VS

Presented ByRishi Raj Navneet Bansal Gaurav jeet Singh Manish Yadav Aaryan Krishna Nikhil Chandna Kunal Chaudhary

The company was originally established in 1958 as Gold star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The L.G group was a merger of two Korean companies Lucky and Gold star.
Is the second largest producer of television and third largest producer of mobile phones.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Cr. Eco-friendly refrigerators and assembly line for its PC monitor at its greater Noida mfg. unit, in 2001.
In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra.

Demographic - Income - Occupation Geographic - Tier 1 cities - Tier 2 cities Psychographic -Life style -Personality Behavioral -Value -Benefit

LG targeted its market on the basis of the product that they are offering to the consumer. They are targeting those costumer who are more concern of life style product.

Their product is more of upper mid class and premium segment, so their target audience are those consumers, who want quality product as the best price.

They have LCD and Plasma television and the TV DIOS refrigerator for the premium segment. They are also targeting those consumer who are concern of safety and health issues. LG is now going to shift over to middle class segment and want to mass market their product.

With the tagline Lifes Good, LG positioning is to differentiate their product on the basis of technology which appealed to the consumer on the basis of health benefits. With the tagline Lifes Good its corporate philosophy to make peoples' lives better, convenient and healthier .

Their positioning strategy are technologically intelligent and futuristic.

As they are in upper and premium segment, so they are featuring that their brand is young, vibrant and premium. LG has differentiated its product using technology and health benefits. The CTV range has Golden Eye Technology air-conditioners have the Health Air System and Microwave ovens have the Health Wave System.

Strength - Market leader in home appliances segment - Manufacturing unit in tax incentives areas. - Wide range of product categories to tap the consumer of middle class, upper middle class and high class. - LG having the widest distribution network in the industry (47 branches,175 area offices and over 10,000 trade partners). - Shifting to the rural market. Weakness - Consumer compare LG products only with Samsung and not with any other brand.

Opportunity - Shifting to rural market - Control over the white goods market, as we know the highest market share in home appliance market.

Threat -The closet competitor of LG ,Samsung is also from South Korea and consumers LG product with Samsung products - Price war with its closest competitors, Samsung - Competitors from Indian brands and from new entrants

1.

Low brand awareness about LG in India. One of the last MNCs to enter India. High import duty. Competition from local players and other multinational companies in the consumer electronics segment

2.

3.

4.

5.

Price sensitiveness of Indian consumers.

Innovative marketing strategies. Launch New tech. Cricket world cup sponsorship. Captain of India campaign.

Local and efficient manufacturing to reduce cost. Commissioned contract MFG. at Mohali, Kolkata and Bhopal for CTVs. Digital manufacturing system.

Product localization. Hindi and regional language menus. Low-priced Cineplus and Sampoorna . First brand to introduce gaming in CTVs.

Regional channel strategy and wide distribution network. Direct connection with distributors. Stock rotation. 46 branch offices and 110 area offices across the country.

Promotion .- More emphasis on promotion

Focused Company with global leadership Positions in key Markets. Nations well known and well loved brand.

Easy to use, trendy and innovative internationally acclaimed products.

Operations for over 75 yrs with over 4500 employees. Products find use in virtually every aspect of an individuals daily life 24X7

Market Segmentation Division of the total market into smaller, relatively homogeneous groups No single marketing mix can satisfy everyone. Therefore, separate marketing mixes should be used for different market segments.

Geographic
TEIR II AND III UNTAPPED MARKET, RURAL MARKET, LOCAL CITIES. EMERGING INTO 8 DIFF, MARKETS

Demographic
MEN, CHILD CARE AND WOMEN WITH LOW COST PRODUCTS HOME LIVING, HEALTHY LIVING RANGE

Psychographic
INDIAN CLASS PRODUCTS, LIFESTYLE AND PERSONALTY CATERING TO INDIA

Behavioral
FESTIVE SEASON DISCOUNTS. ADDITIONAL SERVICE AND WIN FREE GIFTS SCHEME

Segment Size and Growth

Analyzing the growth potential and expansion. E.g. DVD Market,

Health Care, small domestic appliances.

Segment Structural Attractiveness

Consider effects of: Competitors, Availability of Substitute Products

and, the Power of Buyers & Suppliers. E.g. innovation, pricing, different segmentation to untapped segment, range and availability.

Company Objectives and Resources

Company skills to cater all the market segments Innovation could be competitive advantage Technology with cost could be an advantage

Consumer opinion about a particular product E.g. educating the consumers and in store promotions Untapped personal grooming market with innovation Revising existing products and understanding the modern day needs. positioning could also be related with packaging, distribution, features. Philips added new features Revised the distribution channel to enter locally E.g. juicer with no chopping needed.

Promotions

With Philips Intelligent Hair Styling products

Philips steam iron's non-stick coating on the soleplate ensures that it glides smoothly while spreading steam evenly, so that even the most crumpled clothes are wrinkle-free. Now, ironing will be effortless and joyful.

Strengths : Presence of established distribution networks in both urban and rural areas. Presence of Philips as a well-known brand. In recent years, organized sector has increased its share in the market vis a vis the unorganized sector. Labor costs in India were less and would defray the cost of producing high-end. Weaknesses : Demand is seasonal and is high during festive season. Demand is dependent on good monsoons. Poor government spending on infrastructure. Low purchasing power of consumers.

Opportunities : The rising rate of growth of GDP impetus to growth of white goods industry segment. Penetration of consumer durables in rural India with change in lifestyle. consumer finance schemes and basic services, After sale service etc. Threats : Pricing of premium products. Lack of marketing strategy. Over employment issues. Per capita income of the country.

Motivate

Distribution Channel

Needs

more aggressive and competitive promotions.

environment between top executives.

Healthy

Re-entering

in markets with penetration prices and attractive

schemes.