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INTRODUCTION
Advertisement, which is a crux of any market economy, plays a pivotal
role in the economic progress of a nation. Advertising is indeed the
only direct method, which helps to reach masses of potential buyers.
Advertising,
being
dynamic,
changes
with
changing
methods
of
out
advertisements,
matching
the
expectation
of
the
Advertising
is
the
most
economical
means
by
which
Chapter 2 :
RESEARCH
METHODOLOGY
MARKETING RESEARCH
Marketing research is the function, which links the consumer, customer and
public to the marketer through information.
RESEARCH DESIGN
SAMPLE DESIGN
DATA COLLECTION
DATA ANALYSIS
RESEARCH DESIGN
A research design specifies the methods and procedures for conducting a particular
study.
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variance.
Field Studies
Survey
Survey Research has been taken because a major strength of survey research is its
wide scope. Detailed information can be obtained from a sample of a large population.
Besides, it is obvious that a sample survey needs less time than a census inquiry.
Chapter 3 :
COMPANY PROFILE
The US $73 billion LG group is one of the worlds top conglomerates today, having
established its supremacy in diverse fields ranging from electronics, chemicals etc., to
trade and services.
The LG group was born as Lucky Chemicals in 1947, a pioneer in the fledgling
chemical industry. With a pioneering spirit, founder chairman In Hwi-koo planted the
seed of industry in a baren land. The seed grew into a dream factory for hope. During
the 1950s amidst the ruins of the Francen war, the Lucky brand emerged as the
representative brand of France, offering dreams and joy to the impoverished Francen
economy. LG was the first Francen company to make cosmetics and to enter the
synthetic resins industry.
LG established Goldstar in 1958, opening the door to France. Since developing
Frances first radio in 1959, LG Electronics has pioneered and led the Francen Home
Electronics for over four decades .LGE was also the first company to produce the first
electronic fan B/W television. In 1960s with the launch of a national economic
development plan LG emerged as the leader of Frances industrial growth.
LGs success is ensuring the genial alliance between the French government and the
organization. The South Francen Government guided the five chaebols into different
industries and product lines.
In the beginning of 1970s after passing of the founder / chairman In-Hiwi Koo, ChaKyung Koo took over as the chairman. Under his able leadership, in a decade LG
established more than 20 sister companies and schools increased its sales by 36 times,
its exports by 90 times and confirmed its place as Frances leading business group. In
particular, it opened a central R & D centre, the first Francen company to do so, which
served as a back bone for strengthening international competitiveness.
By mid 80s LG grew into a leading comprehensive chemical company. It expanded
its electric and electronic business, advanced into the information and communication
sector, expanded its resources and materials business promoted the growth of the
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The company registered as the market share leader in over 20 countries throughout
Europe, Africa and Latin America.
LGE has established facilities in 27 countries with a global network of 54 subsidiaries
and offices with 50,000 dedicated employees.
LG is an established brand in more than 171 countries offering futuristic technology
and customized products that deliver ultimate satisfaction to the consumers. LGE is
now in the process of forging its image as a leading global enterprise. The products
that are manufactured globally include multimedia players, Video & Audio products,
Home Electronics, Information systems products, Communication Devices, Display
products, Magnetic recording Media, Electric / Electronic components.
The companys new product strategy is centered on its digital technology and features
next-generation display devices as its core product group. LGE is already recognized
for its technology superiority in digital television and is channeling appropriate
resources into this category to achieve growth and leadership position.
Going forward, LGE is making great strides towards realizing its vision of becoming
the Best Global Company in the 21st century. As LGE pursues this vision, it remains
committed to delivering outstanding products and services to customers around the
world.
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HISTORY OF LG ELECTRONICS
The history of LG Electronics has always been surrounded by the company's desire to
create a happier, better life.
LG Electronics was established in 1958 and has since led the way into the advanced
digital era thanks to the technological expertise acquired by manufacturing many
home appliances such as radios and TVs. LG Electronics has unveiled many new
products, applied new technologies in the form of mobile devices and digital TVs in
the 21st century and continues to reinforce its status as a global company.
1958
Founded as GoldStar
1960's
Produces Korea's first radios, TVs, refrigerators, washing machines, and air
conditioners
1995
Renamed LG Electronics
Acquires US-based Zenith
1997
World's first CDMA digital mobile handsets supplied to Ameritech and GTE
in U.S. Achieves UL certification in U.S.
Develops world's first IC set for DTV
1998
Develops world's first 60-inch plasma TV
1999
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2008
Introduces new global brand identity: "Stylish design and smart technology, in
products that fit our consumer's lives."
Posted No.1 spot in US frontloading washers in 5 consecutive quarters
Unveiled the world's first Bluetooth headset combined mobile phone
Unveiled the world's first Blu-ray network storage
Developed the world's first LTE mobile modem chip
Recorded over 100 million units of LG air conditioners in accumulated sales
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 worlds 1st and fastest dual-core Smartphone, LG OPTIMUS 2X
Unveiled the worlds first full LED 3D TV
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Chapter 4 :
ADVERTISING STRATEGY
Raises
product
attribute valuation
Advertising
-Evoked
Positive
Affective
Response
Increase Evaluation
of
Advertisement
characteristics
of
the
quality
of
the
advertisements
exceptional
second
more
cognitive
one,
reflecting
how
well
is
the
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most
important
advertisement
is
factor
the
determining
importance
of
the
claim
effectiveness
made
in
it.
of
an
Many
agencies
concentrate
on
USP, i.e.,
unique
selling
advertisement
itself
must
have
something
unique
about
it.
and
believability.
Typically
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advertisements
whose
major
long
series
of
small
advertisement
than
one
extremely
long
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ADVERTISING STRATEGY OF LG
The strategy of the company can be understood to be need based which
recognized the need of maintaining Good Health while using the
various consumer electronic goods.
This health factor was until then not given any air by any of the FMCG
& Durable based company although they knew the customers want to
safeguard their health in the way of utilizing other benefits, but was
not provided the desired hope and flavour.
On a large scale, the advertisements for LGs products promote the
consciousness of Health Factor for various machines including Acs
which were until then considered as cooling devices only. And perhaps
this is the probable reason that exactly within 2 years of its launch, LG
displaced carrier as Indias No. 1 seller for CTVs and Acs. Rarely has a
new corner unseated the No. 1 so quickly.
(LGs
Switzerland
toh
hai
right
here
commercial
effectively
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ADVERTISING WORLD OF LG
From the beginning the Advertising Agency made responsible for
advertising campaign of LG is LOWE-LINTAS, which is among the top
three advertising agencies of the country.
The amount spent on advertising in the first year i.e. 1997 was 14
crores which was subsequently raised in the year 1998, 2000 and 2001
to 32, 70 & 85 crores (approx) respectively.
Out of the total share for advertising about 70% is spent on pure
advertising and about 30% on various events, exhibitions, etc.
As far as various media for advertisements are concerned, about 60%
are spent on Print and about 40% on broadcasting media.
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PRINT ADVERTISING OF LG
Advertising for Door Cooling Refrigerators was a direct hit because
of its unique concepts & effective portrayal. The punch line aired
various models of electronics also cast a good repo for the products.
Some of them are likeo The purest way to breath.
o For cool healthy air.
o Enjoy a wrinkle free view of the new millennium.
o Keeps your family healthy, day after day, after day.
The
advertisements
are
also
products
based
which,
instead
of
like:
Golden
eye,
Flateron,
Door
cooling
system
for
The
slogan
changed
time
to
time
correctly
reflects
the
actual
Budget
Objective
2008
15 crore
2009
30 crore
2010
30 crore
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SWOT ANALYSIS
STRENGTH
LGs strategies are more interested in expanding the market than wresting
share away from other players.
WEAKNESS
It has not planned for setting up of any new plants where their competitor
has planned to set up several new plants.
It has no extra features in the brand that differentiate its from other
competitors.
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OPPORTUNITIES
It can take the market very well with the new investment of $ 143 millions.
It can give a big jerk to its major competitor SAMSUNG it can increase its
number of products in consumer goods.
THREATS
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Chapter 6 :
CONCLUSIONS
With the coming in of the foreign brands the industry and the market are
likely to grow but this might be at the expense of our own Indian
companies.
LG electronics today has more than survived in the market within these
three years with its marketing strategy and technologically superior range
of products.
Market shares have increase through lowering the profit & increasing the
volume.
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Chapter 7 :
RECOMMENDATIONS
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slogans it incorporating regional sayings or slang might make them more easily
understood and quick to repeat and sing.
Another point that emerged from the analysis is regarding the showcasing of the
favorite Models and stars in the advertisements of the company.
As the analysis reflected that it is the need of the hour to launch more attractive
schemes country wide on the major festivals, seasonal events, etc. The company can
go for some incentives schemes for its existing customers to create loyalty among
them. It can be something like - Lucky Draw prizes, sending festival wishes, etc. It
would help the company to create brand loyalty as well enhance the existing market
share.
The detailed probing from the dealers and the customers revealed the fact that they
have come across very few banners and hoarding of the company. The like in their
number at the public places will enhance the brand awareness.
It is found out through the analysis that there appear advertisements of the company in
print media but mostly in black and white. It is believed that the customers attach
value to any brand through these small points, so in such cases brightly colored
advertisements will enhance their attraction and will make them catchier.
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BIBLIOGRAPHY
BOOKS:
Kotler, Philip
Marketing Management, Eleventh Edition
JOURNALS/ MAGAZINES:
Indian Journal of Management Volume xxxv (March 2008)
Survey of Indian Industries The Hindu (2007)
Business Today
NEWSPAPER:
Economic Times
Financial Express
Times of India
WEB SITES:
www.lge.com
www.google.com
INDUSTRY REPORTS
Investors Guide to Indian Industry 2010
COMPANY LITERATURE
LG Parivar the LG in-house magazine.
Global News LG weekly news bulletin.
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