PRESENTATION ON

LIFES GOOD OF LG

PRESENTED BY
SUBHOJIT DUTTA

INTRODUCTION
THE COMPANY WASA ORIGINALY ESTABLISHED IN 1958 AS GOLDSTAR,PRODUCING RADIOS,TVS,REFRIGERATORS,WASHING MACHINE AND AIR CONDITIONS. THE LG GROUP WAS A MERGER OF TWO KOREAN COMPANIES LUCKY AND GOLD STAR. LG ELECTRONICS INDIA PVT.LTD, A WHOLLY OWN SUBSIDIARY OF LG ELECTRONICS,SOUTH KOREA ESTABLISHED IN JANUARY IN 1997 AFTER CLEARENCE FROM THE FOREIGN INVESTMENT PROMOTION BOARD.(FIPB)

 LG SET UP A STATE OF THE ART MANUFACTURING FACILITY AT GREATER NOIDA IN 1998 WITH AN INVESTMENT RUPEES 500 CR. IN 2004 LG ALSO SET UP ITS 2ND GREEN FIELD MANUFACTURING UNIT IN PUNE MAHARASTRA.

STRATEGIES TAKEN BY LG
THEY APPLIED THE STRATEGY OF RURAL MARKETING. THEY HAVE MUCH MORE FOCUS ON MAIN PRODUCT. THE OTHER THINGS ARE FREE OF COST WITH THE MAIN PRODUCTS. THEY KNOWS VERY WELL HOW TO CONVINCE. THATS WHY THEY HAD ALWAYS TAKE CARE OF CUSTOMERS TASTE & PERFORMANCE

 SPENT LOTS OF MONEY FOR ADVERTISING & PROMOTION PARENTRATIVE DISTRIBUTION POLICY IN RURAL AS WELL AS URBAN AREA SCHEMES MADE ACCORDING TO TASTE & PREFERENCE OF REGIONS PROVIDED DIFFERENT ACCESSORIES & TOOLS WITH THE PRODUCT ALLOWED QUALITY PRODUCT IN REASONABLE PRICE

ADVERTISING & PROMOTION

SPEND AROUND 5% OF REVENUE FOR ADVERTISING ATTACHED WITH CRICKET WHICH IS MOST POPULAR GAME IN INDIA SINGED LEADING CRICKET PLAYERS LAUNCHED CRICKET GAME IN ONE OF THE MODEL

SCHEMES MADE ACCORDING TO TASTE & PREFERENCE

REFREGETORS WITH SMALLER FREEZER & BIGGER VEGETABLE COMPONENTS CONCERN ABOUT COLORS OF THE PRODUCT FIVE LANGUAGES ARE OFFERED IN TELEVISION SCREEN LARGE CAPACITY SEMI-AUTOMETIC WASHING MACHINE IS OFFER FOR LARGE INDIAN FAMILY

ALLOWED QUALITY PRODUCT IN REASONABLE PRICE MANUFACTURED MOST OF THE PARTS IN INDIA TARGETING EARNING FROM SUPER PREMIUM PRODUCTS E.G. WALL-MOUNTENT WASHING
MACHINE, DIOS REFREEZARATOR, X-PLASMA TV

PARENTRATIVE DISTRIBUTION POLICY

OPENED BRAND OFFICE WITH LARGER CITIES SET UP IN SMALLER TOWN, CALLED CENTRAL AREA OFFICE(CAOS) & IN RURAL VILLAGES CALLED REMORT AREA OFFICE(RAOS) AUTHORITY TO TAKE OWN DECISION & STATEGIES ALL CAOS & RAOS CONNECTED THROUGH UPDATED TECHNOLOGIES

 THEY HAVE THEIR MANY EXECUTIVE BETWEEN THE MARKET & PEOPLE WITH DIRECT CONTACTS. THEY ALWAYS TOOK FORECASTING OPPORTUNITY & APPLIED IN THIS PRODUCT. DUE TO ATTENTION THEY HAD MANUFACTURED SEMI FINISHED PRODUCT IN LOCAL AREA TO REDUCED THE COST

ALLOWED QUALITY PRODUCT IN REASONABLE PRICE

MANUFACTURED MOST OF THE PARTS IN INDIA. TARGETING EARNING FROM SUPER PREMIUM PRODUCTS e.g. WALL-MOUNTENT WASHING
MACHINE, DIOS REFREEZARATOR, X-PLASMA TV.

SWOT ANALYSIS
STRENGTHS
WIDEST DISTRIBUTION NETWORK IN THE INDUSTRY. WIDE RANGE OF PRODUCTS TO SERVE ALL CATEGORIES MARKET LEADER IN HOME APPILIANCES HAS GOT MANUFACTURING UNIT IN TAX INCENTIVE

WEEKNESS
WHIRLPOOL AND SUMSUNG BEING COMPITITOR PROVIDES SIMILAR KIND KIND OF PRODUCT. ADVERTISED THE PRODUCTS ONLY WHEN THE CUSTOMER ENTER IN STORE ONLY. LACK OF EXPERT OPERATORS FOR COMPLEX MACHINS DUE TO LACK OF TRANNING IN INDIA.

OPPORTUNITIES
THEY HAVE THEIR MANY EXECUTIVE BETWEEN THE MARKET & PEOPLE WITH DIRECT CONTACTS. THEY ALWAYS TOOK FORECASTING OPPORTUNITY & APPLIED IN THIS PRODUCT. SHIFTING THEIR OUTLET TO RURAL AREAS. MAINTANNING CONTROL OVER THE MARKET AND THE HIGHEST SHARE IN HOME APPLIANCES MARKET. GOT THE PERMISSION TO OPERATE A WHOLLY OWNED SUBSIDIARY.

THREATS
COMPITITON FROM INDIAN BRAND AND OTHER FOREIGN BRANDS. PRICE WAR WITH SONY,SUMSUNG,WHIRLPOOL. CHALLENGE TO INTREGRATE WITH NEW MANAGING DIRECTOR.

ISSUES
1. THE FIRST & ONE OF THE MOST ISSUE IN THIS CASE IS, OVERCONFIDENCE OF THIS COMPANY. 2. STANDARD OF LIVING HAS INCREASED IN INDIA. NOW CUSTOMERS WANTS MORE LUXARY & FASHIONABLE GOODS. 3. CUSTOMERS ARE MORE RASIONAL & SMARTER THEN BEFORE.

CONCLUSION
CUSTOMERS ARE MORE CLEVER RIGHT NOW, SO LG NEEDS TO CHANGE THE STRATEGIES AS MORE & THEY HAVE TO WORK ON THE NEW MARKETING STRATEGIES. IF THEY WILL CONTINUE WITH THEIR MONEY & MARKET VALUE THEN CUSTOMERS WILL BE MUCH MORE HAPPY & LIFE ALSO WILL BE GOOD. AFTER THAT WE CAN SAYLIFES GOOD