its
products to business customers. Therefore, Apple is adding more features for business uses
and directly attracting businesses to equip Apples products for their employees.
RESELLER MARKETS
Apple has different programs and contracts for different types of reseller such as Apple
Premium Resellers and Apple Authorized Resellers. Through this policy, Apple can attract
different resellers with different interests worldwide.
GOVERNMENT MARKETS
Apple offers Apple Store for Government to the government markets (Apple Store for
Government, n.d.). For instance, Government can purchase Apples products for its
employees and public services with a special price and some other privileges.
INTERNATIONAL MARKETS
Apple has also focused on the international markets with its effort to establish resellers and
Apple Store in many countries worldwide.
Competitors
Apple has many competitors such as Samsung, Nokia, RIM, and so on. One of Apples
advantages against these competitors is Apple is the leader in sliding technology. Moreover,
Apple has enough resources to compete with other companies. The best advantage that Apple has
is its image as one of the most innovative companies.
Publics
FINANCIAL PUBLICS
As a big corporation, Apples main financial publics is its shareholders
MEDIA PUBLICS
The media has a big impact on Apples image. As one of the most well known company in the
world, any negative news about Apple would be widely and quickly cover by all kind of
media worldwide.
GOVERNMENT PUBLICS
Being based on the U.S, the American government is the most important government public
for Apple. However, Apple is also a multinational corporation and needs to be flexible to
follow the changes in local governments of different countries.
CITIZEN-ACTION PUBLICS
Apple has been receiving criticism from different consumer organizations and environmental
groups due to the working condition of labors in Apples factories and the environmental
unfriendly components in Apples products.
GENERAL PUBLICS
To Apple, general publics perception of the companys image is truly important, especially
since Apple has spent much effort in building its images as one of the most innovative
corporations in the world.
INTERNAL PUBLICS
Apple has created an inspiring working environment for its employees. The company focuses
on and encourages the creativity of its employees as well as asks them to continuously seeking
new and better solutions for their works. This has helped Apple to become more and more
innovative.
Macro Environment
Besides the internal impacts of microenvironment, Apple Inc. is also under the influence of many
external factors, namely demographic, an economy, natural, technological, political and cultural
environment.
Demographic Environment
Vietnam has a population of over 91 million and is considered the 14th populous country in the
world (East & Southeast Asia: Viet Nam, 2012). Thus, it holds the possibility of becoming a large
market for product consumption.
CHANGING AGE STRUCTURE OF THE POPULATION: Jones (2000) stated that the
Governments Two-child Policy was applied at Vietnam in the 1990s. As a result, Vietnam
experiences a low birth rate. For example, children in the age group of 0 14 is less than
before. Furthermore, the generations which is in the range of 15 to 40 is increased. Moreover,
the generation Y (1997 up to now) is high technological generation (Kolter et.al. 2009).
Hence, the professional labor force will be increased in the near future (Appendix 1).
CHANGING HOUSEHOLD PATTERNS: Currently, Vietnamese society has a huge

change in the household systems. The evidence is that more women choose not to marry in
favor of their career paths. Furthermore, women also do not have to rely on men to be
financially supported, so they choose to work instead of rely on others. As a result, women
becoming more independent, and accepting challenges than the old days.
GEOGRAPHIC SHIFTS IN POPULATION: With a huge labor force, Vietnam suffered

from an uneven population density. More people move from the rural to urban areas for jobs.
Furthermore, many international companies come to Vietnam to invest, expand and compete
in the market. As a result, migrations occurred from other countries to Vietnam for business,
either permanent or temporary.
CHANGES IN THE WORKFORCE: At the present, people tend to study more than before.
To illustrate, employees often compete against each other in the work area so they aim to
study not only Bachelor, but also Master and Doctor Certificate. Besides that, studying
abroad makes people more open-minded. As a result, the young generations become less
antiquated.
To conclude, the huge educated labor force (including women) in the age of 15 to 40 provides for
the company both potential customers and employees.
Economic Environment
Vietnam is a developing country and is on the way to become developed. However, during the
process, Vietnam has faced some tough challenges such as the Global Financial Crisis in 2008 and
the unexpected inflation (Vietnam's inflation rate rises to 23%, 2011)
CHANGES IN INCOME: in 1990s, the Government policy is opened-market. As a result,

more foreign companies came and invested in Vietnam, increasing the Foreign Direct
Investment (FDI) rate by 11.3% from 1991 to 1993 (Collins, 2009) (Appendix 3). They
created job for citizens so the poverty rate declined dramatically (Appendix 2). The
percentage of population below the international poverty line accounted for 14.5% (East &
Southeast Asia: Viet Nam, 2012). Besides that, income distribution has turned into 4 classes:
Upper-class, Middle-class, Working-class and Underclass. This economic growth encourages

consumers for luxurious products, in both the quality and design interface, from the middle-
class to upper-class of Vietnam (Le, 2007). Thus, iPhone 4S would be more than welcome in
this period.
CHANGES IN CONSUMER SPENDING PATTERNS: When Vietnam opened and joined

the worlds market, there is a huge change in the consumer spending patterns. Since 1990s,
the living standards improved, peoples income increased, and their demands on food
decreased while other products were greatly consumed based on Engels Law (Kolter
et.al.2009). As a result, people spent more on normal goods in terms of great design and
quality. However, the Global Financial Crisis occurred in 2008 and caused many impacts on
the global market in general. Vietnamese market also is influenced. Products price increased
steadily again. Despite that, it is not influence on the smart phone industry to which iPhone
belongs. People still continued to purchase iPhone 4S due to its excellent performance.
Natural Environment
The raw material to produce iPhone is electronics, plastics and so on. However, the Government
legislation is very strict on plastics due to pollution and other raw material is usually unavailable in
Vietnam. Therefore, Apple Company might not be able to produce iPhone within Vietnam easily.
Technological Environment
Technological level is not as high as some countries in Asia, such as Singapore, China and Japan
due to Vietnam is a developing country. Vietnam still relies on the imported advanced
technological devices from other developed countries, and is in need of professional engineers and
mechanics. However, at present, the younger generations become accustomed more and more to the
Internet and technologies. This provides plenty of opportunities to Apple Inc. in the market. With
the increasing number of users in the Internet and other devices such as computers, laptops or
mobile phones, iPhone 4S is guaranteed to be accepted easily in the market, considering smart
phone is a rapid growing market in Vietnam (Appendix 4 & 5)
Political Environment
Each country is bound by its own laws and regulations. When Apple Inc. considers starting their
business in Vietnam, they should take into account the Vietnamese business laws and government
policies. Furthermore, laws and legislations always are up-to-date to protect the companies and
consumers, to protect the interest of the society and to control the business for the societys benefits
in general. These are the components that could leave great impact on Apple Inc.
INDUSTRY REGULATION: Vietnam has many restricted law for business so as to prevent
its dramatic growth taking over the marketplace. That is why Vietnamese Government adding
the Decree No. 25/2011/ND-CP (Decree 25) to the Law on Telecommunication after
witnessing a boom in the mobile phone market. However, in these new rules, which consist
of Mobile Phone Import Restrictions, it can have negative effects on iPhone. Luckily,
Vietnam has joined World Trade Organization (WTO) in 2006, the imported laws is not as
strict as before (General Council approves Viet Nams membership, 2006) (Appendix 6)
PIRACY REGULATION: Even though Vietnam has its own Intellectual Property Rights
and Anti-Piracy Legislation, they are not very effective yet. Violators of Copyright
Legislation are stated to be punished from paying fines of millions VND to years of
imprisonment, but the management in these section is still very loose. One of the reasons is
that people do not care about this matter. For instance, it does not surprise them if there are
two identical business store in their neighborhood, with similar names or products (Vierra,
2010).
Cultural Environment
A societys perceptions and behaviors have always been the key to determine various things
existing inside that society. If a product is not accepted by the majority of people, it is wiped out of
the market, and vice versa. Basically, iPhone has long been well-accepted by Vietnamese
community, so analyzing the Vietnamese cultures would enhance the success in launching iPhone
4S in Vietnam.
Vietnamese people in general prefer to use non-Vietnamese products. To illustrate, these products
have higher quality, more fashionable. Furthermore, the service quality and warranty of non-
Vietnamese products is also better than Vietnamese products (Mt xi hang ngoi chnh hiu
ca ch em, 2010). Besides that, if 1 brand name has been using mostly in the world, Vietnamese
people are willing to use it to capture the trend of society. Thus, it is clear that iPhone 4S is easily
to launch into smart phone industry in Vietnam.
SWOT Analysis
STRENGTHS:
1. Antenna improvement by changing the position of death grip bar (Rawson, 2011 and Viticci,
2011).(Appendix 7)
2. Quieter vibration motor (Rawson 2011) (Appendix 8)
3. Image, audio and video quality are much better (Apple, 2012)(Appendix 9)
4. Siri application is the significant feature, which first appears in iPhone 4S. (Apple Inc., 2012)
(Apple, 2012 and Viticci, 2011) (Appendix 10)
5. International warranty policy is applied by iPhone (Dahlquist, 2010) (Appendix 11)
WEAKNESSES:
1. Battery life is still very short to compare with the previous version (Sung, 2011) (Appendix 12)
2. IPhone series only support for microSIM card (Apple, 2012) (Appendix 13)
3. IPhone 4S does not support FM radio and stereo speakers (Disadvantages of iPhone 4S, 2011)
(Appendix 14)
4. Siri application has several errors (Appendix 15)
5. IPhone 4S cannot play videos, applications or websites that were built on Flash (Disadvantages of
iPhone 4S, 2011) (Appendix 16)
6. Internal heat of iPhone can damage microSIM card (Holmes et.al., 2012)
7. The price of the iPhone 4S is quite expensive due to the latest version (More details in Price part).
OPPORTUNITIES:
1. The life quality of Vietnamese people has been developing (Appendix 17)
2. Vietnam has been a member of World Trade Organization (WTO) in 7 November 2006 (General
Council approves Viet Nams membership, 2006)
3. People often demand in high-tech devices due to the increase of white collar (Kolter et.al, 2009)
(Appendix 18)
4. Competitors such as Samsung,HTC, RIM and Nokia cannot emulate the sliding technology
completely.
THREATS:
1. IPhone 4S has several competitors such as Samsung, HTC, RIM and Nokia
2. Network in Vietnam is fluctuated (Appendix 19)
3. Low security and human awareness (Appendix 20)
4. Counterfeit products (including accessories) (Appendix 21)
SEGMENTATION, TARGETING AND POSITIONING
Market Segmentation
Segmentation Variables
Geographic Ho Chi Minh City and Ha Noi
Capital
Demographic Age: 15 - 40
Gender: both
Income: high
Psychographic Social class: Middle to Upper-class
Behavioral People who are willing to pay more
to gain more quality
Fashionable and professional people
Target Market
PROFILE OF TARGET MARKET
During the past years, Apple Inc. has never defined any market segmentation for iPhone.
Their target segmentation is different from other companies. They target customers in
general. They give the consumers the right to decide what iPhones usage is. (See Appendix
23)
TARGETING STRATEGY
Differentiated Marketing was applied on iPhones product line. With each version of iPhone
that is different in design interface and applications, Apple Inc. allows the consumers the
opportunities to choose which one they want to use. This method allows the producers to
achieve higher sales and stronger position.
Differentiation and Positioning

COMPETITIVE ADVANTAGES
Product Differentiation: iPhone 4S has a new distinct application that can communicate
with humans. Thus, iPhone 4S is far more superior to the other smartphones. In addition,
iPhone has always been a reliable product among the markets, so each new version carries on
them a distinct trait that others cannot copy.
Service Differentiation: The warranty of iPhone or Apple Inc. products in general is
available globally. No matter where one buys an iPhone for example, they could always bring
it to a store that operates iPhones selling and importing to be examined to see if they are
damaged.
Image Differentiation: Apple is a well-known brand in the international market for offering
high-quality products. When an item is branded as Apple, most people often choose it out of
various other goods beside it.
POSITIONING STRATEGY
As a matter of facts, Apple Inc. has always applied More for More strategy, providing
higher values to the customers at higher costs. iPhones product line is also not an exception.
This strategy might limit the company in others segments, but it allows the producer to focus
on analyzing only one target segment, and then improve the products accordingly.
POSITIONING MAPS
In the map above, it is clear that iPhone 4S was located on the upper-right of the map, along
with its strongest opponent, Samsung Galaxy. (See Appendix 22)
Despite the fierce competition existing in Vietnamese smartphone market, iPhone 4S still
remains as one of the best smartphones in this industry due to its overall competitive
advantages.
MARKETING MIX STRATEGIES
PRODUCT
PRODUCT CLASSIFICATION
According to Kolter et.al (2009), Apples iPhone 4S is a Consumer Product and is classified
as Specialty Product. To illustrate, Apples products have been seen as unique and desirable.
Furthermore, the customers are truly willing to purchase iPhone 4S due to high-end
electronic device and fashionable smart phone.
THREE LEVELS OF PRODUCT

Core benefits:
IPhone 4S definitely has the basic functions as same as all other phone such as calling, texting
and so on. Furthermore, iPhone also can capture images, record videos in High Definition and
other useful Applications.
Actual product:
The Brand Name of IPhone 4S is really famous in the
world. Furthermore, iPhone 4S has reached the standard
of quality in US. Besides that, several high
technological functions have been applied in iPhone 4S
(perfect sliding technology). Moreover, the great design
of iPhone 4S makes customer more professional and
fashionable. Finally, the package box of iPhone fit
exactly with iPhone 4S and its accessories.
Package box of iPhone 4S
Augmented product:
The iPhone 4S, like many other Apples products, has a Complimentary Support, which
provide technical support within the first 90 days after purchasing the product. The customer
who purchases the iPhone 4S also receives Apples One Year Limited Warranty. Finally, the
service center is available in the world.
BRANDING
Currently, iPhone 4S is the Apples smart phone brand. The iPhone brand is well known for
being innovative, technologically advanced and beautifully designed. It is also one of the most
famous smart phones in worldwide.
Brand equity: iPhone brand has been seen by its customers as high quality and innovative.
This leads to a strong customers loyalty toward the brand.
Brand name: the letter i in iPhone means Internet, individual, and I. The name creates
special personal feelings that the users have for iPhone. Its also easy to remember and
distinctive.
Brand sponsorship: manufacturers brand

Brand development: Apple has only used Line extension strategy to develop iPhone brand.
To illustrate, the iPhone brand is well known in the globe so Apple does not need to change.
PRICE
MARKET AND DEMAND
Type of market
IPhone 4S is in Monopolistic competition market. To illustrate, besides iPhone 4S< there are
several smart phone in the world such as Samsung Galaxy S2, Motorola Droid Bionic,
Blackberry Torch, Motorola Photon 4G,LG Thrill 4G and HTC Sensation (IPhone 5
Competitors, 2011).
Price elasticity of demand

Apples iPhone 4S has inelastic demand. This means that even if the price for an iPhone 4s
increased steadily, the demand will not change much. The reason is that iPhone 4S is a
specialty product that has high quality and attracts a large number of Apples loyal customers.
COMPANYS PRICING STRATEGIES

Current price
Unlocked and contract-free iPhone 4Ss price is $649 for 16GB version, $749 for 32GB
version, and $849 for 64GB version (Apple, 2012). The price is high because the Apple
Company has applied value-based pricing for their products.
New-product pricing strategies

Apple used Market Skimming Pricing for iPhone 4S. In other words, Apple initially sold
iPhone 4S with high prices. This strategy could have been done because of the high quality of
the products. Moreover, the large number of Apples customers who wanted to quickly obtain
the latest smart phone version. Furthermore, the brand name value is high.
Product-mix pricing strategies
Apple applies Product line pricing strategy for iPhone 4S. This means that Apple set different
prices for different capacity of iPhone 4S.
Price-adjustment strategies
Apple uses psychological pricing for iPhone 4S. In other words, customers will pay more
price for iPhone 4S if its quality and usability is pretty good to compare with its competitors
(Kolter et.al., 2009)
COMPETITORS PRICES AND PRICING STRATEGIES

Ionescu (2011) stated that Apples iPhone 4S has a few competitors from different companies
in the smart phone market such as Samsung (Galaxy S2), Motorola (Droid Bionic), Research
In Motion, HTC (Titan) and Blackberry (Torch). The competitors prices are around the same
as iPhone 4S due to they also applies an almost similar pricing strategy.
PLACE
MARKETING CHANNELS
Apple uses indirect marketing channel to sell iPhone 4S. The intermediaries are many
resellers worldwide. In Vietnam, Apple sells iPhone 4S through Vinaphone and Viettel
(Where to buy iPhone, n.d.).
CHANNEL ORGANIZATION
Apple implements Vertical Marketing System in a form of Contractual Marketing System.
Different smaller companies sign contracts with Apple to establish Apple Reseller shops to
sell Apples products.
MARKETING INTERMEDIARIES
Apple hires industrial distributors to establish Apple Premium Reseller stores and
manufacturers agencies for other Apple products selling locations. The iPhone 4S is sold via
both industrial distributors and manufacturers agencies.
Apple uses Selective Distribution strategy to choose the number of its intermediaries. Only a
selective number of distributors can sell Apples products include the iPhone 4S.
PROMOTION
ADVERTISING
Apples advertising objectives for iPhone 4S are both informative and persuasive. The
advertisements inform customers of iPhone 4S new features and persuade them that it is the
most amazing iPhone.
Apples advertising message for iPhone 4S is that the iPhone can perform much better that its
previous generations with more advanced technology. The creative concept for iPhone 4S
advertising involves the demonstration of its features. Apple also uses different types of
message execution, which are slice of life, lifestyle, mood and image, technical expertise.
Finally, Apple chooses many different media to deliver its advertising campaign for iPhone
4S. The most notable media are the Internet and television.
SALES PROMOTION
Apple does not really focus much on sales promotion in Vietnam. The only sales promotion
tool that Apple uses in Vietnam is point-of-purchase promotion, which includes
demonstration of the products in the reseller stores.
PERSONAL SELLING
Apple does not use personal selling in Vietnam.
PUBLIC RELATIONS
Apple has been using Public Relations to promote the iPhone 4S. Apple mostly uses press
relations.
DIRECT/ ONLINE MARKETING

Apple does not use direct/ online marketing in Vietnam.
II. OBJECTIVES
Corporate Objectives
To achieve the largest market share in the smartphone industry of Vietnam.
To build long-term business relationship with the local distributors.
To provide the consumers the best offer with high quality and reasonable prices.
Financial Objectives
To increase earnings per share by 15%.
To increase the operating cash flows by 20%.
To increase the companys profitability levels.
To provide a Return On Investment of 15% by the end of 2012.
Marketing Objectives
To enlarge the market segment for iPhone 4S after 6 months.
To overthrow Samsung Galaxy and establish iPhone 4S as the market leader after 6 months. (see
Appendix 22)
To gain 15% market share from smart phone business by the end of 2012.
To increase the customers awareness by 30% by the end of this year.
III. RECOMMENDATIONS
MARKETING STRATEGIES
TARGET MARKET
Targeting
For better service and quality to the consumers, Apple Inc. has defined the loyal consumers
via the below criteria. These are the potential market segments that Apple Inc. is likely to
make profits.
Segmentation Variables
Geographic Country: Vietnam, from the north to the South
Big cities: Ho Chi Minh City, Hanoi, HaiPhong,
Da Nang, etc.
Demographic Age: 20 - 35
Gender: Unisex
Income: Affluent
Education: High school, college graduate,
professionals
Psychographic Social class: White-collar worker
Lifestyle: Busy
Personality: Adore luxurious products
Profile of Target Market

To make the best benefits out of the Vietnamese smartphone industry, iPhone 4S should be
launched in many big cities from the North to the South Vietnam, such Hanoi and Ho Chi
Minh City. Furthermore, the main target consumers for iPhone 4S should come from Middle-
class to Upper-class people, who always need help of advanced technological devices. In
addition, it is better for Apple Inc. to downsize the targeted market segments to focus on
learning about that specific market. Since iPhone 4S is well-designed with great-performed
software and an expensive price, it is best to introduce these to people with affluent income
and fond of luxurious items. These people usually fall into the age group of 20 and 35, no
matter what gender they are, and they may be well-educated to know how to use a
smartphone.
Targeting Strategy
Considering the specific target market that has been defined, Apple Inc. might as well
consider applying the concentrated marketing (also called Niche marketing). This strategy
might limit the companys potential customers from other market segments, but it allows the
producer to focus mainly on the actual customers, who will possibly buy the manufacturers
products, and offer them what they demand in exchange for their loyalty. Besides, iPhone
usually does not have long expectancy in Vietnam. After a few months, when a new version
of iPhone is released, for example, iPhone 5, iPhone 4S will surely reach the maturity stage in
the Products Life Cycle. This strategy by far is the most suitable and effective one to
Vietnams market.
DIFFERENTIATION AND POSITIONING

Competitive Advantages
Even though there are many competitors in Vietnamese smartphone industry, iPhones of
Apple Inc. still have their own unique selling point.
Distinctive: Many people stated that Samsung Galaxy and iPhone look the same, if there is
any difference, it must be their size. However, if one pays their attention closely, they would
see the difference between the two brands.
Superior: iPhone 4S could be considered the first to have an application that can
communicate with users in term of literally speaking (i.e. The Siri application). Not even
iPhones most formidable competitor, Samsung Galaxy, has this new feature.
Preempty: Despite the huge competition in the market, there are certain features of iPhone in
general that others cannot copy. For instance, even though most smartphones possess the
sliding feature, not all of them perform as well as iPhone. Some are not sensitive enough.
And some are too sensitive that it becomes annoying.
Positioning Strategy
It is wise if Apple Inc. continue their More for More strategy. People tend to believe that the
more expensive a product costs, the more benefits they would receive from it. If Apple Inc.
reduces iPhone 4Ss price, consumers will think that this version is not as good as the others.
Thus, they may either choose the older versions or change their support to other brands, like
Nokia or Samsung.
SWOT MATRIX
STRENGTHS WEAKNESSES
OPPORTUNITIES SO: WO:
Life quality in Vietnam has been Because the life quality has been
increasing and the positive increasing in Vietnam, users now
changing in workforce with more consider more in the technology,
educated, more white-collar and design, functions, features more than
professional. As a result, those the price of item. IPhone 4S is the
people now require more than latest version of iPhone series with
just a simple-functions mobile more specifications and applications
phone. In other words, IPhone 4S to satisfy the users, so the high price
is a multifunctional smart phone is not really a problem.
that allows users do multitasking
in various aspects. Moreover, since other competitors in
smartphone industry cannot compete
iPhone in sliding technology, iPhone 4S
still has advantage to gain the market
share.
THREATS ST: WT:

IPhone 4S has more Since iPhone 4S has several
advantages such as perfect competitors, they have to keep
sliding technology, Siri developing and improving for next
Application, international iPhone versions to satisfy users. This
warranty etc. so iPhone can can solve two problems:
definitely gain competitive IPhone 4S can remain the
advantages to compare with market share and increase it.
competitors. Reduce fake iPhones through making
Luxurious phone in general the users recognize that real iPhone give
and iPhone 4S in specific the best quality
cannot avoid unexpected
events such as thieves,
network error and counterfeit
products.
MARKETING MIX STRATEGIES

PRODUCT
Even though iPhone 4S is the latest version, it still needs more improvement. Firstly, antenna
function needs to be developed. Death grip bars should be replaced by another system, so
the receiving signal will be better. Moreover, Apple needs to develop another dual-core
processor, so iPhone can run applications faster and the battery life will last longer.
Furthermore, next iPhone version should support for both HTML and Flash player because
there are still many applications, websites and games that built on Flash.
Siri application is still a new feature. Obviously, it is really an outstanding voice recognition
feature, but it still needs to fix some errors to be more perfect. For example, Siri should
support for more languages and increase the sensitivity in receiving voice requirements from
users.
And the last aspect is the size of iPhone should be reduced in smaller and slimmer size.
Compare to the previous version, which is iPhone 4, iPhone 4S is a little heavier. The next
iPhone version should be designed with smaller dimensions, so iPhone can compete other
competitors such as Samsung, which is the leader in slim design.
PRICE
EXISTING PRODUCT PRICING STRATEGIES
Prices
The current prices of the iPhone 4S are still high compared to the normal Vietnamese
living standard.
New-product pricing strategies
Market Skimming Pricing strategy may not be effective in Vietnam because the number of
people who are willing to pay for the iPhone 4S with a high price is not high. These
people are usually upper class only.

The Product line pricing strategies (based on different capacity) that Apple is using could
be useful. As a result, the customers have more options to buy depend on their financial
situation.
Price-adjustment strategies
Apple uses psychological pricing for iPhone 4S. Vietnamese people tend to think that the
more amount of price they paid, the more quality they gain.
NEW PRODUCT PRICING STRATEGIES

Prices
The international price of iPhone 4S cannot decrease due to the core value of its will
decline too. Therefore, the price will remain unchanged.
New product pricing strategies

Apple should continue Market Skimming Pricing at the present. Besides that, in order to
boost the purchasing power of middle-class customers, the iPhone retailers should sell the
half price paid in cash. The rest will be taken within 3 months with the income certificate
of that customer.

Apple can continue with its current strategy. Also, the Apple should make the iPhone 4S
based on the customization of the customers in order to make customer satisfied with
Apple Inc. Price-adjustment strategies
Apple Inc. should use the current psychological pricing strategy.
PLACE
EXISTING PRODUCT DISTRIBUTION STRATEGIES
Marketing channel
The current indirect marketing channel works successfully in Vietnam. For instance, the
shops that sell iPhone 4S can be found easily. Furthermore, Vinaphone and Viettel are
both big companies, which have wide distribution channel
Marketing intermediaries
The Contractual Vertical Marketing System that Apple uses is effective in Vietnam.
Customers also feel more convenient when buying iPhone 4S from the local resell stores.
The Selective Distribution strategy also helps Apple choose the best resellers that can
facilitate the distribution of iPhone 4S while keeping its image as a special and unique
product.
NEW PRODUCT DISTRIBUTION STRATEGIES
Marketing channel
The current marketing channel strategy does not need to be changed
Marketing intermediaries
Apple may keep using the same strategies.
PROMOTION
EXISTING PRODUCT PROMOTION PLAN
Basically, Apples promotion strategies for iPhone 4S have successfully informed
Vietnamese customers about the iPhone 4S and its new features.
The current promotion plan for iPhone 4S is really little. To illustrate, the advertising and
other promotion tools are not localized enough for Vietnamese people. Moreover, the
promotion for iPhone 4S has failed to reach widely and deeply the Vietnamese audiences.
Customers often have to seek information about the iPhone 4S rather than receive
information about it initially. Furthermore, the current promotion plan has not done much
in encouraging sales of iPhone 4S. Most customers who purchase iPhone 4S are those
who have purchased previous generations iPhones or those who have known about
Apples product for a long time. They have not bought iPhone 4S because of the appeal
from the promotion plan. Lastly, iPhone 4Ss current promotion strategies in Vietnam do
not affect much the customers who are new to Apples iPhone brands.
NEW PRODUCT PROMOTION PLAN
Advertising
There should be a local version of iPhone 4S advertisement appearing usually on
Vietnamese television channel such as Yan TV (focus on teenagers) HTV channel (focus
on adult) and so on. This should take the Vietnamese lifestyles and values into
consideration. The advertisement should also be on local daily newspapers (TuoiTre,
PhapLuat, Bong Da etc.) to widen the effect.
Sales Promotion
Apple could use some consumer promotion tools to increase the iPhone 4S sales.
Apple Inc. should apply Advertising specialties. To illustrate, when customers purchase
iPhone 4S, the stores should give them some gifts (helmets, umbrellas, etc), which
contain the logo of Apple Inc. to spread out the fame.
IPhone 4S also can apply coupons (decrease 5%) for other products of Apple Inc. such as
iPod, iPad and iMac to increase to purchasing power of customers.
These methods also have positive influence in terms of Vietnamese customers attitude
toward the iPhone brand.
Public Relations
Apple could continue using its current Public Relations strategy for iPhone 4S in
Vietnam. Furthermore, social networks such as Facebook and Twitter are also effective to
advertise iPhone 4S for customers.
ACTION PROGRAM
CONTROLS
Reports will be provided by managers of each department according to the steps in the action program
from April 2012 to April 2013.
Research & Development
Provide the information about the market and competitors strategies.
Update monthly the trends of consumption in the market.
IT Department
Report the performance of iPhone 4S in testing process and in reality.
Improve the new applications and features.
Upgrade iPhone 4Ss function and core processor.
Report issues that occurred in the companys website and the solutions.
Sales Department
Report monthly on the sales trend in each distributors shop.
Report monthly on the performance of sales staff and representatives in all areas.
Present promoting ideas and evaluate the budgets to the executives for the upcoming periods.
Marketing Department
Report the progress of expanding new local reseller systems.
Manage the promotion strategies via printed and media channels, i.e. TV advertisements and local
magazines.
Distribute promoting events according to plans, i.e. coupons or gifts.
Expand and introduce products on social community pages, such as Facebook or Twitter.
Finance & Accounting Department

Report on the budget spent and profits gained in the previous months.
Calculate and manage the costs for the upcoming promotion events.
Human Resources Department

Report on the employee recruitment and the performance of employees in the company.
Train new staff in customers service, i.e. delivery, installation or product maintenance.
IV. APPENDIX
1. As cited in Vietnam Age
Structure and Population
Pyramid (2011),
Vietnamese General
Statistic Office reveals that
proportion of people
between 15-64 years old and
over 65 years old in
Vietnams total population
has rapidly increased by12.4
(56.1% to 68.5%) and 2.1
(4.7% to 6.8%) respectively
for 20 years from 1989 to
2010. One of the reasons is
because of the decrease in
birth rate, which is due to
the Governments Two-child
policy. Another reason is
that medical care has
become more advanced,
resulting in higher life
expectancy in elders.
Vietnam population is concentrated on two largest agricultural centers of Vietnam, Red River
Delta and Mekong River Delta (939 people/km2 and 426 people/ km2 respectively) (Vietnam
Population Density, n.d.)
2. Overall, the poverty rate in Vietnam declined from 1993 to 2008 by 54% in the whole country.
However, the poverty percentage of the rural areas is still greater than that of the urban areas,
causing many migrations from the countryside to cities. In spite of that, no other countries in
Asia reduced the poverty rate as quickly as Vietnam. With the reduction in the poverty, more
consumers appear in Vietnamese marketplace. As a consequent, it boosted the growth in the
economy of Vietnam.
3. FDI capital in the total investment capital and economic growth in the 1991 1993 periods
(Collins, 2009)
1991 1992 1993
FDI (VND billion) 1,926.0 5,185.0 10,621.0
Total capital (VND billion) 13,471.0 24,737.0 42,177.0
Ratio of FDI to total (%) 14.3 21.0 25.2
Percentage growth of GDP at 1989 6.0 8.6 8.1
prices
Impact of the GFC on the economic
Vietnams economic growth during the impact of the GFC (2008-2009)
(Collins, 2011)
2004 2005 2006 2007 2008 2009 2010
Economic growth rate (per cent) 7.8 8.4 8.2 8.5 6.1 4.6 6.8
Inflation rate (per cent) 9.5 8.4 7.3 8.6 8.1 7.0 11.8
Foreign investment (Trill. Dong) 51,1 65,6 129,4 190,7 181,2 214,5
GDP per capital (USD) 2700 2800 3100 2600 2800 2900 3100
4. Nghia (2010) declared that Vietnams goal to become a country with modern industries is
impossible to achieve. Since the 1960s, Vietnam has been received the support of Soviet Union
and China in issues related to engineering. Even with the two 10-year plans, Vietnam has not
achieved any industrialized development. Precise technology remains luxurious for Vietnam,
stated Nghia. In order to become an industrialized country, there are five important components
that Vietnam still cannot achieved, namely big capital, profuse electric power, developed
infrastructure, high technology level and good labor force.
5. According to Nguyen (n.d.), there are 17.2 million Internet users in 2006, accounting for 20%
in the Internet Penetration section. Compared to the previous year, the number of Internet users
had increased 50% in 2006. In
addition, more than 80% users
aged from 15 to 19, and around
75% users aged between 20
and 24.
Meanwhile, in the Mobile
Phone Penetration section, the
number of mobile phone users
achieved 12.2 million,
accounting for 14% of the
market. The percentage of
mobile phone users had
increased 45% in comparison
to 2005 (Mallon, 2010). Also,
in this period, three Vietnam
mobile phone manufacturers
became major and held 95%
market share in this
segmentation, namely
Vinaphone, Mobifone and
Viettel.
6. Decree 25 - Telecom Sector

Competition
As reported by Nguyen & Nguyen (2011) Vietnams mobile market was broken down to
three major competitors: Viettel (33.82%), Mobiphone (27.15%), and Vinaphone (27.19%).
This new legislation introduces new rules that intends to further fuel the competition in the
telecom sector. Under the restriction, any entity or individual that already owns more than
20% of the charter capital or shareholding of a telecom enterprise is prohibited from holding
more than 20% of the charter capital or shareholding in another enterprise in the same
telecom services market.
Decree 25 - Capital Requirements
Decree 25, for the first time, outline clear requirements for minimum legal capital and
minimum level of committed capital for telecom players. The minimum legal capital varies
depending on the service provided, ranging from VND 5 billion (approximately $240,000)
for service with landline fixed telecom without radio frequency band in a network of a
province or city under central authority, to VND 500 billion (approximately 24 million USD)
for service with landline mobile telecom network using a radio frequency band. The
minimum level of committed investment is typically three or five times the minimum legal
capital. Furthermore, Decree 25 requires each registering enterprise to deposit a fee of 5% of
the level of committed investment in the first three years, but not less than VND 3 billion into
an escrow account with MIC before the telecom license is issued. However, since the
regulation defines telecom services quite broadly, companies providing text message and e-
mail services via mobile applications will fall under the scope of this regulation. The
development of mobile applications with innovative user interfaces provides new ground for
small companies to enter the market, yet imposing such a legal capital requirement may
restrict market entry and hinder innovation in this area. (Nguyen & Nguyen, 2011)
Decree 25 - Foreign Enterprises
Decree 25 also provides clear regulation of foreign enterprises with conditions that are
consistent with WTO commitments. A foreign entity may form a joint venture or business
cooperation contract with a Vietnamese entity to provide telecom services without network
infrastructure. Where a foreign entity wishes to provide telecom services with network
infrastructure, it must form a joint venture or business cooperation with a telecom enterprise
already licensed to establish a telecom network in Vietnam. Currently all such enterprises are
government owned. Since the regulation is silent on the maximum capital, existing limits set
by WTO commitments still apply (Nguyen & Nguyen, 2011).
Other Legal Developments - Mobile Phone Import Restrictions
In Decision No. 1380/QD-BCT, mobile phones were placed on the import-discouraged list.
All goods on the import-discouraged list already have tariffs set at or near the ceilings
declared in WTO commitments.
Announcement No. 197/TB-BCT, which came into effect June 1, 2011, permits only a
legalized distributor to import mobile phones, as it is required to present a legalized letter of
appointment or authorization as a distributor, importer, or agent from the manufacturer of the
products in order to clear customs. This means that parallel imports, which previously
enjoyed vague legal status, have officially become illegal in Vietnam.
The regulation places further restriction by allowing an entity to import such goods only
through three designated seaports of entry: Hai Phong, Da Nang, and Ho Chi Minh City. This
is a serious limitation because given the delays in processing time and docking problems in
seaports, precluding importers from using border crossings and airports can lead to
substantially longer processing times and higher costs. This has already been proven in
practice, which led the government to amend the regulation by excluding several items from
the restricted list. Mobile phones, however, still remain under the restriction.
7. Actually, Antenna is a feature to decide the ability of iPhone in receiving signals such as Wi-Fi,
cellular signal and 3G. For the previous version, which is iPhone 4, this feature was still
developing because some customers commented that the signal transferring quality of iPhone
(include 3G, 3Gs and 4G) were not really good. Death gripterm refers the thin black lines
appeared on the top and bottom right and left side on the iPhone. Even though there is not many
people recognized this frustrated aspect, it still can cause unwanted dropping down during
transferring signals process if the users accidentally touch on those bars. Fortunately, this issue
was solved in 4S version. The users will no longer
see the death grip bar on the top of their iPhone,
which was decided as the roof of problem. Besides
that, 2 more death grip bars are applied in
iPhone4S version (4 in total) and the position is
two on the top and two on the bottom (Viticci,
2011). The improved antenna gate design also
equates 3G speed much faster, call quality is also
improved; and especially, lightning-fast Wi-Fi
signal acquisition.
8. As most previous iPhone versions, this vibration feature was designed with CDMA model to
replace for the old one, which was GSM model. For some users, who do not care much about
this aspect, this may not a really improved side from
iPhone 4S. However, for users, who often set silent
mode for their phone, this feature should be
appreciated. With the new vibration technology, it
does not mean that iPhone 4Ss vibration is weaker
than the older iPhone versions. What Apple wants to
focus here is the improvement in term of motor
sound design. When the uses hold the phone in their
hands or put it on the table, they will still feel the
strength of vibration is still the same, with the only
difference is the will not hear the distinctively loud

sound, which is cause from the old version of
vibration motor.
9. Firstly, the audio quality is improved with loud
speakers. This feature cannot be seen in iPhone4 or
other previous versions. This can be seen as one of
the most noticed problems from iPhones, most
users thought that the sound quality of iPhone is
not really good. However, Apple had upgraded the sound

system for iPhone 4S, this system also supports the very high
and low frequency sounds and allows the users to listen to
music from their phone clearer, even though they are in the
environment with lots of ambient noise. Obviously, iPhone 4S
support the customers with higher clarity in term of sound, it
helps the users avoid the situation that called clipping, which
is usually happens in iPhone 4 whenever the user play music
with high-pitch amplitude. With iPhone 4S, this problem can
be solved and the users can enjoy their songs or music and
sound effects in games with really good quality. About
imaging feature, this may be a good response for anyone who used to unsatisfied with the
solving imaging technology of the older iPhone versions. IPhone 4S supports the rear camera
with resolution is up to 8 megapixels and VGA front. With this upgrading feature, iPhone 4S
gives the users true color reflection and nice graphic performance. Furthermore, one special
specification from iPhone 4S is the video resolution is now supported for high definition
watching -1080p. With stabilization standard, it allows users to record shaky shots but still keep
the super clarity of the image. Based on this, users can record and enjoy their video with the
best quality.
10. Siri application is a very new and interesting feature in iPhone 4S. Siri is the intelligent
personal assistant that helps you get things done just by asking. It allows you to use your voice
to send messages, schedule meetings, place phone calls and more (Apple, 2012). However,
Siri is not like other traditional voice recognition software that works like a system with a
limited memory. Moreover, Siri also does not require users to memorize keywords or phrases or
any specific commands. This smart application has ability to understand your natural speech. In
addition, it also can ask users some questions whenever it needs more information to complete
the executing process.
11. When users buy a real iPhone in Vietnam or in any country that managed under Apple warranty
policy, when their phone get problems, they can bring it to any official Apple store around the
world to fix it.
The table below is the warranty policy of Apple that applies in Asia Pacific. Based on this, the
users will know clearer where their phone can be cared.
Asia Pacific
Australia; New Zealand; Fiji, Papua New Guinea; Apple Pty. Limited. PO Box A2629, Sydney South,
Vanuatu NSW 1235, Australia
Hong Kong Apple Asia Limited 2401 Tower One, Times Square,
Causeway Bay; Hong Kong
India Apple India Private 19th Floor, Concorde Tower C, UB
Ltd.. City No 24, VittalMallya Road,
Bangalore 560-001, India

Japan Apple Japan Inc. 3-20-2 Nishishinjuku, Shinjuku-ku,
Tokyo, Japan
Korea Apple Korea Ltd. 3201, ASEM Tower; 159,
Samsung-dong, Gangnam-Gu;
Seoul 135-798, Republic of Korea
Afghanistan, Bangladesh, Bhutan, Brunei, Apple South Asia 7 Ang Mo Kio Street 64
Cambodia, Guam, Indonesia, Laos, Singapore, Pte. Ltd. >Singapore 569086
Malaysia, Nepal, Pakistan, Philippines, Sri
Lanka,, Vietnam
People's Republic of China Apple Computer Room 1815, No. 1 Jilong Road,
Trading (Shanghai) Waigaoqiao Free Trade Zone,
Co. Ltd. Shanghai 200131 China
Thailand Apple South Asia 25th Floor, Suite B2, Siam
(Thailand) Limited Tower,989 Rama 1 Road,
Pataumwan, Bangkok, 10330
Taiwan Apple Asia LLC 16A, No. 333 TunHwa S. Road.
Sec. 2, Taipei, Taiwan 106
Other Asian Pacific Countries Apple Inc. 1 Infinite Loop; Cupertino, CA
95014, U.S.A.
12. Users expected this new iPhone will give them more using time, but it seems this latest edition
could not satisfy its users. With 8 hours talk 3G talk time, 14 hours 2G talk time, 6 hours
internet use over 3G, 10 hours of video playback or 40 hours music (Sung 2011), iPhone 4S
battery life does not have much improvement since the only difference is the old version just
can be used in 7 hours talk for 3G talk time, other statistics are still the same. However, IPhone
4S has a lot of new applications so they drain more battery than the previous version. Therefore,
the battery life is still short.
13. This can be considered as a problem in Asia countries.
For instant, when users want to exchange their SIM
card with another phone, it may be a trouble since in
most Asian countries, people almost use phones which
support normal SIM card and of course inserting a
microSIM is impossible. Furthermore, inserting and
taking out the SIM card from iPhone is also an
annoying process since the iPhone design with a very
small SIM card slot that does not let users execute this task easily like other smartphones.
14. This is really a limited side because it does not allow the users listen to live broadcastings as
well as some special podcasts through radio channels. And obviously, without stereo speakers,
users cannot receive the maximum sound enhancement standard as they wish.
15. What iPhone 4S proudly present about the significant features since it was first introduced to
the market is Siri application. However, this sophisticated
function also reported with some drawbacks. Firstly, Siri is
known as an application to replace for Maps application in
supporting directions and traffic information. Unfortunately,
this function just works in the United States and it also follows
the commands in English to navigate map feature only (Top
five disadvantages of Siri, 2011). On the other hands, Siri was
known as intelligent software to recognize users speech and
executes the users commands. However, the fact is Siri is not
really sensitive in recognizing strong accents so
misinterpreting voice commands is also an annoying issue.
Since it just supports commands in English, users are from
Asian countries and others, where English is the second
language, this might be a big drawback from iPhone 4S.
Furthermore, Siri is not an offline supporting application; so
that means without Internet connection, Siri does not work.
This also can be regarded as a significant problem from this feature since the users cannot work
or using it in low or no Internet connection.
16. This makes users unsatisfied. Even though, Flash has been replacing by HTML5, there are still
many websites and applications are constructed bases on Flash player especially in Vietnam.
17. In 2011, real Gross Domestic Product (GPD) growth was 6.3% while GDP per capita of
Vietnam is $1300/year/person (Kinh, 2011). In the other words, in 2011, consumers have more
purchasing power than 2010 due to more cash they received.
18. According to Kolter et.al (2008), there are so many changes in the workforce. First of all, the
proportion of educated employees and white collar in workforce is steadily increased. As a
result, they are more professional so high technology device is the best choice for them.
19. In Vietnam, the network connection is on the way to improve in the future. As a consequence,
the connection from all phones to the internet is fluctuated base on how many people are using
that connection.
20. The article Top 10 pickpocket hotspots (2010), 10 is the rank of Vietnam about pickpocket
event occurred. In other words, the customers should be careful when using anything valuable
in publics to avoid pickpockets.
21. Penz et.al (2005) reported that the supply of fake product has increased dramatically in the
world and this is a real risk for original manufacturers.
22. The article Top 10 smartphone bn chy nht thng 10 ti Vit Nam (2011) reported that the
most consumed smartphone was Samsung Galaxy SII I9100, followed by Nokia N8 and HTC
Sensation. Surprisingly, on the list, the previous version of iPhone, which is iPhone 4, was the
10th, the last rank on the list.
Even after iPhone 4S was released in 2011, iPhone 4S did not attract the consumers attention
as much as when iPhone 4 was first released. Some people stated that iPhone 4S was just an
improvement of iPhone 4. Overall, it looked exactly like iPhone 4 with the same features and
design, so most consumers who cannot see the difference between two versions were not as
thrilled as when they got iPhone 4. (Vuong, 2012)
23. Asay (2010) indicated that Apple Inc. had not paid even a penny for the marketing campaigns.
In fact, Apple targets the people instead of a targeted market. The users hold the decision in
finalizing their choices, how they want to use the product, the attitude towards the good and
where they will use it. Even so, without much marketing campaign, iPhone still remains one of
the most purchasing items to many people.
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RMIT International University

[MARKETING PLAN: IPHONE 4S] 1

Strategic Situation Analysis

Quality and relevance of audit (internal & external)

Bargaining power of buyers:

BARGAINING POWER OF SUPPLIERS:

Threats of new entrants:

TOP-FREEZER REFRIGERATORS: boast propelled freshness highlights and upscale

DOOR-IN-DOORTM REFRIGERATORS: LG stockpiling development gives moment access to

LG Electronics (LGE) is a producer of electronic apparatuses, home excitement items,and

Aims, Objectives and Strategies

Both corporate and marketing objectives and Strategies

These should be listed and clearly identified, and linked to the

3. To change the Brand Loyalty of the Customers .

Appropriateness of segmentation, targeting and positioning

Recognizing the Segment:

Segmentation from Geographic:

Segmentation from Demographics (Income Level):

Segmentation from Behavioristic and Psychographic approach:

Market situation and competitors :

High LG & Samsung

LG and Competitor Review

Olympic Group, which were third with 19% volume.

Purposes behind market plan:

MARKETING MIX Strategy of 4 Ps

Publicizing and Advertising

Electronic Media , internet and social media:

Out of aggregate advirtisng

Place distribution Strategy :

Three Year Marketing Plan of the LG refrigrator:

Refrigerators launching Zones time frame Gantt Chart

Egypt lower Half

Egypt Upper Half

Cairo & Alex

Measure of Performance: Execute arranged marketing communication methodologies and utilize

Measure of Performance: Compare organization deals to the aggregate market deals.

Goal: Availability of fundamental models in every single significant retailer.

Future Outlook of LG refrigerator:

The second phase aims to produce refrigerators and adaptations.

to USD 1.7bn by 2016", said Hamdy.

Year Units Sold Percent Market Share Revenue

2 800,000 10% $5,600,000,000

3 1,000,000 12.5% $7,000,000,000

Three Year Marketing Plan of the Product:

Number of Sales Expected in the first year

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Second Phase (From 2018 to 2019):

Optimum Solution Market Share Expectation Next 5

Optimum Solution Market Share Expectation Next 5 Years

PROMOTION: Samsung uses multiple forms of promotions. Samsung as a company believes

the amount of offers.

A skim-valuing system will be utilized for the Digi-Fridge.

The joined tablet.

The cost of application improvement.

The cost of refrigeration and cooler compartment parts.

The cost of scanner tag filtering innovation.

With customization alternatives, the Digi-Fridge's cost will fluctuate

A Custom shading will include $250.

A custom realistic will include $250.

Customizing the item's measurements will include $500.

The incorporated tablet.

Three Year Marketing Plan of the Product:

Best of Innovations 2006 International CES

Reasons for marketing plan: