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MARKETING MANAGEMENT PRESENTATION

DATED15-11-2011

DAVV-IIPS

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PRODUCT MIX OF

LG ELECTRONICS

BY:

DIVYA JAIN

JAYA KATARIA

AMRATA SOOD

AKANSHA MALVIYA

DARSHANA LOKHANDE

(GROUP- 2)

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PRODUCT The bundle of utilities or the physical and

psychological satisfaction that the buyer receives is provided by the seller when he sells a particular product.

Philiphs Kotler defines product as:“A product is anything that can be offered

to a market for attention, acquisition use or consumption that might satisfy a want or a need.”

A bundle of utilities consisting of various product features and accompanying services.

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PRODUCT MIXProduct mix is a combination of products

manufactured or traded by the same business house to reinforce their presence in the market, increase market share and increase the turnover for more profitability. Normally the product mix is within the synergy of other products for a medium size organization. However large groups of Industries may have diversified products within core competency. Videocon, L.G, are some examples.

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DIMENSIONS OF PRODUCT MIX Number of products: The amount of

products that is produced by a particular company.

Range of product: A complete portfolio of products that a company manufactures and/or markets.

Type of product: A group of items within a product line that share one of several possible forms of the product.

Product consistency: It refers to how closely related the various product lines are in end use, product requirements, distribution channels.

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Product line: A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

Product length: It refers to the total number of items the company carries within its product lines.

Product width: It refers to the number of different product lines the company carries.

Product depth: It refers to the how many variants are offered of each product in the line.

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LG ELECTRONICS

LG : LIFE’S GOOD

TYPE:- PUBLICFOUNDED :- 1958AREA SERVED :-WORLDWIDEPARENT :- LG GROUPWEBSITES :- LGE.COM LG.COM

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HEADQUARTERS OF LG

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LG A RENOWNED BRAND A Global electronics and Telecommunications

company. Second largest electronics manufacturer. Third largest appliance in the world. Worlds second largest manufacturer of television

sets and third largest producer of mobile phones. LG group is the merger of LUCKY and GOLDSTAR,

two Korean companies. By 2005, LG was among top 100 global brands

and in 2006, LG recorded a brand growth of 14%. LG’s display is now the worlds largest plasma

panel manufacturer.

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LG’S PRODUCT LINE Since its initial years in India, LG has focused on

bringing out new models regularly in its product range. In its first year of operation in India, LG launched 70 models across a range of products. In 1997, it introduced its Golden Eye Technology TV, which had a light sensitive natural algorithm ‘eye’.

The ‘eye’ responded to the changes in lightening in the room, accordingly and adjusted colour sharpness, brightness, contrasting and balance them automatically.

Thus, LG showed that it cared for customer health through its products. LG’s concern for health of customers was its unique selling proposition(USP) in the Indian consumer durable market.

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DIMENSION OF PRODUCT MIX IN LG ELECTRONICSLG operates its business through 6 divisions. These

are also the product width of LG Electronics. These are:

1. Home appliances2. Mobile communications3. Home entertainment4. Computer products5. Air conditioning6. Business solutions The items that comes in the product width is the

product line.

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PRODUCT MIX OF LG ELECTRONICS Home appliances: The home appliances make products like

refrigerators and washing machines. The various home appliances are:-

1. Side by side refrigerator2. Double door refrigerator3. Single door refrigerator4. Washer dryer combos5. Front load washing machine 6. Top load washing machine 7. Semi automatic washing machine 8. Dish washer9. Microwave oven10. Vacuum cleaner 11. Air purifier12. Water purifier

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Mobile communications: LG mobile devices are made for GSM as well as for CDMA networks worldwide. The various mobiles are:-

1. Smart phones2. Touch phones3. Multi media phones4. Dual sim phones5. Basic phones6. All types of mobile phones Home entertainment: The home

entertainment makes products like TV’s, DVD Players etc. For example:-

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1. LCD TV2. Plasma TV3. Color TV 4. Music system5. DVD Player6. LED LCD TV7. Blue Ray Players8. Home Theater System9. PDP Modules10. OLED Panels11. USB Memory12. DVD Records13. MP3 Players

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Computer products: LG provides following computer products:-

1. Desktop2. Flat panel monitors3. LCD monitors4. Projector5. Optical media6. Notebook Air conditioning: The various types of ACs

are:-1. Split AC2. Window AC3. Cassette AC4. Ducted AC

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Business solutions: LG provides various products for business:-

1. Monitors2. Car infotainment3. Telemeters4. Digital signage solutions5. Security devices6. Video conferencing

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GREENER PRODUCTS OF LGIn the latest, LG produced various

Greener Products. They are :1. Mobile Phone: LG has made mobile

phones environment friendly by replacing harmful materials with healthy substitutes, at the same time increasing energy efficiency and recyclability.

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Washing machines: LG electronics has adopted the Life Cycle Assessment(LCA) system for its product development and carries out the development of its eco-products in stages.

TVs: The company has also improved the TV’s light efficiency while enhancing the circuit components and designs, and reducing energy consumption.

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Eco-Design: LG’s eco-design strategies reduce the environmental impact of a product’s development, production and circulation all while improving efficiency of resources and recyclability and reducing use of hazardous materials.

Hazardous substances: Since 2005, LG’s products have ceased to contain any of the six most hazardous substances specified by the EU. LG adheres to strict regulations regarding the management of hazardous substances in its production processes.

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FACTORS INFLUENCING PRODUCT MIX OF LG ELECTRONICS

Changes in demand of product. Change in purchasing power or behavior of the

customers. Change in company targets. The competitor’s actions and reactions. Development of by-products at low cost. Spare marketing capacity. Financial influences of the firm. Goodwill of the firm. Advertising and distribution factors. Possibility of adding new product to its product line

at less cost.

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CONCLUSION Managing the product mix for a

company is very demanding and requires constant attention. Top management must provide accurate and timely analysis of their company’s product mix so the appropriate adjustments can be made to the product line and individual product.

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LG’S SKY CHARGERhttp://www.dailymotion.com/video/x83o9o_lg-electronics-focus-on-reducing-en_tech

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QUESTIONS...??

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THANK YOU