Princess Nourah bint Abdulrahman University

College of Business Administration

• Reham Alshayie 442002130

• Alhanouf Alnasser 442003200
• Rana Alfawaz 442003040
• Shahad Alrushud 442004044
• Sarah Alfallaj 442001962

3QM
Principles of Marketing
MKT 203
Instructor’s name: Ms. Lujain Alwehibi
1st semester, 2021-22

LG Electronics: BOON

“ From wasting food to nourishing the earth “

Marketing BOON Group project

Table of Contents

1.0 Summary…………………………………………………………….……………..4
2.0 Introduction………………………………………………………………….…….4
3.0 Business Goals and Objectives……………………………………………………5
4.0 Target Costumers………………………………………………………………….5
5.0 Our Business………………………………………………………………………..6
6.0 Competitors………………………………………………………………….……..6
7.0 Strengths, Weaknesses, Opportunities, and Threats Analysis (SWOT).……….7
8.0 Our Product………………………………………………………………………...8
9.0 Distribution Strategy……………………………………………………………….9
10.0 Promotion Strategy………………………………………………………………..9
11.0 Pricing Strategy……………………………………………….......……….……..10
12.0 Marketing Budget………………………………………………………………..11
13.0 Environmental Factors……………………………………………………..……11
14.0 Considerations………………………………………………………..…………..12
15.0 Conclusion…………………………………………………………………...……12
16.0 References…………………………………………………………………………13

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Marketing BOON Group project

Table of Figures

1.0 Figure A………..…………………………………………………….…………..14

2.0 Figure B………..……………………………………………….……….………..14
3.0 Figure C……………………………………………………..……………..……..15
4.0 Figure D………...………………………………………………………….……..15
5.0 Figure E……….………………………………………….………………………16
6.0 Figure F…………..………………………………………………………………16

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Marketing BOON Group project

Summary

This report’s main purpose is to introduce our new product called BOON. Which is a device that
its main idea is to reduce food waste by recycling it and turning it into fertilizer to use in
gardening. Firstly, the report provides a brief introduction about the company of LG as well the
importance that the new device holds to help maintain an eco-friendly lifestyle while remaining
indoor. Secondly, it will go through the product’s details such as marketing plan, and that
includes the goals and objectives of producing the product and describe its Business, customers,
and competitors, it will also analyze the threats and opportunities (SOWT). In addition to
marketing strategy and solution, it has four topics to talk about and they are the product with
more detail into it and its purpose, then it will explain the chosen distribution, promotion, and
pricing strategies LG will implement to the product. Lastly, it shows LG ‘s marketing budget,
environmental factors and things that must be considered.

Introduction
LG Company is a well-known Korean electronics firm. Because of its high quality and
producing-efficiency, LG is trusted by its clients all over the world. LG Electronics is a
multinational electronics firm based in Seoul, South Korea, and is a subsidiary of LG
Corporation. Goldstar was formed by Koo In-Hwoi, a South Korean businessman, in 1958. In
1995, the company was renamed LG Electronics after a merger with Lucky Chemical. LG
comprises three primary businesses IT and electronics ,petrochemical and batteries. LG is one of
the most successful consumer electronics businesses in the world, with a global revenue of over
52 billion dollars in 2020. The most important markets for the company are South Korea, North
America, Europe, and Asia, which account for over 85% of total revenue. Samsung Electronics,
a similar Korean consumer electronics behemoth that focuses on many of the same products, is
LG's biggest domestic competitor. Both firms have strong product lines in a range of appliances,
including refrigerators, washing machines, and air conditioners. Which makes LG even more
motivated to increase its efficiency. However, in 2022 LG will introduce the a product ‘BOON’
which will become a leading device in the home composting business.

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Marketing BOON Group project

Business Goals and Objectives

Setting business goals and objectives is the first step in the marketing process. As they give a
clear view of the organization’s main purpose and what it should achieve within a given period.
Our business objectives are:
• To have a huge presence in the market of being the leader supplier of food recycling.
• To reduce environmental impact from methane gas produced by decomposing food waste
in landfills.
• To improve customer satisfaction and customer retention by investing heavily in
understanding their wants and needs.
• To reduce the huge amount of food wasted daily all around the world by providing
products that recycle it into soil.
• To provide high-quality goods and services to our consumers with competitive prices
while adding additional value to their lives, gaining their respect and trust.
• To prioritize our customers’ requirements and feedback in relation to all business
manners.

Target Customers
Our target customers are defined by key demographics, key psychographics, challenges, and
preferred content types.
Key demographics:
• Age range: 35-60 years old.
• Gender: 40% male, 60% female.
• Education: Bachelor’s degree.
• Location: Saudi Arabia.
• Income: middle-income to high-income.
Key psychographics:
• Interested in protecting the environment.
• Invests in eco-friendly technology.
• Strongly values living a healthy lifestyle.
• Involved in plants and gardening at home.
Challenges:
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Marketing BOON Group project

• Wants to get involved in recycling but finds difficulty in obtaining recycling products.
• Lacks knowledge about recycling.
Preferred content types:
• Television.
• Articles.
• Social media platforms.

Our Business
LG Electronics concentrates on generating innovative technologies all around the world.
We are dedicated to creating electronic goods that improve the lives of our consumers. To
enable this, we have created cutting-edge devices and appliances. LG Electronics has built
a management system for safety, health, energy, and the environment (SHEE), as well as a
commitment to eco-friendly administration and safety and health standards. We seek to
guarantee that a culture of safety that is in accordance with global standards is widely
acknowledged at company locations by establishing SHEE policies and semi goals.
Simultaneously, we carry on making active efforts to reduce our company's environmental
effect by guaranteeing the management of water resources as well as waste such as
chemical compounds (LG, RELATIONS and Factbook, 2021). Thus why, we launched
BOON, which is all about redefining waste and closing the circle on the whole idea of
waste. Food waste must not be disposed of in a straight line from the kitchen to the
landfill. It must be a never-ending process, from kitchen to yard to kitchen once more:
from waste food to nourishing the earth to feeding ourselves. BOON makes that possible.

Competitors
There are few direct competitors in the market for BOON, who offer the same product as BOON
and they are SmartCara, and InSinkErator. SmartCara, who are considered the leading company
of food waste disposal in South Korea. They have a huge presence in the market and have gained
a lot of recognition in the past few years, winning the award for food waste disposal solution.
Their main manufacture is in South Korea, and their distribution is in Vietnam (SmartCara,
2021).

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Marketing BOON Group project

The other competitor, InSinkErator, is a brand of instant hot water dispensers and food waste
disposal systems made in the United States. The firm was founded in Racine, Wisconsin, by
architect John W. Hammes, and it is still headquartered there. Hammes invented the "in-sink"
food waste disposal system in 1927. It operates by employing centrifugal force to crush and
shred solid wasted food. He worked on the design for ten years before going into the business
and selling the product. The In-Sink-Erator Manufacturing Company was his company's name.
In 2006, In-Sink-Erator dropped the hyphens and rebranded as InSinkErator. It also changed the
corporate logo and produced the Evolution Series, a s new series of high-tech disposers (Leader
in Garbage Disposals and Hot Water | InSinkErator US, 2021).

Strengths, Weaknesses, Opportunities, and Threats Analysis (SWOT)

SWOT analysis identifies the strengths, weaknesses, opportunities, and threats of the business
help in developing strategies and plans developed and update innovations. (Kotler, Armstrong
and Opresnik, 2021).

Strengths:
• An innovative product with unique features.
• Low energy consumption.
• Provide the product through the website and in retail stores.
• High quality at a reasonable price.
• The company is a pioneer in the market with more than 70 years in the business.
• The best electronics manufacturer.

Weaknesses:
• High manufacturing costs.
• Lack of management team to experience in marketing and business administration.
• People are not interested in the product.
• The price of the product does not suit every segment of society.
• The company lacks presence on social madia platforms.
Opportunities:
• Increased use of technology at present.
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Marketing BOON Group project

• Customers' preference for online shopping and e-commerce.

• Few competitors.
• Price war between competitors.
• In short supply of innovations.

Threats:
• Strong competition between competitors.
• Consumers turn to alternatives because of the high price.
• Customer loyalty to competitors.

Our Product
Every year the average person produces 470 pounds of food waste. Nowadays, due to the
limitation of food disposal options, people keep using the traditional home composting systems
that can take up to five weeks to process and requires constant maintenance. These options not
only attract insects but also produce unpleasant odors. Moreover, in garbage disposal units will
be plagued by harmful odor and could create another potential issue in plumbing. Fortunately,
Studies have shown that food waste, which is an organic material waste, could be turned into
fertilizer by a natural process. Therefore, LG in 2022 introduces the revolutionary alternative to
composting “BOON” (Figure A, B), odorless, short cycle, indoor compost bin. Its eco-friendly
technology will reduce food waste by as much as 90%, with daily use cost less than 18 riyals for
operation. BOON expedites the natural composting process without using drains, venting, or
additives. in addition, Food waste is sterilized and converted into a nutrient-rich soil amendment
ideal for use in gardening and landscaping. This smart technology device LG created requires a
simple process, that begins with collecting food waste, cooked or uncooked, in the removable
basket (Figure C), the machine has the ability to compose any type of food waste such as shells,
bone bits, meat and fruits or vegetable rinds. The second step is starting the 3-hour quit cycle
with a push of a button, agitators break down the material into small particles while it is heated
to 180 degrees Fahrenheit, decomposing, and sterilizing it, with a unique carbon filtration system
that eliminates odor. After the cycle is complete the device will automatically shut off, resulting
in a nutrient-rich soil amendment scientifically proven for optimal vegetarian growth. The
cleaning process is also smooth, as the basket is removable for easy cleaning and is dishwasher

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Marketing BOON Group project

safe. BOON can operate anywhere there’s electricity, so it is the ultimate eco-friendly kitchen
device for anyone from caretakers to gardeners.

Distribution Strategy
Well-designed distribution strategy can contribute strongly to customer value and create a
competitive advantage for a firm. But firms cannot bring value to customers by themselves.
Instead, they must work closely with other firms in a larger value delivery network (Kotler &
Armstrong, 2021). Therefore, the distribution of LGs product in Saudi Arabia will be
accomplished through several electronic distributing channels. In order to effectively accomplish
a successful distribution of the product, it will use a direct and indirect selling channels, as it has
to sell directly to consumers through LG’s corporate store, official online site, mobile, and
telephone channels. As well as to distribute its product through the partnership of different
distribution electronic retailers such as eXtra, Xcite, and Carrefour. LG’s role is to produce the
product (BOON) that consumers will covet, and create demand through national advertising.
Then have the product obtained by distributors whose role is to deliver it to wholesalers, such as
shaker group, then lastly deliver it to retailers whose role is to display the product in convenient
locations, answer buyers’ questions, and complete sales (Figure D). Since producing the product
and making it available to buyers requires building relationships not only with customers but also
with key suppliers and retailers in the company’s supply chain, LG must make the satisfaction of
its distributors, wholesalers, and retailers a part of its distribution strategy.

Promotion Strategy
To successfully share BOON, LG will Identify the strategies it plans to use to convince target
customers to purchase it, which includes anyone who cooks such as homeowners, regular
kitchen users, chefs, people who produce a lot of food waste in general but prefer to make a
use out of it. Therefore, LG’s promotional strategies will include:
• Social media and internet advertising:
LG will make use of social media to promote BOON. to better market the product and create a
unique brand identity, it must connect with customers through various channels. such as
YouTube, Twitter, Instagram, and Snapchat. Each through its suitable way to promote BOON.
LG has created a successful platform on YouTube with over 220k subscribers on its global

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Marketing BOON Group project

channel and almost 30k subscribers on the ‘LG Saudi’ channel. It will upload a video that
showcases BOON and the features and advantages it provides. On the other hand, LG could
use Snapchat and Instagram but not only through its personal accounts and platform but
through popular influencers, specifically, those who fit the product’s brand and goals. such as
chefs, influencers for homecare and cooking tools, and environment ambassadors. As people
will directly relate to the products available to them. Regrading internet advertising, through
signing for paid promotion ads with Twitter and Google, who have a mass audience, as they
search for something related to the product, BOON ads will appear, then the user might
consider buying it. Besides that, they are placing small ads on the sides of websites, as well as
advertising posts and videos for BOON on all social media platforms, that when someone
clicks on, they are taken directly to the website of LG to view the product.
• TV commercials:
LG is known for its appealing TV commercials; it will direct an ad for BOON specialized for
Saudi customers. It will also promote its products through various sporting events, being its
sponsors.
• Offers and discounts:
LG will include BOON in its monthly and yearly exclusive offers such as buying
the device and getting a discount on another device. As well as offering an
extra year warranty on the product since it is new to the market.
• Official website:
LG uses websites and micro websites dedicated to the Saudi market through which it markets
its brands. The website will provide detailed information about BOON and enable customers to
purchase it and get it delivered. As well as offering a discount or a gift coupon for purchasing
the product online.
Through The above-mentioned strategies, LG makes sure that the product BOON is in the
mind of the customers and therefore they consider buying it.

Pricing Strategy
Since LG has a big name and market in Saudi Arabia with a wide range of home devices with
high quality and easy to use technology and trusted by consumers. LG should consider the
nature of the market its serving, while creating a pricing strategy which covered by three key

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Marketing BOON Group project

pricing strategies: customer value-based pricing that use a good-value pricing, offering the
right combination of quality and good service at a fair price. Another strategy, cost-based
pricing, whether using fixed costs or variable costs involves setting prices based on the costs of
producing, distributing, and selling the product plus a fair rate of return for the company’s
effort and risk. As LG product is new to Saudi Market company should take the third strategy
competition-based pricing as a future plan if other product enters the market.

Marketing Budget
In choosing the marketing budget for the product, LG must take several factors into account,
such as its company size, industry, brand position, environment and the product’s life cycle. As
figure F shows, Tech Companies on average spend 15 percent of total revenue on marketing. In
consideration of B2C product the percent of sales method is a reasonable method in choosing the
marketing budget. The new launch product has a budget of 15 percent on marketing as LG
company has a high awareness.

Environmental Factors
Environmental factors can affect important aspects of the product, they can cause direct and
indirect effects on business operations, personnel and revenue. For instance, in Demographic
Environment Boomers and Generation X are both willing to pay more for eco-friendly products
comparing to Generation Y (Shahsavar, 2020). The demographic environment is crucial because
it concerns people, and markets are made up of people. With this in mind, we know that BOON,
which is eco-friendly, is affected by demographic environment. Also, in economic factors wich
influence buying habits of businesses and consumers therefore affect BOON. Consumers with
more purchasing power than the average are more concerned about environmental issues than
those with medium or low income (Ottman & Reilly, 1998). When it comes to entering a new
market or launching a new product or service, technological factors can have an impact on your
decisions. Even the smallest competitor conducts market research to technological
advancements. It is crucial for LG to keep track of technology developments and be ready to
respond rapidly to them to develop BOON. environmental technology developments,
competitive development of green products, and the introduction of new environmental
technologies (Leonidou, 2013). Executives and managers can keep track of these shifts and

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Marketing BOON Group project

mitigate their effects. Businesses can defend themselves against predicted events and lessen the
effects of unanticipated developments by monitoring the dynamic nature of external environment
elements.

Considerations
There are a few things that LG needs to consider during manufacturing and marketing the
product BOON so they can take advantage of the empty market. First, making the price as low as
possible at least in the beginning or provide an installment service to customers to make buying
decision easier on them. Also, LG should be more active on its social media platforms and
follow the promotional strategy that mentioned previously for successful marketing plan. In
addition to creating an awareness campaign about the disadvantages of wasting food and how it
affects the environment to make people more aware and interested to save the planet, so they
have a reason to buy BOON.

Conclusion
To sum up everything has been stated, this report began with a memorized introduction about LG
company, covering the new product that will make difference in the food cycling world LG is
introducing within the next year. As well as its business objectives and the targeted customers,
describing the new product’s business, customers, and competitors. It then illustrated an attentive
SWOT analysis for LG explaining the challenges and advantages of the product. Then it broke
down the product purpose, details, and the way it works. Likewise, it talked about the marketing
strategy and solutions LG is applying to its distribution, promotion, and pricing strategies, after
that it concluded the marketing budget and environmental factors the product will face. In the end
of the report, we provided the appendices that include a closer look at BOON.

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Marketing BOON Group project

References

• Insinkerator.emerson.com. 2021. Leader in Garbage Disposals and Hot Water |

InSinkErator US. [online] Available at: <https://insinkerator.emerson.com/en-us>
[Accessed 19 November 2021].

• Kotler, P., Armstrong, G. and Opresnik, M., 2021. Principles of marketing. Harlow
(Essex) [etc.]: Pearson Education.

• Leonidou, L.C., Katsikeas, C.S., Fotiadis, T.A. and Christodoulides, P., 2013.
Antecedents and consequences of an eco-friendly export marketing strategy: The
moderating role of foreign public concern and competitive intensity. Journal of
International Marketing, 21(3), pp.22-46.

• Ottman, J. A., Reilly, W. R. (1998). Green marketing. Opportunity for innovation.

Second edition. Prentice Hall, 1998

• LG, A., RELATIONS, I. and Factbook, E., 2021. [online] LG Global. Available at:
<https://www.lg.com/global/ourstories-environment> [Accessed 16 November 2021].

• Shahsavar, T., Kubeš, V. and Baran, D., 2020. Willingness to pay for eco-friendly
furniture based on demographic factors. Journal of Cleaner Production, 250, p.119466.

• Shastri, A., 2021. LG Marketing Strategy Case Study - IIDE. [online] IIDE. Available at:
<https://iide.co/case-studies/lg-marketing-strategy/> [Accessed 19 November 2021].

• Smartcara-eng.com. 2021. SmartCara. [online] Available at: <http://www.smartcara-

eng.com/?p=about%7Cgreeting> [Accessed 19 November 2021].

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Marketing BOON Group project

Appendices

Figure A: BOON

Figure B: Product’s Measures

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Marketing BOON Group project

Figure C: A closer look at BOON’s specifics

Figure D: LG’s distribution supply chain for the product

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Marketing BOON Group project

Figure E: Product Logo

Figure F: Marketing budgets by industry

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