LG- Challenger or Follower?

LG in the segments like TV(LCD/LED), Mobile phones is following its competitors like, Samsung and Sony etc.Lets have a look at its strategies:•Samsung(20.5%), LG’s closest competitor has built a strong lineup of handset models like the entry-level Guru series, youth-centric Corby range, Android-led Galaxy series and the hi-end Omnia•LG(7.8%), taking an offensive strategy plans to launch a record 45 new handset models in India this year, including 30 Smartphone. LG is building the Optimus series as its flagship lineup(innovation strategy)•New age TVs like, the LCD and the latest LED TVs introduced by the competitors compelling LG now to take new marketing initiatives(Sony Internet TV,Bravia)•LG is coming up with its new Smart TV-the CINEMA 3D, which is going to be their flagship brand.

Samsung OMNIA LG Optimus Sony Internet Tv LG Internet TV

LG: Product Portfolio

•Home Appliances

Water Purifier Refrigerator AC Washing

Machine Dish Washer Vacuum

Cleaner Microwave

Oven Air Purifier

•TV/ Audio/ Video LCD TV LED TV Plasma TV Color TV Home Theatre

System Music System DVD Players Blue ray Players

•Mobile Phones Smart Phone Touch Phone Multimedia

Phone Dual Sim

Phone Basic Phone

•Computer Products

LCD Monitor

LED Monitor

Projector Optical

Media

•Commercial Products• For Business

Why LG is not perceived as a youth brand?•Consumers associate LG strongly with the household products, hence it has a low appeal among the youth•The average age of the LG consumer is above 30 leading to trivial responsiveness among the youth•Although LG wanted to create brand differentiation based on quality, design and technological innovation but was not able to drive the youth as the product portfolio did not appeal to the target audience as competitors like Nokia, Samsung were coming aggressively in terms of innovation•John Abraham, Genelia D’Souza, Abhay Deol does not fall in college kids category. Presence of three ambassadors made the storyline confusing and clumsy. Also the ads didn’t highlight on the phones apps. So the ads were completely wasted.•Brand ambassador like Abhisekh Bachchan also featured in the ads where the main focus were home appliances

Suggested New Brand Ambassador:

Virhat KohliAge: 23yrsGender: MaleProfession: CricketerProfile: Young, Stylish, Tech-savvyCurrent Brand Endorsed: Fastrack, TVS,

Why Kohli?

•Popularity among the youngsters•Aggressive attitude makes him different from others•Known for his style statements and love for gadgets•Young and energetic, resembling the ‘new-age’ youth

SONY-market leader

LG & Samsung- close competitors, LG being 2nd

Phillips-relatively small market share

Present position of LG in Indian market

SONY54%

PHILIPS4%

SAMSUNG17%

LG25%

Trendy looking TV models complementing their home décor and their class as well

Present perception- LG as a ‘top-end brand’

What’s in the mind of the of the consumer?

How successful LG can be in attracting the high-end customer?

•Presently LG is the market leader in almost all the segments of the consumer durables industry•LG has a brand image of ‘top-end’ brand•Consumers nowadays look for products in terms of ‘value’. They are ready to shed money for a good quality and advanced products.•Competitors are coming up aggressively in the market with high-end products and are successful•Thus with the brands present perceived value LG has a high chance of success

•Brand extension: Introduction of new brands in the LCD TV segment targeting the niche market•NPD: They should combine the Superior design strategy(i.e. aesthetics and design) and Innovation Strategy(technological superiority).•Test marketing: Simulated test marketing(targeting the niche market)•New Product Marketing: Product Proliferation Strategy (i.e. more tailored products, and to fill up the shelves to choke out the competitors. A high risk, high reward approach to challenge the leader in the segment)•Channel partners: Strengthening the network to push the product in the market by offering them a fee or other incentives.

New marketing Initiative that can be taken by LG: