Marketing Mix Strategies of LG and Samsung in Singapore Market

Principles of marketing
10/15/2018

Principles of Marketing 1
Part 4 Marketing Mix
Price
Price is considered as the important element in the marketing mix strategy that is adopted by the
business in the competitive environment. The price of the product is the amount that the
customer is willing to pay for availing the product or service.
LG Pricing strategy
 Cost plus mark up: - The pricing policy of LG electronics includes mainly cost plus
markup which means the cost of the product and reasonable profit of brand in the market
of Singapore. In most of the rural areas, the company generally follow the policy of price
competitiveness.
 Price competitiveness: - In price competitiveness, the company keep the prices of the
product after reviewing the competitor's prices in Singapore. Though, LG evaluates the
prices of the competitors with the customers thought for prices and after evaluating the
prices and cost it evaluated the actual cost of the model is determined by them.
Samsung pricing strategy
Samsung Electronics it follows different types of pricing strategies for their products.
 Skimming price strategy: - For the innovative products, Samsung generally asks for the
higher prices as it follows the skimming price strategy (Bhasin, 2018). In this strategy,
the marketers set high initial price for the products and then reduce the same with time in
the market of Singapore.

Principles of Marketing 2
 Competitive pricing strategy: - For the remaining products, it makes use of the
competitive pricing strategy which is required to beat the competitors that are present in
Singapore. This shows that the company can easily manage their profit out of the
products.
Current pricing and offering of Samsung: - The key competitors of the company include
Samsung, Sony, Panasonic and many others. Out of these, the major competitor of the company
is Samsung. The current pricing and offering of the products are generally less or equal to
competitors because it wants to earn high profit and goodwill in eyes of Singapore customers.
Research on TV in market: - Research on TV has been done which shows the prices
comparison of two products that is LG 43 LH576T 43 Inch LED Full HD TV and Samsung
UA32EH400 3R 32 inch LED HD-READY TV which is 37,199 and 21,990 respectively
(Gadgets Now, 2018).
Promotional pricing of LG Company: - LG Company makes use of the promotional pricing in
which the company reduce the prices for a short period of time. This generally takes place in the
lean season as to increase the sale of products. Though, on the other hand, Samsung electronics
doesn't make use of promotional pricing.
Comparing the strategies of both the brand, this has been found that LG Company has applied
the strategies effectively in selling the products in the market (Grant, 2016). The company has
balanced their profit by following the two strategies. Along with this, they have made their good
reputation and image in the market. This shows that in Singapore market LG company is
dominating the market than Samsung.