Lg-electronics India Ppt New

7/31/2019 Lg-electronics India Ppt New

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Established in 1997, LG Electronics India (LGEI) is a

wholly-owned subsidiary of LG Electronics, SouthKorea.

It is one of the leading companies in consumer electronics,home appliances and computer peripherals in India.

LG is the market leader in various segments


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Low brand awareness about LG in India.

One of the last MNCs to enter India. (Samsung, Sony& Panasonic entered in 1995 & LG in 1997.)

High import duty.

Competition from local players and other multinational

companies in the consumer electronics segment

Price sensitiveness of Indian consumers.


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To make itself a known brand in the consumer electronics sector, LG hastaken innovative marketing and promotional initiatives:

Launch of new technologies in consumer electronics and homeappliances.

LG was the first brand to enter cricket in a big way, by sponsoring the1999 World Cup, and followed it up in 2003 as well.

LG brought in four captains of the Indian cricket team to endorse itsproducts. LG invested more than US$ 8million on advertising andmarketing in this sport.

LG has differentiated its products using technology and health benefits.


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Product Innovation LG believed in holding the interest of its customers by

bringing out new products regularly. In its first year ofoperations, it launched 70 models across a range ofproducts.

In 2001, it launched 45 new models across its entireproduct range and in 2002 it launched 60 new models.

LG customized product for Indian markets.

Before developing products, LG conducted marketresearch to ensure that its products met localrequirements...


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Product localizationsProduct localization is a key strategy used by

LG.

LG came out with Hindi and regionallanguage menus on its TV.

Introduced the low-priced Cineplusand Sampoorna range for the rural markets.

LG was the first brand to introduce gaming in

CTVs. In continuation of its association withcricket, LG introduced the cricket game inCTVs.


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Distribution

Soon after its entry into India, LG realized that itneeded to be innovative to capture the market.

LG expanded throughout the country to far-flungtowns and semi-urban markets.

It sent vans across the country, covering a distanceof 5000 km every month, to increase brandawareness among the trade and the customers...


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Regional channel strategy and wide distribution

network

LG has adopted the regional distribution modelin India. A

LG also follows the strategy of stock rotation,rather than dumping stocks on channel partners.

LG has over 46 branch offices and another 110area offices across the country.


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Initially, when LG entered the Indian market,its products were priced high.

Thus, its products were priced as high asJapanese products.

However, in 1998, LG launched 'Sampoorna,'

a low priced TV aimed at rural consumers...


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Of all the elements of marketing mix, LG seemedto have put more emphasis on promotion andadvertising.

In 2002, it spent around 1.3 billion on advertising.

Unlike many Indian brands which advertised

seasonally i.e.,(two-three months of the festivalseason- September, October and November), LGadvertised all round the year.


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Today LG is one of the top rated electronicscompany in India, and its products are widely

used by all sections of consumers in India.

LG Indias annual turnover was10700 cr in

2008,which is an indication of tremendousgrowth of the company, since the day itwaslaunched.


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LG has proved its mettle by providing itscustomer with value for money, along with

maintaining and at times increasing its profit.

LG is surely the perfect example for other

MNCs who want to set their foot in India

Lg-electronics India Ppt New

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