A

PROJECT REPORT

ON

MARKET ANALYSIS OF LG CONSUMER DURABLES & DEALER

DEVELOPMENT

Submitted By

Kamal Raj Saini

(MBA-IV SEM), In Partial Fulfillment for Degree of Master of Business

Administration during the year 2007-09

SIKKIM MANIPAL UNIVERSITY

LEARNING CENTRE – PIIT (01531), BANIPARK, JAIPUR

1

ACKNOWLEDGEMENT

It is indeed of great moment to pleasure to express my senses of

per found gratitude & indebtness to all the people who have been

instrumental in making my tanning a rich experience. I got the

opportunity to do a challenging project in LG ELECTRONIC

(INDIA) The project is the important part of our study and gives

us a real practical exposure to the corporate world and it is almost

impossible to do the same without the guidance of peoples in and

around us. Similarly while doing the topic “Market Survey on

LG consumer durables & dealer development as a summer

trainee I took many my projects in help.

This project report could not have been completed without

the guidance of our COORDINATOR - MBA, Mr. SATYAJEET

RAO & project guide Mr. GAURAV MALPANI. Their timely

help & encouragement helped me to complete this project

successfully.

I am thankful to MR. Sataya mohenty marketing manager Pune

for giving me opportunity to work at LG ELECTRONIC as a

consumer durables and dealer development research.

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I am thankful to Mr.K.R SINGH (Branch Manager),Mr.Rohan

Laddha (Area sales manager) and Mr.Mandar Damle

(Logistic head) for their encouragement and able guidance at

every stage of my training work.

3

CONSUMER DURABLES SECTOR

AN

MARKET ANALYSIS

OF

LG COMPANY GUIDE : FACULTY GUIDE :

MR. Sataya mohenty Gaurav Malpani

(Marketing Manager) (Lect.)

LG INDIA (PUNE) PIIT (Learning centre)

Sikkim Manipal University,

4

No. Particulars Page No

1 Executive Summary

2 Objective & Scope of Project

3 Company Profile

4 Theoretical Background**

5 Projections

6 Bibliography

5

6

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INTRODUCTION TO THE TOPIC

Indian Consumer durables market used to be dominated

by few domestic players like godrej Voltas allwyn and kalvinater.

But post liberalization much foreign company have entered into

Indian market dethroning the Indian player and dominating Indian

market the major categories in the market CTV, REFRIGRATOR,

AIR CONDTIONERS AND WASHING MACHINE

India being the second largest growing economy with

huge consumer class has resulted in consumer durables as the

fastest growing industries in India LG, SAMSUNG the two

Korean companies has been maintaining the lead in the industries

with LG being leader in almost all the categories.

The rural market is growing faster than the urban market, although

the penetration level is much lower .The CTV segment is expected 8

Executive summary

to the largest contributing segment to the overall growth the

industry. The rising income levels double-income families and

consumer awareness are the main growth drivers of the industries.

Consumer durables major LG Electronics India Pvt Ltd (LGEIL)

will invest nearly Rs 500 crore in India this year in research and

development, brand-building and other marketing initiatives.

The company, having a turnover of Rs 9,500 crore and market

share of 26 per cent, is investing Rs 360 crore on brand-building

and other marketing initiatives and around Rs 140 crore on

research and development, besides launching new platforms in

information technology and related areas,

LG’s innovative ‘211 campaign’ to provide quality after-sales

service, will also be expanded from the existing 22 to 40 cities by

next month,

The campaign, for which IT infrastructure has been set up,

includes the company’s response to customer complaint within

two hours. The fixing time for complaints varies from one hour to

a maximum of 24 hours.

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Scope of project

This project gives me great exposure to the consumer durable

market because it includes product knowledge and the filed job in

which I have visited the store comes under the region of Pune.

During this project I also took part in the exhibition of LG which

held for the purpose branding and awareness of LG product. This

project helps me to know the market practically. My job was

during this project to see the market share and also the display

share of the LG product in the store. LG always insist the 50%

display share of LG product because LG believes that “JO

DIKHTA HAI WO BIKTA HAI”.

My job include while visiting the shops

1. Calculate the display share of the LG product in every shop

which comes under Pune region.

2. Collect the data of actual monthly sale of the LG product in

every shop.

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3. Check the availability of LG catalogue and the POPs in the

store.

4. Find out the problems that the dealer are facing while sailing

the LG product.

5. Find out the costumer response for the LG product by asking

the owner of the shop.

6. Find out the distributer name from whom they purchasing

their product and also weather they have direct dealership and

which brand.

7. Check that demo calls are attended or not

Key findings:-

1. By calculating the display share we found that in most of

store LG has 50% display share almost all categories.

2. By the actual monthly sale of particular store we came to

know the capacity of the store and how much product can

they sale.

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3. It helps us to know that weather dealer is capable of being a

direct dealer of LG or not and it also helps to find out the new

dealer who are capable of being the dealer of LG.

4. We also came to know while visiting the shops that there was

big problem of after sale service.

5. Many dealers were facing the problem of after sale service

because there is no follow up calls from LG.

6. Demo calls also not done properly.

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OBJECTIVES

OBJECTIVES OF THE STUDY

Primary objective

The main objective of filed survey during the project was to

find out the market share of the LG and also calculate the

display share.

Find out the positional dealer who can sale the LG product in

large volume.

The main objective of research was to identify potential

dealer and development these dealer. So LG can make them

their direct dealer.

This will ease the dependence on the some big dealer like

Maharashtra and Mahaveer electronics.

Find out the problem faced by the dealer in sales and the

distribution.

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Secondary objective

The Objective was to find out that how far the exhibitions are

helpful in branding,

While purchasing the consumer durables which parameter is

most important for the consumer?

Do the consumers prefer the financial facility for buying

consumer durable?

How frequently consumers change the consumer durable?

To enhances the knowledge of consumer durable market.

To increases the knowledge consumer durable product of LG.

To enhances the knowledge about the marketing and branding

activity.

15

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INTRODUCTION

INTRODUCTION CONSUMER DURABLES SECTOR

Before the liberalization of the Indian economy,

only a few companies like Kelvinator, Godrej, Allwyn, and

Voltas were the major players in the consumer durables

market, accounting for no less than 90% of the market.

Then, after the liberalization, foreign players like LG,

Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into

the picture. Today, these players control the major share

of the consumer durables market.

Consumer durables

market is expected to grow at 10-15% in 2007-2008. It is

growing very fast because of rise in living standards, easy

access to consumer finance, and wide range of choice, as

many foreign players are entering in the market

With the increase in income levels, easy availability of

finance, increase in consumer awareness, and

introduction of new models, the demand for consumer

durables has increased significantly. Products like

washing machines, air conditioners, microwave ovens,

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color televisions (CTVs) are no longer considered luxury

items. However, there are still very few players in

categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the

emergence of MNCs, exchange offers, discounts, and

intense competition. The market share of MNCs in

consumer durables sector is 65%. MNC's major target is

the growing middle class of India. MNCs offer superior

technology to the

Consumers whereas the Indian companies

compete on the basis of firm grasp of the local market,

their well-acknowledged brands, and hold over wide

distribution network. However, the penetration level of the

consumer durables is still low in India.

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Classification of consumer durables sector

1. Consumer electronic include vcd/dvd, home theatre,

music player, color television (CTVs), cameras,

camcorders, portable audio, Hi-Fi, etc

2. White goods include dishwashers, air conditioners,

heaters, washing machines, refrigerators, vacuum

cleaners, kitchen appliances, non-kitchen appliances,

microwaves, built-in appliances, Tumble dryer, personal

care product etc.

3. Moulded luggage include plastics

4. Clocks and watches

5. Mobile phones

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Scope

1. In term of purchasing power parity (ppp), India is the 4th

largest economy in the world and overtake Japan in the near

future become the 3rd largest.

2. Indian consumer durable market is expected to reach $400

billion by on 2010

3. India has the youngest population amongst the major

countries. There are lot of people in the different income

categories nearly the two third population is below the age of

35 and nearly 50% is below 25.

4. There are 56 million people in middle class, who are earning

us$4,400-US$21,800 a year. And there are 6 million rich

household in India.

5. The upper-middle and high-income household in urban areas

are expected to grew to 38.2 million in 2007 as against 14.6

million in 2000.

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Opportunity

1. In India the penetration level of white goods is lower as

compared to other developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e.increase in purchasing power of

consumers.

5. Easy availability of finance.

Threats

Higher import duties on row materials.

Cheap imports from Singapore, China and from other Asian

countries.

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Brands in consumer electronic sector

MNCs NATIONAL REGIONAL

LG )

SAMSUNG ) KOREA ONIDA BUSH

HYUNDAI ) VIDEOCON CROWN

BPL SALORA

TCL ) CHINA GODREJ T-SERIES

HAIER ) VOLTAS WESTON

IFB BELTAK

PHILIPS ) HOLLAND OSKAR

PANASONIC )

SHARP )

HITACHI )

SANSUI ) JAPAN

AKAI )

AIWA

WHIRLPOOL )

ELECTROLUX

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TODAY Consumer durables sector is characterized by the

emergence of MNCs, exchange offers, discounts, and intense

competition. The market share of MNCs in consumer durables

sector is 65%. MNC's major target is the growing middle class of

India. MNCs offer superior technology to the

LG, SAMSUNG the two Korean companies has been

maintaining the lead in the industries with LG being leader in

almost all the categories.

The company, having a turnover of Rs 9,500 crore and market

share of 26 per cent, is investing Rs 360 crore on brand-building

and other marketing initiatives and around Rs 140 crore on

research and development, besides launching new platforms in

information technology and related areas,

LG Electronics is one of the leading companies in the field of

electronics with a global presence in many countries. . Before

briefing, I have divided the introduction part into three main sub

parts.

1. LG Global

2. LG India

3. LG Pune

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24

COMPANY PROFILE

COMPANY PROFILE

Facts & Figures

Established In India : May 1997

Managing Director : Mr. Moon B. Shin

Corporate Office : Plot no 51, Udyog Vihar, Surajpur

Kasna Road, Greater Noida (UP)

Corporate Website : http://www.in.lge.com

Manufacturing Units : Greater Noida (U.P.) & Pune

(Maharashtra)

Business Areas & Main Products

Category Main Products

Consumer Electronics

LCD TV , Plasma Display , Display Panel, Color Television, Home Theatre System, Music system, DVD Recorder/Player, MP3 & MP4 Player

Home Appliances Room Air Conditioner, Commercial Air Conditioner , Refrigerator, Washing Machine,

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Dishwasher, Microwave, Vacuum Cleaner

Computer Products

Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices

Mobile Phone Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset

CORPORATE OVERVIEW

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly

owned subsidiary of LG Electronics, South Korea. In India for a

decade now, LG is the market leader in consumer durables and

recognised as a leading technology innovator in the information 26

technology and mobile communications business . LG is the

acknowledged trendsetter for the consumer durable industry in

India with the fastest ever nationwide reach, latest global

technology and product innovation.

One of the most formidable brands, LGEIL has an impressive

portfolio of Consumer Electronics, Home Appliances, GSM

mobile phones and IT products.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG

Electronics, South Korea was established in January, 1997 after

clearance from the Foreign Investment Promotion Board(FIPB).

The trend of beating industry norms started with the fastest ever-

nationwide launch by LG in a period of 4 and 1/2 months with the

commencement of operations in May 1997. LG set up a state-of-

the art manufacturing facility at Greater Noida, near Delhi, in

1998, with an investment of Rs 500 Crores. This facility

manufactured Colour Televisions, Washing Machines, Air-

Conditioners and Microwave Ovens. During the year 2001, LG

also commenced the home production for its eco-friendly

Refrigerators and established its assembly line for its PC Monitors

at its Greater Noida manufacturing unit.The beginning of 2003

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saw the roll out of the first locally manufactured Direct Cool

Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit

in Pune, Maharashtra that commences operations in October 2004.

Covering over 50 acres, the facility manufactures LCD TV, GSM

Phones, Color Televisions, Air Conditioners, Refrigerators,

Microwave Ovens Color Monitors.

Both the Indian manufacturing units has been designed with the

latest technologies at par with international standards at South

Korea and are one of the most Eco-friendly units amongst all LG

manufacturing plants in the world.

LG has been able to craft out in ten years, a premium brand

positioning in the Indian market and is today the most preferred

brand in the segment

VISION

LG Electronics is pursuing the vision of becoming a true global

digital leader, attracting customers worldwide through its

innovative products and design. The company’s goal is to rank

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among the top 3 consumer electronics and telecommunications

companies in the world by 2010. To achieve this, we have

embraced the idea of “Great Company, Great People,” recognizing

that only great people can create a great company.

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Business Domains

THE DIGITAL FUTURE OF LG

Mobile communications, digital appliances, digital displays, and

digital media - LG is paving the way for the future.

Mobile Communications

LG is a global leader in mobile communications, specializing in

UMTS, CDMA, and GSM handsets. Thanks to its wide range of

wired and wireless options, the company is becoming a force to be

reckoned with on the international market.

In India LG is targeting GSM handset business in premium trend

setter segment, Camera & music segment & color screen segment

30

Digital Appliances

LG changing homes in many ways, offering customers exceptional

value and convenience. Innovative digital appliances from 100%

washer dryer with direct drive technology, built-in LCD TV

refrigerator, Lightwave cooking oven (solardom) to artcool split

air conditioner illustrate LG's commitment to digital convergence.

Digital Display

LG offers a wide range of digital display products, equipped with

customer-oriented designs and technologies. With its LCD TVs,

Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors LG is

pulling out all the stops to remain the frontrunner in today's digital

display industry.

Digital Media

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LG has a great interest in digital media and is continually

developing and producing digital convergence products that

promise to enrich the lives of its customers. Its main focus is on

producing high-definition, quality products in a variety of areas.

Corporate Social Responsibility (CSR)

With the advent of globalization in India, the concept of Corporate

Social Responsibility has emerged as one of the most important

aspects of corporate behavior. Acknowledging this responsibility

is crucial for an organization's sustainable development and future

access to the global market. A definite corporate social

responsibility(CSR) plan has therefore not only become an integral

part of an organization's brand building strategy, but has also

emerged as an important tool to enhance the organization's

credibility, attract potential investors and clients and employ the

best of industry talent.

As a leading corporate in India, we at LG believe that corporate

contribution to society when guided by self-interest results in long

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term goodwill building, and have therefore endeavored to assume

responsibility for the needs of its people, the environment and the

society. We have consistently looked beyond its immediate

business environment to address larger societal issues. This

concern springs from the belief that a true corporate vision must

embrace the wider community rather than just shareholders,

customers and suppliers.

At the same time, there is nothing idealistic about LG's CSR

vision, nor is it in conflict with hard-headed business sense. It is

purely an understanding on LG's part that the time, resources and

in-house professional expertise invested in social development

projects pay rich dividends to the company and the communities in

which it operates. Therefore at LG the message is clear: creating

profits can and should go hand-in-hand with generating goodwill.

Internal Culture

As we all know requirement of trained and experienced

Professional with the desired mindset is the need of the hour for

any Organization to Survive and Grow in this competitive

environment.

To cope with the growing expectations of business and in order to

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give the organization a competitive edge to the business we in LG

have streamlined the whole system by integrating the HR

fundamentals with Information Technology and have adopted

some practices unique to LG.

LG as a brand and a market leader in India attracts candidates in

hordes and it's Industry leadership status serves as a major factor

in attracting employees. Therefore LG has the ability to hire the

best in the industry.

Once these candidates are hired, they undergo and exhaustive

induction programme for a duration of 14 days under which the

candidate is acquainted which each and every aspect of the

organization. A thorough integration with HR & Business

Processes takes place and the formulation of a KPI is done within

three days of taking the candidate onboard. Customer

Department/Vendor Department interaction also takes place.

In LG. Apart from this LG also has a family ambassador

programme where a dedicated mentor goes to the workers house

and talks to his family, their problems etc. and tries to make their

situation better. All workers are served lunch alongwith the other

senior employees so that no demarcation is made.

Infect lunch is first served to workers and then to the white collar

employees. On the first Monday of every month the workers meet

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the MD and 50 workers amongst of them get awards for

outstanding performance.

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HISTORY OF LG COMPANY

History of company

The company was originally established in 1958 as Gold Star,

producing radios, TVs, refrigerators, washing machines, and air

conditioners.

The LG Group was a merger of two Korean companies, Lucky and

Gold Star, from which the abbreviation of LG was derived. The

current "Life's good" slogan is a backronym. Before the corporate

Name change to LG, household products were sold under the

Brand name of Lucky, while electronic products were sold under

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the brand name of Gold Star. The Gold Star brand is still

perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired

Zenith Electronics of the United States.

LG Global

LG Electronics was established on October 1, 1958 (As a private

Company) and in 1959, LGE started manufacturing radios,

operating 77 subsidiaries around the world with over 72,000

employees worldwide it is one of the major giants in the consumer

durable domain worldwide. The company has as many as 27 R &

D centers and 5 design centers. It's global leading products include

residential air conditioners, DVD players, CDMA handsets, home

theatre systems and optical storage systems. LG globally believes

in the philosophy of "Great Company, Great People," whereby

only great people can create a great company.

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The company's growth strategy is based on "fast innovation" and

"fast growth", through three core capabilities: product leadership,

market leadership, and people-centered leadership.

The company has a strong corporate culture fostering innovation,

pioneering spirit and transparent management across subsidiary

and believes in empowering employees to achieve leadership.

Digital TV, PDP, Monitor, CD-ROM Drives, DVD-ROM Drives,

CD Rewritable Recorder, VCR, DVD Player, Audio, Security

System, Recording Media, Video Phone, PC Camera, Banking

Automatic System , PCB.

TDX, STAREX, optical switching systems, Implementation of

advanced IBS (Information Building System), System Integration

(SI) service, etc. Implementation of advanced IBS (Information

Building System), System Integration (SI) service, Handsets for

satellite, mobile multimedia and IMT-2000 services, etc.

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1958

GoldStar (today’s LG Electronics) established

1959

Korea’s first radio produced

1962

Radio exported to the US and Hong Kong as Korea’s first

1965

Korea’s first refrigerator produced

1966

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Korea’s first black & white TV produced

1968

Korea’s first air conditioner produced

1969

Korea’s first washing machine produced

1974

GoldStar Communications went public

1977

Color TV produced

1978

Exports surpassed US$100 million, a first for Korea’s electronics

industry

1980

First EU sales subsidiary in Germany (LGEWG) established

1982

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Color TV plant established in the US in Huntsville, Alabama

1984

Sales surpassed 1 trillion Won

1986

European-standard VCR plant established in Germany

1989

Sales subsidiary and a joint production subsidiary established in

Thailand

1990

Ireland-based design technology center established

1993

With the establishment of Huizhou subsidiary in China(LGEHZ),

marketing in China took full swing

1995

Company name changed to LG Electronics and US-based Zenith

acquired

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1997

40-inch Plasma TV and the world’s first IC set for DTVs

developed India production subsidiary (LGEIL) established

1998

World’s first 60-inch Plasma TV developed

1999

LG.Philips LCD established

2000

LG Information & Communications merged The world’s first

Internet-enabled refrigerator launched Global sales of refrigerators

reached the number one position

2001

Asynchronous IMT-2000 equipment commercialized The world’s

first Internetenabled washing machine, air conditioner, and

microwave oven launched LG.Philips Displays, a joint venture

with Philips established

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2002

Under the LG Holding Company system, the Company spun off to

LG Electronics (LGE)& LG Electronics Investment (LGEI) The

first home network system commercialized in the global market

2003

World’s first synchronous-asynchronous IMT-2000 mobile phone

developed The world’s first 76-inch Plasma TV developed CDMA

mobile handsets took the largest share in the US and world CDMA

market Launched the world’s first Super Multi DVD Rewriter

2004

EVSB, the next-generation DTV transmission technology, chosen

to be the US/Canada DTV transmission standard by the US ATSC

All-in-one LG 55-inch LCD TV, the world’s first and largest

among LCD TVs, commercialized The world’s largest and first

71-inch Plasma TV commercialized The world’s first terrestrial

DMB phone developed Developed Wireless Speaker

Home Cinema System

2005

The world’s first DMB notebook commercialized The world’s

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slimmest TV commercialized The world’s largest102-inch Plasma

TV developed LG and Nortel Networks agreed to establish a joint

venture for telecommunication network equipment Satellite-based

DMB phonecommercialized The largest share seized in the global

CDMA market

2006

Launched the LG Shine, the second handset in the Black Label

Series Globally launched the steam washing machine and

interactive TV refrigerator Developed the world's first 100-inch

LCD TV Launched the world's largest Full HD 102-inch Plasma

TV (1080p) Developed the world's first dual-format high-

definition Disc Player& Drive

2007

Launches the industry's first dual-format, high-definition disc

player and drive Launches 120Hz Full HD LCD TV

Demonstrated the world-first MIMO 4G-Enabled technologies

with 3G LTE Won contract for GSMA's 3G campaign

2008

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Introduces new global brand identity: "Stylish design and smart

technology, in products that fit our consumer's lives."

Global Operation

LG Electronics is playing an active role in the world market with

its assertive global business policy. As a result, LG Electronics

controls 110 local subsidiaries in the world with around 82,000

executive and employees.

LG Group

1. LG.Philips LCD

2. LG Chemical

3. LG Telecom

4. LG Powercom

5. LG Twins

6. LG Dacom

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LG INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG

Electronics, South Korea was established in January 1997 after

clearance from the Foreign Investment Promotion Board (FIPB).

LG set up a state-of-the art manufacturing facility at Greater

Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna

Road, Greater Noida, India.

This facility manufactured Color Televisions, Washing Machines,

Air-Conditioners and Microwave Ovens.

''Company is setting up a chain of exclusive premium showrooms.

LG plans to launch 60 premium Brand Shoppes by the end of the

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first quarter of this year. At present, LG has a total of 83 LG stores

across the country, of which 45 are shoppes and 38 are exclusive

stores. Brand shoppes will be placed in the premium segment and

the target audience will comprise buyers interested in premium

and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive

store by having a more interactive environment and additional

lifestyle orientation on display so that the customer can actually

experience the LG products in his or her own home settings.

LG Electronics India Ltd (LGEIL), consumer durables leader with

27% market share, is planning a brand new image. To attract

inspirational and young consumers across India, company will roll

out a new marketing strategy. The exercise will cost the company

Rs 360 crore.

LG Electronics India is the fastest growing company in the

consumer electronics, home appliances, and computer peripherals

industry today.

LG Electronics is continually providing, superior technology

products & value for money to more than 50 lakh households in

India. LGEIL is celebrating the 11th anniversary this year.

47

LG Soft India the innovation wing of LG Electronics in

Bangalore is LG Electronics' largest R&D centre outside Korea.

We at LGSI focus on niche technology areas such as mobile

application development, digital video broadcast and biometrics

software and support LG Electronics with our expertise. Motivated

by a passion for technology, a strong work culture and loyalty to

the organization, we are determined to see LG become one of the

top three brands globally.

Prominent consumer electronic company, LG Electronics Inc. has

said that it expects the sale of its products in India to up by 15 per

cent in 2008. Moon Bum Shin, managing director of LG

Electronics India has said that the company has earmarked 4.8

billion rupees for investment purpose in India this year. The said

money will be used to market as well as manufacture new

products.

LG Electronics, which is originally a South Korean Company with

branch in India, informed that its sales of GSM mobile phones,

color televisions, air conditioners and other household goods in the

Indian market was to the tune of 95 billion rupees ($2.4 billion) in

2007. As per Shin's estimate, the sales in 2008 would be around

110 billion rupees.

48

In order to achieve its target, Shin said LG Electronics will

concentrate on catering to the high-end consumer market which

will help boost sales this year. India churns out six (6) per cent of

LG Electronics global revenues of $42 billion. The Indian branch

of LG exports to 40 countries.

India challenges

The challenges faced by LG when entered in Indian market

1. Low brand awareness about LG in India.

2. One of the last MNCs entered in India (Samsung, Panasonic

entered in 1995 in India).

3. High import duty

4. Compitition from local market players and other MNCs in

consumer durable segment.

5. Price sensitiveness of the Indian consumer

LGEI over comes these challenges to emerge as

Innovative marketing strategy

1. LG was the first brand to enter in cricket in big way a way, by

sponsoring the 1999 world cup followed it up in 2003 as well.

49

2. LG brought in four captains of the Indian cricket team to

endorse its products. LG invested more then US$ 8 million on

advertising and marketing in this sport.

3. LG has differentiated its product using technology and health

benefits. CTV has “Golden eye technology” Air conditioner

has “Health air system” and microwave ovens have the

“Health wave system”.

THE DIGITAL FUTURE OF LG

Mobile communications, digital appliances, digital displays, and

digital media - LG is paving the way for the future.

Mobile Communications

LG is a global leader in mobile communications, specializing in

UMTS, CDMA, and GSM handsets. Thanks to its wide range of

wired and wireless options, the company is becoming a force to be

reckoned with on the international market.

In India LG is targeting GSM handset business in premium trend

setter segment, Camera & music segment & color screen segment

(a) CDMA Handsets, 50

(b) GSM Handsets,

(c) 3G Handsets,

(d) Cellular Phones

Digital Appliances

LG changing homes in many ways, offering customers exceptional

value and convenience. Innovative digital appliances from 100%

washer dryer with direct drive technology, built-in LCD TV

refrigerator, Lightwave cooking oven (solardom) to artcool split

air conditioner illustrate LG's commitment to digital convergence.

a) Air Conditioners,

b) Refrigerators,

c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) Home Net,

g) Compressors for Air Conditioners and Refrigerators

51

Digital Display

LG offers a wide range of digital display products, equipped with

customer-oriented designs and technologies. With its LCD TVs,

Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors LG is

pulling out all the stops to remain the frontrunner in today's digital

display industry.

a) Plasma TVs,

b) LCD TVs,

c) Micro Display Panel TVs,

d) Monitors,

e) PDP Modules,

f) OLED Panels,

g) USB Memory,

h) Flat Panel Computer Monitors

Digital Media

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LG has a great interest in digital media and is continually

developing and producing digital convergence products that

promise to enrich the lives of its customers. Its main focus is on

producing high-definition, quality products in a variety of areas.

a) Home Theater Systems,

b) DVD Recorders,

c) Super Multi DVD Rewriters,

d) CD±RW,

e) Notebook PCs,

f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players,

j) New Karaoke Systems,

k) Car Infotainment

VISION

Global Top 3 by 2010

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Global Top 3 Electronic/Telecommunication company

GROWTH STRATEGY

“Fast innovation, Fast growth”

CORE COMPETENCY

“Product leadership, Market leadership, People

leadership”

CORPORATE CULTURE

No excuse, “we” not “I”, Fun workplace

BRAND IDENTITY

THE LG BRAND COMPRISES FOUR BASIC ELEMENTS: VALUES, INNOVATION, PEOPLE, AND PASSION.

Positioning Statement

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LG strives to enhance the customer’s life (and lifestyle) with

intelligent features, intuitive functionality, and exceptional

performance. Choosing LG is a form of self-expression and self-

satisfaction. Our customer will take pride in owning the amazing

and take comfort in knowing he/she made a smart, informed

decision.

 

LG BRAND IDENTITY:-

The brand of LG is delightfully smart. LG strives to enhance the

customer’s life and lifestyle with intelligent features, institutive

functionality and exceptional performance.

The brand platform:-

The LG brand is composed of four basic elements –

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1. Value

2. Promise

3. Benefits

4. Personality

The Brands core Value that never changes.

a. Trust,

b. Innovation,

c. People

d. Passion

The benefits that are consistently delivered to the customer

includes

Reliable products

Simple design

Ease of use

Extraordinary Experience

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Personality describes the human characteristic that are expressed

to the customer through

Trustworthy, Considerate

Practical, Friendly

Brand Platform

The LG brand comprises four basic elements: Values,

Innovation, People, and Passion

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SLOGAN

58

" LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL MAKE YOUR LIFE GOOD.

Our slogan, 'Life's Good' best expresses our brand's values,

promises, benefits and personality. It is an ultimate expression for

what our brand stands for and what we strive to deliver

continuously. LG's delightfully smart products will make your life

good.

The LG Electronics Life's Good signature consists of the LG

logo, seal, and the slogan, "Life's Good" set in Charlotte

sans typeface curved around the LG symbol. The curving of

the slogan reinforces LG's personality and uniqueness. The

consistent usage of this signature clearly establishes the

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unique identity of the company and unifies every division

and product from LG Electronics across the globe.

THE SYMBOL

" THE FACE OF THE FUTURE. FIND OUT ABOUT THE

MEANING AND INSPIRATION BEHIND LG'S LOGO

DESIGN.

The letters "L" and "G" in a circle symbolize the world, future,

youth, humanity, and technology. Our philosophy is based on

Humanity. Also, it represents LG's efforts to keep close

relationships with our customers around the world.

The symbol consists of two elements: the LG logo in LG Grey and

the stylized image of a human face in the unique LG Red color.

Red, the main color, represents our friendliness, and also gives a

strong impression of LG's commitment to deliver the best.

Therefore, the shape or the color of this symbol must never be

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changed.

Design

The circle symbolizes the globe. The stylized image of a smiling

face in the symbol conveys friendliness and approachability.

Overall, LG’s symbol represents the world, future, youth,

humanity, and technology.

One eye

Goal-oriented, focused, confident.Upper- right hand space

Intentionally left blank and asymmetric, which represents LG's

creativity and adaptability to changes.

Colors

LG Red, the main color, symbolizes friendliness, and also gives a 61

strong impression of LG's commitment to be the best. LG Grey

represents technology and reliability. Brand Identity Learn about

the meaning behind the LG brand.

The symbol consists of two elements.

1. The logo in LG gray

2. The stylized image of human face in the unique LG red color.

he slogan of LG is “Life’s Good”. It expresses “ Brand’s Value,

Promises, Benefits , Personality.

THE PARTNERSHIP

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LG Electronics chooses to promote harmony and build

constructively on a labor-management relationship rather than an

employee-employer relationship. This illustrates that management

and workers are not in a vertical relationship, but in a horizontal

one.

This culture is necessary for LG Electronics as it strives to become

one of the world's top companies. Such a relationship is

transformed into a value-creation relationship whereby both

parties endeavor to address mutual problems and create new

values together.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying

business opportunities through various associative

relationships with some of the world's leading companies.

LG Electronics is striving to become number one in the world

by mingling in various business and technological fields and

making strategic alliances with world famous companies.

"Strategic association between corporations," in which companies

with different infrastructures cooperate in the fast-developing 21st

century business field, is of key significance in terms of

strengthening the existing industry and creating a new one.

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LG Electronics will do its best to create new products and

services with an open mind, while developing new technologies

and business fields through various associations with some of the

world's most successful companies.

1. 3M

2. SUN

3. YAHOO

4. PHILLIPS

5. TOYOTA

6. MICROSOFT

7. HP

8. GOOGLE

9. GE

10. INTEL

11. NORTEL

12. HITACHI

13. PRADA

14. RENESAS

15. TOSHIBA

16. BESTBUY

And the number follows many more…………………………..

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In Feb. 2007 LG Electronics and Yahoo formed a strategic

alliance. Yahoo mobile services will be available from LG mobile.

This service is targeting 10 million LG mobile phones in over 70

countries.

In Mar. 2007 LG Electronics and Google formed a strategic

alliance.

Both companies will work together to release, market, and offer

LG mobile phones with Google services (search engine, map,

email, and blogs.)

The Internal Culture of LG:

65

LG practices four cultures

1. Learning Culture

2. Boundary less Environment

3. A Carrier

4. Growth

According to LG, the Learning Culture continuously helps the

employee to learn more and more to develop the habit of

continuous learning.

Boundary less Environment means that there is no difference

between the levels of employees. There is transparency between

the work and mutual understanding between all the employees.

A carrier is highly growing in LG and one who is the employee

can develop their carrier largely. A new comer will feel fully

comfortable in the company and for a new comer the company is

very helpful in the overall growth of personality.

Growth in LG is very high for those who are in the company and

for those who want to join in LG. The company is growing with

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fast innovation and the BLUE Ocean strategy is one of the

examples of growth.

Mission

The mission of LG is to provide the customers with utmost

satisfaction through leadership.

The fundamental policy of development is to secure product

leadership that the

Customers may have the utmost satisfaction.

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MD MESSAGE

Moon B. Shin

Managing Director

2007 has been a landmark year for LG, as it saw the company

achieved a monumental target of Rs 9500 crores and reiterate its

leadership in the Indian Consumer durable Industry. Besides this,

it also launched path breaking products such as the Pearl Black

TV, Home Theatre Sytems and the Viewty Phone which were a

result of LG's deep rooted commitment to providing exceptional

values to its customers and enhancing their lives.

LG also won accolades in various consumer preference surveys,

including the Reader's Digest "Asia's Trusted Brands Survey" and

CNBC Awaaz's "India's Most Preferred Brands Award",

reinstating consumer faith in LG as a brand.

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MANAGEMENT PROFILE

Embedded in our corporation is the importance of 'Sharing

corporate benefits with the community and it is a timeless promise

that we adhere to. In its continued endeavors aimed at Corporate

Social Responsibility, LG has opened Primary Health Care Centre

at Ranjangaon, offering all basic facilities and free medication for

the patients from not just Ranjangaon, but seven neighboring

villages as well.

With the advent of 2008, it reiterates it's global vision and long

term goal of becoming a global top 3 player in all business areas

and building a unique competitive advantage in key businesses.

Going forward, we have set ourselves a targeted growth of 15% in

terms of turnover. While maintaining market leadership in home

appliances and consumer electronics, LG will aggressively

strengthen its competitiveness in mobile communications and Flat

panel displays. Simultaneously, LG India will synergize it's

activities as a leading global electronics & telecom company with

premium value. India is currently the fastest growing economy in

the world, with disposable incomes increasing tremendously.

Therefore we are increasingly focusing on premium products in

each category, so tap this growing base of consumer who want the

very best.

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Finally, LG will continue to foster innovative management to

maximize productivity. These activities will form a strong base for

continued growth in the foreseeable future.

SINGAPORE, JANUARY 7 2009 - LG Electronics Asia

has appointed Arthur Huang and Adrian Lim corporate

marketing director and marketing director, consumer

electronics, respectively.

Huang and Lim will oversee LG’s marketing operations in

Southwest and Southeast Asia, including Australia.

Both executives are based in Singapore.

Huang is charged with developing the company’s brand

across the region. He was previously head of retail at

Sony Ericsson’s regional operations, based out of

Singapore. Huang also held the general manger role for Sony

Ericsson's Thai operations.

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Lim will manage marketing strategies in the region, with the aim

of revenue generation. He will also spearhead brand awareness

activities, which include product campaigns and launches, for

LG’s consumer electronic product divisions. Lim was most

recently director of product management at Dell Global BV. His

portfolio includes marketing roles at Motorola, Philips and Sony.

Both Huang and Lim report to Nam Young Woo, president and

CEO, LG Electronics Asia.

Mr. Amitabh Tiwari

Company: LG

Based: India

Designation: Marketing Head

This is a short snippet of interview conducted by ITVoir Team

with Mr. Amitabh Tiwari  Marketing Head, LG, India.

MR. Sataya mohenty

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marketing manager Pune

Mr. Sataya Mohenty is the Managing Manager in Pune Barnch of

LG India.

Y V Verma,

director HR and management system, LG Electronics

Mr.K.R SINGH

(Branch Manager)

Mr.Rohan Laddha

(Area sales manager)

Mr.Mandar Damle

(Logistic head)

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We are focusing on six development areas to become the product

leader.

1. New Machine

2. Reliability

3. Conventional Installation

4. Environment Friendly Product

5. Low Noise & Vibration

6. Energy Saving

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PRODUCT PROFILE

Flat Panel Displays

CTV

GSM

Air Conditioners

Refrigerators

Washing Machines

Microwave Ovens

NoteBooks

Audios

Vacuum Cleaners

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Television

LG Plasma Display Panels

LG Electronics has achieved new dimensions of technological

excellence among the Plasma Display Panel manufacturers. The

PDP is available in sizes of 40, 42, 50, 60 and 71 inch

internationally.

LG has world’s slimmest panel at 78 mm to the world’s biggest

panel at 71”. The company is the only brand in India which offers

“The largest range of models in the PDP category. Cutting Edge

Technology such as Image Stick minimization, Orbiter,

Whitewash, Flexi PIP, Double Window Screen are some of the

features which makes LG’s PDPs, the best made

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LCD TV

Intelligent Fashion IconThe spohisticated styling of the 2008 LG LCD TV transforms pure

design into a revolution in home entertainment.

PLASMA TV

A new dimension in Design

LG Plasma produces natural pictures that allow you to enjoy

sports, movies and a lot more. All this without any eye fatigue.

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ULTRASLIM   TV

LG Ultra slim-World's slimmest television.

Designed to response your senses,it's a work of art

whose stunning looks are perfectly complemented by it's stunning

performance.

FLAT TV

Experience the LG Flatron with XD technology and get in

touch with reality. Digital processing enhances the quality &

resolution of picture, it makes everything you watch come alive.

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LG Audio

LG now has a comprehensive lineup of 17 products to offer to its

consumers in the Audio segment, making it one of the largest line-

ups in the audio market.

LG’s Audio range comprises of the most progressive range of

wireless MP4 Home Theatres, MP3 Home Cinema Systems and

Room Theatre Systems. LGEIL has one of the widest product

portfolios in Audio category at the moment and further plans to

enhance the portfolio with a slew of futuristic launches. LG Audio

systems come equipped with wireless speaker systems, which

works on 2.44 GHz frequency, which is far superior technology

than offered by any other company in India. The highlight of LG

audio segment is the Next Gen Karaoke System (NKS) developed

by the company.

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HOME THEATRE SYSTEM

Experience the theater right in your own living room. LG

makes this real with its state-of-the-art home theatres.

MUSIC SYSTEM

Touch your senses. Touch your feelings. Touch your soul.

Touch the LG range of audio visual system.

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DVD PLAYER

The technology of tomorrow is here. Make your entertainment

come alive. Music,Movie,Images and a lot more you want to enjoy

on your TV.

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Refrigerator

DIOS

LG India launched the World’s First TV Refrigerator – TV DIOS with a

13-inch hi-definition TFT LCD TV installed at the center of its door. The

600 litres TV DIOS also has a built-in radio tuner providing access to FM

stations and is supported by built-in speakers. It has an astounding silver

nano-antibacterial and nano-carbon deodorizing technology which has won

LG the ‘KT new technology mark.’ Thus, this refrigerator brings together

the best in food preservation and storage with multi-media functions as a

quintessential digital home appliance. LG has a complete range of DIOS

with over 30 different models world over.

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FROST FREE REFRIGERATOR

Usher in the Health in your life with LG's New range of frost

free refrigerators. With the revolutionary Green Ion Door

Cooling Technology, enjoy the assurance of healthy living.

FROST FREELG has launched an exhaustive range of feature

rich diamond cut frost-free refrigerators ranging from a capacity of

230L to 751L. The company currently has six variants in 230 liters

capacity, four variants in 250 liters and five variants each in 280

liters and 310 liters capacity respectively. The company also

launched two variants each in 350 litres & 390 litres capacity and

6 variants in 400+ range.

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SIDE BY SIDE REFRIGERATOR

The ultimate Affluence Statement Share the good life with our

side by side range of refrigerators with state of the art technologies

and international styling.

DIRECT COOL REFRIGERATOR

The all new range of direct cool refrigerators is as talented as

you are, with superb looks, faster ice making, colors and many

more features. Now welcome another perfectionist in your life.

The new range of refrigerators will now be available with more

value added features such as a MICOM panel, Kangaroo Tray,

Anti-bacteria gasket, sliding door bin in addition to the already

existing features like FIR Lamp, Cell Fresh Crisper, Door Cooling,

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humidity controller which helps in keeping your food fresh,

healthy and crispy for long. Anti-Bacteria gasket provides bacteria

free zone, which delays the formation of molds, hence keeping

food fresh and healthy. Sliding door bin has further addressed the

problem faced by users in storing 2-liter bottles in their

refrigerators. This multi-utility shelf provides convenience in

storing bigger bottles and can be detached to keep more bottles.

The Kangaroo tray glides open smoothly and has a pullout; full-

width front section that provides two tiers of storage, making

Vegetable compartment access easier than ever and with the

drawer's unique design, there is plenty of storage room for all

shapes and sizes of fruits and vegetables.

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Washing Machine

LG Electronics, has unveiled the latest front loading TROMM

series, drum washing machines. Its futuristic wash features such as

Fuzzy Logic technology ensures that once you press the start

button, smart sensors automatically detect the laundry load and

water level. Fuzzy Logic also detects machine imbalance and

excessive foam formation and adjusts the same for the best

washing performance. At the touch of a button LG TROMM saves

water and energy giving you a clean and convenient wash.

DISH WASHER

Born out of revolutionary technology to ensure hygienic and germ

free meals. Bring home one and discover why millions of people

across the world are switching to a new way of washing dishes.

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WASHER DRYER

The Washer & Dryer combo offers convenient, space saving

solution to all your laundry needs, both in washing And drying. It's

revolutionary direct drive technology ensures perfect wash and

less noise and vibrations.

The LG Dishwasher is a technological miracle with high

performance levels, dependability, energy efficiency and

convenience. The uniqueness of the LG dishwasher is that it

enables 50% fold down times to enable washing of large vessels,

various washing systems and an aqua stop which will detect water

leaks. It also has a triple filter which increases the efficiency of use

of water and energy . The dishwasher can be hailed as the gadget

of the millennium since it requires least water consumption has

more programs & comes in sleek design.

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TOP LOAD WASHING MACHINE

Smart wash systems that takes washing off your minds so that

you can spend time better.Loaded with the i-sensor technology it

can sense everything and work for optimal efficiency.

LG’s Top loading range of fully automatic washing machines

comes equipped with the revolutionary

i Sensor technology. The i-Sensor technology is a combination of

7 sensors against the normal 4 present in other machines, which

delivers a supreme wash. The hardness, detergent and temperature

sensors are the additional sensors. 7-water level sensors help in

power saving of upto 15% more than regular washing machines.

LG also displayed its Turbodrum and 3 step wash range of

machines which delivers best towards washing and rinsing

performance. The washing machines also come with safety

features such as imbalance and door lock sensor with child-lock

feature. The machines are equipped with self tub clean system for

better hygiene . All these superb features enable washing that

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offers tangle free clothes, less wear and tear and complete yet

gentle cleaning .

STEAM   WASHER DRYER  

New avenue in laundry technology is rising in the form of

Steam.By using the heat and motion energy of water vapour for a

more than-effective wash, LG brings you the innovative Steam

Washer Dryer.

The Dryer comes loaded with latest condensing technology for

drying clothes thus eliminating the need for air vent and duct

which is commonly observed in current Indian offerings . It has

dual lint filter and can handle bulk load upto 7 Kg . Each LG

solution comes out with the 2-year warranty and assured service

support. Aesthetically very appealing every LG product has a

unique blend of eye-catching design, simple controls and superb

washing and drying solutions.

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FRONT LOAD WASHING MACHINE

The ultra hi-tech range of machines with advanced features that

makes washing easy.Features such baby care, Qiuck 30 and Bio

wash are deisgned to make life's good.

SEMI AUTOMATIC

More than cleaning its the care. Get thourough and gentle

washes with the Punch + 3 technology.It generates micro-eddies

for a perfect wash and minimises the tangling.

LGEIL has a total line up of 11 models in SAWM offering

capacity of 6.2, 6.5, 7.0 & 7.2 Kgs. The highlight of the Semi

Automatic Range was India’s first 6.5 Kg capacity semi-automatic

washing machine, developed through the efforts of LGEIL’s

robust in house R&D & Product Planning Team, with an 89

investment of over 25 crores. This washing machine has been

designed taking into consideration the aspirational as well as

functional needs of Indian consumer. The new Semi automatic

machine launched has international looks and elegance.

LG’s milestones in the Washing Machine category:

1997: LG launched its top loading washing machine from Korea

1998: Washing machine factory setup and start semi automatic

washing machine

1999: Washing machine export started and launched front loading

2000: Launched MICOM controlled Semi automatic WM

2001: Launched 10 Kg. Digital Display top loading and new range

of front loading

2002: Home production of top loading WM

2003: Became No.1 brand in WM category

2004: Launched TROMM

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Mobile Phone

LG Electronics has launched the its latest Hi-end Camera Phone

P7200, S5200, S5000 and M 6100 GSM Handset recently.

COOKIE

Join the touch generation. Seamless harmony of stylish design and

advanced technology. Powerpacked with 3.0" full touch LCD

screen, auto rotating display, active flash UI, full internet browsing

and much more.

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KC550

The 5 Mega pixel performer with Schneider-KREUZNACH

certified lens, with Image Stabilizer & ISO 800 for low light

condition. Enjoy motion sensor based games & view Image/Video

in portrait/landscape by Auto rotation.

KT610

Smart! Smartphone from LG with QWERTY keypad,Symbian S60

experience,3G and e-mail.

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KM501

Real Music Phone with dedicated music keys, equalizer & a 3.5

mm stereo jack with long battery life for extended music playback

time. Enjoy 2 MP Camera with video recording.

KM710

Ultimate portable music phone with interactive dual display with

long battery life for extended music playback time. Enjoy 3 MP

Camera with video recording.

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KS360

Fun Qwerty mobile for heavy message user.

KF510

Interactive Touch Lighting Navigation, 3MP Camera, 2.2" 262K

Colour TFT display, FM/BT , 10.9mm Slim Slider

DYNAMITE

Surprisingly loaded. Its a dynamite Slim and chic, loaded with

multi-media features, it's all your work and entertainment needs,

right inside your pocket.

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SECRET

The 5 Mega pixel performer with Neon Touch Navigation &

different speed of Video recording. Enjoy motion sensor based

games & view Image/Video in portrait/landscape by Auto rotation.

VIEWTY

View the Next Technology. Professional level camera phone

loaded with 5 mega pixel camera & manual focus. It's ISO 800+

smart light captures the best moments always even in low light.

KS20

Slim & stylish design. Windows based smart phone with large

full touch screen. Enrich high speed mobile internet experience

with HSDPA,Wi-Fi & push e-mail.

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KM380T

Ultimate Portable Music phone with i-pod like music sorting,

searching, rating with long battery life for extended music

playback time.

KF240T

Smooth Multimedia Slider with 2 MP Camera, 2" 262K Colour

TFT display, FM Radio/Bluetooth....

KF300

Elegant Clamshell for Sophisticated & Practical People96

KF600

Sleek & stylish phone with Interact Pad® (touch -based virtual

intuitive keypad), Dynamic themes (including Keith Haring art

work), 3 MP AF Camera, Handwriting Recognition, Music Player,

Yahoo go! & many more....

SHINE

Born to Shine. Effortlessly stylish, packed with sleek all-metal

body, multi-functional scroll key, wide mirror LCD display add to

its sparkle, so you easily outshine the rest.

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BULLET

Mobile Tracker Phone Irresistibly sleek and packed with

entertainment features. This range is equipped with mobile tracker

to save your phone from greedy hands.

LG P-7200

The P-7200 GSM is a high end phone with Unlimited Video

Recording which is trendy, light and easy to carry. It has a 2 mega

pixel camera with Video download and playback support,

integrated USB Memory of 64 MB which makes it a Plug & Play

device & a external memory card slot which can be upgraded till

1GB, MP3 Player with never before DJ repeat effect, Bluetooth,

E-mail, 1000 nos. Phonebook Memory etc. the handset is loaded

with accessories like Data Cable, 64 MB micro SD Card & a

Stereophonic Headset Kit.

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LG S-5200

The S-5200 GSM has up to 2 hours of Video Recording and is

MP3 enabled with DJ repeat effect, MP3 Ring tones, Stereo

Surround Sound, Bluetooth, 1.3 mega pixel camera, 4x digital

zoom, Video download & playback facility, 64 MB USB Disk

which makes it a Plug & Play device & USB Charging. The

handset has MMS, JAVA, GPRS, 262K Color Display, 1000

phone book memory, Tri-Band and comes with accessories like

Data Cable & a Stereophonic Headset Kit.

LG S-5000

The LG S-5000 the trendy looking phone with Granite Finish and

is one of the lightest handsets available in the market in India. Its

fitted with a 1.3 mega pixel camera, Bluetooth, MMS, GPRS,

JAVA, 262K Color Display, 1000 phone book memory etc. The

handset has Continuous Shoot, Photo Frames, Color Effects,

White Balance features.

LG M-6100

The M-6100’s is sure to gather attention with it’s its slim style and

sleek design. Weighing in at just 88 gm, this mini wonder is

equipped with a host of features.

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LG Air Conditioners

LG RAC 2007

LG took the lion's share of the market with 35% market share in

2006. With a quantity turnover of 5.5 lakhs and value turnover of

Rs.1000 Crs, we aim to achieve a qty and value turnover of 6.5

lakhs plus & Rs. 1300 Crs respectively.

a) NEW LAUNCHES IN 2007:

The New AC range of 2007 is par excellence on design front. The

new flat panel splits designed on the international trends in Air-

conditioning addressing the need of the consumer to enhance his

indoor aesthetics. The Deco Panel Series, Color Panel Series & the

Crystal Panel Series raise the bar on design in ACs. Being the first

to successfully launch Colored ACs in India, the new split range

has a variety of colors in Champagne Gold, Majestic Silver, Cool

Blue, Real Earth & Lustrous Pink to suit every indoor & mood.

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LG is also the first one to launch colour series in Window ACs.

The Luxurious Gold & Majestic Silver Windows is bound to raise

many eyebrows.

b) THE RAC RANGE 2007

Split ACs is the fastest growing segment for us. This window split

divide for us will be far higher than the industry ratio, at 40:60.

We have 115 models in our lineup: 28 models in Splits, 28 models

in Windows, 8 in Hot & Cold Segment, 3 in Floor standing, 7 in

Multi Splits & 32 models in Premium Artcool range & 6 models in

Single Inverter Range, 3 models in Multi Inverter Range. We have

also expanded our range to cover all capacity segments from 0.4Tr

to 2.5 Tr . We have created new capacity segments such as the

13000 BTU, 19000 BTU & 30000 BTU SAC addressing the need

of consumer for extra cooling in high ambient locations to provide

instant relief.

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INVERTER

Technology that delivers precise cooling or heating power as per

your choice. It works faster and saves energy while ensuring

uniform temperature. Consumer insight also showed us that

consumers are looking for ACs that consumes lesser power giving

them better efficiency. Hence the Inverter technology based Air

Conditioners that give the consumers a benefit of 44% power

savings over conventional ACs apart from 50% faster and uniform

heating & cooling. These ACs also use R-410 refrigerant which is

HCFC free & hence environment friendly.

FLOOR STANDING

Air Throw that reaches every corner. Get the advantage of

mobility and the purest of air. Ideal for homes and small offices

and most effective in saving power. The powerful motor can give a

reach upto 21 ft too. We will also sustain our focus on emerging

segments like Tower ACs & Multi Split ACs that finds special

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target audience in corporate segment, retail establishments,

restaurants and also large residential households.

HOT AND COLD AC

Optimum indoor weather management 365 days a year. We

also recognized the need of the consumer for year round air-

conditioning in northern and eastern India due to the climatic

conditions. We continue to strive to upgrade such potential

customers to our Hot & Cold AC range that gives "weather on

demand" to the consumer. Thus a consumer is able to live in an

environment comfortable to him all year through. In-depth

research showed that AC buyers apart from having low awareness

about the product also considered that heat convectors were far

more economical in terms of purchase & usage. The new

communication addresses the barriers to purchase for the Hot &

Cold range which includes over 50% savings on electricity bill,

lower power consumption & double quick heating over

convectors.

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ART COOL

Where art meets intelligence.Fine art is no longer confined to

museums. Grace your interiors with the finest in technology and

choicest of paintings. Decorate your rooms with your mood and

sense of style. To address the needs of convenient & comfortable

cooling, LG has launched the indigenously developed Advanced

sensor based Intelloeye Technology in 2007. The unique LG

IntelloEye feature gives unmatched cooling performance that no

other AC can provide at the touch of a button. When the

IntelloEye Mode is switched on, the inbuilt intelligent sensor

automatically detects the room temp and accordingly adjusts the

setting temperature, fan speed & swing settings of the Air

conditioner.

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MULTI SPLIT

Time to move on to cooling two rooms with a single outdoor

unit. To cater to emerging trend of cooling 2 or more rooms

simultaneously, we are also launching the Odd- Multi Splits to

extend our Multi Split range. These Multi splits in odd capacities

take care of cooling needs in apts with larger drawing room &

smaller bedrooms.

SPLIT AC

Presenting the wide range of Star Rated Split Air Conditioner

which not only save power but also provide faster cooling,

experience the revolutionary Aero Comfort System which

enable you to control your Air Conditioner & ceiling fan with a

single remote. We will also sustain our focus on emerging

segments like Tower ACs & Multi Split ACs that finds special

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target audience in corporate segment, retail establishments,

restaurants and also large residential households.

WINDOW AC

Presenting the wide range of Star Rated Window Air Conditioner

which not only save power but also provide faster cooling.

With an effort to bring experiential buying to the consumer, we

have also started a new concept in AC retailing called the AC

solution Plaza. These specialty stores sell the entire range room &

commercial air conditioners from 0.4Tr to 25 Tr and also provide

start to end AC Solution right from the designing, consultancy,

sales, after sales service of the AC projects. From a current 2

solution plazas in India, we plan to expand to 10 nos.

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Commercial AC

DUCTED TYPE AC

Perfection in technology with innovation. Concealed from sight

and ideal for large closed spaces. Gives high cooling efficiency

and uniform air flow distribution. Now with LCD remote controls

and Gold fins cooling large spaces becomes surprisingly easy.

CASSETTE TYPE AC

Here's taking the possibilities higher. Be it your home or your

own little business set-up decorate your walls to your taste without

bothering about the AC. Put it up. Literally speaking - put it up on

the roof.

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Microwave Oven

LG has launched their high end microwave ovens SolarDOM and

WaveDOM. The LG SolarDOM is currently the world’s best

microwave oven with its unique Light wave Technology which

enables three times faster cooking, high nutrient retention, better

energy efficiency (50% saving) and high convenience levels. The

Round Cavity design makes it easy to clean and at the same time

saves space. It has a Indian Auto Menu option, Multi Rotisserie

grill and Smart Guide Display. Consumers also have an option of

getting an installation kit if they have built-in type of kitchens.

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SOLAR DOM

The center piece of your kitchen that uses the revolutionary

lightwave technology.

It has a round cavity for larger dishes and cooks upto 4 times

faster.

GRILL

Now Grill or brown your dishes in addition to your regular

cooking.With a concealed heater now make your favourite Tikkas,

Kebabs and low favouritre recipes at home.

CONVECTION

Superior technology that lets you bake, brown or grill while

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cooking your food. The fan at the back regulates hot air effeciently

to bring out the best in your dishes.

SOLO

Perfect for every day cooking as it agitates the water, fats and

sugar to cook food. Food cooks uniformly and makes finger lickin

recipes in seconds.

The WaveDOM has unique Round Cavity feature which enables 3

times faster cooking, 12% bigger turntable size, 60% more usable

volume than a normal square cavity and easy to clean features.

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LG Vacuum Cleaner

LG presents its unique range of “Healthguard” Vacuum Cleaners

packed with advanced features which make them the most

powerful vacuum cleaners. The advanced technology in them can

draw out dirt and germs from the difficult places. It not only rids

the surfaces of dust particles as small as 0.3 microns but cleanses

the air of germs, mites and other harmful microbes.

It’s unique HEPA Filter is a multi layer filtration system which

removes particles 300 times smaller than human hair. The Sani

Punch nozzle, specially designed for cleaning beds and blankets

uses air pressure to dislodge the toughest of dust mites and

bacteria. is the 1300W-1400W power behind the machines. It also

has a convenient auto-retractable cord and a washable dust

collection jar. LG Healthguard Vacuum Cleaners comes in range

of 4 models – Roboking, Cyking, Extron punch, Spark and

Sweeper

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LG Notebooks

LG has launched two Premium state-of-the-art notebooks based on

the latest Intel’s Napa platform with dual CPU cores, developed in

INDIA by Intel. Dual cores combine two cores in a computer’s

CPU to deliver a 30 per cent better performance when

processing multiple tasks. These two LG Notebook models are

LG P1 Express Dual and LG M1 Express Dual with 15.4 inch

wide-screen and 15 inch TFT respectively.

These Notebooks from LG are a unique combination of design,

performance, entertainment and security. These LG Express Dual-

core processor based Notebooks are exquisitely designed to give

the users the experience of handling a sleek, gorgeous and

technologically rich notebooks.

Entertainment has also been given impetus and these LG

Notebooks are bundled with 5.1-channel Dolby Digital, SRS, 24-

bit HD Audio, 3-Port Analog Output, S-Video and many such

amazing features on select models.

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Model : R510-G.A2H3A2

Smart & Clean Martini Design(Moonrise Black colour)

Intel's Next Generation Montevina Platform(Centrino 2 Duo)

15.4" LED WXGA(1280x800) *Fine Bright Technology

Enhanced Mobility with Weight Saver

Hexa band antenna for Enhanced Connectivity Anywhere , Anytime

P300-S.AP66A2

Thinnest & lightest in its class - 1.65kg light & 21 mm thin

The most powerful graphics in 13.3" NVIDIA Geforce 8600M GS

Enhanced multimedia features (HDMI, SRS..)

S900-K.CPU5A2  

Enjoy unparalleled A/V excitement on 19” extra large screen (1400X900)

Hexaband antenna 1.3 Megapixel LG Smart Cam Dolby Home Theater,

10W (5W X 2) stereo speakers

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RD410-G.ADT4A2

14.1"LED WXGA Martini Design(Sunrise Red colour)

Intel's Next Generation Montevina Platform(Centrino 2 Duo)

Hexa band antenna

RD510-L.ADM7A2

15.4" LED WXGA Martini Design(Moonrise Black colour)

Intel's Next Generation Montevina Platform Hexa band antenna

RD410-L.ADA3A2

14.1" LED WXGA(1280x800) Intel's Next Generation

Martini Design(Sunrise Red colour) Hexa band antenna

RD405-A.CDE3A2

14.1 WXGA

Curlfit imprint design

1.3 megapixel web-cam

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X110-L.A7P1A2

Trendy Ultra portable Netbook

Clutch Design with Pink colour

With Energy Saving Processor

X110-L.A7B1A2

Trendy Ultra portable Netbook

Clutch Design with Black colour

With Energy Saving Processor

X110-L.A7W1A2

Trendy Ultra portable Netbook

Clutch Design with White colour

With Energy Saving Processor

Mobile Phone Accessories

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Batteries

Find a complete listing of standard and extended batteries for your LG

handset. You will also find a battery cover doors, for both standard and

extended batteries.

Standard Battery LG Standard Battery Standard Battery

Standard Battery Standard Battery Standard Battery

Standard Battery Standard Battery Standard Battery

Bluetooth

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LG offers the latest in Bluetooth accessories. Find the bluetooth headset

or bluetooth stereo headset you are looking for today.

Bluetooth Headset HBM-770Bluetooth Stereo Headset HBS-250 Bluetooth Headset HBM-750 (Black)

Bluetooth Headset HBM-770Bluetooth Headset HBM-310Solar Speakerphone (Car-Kit) HFB-500

CablesLG offers a wide selection of connectivity accessories for your cell

phone. We've got USB cables and Serial Data cables.

USB Data Cable Serial Data Cable USB Data CableUSB Data Cable

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Chargers

Chances are you have a standard charger for your cell phone, but

do you have a charger for your car and when you are on the go?

Don't get stuck without an option to charge your phone. LG has a

full offering of chargers for use in your car, while you are on the

go, as well as standard in home chargers.

Travel Charger

Vehicle Power Adapter

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Headsets/Handsfree/TTY

Headsets and Car Kits for your cell phone are a perfect investment in safetly and accessibility. LG offers a line of handsfree devices that give you a greater range of funtionality.

Headset Adapter Earbud Headset Stereo Headset Stereo Headset

Earbud Headset Earbud Headset Stereo Headset

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Editorials

LG Flatron TV sets - High-end features with looks to match

LG Flatron TV sets have re-defined the meaning of

entertainment by giving every LG Flatron TV owner an

opportunity to touch and feel the reality. Incorporating the latest

XD technology, the LG Flatron TV features digital processing

which enhances the quality and resolution of the picture. As a

result, what you see on the screen comes to you alive.

Bring Home an LG Television This Season

LG, known for setting a new trend in consumer electronics,

has introduced a whole new world of entertainment with its

trend setting television models. Combining technology with

innovation, LG TV sets offer you an opportunity to feel life

through them. While sophisticated technology is one of the

inherent features of every LG television, stylish looks and

supreme design also make them the most sought after premium

television brands.

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LG Mobile Phones: Let Technology Empower Your Life

The mobile communication industry has witnessed a

tremendous growth over the last few years.With mobile phones

gaining immense popularity, large number of companies have

entered into the field of manufacturing mobile phones. One can

find mobile phones ranging from the basic ones to the most

stylish and sleek handsets

LG Microwave - An appliance you must have in your kitchen

Cooking used to be quite tedious and boring. You had to spend

several hours in kitchen to serve a dainty meal to your loved ones.

However, that was then. The microwave ovens in general and the

LG microwave ovens in particular have changed all that - if not

completely than to a great extent.

Semi automatic machine by LG: A great digital appliance for every home

Washing machines are a common household item. They not only

make the clothes clean, but also save a lot of time of the user.

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LG Frost Free Refrigerator: A perfectionist in every sense

Frost free refrigerator is definitely a necessity for modern, busy

home owners who do not have time and patience to ensure proper

functioning of a manual refrigerator.

This is so because a manual refrigerator generally gets frost around

the cooling coils

LG Notebook Computers: Stylish, advanced and highly portable

Computer usage has grown tremendously over the last few years.

From being a rare item used by a few households, computer

products are found everywhere these days.

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The policy of quality assurance is to provide customers with

utmost satisfaction by supplying zero defects.

LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics.

LG will succeed through fair management practices and constantly

developing our business skill.

A) Honest with our customer

b) Providing great values to customer through constant innovation

& and development.

c) Equal opportunities

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Quality Innovation

d) Equal Treatment Management Principle - Creating value for

customer

LG market share of consumer appliances and consumer

electronic:-

LG position of CTV in various states in India

124

LG position of REF in various states in India

LG position of WM in various states in India

125

LG position of AC in various States in India

LG position of Audio & Home Theater in various in India

126

LG position of DVD in various in India

LG position of MWO in various states in India

127

This analysis is based on the ORG survey conducted by LG

which represent the LG position of different consumer durables in

various states in India. I select different brand in different category

as per the market share and the demand of product in market. This

analysis represents the LG market position during the period of

March 2008. It shows that LG has captured maximum market

share almost in every category. LG and Samsung have the

maximum market in consumer durable market but LG dominate

the almost all the category in consumer durable.

Prominent consumer electronic company, LG Electronics Inc. has

said that it expects the sale of its products in India to up by 15 per

cent in 2008. Moon Bum Shin, managing director of LG

Electronics India has said that the company has earmarked 4.8

billion rupees for investment purpose in India this year. The said

money will be used to market as well as manufacture new

products.

LG Electronics, informed that its sales of GSM mobile phones,

color televisions, air conditioners and other household goods in the

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Indian market was to the tune of 95 billion rupees ($2.4 billion) in

2007. As per Shin's estimate, the sales in 2008 would be around

110 billion rupees.

 In order to achieve its target, Shin said LG Electronics will

concentrate on catering to the high-end consumer market which

will help boost sales this year. India churns out six (6) per cent of

LG Electronics global revenues of $42 billion. The Indian branch

of LG exports to 40 countries. Shin remarked that the company

was targeting an increase of exports to $300 million in 2008 from

$230 million in 2007.

129

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Code of conduct of LG:

1. Responsibility and obligations to customers :

• Respect for Customers

• Creating Value

• Providing Value

2 Fair competition

• Pursuit of Free Competition

• Compliance with Laws and Regulations

3 Fair Transaction :

• Equal Opportunity

• Fair Transaction Procedure

• Support and Aid for Business Partners

4 Basic Ethics for Employees

• Basic Ethics

• Completion of Duty

• Self Development

• Fairness in Performance

• Avoidance of conflict with company interest

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5 Corporate Responsibilities to employees

• Respect for human dignity

• Fair Treatment

• Promoting Creativity

6 Responsibilities to society and country

• Rational Business Development

• Protection of stock holder interest

• Contribution to social development

• Environmental Conservation

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LG SECTOR IN INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG

Electronics, South Korea was established in January 1997 after

clearance from the Foreign Investment Promotion Board (FIPB).

LG set up a state-of-the art manufacturing facility at Greater

Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna

Road, Greater Noida, India.

This facility manufactured Color Televisions, Washing Machines,

Air-Conditioners and Microwave Ovens.

''Company is setting up a chain of exclusive premium showrooms.

LG plans to launch 60 premium Brand Shoppes by the end of the

first quarter of this year. At present, LG has a total of 83 LG stores

across the country, of which 45 are shoppes and 38 are exclusive

stores. Brand shoppes will be placed in the premium segment and

the target audience will comprise buyers interested in premium

and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive

store by having a more interactive environment and additional

lifestyle orientation on display so that the customer can actually

experience the LG products in his or her own home settings.133

LG Electronics India Ltd (LGEIL), consumer durables leader with

27% market share, is planning a brand new image. To attract

inspirational and young consumers across India, company will roll

out a new marketing strategy. The exercise will cost the company

Rs 360 crore.

LG Electronics India is the fastest growing company in the

consumer electronics, home appliances, and computer peripherals

industry today.

LG Electronics is continually providing, superior technology

products & value for money to more than 50 lakh households in

India. LGEIL is celebrating the 11th anniversary this year.

LG Soft India the innovation wing of LG Electronics in

Bangalore is LG Electronics' largest R&D centre outside Korea.

We at LGSI focus on niche technology areas such as mobile

application development, digital video broadcast and biometrics

software and support LG Electronics with our expertise. Motivated

by a passion for technology, a strong work culture and loyalty to

the organization, we are determined to see LG become one of the

top three brands globally.

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Prominent consumer electronic company, LG Electronics Inc. has

said that it expects the sale of its products in India to up by 15 per

cent in 2008. Moon Bum Shin, managing director of LG

Electronics India has said that the company has earmarked 4.8

billion rupees for investment purpose in India this year. The said

money will be used to market as well as manufacture new

products.

LG Electronics, which is originally a South Korean Company with

branch in India, informed that its sales of GSM mobile phones,

color televisions, air conditioners and other household goods in the

Indian market was to the tune of 95 billion rupees ($2.4 billion) in

2007. As per Shin's estimate, the sales in 2008 would be around

110 billion rupees.

In order to achieve its target, Shin said LG Electronics will

concentrate on catering to the high-end consumer market which

will help boost sales this year. India churns out six (6) per cent of

LG Electronics global revenues of $42 billion. The Indian branch

of LG exports to 40 countries.

India challenges

The challenges faced by LG when entered in Indian market

135

6. Low brand awareness about LG in India.

7. One of the last MNCs entered in India (Samsung, Panasonic

entered in 1995 in India).

8. High import duty

9. Compitition from local market players and other MNCs in

consumer durable segment.

10. Price sensitiveness of the Indian consumer

LGEI over comes these challenges to emerge as

Innovative marketing strategy

4. Launch new technologies in consumer electronic and home

appliances.

5. LG was the first brand to enter in cricket in big way a way, by

sponsoring the 1999 world cup followed it up in 2003 as well.

6. LG brought in four captains of the Indian cricket team to

endorse its products. LG invested more then US$ 8 million on

advertising and marketing in this sport.

7. LG has differentiated its product using technology and health

benefits. CTV has “Golden eye technology” Air conditioner

has “Health air system” and microwave ovens have the

“Health wave system”.

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Local and efficient manufacturing to reduce the cost

To overcome high import duties LG manufactures TV refrigerator

in India at manufacturing facility at Noida and Pune. LGEI had

already commissioned contract manufacturing at Mohali Kolkata

and Bhopal for CTVs. This has helped LGEI to reduce cost.

LGEI implementing the “Digital manufacturing system” (DMS) as

the cost cutting innovation this system is follow-up to the six

sigma exercise LGEI had initiate earlier.

R&D potential

LG has the research and development facilities in Bangalore and

Pune. Both the unit carry out R&D department for the domestic as

well as the parent company it also dose customize R&D for the

specific countries to which it export product.

Regional channel and wide distribution network

137

1. LG has adopted the regional distribution channel in India. All

the distributers work directly with the company. This has

resulted in quicker rotation of the stock and better penetration

into B, C, D, class market.

2. LG also follows the stock rotation policy rather then dumping

stock on channel partners.

Product localization:-

1. Product localization is the key strategy used by the LG

2. LG came out with Hindi and regional language menus on its

TVs.

3. Introduced the low-priced “Cineplus” and “sampooma” for

the rural market.

4. LG was the first brand to introduce gaming in TVs in

continuations of its association with cricket LG introduce

cricket game in CTVs

MAJOR KEY SUCCESS FACTORS

138

1. Innovative marketing - LG was the first brand to enter cricket

in a big way, by sponsoring the 1999 World Cup and

followed it up in 2003 as well.

2. Local and efficient manufacturing to reduce cost - To

overcome high import duties, LG manufactures PC monitors

and refrigerators in India at its manufacturing facility at

Noida, Delhi.

3. Commissioned contract manufacturing at Mohali, Kolkata

and Bhopal for CTVs.

4. Product localization - Product localization is a key strategy

used by LG. It came out with Hindi and regional language

menus on its TV.

5. Regional distribution model - This has resulted in quicker

rotation of stocks and better penetration into the B, C and D

class markets.

6. Leveraging India’s IT advantage - LG Electronics has

awarded a contract to develop IT solutions to LG Soft India

(LGSI). The project involves development and support for

ERP, SCM, CRM and IT-enabled services for LG.

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Strategies adopted by the organization

LG follows 10 commandments which are as follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success

3. Transparent and fast communication-open communication

4. Update market -knowledge –Demographics

5. Win –Win relationship with the trade partners

6. Customer is the king

7. Even Billing –Road to ach supplier A

8. Be in touch with the market (70% Market, 30% Office).

9. Plan and Execute annual marketing Calendar-Time to market

10. Display share of 50% -to get 50% consumer share.

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LG Pune is the branch office of LGEIL. It is

located in J.M Road.In 2004 LGEIL opened second factory which

is located in Ranjangaon. This plant manufactures all product

including DVD writers and GSM mobiles. Thus it became first

company to manufacture DVD writer in India. The ODP plant

aims to reach a manpower base of 1500 people and an investment

of Rs 300 crore till 2010.

LG India will become the export hub for LG Worldwide, catering

to the Middle East and African markets. The company aims to

touch an export turnover of $3 billion by 2010 from India, which

will contribute to 30 per cent of the Indian arm's turnover.

Pune, India, October 6, 2004 -- LGE announced 3 growth

strategies aimed at the 1.1 billion people of India making the

Indian market the second largest global production base following

China. Under this strategy LGE has projected 2007 revenues in

India will exceed US$10 billion, 10 times that of 2004.

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LG PUNE

The three strategies for the Indian market that the global

electronics giant disclosed. included: penetrates the south-

western market of India through the new Pune plant near Mumbai,

the second largest city in India, in addition to the existing northern

plant; installs a new GSM handset production line in the new Pune

plant and uses it as its second-largest global GSM handset

production line after the Qingdao plant in China; and expands the

current 750 R&D staff in India to 1,500 by 2007, striving to

develop premium products and export 30% of India-manufactured

products to Asia, Middle East and Africa markets by 2007.

LG Electronics’ second new plant in Pune, India covers a total

area of 211,200 square meters and is currently equipped with a

production line to manufacture 600,000 TVs and one million

refrigerators a year. The company is set to add production lines of

air conditioners, washing machines, monitors, and electronic

ovens, by 2005.

Also, LG Electronics is poised to install a GSM handset

production line in the new Pune plant by early next year. The Pune

GSM handset line envisages a capacity of manufacturing 2 million

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handsets annually, and the company expands it to become a global

GSM handset production base with a capacity of an annual 10

million units by 2010.

In connection with its three growth strategies for the Indian

market, LG Electronics will invest a total of US$150 million in

establishing facilities and boosting R&D efforts in India by 2007.

Specifically, it will invest US$53 million in the Pune second plant,

another US$43 million in establishing the GSM line, and US$54

million in securing R&D manpower and boosting other efforts.

Through these strategies, LG Electronics aims to penetrate the

global market by using China and India as its core production

bases, while operating its plants in Changwon and Gumi, Korea, as

its main production bases. This way, the company is pushing to

penetrate the global home appliance market.

The present capacity of the facility is of 1 lakh unit per year and it

shall cater to the need of the domestic markets. LG plans to

upscale its operations to a figure of 2.5 lakh units a year in the near

future. The Pune plant in addition to its current manufacturing

facility at Greater Noida will enable the company to enhance its

consumer reach and reiterate it’s commitment towards providing

superior technology products to the India consumer.

143

The key strategies being implemented include increasing the

number of its regional offices from six to eight. LG has split its

southern regional office into two, one comprising the states of

Tamil Nadu and Kerala and the other consisting of Andhra

Pradesh and Karnataka. In addition, it has split one of its northern

regional offices by making Uttar Pradesh a separate region after

spinning it out from Delhi NCR. The other four regional offices

take care of East, Gujarat and Madhya Pradesh, Maharashtra &

Goa and Punjab, Haryana & Rajasthan respectively.

In the coming year, LG is also repositioning its marketing spends,

resulting in a significant increase in its mass media expenditure for

better brand visibility. LG had a marketing budget of Rs 320 crore

in 2007 with a 60:40 split in favor of below-the-line activities.

Next year, the company plans to increase the share of mass media

even as overall marketing spends would be raised by just about 10-

15%.

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LG Pune is the branch office of LGEIL.It is located in J.M

Road.

The organization structure is –one branch manager, one chief

accountant, and area sales manager of CE, HA separate for GSM,

Marketing manager for CE, HA and separate for GSM.The Pune

branch has warehouse at wagoli.

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Distribution and Marketing

The company has number of dealers and warehouses. They have

LG exclusive shopee. For the marketing of the products a number

of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.

3. Hoarding, Posters, banners are used so as to grab the

attention of the costumers.

4. Day to day advertisement in leading newspaper.

5. Discount at festival time.

6. For dealer relationship they arrange dealer meting at several

time in the year

7. LG divide dealer in gold silver etc. category to know the

performance of the dealers.

8. They have their sales persons at various sub dealer store and

at mordent trade store for particularly for the promotion of

the LG product.

9. LG also uses the radio FM for the promotion activities.

10. Also provide capon and scratch card for festive season.

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The logistics (Supply Chain Management)

Visit to warehouse of LG Pune at Wagoli

Logistics is the art and science of managing and controlling the

flow of goods, energy, information, and other resources like

products, services, and people, from the source of production to

the marketplace. It is difficult to accomplish any marketing or

manufacturing without logistical support. It involves the

integration of information, transportation, inventory, warehousing,

material handling, and packaging. The operating responsibility of

logistics is the geographical repositioning of raw materials, work

in process, and finished inventories where required at the lowest

cost possible.

Logistics Management is that part of the supply chain, which

plans, implements and controls the efficient, effective forward and

reverse flow and storage of goods, services and related information

between the point of origin and the point of consumption in order

to meet customers' requirements.

5R’s of Logistic followed by LG:

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1. Right Time

2. Right Place

3. Right Condition

4. Right Cost

5. Right Handling

LG Pune Distribution

LG Pune comes under the western Distribution Region. This

region has following

1. Pune

2. Kolapur

3. Sholapur

4 Satara

5 Sangli

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The LG Factory is located at NOIDA & PUNE. There are three

types of Warehouse-

1. Mother Warehouse

2. Branch Warehouse

3. Spare part warehouse

The mother warehouse is that where the products from the factory

are kept and from that warehouse, the products are sent to the

branch warehouse.

A warehouse is a commercial building for storage of goods.

Warehouses are used by manufacturers, importers, exporters,

wholesalers, transport businesses, customs, etc. They are usually

large plain buildings in industrial areas of cities and towns. They

come equipped with loading docks to load and unload trucks; or

sometimes are loaded directly from railways, airports, or seaports.

They also often have cranes and forklifts for moving goods, which

are usually placed on ISO standard pallets loaded into pallet racks.

149

The Pune warehouse is located near Wagoli. It is 13670 sq. feet

in area.

In warehouse 7 locations is set up for the products.

Loc 1, Loc 2, Loc 3, Loc 4 , Loc 5 ,Loc6, Loc 7

Loc 1 – selling

Loc 2 - second sale

Loc 3 - insurance claim

Loc 4 - write off material

Loc 5 – destroy the item

Loc 6 - court case material

Loc 7 - for repair

5’s of warehouse, which the LG strictly follow.

1. Sweeping

2. Sorting

3. Systematic Arrangement

4. Simplification

5. Self- discipline

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In warehouse, the products are pinup with 3-color paper to get the

knowledge about the delivery.

1. Red Card – To stop the product going into market,

2. Green card – To allow the product for delivery in market,

3. Yellow Card – After the product labeled with green, allow

this to move in market

Distribution Time:-

• Local delivery – 4 hrs.

• Upcountry delivery - 12 hrs.

• Within 200 km. – 24 hrs.

• Beyond 200 km. – 48 hrs.

The above distribution time is the time of delivery of products

from warehouse to the market place, which the logistic department

follows to fulfill the demand in the market at right time. In LG, we

have the following process, which is followed in logistic through

ERP.

Order Processing

Invoicing

Indenting

Report

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Order Processing booking for dealers /distributors

Invoicing after billing process/bill generation

Indenting requirement (Pdt Unit to branch unit)

Report distributed to all

In warehouse, there are two mode of dispersion of product from

one place to another within. a) Hydraulic b) Manual

In addition, there are 35 fire extinguishers to prevent the accidental

hazard within the warehouse due to fire. These fire extinguishers

are valid up to year 2011. One has to follow the rule of “NO

Smoking” within the warehouse

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Logistics Ten Commandments – Golden Rules

1 - Warehouse 5S – to be strictly followed – FG – 2, 5 & 7 to be

properly maintained.

2 - 100% Bar-coding for all inward & outward transaction.

3 - Follow standard pick – ship process religiously.

4 – No inventory mismatch, shortage or excess – monthly 100%

physical stocktaking.

5 – Nil 30+ for FG – 2, 3 & 5.

6 – Nil transit damage.

7 – File insurance claim within 2 days. Settle all claim all within

30 days.

8 – No inter – branch transfer without HO clearance.

9 – PSI feeding into system by 25th of every month. Ensure 90%

accuracy.

10 – Apply physical FMFO.

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Problem

1- In transit material damage checking.

2- Cost target achievement.

3- Natural events tracking.

4- Fluctuation in demand-supply

Equipments

1- 100% Bar code scanner.

2- ERP – Invoice Generation Process.

3- Hydraulic Trolleys for material movement.

4- Pallets for safety of material.

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WAREHOUSE WITH THE EQUIPMENT.

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WAREHOUSE: REFRIGERATOR AND CTV SECTION

Research Methodology:

Research methodology is considered as the nerve of the

project. Without a proper well-organized research plan, it is

impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The

main objective of survey was to collect appropriate data,

which work as a base for drawing conclusion and getting

result.

Therefore, research methodology is the way to systematically

solve the research problem. Research methodology not only talks

of the methods but also logic behind the methods used in the

context of a research study and it explains why a particular method

has been used in the preference of the other methods

Research design:

156

Research design is important primarily because of the increased

complexity in the market as well as marketing approaches

available to the researchers. In fact, it is the key to the evolution of

successful marketing strategies and programmers. It is an

important tool to study buyer’s behavior, consumption pattern,

brand loyalty, and focus market changes. A research design

specifies the methods and procedures for conducting a particular

study. According to Kerlinger, “Research Design is a plan,

conceptual structure, and strategy of investigation conceived as to

obtain answers to research questions and to control variance.

Types of research is:

Descriptive Research

The type of research adopted for study is descriptive. Descriptive

studies are undertaken in many circumstances when the researches

is interested to know the characteristic of certain group such as

age, sex, education level, occupation or income. A descriptive

study may be necessary in cases when a researcher is interested in

knowing the proportion of people in a given population who have

in particular manner, making projections of a certain thing, or

157

determining the relationship between two or more variables. The

objective of such study is to answer the “who, what, when, where

and how” of the subject under investigation. There is a general

feeling that descriptive studies are factual and very simple. This is

not necessarily true. Descriptive study can be complex, demanding

a high degree of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs

to be flexible in its approach, but a descriptive study in contrast

tends to be rigid and its approach cannot be changed every now

and then. It is therefore necessary, the researcher give sufficient

thought to framing research.

Questions and deciding the types of data to be collected and the

procedure to be used in this purpose. Descriptive studies can be

divided into two broad categories: Cross Sectional and

Longitudinal Sectional. A cross sectional study is concerned with a

sample of elements from a given population. Thus, it may deal

with household, dealers, retail stores, or other entities. Data on a

number of characteristics from sample elements are collected and

analyzed. Cross sectional studies are of two types: Field study and

Survey. Although the distinction between them is not clear- cut ,

158

there are some practical differences, which need different

techniques and skills. Field studies are ex-post-factor scientific

inquiries that aim at finding the relations and interrelations among

variables in a real setting. Such studies are done in live situations

like communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has

been taken by me. A major strength of survey research is its wide

scope. Detail information can be obtained from a sample of large

population .Besides; it is economical as more information can be

collected per unit of cost. In addition, it is obvious that a sample

survey needs less time than a census inquiry. Descriptive research

includes survey and fact finding enquiries of different kinds of the

major purpose. Descriptive research is description of the state of

affairs, as it exists at present. The main characteristic of this

method is that the researcher has no control over the variables; he

can only report what has happened or what is happening. The

methods of research utilized in descriptive research are survey

methods of all kinds including comparative and co relational

methods. The reason for using such needs to be flexile in its

approach, but a descriptive study in contrast tends to be rigid and

its approach cannot be changed ever now and then.

159

PUNE

BRANCH

PUNE 1 PUNE 2 PUNE 3

DEALER MANAGEMENT

Mapping of Pune region dealers.

In Pune region there were total 180 dealers including the up

country side They have been divided into three categories on the

basis of their turnover and the selling capacity.

PUNE -1

PUNE-2

PUNE-3

PUNE-1 Includes the modern trade and they have direct billing

from the branch office. They have high turnover and the company

depends heavily on them

160

PUNE-2 includes the distributors. They have direct billing from

the branch office.Their turnover is also high.

PUNE-3 Includes the sub dealers .They have direct billing from

distributors or from the branch office. Their turnover is not so

high, but there are few sub dealers whose potential is quite high.

According to sales the branch has designated as gold and silver

sub dealers.

OBJECTIVE OF THE STUDY

The objective was to find out the market share of LG products,

advantages, and disadvantages of LG products from dealers and

to find out what problems they are facing with the LG products

so that problems can be resolved to increase the sale.

161

PICTURE SHOWING THE PRODUCT OF LG IN ONE

OF THE SHOP

Data collection methods:

After the research problem, we have to identify and select which

type of data is to research. At this stage; we have to organize a

field survey to collect the data. One of the important tools for

conducting market research is the availability of necessary and

useful data.

Primary data: For primary data collection, we have to plan the

following four important aspects.

Sampling

Research Instrument

Secondary Data - The Company’s profile, journals and

various literature studies are important sources of secondary

data.

Data analysis and interpretation

1. Questionnaires

2. Pie chart and Bar chart

162

Questionnaires:

This is the most popular tool for the data collection. A

questionnaire contains question that the researcher wishes to ask

his respondents which is always guided by the objective of the

survey.

Pie chart:

This is very useful diagram to represent data , which are divided

into a number of categories. This diagram consists of a circle of

divided into a number of sectors, which are proportional to the

values they represent. The total value is represented by the full

create. The diagram bar chart can make comparison among the

various components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name

implies, it consist of a number of whispered bar, which originate

from a common base line and are equal widths. The lengths of the

bards are proportional to the value they represent.

163

Preparation of report:

The report was based on the analysis and presented with the

findings and suggestions. The sample of the questionnaires is

attached with the report itself.

Sampling Methodology:

Details of the sampling methodology, I have made questionnaire.

The one is made for the Customer.

No. of questions in questionnaires for customer: 07

No. of question related to LG product: 03

No. of people met during the research: 200

No. of respondents during the research: 50

Sample unit

Professionals, Business man,

Employees, House wife,

Working women, Students

164

COMMITTED TO SERVICE

165

CUSTOMER SERVICE

The best and the biggest international brands are here in India –but

the irony if it all: where is the after-sales-service? So integral to a

brand, so critical for its success and so taken for granted in

developed markets! In India, after sales service is, for want of a

better description, the pits. So what’s stopping the best companies

from pulling out all the stops when it comes to providing the best

service? Do customers expect for too much? Or is it that in India

they don’t really care. Brand Equity fanned out to MNC as well as

Indian consumer durable companies, stockiest and dealers,

analysts and market researchers to get a feel of what’s really

keeping after sales from being used as a cutting edge marketing

tool in pushing products across categories.

Customers support following the purchase of a product or service.

In some cases, after-sales service can be almost as important as the

initial purchase. The manufacturer, retailer, or service provider

determines what is included in any warranty (or guarantee)

package. This will include the duration of the warranty

traditionally one year from the date of purchase, but increasingly

two or more year’s maintenance and/or replacement policy, items

166

included/excluded, labor costs, and speed of response. In the case

of a service provider, after-sales service might include additional

training or helpdesk availability. Of equal importance is the

customer's perception of the degree of willingness with which a

supplier deals with a question or complaint, speed of response, and

action taken.

LG also had a big problem of after sale service in India. During

my project I also came to know that after sale service becomes the

big issue in Pune region. Customers as well as dealer were facing

the problem of after sale service. Because of this problem many

dealer in Pune region were not ready to sale LG product. So it

becomes the big issue.

But LG has taken some solid steps towards improving customer’s

perception and experience of after sales service. Because it very

important in competitive market to provide the best service.

L G Electronics has signed a memorandum of understanding with

23 Industrial Training Institutes to strengthen its after sales service

in India.

The company aims to recruit 10,000 people by the end of this year

as a part of its branding strategy to focus on service and move

away from discounting.167

L G Electronics has identified eight states with high after sales

service call rates to ink the deals with the ITI. Y V Verma, director

HR and management system, LG Electronics said, "The Company

was trying to find a solution for effective after sales service since

last two years. There is a huge need of trained manpower for the

after sales service to align with the company's expansion and focus

on the GSM mobiles and the personal computer segments."

1. In the initial phase the company has entered into agreements

with ITIs in the states like Maharashtra, Gujarat, Delhi,

Punjab, Assam, and Karnataka and is in the last leg of

signing with Uttar Pradesh.

2. L G Electronics, with 1200 service centers, has already

recruited 300 students and plans to beef up the number to

10,000 by the year-end.

3. "The company has offered a scholarship to the selected

students for the last six months of their training programme,"

4. The company will invest Rs 8 crore (Rs 80 million) in

employee development programme this year with an aim to

attain a 8 per cent attrition rate.

168

5. The company moved away from the discounting strategy

since last year and is putting thrust on the quality and service

in its brand communication to position LG as a premium

consumer electronics brand.

6. At the top, the Service Division in Korea reports to the Global

CMO. (as mentioned in Dermot’s public interview in ET on

Wednesday). This shows commitment that Service must be

made into a marketing differentiator, and leveraged thus.

7. LG has the widest service network across the country; some

estimates put it at a significant multiple of service-

infrastructure from our nearest competitor. While the sale size

may also be a nice multiple from nearest, it shows the

company is ready to put our money where our mouth is.

8. The company has introduced a 211 service - once you register

your complaint, we will call you back in 2 hours (hence 2),

set up an appointment for the next convenient day for you

(hence the first 1), and show up in the promised 1-hour slot

(hence the second 1). If the next convenient day for you is the

next day, that’s great too. It’s a disruptive action in an

industry (including LG) having traditionally shied away from

169

its service responsibilities, and thus not leveraging any

mileage from it.

9. The company is promoting 211 through ATL, probably the

first time after-sales service is being communicated in this

fashion by any product company. You may have seen the TV

commercial or heard the radio advert or seen the newspaper

ad or in-shop posters, both of which revolve around prompt

response.

10. The first LG-owned service centre opened in Gurgaon.

(Service in India generally works through authorized service

centers, in LG’s case they work exclusively for LG.) A

company-owned service centre tries that much harder, knows

things better, and can even contribute as a revenue center.

170

R&D INNOVATIONS

To become a Top 3 global company, LG Electronics is firmly

committed to investing in R&D and Design to create products with

the most highly valued technology and style. By perfectly

matching function to form, these products emotionally connect to

our customers. Our achievements in R&D and Design have made

LG Electronics a global leader in CDMA handsets, optical storage,

DVD players, residential air conditioners, plasma panels, and LCD

displays. Our R&D is driven by the dreams of our customers.

Because technology innovation is the key to success, we focus our

energy on developing globally unrivaled products. At the same

time, we seek to identify future growth opportunities in new

business areas. Our Design Center is guided by its vision of "using

design to inspire trust and make a lasting impression", defining

concept, style, interface, and finish as the four core elements of its

design standard. We never cease researching what customers value

most in creating designs that will define the future. As more

products come with intelligent microchips and networking

functionality, designers also become inventors, harmonizing

technology with human needs. In R&D, we focus on creating a

digital world that empowers and enriches people's lives. Our

171

strategy is to set the standard in technologies that link to the

Internet, while continuing to develop world-leading products.

In 2006 we introduced the world's first 60-inch single scan PDP

module, the world's highest performance LCD monitor, the world's

largest PDP TV at 102-inch, and the world's first player for both

Blu-ray and HD-DVD. We also launched the world's first MP3

player with terrestrial DMB and the World Phone for 82 countries.

Our R&D facilities include the Corporate Institute of Technology,

Production Engineering Research center, and 36 research labs

throughout the world. Our investment plan focuses on high-growth

areas-mobile handsets, flat panel displays, car infotainment,

system air conditioners, and home networks.

LG Electronics designers have increased the value of LG products

through the magic of "design" to create aesthetic and easy-to-use

products. In 2006, we announced our intention to become a

"design-minded company" through three initiatives:

172

1. Designers can initiate innovative ideas in a cross-functional

team with engineers, product planners, and marketers.

2) Designers are also involved in product planning, including

product displays and promotions.

3) Designers will receive special recognition with the new "Super

Designer" title.

Our devotion to design has been appreciated by prominent design

organizations, resulting in winning prestigious design awards

every year at home and abroad, including the IDEA Award, iF

Design Award, reddot Design Award, Good Design Award Japan,

and Korea Good Design Awards. There are now LG Design

Branches in Milan, Beijing, New Jersey, Tokyo, and New Delhi,

all working to achieve our vision of being a "Digital Life

Originator".

173

Warranty - Air Conditioner

The LG Air Conditioner comes with 12 months warranty on all

parts except front grill & plastic parts and, thereafter 4 year

Additional warranty on the compressor, from the date of purchase

of the product, provided always that the warranty card bears the

rubber stamp, date and signature of our Authorized Dealer.

4 Years Additional Warranty on Compressor

The 4 year warranty on Compressor will be continue even after

the expiry of 1 year period from the date of purchase. This

warranty covers Compressor only. (LGEIL) has it's Authorized

Service centre, Service outside municipal limit will attract to

and fro traveling, other incidental expenses in addition to

standard visiting charges, as prevailing from time to time.

During the warranty period, only the parts replaced or repaired

shall be free of costs, but service charges shall always be

payable by the customer.

Warranty- Refrigerator

174

WARRANTY

The LG Refrigerator comes with 1 + 4 year warranty, from the

date of purchase, that comprises of a 1 year warranty on all Parts

(except Light Bulb, Consumables, Loose Plastic Parts, Glass) in

the first year and thereafter a 4 year Additional warranty on the

compressor, from the date of purchase of the product, provided

always that the warranty card bears the rubber stamp, date and

signature of our Authorised Dealer.

4 Year Additional Warranty on Compressor

The 4 year warranty on Compressor will continue even after the

expiry of 1 year period from the date of purchase. This warranty

covers Compressor only. Gas/Gas Charging will be charged to the

customer. Gas charging is included only when compressor is

defective & inoperative. During the additional warranty period, it

does not cover any part such as condenser, freezer, capillary,

suction line, overload protector, relay, thermostat etc.. Standard

visiting charges will be applicable within the municipal limit of

town where LG Electronics India Pvt. Ltd.

Warranty - Color Television

175

The LG Product comes with 1 year warranty, from the date of

purchase, that comprises of a 1 year warranty on all Parts (except,

Consumables, Loose Plastic Parts) in the first year provided

always that the warranty card bears the rubber stamp, date and

signature of our Authorized Dealer.

Warranty - PERSONAL COMPUTER

Warranty period

Warranty of Personal Computer varies from 12 months to 36

months

How to check the product warranty

1. Note down the exact Model Number from the Product. This

can be found on the back side of your machine

2. Warranty is given by 3rd last digit

-- 1 12 Months Warranty

-- 2 18 Months Warranty

-- 3 36 Months Warranty

Example shows Model number and their Respective Warranty

information is given below.

176

XDT-L04ARP1.BCI0 1 L7 1 year warranty

XDT-L04ARP1.BCI0 A 17 1.5 year warranty

XDT-L04ARP1.BCI0 3 17 3 year warranty

Warranty - LCD Monitor

This LG Monitor comes with below mentioned Comprehensive warranty from the date of purchase of the

product, against defective material workmanship. In case of defect, LG Electronics India Pvt. Ltd. Undertakes

to get the set repaired free of charge during warranty period.

S No Model Type Warranty Period Type of Warranty

1. 15"(38 cm) CDT 2 Years On Site

2. 17"(43.18 cm) CDT 3 Years On Site

3. All LCD Monitors 3 Years On Site

Warranty – NOTEBOOK

This LG Notebook PC comes with 12 months carry in warranty on

all parts (except Software) from the date of purchase of the

product, against defective material workmanship. In case of defect,

177

LG Electronics India Pvt. Ltd. undertakes to get the set repaired

free of charge during warranty period.

Terms & Conditions

1. The warranty is confined to the first purchaser of the LG

product only & is non-transferable.

2. Repairs & replacements will be carried out by the dealer from

whom the product has been purchased, or through the

Authorized Service Centers of LGEIL. In case the customer

shifts the place of residence during warranty period, it is

advised to contact Authorized Service Centre directly or call

our help line no's (toll free).

3. Repairs under warranty shall be carried out by an authorized

service personnel only. The details of centralized help lines

are as overleaf.

4. For units installed beyond municipal limits of the jurisdiction

of company's Authorized Service Center, it is responsibility

of the purchaser to contact the nearest authorized service

center and bring the unit to the authorized service center at its

own cost and risk. All expenses incurred in collecting the

units or parts thereof from the company's authorized service

center, as well as expenses incurred with deputizing of

178

service personnel/technicians towards conveyance and other

incidentals etc. will be borne by the customer. Local Charges

for transportation and handling charges may vary from

location to location. Customers are advised to verify before.

5. The concerned authorized service center will advise the

customer whether to effect the repairs at site or at the

authorized service center.

6. Call registered with the centralized helpline/Authorized

service center, wherein only software updation (chargeable to

customer), cleaning of the unit/parts, adjustments, general

explanations are not to be considered as defects.

7. In case of repairs or replacement of any part/s of the unit, this

warranty will thereafter continue and remain in force only for

the unexpired period of the warranty. Replacement of parts

would be purely at the discretion of LGEIL alone. In case the

replacement of the entire unit is being made, (subject to the

sole discretion of LGEIL), the same model shall be replaced

and in the event such model has been discontinued, it shall be

replaced with the model equivalent as deemed by LGEIL.

The warranty on replacement model shall remain in force

only for the unexpired period of the warranty based on

original purchase.

179

8. In case of any damage to the product / customer abuse/

repairs by un-authorized personnels / misuse detected/ by the

Authorized Service Center personnel, the warranty will be

considered void and shall also not be applicable to warranty

terms & conditions. Also repairs will be done on chargeable

basis only, subject to availability of parts.

9. This warranty shall not cover any consequential or resulting

liability, damage or loss to property or life arising directly or

indirectly out of any defect in the LG product. The company's

obligation under this warranty shall be limited to repair or

providing replacement of defective parts only under the

warranty period.

10. The company or its Authorized Service Center reserves the

right to retain any part/s or component replaced at its

discretion, in the event of a defect being noticed in the

equipment during warranty period.

11. While the company will make every effort to carry out repairs

at the earliest, it however is made expressly clear that the

company is under no obligation to do so in a specified period

of time.

12. Warranty does not cover accessories external to the

equipment supplied by the dealer /LG as promotional scheme.

180

13. If any coloured internal or external components are replaced,

there will be commitment to ensure that the shades match

with the original or other components. The replaced shades,

patterns, tints may vary from the customer's unit due to

continuous usage of the unit. Any matching components

changed at customer's request will be on chargeable basis

except the component which actually needed.

14. In case of LCD Monitor, One bright dot (anywhere on the

screen) shall not be treated as defect and will not be covered

under warranty. Also permissible level of Bright dot / black

dot is 5 dots anywhere on the screen and shall not be treated

as defect for repair /replacement of TFT Panel.

15. The unit shall be operated with variation of + 5% of rated

voltage at 50Hz. Any failure due to voltage / fluctuation

beyond specified tolerance will not be covered under

warranty.

his Warranty is not applicable in any of the following cases:

1. All Software programs, including the operating systems and

software added to this product whether preloaded or shipped

with the machine, or installed subsequently.

2. Installation of Hardware, Software and Networking.

181

3. The warranty card is not completed properly at the time of

purchase.

4. LG is not responsible for the loss of any of your confidential,

proprietary, personal and corrupted data.

5. Configuration of Drivers, Network Optimizations, BIOS

updates, System /Data Recovery.

6. The warranty is not valid in case of removal or alteration of

any identification labels on the machine or any of its

components.

7. No retailer has authority to vary the terms of above warranty.

8. Any repair work is carried out by persons other than

authorized service personnel.

9. Defects are caused by due to causes beyond control like

lightening, abnormal voltage, acts of God or while in transit

to service center or purchaser's residence.

10. In Case proof of purchase is not available or purchase proof

does not bear the corresponding model and/or the serial

number of the unit.

11. Battery backup time shall gradually reduce over period of

usage and shall not be considered for reason for replacement

under warranty. In case notebook is stored for longer duration

then it is recommended to remove the battery from the unit.

182

This warranty will automatically terminate on the expiry of the

warranty period as specified above, even if LG product may not be

in use for any time during the warranty period for any reason.

LG ELECTRONICS INDIA PVT LTD

SERVICE CENTER NOT RESPONDING WELL

I Had Purchased lg multi split AC 2T LMA24TWAS1 on 26 may

2009 vide bill no 09R801862 from lotus electronics suryaasadhna

survey no 182/2/1, choti Khajrani indore-01. tel no 0731-4265666.

which was installed by temperature control, lg-9, ahinsa tower, 7

183

m.g. road, indore-01.tel no 9302108173 sent by lotus themselves.

On 28 may 09 1 unit of the multi split ac was not switching on. on

contacting lotus again the same team from temp control came on

29 may 09 and took a component 'PCB' out vide service report no

C9E2911.it was intimated that it will be repaired by 01 jun 09.The

same has not been replaced or repaired till today. On contacting

the service center they are not properly attending the call neither

they are informing about status of complaint. thus this problem has

taken now 9 days. air conditioner is still not working and

authorised service center is not reponding or repairing it.

ANNUAL MAINTINANCE PLAN

Happy Living Promise

184

It is a new way of life being offered exclusively by LG Electronics

for its valued customers. By extending this promise we show that

we at LG always care for your needs. It is a promise that ensures

complete freedom from all worries related to the product.

Happy Living Promise ensures that we are always there at each

step.

Happiness is Just a Call Away

Just pick up a phone, and we are there at your service! Call

us at 1860 180 9999 ( BSNL-MTNL) / 39 01 0909( Pvt ops)

You get a response within 24 hrs of your call! Thanks to our wide

service network.

Professional Care

We ensure smooth functioning of your product, through

assured mainten-ance visits.

185

Our absolutely genuine spares assurance means that you no longer

need to worry over spares!

Get Lucky with LG

Our absolutely genuine spares assurance means that you no longer

need to worry over spares!

Service Free Remission

Enjoy the benefits of No Claim Bonus Scheme. Avail fabulous discounts on repurchase of Happy Living Plans

Happy Living Comprehensive Plan

Category ProductTenure (in Yrs.)

Prices

Air Conditioner Window AC 1 1450

Air Conditioner Split AC 1 2000

Air Conditioner Split AC / Packaged AC 1 4000

186

Color Television Color TV 14"/15"/20" 1 300

Color Television Color TV 21" FLAT 1400

Color Television Color TV 29" FLAT 1 750

Flat Panel Display LCD TV 20"/23" 1 1500

Flat Panel Display LCD TV 26" 1 2000

Flat Panel Display LCD/PDP TV 32" 1 2500

Flat Panel Display LCD/PDP TV 37" 1 3500

Flat Panel Display LCD/PDP TV 42 " 1 4500

Flat Panel Display PDP TV 50" 1 7000

Flat Panel Display PDP TV 60" 1 10000

Microwave Oven Microwave Oven Solo 1 500

Microwave Oven Microwave Oven Grill /

Convection1 750

My PC Desktop PC 1 1500

My PC Notebook PC 1 3500

Refrigerator Direct Cool 1 550

Refrigerator Frost Free upto 310lt. 1 750

Refrigerator Frost Free 320 - 490lts. 1 1200

Refrigerator Frost Free 500lts. & above 1 2000

Refrigerator Frost Free DIOS 1 5000

Washing Machine Semi Automatic WM 1 500

Washing Machine Fully Auto Top Load 1 800

Washing Machine Fully Auto Front Load 1 1450

Extension Plan of LG

LG Electronics India Ltd. announced its extension plan in 2006.

The company is going to invest $250 million in India by 2011 and

is planning to establish a manufacturing facility in Pune.

187

In a survey conducted by Business World in 2006, LG Electronics

India was ranked as No. 2 in the consumer durable sector and was

given the following scores based on the different parameters: LG

Electronics India

LG Electronics India

Innovativeness 253.1

Quality & Depth of Management

212.0

Financial Performance 209.1

Ethics & Transparency 209.1

Quality of Products & Services

244.0

Talent Management/People Practices

228.9

Global Competitiveness

269.9

Total Score 1626.0

188

Leadership

189

INVESTMENT AND LG ELECTRONICS INC. - ALL NEWS AND ANALYSIS

LG PHILIPS INVESTING ADDITIONAL 24.1

MILLION USD

2005-07-14 to fdi.gov.cn: July 12 sources from LG China

show the world's largest LCD manufacturer LG Philips has

announced to substantially increase investment in its Chinese

subsidiary. The promised investment is 24.10 million USD,

used to raise the compaAccording to fdi.gov.cn: July 12

sources from LG China show the world's...

Tags: investment, LG.Philips LCD Co. Ltd., LG Electronics Inc.

CHINA: LG PHILIPS INVESTING ADDITIONAL 24.1

MILLION USD.

2005-07-14

According to fdi.gov.cn: July 12 sources from LG China

show the world's largest LCD manufacturer LG Philips has

announced to substantially increase investment in its Chinese

subsidiary. The promised investment is 24.10 million USD,

190

used to raise the According to fdi.gov.cn: July 12 sources

from...

Tags: investment, LG.Philips LCD Co. Ltd., LG Electronics Inc.

Rolling in the Dough; A dozen companies in South Korea

now make over a billion dollars in profit, thanks to their

new, Westernized profiles.

2005-05-23

Byline: B. J. Lee With John Sparks in New York Hyundai

Asan was in big trouble. In 2003 chairman Chung Mong Hun

committed suicide while under investigation for money

transfers to North Korea. The company, which focuses on

tourism and other businesses in the ...

Tags: Branding, chairman, FINANCE, Hyundai, Hyundai

Motor Co....

LG Electronics to invest US$15 million in 2005.(LG

Electronics Indonesia)(Brief Article)

191

2004-12-01

PT LG Electronics Indonesia LGEIN said it will increase

investment by US$15 million in 2005 bringing its total

investment to US$90 million in the country. Company

spokesman Moon Ik Jang said the additional investment will

include for research and d PT LG Electronics Indonesia

LGEIN said...

Tags: investment, LG Electronics Inc.

Woori Financial Group Announces Consummation of

Agreement for Acquisition of Shares of LG Investment &

Securities

2004-09-23

NEW YORK -- Woori Finance Holdings ("WFH")

consummated an agreement for the acquisition of LG

Investment & Securities ("LGIS") on September 23, 2004.

WFH will acquire 25,877,487 shares of common stock, which

comprises 21.2% of LGIS's common stock outstanding. The

purchase price has been agreed to 11,500 won per share,...

192

Tags: acquisition, agreement, Investment, LG Electronics Inc.,

purchase price...

LG TO LAUNCH ENGINEERING PLASTICS

PROJECT IN WEIFANG

2004-07-20

AsiaInfo Services 07-20-2004 LG to Launch Engineering

Plastics Project in Weifang WEIFANG, Jul 20, 2004

SinoCast via COMTEX -- Recently, the engineering

plasticsprogram of South Korea's LG Corporation, with a

total investment of USD40 million AsiaInfo Services ...

Tags: investment, LG Electronics Inc., plastics

SKorea's Woori bids for LG Securities

2004-04-06 193

SEOUL, AFP ? South Korea's second largest banking firm,

Woori Financial Group, has confirmed it was bidding to take

over LG Investment and Securities Co. Ltd. "Woori

submitted an official letter of intent to take over LG

Investment and Securities on Friday," a Woori Bank official

said without elaborating....

Tags: Agence France-Presse, Banking, FINANCE, Government,

Investment...

LG Card suspends cash payments but escapes default --

just

2004-01-08

SEOUL AFP ? South Korea's LG Card suspended cash

advances to customers but escaped default on maturing debt

as creditors offered a one-day lifeline to the country's largest

card issuer. Uncertainty over the future of LG Card shook

stock and bond markets and fanned fears that a possible

bankruptcy...

Tags: Agence France-Presse, Card, creditor, FINANCE,

Investment..., LG Electronics Inc., liquidity, payment

194

LG Indonesia increase investment to US$90 million.

(Corporate Investment)

2003-11-18

LG Electronics Indonesia LG plans to put up fresh fund to

increase its total investment to US$90 million next year

aimed at improving the quality of its products to be more

competitive in free market. Next year the company, apart

from expanding sal LG Electronics Indonesia...

Tags: investment, LG Electronics Inc.

LG Indonesia increases investment to US$90 million.

(Corporate Investment)(Brief Article)

2003-11-01

195

LG Indonesia increases investment to US$90 million LG

Electronics Indonesia LG plans to put up fresh fund to

increase its total investment to US$90 million next year

aimed at improving the quality of its products to be more

competitive in free mark LG Indonesia increases investment...

BEST PLACE TO WORK

LG ELECTRONICS INDIA – HR POLICIES

As we all know requirement of trained and experienced

Professional with the desired mindset is the need of the hour for

any Organization to Survive and Grow in this competitive

196

environment. While there is no dearth of Professionals in Indian

Industry and people are available in dime a dozen, but what is

most important and difficult to get is the right mindset. This can be

easily substantiated by the no. of applications for every job listed

on the famous jobsites. Needless to say that selection of the best

candidate with the desired mindset out of such large no of

applicants is a very tedious task. With the Business Goals being

very high the pressure on HR to reduce the time lag for filling a

position has substantially reduced. Normally a position, which was

reqd. a month to be filled up, has now got to be filled up in 10-15

days time. This has made the job still more challenging.

For example, LG has a On Line Recruitment

Management System. Under this prospective candidates visit our

website and can directly register their CV for any position listed

on the site. Similarly all consultants are also required to post their

CV thru this site. As a result duplication of CV is immediately

identified and not accepted. The CV then comes to the data bank

and for short listing/ screening both the functional users and HR

dept has got the rights. Once a candidate is rejected, immediately

197

an information goes to the consultant or the candidate. In case the

candidate is selected for interview then the information goes for

finalization of interview at specified date and time. This speeds up

the whole process as it does the initial screening of the vital

parameters in terms of age, qualification, experience etc.

LG also asks the candidates to undergo Psychometric

tests which throws up the complete profile of the person. Keeping

in view the Organizational Requirements of mindset, we look into

the aspect of organizational fit and decide whether the person shall

fit into the system or not.

Bold display of Organizational Culture is also done so as to help

align the mindset. Those not willing to accept the culture refuse to

proceed further for interview thereby saving the company of

valuable time and effort in inducting, grooming and developing a

person.

Once these candidates are hired, they undergo and

exhaustive induction programme for a duration of 14 days under

which the candidate is acquainted which each and every aspect of 198

the organization. A thorough integration with HR & Business

Processes takes place and the formulation of a KPI is done within

three days of taking the candidate onboard. Customer

Department/Vendor Department interaction also takes place.

LG as an organization takes pride in the fact that they have the

highest manpower productivity and the lowest manpower cost in

comparison to the industry. Infact LG is benchmarked in terms of

manpower costing.

Creative problem solving when it comes to employees is also LG’s

forte. The company has regular line meeting at the manufacturing

lines in the factory with the workers to discuss and solve their

problems then and there. Morning meeting are also the norm at LG

where the whole team gets together to motivate each other. LG has

come up with the unique concept of Pizza Meetings where the

whole departments meets up for a pizza treat and discusses issues

in an informal setting. HR melt-ins is also a regular feature at LG

where the HR department meets up with the employee having a

problem and their immediate senior to solve issues

Apart from HR melt-ins, departmental melt-ins also take place at

regular intervals in LG wherein the every member of a certain

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department meets up to discuss and solve internal issues within

their department

LG also has a helpdesk facility for their employees to help them

overcome every aspect of their professional problem. Business

related problem solving is also a help tool available across board

to all employees and cross functional Teams and TDR's also exist

within the company.

Apart from the above, a host of facilities are provided to the

employees to make feel as comfortable and much a part of the LG

family as possible. All employees are given pick & drop facility

and are served breakfast, lunch and dinner. Workers get a chance

to take a half day break on request to come up with the innovation

of the day, so as to make the production process more efficient.

Team slogan shouting is done every morning to motivate workers.

World renown six sigma training is provided to all employees. The

blue collar employees are given English coaching classes and at

the end of every month one employee gives a speech in English in

front of MD and gets an incentive for the same.

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CONSUMER SURVEY DURING EXHIBITION

From 16th to 25th May a consumer exhibition was organized at

the college of Engineering ground. The exhibition was sponsored

by Sakal group in which number of companies participated.

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EXHIBITIONS PICTURES SHOWING THE PRODUCTS

Analysis:

Q1. Have you purchased any consumer durable during

Exhibitions?

Yes

No

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Inferences

1. 65 % of Customer have not purchased any consumer durable

from exhibitions.

2. Only 35 % people have purchased.

3. It shows that consumers are coming in the exhibition for

knowledge of product and also they want to know that

weather there is actual price difference in exhibition and shop

or not.

4. Consumer also want to compare to the different brand which

are available in the exhibition.

5. So exhibitions are more useful to increases brand awareness.

6. People are less interested to purchase product from the

exhibition.

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Q.2While purchasing consumer durable which parameter

influences you?

Price

Product feature

Brand

Service

Durability

Inference

1. 30% of customer gives importance to price. So it shows that

Indian consumers are very price sensitive. They give more

importance to price over the brand.

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2. 26% give importance to brand. So price and Brand matter a

lots for the costumers. And they are also want best brand in

best price.

3. 19% to product feature Service 16% and durability 9%

Service is also a big factor for the customer they are less

interested in the durability.

Q3. From where you prefer buying consumer durables

Exhibitions

Co.shoppee

Showroom

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Inference:

1. A majority of customers prefer to buy from showrooms. Very

less proposition of customers buys from Exhibitions.

2. 47% customers are prefer to by from the showrooms because

the showrooms are more convenient to customers they also

think that these shops give more discounts.

3. People are less interested to buy from the exhibition they only

visit the exhibition for price quotation of the product and the

comparison of the product.

Q.4.You prefer to buy from the same as you have mentioned in

Q.3 because of following reasons

Attractive Price

Service

Demonstrations

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Offers

Inference

1. Customers buy from showrooms because of the service and

convenience. These are two main factors.

2. Customers are preferred to buy from the showroom because

of they think that these convenient store may provide good

after sell service.

3. Customer also thinks that there is more chance to bargain and

they can get more discounts in these showrooms.

4. Price also a factor that attract the customer in these

showrooms.

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.Which consumer durable you have and of which brand?

CTV

LCD

PLASMA

REF

WM

AC

Inference

In CTV section maximum customers have Onida, in LCD Sony is

the leader, In plasma BPL is the leader, In Ref LG is the leader,

MW LG is the leader. In WM there are companies and in AC also.

Q.6. How frequently you change your consumer durables?

1-3 years

3-5 years

5-10 years

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More than 10 years

INFERENCE

1. Customers prefer to change consumer durables within 5-10

years. In India people do not change consumer durable

frequently.

2. 23% customers do not change their consumer durable within

10 year.

3. It represent that Indian consumer do not prefer to change their

consumer durable frequently.

Q.7.Do you prefer any financing scheme to purchase consumer

durables?

Yes

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No

INFERENCE

Majority of customers do not prefer any financial scheme.

Dealer survey Findings

1. By calculating the display share we found that in most of

store LG has 50% display share almost all categories.

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2. By the actual monthly sale of particular store we came to

know the capacity of the store and how much product can

they sale.

3. It helps us to know that weather dealer is capable of being a

direct dealer of LG or not and it also helps to find out the new

dealer who are capable of being the dealer of LG.

4. We also came to know while visiting the shops that there was

big problem of after sale service.

5. Many dealers were facing the problem of after sale service

because there is no follow up calls from LG.

6. Demo calls also not done properly.

7. The top competitor of LG product in Pune is SAMSUNG.

8. In Pune area the performance of LG is in better position but

the competitor also hold closer margin.

9. There is high growth of sale in market due to booming in new

technology and better service.

10. Word of mouth plays a vital role in awareness among

customer. This is one factor, which can play a good role in

promotion of products as well as demonstration given by the

shopkeeper also plays a vital role for customer.

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RECOMMENDATIONS AND SUGGESTIONS

1. LG should improve it’s after sale service because its hits

badly LGs market share in Pune region.

2. More detailed customaries service is to be provided.

3. The training to in shop demonstration should be given at

frequent time interval and feed back should be considered

positively.

4. The company should look into the matter of person hiring for

in shop demonstration. A big LG showroom should have at

least 2 such kind of person.

5. LG should try new dealer who have the potential. So they can

target more market.

6. As there is a bottle neck competition between Samsung and

LG, it is necessary to take measure steps to overcome the area

of downfall in LG with respect to Samsung.

7. The marketing managers should make better relations with

dealers and reputation of the company.

8. Customer considers quality as their first preference, so the

company should give more stress on this.

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9. The switching of customer from LG product to other brand is

due to the bed after sell service in shop.

10. The product is well aware and it is on top of mind of

customer. So company should always improve services and

update their technology.

CUSTOMER SURVEY FINDINGS

1. Secondary supports play an important role in the customers

mind and create awareness among the customers. The

secondary support includes Demonstration, Exhibition &

Even Sponsors.

213

2. From the survey it was found out that the majority of

customers don’t buy consumer durables from exhibitions.

They just visit the exhibitions to see the co. latest model.

3. They want to buy from the showrooms or from co.

showrooms. For them service is important .Beside

convenience and other factors service is key factor.

4. Also majority of customers do not want any financing scheme

for purchasing the durables.

5. There was heavy rush on weekends so large numbers of

ISD’s were appointed that day. Also the live demo calls helps

in selling. Exchange offers also generate sale.

6. Customers are also now very choosy in buying the product

and it is important for the company to make loyal customer of

their brand.

7. In survey we found that LG has captured maximum market

share in every category. LG dominates CTV, LCD, and

Refrigerator, and Washing machine, category.

8. LG and Samsung have bottle neck competition in TV and

REF. category.

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9. The product is well aware and it is on top of mind of

customer.

10. Customers are also now very choosy in buying the

product and it is important for the company to make loyal

customer of their brand.

RECOMMENDATIONS AND SUGGESTIONS

1. Exhibitions do not help to generate so much sells but they

should be conducted regularly. This helps in generating

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awareness regarding the product in customers which

ultimately helps in sales.

2. Also it is helps in advertising for the new products. Like in

this exhibition new LCD SCARLET was advertised.

Company should always focus on service.

3. Display share should be increased where there is less than

50% as LG also believes that “JO DIKHTA HAI WO

BIKTA HAI”.

4. Company should try to improve service. No doubt the

company products have technically edge over competitors but

in long run it may hamper the company’s profit.

5. Company should concentrate more on its major drivers LCD,

IT, and GSM.

6. Company should also cater to the needs of sub dealers as

some of the sub dealers have potential of high sales.

LIMITATIONS

216

Every study has certain limitations. In my study, also there were

certain limitations, which I could not able to solve.

1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs

in product sale of different brands, which affected the

perception of the customer. This was biggest drawback of my

study.

3. Time factor was also important for me. I had only 60 days to

complete my research, for which a full-fledged report was

insufficient for me.

4. The customer filled the questionnaire mostly in careless

manner, so it was difficult to make them hold for time.

5. I had only found the upper-middle class family to fill up the

questionnaire, but generally, an average middle class family

was required for the study.

6. The sample size is also very small which represent my

research on consumer behavior

217

LG Electronics - A Multi-National Corporation

LG Electronics is a multi-national corporation with 3200

employees working for its head office, plants and 40 regional

& branch offices across the country. LG Electronics strives

to provide its customers with new products and

technologies. LG Electronics is a world-class

electronics/telecommunication giant.

218

PRESS RELEASE

With a "Don't Just Watch It, Live It" message, LG Electronics

today launched a new global integrated marketing campaign

focusing on the company's premium "Full HD" 1080p flat-panel

high-definition televisions (HDTVs).

The global campaign is first seen in the United States and will roll

out to more than 70 countries worldwide over the next month. LG

Electronics will invest approximately $25 million in the U.S. and

substantially more globally to highlight the ultimate viewing

experience delivered by LG's innovative 1080p liquid crystal

display (LCD) and plasma HDTVs.

Key elements of the campaign include a series of broadcast, print,

outdoor and online advertisements in three creative concepts all

featuring an LG Red Couch, which serves as a symbol of the

consumers' all-encompassing high-definition viewing experience.

The campaign also incorporates LG's corporate sponsorship of the

Cannes Film Festival and targeted public relations activities

highlighting LG's 1080p Full HD technology and stylish flat-panel

designs.

219

"The Red Couch campaign is a key initiative that addresses the

growing high-definition market and the expansion of our HDTV

product line," said Allan Jason, vice president of consumer

electronics marketing, LG Electronics USA, Inc. "LG is a global

leader in flat-panel HDTV technologies, and no company is better

positioned to deliver the Full HD 1080p high-definition viewing

experience."

The global campaign, developed by Young & Rubicam's

BrandBuzz, was produced in high-definition and will make its

network premiere in the U.S. on May 3.

220

AWARDS

As LG is declared one of the most awarded brand by all. Be it the

critic, the market or by you. At LG we believe each one of these

awards truly belongs to you as they are reflection of your trust &

satisfaction, not to mention our stringent quality control & process

like 6 sigma to give you the best of the products that meets global

standards. For us what matters most is you & we thank you for

making us the No.1 brand.

Award Name Awarded By

Most Admired Company in India A&M Magazine

Most Admired MNC A&M Magazine

No.1 Consumer Durable Company A&M Magazine

Best Marketing Company A&M Magazine

Most Ethieal MNC Business World

Techies Award Best Flat Screen Monitor Computer World

3rd Largest Exporter ESC2001

Best EmployerBusiness Today/ Hewitt Assts

Best EmployerBusiness Today/ Hewitt Assts

Enterpreneur of the year Ernst & Young

Gold Rating for Environmental Performance CII

No. 1Awareness Award. Business Today

Super Achivers Award : MD LGEIL CETMA

221

Green Technology Gold Award Green Tech Foundation

Best Designer Award -Art Cool Air Conditioner Business World & NIT

VAR India User Choice Award : Monitors VAR India

Most Admired Product - Microwave EFY

Award for IT Innovation Business Today

Most Trusted Brand -CD WritersDIGIT/Jasubhai Digital Media

EFY's Electronics Organisation of the Year Award for Television Electronics for You

Consumer Durable Retailer of the Year ICICI Bank

Excellence in Corporate Leadership & Entreprerenural Spirit CNBC TV 18

Most preferred Brand- CTV & WMCNBC Consumer Vote Awards

Maximum Imports & Third Highest Exports CONCOR

EFY Reader's Choice Award For Microwaves EFY

Outstanding Contribution in the field of HR CETMA

Outstanding Contribution in the field of HR MID DAY

Top Company :CDMA Handsets V & D

Top Company : Fixed Phones V & D

Best in Recruiting & Staffing RASBIC

Most Preferred Brand - CTV, WM, Computer & ACCNBC Awaaz Consumer Awards

4 P Award : Refrigerator and Air Conditioner 4Ps Power Brand Award

4P Power BrandCNBC Consumer Vote Awards

Most Trusted Brand - LCD TV, Plasma TV, AC, WM, Ref, PC Reader's Digest

Maximum Exports-Consumer Electronics ESC

Maximum Exports CONCOR

First Consumer Awards - CTV, Ref, WM, AC, MWO, PC Times Group

Business World Customer Loyalty Survey : Air-conditioner & Refrigerator Business World & IMRB

222

Top Newsmaker – Consumer Durables Business Today & Cirrus

Most Trusted Brand - TV, AC & HA Super Brands

Reader's Digest Trusted Brands: Platinum Awards- Airconditioner. Gold Awards- LCD TV/Plasma TV, Ref, Washing Machine,PC

Reader's Digest

EFY Reader's Choice Award For IT & MWO EFY

India's Most Trusted Brands 2007 Brand Equity

4 Ps Business & Marketing : India's 100 Most Valuable AwardsPlanman Consulting & ICMR Ranking

Business Leadership Award in Consumer Durable Sector NDTV

Most Preferred Brand -CTVs, ACs, Ref.and Washing Machines CNBC

Loyalty Awards - Customer and Brand Loyalty in the Consumer Durables SectorIndia Times- Mindscape with Savile-Row

Avaya Global Connect Customer Responsiveness Awards ET Avaya Awards

EFY Reader's Choice Awards 2008 -Microwaves EFY

Smart Living Awards -TV, AC, Microwave & Washing Machine360 degrees, Times of India

Brand for Excellence 2008 VAR India

Reader's Digest Trusted Brand : Platinum Awards -AC. Gold Awards - LCD TV /Plasma TV,Ref, PC

Reader's Digest

Most Preferred Brand- Consumer Electronics and Home AppliancesCNBC Awaaz Consumer Awards

Most Admired MNC in India 4P’s Award

223

LG Electronics sweeps awards in the consumer durable category at CNBC Awaaz Consumer Awards 2007

LG Electronics India Pvt. Ltd., today re-iterated their leadership

position, by being adjudged the most preferred brand in Colour

Television, Air Conditioners, Refrigerators and Washing Machines

category at the CNBC Awaaz Consumer Vote Awards 2007.

AWAAZ Consumer Vote 2007 holds special significance they

were conferred post a nation-wide extensive and exhaustive

research spanning 35 widespread locations and 42 products and

service categories this year. The locations adequately represented

the heterogeneous nature of India in terms of geography (zones)

and population size (town classes: metros, mini-metros and class I

towns). 10,000 consumers participated in the survey conducted by

international market research firm AC Nielsen ORG MARG.*

Elated at receiving the awards, Mr. Moon B Shin, Managing

Director , LGEIL said “LG has set benchmarks in excellence in

consumer durable standards and it was an honor to receive these

awards especially because it comes directly from the consumers. It

is the over whelming response that we have received from our

customers that LGEIL has able to scale these heights in the

224

consumer durable industry. It has been our endeavor to create an

exceptional brand which showcases the principles of the company

and I am confident that we will continue to grow and scale up our

design and delivery, to preempt present and future needs of our

customers.”

LG India has a market share of 25.6% in washing machines,

28.9% in air conditioners, 25.6% in Colour Televisions, 24.8% in

refrigerators and is the market leader in all these categories, as per

ORG data (Jun 2007)

- End -

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG

Electronics, South Korea was established in January 1997 in India.

It is one of the most formidable brands in consumer electronics,

home appliances, IT hardware and mobile communications space.

In India for a decade, LG has earned a premium brand positioning

and is the acknowledged trendsetter for the industry.

LGEIL has achieved a turnover of Rs 8250 crore in 2006. LGEIL's

manufacturing unit at Greater Noida is one of the most eco-

friendly units among all LG manufacturing plants in the world.

The second Greenfield facility is located at Ranjangaon, Pune has

the capacity to manufacture GSM Phones, Colour Televisions,

225

Microwave Ovens, refrigerators and Optical Disc Drives.This is

India's first mobile phone manufacturing unit and also Asia's

largest Optical Disc Drive manufacturing plant.

LG Electronics is a global company that can introduce you to

the future. For its employees, LG Electronics offers

competitive salaries and a comprehensive range of benefits.

LG Electronics is an innovative company, designing and selling

products, reinforcing the fact that "Life's Good."

LG Electronics offers its employees opportunities to work on

exciting and innovative products that influence the lives of people

worldwide. If you are considering a career change or looking for

your first job, LG Electronics understands that the benefits that a

company can offer you are one of the first things you will

consider.LG Electronics is committed to being a global player,

offering competitive salary and benefits packages.

226

A Healthy and Balanced Life

LG Electronics is committed to helping its employees achieve

financial security and a better quality of life by offering them a

comprehensive and flexible benefits package. More details will be

provided during the application process.

For your reference, these benefits may include: medical insurance,

annual leave (block holiday), company product discounts, etc.

These benefits will keep its employees healthy and enable them to

balance the demands of their work and personal lives.

227

REFERANCE BOOKS:

MARKETING MANAGEMENT

ADVERTISING AND PROMOTIONS

228

BIBLIOGRAPHY

WEBLIOGRAPHY

www.lgindia.com

www.google.com

www.wikipedia.com

www.scirbd.com

229

AUTO MAGAZINES

Business world

Business today

LG magazine

Economics times News paper

Times of India

230

APPENDIX

A.S.I Area Service In charge

A.S.M Area sales manager

B.S.I Branch Service In charge

CAC Commercial Air Conditioning System

C.S NET Customer Service Net

D.S.C. Direct service centre.

L.H.D Logistics Head of department

R.E.F Refrigerator

231

232