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Shahbaaz SaiyadS.Y.B.M.SRoll No: 34OBJECTIVETo know the usage and attitude of consumers towards LG products. To understands the nature of competition facing the consumer durables market. To study LGs marketing strategies. To analyse the 4 Ps of marketing with respect of LG. To know peoples perception about the brand which impacts satisfaction. To study LGs foray into rural India. To analyse LG with respect to STP. To study LGs branding strategies.

VISIONGLOBAL TOP 3 BY 2010

LG Electronics is pursuing its 21st century vision of becoming a true global digital leader who can make its customers happy worldwide through its innovative digital products and services.

LG Electronics has set its mid-term and long-term vision anew to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010.

As such, we embrace the philosophy of "Great Company, Great People," whereby only great people can create a great company, and pursue two growth strategies involving "fast innovation" and "fast growth." Likewise, we seek to secure three core capabilities: product leadership, market leadership, and people-centered leadership.

MISSION A market like ours comprises both mass and premium-end segments. Neither can be ignored. While they are going after the consumer who is market conscious, they do not ignore those who want high-end products.MASS MARKETFor the mass market, the company would not like to use the term 'value-for-money' as at every price point there is a value for money. But this consumer also desires products that are aesthetically appealing, desirable and technologically superior. Their strategy is to promote LG as a product that satisfies all these needs.

RURAL MARKET

The rural market IS going to be the main focus at LG. So, for that, they are opening many more branches across the country. In September 2002, we had only 18 branches; now they have 40. Additionally, they have 112 area offices, none of which were there last year. These area offices have been opened 10 district-level areas. Below these area offices, they have remote area offices, which we call RAOs. Currently, they have 80 RAOs. and are planning to expand that to 200 by next year, so that they can reach out to the rural market un a better way and feel the pulse of consumers and dealers there.PREMIUM END MARKET

The consumer really is not price-sensitive today. That is, if you are giving quality products and the latest technology, they want it. As for their products in the premium-end segment, in every product category they have feature-packed products at every price point LG demands a premium and the customer IS ready to pay since he is assure greater value Here again they have managed the psyche of both these segments significantly well to be able to achieve numero uno status in all product categories and segments.

GROWTH STRATEGYGrowth Strategy

Fast Growth

Fast growth is the result of strategies designed to expand the market size and earnings quickly, in the process improving the growth rate in terms of monetary value rather than quantity.

Fast Innovation

Fast innovation involves setting extremely high innovation goals and securing a competitive edge, aiming for a target of 30% more than what our competitors can do. Fast innovation also means 30% more sales and improvement in our market share, new product development and unveiling these 30% faster, developing technology and establishing corporate value three years ahead of our competitors.

COMMUNICATION STRATEGIES

COMMUNICATION THROUGH HEALTH PLATFORMLG was one of the first companies in the industry to realize this need of the consumers and. leverage it. The brand has been successful in creating a connection with the consumers for being the pioneer in this communication. Examples are many: 'Golden Eye' for its televisions, 'Preserve Nutrition' for refrigerators, 'Fabricare' for washing machines et cetera. While other consumer durables brands have also begun using the health platform, they have the benefit of the first mover advantage.

However, now there has been a strategic shift in the brand communication and marketing strategy. Now they have gone a step ahead and pitched their products on 'happy living'. This platform extends beyond health and across all product categories to reflect the overall well being of consumers.

ADVERTISING STRATEGIESLG one of the few companies that recognized the emerging trend in consumer needs towards health consciousness. Their advertising strategy has been to communicate what products actually deliver - health, convenience, advanced features, and technological superiority.LG Communication, till date, was centered at the theme of 'protective health'. It was driven by LG's concern for the consumers' health, and having technology that work -35 protecting them This platform gave LG the ability to cater to the benefits that consumers were looking for and was focused on 'product and technology'

SWOT ANALYSISSWOT is the tool to see that where organization stands, which areas required improvement, which areas required serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of LG will help to understand the position of LG in the market.

STRENGTHSLG is a multinational company and a recognized brand around the world. It has successful established not only in developed countries but also in developing countries.LG products are reliable, easy to use, and have simple designs which satisfy customers thats why LG have the advantage of having loyal customers.In LG Corporation the research and development has given greater importance because to satisfy the customers and provide the customers what they want the research and development id required.LG try to keep products innovative to attract the customers and to capture more market share.LG is at its growing stage and its growing quickly. It is producing solid products which rapidly satisfying the customers.

WEAKNESSESThe big weakness of LG is that it has very few competent employees mostly are not skilled and also there is no training and development concern for employees.OPPORTUNITIESThe electronic market is expanding rapidly which is a great opportunity for LG to expand itself in new market and to capture more market share. It also can expand its target market geographically and socially both by introducing new products in existing market and existing products in new markets.Through the innovation in existing products it can attract more customers because at present it is behind the market leadership so to become a leader it has to make innovations to attract potential buyers and retain existing customers.

THREATSAs the competitors of LG are more dominant in the market and continuously improving their products so they can take away the existing customers of LG, so it has to work very hard to retain and attract customers.The condition of economy all around the world is not good and it is affecting the purchasing power and priorities of the customers, people are facing difficulties in satisfying basic and needs so how they can spend on electronics which is considered as luxury items. This situation can affect the sales of the company.

CONCLUSIONRelentless AggressionWithin four months of its entry into India. LG established its presence all over India. LG advertised all year around, unlike Indian companies, which advertised seasonally. Resource Focused on single DifferentialLG markets on health platform across its product range. Golden Eye is CTVs Fabric Care in washing machines, and Zero Bacteria in ACs.

Leadership in ad spendsLG allotted around Rs. 1.3 billion for advertising. Videocons ad spend in contrast, was just Rs. 300 million. (when nothing else works, the moto seems to be to, just barge in on consumer consciousness)

Broad and contemporary product RangeIn 2001 LG launched 45 products. In 2002, this figure increased to 60. Appropriate Pricing LG had products across all price points, from Rs. 8000 CTV Rs.0.1 million plus plasma projection CTVs LG was not averse to playing the price game and making massive price cuts to throttle competition and maintain volume.