1. 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

2. Zenith HDTV Marketing Strategy
Case Introduction
Zenith Electronics Corporation is a subsidiary of LG Corporation, a South Korean conglomerate. Before being
acquired by LG in 1999, it was an American manufacturer of televisions and other consumer electronics head
quartered at Lincolnshire, Illinois. Zenith was the inventor of subscription television and the modern remote
control, color picture tubes, color computer displays, cable products and high tech electronics components such
as 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 the
marketing strategy, keeping in mind that it was a new technology with better picture and sound quality. Their
key focus was to market the product using forecasts for HDTV demand during the year 1992 to 2000 under most
likely, 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 2
1) ASPECT RATIO ANALYSIS
PRIMARY OBJECTIVE: To measure consumer preferences for TV aspect ratio (16:9 or 4:3) with equal height
and/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.

3. 2) PRICE, PROMOTION, PLACE AND PEOPLE PRODUCT ANALYSIS
Price: 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 other
additional 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 get
more 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 sale
offers.
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 Analysis
In 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 extensive
and it is relatively cheaper than carrying out primary research. They should also target dealers as they could
have a considerable amount of influence when it came to helping the customers adopt a new idea such as that
of HDTV.
QUESTION
 What are the forecasts for HDTV demand from 1992 to the year 2000 under a pessimistic, most likely
and optimistic scenario?
ANSWER
Pessimistic 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.

4. Sales will suffer and HDTV would only be able to penetrate 3-4 % of US households. It would be a mix of the
early 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 US
households 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.