4.1.

Probles encountered by the company regarding the development/ production and the
marketing commercialization of the product.

Media is going through a time of huge transformation. Not just from a media agency point of
view, but across all parts of the value chain, from the media owners to the agencies and
ultimately the marketers and advertisers.

These changes are being driven by technology and associated social change, where media
channels are becoming more fragmented and the media consumer is more empowered than
ever before. Some are even becoming media in their own right through blogging and social
media so, the main problem was about creating a platform that bring toghether all this big
pool of protocols. Thats how LGs WebOs was born. An operating system that has some
history in mobile technology, was implemented in LG TVs in order to unify all the
fragmentation.

Also, in a nutshell those are the main problems encountered by the company:

Media Audience Measurement standardisation & methodologies for

individual media channels cross platform
Recruitment & Retention finding & retaining quality & relevant
people resources
Keeping Up to Date with constantly evolving market trends
Cost of continually evolving technology and research
Fragmenting Market & Increased Competition from other media &
channels ie social & owned media
Contracting Marketing Spend/Margins finding an effective business
model
Disconnect & lack of recognition of needs & expectations between
client, agency & media
Billing structures time & resources required verses monetary return
Increased focus on media Return on investment rather than brand
benefits

4.2. Proposed solutions to increase product profitability

LG Home Entertainment Company reported revenues of 4.33 trillion (USD 3.6 billion), down
2.3 percent from last years first quarter as TV shipments declined somewhat in the key
markets of North America and Europe. A solid operating margin of 7.7 percent was
accompanied by a 207 percent increase quarter-on-quarter in operating income,
demonstrating strong evidence of the growing demand for premium OLED and 4K OLED
TV products. Improved cost structure and cost competitiveness is expected to drive improved
profitability in the next quarter. So, as they did, in order to sell more, to increase the product
profitability we can propose some solutions like:
- offer promotions to customers (a free accessory like LG Magic Remote)
- create cheaper packages
- increase the quality of the building materials of the TV itself.
- cut out unprofitable products and services
- target new customers from within groups
4.3. Proposed solutions of new product features in order to increase the number of customers

Smart devices have been well on the way to being considered mass-market products over
the past few years. Gartners research essentially validates this notion, showing that consumer
uptake has caught up with the initial hype.
The adoption of smart technology marks yet another significant shift in the broadcasting
technology sector. With each new development, consumers are afforded an ever greater
experience when watching the latest TV shows or films, as well as the sheer quantity of
content that internet connection allows. The vast majority of smart TVs will connect to on-
demand and streaming services, for example.
The popularity of smart TVs coincides with the emergence of the connected home (both
conceptually and in reality) a revolution that offers the potential to change the way we all
live for the better. The connected home is fundamentally about enabling devices to
communicate with one another, something that may sound scary to the uninitiated, but
actually possesses huge positive potential.
This potential has been highlighted by LGs recent announcement that by 2020 all its
products, (yes, thats everything LG makes) from phones to TVs to air conditioning to fridges
will be connected. In other words LG wants everything it produces to be able to talk to every
other device.
Most interestingly, the consumer electronics giant has demonstrated how the smart TV could
in reality become the central hub of the smart (connected) home.
It is almost inevitable that in the future (connected) home the smart TV will be a focal point
within the home and therefore it would make sense for information to be directed to it. It has
the biggest screen, often commands the majority of attention in shared living spaces and
already acts as a kind of unofficial focal point.

Also, TVs will always improove the quality of their displays in a natural process of
developing technologies

5.1 Problems encountered by consumers in using the product

- the device turns on and off by itself
- the TV is not automatically tuning or changing to other channels is also an
issue with these devices
- the complication of the fuses; the devices turns black followed by a popping
sound.
- some users have complained that their LG LED TVs do not configure some
settings like the Wi-Fi or the Miracast connection is getting lost
5.2 Proposed solutions to improve the product aesthetics of the product from consumer
perspective
- introduce premium building materials like aluminium, wood, leather
- introduce the possibility that the customer can personalize his TV
- create a premium package in order that the customer to get excited about the
product
- update the software of the TV with a more friendly interface
5.3 Proposed solutions to improve the usability of the product form consumer perspective
- shape the remote controller in an anatomic way in order to be easier to handle.
- let the TV to be controlled by the SmartPhone, create an app for that.
- let the TV to be controlled by the devices connected to the smartphone (Hub
Interaction)