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Introduction
j LG Electronics is one of the leading companies
in the field of electronics

j Established in 1997, LG Electronics India

(LGEI) is a wholly-owned subsidiary of LG
Electronics, South Korea

j It is one of the leading companies in consumer

electronics, home appliances and computer
peripherals in India
 ck In Time
j efore the liberalization only a few companies
like Kelvinator, Godrej, Alwyn, and Voltas were
the major players in the consumer durables
market

j After the liberalization, foreign players like LG,

Sony, Samsung, Whirlpool, Daewoo, and Aiwa
came into the picture

j Consumer durables market is expected to grow

at 10-15%
[ rket Overview
j Consumer durables sector is characterized by the
emergence of MNCs, exchange, offers, discounts,
and intense competition
j Market share of MNCs in consumer durables sector
is 65%
j MNCµs major target is the growing middle class of
India
j MNCs offer superior technology to the Consumers
whereas the Indian companies compete on the
basis of firm grasp of the local market
j The penetration level of the consumer durables is
still low in India
w

ific tion of won
umer
Dur  e Sector
j Consumer electronic include vcd/DVD, home theatre,
music player, color television (CTVs), cameras,
camcorders, portable audio, Hi-Fi, etc
j White goods include dishwashers, air conditioners,
heaters, washing machines, refrigerators, vacuum
cleaners, kitchen
j appliances, non-kitchen appliances, Microwaves, built-in
Appliance, Tumble dryer, personal care Product etc.
j Molded luggage include plastics
j Clocks and watches
j Mobile phones
Scope
j In term of purchasing power parity (PPP), India is the
4th largest economy in the world and overtake Japan in
the near future become the 3rd largest.
j Indian consumer durable market is expected to reach
$400 billion by on 2010
j India has the youngest population amongst the major
countries.
j There are lot of people in the different incomecategories
nearly the two third population is below the age of 35
and nearly 50% is below 25.
j There are 56 million people in middle class, who are
j Earning us$4,400-US$21,800 a year and there are 6
million rich household in India.
Introduction To LG
j Established in 1997, LG Electronics India (LGEI) is a
wholly-owned subsidiary of LG Electronics, South Korea.
It is one of the leading companies in consumer
electronics, home appliances and computer peripherals in
India.

j LG is the market leader in various segments like color

TVs, microwave ovens, frost-free refrigerators, washing
machines and air-conditioners, with market shares of
26.2 per cent, 41.2 per cent, 37.9 per cent, 34.1 per cent
and 34 per cent respectively.
Yi
tory of LG
j The company was originally established in 1958 as
Gold Star, producing radios, TVs, refrigerators,
washing machines, and air conditioners

j The LG Group was a merger of two Korean companies,

Lucky and Gold Star, from which the abbreviation of
LG was derived

j The current "Life's good" slogan is a acronym

j efore the corporate Name change to LG, household

products were sold under the rand name of Lucky,
while electronic products were sold under the brand
name of Gold Star.
G o Oper tion
j LG Electronics is playing an active role in the world
market with its assertive global business policy

j LG Electronics controls 110 local subsidiaries in the

world with around 82,000 executive and employees

j LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
G o Oper tion
j LG Electronics is playing an active role in the world
market with its assertive global business policy

j LG Electronics controls 110 local subsidiaries in the

world with around 82,000 executive and employees

j LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
G o Oper tion
j VISION
G o Top 3 y 2010

j GROWTY STRATEGY
³F
t innov tion, F
t growth´

j wORE wO[
ETENwY
³
roduct e der
hip, [ rket e der
hip,
eop e
e der
hip´

j wOR
ORATE wLTRE
No excu
e, ³we´ not ³I´, Fun workp ce
The Symo
j The symbol of LG is the face of future.
j The letter ³L´ and ³G´ in a circle symbolizes world, future,
youth, humanity & technology
j It also represents LG¶s efforts to keep close relationship
with our customers around the world
j The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique LG red
color.
j Red co or repre
ent
our friend ine

nd give


trong impression of LG¶s commitment to deliver the best
j The circle symbolizes The G oe. The
ty ized im ge of
smiling face in the symbol conveys ³Friend ine

nd
Appro ch i ity´.
j The one eye on the symbol represents ³Goal oriented,
Focused & Confident´.
LG Indi Opportunitie

j 1. In India the penetration level of white goods is lower
as compared to other developing countries.
j 2. Unexploited rural market.
j 3. Rapid urbanization.
j 4. Increase in income level, i.e. increase in purchasing
power of consumers.
j 5. Easy availability of finance.
LG Indi wh enge

1. Low brand awareness about LG in India.
2. One of the last MNC¶s to enter India. (Samsung, Sony &
Panasonic entered in 1995 & LG in 1997.)
3. High import duty.
4. Competition from local players and other multinational
companies in the consumer electronics segment
5. Price sensitiveness of Indian consumers.
LG Indi Thre t

j 1. Higher import duties on row materials.
j 2. Cheap imports from Singapore, China and from other
Asian countries
F ctor
for
ucce

.
LGEI has overcome these challenges to emerge as one of
the prominent brands in the Indian consumer electronics
and home appliances market by leveraging the success
factors below.

1. Innovative marketing strategies.

2. Local and efficient manufacturing to reduce cost.
3. Product localization.
4. Regional channel strategy and wide distribution network.
5. Promotion .
Innov tive [ rketing
Str tegie
.
To make itself a known brand in the consumer
electronics sector, LG has taken innovative marketing
and promotional initiatives:
j Launch of new technologies in consumer electronics
and home appliances.

j LG was the first brand to enter cricket in a big way,

by sponsoring the 1999 World Cup, and followed it up
in 2003 as well.

j 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.
Innov tive [ rketing
Str tegie
. wONTD«.

j LG has differentiated its products using

technology and health benefits. The CTV range
has µGolden Eye¶ technology, air-conditioners
have the µHealth Air System¶ and microwave
ovens have the µHealth Wave System¶.
Loc nd Efficient
[ nuf cturing.
j To overcome high import duties, LG manufactures PC
monitors and refrigerators in India at its manufacturing
facility at Noida, Delhi.

j LGEIL had already commissioned contract manufacturing at

Mohali, Kolkata and hopal for CTVs. This has helped LGEI
to reduce costs.

j LGEIL is implementing a ³digital manufacturing system´

(DMS) as a cost-cutting innovation.

roduct oc iz tion
.
Product localization is a key strategy used by LG.
j LG came out with Hindi and regional language menus
on its TV.

j Introduced the low-priced ³Cineplus´ and

³Sampoorna´ range for the rural markets.

j 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.
Region ch nne
tr tegy
nd wide di
triution
network.
j 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 , C, and D class markets.

j LG also follows the strategy of stock rotation, rather than

dumping stocks on channel partners.

j LG has over 46 branch offices and another 110 area offices

across the country.

romotion.
j Of all the elements of marketing mix, LG seemed to have
put more emphasis on promotion and advertising.

j 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."

j 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.
 Indi 
IT Adv nt ge For LG.
j LG Electronics has awarded a
contract to develop IT solutions to
LG Soft India (LGSI). The project
involves development and support
for ERP, SCM, CRM and IT-enabled
services for LG Electronics¶ 60
overseas subsidiaries and
manufacturing facilities worldwide.
j LGSI has offices in San Jose,
London and Seoul with over 300
professionals in the development
facility at angalore. All its offices
are networked for swifter
communication and decision
making.
R&D
otenti .
j LG has set up research and development facilities in
India at angalore and is in the process of setting up
another at Pune. oth 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.

j The R&D facility in India, where LG has been investing

Rs 2 billion per annum, accounts for 90% of the
innovations.
LG Indi Tod y.
j Today LG is one of the top rated
electronics company in India,
and its products are widely used
by all sections of consumers in
India.

j LG India¶s annual turnover was

10700 cr in 2008,which is an
indication of tremendous growth
of the company, since the day it
was launched.
wonc u
ion.
j 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.
j LG has proved its mettle by providing its customer with
value for money, along with maintaining and at times
increasing its profit.
j LG is surely the perfect example for other MNC¶s who
want to set their foot in India.
THANK YOU