2012 MARKETING MANAGEMENT Zenith HDTV SUBMITTED TO : Dr. K Abdul Waheed SUBMITTED BY :- ROHIT SAXENA VIKAS SINGH NAMAN BHAYANA TANWISHA MISHRA PRASHANT ANAND KATARZYNA BORYS 2/5/2012
Zenith HDTV Marketing Strategy Case IntroductionZenith Electronics Corporation is a subsidiary of LG Corporation, a South Korean conglomerate. Before beingacquired by LG in 1999, it was an American manufacturer of televisions and other consumer electronics headquartered at Lincolnshire, Illinois. Zenith was the inventor of subscription television and the modern remotecontrol, color picture tubes, color computer displays, cable products and high tech electronics components suchas monochrome displays, power supplies, and automotive electronics.The case study explains the Zenith Electronics Corporation’s marketing strategy used to market their HDTV.Bruce Huber, VP of marketing at Zenith Electronics Corporation, and Jerry Pearlman, CEO, discussed themarketing strategy, keeping in mind that it was a new technology with better picture and sound quality. Theirkey focus was to market the product using forecasts for HDTV demand during the year 1992 to 2000 under mostlikely, pessimistic and optimistic scenarios.ISSUES TO BE ADRESSED IN THE ZENITH HDTV CASESTUDY 1. The Prospected HDTV demand from the year 1992 to the year 2000 under a pessimistic most likely and optimistic scenario. 2. The main factors that are to be taken into consideration in order to analyze market research strategies. 3. Solutions to the factor issues.Issue 21) ASPECT RATIO ANALYSISPRIMARY OBJECTIVE: To measure consumer preferences for TV aspect ratio (16:9 or 4:3) with equal heightand/or equal diagonal displays using Conjoint Analysis.SECONDARY OBJECTIVES: To determine changes in consumer preferences at various price differentials. To determine changes in consumer preferences with different program content. To determine changes in consumer preferences with different diagonal sizes.
2) PRICE, PROMOTION, PLACE AND PEOPLE PRODUCT ANALYSISPrice: Consumers have a fixed budget which was not extremely low as it signified a cheap product.The objective was to get the best TV within the budgeted amount.Product: Picture quality was one of the main concerns of the consumers .They also concentrated on otheradditional features such as a remote control and stereo system.Place: Consumers would generally tend to buy the products from the retail outlets . The consumers used to getmore information about a product at the retail outlets rather than getting through advertisements.Promotion: The Informative advertising generally went unnoticed , Customers were more interested in saleoffers. 1) It is advisable to opt for primary research when it comes to Aspect Ratio Analysis as the result it must be customize in order to meet the research requirements of Zenith. Moreover the RCA in its earlier research had certain discrepancies where it did not take into consideration how displays would be viewed in the real world. As pertaining to 16:9 ratio display, aspects such as “side curtains” and “letterbox” images view were overlooked. 2) Product, Price, Distribution and Promotional AnalysisIn order to carry out research on price, product, distribution and promotional preferences of the consumer,Zenith may opt for secondary research already carried out by research companies as their analysis is extensiveand it is relatively cheaper than carrying out primary research. They should also target dealers as they couldhave a considerable amount of influence when it came to helping the customers adopt a new idea such as thatof HDTV.QUESTION What are the forecasts for HDTV demand from 1992 to the year 2000 under a pessimistic, most likely and optimistic scenario?ANSWERPessimistic Scenario HDTV broadcast issues are resolved. HDTV sets are readily available. Quality HDTV programming is not available. Consumers do not see the benefit in paying higher price.
Sales will suffer and HDTV would only be able to penetrate 3-4 % of US households. It would be a mix of theearly penetration pattern of colour TVs and projection TV.Most likely Scenario Sales are slow initially. Sales pick-up after as good HDTV quality programmers are available. Consumers slowly become willing to invest in a HDTV.Sales would follow the pattern of the colour TV with slow initial sales but high penetration (98%) of UShouseholds as the time progresses.Optimistic Scenario Broadcast Standards are readily adopted. TV stations invest in new equipment and HDTV shows are available. HDTV sets are readily available. Consumers think the superior sound and picture quality is worth the higher price.Sales would follow the pattern of the VCR with high penetration rate.