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LG & Samsung Promotional strategy
Transcript of LG & Samsung Promotional strategy
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Korean Conquest:How LG and Samsung won over the Indian Market
Presented by:M. Arsalan Sheikh (#7989)Ahsan Bham (#8106)Sobia Khan (#6316)
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Market Positions
• Market Leader– Samsung
• Market Challenger– LG– Videocon– Sony– Whirlpool– Phillips
• Market Followers– Haier– Onida– Panasonic– Godrej– Electrolux– Thompson– Akai
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Value Disciplines
Achieving leadership positions in market.• Samsung– Customer Intimacy (Technological)
• LG– Product Leadership (Innovators)
• Videocon– Operational Excellence (Price minimisers)
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Competitive strategiesArea of Competition SURVIVAL STRATEGY
Staying aliveLEADERSHIP STRATEGY
Targeting market leadershipWinning and retaining CustomersCustomer Value Low cost/benefit ratio Creating higher customer valueMarketing Strategy Mass marketing Differentiation and positioningCustomer Satisfaction Customer service Customer intimacy
Product Innovation New attributesLine extension
New product categoriesNew brands – Speed
Building Your Sustainable Competitive AdvantageStrategic Growth Focus Building resources Building distinctive capabilitiesInnovation Linear SystematicTechnological Innovation Incremental RadicalProcess Innovation Functional improvements Enterprise-wide BPM
Business Innovation Perfecting traditional business model
Creating new adaptable business models
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Promotion:Print Ad
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Print Ad:Overview
• Print advertising of 'Consumer Durables' increased by 9% during 2009 compared to 2008
• 'Television Sets' was the most advertised category of 'Consumer Durables' sector in Print during 2009
• 'LG Electronics India Ltd' rules in advertising of 'Consumer Durables' in Print during 2009
• More than 45% of 'Consumer Durables' ads were for Sales Promotion ad campaigns in Print during 2009
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Print Ad:Overview• Top 10 new brands of ‘Consumer Durables’ sector
advertised in Print consisted of 2 brands each of ’Videocon Industries Ltd’, ‘Eveready Industries India Ltd’ and ‘Samsung India Electronics Ltd’ during 2009.
• ‘Multiple Promotion’ accounts for 35% of total Sales Promotional ad campaign used for ‘Consumer Durables’ in Print followed by ‘Add on Promotion’ and ‘Exchange Promotion’ with 19% and 15% share respectively during 2009.
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Print Ad:Consumer Durables Contribution
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Print Ad:Market Share
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Promotion:TV Ad
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TV Ad:Overview• 14% growth in 'Consumer Durables’ advertising on TV
during 2009 compared to 2008. • 'Samsung LED TV’ gathered maximum TV ad volumes
among all the new 'Consumer Durables’ advertised on TV during 2009.
• ‘Samsung LED TV’, ‘LG Refrigerator’ and ‘Whirlpool Ro Water Purifier’ were the top 3 new brands of ‘Consumer Durables’ sector advertised on TV during 2009.
• Top 10 new Consumer Durable brands advertised on TV comprised of 2 brands each of 'Television sets', 'Washing Machines' and 'Air Conditioners' categories during 2009.
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TV Ad:Consumer Durables Distribution
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Promotion:Rural Areas (Tier III)o Challenges:
o Electricity Shortage – Sporadic Power Supplyo Acute Water Shortage.o Poor Transportation availability.o Consumer Finance Options.
o Other obstacles:o Literacy rateo Culture and traditionso Rural reacho Too many languages and dialects
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Rural Promotional Strategies
• Haat or weekly markets• Melas (25,000 melas; 7.6lakhs visits annually)• Wall paintings• Customer contacts ‘touch point’ (home-to-home)• Van campaigns• Event management• Others