LG Company by mnmgroup

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									LG ELECTRONICS INDIA
      PVT LTD
    Evolution of Marketing

   Marketing was began in the 1970's with the birth of the "marketing orientation".
   During the first stage of capitalism business had a production orientation. Business
    was concerned with production, manufacturing, and efficiency issues.
   By the mid 1950's a second stage emerged, the sales orientation stage. Business's
    prime concern was to sell what it produced.
   By the early 1970's a third stage, the marketing orientation stage emerged as
    businesses came to realize that consumer needs and wants drove the whole process.
   Marketing research became important. Businesses realized it was futile putting a lot
    of production and sales effort into products that people did not want.
   Some commentators claim that we are now on the verge of a fourth stage, one of a
    personal marketing orientation. They believe that the technology is available today to
    market to people on an individual basis. They feel it is no longer necessary to think in
    broad aggregated terms like market segments or target markets.
   Marketing has become an academic discipline in itself, with tertiary degrees in the
    field now routinely awarded.
    Growth of LG in India
   LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea.
   World’s 3rd largest appliance maker
   LG electronics India was established in January 1997 in India 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 Crores.
   LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that
    commences operations in October 2004.
   LG has been able to craft out in ten years, a premium brand positioning in the Indian
    market and is today the most preferred brand in the segment.

   LG India deals in many Products:-
     • AC
     • Flat panel Display
     • Microwave Oven
     • Refrigerator
     • Television
     • PC’s & Notebooks
     • Vacuum Cleaner
     • Washing Machine
     • Mobile Phones
     Some of the examples of the
     success of LG
    1997
     40-inch Plasma TV and the world’s first IC set for DTVs developed in India.
    1998
    World’s first 60-inch Plasma TV developed.
    2000
    The world’s first Internet-enabled refrigerator launched Global sales of Refrigerators reached the
    number one position.
    2003
    World’s first synchronous-asynchronous IMT-2000 mobile phone developed & Launched the world’s first
    Super Multi DVD Rewriter.

    2004
    EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission
    standard by the US ATSC All-in-one LG 55-inch LCD TV, the world’s first and largest among LCD TVs

    2005
    The world’s first DMB notebook commercialized & The world’s slimmest TV commercialized .
    2007
    Launches the industry's first dual-format, high-definition disc player and drive Launches.
    2008
    Introduces new global brand identity: "Stylish design and smart technology, in products that fit our
    consumer's lives."


  SCOPE OF MARKETING
Scope of marketing consist following terms:
• Goods
• Services
• Ideas
• Informations
• Events
• Satisfactions
• Experiences
• Persons
                            GOODS
   TELEVISION                      MOBILE PHONE
    . LCD TV                        . Arena
    . Plasma TV                     . Cookie
    . Ultra Slim TV
    . Flat TV                       . Secret
                                    . KC550
    DIGITAL AUDIO VIDEO            . Viewty
    . Home Theatre System           . Dynamite
     . Music System                 . All Rounder
     . DVD Player

   COMPUTER PRODUCTS               REFRIGERATOR
    . Notebook PC                   . Side by Side Refrigerator
    . Desktop PC
    . Monitor                       . Frost Free Refrigerator
    .Optical Storage Devices        . Direct Cool Refrigerator
    . Projector

                                    COMMERCIAL AC
   VACUUM CLEANER
    . Vacuum Cleaner                 . DuctableType AC
                                    . Non Ducted Type AC
                 SERVICES

Call Centre:
  LG provide customer care service in case they have any problem
   regarding products they can call at LG call center.

Dealer Locators:
  For experience LG products one can visit the nearest dealer
   locator

Club Service:
  LG provide this service in which customers get lifetime
   membership with LG

Online Complaint Registration:
  In case of any fault in products customers can register their
   complaints online
                          IDEA

LOGO:
" THE FACE OF THE FUTURE. FIND
   OUT ABOUT THE MEANING AND
   INSPIRATION BEHIND LG'S
   LOGO DESIGN”.
The letters "L" and "G" in a circle symbolize
   the world, future, youth, humanity, and
   technology.


SLOGAN:
       " LIFE'S GOOD"
 REPRESENTS LG'S DETERMINATION TO
  PROVIDE DELIGHTFULLY SMART
  PRODUCTS THAT WILL MAKE YOUR
  LIFE GOOD.
        INFORMATION

LG provide many informations with their
  products as an eg:
 LG launched 1st TV with Golden Eye
  technology which do not harm customers
  eyes
 Guidance for the disposal of End of Life
  Products
 Product recycling
             EVENTS

• LG organize an event in which they are
  looking for 15 children which will escort team
  India to the stadium in South-Africa in
  Champions Trophy 2009.
• LG serves as the HEAD SPONSOR of various
  leading Television shows like : Mallika-e-
  kitchen, Stars of India.
        SATISFACTION
 LG strives to enhance the
  customers life and
  lifestyle with intelligent
  features, initiative
  functionality and
  exceptional performance.
 LG always make their
  customers in their bid to
  become the worlds most
  trusted brand.
 Respecting and caring for
  customers is the driving
  force behind their
  philosphy in human-
  centric product
  development.
        EXPERIENCE
 LG has a great experience of over 12years
  as it was established in the market in 1997.
 LG provides the best products with unique
  features to their customers by keeping in
  view the needs and wants of their
  customers.
 MD message-determined to make LG as
  an aspirational brand in India with
  customer delight and satisfaction
          PERSONS
 Name of MD- Mr. Moon B. Shin
 Name of vice-president – Mr. Ahn
 Brand Ambassadors- Abhishek Bacchan,
 Zayed khan
Customer Value Proposition

 In the field of marketing, a customer value proposition consists
  of the sum total of benefits which a vendor promises that a
  customer will receive in return for the customer's associated
  payment (or other value-transfer).
 Put simply, the value proposition is what the customer gets for
  his money/time.
 Accordingly, a customer can evaluate a company's value-
  proposition on two broad dimensions with multiple subsets:
 relative performance: what the customer gets from the vendor
  relative to a competitor's offering;
 price: which consists of the payment the customer makes to
  acquire the product or service; plus the access cost
 The vendor-company's marketing and sales efforts offer a
  customer value proposition; the vendor-company's delivery and
  customer-service processes then fulfill that value-proposition.
  Value-Proposition As             A
      Marketing Tool
 A value-proposition can assist in a firm's
  marketing strategy, and may guide a business to
  target a particular market segment .

  Here is an example of one of the best value
  proposition that belongs to a sales consultant of
  LG :
“Our clients grow their business, large or small,
  typically by a minimum of 30-50% over the
  previous year. They accomplish this without
  working 80 hour weeks and sacrificing their
  personal lives”.
LG’S VALUE PROPOSITION

 LG provides a huge range of products to its
customer’s. Some of its examples are:

   LG Flat panel Display
   CTV
   Air Conditioners
   Refrigerators
   Washing Machines
   Microwave Oven
   NoteBooks
   Audios
   Vacuum Cleaners
 LG flat panel displays
     LG Electronics has achieved new dimensions of technological excellence among the
      Plasma Display Panel manufacturers. The PDP is available in sizes of 40, 42, 50, 60 and
      71 inch internationally


     LG Air Conditioners
    LG took the lion's share of the market with 35% market share in 2006.


     LG Refrigerators
    The new range of refrigerators will now be available with more value added features such
      as Anti-bacteria gasket, sliding door bin in addition to the already existing features.


     LG Washing Machines
    LG’s Top loading range of fully automatic washing machines comes equipped with the
      revolutionary
      i Sensor technology


     LG Microwave Ovens
    LG has launched their high end microwave ovens SolarDOM and WaveDOM.


     LG Mobile Phones
     LG Mobile comes with Plug and Play feature.
PRODUCT MIX
     The Product Mix
 This is the total sum of all products and
  variants offered by an organisation.
 The set of all product lines and items that a
  particular seller offers for sell to buyers.
 The composite group of products that a
  company makes available to market markets.
Product mix is further
classified as:
     Product Width :
    It is the number of distinct product lines offered by an organisation. Eg: LG mobile
      phones, washing machines, refrigerators, vacuum cleaners etc.

     Product Length :
    It refers to the total number of items in the product mix. Eg. LG intello eye, semi-
      automatic washing machine, LG x-wave TV, Etc.

    Product Depth :
    It refers to the number of variants present in a single product line. Eg. The
     product depth of LG mobile phone is LG P-7200, LG S-5200, LG Dyanamic, LG M-
     6100, Etc.

   Product Consistency :
    Gives the relationship between the products of product line.
      Product Line
 A group of closely related product items.
 A group of products (manufactured and
  distributed by an organisation) which are
  similar in the way they are produced or
  marketed.
  Market Segmentation
LG has segmented its Market on the basis of following:
 Demographic
    Income
    Occupation
 Geographic
    Tier 1 cities
    Tier 2 cities
 Psychographic
    Life style
    Personality
 Behaviour
    Value
    Benefit Sought
                TARGETING

 LG has targeted its market on the basis of the
  product that they are offering to the consumer.
 They are targeting:
   Upper Class Segment
   Upper End
 They are targeting to those consumer 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
 They have LCD and Plasma Television and TV
  DIOS refrigerator for premium segment.
 They are also targeting those consumer, who
  are more concern of safety And health issues.
 LG is now going to shift over to mid class
  segment and want to mass market their
  product.
 POSITIONING STRATEGY

 With the tagline Life’s Good, LG positioning is
  to differentiate their products on the basis of
  technology which appealed to the consumer
  on the basis of health benefits
 With the tagline ‘Life’s 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 different 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’
    MARKETING MIX
The marketing mix is the organization's overall
 offer, or value, to the customer. 'The basic
 marketing mix is often nick named "the 4Ps"
 (product, place/distribution, pricing,
 promotion); these are elements in the
 marketers armory — aspects that can be
 manipulated to keep ahead of the
 competition'.
  PRODUCT STRATEGY

LG believed in holding the interest of its customers
 by bringing out new products regularly. In its first
 year of operations, it launched 70 models across a
 range of products.
In 2001, it launched 45 new models across its entire
product range and in 2002 it launched 60 new
models (Refer Exhibit III for LG's product range). LG
customized product for Indian markets.
Before developing products, LG conducted market
research to ensure that its products met local
requirements...
  PRICING STRATEGY

Initially, when LG entered the Indian market, its
products were priced high. This was because LG
had to import products in the absence of a
manufacturing facility in India.
Thus, its products were priced as high as
Japanese products. According to some analysts,
this strategy was adopted to make local
consumers feel that LG products were by no
means inferior to Japanese products in
performance or in quality. However, in 1998, LG
launched 'Sampoorna,' a low priced TV aimed at
rural consumers...
PROMOTION STRATEGY
Promotion strategy of LG is concerned, it is being
planned and executed. Local Agent of LG simply
gives advice and coordinate in its
implementation. Eg. In 2002, it spent around 1.3
billion on advertising.
Since LG is a multi-national brand, their spending
on advertising is in such a way that their all
product get promoted. Although for different
product they have got different agent; like for
TV, New Electronics. For computer monitor,
Vision Computer. For mobile phone, Camera.
    PLACE STRATEGY

Soon after its entry into India, LG realized that
 it needed to be innovative to capture the
 market. LG expanded throughout the country
 to far-flung towns and semi-urban markets. It
 sent vans across the country, covering a
 distance of 5000 km every month, to increase
 brand awareness among the trade and the
 customers...
        PROMOTION MIX
 Promotion mix is the combination, types &
     amounts of different forms of promotion
     used by a marketer.
    Promotion mix :-
1.    Personal selling
2.    Advertising
3.    Sales Promotion
4.    Public Relations
5.    Direct Marketing
         Personal selling

A process of helping and
persuading one or more
prospects to purchase a
good or service or to act on
any idea through the use of
an     oral    presentation.
Examples:               Sales
presentations,          sales
meetings, sales training and
incentive    programs     for
intermediary     salespeople,
samples, and telemarketing.
Can be face-to-face or via
telephone
           Advertising
 Any paid presentation and
  promotion of ideas, goods, or
  services by an identified
  sponsor. Examples: Print ads,
  radio, television, billboard,
  direct mail, brochures and
  catalogs,     signs,   in-store
  displays, posters, motion
  pictures, Web pages, banner
  ads, and emails
 In 2002, it spent around 1.3
  billion on advertising
        Sales Promotion
 Incentives designed to
 stimulate the purchase
 or sale of a product,
 usually in the short term.
 Examples:          Coupons,
 sweepstakes, contests,
 product samples, rebates,
 tie-ins,    self-liquidating
 premiums, trade shows,
 trade-ins, and exhibitions.
         Public Relations
 Paid intimate stimulation of
  supply for a product,
  service, or business unit by
  planting significant news
  about it or a favorable
  presentation of it in the
  media.              Examples:
  Newspaper and magazine
  articles/reports, TVs and
  radio           presentations,
  charitable      contributions,
  speeches, issue advertising,
  and seminars.
     Direct Marketing
 It is the use of non-
  personal contact tools to
  woo the customer for trial
  or purchase. The tools
  under this category
  includes E-mail order,
  catalogue-selling,
  Telemarketing, www
  marketing, TV network
  shoping etc
           Strategy A set of actions that you start with and must maintain
          Structure    How people and tasks / work are organised
          Systems      All the processes and information flows that link the
                       organisation together
              Style    How managers behave
               Staff How you develop managers (current and future)
Superordinate Goals    Longer-term vision, and all that values stuff, that
                       shapes the destiny of the organisation
              Skills   Dominant attributes or capabilities that exist in the
                       organisation
         STRATEGIES

LG as an organization takes pride in the fact
 that they have the highest manpower
 productivity and the lowest manpower cost in
 comparison to the industry. Infact LG is
 benchmarked in terms of manpower costing.
           STRUCTURE

 LG as an organization takes pride in the fact
  that they have the highest manpower
  productivity and the lowest manpower cost in
  comparison to the industry. Infact LG is
  benchmarked in terms of manpower costing.
          SYSTEMS


To cope with the growing expectations of
business and in order to give the organization
a competitive edge to the business we in LG
have streamlined the whole system by
integrating the HR fundamentals with
Information Technology and have adopted
some practices unique to LG
                   STAFF

 Joyful Working 5 was mainly based on 5 Key factors our
  organization needed to focus upon. These core factors were
  Stress, Communication, Leadership, Target setting and
  working hours. JW5 campaign helped eliminating the existing
  issues pertaining to the above mentioned factors and bringing
  fun at workplace. Indeed it has become a mission for each
  individual to complete his job well in time. All this happened
  by making workplace lively and full of Fun. The launch of this
  program happened through the melt in of top management,
  where key issues were discussed to bring about the culture
  change.
TOTAL CUSTOMER VALUE

 Total customer value,is the perceived
  monetary value of the bundle of
  economic,functional and psychological
  benefits that customers expect from a given
  market offerings.customer’s perceived value
  is the difference between the prospective
  customers evaluation of all the benefits and
  all the costs of an offerings and the available
  alternatives
 FORMULA TO CALCULATE
 TOTAL CUSTOMER VALUE


CUSTOMER VALUE=
       =TOTAL BENEFITS - TOTAL COSTS
COSTS INVOLVED

Various costs include :
 Cost of purchasing and inventorying the
  product
 Cost associated with the product
 Cost of repairing and maintenance of the
  product
 Cost of disposing the product
BENEFITS

Various benefits what a customer expects :
• Product benefit
• Brand /company benefits
• Performance benefits
• Service benefit
• Emotional /self expressive benefit
EMOTIONAL BENEFIT

 LG is strong believers in the emotional
  connection between their customers . LG
  aims to achieve over 18 million LCD TV
  unit sales, 15 percent market share .
 NEW LG's plasma TV and plasma
  module divisions will also merge in 2009
PERFORMANCE BENEFIT

 The performance of LG plasma has been
  satisfactory LG has given quality product and
  its performance which has led to cover a huge
  market share
LG PRODUCT BENEFITS

A benefit of having lg plasma for instance

 The quality o f plasma is unparraled in the
  industry
 With LG plasma we will find 16 million colors
  on our standard screen
 There is a huge image clarity.
 The screen is brighter than any other TV
   LG BRAND BENEFITS

• In a competative era LG Plasma TV play a
  very significant role in the market
• LG Plasma TV has the own recognition in the
  mind of consumers,recognition in relation
  with quality,durability,comparative prices
• LG has brought trust,confidence,comfort and
  relaibility in the customer’s mind as it has
  captured a massive market
Service benefits
AFTER SALE SERVICE OF PLASMA
 Customer Service Department,
  LG Electronics India Pvt. Ltd.,
  Plot No 51, Surajpur Kasna Road,
  Greater Noida - 201306 (U.P.)
 Telephone Number - 0120-2560960

 Email - lgservice@lgindia.com

 Call Center No - 1800 180 9999
    CLASSIFICATION OF
     CUSTOMER VALUES
Customers values are classsified in following set
  of value
• FUNCTIONAL VALUE
• EMOTIONAL VALUE
• SOCIAL VALUE
• CONDIATIONAL VALUE
• EPISTEMIC VALUE

								
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