lg presentation

1. Presented by:-
Pradnya Parsodkar 12BSP
Jaikishan Dhanwani 12BSP0505
Amit Ranjan Jha 12BSP0129
Tejas Joshi 12BSP
Shalini Awasthi 12BSP
Sneha Agrawal 12BSP

2. PRESENTATION CONTENT
• INTRODUCTION
• COMPANY’S HISTORY
• VISION AND MISSION
• BUSINESS DIVISION
• MARKETING MIX
• COMPETITVE ANALYSIS
• MARKET SHARE
• FACTORS FOR SUCCESS
• S.W.O.T ANALYSIS
• CONCLUSION

3. INTRODUCTION
• The company was originally established in 1958 as
Goldstar, producing radios, TVs, refrigerators, washing
machines, and air conditioners.
• The L.G group was a merger of two Korean companies
Lucky and Goldstar.
• Is the second largest producer of television and third
largest producer of mobile phones.

4. HEAD-QUARTER
LG Electronics Inc. CEO: LG Group Vice
LG Twin Towers Chairman Yong Nam
20, Yeouido-dong, Yeongdeungpo-gu, Tel: 82-2-3777-1114
Seoul, Korea 150-721 Website: www.lge.com
Seoul Yeouido South Korea

5. L.G INDIA
• LG Electronics India Pvt. Ltd., a wholly owned subsidiary
of LG Electronics, South Korea was established in
January, 1997 after clearance from the Foreign
Investment Promotion Board (FIPB).
• LG set up a state-of-the art manufacturing facility at
Greater Noida, near Delhi, in 1998, with an investment of
Rs 500 Crores
• In 2004, LGEIL also up its second Greenfield
manufacturing unit in Pune, Maharashtra
• LG plans to set up Rs 500-cr unit in South

6. 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.

7. BUSINESS DIVISIONS
L.G.
GROUP
L.G. ELECTRONICS L.G.TELECOM
L.G.CHEM
MOBILE
INFORMATION AND
COMMUNICATIONS
ELECTRONIC MATERIALS
DIGITAL DISPLAY CHEMICAL AND
POLYMERS
DIGITAL MEDIA
LG SOLAR ENERGY
DIGITAL APPLIANCES INDUSTRIAL MATERIALS

8. LG ELECTRONICS
• HOME ENTERTAINMENT
• HOME APPLIANCES

9. • MOBILE COMMUNICATION
• AIR CONDITIONS & ENERGY SOLUTIONS

10. MARKETING MIX
Mobile Phones
RS 1000-32000
Vacuum Cleaners Cooking Appliances
RS1000-15000 RS 2000-20000
PRODUCT &
PRICE TV / Audio / Video
RS 4000-150000
Air Conditioners
RS-15000-80000
Washing Machines
Refrigerators
RS 5000-30000
RS 6000-35000

11. 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.
PROMOTION
• LG promote its product s through Newspaper, T.V.,
Radio, hording and taking part in events etc.

13. COMPETITIVE ANALYSIS

14. ANNUAL PRODUCTION GRAPH
2500000
2000000
1500000 TELIVISION
REFRIGIRATOR
1000000 WASHING MACHINE
COLOUR MONITOR
500000
0
2005 2006

15. MARKET SHARE
MARKET SHARE IN
HOME ENTERTAINMENT ELECTRONICS
LG
1.4 2.3 SAMSUNG
5.3 4.4 6.2 SONY
21.6
9.6 PHILLIPS
24.6 SANSUI
VEDIOCON
23.6
BPL
IGO
ONIDA

16. LG: LOOKING GREAT
Category Market share in volume terms
CATEGORY 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)

17. Factors for success
REGIONAL CHANNEL STRATEGY
AND 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.

18. 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’.

19. 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.

20. 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.

21. 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.

22. CORPORATE SOCIAL
RESPONSIBILITY
• Global Take-Back Policy
• Guidance on the Disposal of End-of-Life
Products
• Recycled Plastic Applications

23. 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.

24. S.W.O.T. ANALYSIS
STRENGTHS
• Market leader in home appliances.
• Has got manufacturing unit in tax incentive .
• Wide range of products to serve all categories.
• Widest distribution network in the industry(47
barnches,10000 trade partners).
• Good after sales service offered.
WEAKNESSES
• Samsung being its competitor provides similar
products.
• Consumers compare L.G with Samsung its
Korean rival not with other global companies.
• Lack of expert operators for complex machines
due to illiteracy and lack of training in India.

25. OPPORTUNITIES
• Fast growth of the home appliances market
• Shifting to rural areas
• Thus maintaining control over the market and
the highest share in home appliances market
THREATS
• Close competitors like Samsung are compared to
it.
• Price war with Samsung.
• Competition from Indian brand and other foreign
brands.

26. 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

27. • 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