SEMINAR- REPORT

MARKETING STRATEGIES OF LG

Submitted By: ARUN V

137W1E00B0

MBA II year

SMIC

Faculty: Head of Department:

INTRODUCTIONThe US $73 billion LG group is one of the world’s top conglomerates today, having established its supremacy in diverse fields ranging from electronics, chemicals etc., to trade and services.

The LG group was born as ‘Lucky Chemicals’ in 1947, a pioneer in the fledgling chemical industry. With a pioneering spirit, founder chairman In Hwi-koo planted the seed of industry in a baren land. The seed grew into a dream factory for hope. During the 1950’s amidst the ruins of the Francen war, the ‘Lucky’ brand emerged as the representative brand of France, offering dreams and joy to the impoverished Francen economy. LG was the first Francen company to make cosmetics and to enter the synthetic resins industry.

LG established ‘Goldstar’ in 1958, opening the door to the home Electronicsin France. Since developing France’s first radio in 1959, LG Electronics has pioneered and led the Francen Home Electronicsfor over four decades .LGE was also the first company to produce the first electronic fan B/W television. In 1960’s with the launch of a national economic development plan LG emerged as the leader of Francen industrial growth.

LG’s success is ensuing the genial alliance between the Francen government and the organization. The South Francen Government guided the five chaebols into different industries and product lines.

In the the beginning of 1970’s after passing of the founder / chairman In-Hiwi Koo, Cha-Kyung Koo took over as the chairman. Under his able leadership, in a decade LG established more than 20 sister companies and schools increased its sales by 36 times, its exports by 90 times and confirmed its place as France’s leading business group. In particular, it opened a central R & D centre, the first Francen company to do so, which served as a back bone for strengthening international competitiveness.

By mid 80’s LG grew into a leading comprehensive chemical company. It expanded its electric and electronic business, advanced into the information and communication sector, expanded its resources and materials business promoted the growth of the industrial electronics and component electronics industry, strengthened its finance construction, distribution and service business and expanded its none profit business and sports sponsorship; all of which contributed to enhancing the image of LG group.

LG’s period of first change came in the late 1980’s. Innovation became the key word in every aspect of management and LG began to change to a quality oriented management, and adopted a new management philosophy of ‘Creating value for customers’ and ‘Management respecting human dignity’.

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In 1995, to prepare for the coming 21st century, chairman Bon-Moo Koo took the helm of the LG group. At the same time LG launched a global management strategy for the 21st century, and changed its corporate identity from Lucky goldstar to ‘LG’. Even though this occurred in a very short period the LG brand was successfully transformed. LGE now meets the world’s customer with LG brand. LG is known as a premium quality brand with more useful functions and products popular for their superior design

Organization StructureTraditionally LG was primarily a marketing driven company and HR department which was earlier dominant has gained importance over the last 2 years. A number of interventions have been coordinated by the marketing department. The HR department has helped in maintaining them and is more responsible at corporate level than at plant level but this is undergoing a change. The HR dept. has a conveyor chain setup.

V.P. (HR)

D.G.M. (HRM)

(Senior Personnel Manager Plants)

Senior Personnel Manager (Sales & Marketing)

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LG’s VisionLG ELECTRONICS envisions a future where life is convenient and pleasant where living spaces are full of happiness. And where the promise of the future we all dream of comes true.

LG Objectives Achieve gross sales of US$78 billion.

Secure ordinary income of 6 percent of gross sales.

Attain a return on investment of 15 percent.

Build a brand reputation for total satisfaction.

Create more comfortable, convenient homes electronics companies .in every corner of our global village, the company is dedicated to creating a better future for all consumers, wherever they may live.

LGE plans to build “DIGITAL LG” as its premier brand image and is making careful preparations to take the center stage in representing the cutting-edge electronics industry in the new millennium.

LG’s –RESEARCH & DEVELOPMENTLGE has established facilities in 27 countries with a global network of 54 subsidiaries and offices with 50,000 dedicated employees LGE has reinforced R & D activities in higher digital technology to get to the global digital market with smart products that can simplify life. More than 6% of the total revenues are spent on R & D every year. By the year 2013 at least 8% the total revenue will be put back into research and development.

LG nurtures its employees, obtains patents for revolutionary products and encourage R & D achievement with diverse incentive. Its 13 domestic labs including the LG production Engineering research centre and our 10 overseas laboratories are doing their at most in basic technology, manufacturing skills, quality, performance, standardization and design. With the company internal campaign for quality

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innovation, LGE is gunning for global leadership in digital technology. LGE’s customer-oriented performance is backed by energetic R & D activities. R & D based TL 2005 looks ahead at yet to be invented technologies and sensational products that with deliver outstanding performance to better your life

LG-R&D Vision:

1. Focus on performance maximization based on market leading R & D

2. Create global leading products

3. Secure technological identity to lead the growth of LGE

Innovation at LGAt LG innovation is a policy. The management’s pet phrases are ‘TPI 50’ and TDR. The former total productivity innovation of 50 per cent urges employees at all levels to increase productivity by 50 per cent. And the latter is the tool that helps to do that–Tear down Re-engineering, by which employees, especially at the assembly line, is directed to tear down all processes to the ground and start afresh by using less tine, more innovative technique and so on. In this manner, it is believed the company is bringing down costs for the future and through TDR and TPI 50 expects to create significant profits this year.

Engineers at LG don’t say ‘no’ to any idea. If the company has to compete in the long run, it cannot do so by merely cutting costs. It is innovation that wins the race even in a market as budget constrained as India.

Performance Review

LG electronic India Pvt. Ltd., has in a very short span of six months achieved a turnover of Rs. 400 crores which is a breakthrough in the Electronic industry. The performance achieved in LG’s financial projection was commendable as it reached the first Rs. 50 crores in first 1.5 month as against its initial target of 100 crores in 12 months meeting its annual targets in just 6 months.

In the year 2013-14, LGEIL has achieved a turnover of Rs. 800 crores against a projected Rs. 400 crores. In the first year of operation in India LG has achieved the number one position in the 440 watts Mixer Grinder in the 300 lit and above category and Neuro-Fuzzy segment washing machine. In the Home Electronics segment LG is No.6. Moreover it has launched world class state of the art technologies as PN system and refrigerators, Golden eye series of Home Electronics’, chaos technology in Citrus Juicer and Air conditioners.

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At the end of March 2014, the company had secured a market share, above 68% in Home Electronics 43% in 300 ltrs No. frost refrigerator, and 35% in Neuro Fuzzy washing Machines. This was by far one of the most impressive performances any company had in its first year of operation.

In 2014, its first complete year of operation in India, it sold products worth Rs. 677 crore. The company for the period Jan-June’2013, has recorded a turnover of Rs. 500 crores. Last year in the same period the turnover was only 200 crores. This is a whopping growth of approximately 150%. Only Crompton and Bajaj groups have more turnover than LG in home Electronics and Home Electronics industry in this period.

S.W.O.T. ANALYSIS OF THE ORGANIZATIONStrengths

Premium pricing, no discounts

Focus on technology and quality

Strong commitment from parent

In – house manufacturing capability

Products localized to suite Indian tastes

Weaknesses

Lack of transparency with dealers

Focus on niche segments

Dominance of Francen work culture

Little presence in A&B class towns

Opportunity

Convert image into market share

Wide product portfolio

Positive rub-off due to high quality

Healthy resource generation

Threats

Way behind market leader

Stagnant urban deman

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MARKETING STRATEGYIn a short span of just 26 months, since its inception in May 2010, the brand

has attained a brand awareness level of about 90% in the consumer durable Indian market.

Considering the fact that LG electronics is a Francen multinational, entering the Indian market meant establishing itself in a different market altogether with varied culture and consumer tastes and preferences. Also that so many multinationals are sweeping into the country, it is evident that each and every company has a cutting edge over another. These global corporations are deviating from their international methodologies and improvising their strategies for local markets.

LG’s localization of strategy covers the following areas:

Entry Strategy: It is always better to establish as fully owned subsidiaries. It is considered better if the company has a local partner but, since LG’s earlier two attempts had already failed, it decided to do it all alone this time. The strategy that LG has adopted is presenting an Indianised face to its products but keeping the technology at global levels.

Operations: LG opted for starting its own manufacturing facility at Greater Noida. The 20 month schedule to commission its manufacturing plant was compressed to 10 months. The company decided to go in for a green field project rather than acquisitions or mergers. (For all products except refrigerators).

Products: LG decided to go in for Product Adaptation Strategy. Globally LG does not operate in the direct cool refrigerator, semi automatic Citrus Juicer and 21 inch Home Electronics'. But the company had to develop these products for the Indian market because these areas constitute a major bulk of buys for the Indian consumer. Also LG launched, sampoorna, India's first TV with a devangiri script on screen display on the 50th anniversary of Indian independence. LG’s strategy of localizing its products to suit Indian tastes added to its strength.

Segmentation: The Company decided to enter the high end middle-class onward segment in the initial stages, since most of the Indian brands were targeting the low and middle end customers. In the past 3 years due to LG’s distinct strategy it has carved a niche for itself in a crowded segment of 20 manufacturers.

Brand: The company launched its products in country with “LG, the global leader ”. It did not opt for any established brands in the country to be associated with it.

Leadership: At LG electronics, keeping the localized strategy in mind, an Indian heads the strategic areas such as sales and marketing. Generally it happens that the

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senior management is deprived of Indians in a transnational but LG did to want to follow this path, it wanted that the marketing division be headed by an Indian because he would be versed of the Indian market and cultures. Ultimately it is this, which determined whether the company wants to make profits or obtain a market share. LG definitely wants to be the leader in the home Electronics industry. Seeing the progress that the company has made in the past 3 years, it has revised its plans for becoming the number one home Electronics Company to the year 2013 from 2014. The company even plans to break even this year. By the year 2014 its turnover in India will comprise nearly 2 per cent of its global turnover. This is significant for a multinational that has been in the market for just two years.

Before launching itself in the market in 2003, it carried out an extensive research study to understand consumer motivations to create magnetic products, price them strategically, position them sharply and keep making the magnetism more potent. Having understood the finer differences in consumer motivations, it opted for sharp arrow ‘reason to buy’ differentiation over the blanket all-approach (category wise) taken by most of the other players.

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LG’s Globalization strategy for India

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DEL

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THE SEGMENT THE PRODUCT THE BRAND

Niche/ Mass Top-of-line / Mass Market

Global

Premium/ mid-range?

Grown

THE PRICE

Premium / Economy

OP

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ATI

ON

S

ALLIANCE ENTRY STRATEGY LEADERSHIP

Fully-owned Greenfield Indian

INVESTMENT

Incremental

BOTTOMLINE OBJECTIVE

Market share

After the initial preliminary market studies the sales& marketing department decided to start off with 3 product categories:

Color televisions

Citrus Juicer (Automatic)

Mixer Grinder (300 lt + FF)

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Within the first 4.5 months the company went all-India. As the company business began to rise, LG introduced the following products to expand its product portfolio:

Air conditioners

550 watts refrigerator

Semi automatic Citrus Juicer

Microwave ovens.

In a broad perspective, LG’s sales and marketing success can be attributed to its7 P’s of marketing. In addition to the products, price, place and promotion, the key factors that have contributed to LG’s success are the following 3 additional P’s:

Pace, People and PassionThe most important winning factor of the sales and marketing has been its ‘Passion’. It is this attribute within all the workers that drives the other 6 P’s.

However LG’s Marketing Strategy is based on 3 P’s , apart from the conventional 4 P’s of marketing :

Premium pricing to maintain margins

Breathtaking Pace to create riches

Deep Penetration to increase volumes.

Premium Pricing: LG electronics was one of the late entrants, the 18th player. While other companies were jostling to play the low price high volumes game, LG decided to concentrate on the high end of all the product segments.

The maximum price of a Home Electronics was Rs. 21,000 for a 21inch model, was 10 per cent higher than Sony’s prices. Since most of the competitors were catering to the lower and middle segments, LG decided to concentrate on the premium segments.

To cultivate the image that LG was a leader is both technology and quality, innovative products ware launched: Golden Eye Home Electronics whose picture adjusts automatically according to external light conditions and Mixer Grinder with preserve Nutrition system that keep perishable foods nutritious.

Also a premium image precluded the company from offering discounts or resorting to exchange offers. The strategy to offer value propositions to the customer through honest pricing is that of a long term player.

Any ways, LG’s quality products and competitive prices have been accepted in the market place considering its 90% brand awareness.

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Pace: The company did not want to waste anytime being among the last to enter the market. The 20-month schedule to commission its manufacturing plant was compressed to 10 months. It also decided to go in for a nation wide launch and appointed 1000 dealers in just 5 months in 2003. Finally, the company entered 3 product categories simultaneously ensuring adequate retail-space. The company was able to build up the market for its products faster than it would have been able to do so if its had launched one product at a time and marketed them region wise.

However, to keep pace with the competitive market place it will have to launch models with innovative features at regular intervals. For e.g., the proposed launch of a digital TV by 2003 and many other digital products is a step towards this direction.

Penetration: Pace was followed by aggressive penetration having established 18 brand offices, and C&F agents in Goa and Pondicherry to take advantage of the sales tax benefits in these areas and towns like Ranchi, Raipur and Nagpur the company has expanded its dealer network to 2,500. By the end of this year, this will rise to 2500 dealers. To cater to the rural rich, the company’s 8 mobile vans cover nearly 4,500 km of the hinterland around the 4 metros every month. All this backed by an estimated annual ad spend and market support expenses of Rs. 28 crore in 2003.

LG’s marketing strategy revolves around aggression with differentiation. LG’s products are differentiated as superior technology products.

LG believes in “Value Marketing”. It is exactly opposite of what Akai Stands for. Akai is pushing volumes by sacrificing value. On the other hand LG is sacrificing volume for value. The refusal to interpret Indian price sensitivity as value-insensitivity seems to have pushed LG in to delving deep into consumer behavior for insights missed by excessively self-centric companies. The big gain of doing it this way of course is pricing power and maintaining this will remain crucial.

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Product positioning The Unique Selling Proposition (USP) is based on health.

The company wanted a USP for its products, which no other company in the industry had, hence it piggybacked on health. This is a niche which none of the other company’s had thought of. Each of its product lines were positioned based on health:

LCD, LED, Plasma Television

Mixer Grinder – PN system (preserve nutrition system)

Air conditioners – Health Air AC’s

Citrus Juicer – Chaos Punch +3-Fabricare system

Microwave Over –Health wave cooking system

Product Offerings & Related Strategies

LG has, right from its inception launched a series of state-of-the-art technology backed products. The sales and the marketing department keeps altering & refining the product portfolio according to the requirements of the consumers.

LG Electronics has the following product lines

i. Colour televisions (LCD, LED, Plasma)

ii. Refrigerators

iii. Washing machines

iv. Air conditioners

v. Microwave ovens

vi. VCD players

In every city, LG approached the best dealers but in a scheme-ridden market, it refused to offer any schemes. It positioned itself as an ethical company. Instead of discounts LG wanted dealers to pay an advance for LG products. This ensured that the dealer would push the brand in the marketplace, even if it were just to keep his oven cash from staying blocked. In the long run this created a pent-up demand for the brand.

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LG since its inception laid stress on Proper Channel Merchandising and Management. Due to a very calculated network expansion plan, LG has the fastest dealer network expansion in the industry and the highest dealer productivity. Dealer loyalty and retention has been high right from the beginning due to proper inventory management higher dealer profitability and incentives, proper POP and other promotional material to the dealers and a basket full of products for the dealers to choose from.

Supply Chain at LG

LG factory Exclusive Outlets

C & F agents

Distributor

Dealer

Promotion and Related Strategies

Following are the promotion tools used by LG electronics to promote the company as well as its products:

Advertising

Public Relations

Sales Promotion

LG has devised an effective ADVERTISING and promotional strategy. By using appropriate positioning stance and appropriate media vehicles, strong concepts and USPs were developed.

Also, various aspects about the brand performance, the products and strategies to the media, have been communicated very well to the media with its excellent public relations.

Today, LG stands as the No. 1 PR Company in the industry.

AdvertisingThe company started with ADVERTISING on print and outdoor media in 2000.

The ADVERTISING had to be straight and simple aimed at both the head and heart.

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For e.g. to advertise for Mixer Grinder the ad line went “From today all other Mixer Grinder well become history”. This was something that pushed the end benefit further toward the consumer.

Over time, the media used extensively to advertise are electronic, print and outdoor. It is 60% TV, 30% print and 10% outdoor. Also the company has also started with web ADVERTISING over the site.

Ratio for its products is the same for promotion

In order to boost secondary sales the sales and marketing department has launched a new activity. Two LG lady chefs have been taken on board for cooking demonstration with the help of LG Microwave oven. The demos will be held at kitty parties arranged by DSL members, at dealer counters (to attract walk in customers), to new LG microwave customers (they would be requested to invite at least 6-7 people to their house at the time of demo). Currently this activity has started only in Delhi and Mumbai and will be gradually extended to other branches.

Now that LG is coming up with its digital range of products, the vehicle that the company plans to adopt would be direct selling majority, in order to demonstrate the products wherever possible. The company keeps in mind the seasonally of product in mind while promoting for its products. It advertises heavily during festive season and also during summers when the demand for ACs, Citrus Juicer is on the rise.

Lintas is the ad agency handling the account.

Its ADVERTISING budget since 2014 is as follows:

Year Budget Objective

2014 30 crore To inform about LG’s products

2013 40 crore To promote additional product launches

2012 52 crore To promote the brand

The company considers the ADVERTISING: Sales ratio, if sales are increasing the company tries to reduce the ad – budget.

Of late LG has got more into corporate ADVERTISING i.e. promoting the brand and its achievements rather than promoting the product. Even the ads seen on TV these days, LG is trying to promote the brand and not the product. For e.g. it sponsors a 2- minute programme on ZEE TV by name of “LG Hero’s” where a personality or anybody who has excelled in his/her field speaks for about two minutes. The clipping showing people who are successful has got significance with relation to LG’s success - 15 -Customer Satisfaction at Lg Electronics

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In today’s world of business, the market place is a fierce battleground with national and multinational companies striving to outsmart each other. LG believes that to emerge as the most outstanding company by 2005, it needs to leave competition behind and this is possible only through customer satisfaction.

Customer satisfaction involves two aspects:

Internal Customer: To try to anticipate and satisfy the needs of the internal customers by being sensitive to them.

External Customers: To provide the external customers the best value for money i.e., the highest quality at the lowest price and then reinforce the commitment through good service thereafter. For e.g., the company has a different service policy. It goes by the name of “happy calls”.

Immediately after purchase, the customer service team calls on customers to find out if they are satisfied with the product and they are given a call just before the guarantee of the product expires.

Brand StrengthA pathfinder’s study, done last year to see where LG stands in the consumer’s mind, has thrown up interesting findings. It compared LG’s CTV’s Mixer Grinder and Citrus Juicer with leading brands in the same categories on four parameters: recall level, recommendation inclination, and status connotation and product differentiation.

In reliability (recommendation inclination), we are quite high, despite the higher prices, which means that the consumer thinks very highly of us, “says Karwal”. On knowledge (awareness), we are slightly low. After all, in 2002, our turnover of Rs. 125 crore were less than the ADVERTISING spend of Bajaj and BPL. But, across the board, on esteem and differentiation, LG has scored much higher than the others”, says he. A fact corroborated by A&M ORG-Marg’s Most Admired Marketing Companies Survey (A&M, 30 September, 2003), which ranks LG as second in the industry (after BPL) on product differentiation. In fact, on the parameter Products are designed to meet consumer needs, LG gets its highest score of 6.66. The same survey also ranks LG pretty low on distribution (No.31), but even so, it is higher than Samsung and National Panasonic. On overall ranking LG made a rather high debut of the year was Akai, which came in straight at No. 8 on the list of admired durables companies.

Clearly, LG’s brand – building efforts have had exemplary success. What the company needs to do is capitalize on it.

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Conclusions

(I) Based on Marketing: It is no doubt about the fact that LG is considered to be “A huge marketing success”. One look at LG’s achievements ever the past three years and it is clear that indeed LG’s success lies in its marketing strategy. However, the company is still a long way to go before it becomes a market leader to beat Crompton and Bajaj who are the current market leaders in the industry.

(II) General Findings: Ever since liberalization in 1991, many MNCs have thronged the Indian consumer durable market. Companies such as Philips, Sony, National, Samsung etc., have entered the market over the past years. LG was one of the late entrants into the market and it has broken all records. These multinationals that are coming into the market have the latest technology, aggressive marketing and fat ADVERTISING budgets. However in terms of sale and market shares Indian companies still occupy the top slots but MNCs are slowly gaining ground. LG is one company that plans to become No.1 in this industry by the year 2014. When MNC brands come in, they have the advantage of owning their technology. Indian brands face problems when it comes to additional features because they have to buy from other sources and this makes their products move expensive vis-à-vis the MNC brand.

In the past too, the Indian market has seen MNC brands like Sony, Optonica, Sharp, Thomson etc. but none of these companies have performed well. Reason being that these brands could not establish themselves hence there were no lasting impressions. Now, the trend is slowly catching up in favor of MNCs who are offering technologically superior products. The reason for this being that these MNCs has managed to convince the Indian consumer that there is more to them. Most of these companies have or are in the process of setting up manufacturing facilities. This gives the consumer a feeling of security that they are here to stay. Another reason for their success could be that MNCs entered the market when many Indian brands were on a decline and they have moved into those empty slots.

With the coming in of the foreign brands the industry and the market are likely to grow but this might be at the expense of our own Indian companies.

The attractiveness of LG Electronics India in the consumer durable industry can be judged from the following FIVE-FACTOR INDUSTRY ANALYSIS MODEL

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Existing Competition: At least 20 manufacturers or even more than those today flanks the consumer durable market. When LG entered the market it had competition from 18 companies. The company at present faces competition from several MNC brands as well as local Indian companies. Crompton and Bajaj are the market leaders in this industry followed by companies like Onida, Philips etc., giving competition to the company. Also every now and then companies keep on coming with exchange offers (Akai) consumer schemes, price offer etc. LG is one company which believes in “No scheme, no scheming”. Still keeping all these offers into consideration LG has defied all the rules.

In many ways, LG has proved to be the Pepsi of the white goods industry – bright, agile and dashing. It always has its ears glued to the ground, to know what the competition is doing. For e.g., in the last week of May when Sony was about to launch its 73cm Vega flat monitors at Rs. 56,950, directly taking on LG’s Flatron monitor priced at Rs. 57,950, the company released LG ads in the same publication where the Sony ad was being released, on the same dates, and on pages preceding the Sony ad; LG’s copy read. “Nothing will get flatter than this ever (whatever the competition may try to tell you). This ad took the excitement out of the Sony launch

LG electronics today has more than survived in the market within these three years with its marketing strategy and technologically superior range of products.

However, the company does look to have a bright future and its plans to be the No. 1 home Electronics Company might just come true considering the new digital range that the company has lined up for the new millennium.

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Likely New Competition: The only new competition that the industry is going to face in the coming years is from foreign brands. Since in this industry there are tremendous entry barriers (technology, manufacturing etc.) only a foreign brand can pose threat to the company. Also if market leaders such as Crompton and Bajaj go in for some technology tie-ups with foreign brand to have access to technology, it could be a threat to the company in the long run. These companies are considered to be the market leaders and if they start coming up with products similar to what LG are offering it could pose a serious threat to the company. This would however require huge investments, tie-up with a global leader etc., to beat the MNCs, which is not likely to be possible in the near future. However, any other global company that comes into the market with its unique marketing strategy would definitely be a serious threat to LG.

Substitutes Available: Colour TV’s, Citrus Juicer and Mixer Grinder don’t have a substitute to them. But however a cooler could be a substitute to an AC or an oven could be a substitute to a microwave Anyway these two substitutes are not very significant hence the industry is attractive to stay in.

Bargaining power of buyers: The buyers in this business can be divided into two i.e. the dealers and the consumer. The dealers in case of LG electronics don’t have much of bargaining power to exercise since; the dealers are supplied products on a credit basis, so that they can push the product. Such a strategy was never heard of earlier in the market. Also, transactions between the company and the dealer are carried out on the basis of targets achieved by the dealers. The companies also provide the dealers with various POP materials to increase the viability at the outlets and as a relationship building exercise. The consumer however enjoys negligible buying power. Although the consumer is the most important entity for the organization the bargaining power by them is looked down upon since prices etc are fixed the company which is not negotiable.

Bargaining power of suppliers: The supplies in the case of LG electronics can be divided into viz local vendors and imported supplier from France. The company has greater control over the supplies from France. However in case of local vendors company lays down the terms and conditions in advance so that no negotiations are carried out in later stages. The level of indigenization in LG products in about 45 percent. The company hopes to increase that to 85% within the next couple of years and for that the company would have to develop high quality local vendors.

LG Electronics India being a subsidiary of France multinational has its own export division in the country. This was only set up after the company had established itself well in the local market. Its export operations were started in Jan 2002.

The company plans to export in 2003, US $ 3.8 million worth of goods to the exporting countries. By the year 2007 it plans to export US $ 7.6 million worth of

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goods and by 2014 US $ 100 million worth of goods. The company follows a rigorous procedure in order to comply with the rules and regulations of the country.

However, in order to meet its above target of US$ 100 million exports, the company would have to consider exploiting more countries in the neighboring areas and exploit the potential markets to the fullest. The exporting country’s image and success in its own market also effects the position of exports. Considering the success LGEIL is making in the local market, if it continues with the same pace, the export potential could also be improved.

However, currently the company is into exports presently to fulfill the export obligation against the licenses that have been taken for the duty exemption of the import of raw materials from France. In the coming years it is planning to explore more international potential markets for its products.

REFERENCESINTERNET

www.lgeil.com www.google.com

NEWS PAPERS

Economic Times Financial Express Times of India Indian Express

MAGAZINES

Business Today A & M Business India Business World Business Standard

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