Wednesday, 1 July 2015

Samsung and LG Engage in Marketing Battle to Save Sagging Premium TV Sales


The premium television segment is set to become a battleground with Samsung Electronics and LG Electronics ready to engage in a war to promote their OLED and SUHD television models. Currently, the global television market’s future looks uncertain, but the same cannot be said for the high-end television market in countries such as China and India, where consumers are still investing in televisions linked to DTH services. 

Recent reports in the media say that the TV units of both LG and Samsung have seen losses in the first quarter – this has prompted the companies to lay an added emphasis on revitalizing their television units. This has set the stage for a face-off between the two companies as they try to bring more consumers on board. A glut of low-priced, multi-functional television products has been seen in emerging countries such as Russia, Brazil, China and India. Here, domestic companies have thus far enjoyed predominance. But now, with these companies finding it growingly difficult to stay competitive, growth avenues are aplenty for the high-end television market, with products that are sophisticated. 

Both LG and Samsung have realized that promoting their high-end television models will likely help salvage their drowning TV businesses. Samsung, for one, is using culture marketing to gain a wider share of the market, whereas LG hopes to harness the developments that have taken place in OLED TVs. It is important to note here that LG released the first OLED television in the world recently. Samsung, on the other hand, brought the SUHD TV to the market in February 2015. With both companies boasting their own set of strengths, using these to market their products seems like the only way ahead.

Samsung has partnered with U.S.-based Universal Pictures to promote its products to time with the movie Jurassic World, whereas LG had signed a partnership with Google to obtain big data and use it to develop targeted advertisements for its OLED TV model. 

It now remains to be seen how these results impact the profitability of the television units of the two electronics giants over the next few months.

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