LG Electronic India Pvt. Ltd

8/8/2019 LG Electronic India Pvt. Ltd.

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LG Electronic India Pvt. Ltd slogan has Lifes Good.

Formed in 1997 referring consumer Electronic Industry.

Range of products offered to consumers like washing machine, Aircondition, Microwaves , TV etc.

Fastest growing company .

Concentrated on Urban Areas but later focused on Rural market.



Vision And Mission

Our special focus on the rural and semi urban segmentation hashelps us to come up with the innovation in keeping with the needs

of consumer in these areas , giving the edge over competition. Thusin one year we have been able to enter lowest price points targeted

as the low end customer.

Anil Arora, Marketing Head , LG Electronics

To be the best company in its product range

To bring a smiling face to every home across the world

Think Globally & succeeding locally



Amey Sankhe 46 (A)



Steps involved while entering into IndianMarket

Penetration

Problem faced while establishing

Taste of Success

Initiative taken by LG

Products Introduces



y Political and legal

-Budget 2000 had negative impact on industry

-Various pricing strategies by companies

-LG tapped the custom duty relaxation and importedinnovative products

y Economic

-Changes in custom duties and exchange rates



Socio-cultural

-Life style improvement

-High value products at reasonable price

-Multiple ownership

y Technological

-Advancements

-Responsiveness to deal with competition-Technology import route



y Global

-Dumping and Industrial Competition

Demographics-Largest middle class in the world

-Quality and health consciousness



RURAL M ARKE T P ENE T RATIO N

y New cheaper products to rural buyer.

y Growing Fast comparing to Urban market

y Initiative taken to open Branch Offices in Rural Areas



Rishi Dange 09 (A)



y 600,000 villages with 700 mnpeople

y >50% of total GDP from rural India

y Nearly 50% of Very rich + Well off households in rural India



y Electricity Shortage Sporadic PowerSupply

y Acute Water Shortage.

y Poor Transportation availability.

y Consumer Finance Options.

Can LG make energy saving products??

Can LG give him a washing machine

which consumes less water??

Can LG give him access to buyingproducts near by his location??



Availability

65 Remote Area Officesunder the branch officesthat are empowered todirectly link to the centralbilling system for orders.

230 service centers.

2,600 mobile authorizedservice personnel for villages having below10,000 residents.

Affordability

Reduce cost by replacing 4speakers by 2.

Sampoorna- Rs.3000.

Cineplus- RS 4900.

A cc t ilit

Pr t l li ti i ttr t t LG

LG t it Hi ir i l l it

TV . I tr t l - ri

Awar ss

Mobil V (G r G r K )

Ex ibitions

Road

ows

4 A¶s



Mangesh Vaidya 58 (A)



y Innovative Marketing Strategies.

y Launch of new technologies in consumer electronics

and home appliances.

y 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.



Product localizations.

y Product localization is a key strategy used by LG.

y LG came out with Hindi and regional language menuson its TV.

y Introduced the low-priced Cineplus and Sampoorna range forthe rural markets.

y LG was the first brand to introduce gaming in CTVs .Incontinuation of its association with cricket, LG



Rajesh Satpute 47 (A)



W ide Distribution N etwork

y LG has adopted the regional distribution model inIndia.

y All the distributors work directly with the company.This has resulted in quicker rotation of stocks, andbetter penetration into the B, C, and D class markets.

y LG has over 46 branch offices and another 110 areaoffices across the country



y LG India-trip led the number of its retail & distributor outlets inrural

areas from 2004 to 2008.

y The avg. price of its Sampoorn a range of CTVs came down toabout the price so competitive that, thereby bridging the gapbetween CTVs and other local B/W TVs.

y It also tapped local forms of entertainment like fairs and made

huge investments in infrastructure for distribution andmarketing



y Proper marketing skills and strategies are immensely important for any company to build and maintain itsstand in a widely diversified country like India where

customer satisfaction comes at a high cost.

y LG has proved its mettle by providing its customer with value for money, along with maintaining and attimes increasing its profit.

y LG is surely the perfect example for other MNCs who

want to set their foot in India



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LG Electronic India Pvt. Ltd