LG COMPANY. PRESENTED BY Priti Pandey 12DF007 PGDM-FC.
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COMPANY BACKGROUNDThe company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym*.Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of Gold Star (Hangul:금성).In January 2009 LG was able to buy the domain name, LG.com, placing it among the companies who own their two letter brand's domain name.
Name/Title Current Board MembershipSang-Beom Han, 57Chief Executive Officer, Director & EVPLg Display Co., Ltd.Ho-Young Chung, 51Chief Financial Officer, Director & EVPLg Display Co., Ltd.Tae-SikAhn, 56Outside DirectorLg Display Co., Ltd.Jin Jang, 58Outside DirectorKolon Industries, Inc., Lg Display Co., Ltd.William Y. Kim, 56Outside DirectorLg Display Co., Ltd.
Mr. Soon H. KwonManaging Director and DirectorMr. Y. V. VermaChief Operating OfficerMr. Chandramani M. SinghProduct Chief and Head of Consumer ElectronicsAge: 44Mr. R. ManikandanBusiness Group Head of Digital Display & StorageMr. V. RamachandranHead of Strategy
The marketing mix is the organization's overall offer, or value, to the customer.
1. PRODUCT STRATEGY
LG's objective is to provide world class product to upper class and upper middle class to enjoy real luxury in their life. Since LG is a Korean brand and being imported from Korea, it has very advanced features, which are normally demanded by in developed countries.
LG also insures that whatever product they market should be durable enough which last quite many years and give trouble free service to their customers. It provides its refrigerators, five years compressor guarantee and one year free service in spare parts under normal use.
The LG pricing strategy is cost + fixed mark up to cover their GP. Since they cater to upper middle and upper class, therefore their 90% dealers are in big cities only.
Product-wise price list enclosed in appendix for reference.
3. PROMOTION STRATEGY
Advertising strategy of LG is concerned, it is being planned and executed by LG, Korea through their Pakistan Office keeping in view their global approach and theme line.
Since LG is a multi-national brand, their spending on advertising is in such a way that their all product get promoted.
Although for different product they have got different agent; like for TV, New Electronics/Karachi. For computer monitor, Vision Computer. For mobile phone, Chimera.
LG refrigerators are imported. Mostly they import from Korea and some of the models are imported from China as well. LG relatively don't maintain loose stock at their end.
They ask their dealer to maintain sufficient stock at-least 4-6 week at their end. Rather they believe in replenishment of dealer stock based on their sales.
As mentioned above, they have only 300 dealers mostly in big cities and some in small towns. They also have got a policy that retail price all over the country should be uniformed .
PRODUCTS OF LGCONSUMER ELECTRONICSLCD TV, Plasma display, Display panel,color television, music system, DVD recorder/ player,MP3 and MP4 player.HOME APPLIANCESRoom air conditioner, commercial air conditioner,refrigerator,washing machine ,dish washer,microwave,vaccume cleaner
COMPUTER PRODUCTSlaptop, personal computer,LCD monitor, optical storage devices.MOBILE PHONEPremium trend setter phone, camera phone, mobile phone, color screen GSM handset
LG Electronics India the leading consumer electronics company in the country has always catered to the needs and requirements of its Indian Consumers. With its robust Research and Development, LG has introduced the latest and best technology home. Adding another feather to its cap, LG Electronics India has successfully implemented the global In-Plane Switching Technology to its LCD Panels in the country.
LG had Abhishek Bachhan, John Abraham, Samsung Has Aamir Khan,Videocon had Amithabh Bachhan and now Sharukh Khan, andAll these players have used celebrity to a good effect to endorse their brands. On the other hand Onida is stuck with itsold ³Devil´ which isn't helping.
COCOMPETITOR ANALYSISLG ELECTRONICSLG Electronics rightly understood the consumer motivations to create magnetic products, price them strategically, position them sharply and keep making the magnetism more potent.SAMSUNGInitially the strategy of Samsung in India was to create premium image by emphasizing global brand. After facing stiff competition from another Korean major- LG, Samsung also started playing price game.
LG Electronics India Private Limited (LGEIL) is targeting to corner a 42 per cent pie of the monitor market in India by the end of this year.
“According to a Cyber Media Research report, LG’s current market share in India is 33.7 per cent, while south contributes 40 per cent to the company’s overall monitor sales,” YV Verma, chief operating officer
Verma said the company would focus more on B2B products sales this year. The company expects a growth of 30 to 35 per cent this year.
Currently, LG has 33.7 per cent monitor market share and it targets to achieve 42 per cent by the end of 2011.
NSESep 28, 17:00252.201.80 (+0.72%)VOLUME 612PREV. CLOSE250.40OPEN PRICE250.45TODAY’S LOW/HIGH 250.45 257.0052 WK LOW/HIGH 232.70 362.00
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