Lg and Samsung FINAL

8/9/2019 Lg and Samsung FINAL

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DeenaDivya bharthi

Vamsi prakashDeepak.G.S.RGowtham.M

Haneesh.U

Consumer Electronic Goods inindiawith reference to LG & samsung


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ELECTRONIC INDUSTRY..The Electronics Industry in India took off around 1965 with an

orientation towards space and defense technologies. This wasrigidly controlled and initiated by the government. This wasfollowed by developments in consumer electronics mainly withtransistor radios, Black& White TV, Calculators and other audioproducts. Color Televisions soon followed.

In 1982-a significant year in the history of television in India - thegovernment allowed thousands of color TV sets to be importedinto the country to coincide with the broadcast of Asian Games inNew Delhi.

1985 saw the advent of Computers and Telephone exchanges,which were succeeded by Digital Exchanges in 1988. The periodbetween1984 and 1990 was the golden period for electronicsduring which the industry witnessed continuous and rapid growth.


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INTRODUCTIONTO

The company was originally established in 1958 as Gold Star, producingradios, TVs, refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived.

The Gold Star brand is still perceived as a discount brand. In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of theUnited States.


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LG Electronics is playing an active role in the world market with itsassertive global business policy.

LG Electronics controls 110 local subsidiaries in the world witharound 82,000 executive and employees.


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PRODUCTS

Mobile communicationsCDMA HandsetsGSM Handsets3G HandsetsCellular Phones

Digital applianceAir ConditionersRefrigeratorsMicrowave OvensWashing MachinesVacuum CleanersHome NetCompressors for Air Conditioners and refrigerators


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Digital displaya) Plasma TVsb) LCD TVsc) Micro Display Panel TVs

d) Monitorse) PDP Modulesf) OLED Panelsg) USB Memory

h) Flat Panel Computer Monitors


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Digital mediaa) Home Theater Systemsb) DVD Recordersc) Super Multi DVD Rewritersd) CDRWe) Notebook PCs

f) Desktop PCsg) PDAsh) PDA Phonesi) MP3 Players

j) New Karaoke Systemsk) Car Infotainment


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DISTRIBUTION&MARKETINGSTRATEGY

The company has number of dealers and warehouses. They have LG exclusiveshopee.

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 thecostumers.

Day to day advertisement in leading newspaper.


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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 thedealers.

They have their sales persons at various sub dealer store and at mordenttrade 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.


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LG CRICKET

LG has differentiated its products using technology and health benefits.CTV - Golden Eye technologyAir-conditioners - Health Air SystemMicrowave Ovens -Health Wave System.


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Local and Efficient ManufacturingTo overcome high import duties,LG manufactures PC monitors andrefrigerators.

LGEIL had already commissionedcontract manufacturing at Mohali,

Kolkata and Bhopal for CTVs.This has helped LGEI to reducecosts.

LGEIL is implementing a digitalmanufacturing system (DMS) asa cost-cutting innovation.


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Product localizations

Product localization is a keystrategy used by LG.

LG came out with Hindi andregional language menus on itsTV.

Introduced the low-pricedCineplus and Sampoornarange for the rural markets.

LG was the first brand tointroduce gaming in CTVs. Incontinuation of its associationwith cricket, LG introduced thecricket game in CTVs.


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

Unlike many Indian brands which advertised seasonally i.e., (two-threemonths of the festival season-September, October and November), LGadvertised all round the year.


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R&D Potential

LG has set up research and development facilities in India at Bangalore andis in the process of setting up another at Pune. Both the units carry outR&D work for the domestic market as well as for the parent company. Italso 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 .


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TURN ON

TOMMORROW


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INTRODUCTION

Samsung is one of the worlds 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.


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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


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oon-Woo LeeGee-Sung ChoiJu-Hwa Yoon Dong-Min YoonChae-WoongLee

In-HoLee

Oh-SooPark


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KEY BUSINESS AREAS

MOBILE PHONESTV/ AUDIO/VIDEOCAMERAS & CAMCORDERS

PC/PERIPHERALS/PRINTERSHOME APPLIANCES

REFRIGERATORSAIR CONDITIONERSWASHING MACHINES


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Vision 2020

Samsung Electronics vision for the newdecade is, "Inspire the World, Create theFuture.

The Samsung PhilosophyTo devote our talent and technology tocreating superior products and services thatcontribute to a better global society.


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PRINCIPLES


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Marketing strategies

Product innovationPricingDistributionAdvertisement & sales promotion


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Sales and distribution strategies

Samsung Mobiles India is reviving its sales and distribution arrangement inIndia with 17 sales offices in smaller key markets .

. It will focus on enhancing sales channels in order to achieve better results in2009.

Samsung will focus on IT products in 2009.In this category there will be products like the notebook

bring down channel inventory,


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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.


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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.


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Research & development

The companys thrust on Product Innovation and R&D have given thecompany 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&DCentre.


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COMPARITATIVEANALYSIS


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Brand Awareness & MarketShare

Mobile Phones

Market Leader: Nokia

LG has a pie of 6%

Close competitor of Samsung &

Apple


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Conclusions - MobilePhones

Nokia is the market leader, followed by Sony Ericsson

LG is an emerging player

Direct competition with Samsung, owing to similar user perception


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Market Leader- LG

Godrej- Second mostpopular brand

Samsung & Whirlpool lagbehind

Refrigerators


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Conclusions - Refrigerators

LG is the dominant player in the market

Other Players have a segmented market share

Unstructured Positioning of all other Players


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Market Leader- LG

Voltas- Second mostpopular brand

Samsung commands thethird position

Air Conditioners


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Conclusions - AirConditioners

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.


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Market Leader- Sony

LG and Samsung closecompetitors

Philips has a smallmarket share

LCD TV


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Conclusions- LCD Television

Sony is the Market Leader in LCD TV segment.

Samsung LG, very similar user perception, directly

competing with each other.


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Recommendation

Similar User perception needed to be carried on, in theRefrigerator & 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 Phonemarket, improving attributes like Battery Life, Camera Qualityetc.

LG needs to bring in better strategies & technology to overtakethe closest competitor Samsung in the LCD TV market.


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CONCLUSION

Unexploited rural market, Rapid urbanization,Increase in income level i.e. increase in purchasing

power of consumers, Easy availability of finance arethe whooping factors for both LG & Samsung to

penetrate in to Indian Hearts.


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Documents

Lg and Samsung FINAL