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PRESENTATION ONLG ELECTRONICS

PRESENTED BY:-AKASH SHARMA

ANKIT KUMARROHIT NIMORESHIKHA GUPTAFARAZ AHMEDDHRUV GUPTA

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PRESENTATION CONTENT INTRODUCTION

COMPANY’S HISTORY

VISION AND MISSION

DISCOVERING KEY CATEGORY BARRIER

- LG’s INNOVATION

PRODUCT LINE

MARKETING MIX

COMPETITVE ANALYSIS

INNOVATIVE MARKETING STRATEGY

OPERATION STRATEGY

FACTORS FOR SUCCESS

CORPORATE SOCIAL RESPONSIBILITY

KEY STRATEGY OF LG

AWARDS & ACHEIVEMENTS OF LG

STANDING POSITION

R & D POTENTIALS

S.W.O.T ANALYSIS

CONCLUSION

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INTRODUCTIONo LG Corp. founder Koo In-Hwoi established

Lak-Hui Chemical Industrial Corp. in 1947.o GoldStar  was an electronics company

established in 1956. o In 1958, Both companies Lucky

and GoldStar merged and formed as Lucky-Goldstar in Seoul. o Worlds second largest manufacturer of electronic

goods.

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• World wide -82,000(2015)employees• Parent - LG Corporation• Total revenue -  ₩ 56.50 trillion (2015)• Headquarters - Yeouido-dong , 

Seoul, South Korea• Joint ventures with Philips-led lights• LG Electronics is public company.• Slogans

"LG, We put people first!" (1997–1999) "LG, Digitally Yours" (1999–2004) "LG, Life's Good" (2004–present)

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HISTORY

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VISION & MISSION

• Vision LG’s Vision is to become a worldwide leader in digital that ensures customer satisfaction through innovative products and superior services.• Mission

To create value for customers. To respect human dignity. To become best in its field.

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Product line

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MARKETING MIX

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PRODUCT Television –

55-inch OLED TV 65-inch and 77-inch OLED TV LG Smart TV Plasma TV

Smart Devices and mobile phones –  A varied range of tablet devices and smart phones like-

G3, G Flex G2

A smart watch that is based on Android wear

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HOME ENTERTAINMENTMusic systemsHome theatre systemsBlu ray playersDVD players

COMPUTER PRODUCTS like monitors Home appliances

RefrigeratorsDishwashersMicrowave ovensVacuum cleanersWashing machinesWater purifiersAir conditioners

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PRICE TV / Audio / VideoRS 14000-100000

RefrigeratorsRS 15000-125000

Washing MachinesRS 11000-85000

Air ConditionersRS-22000-90000

Cooking Appliances & vacuum cleanerRS 3500-30000

Mobile PhonesRS 10000-48000

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PLACE

• LG product available in LG retail showroom, malls ,private retail shop.

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

• LG Electronics controls 114 local subsidiaries in India

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PROMOTION

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

Global Newspaper T.V Hording Taking part in events like

ICC world cup, foot ball leagues……etc

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COMPETITIVE ANALYSIS

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INNOVATIVE MARKETING STRATEGIES To make itself a known brand in the consumer electronics sector, LG has

taken innovative marketing and promotional initiatives:

• Launch of new technologies in consumer electronics and home appliances. • LG was the first brand to enter cricket in a bigway, by sponsoring the 1999

World Cup, and followed it up in 2003 as well. • LG brought in four captains of the Indian cricket team to endorse its

products. LG invested more than US$8 million on advertising 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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OPERATION STRATEGY

To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi.

LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. 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 Sigma exercise LGEIL had initiated earlier.

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REGIONAL CHANNEL STRATEGYAND WIDE DISTRIBUTION NETWORK

• LG has adopted the regional distribution model in India. All the distributors work directly with the company.

• 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 over India.

FACTORS FOR SUCCESS

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Corporate Social Responsibility

• Recycling of Plastic Applications.

• Providing school meals in the 15 LG

Hope Schools through the slum districts

in Kenya.

• Supporting to develop local infrastructure

such as ponds and road in Asia.

• Global Take-Back Policy

• Guidance on the Disposal of End-of-Life

Products

• Recycled Plastic Applications

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KEY STRATEGY OF LG

Product localisation is a key strategy used by LG. • LG came out with Hindi and regional language menus on its

TV.

• Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural markets.

• LG was the first brand to introduce gaming in CTVs. In continuation of its association with Cricket, LG introduced the cricket game in CTVs.

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Awards & Achievements

• 2008 Selected as the Most admired Multi- National Company in India.

• 2009 Presidential Award for the Best Design in Indonesia.• 2009 Selected as the best 3G mobile handset maker in

China.• 2009 Presidential Award for Korea IT Innovation.• Since 2004,it honored with more than 130 CES Innovation

awards.• 2013-it honored with 10 CES 2013 innovation awards for smart innovations in U.S.

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Standing positions

2nd in home entertainment. 1st in air conditioners. 5th in mobile comm. 1st in home appliances.

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R&D POTENTIAL

• LG has set up research and development facilities in India at Bangalore and is in the process of setting up another at Pune.

• Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customised R&D for specific countries to which it exports products.

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S.W.O.T. ANALYSIS• Wide range of products to serve all categories.• Widest distribution network in the world.• Good after sales service offered.• Market leader in home appliances.

STRENGTHS

WEAKNESSES• Samsung being its competitor provides similar products.• Consumers compare L.G with Samsung its Korean rival not

with other global companies.• Brand lacks influence in the segment of early adopters .

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OPPORTUNITIES•Fast growth of the home appliances market

•Shifting to rural areas

•Sponsorships with F.C teams

THREATS

•Close competitors like Samsung are compared to it.

• Price war with Samsung

•Global recession

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CONCLUSION

• 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

• Air Conditioners LG is the dominant player in the market Closer user perception shared with Voltas LG rated low on Technological aspects like Noise Levels Hitachi was positioned high for producing low Noise Levels.

• LCD Television Sony is the Market Leader in LCD TV segment. Samsung – LG, very similar user perception, directly competing with each other.