4. Challenges Faced in India
Low brand awareness
One of the last MNC’S to enter India. (Samsung, Sony, &
Panasonic entered in 1995 & LG in 1997.}
High import duty.
Competition from local players and other
multinational companies in the consumers
electronics segment.
Price sensitiveness of Indian consumers.
5. Slogans of LG
"LG, Future's Technology" (June 1, 1997 – November 30,
1999)
"LG, Digitally Yours" (December 1, 1999 – June 30, 2004)
"LG, Life's Good" (July 1, 2004 – present)
6. Marketing mix
Marketing mix is defined as “those elements of a
firm’s marketing strategy which are designed to
meet the needs of its customers”. There are four
factors which are called 4Ps, and they are
product, price, promotion, and place
7. Products
LG pays attention to upper and upper middle classes and
provides products for those consumers. High quality and
good service of LG products are so progressive that
products are output to developed countries. The products
include TV audio video, mobile phones, home appliances,
IT products, and air conditioning.
8.
9. Pricing
The pricing strategy of LG is “cost plus fixed mark up”. Following
the pricing policy, LG’s formula is “import cost + reasonable gross
profit”. The formula is used to cover the market cost and make
profits in any market.
10. Place
LG’s merchandise is sold throughout the world, especially
developed regions. There are numbers of LG retailers in big cities
LG sells its products in home appliance interlink retail enterprises
11. Promotion
One effective way of promotion is advertisement. As a famous
brand, LG advertises its products to get promoted.
LG is accustomed to inviting famous stars to advertise its
merchandise.
12. R&D Potential
LG has set up research and development facilities in India at
Bangalore and Pune. Both the units carry out R&D work for the
domestic market as well as for the parent company. It also does
customized R&D for specific countries to which it exports products.
The R&D facility in India, where LG has been investing Rs 2 billions
per annum, accounts for 90% of the innovations.
18. Conclusion
The following information tells us that proper marketing
skills and strategies are immensely important for any
company to build and maintain its stand in a widely
diversified country like India where customer satisfaction
comes at a high cost.
LG has proved its mettle by providing its customer with value
for money, along with maintaining and at times increasing its
profit.
LG is surely the perfect example for other MNC’S
who want to set their foot in India.
