LG New Product Development

Smart Fridge

Presented by: Callum Walden, Angela Fung, Catherine Bunjamin & Breanna Bennett
Gate 1: Is this a good idea?
Why are we doing this project?
● Internal mandate of innovation

● Changing consumers (technologically savvy and time poor)

● Threat from competition

Does LG have the capability to develop this new product? YES

Does it fit our overall strategy?

LG’s vision is to deliver innovative digital products and services that make your life better, easier and
more comfortable
Stage 1: Scoping
Need: time poor consumers, easier ways to
perform/eliminate daily chores

Form: a smart fridge connected to online

applications, audits food stocks, orders food,
suggests recipes

Technology: advances in app systems, online

databases, online shopping
Scoping: Product Innovation Charter
Background: LG must invest in innovation to create products that will benefit
consumers lives

Focus: Technology is advancing, consumers are more and more time poor

Goals and Objectives: market leader

Guidelines: not necessarily first to market - but best value for consumers
Gate 2: Second Screen
- Is this still a good idea?

- Looming threat of competition dominating market before we can react → ACT NOW

- Strategic fit with organisation remains

- Does LG have (or can they create) the resources required? YES

- Will the customer find value in this product?

Stage 2: Build Business Case CB
Australian’s lifestyle:
Very attached to technology and internet
Higher household income spend more time at work
and much less on leisure.
Stage 2: Build Business Case CB
LG Potential Target Market
Primary Target Market Secondary Target Market
● Australian Male & Female ● People who are “image focused”
● 30 – 54 Years Old ● Status focused
● Tech Savvy ● Owned lux house
● High Income ● Inner-Suburban living
● Productive and Dynamic Lifestyle ● Above Average Income
● Poor time management ● Busy
● Value the quality of a product
● Highly Concerned with health and
nutrition
● Urban living
Gate 3: Go to Development CB
Is the product viable? Yes
LG’s product purpose match the Australian market & through
ATAR model this product was forecasted to gain profit.
Is the product worth to develop? Yes
How to develop the product?
Stage 3: Development
Stage 3: Development
•Premium product consumer separated into two
groups
–Group 1: Purchase for extra design features that create
ease of use (Primary Target Market)
–Group 2: Purchase as the design reflects exclusivity
(Secondary Target Market)
Stage 3: Development
•User Interface
–Must be intuitive
•Emotional Appeal
–High attention to detail
–Darker colours
Gate 4: Should we continue to develop?
Protocol check: Can we develop an appliance with these features?

Concept test: Do these features meet market needs?

 Stage 4: Market Testing & Product Validation
Undertake Gamma Testing for a period of 3 Months:

Randomly select participants from existing customer database

Invite participants to use the product for three months

Monadic Testing Methods - simply give them the product to interact with

Give very little instructions

Full control and open access to all features

Unstructured interview following trial period - What did/didn’t you like about the
refrigerator?

Primary goal - To ascertain whether product has been developed with the needs of
 Gate 5: Should We Launch This Product?
Key Question:

Have we developed a product with features relevant to our target market?

YES!

Do we possess sufficient resources for a powerful launch strategy?

YES!
Stage 5: Product Launch Process
Pre-launch

Promotion - High-intensity advertising campaign - Excellent opportunity to introduce product

through TVC campaign during the upcoming Olympic Games in Rio

Positioning - More Functional than upcoming Samsung

Smart Fridge - Greater Utility

Price - Proposed - $5800

Lower price than Samsung Smart
Fridge

Target High-income Busy Families - Time Poor

Segment -
 Product Launch
Product Launch - Product Rollout

Make use of existing LG supply chain channels

Target large stores & stores servicing high-income segments first

Expand based upon demand analysis

Slowly expand product into stores outside capitals where

there is an identified demand

Post-Launch Tracking -

Product Registration Incentives - Win a holiday for two to Rio