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MARKETING STRATEGIES OF
LG ELECTRONICS
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATIONGURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI
PROJECT GUIDE: SUBMITTED BY:-
MS. A
N BBA
ENROLLMENT NO:
0051211708
SESSION-2010
D.A.V. INSTITUTE OF MANAGEMENT
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ACKNOWLEDGEMENT
All is well that ends well. Today I have reached the end of my project.
From the starting till the completion of this assignment there are many
people without whose assistance all my efforts would have been fruitless.
I, therefore acknowledge all who generously helped me by sharing their
time, experience and knowledge with me without which this project
would have never been accomplished.
I would like to express my sincere thanks to my internal guide Ms. ,
whose guidance was instrumental in helping me complete my project.
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PREFACE
This study is divided into several parts. This project highlights the
objective and aims of L.G Electronics sales promotion strategies and how
successful these promotions have been.
By Questionnaire- Survey, the preferences and purchase pattern of the
consumers have been highlighted. This has helped significantly in
determining what kind of promotional campaigns will be successful, what
is lacking in current campaign and things to consider in future before
making a promotional campaign.
In the end, conclusion has been made regarding the whole analysis and
several recommendations have been suggested, which could help in
boosting the success rate of sales promotion by L.G Electronics.
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TABLE OF CONTENTS
CHAPTER - 1. INTRODUCTION TO THE COMPANY
(a) OBJECTIVES OF STUDY
CHAPTER - 2. LITERATURE REVIEW
(a) INDUSTRIAL PROFILE
(b) COMPANY PROFILE
(c) PRODUCT PORTFOLIO
CHAPTER - 3. RESEARCH METHODOLOGY
(a) TITLE JUSTIFICATION
(b) OBJECTIVE
(c) SCOPE OF STUDY
(d) SIGNIFICANCE OF STUDY
(e) RESEARCH DESIGN
CHAPTER - 4. DATA ANALYSIS AND INTERPRETATION
CHAPTER - 5. SUMMARY
(a) FINDINGS AND OBSERVATIONS
(b) RECOMMENDATIONS
(c) LIMITATIONS OF STUDY
(d) CONCLUSION
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CHAPTER - 6. APPENDICES
(a) QUESTIONNAIRE
(b) BIBLIOGRAPHY
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CHAPTER 1
INTRODUCTION TO
THE COMPANY
(A)OBJECTIVES OF
THE STUDY
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INTRODUCTION TO THE
COMPANY
LONG TERM VISION:
LG Electronics pursues its 21st century vision of becoming a true
global digital leader who can make its customers worldwide
happy through its innovative digital products and services. LGElectronics sets its mid-term and long-term vision anew to rank
among the top 3 electronics, information, and
telecommunication firms in the world by the end of 2011.
STRATEGIC DEVELOPMENT:
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.
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LG THE GCCG WAY
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G ROWTH 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 andunveiling these 30% faster, technology development and establishment of
corporate value three years ahead of competitors.
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Corporate Culture
Though a company implements perfect management strategies and boasts
of outstanding and talented people, it should have an appropriate
corporate culture to unleash the power of these capabilities.
No 'No'- Challenge: The Company foster a corporate culture whereby
we suggest an alternative before saying "no" and aggressively work
towards fulfilling our goal.
'We' not I: It pursue a corporate culture whereby we embrace a strong
teamwork.
Fun to work: It create a workplace where individuals' creativity and
freedom are respected and working is made fun.
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Core Capabilities
Product Leadership:
Refers to the ability to develop creative, premium products through
specialized new technologies.
Market Leadership:
Refers to the ability to achieve the "LG brand is No. 1" goal backed by its
formidable market presence worldwide.
People Leadership:
Refers to talented people who perform excellently by internalizing and
practicing innovations.
Mission
LG Digital Design makes Customer's Dream True
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OJECTIVE OF THE STUDY
1. The major objective of my study is to check the
major marketing strategies laid down by the lg
electronics in the market.
2. I also studied how the company has managed to
rank itself among the top three firms in the market
from so many years.
3. It was also the objective of my study to find out in
what situations company introduces certain schemes
and discounts to increase its sales in the market.
4. Last, but not the least, I also studied how company
provide such an environment to its employees
where every employee works to his or her fullest.
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CHAPTER 2
LITERATURE REVIEW
(A)INDUSTRIAL PROFILE
(B) COMPANYS PROFILE
(C)PRODUCT PORTFOLIO
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INDUSTRIAL PROFILE
The world of consumer durable is becoming more and more
sophisticated, compared to what it was about 5 years back. Consumer
electronic goods are now going digital. Companies are coming out
with technologically advanced items researched in-house and being
launched in India more or less simultaneously with the rest of the
world. Some of the really high tech consumer durable to be seen in the
market are so very advanced that they seem to be from the futureworld
It is not necessary that the products that have been a great success
outside the country will continue to perform well on the Indian soil.
Indian consumer looks for value for money in these products apart
from some peculiar product attribute. Decline in the economic growth
of the country had a negative impact on almost all of the industries,
consumer durable was not an exemption. Majority of the wholly
owned MNCs which have come to Indian market in the last few years
are still in red
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Major Players
Domestic : BPL, Videocon, Philips, Crown, Onida,
Salora, Texla.
International : Akai, Daewoo, LG, Samsung, Sony,
Sharp, Sansui, Thomson. Konka (Latest
entrant)
Market shares in the 3,000,000 units market are:
10
LG
7%Onida
10%Sony
4%
BPL
21%
Thomson
3%Samsung
8%
Videocon
20%
Philips
6%
Akai
12%
Others
9%
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COMPANY PROFILE
Corporate Name LG Electronics Inc.
Established October 1, 1958 (As a private Company)
Corporate Office LG Twin Towers 20,Yoido-dong, Youngdungpo-gu Seoul,
Korea 150-721
Tel: 82-2-3777-1114
URL: http://www.LGE.com
Chairman & CEO Mr. Koo Bon Moo
Business Area and
Main Product
Digital Display & Media Company
Digital TV, PDP, Monitor, CD-ROM Drives, DVD-ROM
Drives, CD Rewritable Recorder, VCR, DVD Player,
Audio, Security System, Recording Media, Video Phone,
PC Camera, Banking Automatic System, PCBDigital Appliance Company
Air Conditioner, Refrigerator, Microwave Oven, Washing
Machine, Vacuum Cleaner, Compressor for Air
Conditioner, Compressor for Refrigerator
Telecommunication Equipment & Handset Company
TDX, STAREX, optical switching systems,
Implementation of advanced IBS (Information Building
System), System Integration (SI) service, etc.
Implementation of advanced IBS (Information Building
System), System Integration (SI) service, Handsets for
satellite, mobile multimedia and IMT-2000 services, etc.
Number of 64,082(27,814 in Korea/ 36,268 overseas)
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Employees
Financial Highlights (in Millions )
2002 2003 2004 2005 2006 2007
SALES 9,852.8 10,546.1 14,835.7 16,601.0 18,602.9 20,176.9
(Domestic) 2,569.8 2,704.0 4,881.2 6,084.1 6,654.9 4,793.7
(Export) 7,283.0 7,842.1 9,954.5 10,516.9 11,948.0 15,383.2
Ordinary
Profit
167.1 2,587.9 728.5 573.7 675.2 836.8
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PRODUCT PORTFOLIO
1. TELEVISIONS
2. WASHING MACHINES
3. AIR CONDITIONERS
4. LCD PROJECTORS
5. PLASMA TELEVISIONS
6. AUDIO PLAYERS
7. DVD MOVIE STATIONS
8. VCD MOVIE STATIONS
9. REFRIGERATORS
10. MICROWAVES
11. HOME PC
12. MONITORS
13. GSM MOBILES
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CHAPTER 3
RESEARCH METHODOLOGY
(A)TITLE JUSTIFICATION
(B)OBJECTIVE
(C)SCOPE OF STUDY
(D)SIGNIFICANCE OF STUDY
(E)RESEARCH DESIGN
(F)SAMPLING
METHODOLOGY
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RESEARCH
METHODOLOGY
Methodology is the specification of the method for acquiring the
information needed to structure the study.
a) Title:
Marketing Strategy of LG Electronics
i. Title Justification
Globalization has affected todays market towards the competitiveness.
There are so many domestic and multinational companies growing up
rapidly. Survival is being the core concept of the companies.
Today the choice and preferences of consumer is also changing.
Customer is now aware about the products. Customer is better educated
more sophisticated. He is aggressive and critical who demands his
moneys worth and pays only for what he wants.
Dealers are the customers of the company and consumers are the main
source of the information. This project has certain objectives for which I
covered both dealers and consumers all over Delhi region.
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b) Objective:
Objective One: To find out whether CTV + DVD Scheme has helped
to increase the sale of the Dealers or not?
Objective Two: Whether this Scheme has helped to change the Brand
Loyalty of the Customers or not?
c) Scope of the Study:
This project may prove to be of immense use to the Marketing section as
well as Customer Care Department as it will help them to know the
problems of customers, reasons for their dissatisfaction and ways to
eliminate these problems.
d) Significance of the Study:
LG is one such company which has brought technologically advanced
products for its customers keeping in mind that todays customer are
placing greater weight on quality and value in making their purchase
decision. Dealers are also the customers of the company. They are the last
chain in the distribution channel of the company. They are the one who
directly deals with the consumers. If they are not satisfied with the
companys services the company cannot achieve Total Consumer
Satisfaction.
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Keeping this in mind, I have undertaken the project to find competitors
potential and customers preferences towards the products of LG. For
this, I prepared questionnaire for both dealers and customers. In the
current market scenario dealers play important role to create the image of
the company and the product.
e) Research Design:
i. This project is not have any probability
ii. Exploratory research will be taken for this project work
f) Sampling Methodology:
Methods for Collecting Secondary Data:
Secondary means of data collection involved searching for related theory
and cases in different magazines, journals and newspapers. An important
source of secondary information was also provided by the literature given
by the company, including its induction manual and other Pamphlets and
Brouchers.
i. Sampling chosen with the Random method
ii. Sampling Area would be North Delhi
iii. Sample Size: 150
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CHAPTER 4
FINDINGS
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FINDINGS
1.Maximum people are aware about he CTV and DVD scheme of LG i.e.
good sign of the LG to penetrate in Indian market. While few still doesnt
know about such kind of scheme.
2. Awareness about the different scheme Ads in Journals would be given
maximum priority while Ads on TV is and through the friends would be
given the second priority by the people. Some people suggested that they
got to know about such scheme through dealer and showroom.
3. About the scheme maximum people are agree that scheme is good
while minimum said average or few people suggested that the scheme is
very good
4.People satisfy with the scheme so people says that they are satisfy with
the scheme, while few people says there is need to correction on this
kind of scheme .
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5.Complained register about the High Price 70% while unclear
advertisement 10% of the complained while undelivered gifts would be
contributed also for the complain while others contributed less number by
the complained
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6. If you had to make improvements in this Scheme, what would they
be ?
(a) Less Price (b) Free Gift
(c) Others
60%
20%
10%
0%
10%
20%
30%
40%
50%
60%
Less Prices Free Gifts Others
Interpretation: Improvement about the scheme 60% of people suggested
that less price would be required by the LG while 20% people said free
gifts would be required for making successful scheme wile 10% said
other region like promotion etc required for that.
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DEALERS QUESTIONNAIRE
7. Whether CTV + DVD Scheme of LG attracted the customers?
(a) Yes (b) No
97%
3%
0%
20%
40%
60%
80%
100%
120%
YES NO
Interpretation: 97% dealers says about LG attracted most of the
customer through with the scheme, while 3% people said that there is
need to improvement required.
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8. What do you think about this Scheme / How will you rate it ?
(a) Average (b) Good (c) Very good
70%
10%20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Average Good Very Good
Interpretation: About the scheme 70% dealers are agree that scheme is
good while 20% said average or 10% dealers suggested that the scheme
is very good.
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9. Whether the Scheme has helped to increase the sale ?
(a) Yes (b) No
YES, 90%
NO, 10%
Interpretation: 90 % dealers believe that this kind of scheme would
increase LG sales while 10% are till felt that it need to improve some
where.
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10. Are you satisfy with the promotional programs for the Scheme ?
(a) Yes (b) No
97%
3%0%
20%
40%
60%
80%
100%
120%
YES NO
Interpretation: Are you satisfy with the scheme 97% dealers says that
they are satisfy with the scheme, 3% dealers says there is need to
correction on this kind of scheme .
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11. Details of complaints?
(a) Insufficient POP (b) Display Trolley
(c) Others (d) No complaint
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Series1 2% 5% 3% 90%
Insufficient
POP
Display
TrollyOthers
No
Complaint
Interpretation: Complaint of the dealers would be 90% dealers saidthere is no complaint to retailers while 5% think Display trolley is not
available on their shop while 2% suggested that Insufficient POP is the
concern for LG.
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12. Your suggestions for further improvement of the Scheme?
(a) Less Prices (b) Exchange Offer
(c) Free Gifts (d)Enhanced Warranty Period
(e) Others
60%
20%
10% 8%2%
0%
10%
20%
30%
40%
50%
60%
70%
LessPrices
ExchangeOffer
FreeGifts
EnchancedWarrantyPeriod
Others
Interpretation: Suggestion for improving sales would be 60% think less
price is the only factor which is contributed most while 20% exchange
offer also increased the sales according to the retailers. Free gifts 10%
required to increase sales for dealers.
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CHAPTER 5
SUMMARY
(A)FACTS AND FINDINGS
(B)RECOMMENDATIONS
(C)LIMITATIONS OF
STUDY
(D)CONCLUSION
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FACTS AND FINDINGS
CUSTOMERS QUESTIONNAIRE
1. Do you own / aware of CTV + DVD Scheme of LG ?
(a) Yes (b) No
2. Where did you come to know about these Schemes from ?
(a) Ads on TV (b) Ads in magazine
(c) Through friends and family (d) At showroom / dealer
(e) Paper Insert
Ads on TV 15%
Ads in Journals 50%
Through friends and family 15%
At showroom / dealer 17%
Paper Insert 3%
Yes 97%
No 3%
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3. What do you think about this Scheme / How will you rate it ?
(a) Poor (b) Average (c) Good
(d) Very Good (e) Excellent
4. Are you satisfy with this Scheme?
(a) Yes (b) No
Yes 92%
No 8%
Average 20
Good 60
Very Good 20
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5. What kind of complaint, you registered ?
(a) High Prices (b) Unclear Advertisement
(c) Undelivered Gifts (d) Others
High Prices 75%
Unclear
Advertisement 10%
Undelivered Gifts 10%
Others 5%
6. If you had to make improvements in this Scheme, what would they
be ?
(a) Less Price (b) Free Gift
(c) Others
DEALERS QUESTIONNAIRE
7. Whether CTV + DVD Scheme of LG attracted the customers ?
Less Prices 60%
Free Gifts 20%
Others 10%
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(a) Yes (b) No
Yes 97%
No 3%
8. What do you think about this Scheme / How will you rate it ?
(a) Average (b) Good (c) Very good
Average 20%
Good 70%
Very Good 10%
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9. Whether the Scheme has helped to increase the sale ?
(a) Yes (b) No
Yes 90%
No 10%
10. Are you satisfy with the promotional programs for the Scheme ?
(a) Yes (b) No
Yes 97%
No 3%
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11. Details of complaints?
(a) Insufficient POP (b) Display Trolley
(c) Others (d) No complaint
Insufficient POP 2%
Display Trolley 5%
Others 3%
No Complaint 90%
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12. Your suggestions for further improvement of the Scheme?
(a) Less Prices (b) Exchange Offer
(c) Free Gifts (d) Enhanced Warranty Pd
(e) Others
Less Prices 60%
Exchange Offer 20%
Free Gifts 10%
Enhanced Warranty
Period 8%
Others 2%
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RECOMMENDATIONS
Managed to come out with new Schemes:
In the month of May and June, with innovation LG has managed to
come out with new Schemes at a much lesser cost taking it on an
express way to success.
Product differentiation has helped LG to make significant dent/
awareness in the mind of the Indian customers. All these factors
have gone a long way in promoting LGs acceptance, building its
image and finally making it more successful.
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Comparing the Status between Before & After
Scheme
In the month of May, before the scheme was launched, the sale of
Flat TVs was equals to nothing, but after the scheme (CTV+ DVD
combo) was launched the sale of Flat TVs has increased day by
day.
I observed that, the reasons were competitiveness among the
companies or may be Budget. Because everybody wants to buy at
low prices, it could be possible that peoples were waiting for the
Low Budget, so that they can buy Consumer Durable items at low
cost.
Finally in end, I observed that, LG has managed to keep it going by
continuously replenishing its product line, product innovation and
product differentiation, which have been on top priority. However
LG still needs more variants to fill in the many price gaps
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LIMITATIONS OF STUDY
In every Research process, there is chance of errors and errors lead to
uncertainty. Errors, which have affected the study, were:
1. Due to lack of time, I could not cover all over Delhi so that my study
was restricted to Faridabad City only.
2. Some time Co-operation from respondents was missing.
3. Most of the time respondents were not interested to answer the
question, taking it as ordinary matter of the company.
4. Most of the times respondents were biased and having shortage of
time.
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CONCLUSION
The result of success in todays highly charged competitive market
depends not only in product innovation and level of productivity but also
in hands of efficient service network with technological advancements
and more adaptability towards information edge.
It has been seen that companies are trying to lower the cost of production
and trying to give more emphasis in creating value added customer base
and customer service. It has lead to extreme innovation and cost reduction
to the marketer. It is also seen during last few years that the companies,
which have more, efficient, and meaningful service network and also the
companies who have controlled the cost of distribution have eventually
controlled the market. Companies are finding that they can attract more
customers by giving better service or lower prices through better physical
distribution. On the other hand, companies may lose customers when they
fail to provide service to its customers at the right time because a satisfied
customer brings five new customers while a dissatisfied customer takes
away fifty.
In order to multiply sales volume, only an efficient dealer and retail
network can widen the geographical reach of a companys products.
There is substantial over capacity in the industry. A shakeout is most
likely and survival will depend upon technology, pricing power, efficient
after sales service and to a limited extend branding power.
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Environmental Threats:
Competition- Indian market is becoming highly competitive after the
globalization, MNCs are giving very high competition to the Indian
domestic brands.
Value for money- Indian market is very price sensitive, customers
value for their money.
Distribution channel- Every company concentrates on its strong
distribution.
Check on unorganized market thriving- inputs that are imported
ones in at excise paid cost has no Modified Value Added Tax paid.
Customers now a days are very much aware about the products, so
companies work hard on providing information, offers, speciality of
their products to customers.
Every company stress on promotional based marketing.
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Environmental Opportunities:
Building Brand- Companys image and brand name plays a great role
in the purchasing behavior of consumers. Every company tries to
increase their brand name.
Untapped rural market- Certain market surveys show that market is
growing at the rate of around 25%, so companys like BPL, LG,
Samsung are ahead in this category and are trying to tap this big
market.
Technology- These days the customer preference are taking a shift to
technological awareness, they do not any more rely on the technology
heard, rather they have the potential to get aware, and analyze the
same and adapt them.
Socio Economic Condition is a major aspect which is giving a boomto the Consumer durable industry, the purchasing power and the
expenditure in entertainment of the customer is increasing day by day.
CRM- Customer Relation Management is another area where all
companies are trying to make their imprint.
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CHAPTER 6
APPENDICES
(A)QUESTIONNAIRE
(B)BIBLIOGRAPHY
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QUESTIONNAIRE
Customers Questionnaire
Name :
Add :
Contact :
1. Do you own / aware of CTV + DVD Scheme of LG ?
(a) Yes (b) No
2. Where did you come to know about these Schemes from ?
(a) Ads on TV (b) Ads in magazine
(c) Through friends and family (d) At showroom
(e) Paper Insert
3. What do you think about this Scheme / How will you rate it ?
(a) Poor (b) Average (c) Good
(d) Very Good (e) Excellent
4. Are you satisfy with this Scheme?
(a) Yes (b) No
5. What kind of complaint, you registered ?
(a) High Prices (b) Unclear Advertisement
(c) Undelivered Gifts (d) Others
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6. If you had to make improvements in this Scheme, what would they
be ?
(a) Less Price (b) Free Gift
(c) Others
Dealers Questionnaire
Dealer Name :
Address :
Contact No :
1. Whether CTV + DVD Scheme of LG attracted the customers ?
(a) Yes (b) No
2. What do you think about this Scheme / How will you rate it ?
(a) Average (b) Good (c) Very good
3. Whether the Scheme has helped to increase the sale ?
(a) Yes (b) No
4. Are you satisfy with the promotional programs for the Scheme ?
(a) Yes (b) No
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5. Details of complaints?
(a) Insufficient POP (b) Display Trolley
(c) Others (d) No complaint
6. Your suggestions for further improvement of the Scheme?
(a) Less Prices (b) Exchange Offer
(c) Free Gifts (e) Others
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BIBLIOGRAPHY
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BIBLIOGRAPHY
a) Books referred to:
1. Kotler Philip, "Marketing Management", Prentice Hall of India,
2004.
2. Wilson & Gilligan, "Strategic Marketing Management", Viva
Books Private Limited.
b. Journals referred to:
HBS (Harvard business review)
c. Magazines referred to:
1. LG Sansar Magazine, May 2010
2. Business Today
d. Internet referred to:
i. Sites
1. www.lge.com
2. www.lgezbuy.com
3. www.ask.com
4. www.domain-b.com
ii. Search Engines
Top Related