2. Overview of company
Company was started in 1952.Lucky chemical
industrial corporation plastic industry in KOREA.
The company moved into electronics with a new
brand name in 1958.
In 1959, the company produced South Korea's LG
Electronics was established in 1958 as Gold Star.
It was a manufacturer of refrigerators, TVs, air
conditioners and washing machines.
LG Group is the merger of Lucky and Gold
Star, two Korean companies first radio.
3. • L is taken from Lucky and G from GoldStar which
formed LG Group.
• "Life's Good" is the slogan of the LG Electronics.
• Before the name of LG Electronics, Electronic goods
were sold under the name of Lucky and similarly
home appliances were sold under the name of Gold
Star.
• Gold star produces Interactive Multiplayer which
was costly but it was very successful.
• In 1995 Gold Star was renamed as LG Electronics
and owned Zenith Electronics of USA.
• LG Electronics sponsors sports in different fields
such as football, cricket and racing etc
4. • LG comprises five business units. Home appliances,
mobile communication, home
entertainment,airconditioning,and business solutions.
• . The mobiles of LG are becoming popular in the
telecommunication market due to its quality and
advance features.
• The division of home appliances manufactures
products such as air conditioners, refrigerators, ovens
and washing machines for home users.
• North America is the larges market for home
appliances division of the company.
• There are more than 75 subsidiaries of the company in
the world which designs, manufactures, market and
sells televisions, different electronic products, home
appliances and telecommunication devices.
5. • LG Electronics is the owner of Zenith
Electronics and have a joint venture with Philips
Electronics under the name of LG Display. Both
the companies are putting their effort in
manufacturing and developing the quality of
their products. Some important subsidiaries of
LG Group are LG Electronics, LG Telecom, LG
Chem and Zenith Electronics in more than 80
countries.
• LG is one of the most aggressive advertisers in
the white goods industry, spending close to 5 per
cent of its revenue on marketing activities --
that's Rs 130 crore (Rs 1.3 billion) last year.
6. • A close tie up with cricket ensured the brand
building exercise would score well on consumer
recall -- apart from signing on leading Indian
cricketers, LG also launched a cricket game on
one of its television models.
• Point of sales promotions were also extensively
advertised to ensure customers were tempted to
visit the stores.
• For customers, though, the direct approach is
preferred. The advantage of an extended
distribution network is that marketing
executives can keep a finger on the pulse of the
market. Promotions and finance schemes are
designed to suit the needs of local customers.
7. • LG has been careful right from the start to offer
customers a "value-plus" proposition.
• The company was ready to do battle on two flanks:
it offered modern, features-packed products, at the
same time keeping its margins wafer-thin. Even
competitors accept the merit of the tactic.
• 70 per cent of its product line is produced locally,
with the rest imported from China, Korea and
Taiwan. In refrigerators, 95 per cent of the
components are localized. All of which also help
keep prices down.
• Flexibility and adaptability have proved
indispensable for LG Electronics, whether in the
showrooms or on the shop floor.
8. • Multi-product lines ensure that in-demand products
can be given priority.
• multi-product lines come with their set of
problems, but LG encourages the shop floor workers
to seek solutions at their level.
• when the line is switched from TV sets to
microwave ovens. All fittings on the TV are done
from the back, while a microwave requires work
from the front.
• When the lines are switched -- the process takes less
than 10 minutes -- the workers don't move to the
other side. Instead, they've placed mirrors
strategically so that they can continue working on
the same side, looking at the reflection.
9. MAIN PRODUCTS OF LG
• Home entertainment:-
LCD TV, plasma TV,vedio,audio,optical storage.
• Mobile communications:-
mobile handset(CDMA,GSM,3G),mobile
accessory, will
• Home appliances:-
refrigerator, washing machine, cooking
appliances,vaccum cleaners
• Air conditioning:-
residential airconditioners,commercial
conditioners, home sollutions,compressors
12. MISSION OF THE COMPANY
• LG’S mission is to be recognized as the leader in
development of global communications
products, and to sustain their leadership position in
Korea’s telecommunications market
• To create value to customers.
• To respect human dignity.
Our mission is to be recognized as the leader in development of global communications products, and to sustain our leadership position in Korea’s t
13. VISION OF LG
• Its vision is to becoming world wide leader in digital
and ensuring customer satisfaction through
innovative products and superior services while
aiming to rank among the worlds top in three case
electronics, information and telecommunication
firm.
• They hold the tight philosophy of “GREAT
COMPANY GREAT PEOPLE”.
• LG pursue the vision of becoming a true global
leader attracting customers world wide through its
innovative products and design.
14. VALUES OF LG
• RESPE CT
• LEADERSHIP
• INNOVATION
• CUSTOMER FIRST
• EXCELLENCE
• INTEGRITY
15. Product strategy
• Provide world class products to middleclass and
upper-class to enjoy luxury in their life.
• LG also ensures that whatever product they market
should be durable enough which quite last many
years and give free services to their customers.
• In case of refrigerator they provide five years
compressor guarantee and one year free services in
spare parts.
16. PRICING STRATEGY
• LG follows pricing policy in which their formula
is import cost reasonable gross profit to cover
their market expenses and also give them
reasonable profit.
17. PROMOTION STRATEGY
• Sales promotion strategy concerned it is being
designed and implemented by their respective agent
of their each products.
• They offer very handsome incentive to their
dealers, who in return push their products among
the customer and thus they get their desired
volumes.
• Due to being a multinational company and as part of
their global strategy ,most of the time divert their
funds from strong market and spend more on weak
or underdeveloped markets.
18. LG NEW MARKETING STRATEGY
• Global and regional digital leader, LG Electronics, has
announced a new marketing initiative to ensure its home
appliance business rakes in USD14 billion in global sales
by 2007 to become the world's largest appliance
manufacturer.
• LG's new strategy aims to focus on the premium
segment of the market that fetches greater margins as
opposed to volumes.
• . LG enjoys high brand recognition in the region, it is the
second most recognized electronics brand with 55.7 per
cent unaided brand awareness according to the 2004
Gallup brand equity index survey, which represents high
purchasing probability for its premium products.
19. • LG is already the world's top selling brand in terms
of air conditioners, microwave ovens and canister
vacuum cleaners.
• The goal of LG's Digital Appliance Company is to
become the number one brand worldwide in the
home appliance sector by 2007 and increase global
sales to US$ 14 billion.
• They are focusing our production and marketing
efforts on high end products in the appliances
market. To keep pace with our growth, we now need
to fine tune our marketing strategy and focus on
premium products,"
20. • To succeed in its premium marketing efforts, Park
said LG would concentrate on staying ahead of the
technology curve and develop products that deliver
high value to consumers.
• LG has developed a CRM program called the
'Diamond Club' to drive the sales of premium
products. Sustaining one market price in all
stores, maintaining a price gap with main
competitors to retain a premium image, unique
promotions for target customers and well-trained
customer care executives are features of this channel
initiative.
21. GROWTH STRATEGY
• According to South Korean LG’s own website, LG is
in pursuit of becoming a Top 3 electronics and
telecommunications company by the year 2010.
• They are doing using two growth strategies:
• “Fast growth”
• “Fast innovation”
22. BRAND MANAGEMENT STRATEGY
• The company will work closely with its global networks
to present the brand campaign direction for each
subsidiary besides sharing and benchmarking marketing
successes to improve global brand campaigns.
• LG has also set up a management system, to manage its
global brand campaigns in real time and has rolled out
an integrated Brand Communications Guideline and
slogan, Life's Good.
• They aim to be among the top three consumer
electronics manufactures in the world LG Electronics
Middle East and Africa Operations. Their global public
relations mission is to empower the LG brand; they will
implement strategies to increase brand recognition and
position LG Electronics as a digital convergence leader.
23. • LG is a responsible corporate citizen and they will
continue to undertake activities that promote
sustained exchanges with regional communities.
24. SUPPLY CHAIN MANAGEMENT SYSTEM
• LG Electronics is one of the company which tries to
reduce fraud and mis-handling of inventory
problems in its global operations system.
• According to Korea Times, the world's No. 3 flat-
screen TV and No. 4 handset maker, is determined
to implement a global supply chain planning system
in place to achieve its goals.
• LG can increase the productivity by 10 percent by
cutting inventory levels and lead times, and to check
the current status of product shipments in real-time.
