LG's mobile division has established itself as the fastest growing mobile manufacturer in South Africa (SA), strengthened

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Question:

LG's mobile division has established itself as the fastest growing mobile manufacturer in South Africa (SA), strengthened by its G-series smartphone, but it is not a leading brand in terms of market share in the SA smartphone market. Develop a segmentation, targeting and positioning strategy for LG's G-series smartphones to increase market share and ensure that the brand compete more effectively in the South African market. Include a detailed description of your target market and a positioning map to illustrate your strategy.

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The International Data Corporation (IDC), Effective Measure and the IAB South Africa have released their latest report on South Africa's smartphone market (2016), which indicates that the SA smartphone of choice is Samsung, with 41% market share. BlackBerry is in 2^nd position with 13%, and Apple takes 3^rd position at 6%, followed by Sony Ericsson (5%), Nokia (4%), LG (2%), and the balance a group of smaller brands. The report shows that smartphone and feature phone (provides basic functionality like calling, internet access, camera, music player, etc.) usage increased beyond personal use and into business environments, whilst time spent on devices is also increasing. 32% of respondents spend more than 3 hours a day on their mobile device, and 19% spend more than 5 hours. 39% of respondents admit to using their phone to access the Internet while in the bathroom, and 12% while driving. The biggest growth comes from the mid-range smartphone class with more than 100% growth for both volume and value, South Africans are however still buying feature phones which made up 47% unit share, but only 4% value share because of the low Average Selling Price. A weakening rand did not deter consumers from buying smartphones. Sales of smartphones in South Africa grew 11% in volume and 22% in value on a year on year basis (March 2016, Fin 24).