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Shahbaaz Saiyad

S.Y.B.M.S
Roll No: 34

OBJECTIVE
To know the usage and attitude of consumers

towards LG products.
To understands the nature of competition facing the
consumer durables market.
To study LGs marketing strategies.
To analyse the 4 Ps of marketing with respect of LG.
To know peoples perception about the brand which
impacts satisfaction.
To study LGs foray into rural India.
To analyse LG with respect to STP.
To study LGs branding strategies.

VISION
GLOBAL TOP 3 BY 2010
LG Electronics is pursuing its 21st century vision of becoming a

true global digital leader who can make its customers happy
worldwide through its innovative digital products and services.
LG Electronics has set its mid-term and long-term vision anew to
rank among the top 3 electronics, information, and
telecommunication firms in the world by 2010.
As such, we embrace the philosophy of "Great Company, Great
People," whereby only great people can create a great company,
and pursue two growth strategies involving "fast innovation" and
"fast growth." Likewise, we seek to secure three core capabilities:
product leadership, market leadership, and people-centered
leadership.

MISSION
A market like ours comprises both mass and premium-

end segments. Neither can be ignored. While they are


going after the consumer who is market conscious,
they do not ignore those who want high-end products.

MASS MARKET

For the mass market, the company would not like to


use the term 'value-for-money' as at every price point
there is a value for money. But this consumer also
desires products that are aesthetically appealing,
desirable and technologically superior. Their strategy
is to promote LG as a product that satisfies all these
needs.

RURAL MARKET
The rural market IS going to be the main focus at LG. So,

for that, they are opening many more branches across the
country. In September 2002, we had only 18 branches;
now they have 40. Additionally, they have 112 area
offices, none of which were there last year. These area
offices have been opened 10 district-level areas. Below
these area offices, they have remote area offices, which
we call RAOs. Currently, they have 80 RAOs. and are
planning to expand that to 200 by next year, so that they
can reach out to the rural market un a better way and feel
the pulse of consumers and dealers there.

PREMIUM END MARKET


The consumer really is not price-sensitive today.

That is, if you are giving quality products and the


latest technology, they want it. As for their
products in the premium-end segment, in every
product category they have feature-packed
products at every price point LG demands a
premium and the customer IS ready to pay since
he is assure greater value Here again they have
managed the psyche of both these segments
significantly well to be able to achieve numero uno
status in all product categories and segments.

GROWTH STRATEGY
Growth Strategy
Fast Growth
Fast growth is the result of strategies designed
to expand the market size and earnings quickly,
in the process improving the growth rate in
terms of monetary value rather than quantity.

Fast Innovation
Fast innovation involves setting extremely high
innovation goals and securing a competitive
edge, aiming for a target of 30% more than
what our competitors can do. Fast innovation
also means 30% more sales and improvement
in our market share, new product development
and unveiling these 30% faster, developing
technology and establishing corporate value
three years ahead of our competitors.

COMMUNICATION
STRATEGIES
COMMUNICATION THROUGH HEALTH PLATFORM
LG was one of the first companies in the industry to
realize this need of the consumers and. leverage it.
The brand has been successful in creating a
connection with the consumers for being the pioneer
in this communication. Examples are many: 'Golden
Eye' for its televisions, 'Preserve Nutrition' for
refrigerators, 'Fabricare' for washing machines et
cetera. While other consumer durables brands have
also begun using the health platform, they have the
benefit of the first mover advantage.

However, now there has been a strategic shift

in the brand communication and marketing


strategy. Now they have gone a step ahead
and pitched their products on 'happy living'.
This platform extends beyond health and
across all product categories to reflect the
overall well being of consumers.

ADVERTISING
STRATEGIES

LG one of the few companies that recognized the

emerging trend in consumer needs towards health


consciousness. Their advertising strategy has been to
communicate what products actually deliver - health,
convenience, advanced features, and technological
superiority.

LG Communication, till date, was centered at the

theme of 'protective health'. It was driven by LG's


concern for the consumers' health, and having
technology that work -35 protecting them This
platform gave LG the ability to cater to the benefits
that consumers were looking for and was focused on
'product and technology'

SWOT ANALYSIS
SWOT is the tool to see that where
organization stands, which areas required
improvement, which areas required serious
consideration, which would be the source of
growth, which things need avoidance and so
on. The SWOT of LG will help to understand
the position of LG in the market.

STRENGTHS
LG is a multinational company and a recognized brand

around the world. It has successful established not only in


developed countries but also in developing countries.
LG products are reliable, easy to use, and have simple
designs which satisfy customers thats why LG have the
advantage of having loyal customers.
In LG Corporation the research and development has
given greater importance because to satisfy the
customers and provide the customers what they want the
research and development id required.
LG try to keep products innovative to attract the
customers and to capture more market share.
LG is at its growing stage and its growing quickly. It is
producing solid products which rapidly satisfying the
customers.

WEAKNESSES
The big weakness of LG is that it has very few

competent employees mostly are not skilled


and also there is no training and development
concern for employees.

OPPORTUNITIES
The electronic market is expanding rapidly which is

a great opportunity for LG to expand itself in new


market and to capture more market share. It also
can expand its target market geographically and
socially both by introducing new products in existing
market and existing products in new markets.
Through the innovation in existing products it can
attract more customers because at present it is
behind the market leadership so to become a leader
it has to make innovations to attract potential
buyers and retain existing customers.

THREATS
As the competitors of LG are more dominant in the

market and continuously improving their products so


they can take away the existing customers of LG, so
it has to work very hard to retain and attract
customers.
The condition of economy all around the world is not
good and it is affecting the purchasing power and
priorities of the customers, people are facing
difficulties in satisfying basic and needs so how they
can spend on electronics which is considered as
luxury items. This situation can affect the sales of
the company.

CONCLUSION
Relentless Aggression

Within four months of its entry into India. LG


established its presence all over India. LG advertised all
year around, unlike Indian companies, which advertised
seasonally.

Resource Focused on single Differential

LG markets on health platform across its product


range. Golden Eye is CTVs Fabric Care in washing
machines, and Zero Bacteria in ACs.

Leadership in ad spends

LG

allotted around Rs. 1.3 billion for


advertising. Videocons ad spend in contrast,
was just Rs. 300 million. (when nothing else
works, the moto seems to be to, just barge in
on consumer consciousness)

Broad and contemporary product Range


In 2001 LG launched 45 products. In 2002,
this figure increased to 60.


Appropriate Pricing

LG had products across all price points, from

Rs. 8000 CTV Rs.0.1 million plus plasma


projection CTVs LG was not averse to playing
the price game and making massive price cuts
to throttle competition and maintain volume.