Consumer Electronic Goods in

india
with reference to LG & samsung

Deena
Divya bharthi
Vamsi prakash
Deepak.G.S.R
Gowtham.M
Haneesh.U
ELECTRONIC INDUSTRY…..
 The Electronics Industry in India took off around 1965 with an
orientation towards space and defense technologies. This was
rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with
transistor radios, Black& White TV, Calculators and other audio
products. Color Televisions soon followed.

 In 1982-a significant year in the history of television in India - the

government allowed thousands of color TV sets to be imported
into the country to coincide with the broadcast of Asian Games in
New Delhi.

 1985 saw the advent of Computers and Telephone exchanges,

which were succeeded by Digital Exchanges in 1988. The period
between1984 and 1990 was the golden period for electronics
during which the industry witnessed continuous and rapid growth.
INTRODUCTION
TO

 The 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 Gold
Star, from which the abbreviation of LG was derived.

 The Gold Star brand is still perceived as a discount brand. In 1995, Gold
Star was renamed LG Electronics, and acquired Zenith Electronics of the
United States.
 LG Electronics is playing an active role in the world market with its
assertive global business policy.
 LG Electronics controls 110 local subsidiaries in the world with
around 82,000 executive and employees.
Company Profile…..

Established in 1997, LG Electronics India Pvt. Ltd., is a

wholly owned subsidiary of LG Electronics, South
Korea.
Impressive portfolio - Consumer Electronics, Home
Appliances, GSM mobile phones and IT products.
Manufacturing facility at Greater Noida.
LG has been able to craft out in ten years, a premium
brand positioning in the Indian market and is today
the most preferred brand in the segment.
 PRODUCTS
Mobile communications
CDMA Handsets
GSM Handsets
3G Handsets
Cellular Phones

Digital appliance
Air Conditioners
Refrigerators
Microwave Ovens
Washing Machines
Vacuum Cleaners
Home Net
Compressors for Air Conditioners and refrigerators
Digital display
a) Plasma TVs
b) LCD TVs
c) Micro Display Panel TVs
d) Monitors
e) PDP Modules
f) OLED Panels
g) USB Memory
h) Flat Panel Computer Monitors
Digital media
a) Home Theater Systems
b) DVD Recorders
c) Super Multi DVD Rewriters
d) CD±RW
e) Notebook PCs
f) Desktop PCs
g) PDAs
h) PDA Phones
i) MP3 Players
j) New Karaoke Systems
k) Car Infotainment
DISTRIBUTION&MARKETING
STRATEGY
The company has number of dealers and warehouses. They have LG exclusive
shopee.

For the marketing of the products a number of activities are followed

 Exhibitions are conducted from time to time.

 Society and college activities are conducted.

 Hoarding, Posters, banners are used so as to grab the attention of the

costumers.

 Day to day advertisement in leading newspaper.

 Discount at festival time.

 For dealer relationship they arrange dealer meting at several time in the year

 LG divide dealer in gold silver etc. category to know the performance of the
dealers.

 They have their sales persons at various sub dealer store and at mordent
trade store for particularly for the promotion of the LG product.

 LG also uses the radio FM for the promotion activities.

 Also provide capon and scratch card for festive season.

 LG – CRICKET

 LG has differentiated its products using technology and health benefits.

 CTV - ‘Golden Eye’ technology
 Air-conditioners - ‘Health Air System’
 Microwave Ovens -‘Health Wave System’.
Local and Efficient Manufacturing
 To overcome high import duties,
LG manufactures PC monitors and
refrigerators.

 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.
Product localizations
Product localization 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 CTV’s. In
continuation of its association
with cricket, LG introduced the
cricket game in CTV’s.
Promotion…..
 Of all the elements of marketing mix,
LG seemed to have put more emphasis
on promotion and advertising.

 In 2002, it spent around 1.3 billion on advertising. An ad agency which

handled the account of one of the LG's rivals, commented:
"Communication creates a mind space among the consumers and LG
has occupied that fairly well."

 Unlike many Indian brands which advertised seasonally i.e., (two-three

months of the festival season-September, October and November), LG
advertised all round the year.
 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 customized R&D for specific countries to which it exports
products.

 The R&D facility in India, where LG has been investing Rs 2 billion per
annum, accounts for 90% of the innovations.
 TURN ON
TOMMORROW
 INTRODUCTION
• Samsung is one of the world’s largest technology providers.

• It started out as trading company exporting various products from South Korea to Beijing,

China.

• Founded by Lee Byung-chul in 1938, Samsung gradually developed into the multinational

corporation that it is today.

• The word Samsung means “three stars” in Korean.

• SAMSUNG is dedicated to develop innovative technologies and efficient processes that create

new markets, enrich people's lives, and continue to make Samsung a digital leader.
 Samsung in India

 Samsung India is the hub for Samsung's South West Asia Regional

operations.
 The South West Asia Headquarters, under the leadership of Mr. J S Shin,

President & CEO, looks after the Samsung business in Nepal, Sri Lanka,
Bangladesh, Maldives and Bhutan besides India.
 Samsung India which commenced its operations in India in December

1995 headquartered in New Delhi.

 Samsung India has widespread network of sales offices all over the country
 Dong-Min Chae-Woong In-Ho Oh-Soo
Yoon-Woo LeeGee-Sung ChoiJu-Hwa Yoon
Yoon Lee Lee Park
 KEY BUSINESS AREAS
 MOBILE PHONES
 TV/ AUDIO/VIDEO
 CAMERAS & CAMCORDERS
 PC/PERIPHERALS/PRINTERS
 HOME APPLIANCES
 REFRIGERATORS
 AIR CONDITIONERS
 WASHING MACHINES
Vision 2020
Samsung Electronics vision for the new
decade is, "Inspire the World, Create the
Future.“
The Samsung Philosophy
To devote our talent and technology to
creating superior products and services that
contribute to a better global society.
SAMSUNG BUSINESS
PRINCIPLES
Marketing strategies

Product innovation
Pricing
Distribution
Advertisement & sales promotion
 Sales and distribution strategies
 Samsung Mobiles India is reviving its sales and distribution arrangement in
India with 17 sales offices in smaller key markets .
 . It will focus on enhancing sales channels in order to achieve better results in
2009.
 Samsung will focus on IT products in 2009.In this category there will be
products like the notebook
 bring down channel inventory,
Social contribution
 Samsung India has announced a Samsung Scholarship Programme to support

seven top Indian athletes as they prepare for the forthcoming Beijing Olympics.
 Samsung India has also become the 'Olympic Partner' for the Indian delegation

to the 2008 Beijing Olympics.

 The Company will be the Official Sponsor in the category of Consumer

Electronics, IT and Telecommunications.

 Brand power

 Technology Leadership, Product design and innovative marketing

 The Company has carried out over 170 Dream Home Road Shows –
 Samsung India has set up a widespread network of Samsung Digital Plazas
all over the country.
 It has almost 8500 retail outlets all over the country.
 Research & development

 The company’s thrust on Product Innovation and R&D have given the
company a competitive edge in the marketplace
 Samsung has two Software development centres
-Samsung India Software Centre (SISC)
 -Samsung India Software operations unit (SISO) at Noida and
Bangalore
 Samsung India is also carrying out Hardware R&D at its Noida R&D
Centre.
COMPARITATIVE
ANALYSIS
 Brand Awareness & Market
Share

 Market Leader: Nokia

 LG has a pie of 6%

 Close competitor of Samsung &

Apple

Mobile Phones
 Conclusions - 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

 Brand Awareness & Market
Share

Market Leader- LG

Godrej- Second most

popular brand

Samsung & Whirlpool lag

behind

Refrigerators
 Conclusions - Refrigerators

 LG is the dominant player in the market

 Other Players have a segmented market share

 Unstructured Positioning of all other Players

 Brand Awareness & Market
Share

Market Leader- LG

Voltas- Second most

popular brand

Samsung commands the

third position

Air Conditioners
 Conclusions - 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.

Brand Awareness & Market
Share

Market Leader- Sony

LG and Samsung close

competitors

Philips has a small

market share

LCD TV
 Conclusions- LCD
Television
 Sony is the Market Leader in LCD TV segment.

 Samsung – LG, very similar user perception, directly

competing with each other. 
 Recommendation
 Similar User perception needed to be carried on, in the
Refrigerator & AC Segments.

 LG needs to upgrade itself on technologies like Noise Level

reduction, Power Consumption in the AC segment.

 Innovations to be brought into the products in the Mobile Phone

market, improving attributes like Battery Life, Camera Quality
etc.

  LG needs to bring in better strategies & technology to overtake

the closest competitor Samsung in the LCD TV market.
CONCLUSION……
Unexploited rural market, Rapid urbanization,
Increase in income level i.e. increase in purchasing
power of consumers, Easy availability of finance are
the whooping factors for both LG & Samsung to
penetrate in to Indian Hearts.
S