Presented by:- Pooja Arora Priya Talwar Lovely Khurana Anjali Sagar

INTRODUCTION

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. 

The LG Group was formed through the merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived

.LG Electronics, is a global leader and technology innovator in consumer electronics, mobile communications and home appliances.With 117 operations around the world, LG achieved global sales of KRW 54.26 trillion (USD 49 billion) in 2011. LG is comprised of four business units – Home Entertainment, Mobile Communications, Home Appliance, and Air Conditioning & Energy Solutions .

TIMELINE OF L.G

1958Founded as GoldStar

1960Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners

In 1995, to compete better in the Western market, the Lucky-Goldstar Corporation was renamed "LG". The company also associates the letters LG with the company's tagline "Life's Good", which is actually a backronym. Since 2009, LG has owned the domain name LG.com.

In 1996 LG formed a joint venture with IBM; it was later terminated.

Since 2001, LG has two joint ventures with Royal Philips Electronics: LG Philips Display and LG Philips LCD, but later Philips sold off its shares.

2002Under LG Holding Company system, separates into LG Electronics and LG Corporation Full-scale export of GPRS color mobile phones to Europe Establishes CDMA handset production line and R&D center in China

In 2005, Becomes fourth-largest supplier of the mobile handsets market worldwide Develops world's first 3G UMTS DMB handset, 3G-based DVB-Hand Media FLO DMB Phone with time-shift function and DMB notebook computer 

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 - Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives." 

2009 - Became second-largest LCD TV provider worldwide Became third-largest supplier of mobile handsets market worldwide Became Global Partner and Technology Partner of Formula One™

2010 - Unveiled the world’s first and fastest dual-core smart phone, LG OPTIMUS 2X and also Unveiled the world’s first full LED 3D TV

2011 - Introduced CINEMA 3D Smart TV combining industry-leading 3D technology and smart TV capabilitiesUnveiled smart appliances delivering the consumer benefits of smart savings and smart convenience

2012 - First to market world’s first 84-inch ULTRA HD TV Introduces world-leading smart appliances with enhanced connectivity and greater convenience

On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to become second largest in US. market share.

On August 7th 2013, comScore released a report of the June 2013 U.S. Smartphone Subscriber Market Share that found LG fell to fifth place in the U.S mobile market share. 

VISION AND 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.

BUSINESS DIVISIONS

L.G. GROUP

L.G. ELECTRONICS

MOBILE COMMUNICATIONS

DIGITAL DISPLAY

DIGITAL MEDIA

DIGITAL APPLIANCES

L.G.CHEM

INFORMATION AND ELECTRONIC MATERIALS

CHEMICAL AND POLYMERS

LG SOLAR ENERGY

INDUSTRIAL MATERIALS

L.G.TELECOM

LG ELECTRONICS

• HOME ENTERTAINMENT

• HOME ENTERTAINMENT

• HOME APPLIANCES

• MOBILE COMMUNICATION

• AIR CONDITIONS & ENERGY SOLUTIONS

PRODUCT & PRICE TV / Audio / Video

RS 4000-150000

RefrigeratorsRS 6000-35000

Washing MachinesRS 5000-30000

Air ConditionersRS-15000-80000

Cooking AppliancesRS 2000-20000

Vacuum CleanersRS1000-15000

Mobile PhonesRS 1000-32000

MARKETING MIX

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.

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

PROMOTION

COMPETITIVE ANALYSIS

ANNUAL PRODUCTION GRAPH

2005 20060

500000

1000000

1500000

2000000

2500000

TELIVISIONREFRIGIRATORWASHING MACHINECOLOUR MONITOR

MARKET SHARE

21.6

24.623.69.6

5.34.4

1.42.3

6.2

LG

SAMSUNG

SONY

PHILLIPS

SANSUI

VEDIOCON

BPL

IGO

ONIDA

HOME ENTERTAINMENTMARKET SHARE IN ELECTRONICS

LG: LOOKING GREAT Category Market share in volume

termsCATEGORY 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)

REGIONAL CHANNEL STRATEGYAND WIDE DISTRIBUTION NETWORK

LG has adopted the regional distribution model in India. 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 over India.

Factors for success

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’.

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.

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.

PRODUCT LOCALISATION

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.

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.

CORPORATE SOCIAL RESPONSIBILITY

Global Take-Back Policy

Guidance on the Disposal of End-of-Life Products

Recycled Plastic Applications

FUTURE PLANS

LG has a positive perception of India and the Indian consumer.

LG is making a foray into the e-commerce market in India and has partnered with various local websites like fabmall.com, rediff.com, indiatimes.com, and indiaplaza.com.

LG is also planning to invest over US$ 208 million in India over the next three years to expand the business.

Mobile software development is also on LG’s agenda.

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

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

STRENGTHS

WEAKNESSESo Samsung being its competitor provides

similar products.o Consumers compare L.G with Samsung its

Korean rival not with other global companies.

o Lack of expert operators for complex machines due to illiteracy and lack of training in India.

OPPORTUNITIESo Fast growth of the home appliances marketo Shifting to rural areaso Thus maintaining control over the market and the highest share in home appliances market

THREATS

o Close competitors like Samsung are compared to it.o Price war with Samsung.o Competition from Indian brand and other foreign brands.

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

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