Presented by:Pooja Arora Priya Talwar Lovely Khurana Anjali Sagar

INTRODUCTION
The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was formed through the merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived .LG Electronics, is a global leader and technology innovator in consumer electronics, mobile communications and home appliances. With 117 operations around the world, LG achieved global sales of KRW 54.26 trillion (USD 49 billion) in 2011. LG is comprised of four business units Home Entertainment, Mobile Communications, Home Appliance, and Air Conditioning & Energy Solutions .

TIMELINE OF L.G
1958 Founded as GoldStar 1960 Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners In 1995, to compete better in the Western market, the Lucky-Goldstar Corporation was renamed "LG". The company also associates the letters LG with the company's tagline "Life's Good", which is actually a backronym. Since 2009, LG has owned the domain name LG.com. In 1996 LG formed a joint venture with IBM; it was later terminated.

 Since 2001, LG has two joint ventures with Royal Philips Electronics: LG Philips Display and LG Philips LCD, but later Philips sold off its shares. 2002 Under LG Holding Company system, separates into LG Electronics and LG Corporation Full-scale export of GPRS color mobile phones to Europe Establishes CDMA handset production line and R&D center in China In 2005, Becomes fourth-largest supplier of the mobile handsets market worldwide Develops world's first 3G UMTS DMB handset, 3G-based DVB-Hand Media FLO DMB Phone with time-shift function and DMB notebook computer

 2007 - Launches the industry's first dual-format, highdefinition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4GEnabled technologies with 3G LTE Won contract for GSMA's 3G campaign 2008 - Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives." 2009 - Became second-largest LCD TV provider worldwide Became third-largest supplier of mobile handsets market worldwide Became Global Partner and Technology Partner of Formula One 2010 - Unveiled the worlds first and fastest dual-core smart phone, LG OPTIMUS 2X and also Unveiled the worlds first full LED 3D TV

 2011 - Introduced CINEMA 3D Smart TV combining industry-leading 3D technology and smart TV capabilities Unveiled smart appliances delivering the consumer benefits of smart savings and smart convenience 2012 - First to market worlds first 84-inch ULTRA HD TV Introduces world-leading smart appliances with enhanced connectivity and greater convenience On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to become second largest in US. market share. On August 7th 2013, comScore released a report of the June 2013 U.S. Smartphone Subscriber Market Share that found LG fell to fifth place in the U.S mobile market share.

VISION AND MISSION

Vision LGs Vision is to become a worldwide leader in digital that ensures customer satisfaction through innovative products and superior services. Mission To create value for customers. To respect human dignity. To become best in its field.

BUSINESS DIVISIONS
L.G. GROUP
L.G. ELECTRONICS
MOBILE COMMUNICATIONS Air conditions and energy solutions Home Entertainment

L.G.CHEM

L.G.TELECOM

INFORMATION AND ELECTRONIC MATERIALS CHEMICAL AND POLYMERS

LG SOLAR ENERGY INDUSTRIAL MATERIALS

Home APPLIANCES

LG ELECTRONICS
HOME ENTERTAINMENT

HOME APPLIANCES

 MOBILE COMMUNICATION

AIR CONDITIONS & ENERGY SOLUTIONS

MARKETING MIX
Mobile Phones RS 1000-32000
Vacuum Cleaners RS1000-15000 Cooking Appliances RS 2000-20000

PRODUCT & PRICE

Air Conditioners RS-15000-80000 Refrigerators RS 6000-35000

TV / Audio / Video RS 4000-150000

Washing Machines RS 5000-30000

PLACE
LG product available in lg retail showroom, malls ,private retail shop. The services of LG are available in more than 110 countries of the world. LG Electronics controls 114 local subsidiaries in india.

PROMOTION
LG promote its product s through Newspaper, T.V., Radio, hording and taking part in events etc.

COMPETITIVE ANALYSIS

ANNUAL PRODUCTION GRAPH

2500000 2000000 1500000 1000000 TELIVISION

REFRIGIRATOR
WASHING MACHINE COLOUR MONITOR

500000
0

2005

2006

MARKET SHARE
HOME ENTERTAINMENT
1.4 LG

MARKET SHARE IN ELECTRONICS

5.3 9.6

4.4

2.3 6.2

SAMSUNG
21.6 SONY PHILLIPS SANSUI

23.6

24.6

VEDIOCON

BPL
IGO ONIDA

LG: LOOKING GREAT Category Market share in volume terms

CATEGORY LG NO. 2 PLAYER

REFRIGERATORS

27.2%

21.2 (Whirlpool)

COLOUR TVs

25.5%

22% (Sony)

MICROWAVE OVENS

41.4%

19.7 (Samsung)

WASHING MACHINES

34%

13.8% (Whirlpool)

Factors for success

REGIONAL CHANNEL STRATEGY AND WIDE DISTRIBUTION NETWORK
LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rotation of stocks, and better penetration into the B, C, and D class markets. LG also follows the strategy of stock rotation, rather than dumping stocks on channel partners. LG has over 46 branch offices and another 110 area offices across the country. LG had set a target of developing 2,000 dealers in 2004, in addition to the existing 3,000 dealers all over India.

INNOVATIVE MARKETING STRATEGIES

To make itself a known brand in the consumer electronics sector, LG has taken innovative marketing and promotional initiatives: Launch of new technologies in consumer electronics and home appliances. LG was the first brand to enter cricket in a bigway, by sponsoring the 1999 World Cup, and followed it up in 2003 as well. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more than US$8 million on advertising and marketing in this sport. LG has differentiated its products using technology and health benefits. The CTV range has Golden Eye technology, airconditioners have the Health Air System and microwave ovens have the Health Wave System.

LOCAL AND EFFICIENT MANUFACTURING TO REDUCE COST

To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has helped LGEI to reduce costs. LGEIL is implementing a digital manufacturing system (DMS) as a cost-cutting innovation. This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier.

PRODUCT LOCALISATION
Product localisation is a key strategy used by LG. LG came out with Hindi and regional language menus on its
TV. Introduced the low-priced Cineplus and Sampoorna range for the rural markets. LG was the first brand to introduce gaming in CTVs. In continuation of its association with Cricket, LG introduced the cricket game in CTVs.

R&D POTENTIAL
LG has set up research and development facilities in India at Bangalore and is in the process of setting up another at Pune.

Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customised R&D for specific countries to which it exports products.

CORPORATE SOCIAL RESPONSIBILITY

Global Take-Back Policy Guidance on the Disposal of End-of-Life Products Recycled Plastic Applications

FUTURE PLANS
LG has a positive perception of India and the Indian consumer. LG is making a foray into the e-commerce market in India and has partnered with various local websites like fabmall.com, rediff.com, indiatimes.com, and indiaplaza.com. LG is also planning to invest over US$ 208 million in India over the next three years to expand the business. Mobile software development is also on LGs agenda.

STRENGTHS
o o o o

S.W.O.T. ANALYSIS

Market leader in home appliances. Has got manufacturing unit in tax incentive . Wide range of products to serve all categories. Widest distribution network in the industry(47 barnches,10000 trade partners). o Good after sales service offered.

WEAKNESSES
o Samsung being its competitor provides similar products. o Consumers compare L.G with Samsung its Korean rival not with other global companies. o Lack of expert operators for complex machines due to illiteracy and lack of training in India.

OPPORTUNITIES
o Fast growth of the home appliances market o Shifting to rural areas o Thus maintaining control over the market and the highest share in home appliances market

THREATS
o Close competitors like Samsung are compared to it. o Price war with Samsung. o Competition from Indian brand and other foreign brands.

CONCLUSION
Mobile Phones Nokia is the market leader, followed by Sony Ericsson. LG is an emerging player Direct competition with Samsung, owing to similar user perception Refrigerators LG is the dominant player in the market Other Players have a segmented market share Unstructured Positioning of all other Players

 Air Conditioners 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. LCD Television Sony is the Market Leader in LCD TV segment. Samsung LG, very similar user perception, directly competing with each other