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Presented by:-Pradnya Parsodkar 12BSP

Jaikishan Dhanwani 12BSP0505Amit Ranjan Jha 12BSP0129Tejas Joshi 12BSPShalini Awasthi 12BSPSneha Agrawal 12BSP


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PRESENTATION CONTENT

INTRODUCTION

COMP NYS HISTORY

VISION AND MISSION

BUSINESS DIVISION

MARKETING MIX

COMPETITVE ANALYSIS

MARKET SHARE

FACTORS FOR SUCCESS

S.W.O.T ANALYSIS

CONCLUSION


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INTRODUCTION

The company was originally established in 1958 asGoldstar, producing radios, TVs, refrigerators, washingmachines, and air conditioners.

The L.G group was a merger of two Korean companiesLucky and Goldstar.

Is the second largest producer of television and thirdlargest producer of mobile phones.


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HEAD-QUARTER

Seoul South KoreaYeouido

LG Electronics Inc.LG Twin Towers20, Yeouido-dong, Yeongdeungpo-gu,Seoul, Korea 150-721

CEO:LG Group ViceChairman Yong NamTel:82-2-3777-1114Website:www.lge.com
http://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Yeouidohttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Yeouidohttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Seoul


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L.G INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiaryof LG Electronics, South Korea was established inJanuary, 1997 after clearance from the ForeignInvestment Promotion Board (FIPB).

LG set up a state-of-the art manufacturing facility atGreater Noida, near Delhi, in 1998, with an investment ofRs 500 Crores

In 2004, LGEIL also up its second Greenfieldmanufacturing unit in Pune, Maharashtra

LG plans to set up Rs 500-cr unit in South


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VISION AND MISSION

VisionLGs Vision is to become a worldwide

leader in digital that ensures customer

satisfaction through innovative productsand superior services.

Mission

To create value for customers.

To respect human dignity.

To become best in its field.


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BUSINESS DIVISIONS

L.G.

GROUP

L.G. ELECTRONICS

MOBILECOMMUNICATIONS

DIGITAL DISPLAY

DIGITAL MEDIA

DIGITAL APPLIANCES

L.G.CHEM

INFORMATION ANDELECTRONIC MATERIALS

CHEMICAL AND

POLYMERS

LG SOLAR ENERGY

INDUSTRIAL MATERIALS

L.G.TELECOM


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LG ELECTRONICS

HOME ENTERTAINMENT

HOME APPLIANCES


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MOBILE COMMUNICATION

AIR CONDITIONS & ENERGY SOLUTIONS


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PRODUCT &PRICE TV / Audio / Video

RS 4000 150000

Refrigerators

RS 6000 35000

Washing Machines

RS 5000 30000

Air Conditioners

RS 15000 80000

Cooking Appliances

RS 2000 20000

Vacuum Cleaners

RS1000 15000

Mobile Phones

RS 1000 32000

MARKETING MIX


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PLACE

LG product available in lg retail showroom, malls ,privateretail shop.

The services of LG are available in more than 110countries of the world.

LG Electronics controls 114 local subsidiaries in india.

LG promote its product s through Newspaper, T.V.,Radio, hording and taking part in events etc.

PROMOTION


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COMPETITIVE ANALYSIS


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ANNUAL PRODUCTION GRAPH

0

500000

1000000

1500000

2000000

2500000

2005 2006

TELIVISION

REFRIGIRATOR

WASHING MACHINE

COLOUR MONITOR


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MARKET SHARE

21.6

24.623.6

9.6

5.34.4

1.4

2.3

6.2

LG

SAMSUNG

SONY

PHILLIPS

SANSUI

VEDIOCON

BPL

IGO

ONIDA

HOME ENTERTAINMENT

MARKET SHARE INELECTRONICS


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LG: LOOKING GREAT

Category Market share in volume terms

CATEGORY LG NO. 2 PLAYER

REFRIGERATORS 27.2% 21.2 (Whirlpool)

COLOUR TVs 25.5% 22% (Sony)

MICROWAVE OVENS 41.4% 19.7 (Samsung)

WASHING MACHINES 34% 13.8% (Whirlpool)


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REGIONAL CHANNEL STRATEGYAND WIDE DISTRIBUTION NETWORK

LG has adopted the regional distribution model inIndia. All the distributors work directly with the

company. This has resulted in quicker rotation of stocks, and

better penetration into the B, C, and D class markets. LG also follows the strategy of stock rotation, rather

than dumping stocks on channel partners. LG has over 46 branch offices and another 110 area

offices across the country. LG had set a target of developing 2,000 dealers in

2004, in addition to the existing 3,000 dealers all overIndia.

Factors for success


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INNOVATIVE MARKETING STRATEGIES

To make itself a known brand in the consumer electronics

sector, LG has taken innovative marketing and promotionalinitiatives:

Launch of new technologies in consumer electronics and

home appliances.

LG was the first brand to enter cricket in a bigway, bysponsoring the 1999 World Cup, and followed it up in 2003 aswell.

LG brought in four captains of the Indian cricket team to

endorse its products. LG invested more than US$8 million onadvertising and marketing in this sport.

LG has differentiated its products using technology and

health benefits. The CTV range has Golden Eye technology,

air-conditioners have the Health Air System and microwave

ovens have the Health Wave System.


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LOCAL AND EFFICIENTMANUFACTURING TO REDUCE COST

To overcome high import duties, LGmanufactures PC monitors and refrigerators inIndia at its manufacturing facility at Noida, Delhi.

LGEIL had already commissioned contractmanufacturing at Mohali, Kolkata and Bhopal forCTVs. This has helped LGEI to reduce costs.

LGEIL is implementing a digital manufacturing

system (DMS) as a cost-cutting innovation.

This system is a follow-up to the Six Sigmaexercise LGEIL had initiated earlier.


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PRODUCT LOCALISATION

Product localisation is a key strategy used byLG.

LG came out with Hindi and regional language menus

on its TV.

Introduced the low-priced Cineplus and Sampoornarange for the rural markets.

LG was the first brand to introduce gaming in CTVs. In

continuation of its association with Cricket, LGintroduced the cricket game in CTVs.


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R&D POTENTIAL

LG has set up research and developmentfacilities in India at Bangalore and is in theprocess of setting up another at Pune.

Both the units carry out R&D work for thedomestic market as well as for the parent

company. It also does customised R&D forspecific countries to which it exportsproducts.


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CORPORATE SOCIALRESPONSIBILITY

Global Take-Back Policy

Guidance on the Disposal of End-of-LifeProducts

Recycled Plastic Applications


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W Y


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S.W.O.T. ANALYSIS

Market leader in home appliances. Has got manufacturing unit in tax incentive . Wide range of products to serve all categories. Widest distribution network in the industry(47

barnches,10000 trade partners). Good after sales service offered.

STRENGTHS

WEAKNESSES

Samsung being its competitor provides similar

products. Consumers compare L.G with Samsung its

Korean rival not with other global companies. Lack of expert operators for complex machines

due to illiteracy and lack of training in India.


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OPPORTUNITIES

Fast growth of the home appliances market Shifting to rural areas Thus maintaining control over the market and

the highest share in home appliances market

THREATS

Close competitors like Samsung are compared to

it.Price war with Samsung.Competition from Indian brand and other foreignbrands.


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CONCLUSION

Mobile Phones Nokia is the market leader,

followed by Sony Ericsson.

LG is an emerging player Direct competition

with Samsung, owing to similar user

perception

Refrigerators LG is the dominant player in the

market Other Players have a segmented

market share Unstructured Positioning of all

other Players


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Air Conditioners LG is the dominant playerin the market Closer user perception

shared with Voltas LG rated low onTechnological aspects like Noise LevelsHitachi was positioned high for producinglow Noise Levels.

LCD Television Sony is the Market Leaderin LCD TV segment. SamsungLG, verysimilar user perception, directly competingwith each other

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