Lg Brown Goods

Project on LG limit Mission3 Mission Statement3 Vision3 Core treasures3 How the defer strategies atomic material body 18 at bottom the mission, vision and pump assesss3 ease up Strategy3 commercialize place psychoanalysis3 Segmentation3 Targeting4 Positioning4 Needs4 PESTLE Analysis4 Political fixings4 economic instrument4 Socio-cultural factors5 technical factors5 levelheaded factors5 Environmental factors5 perseverance/ war-ridden Analysis6 fabrication in which LG Competes6 exertion act for croak 5 old age and projections for nigh 3 course of instructions6Market theatrical role of give 5 players by departments7 Market sh argon of unionized and unorganized for net year and projection for next terzetto years8 constancys 5 competitive forces9 collateral Competitors of LG Electronics (Brown graves) 9 Top Direct Competitors of LG Electronics in INDIA 9 warlike advantages of Samsung Electronics 10 Competitive prefers of Sony Electronics 10 Competitive Advantage of Videocon 10 SWOT Analysis of LG Electronics 10 slaying Review11Past per unioniseance of the convergence and elements of the dispenseing mix11 purpose of the come with13 Mission Mission Statement To vex a top innovative electronics fri fallisionship in the terra firma. It takes pride in its come with and employees and accepts that this is what bequeath make it into wholeness of the to the toweringest degree innovative companies of the 21st pennyimeury. Vision LGs vision is to deliver innovative digital harvestings and services that make our customers lives meliorate, easier and happier through increase functionality and fun. Core ValuesGlobal, Tomorrow, efficiency, Humanity and Technology argon the pillars that this corporation is founded on with the capital earn L and G sighted inside a circle to centre our ideals above every last(predicate)(prenominal)(prenominal) else, humanity. The symbol remember stands for our resolve to sacrifice a last ing relationship with, and to hand the gameyest satisfaction for our customers. How the present strategies argon within the mission, vision and core values By adopting the non- dust coat nautical Strategy LG go out be able to sustain its leaders locating.BOS provides a agreementatic way of identifying and creating broad(prenominal) appendage opportunities. LG is expression non scarcely to maintain its leadership position in India, but to retain to grow, and to transition from a throng commemorate to a amplitude one. Through the adoption of this policy, LG plans to launch ingatherings or services which stool or importantly increase its mart appoints and profit by walking differentiated values in view of customers. The move to adopt Blue Ocean Strategy is seen as an driven drive to resurrect LG globally.The scheme films at designing in order to effect opportunities, so far untapped either within the present separates of LG or come come on of the near(a)t side, where on that point is zero or negligible competition. bribe Strategy * Local and efficient manufacturing to a ungenerous cost * Product localisation LG came out with regional run-in menus on its TV * Introduction of suffering priced harvest-festivals for the plain market specially in the TV segment * LG has adopted the regional diffusion beat in India * Offering low-cost intersections at a disdain margin penetrative on volume to ring in revenues * LG is adopting the Blue Ocean Strategy (BOS) in India as part of its global strategy * BOS gives a frame be devoted for breaking away from the competition to gain towering customer value and profitableness simultaneously * Blue Ocean Products are products and services which create a differential gear value for the customer, thus opening up vast, parvenu markets to drastically improve profitability and market share * Blue Ocean Business Model is one that focuses the efforts of the company on providing differentiate d value to customers. Market AnalysisSegmentation Demographic Higher income group cable Geographic course 1 and Tier 2 cities Psychographic Loyalty status whipper loyal be pay back product of different demand are taken from different brand considering superiority Usage rate high in foothold of usage exploiter liveliness stage marriages and otherwise purport stage are when brown favourable and eletronics are bought benefts for consumer who seek emoluments derived with tech occassion bought by and large on festive season so provided with various schemes. Behavioural LG look for Value and lifestyle which quite a little believe they couple to. TargetingLG has targeted its market on the seat of the product that they are put uping to the consumer. upper-lower and high segments people to a prominenter extent concern to wellness benefits, life style and quality products liquid crystal display and plasm TV for allowance segment trying to shift to mid class and m ass market of product selective distinction Positioning Differentiate product on applied science which appeal to consumer on basis of health benefits like health turn over system for oven, golden eye for TV its tagline describes to make people life bettor convenient and healthier they try to position as young vibrant and premium brand NeedsNeeds met by the LG brown n electronics product ease of use, higher might PESTLE Analysis Political factor tax incomeation policies, foreign trade regulations, trade policies are the important political factors. LG essential follow the compliances given by the political science like the Environmental guard Agency. sales volume gets negatively vex-to doe withed due to any change in the policies or foreign trade regulations. It will cause consumer to pay to a greater extent for products. There is a possibility that the change in organisation fucking incur an effect from the provide of LGs Re attempt and Development. These political factors areHigh import duty export promotion scheme of Indian disposal like EPCG(Export Promotion cracking Good Scheme), EOU(Export Oriented Units) status Plants in Tax incentive states like Pune, Greater Noida. stinting factor outlay wars is the biggest economic factor for LG. LG has used competitive strategies like kettle of fish and adapting it to different markets. Making it easier to grab consumers attention with products that are easier for their e reallyday living. In India, LG subject manufacturing facilities that begun with the R&D looking at what foes behave already brought to the arket and make their product unique and geared towards the consumers needs. Things that whitethorn affect sales volume from a economic stand point is a sudden change in consumers income. So LG would have to look in to how they can make products more affordable for consumers in recession. In India GDP is rising. Per Capita Income is increase, so spending power of consumer is change magni tude. Socio-cultural factors LG went into the market in India with all the right tools. They adapted to the market and immediately began to be the innovators of that market.They have given back to the society by providing them with example opportunities by designing manufacturing plants. They are manufacturing eco-friendly products and increasing the life style of the people. Within the favorable factor, LG has been able to achieve a higher sales volume in India. Technological factors LG has always been a leader in innovation from the 1980s so technology is the important factor for them. LG is going in 3G network technology. In India, Reliance incorporation with LG has 3G plans make for smart phones. LG introduced its LG Optimus 3D to the market in India.Improvement in technology made the product cheaper and quality of product has been increased. Legal factors Legal factors like employment law and consumer security measures law can as well as affect the start-up of a company . Employment laws, like how numerous people a business employs the second of employees in each location, the minimum look of employees specified in the employment law etcetera Consumer protection law protects consumers from deceitful or unethical business practices, misguide advertisements, and defective products. So, these are some of the laws that businesses mustiness abide before starting a venture.Environmental factors LG must follow the compliances given by the government bodies like the Environmental Protection Agency which as well as monitors the implementation. The company was penalised for flunk to meet its commitment to make products reposition of polyvinyl chloride (premature ventricular contraction) plastic and brominated flame retardants (BFRs) by the end of 2010. All of LGs mobile phones are forthwith free from PVC and BFRs while other products such as TVs and notebooks contain PVC/BFR free parts LG aims to phase these substances out from TVs monitors and PCs by 2012 and household appliances by 2014.In the cash in ones chips the company scored badly on the Energy criteria, being criticized for setting a enervated target for the reduction of thousandhouse botch emissions and not making renewable might part of its low carbon strategy. LG scored or so points in the Sustainable Operations family line with the company providing take-back for obsolete phones in 52 countries and being in the process of addressing the solvent of conflict minerals. LG is direct follo aviate a green product strategy. The objective of LG Electronics green product strategy is to minimize the surroundal touch on on the whole value chain while enriching lives.The strategy consists of one-third components energy, human and resources. The strategy is based on a sit down that takes into consideration high energy efficiency, a reduction in raw material usage, and human welfare. application/ Competitive Analysis Industry in which LG Competes LG Competes in Consumer Durables diligence. Theconsumer durable goods industryemerged in the twentieth century and has now become a global industry worth one thousand thousands of dollars. * LG specializes in the manufacturing of consumer durables The domain of our report covers LGs brown Goods which take on * Television * Audio-Video ashess Computers * Electronic Accessories Industry murder for last 5 years and projections for next 3 years * We believe that the Indian consumer durables industry will get off muscular double digit harvest-home of 15% over the next 3 years. * We believe that the industry will continue to grow led by lower penetration, increasing disposable income, easy realisation availability coupled with declining prices. Increasing folksy demand would be the chance upon cause of the industry growth going ahead. * However, increase in raw material prices and cold competition among players, are key challenges for the industry. In a scenario of shorter product life cycles and increasing competition, we believe that the companies with strong RD, gigantic distribution network, strong brand would benefit most from the strong industry growth. * We believe that the consumer durables industrys growth has been two pronged (a) driven by lower penetration in hoidenish markets and (b) new innovations and replacement demand in urban markets. solution Display search ,CEAMA, GEPL, Capital question Market share of Top 5 players by segments number one Display search ,CEAMA, GEPL, Capital Research Source Display search ,CEAMA, GEPL, Capital ResearchMarket share of organized and unorganized for last year and projection for next trinity years Present Scenario At present around 97 per cent of the more than 5 one thousand thousand sell set forth of all types in India are littler than 50 sq mtrs. So organized retail forms only 3% of the total retail domain in consumer durables industry. prognostic for the afterlife The urban and rural markets in Indi a are ontogeny at an annual rate of 7 to 10 per cent and 25 per cent respectively. One of the key enablers of this growth has been the increasing penetration of set up retail.While there are established distribution networks in both rural and urban India, the presence of well-known brands and organised sector is increasing. This situation is, however, transforming. Shopping malls are meet increasingly common in Indian cities, and based on plans announced by key developers, a proliferation of new malls is expect over the next three years. Although many of the new malls would be much atomic than their western counterparts , Indian consumers will have a far larger number of attractive, comfortable, brand-conscious outlets in which to shop.As a result, the organized retail industry is expected to cover a market share of 15 to 18 per cent by the end of 2010, from on the dot 3 per cent at present. This will have a positive impact on the consumer durables industry, as organized reta iling would not only contour the supply chain, but in addition help increased demand, especially for high-end and branded products Industrys 5 competitive forces corroborative Competitors of LG Electronics (Brown Goods) The verifying foes of LG electronics brown goods such as television, audio systems and photographic cameras are the manufacturers of modern computers and laptops such as Lenovo, H.P and Dell. Modern laptops allow for a variety of multidimensional features to the consumers who use them. For antecedent they can be used as a television, as a video and audio music player or even as a camera as it hosts all these capabilities in itself. hence it provides indirect competition to firms which produce the grievous bodily harm gadgets offering these services on a single unit basis. Another form of indirect competition is posed by the major mobile phone manufacturers of the creation such as Apple, Nokia, Samsung and H. T. C.Modern mobile phones have become really sophisticated and enshroud a variety of multimedia features such as fun, videos, music, camera and the internet. so it is playacting as a one for all device today and thereby poses indirect threat to dedicated players offering unusual service gadgets such as T. V, symphony systems or D. V. D players. Also LG faces indirect competition from cheap imitations and imports especially from chinaware and Sin time outore. These products though poor in terms of quality are very scotch and hence cater to a coarse present of rural consumers who are exceedingly price conscious.They can easily leverage these cheap electronic goods at low prices. Thus, they are eating away a potential market share of LG electronics and thereby acting as an indirect competitor to it. Top Direct Competitors of LG Electronics in INDIA 1. Samsung Electronics 2. Sony Electronics 3. Videocon Competitive advantages of Samsung Electronics Samsung electronics gains competitive advantage by innovations in the process of product manufacturing, design and teaching. It has a very strong research and development unit that is working continuously to offer new and innovative product designs.Its race of execution is perhaps its biggest strength. The time gap between product visualization and its essential delivery is very short which helps it offer the latest in technology trends to its customers in a short span of time. It maintains a very talentsed pool of originative people who help in crusade its technological innovations. It has alike been able to recover the pulse of the customers over the years and has been prospering in offering product features which were super desired by the customers at unimpeachable prices.Competitive Advantages of Sony Electronics The biggest advantage possessed by Sony Electronics is its strong brand experience which it has been able to build over a period of time. Its core competence includes the miniaturization of products which involves making pro ducts and its components of very small sizes without compromising on its quality. It has a great research and development wing that helps it come out with cutting butt on breakthroughs in technology and innovation. Thus, it has been able to offer products with high quality.It has been successful in creating a pool of loyal customers from urban and carriage urban areas who seek mature high quality products without being too pertain about the price factor. Competitive Advantage of Videocon Videocon has gained competitive advantage in the electronics industry by offering technologically advanced good quality products at relatively low prices. It strives to provide the best potential service at the lowest possible prices. This has enabled them to become a hot preferent among the price sensitive Indian consumers especially those belonging to rural areas having low acquire power.It uses strategic planning and vendor attention to achieve operational efficiency. It has been able t o imbue a wide market area due to its efficient distribution systems. It has the largest distributed manufacturing base in India having twelve facilities crossways the country. Thus it has been able to manage a multifactorial supply chain effectively. SWOT Analysis of LG Electronics Strengths 1. LG electronics is one of the market leaders in home appliances segment in India and so enjoys a position of strength in the electronics industry. 2.Most of the LG products are of simple design and very ease to use which helps it in delicious its customers and building trust. 3. It has alliances and partnerships with major technology companies of the world such as G. E, Siemens and Microsoft etc. 4. It has a very wide range of product categories to tap consumers of various segments. 5. It has one of the widest distribution networks in the industry with more than 47 branches and 175 area offices. 6. It has a strong RD discussion section which helps it to come out with technologically ad vanced products. Weaknesses 1.The after sales service of LG is not perceived to be up to the mark as customers are not exceedingly satisfied with it. 2. It has similar product categories and features as compared to its close competitors. 3. It has not been able to create a powerful brand image for itself in the market. 4. It is often straightaway compared to its biggest competitor Samsung and its supremacy over other brands is overlooked. 5. It has not been able to attract the top talent in the form of highly practiced employees to its fold. Opportunities 1. The rural market in India is growing as the economic condition of the areas is up(a) at a fast rate.This has opened a huge potential for sales in these areas for LG. 2. The consumer electronics industry in India is also poised for further growth thereby giving ample prospect to LG to expand its scope. 3. There will be great opportunities to launch new products in the future as technology is advancing and consumers are alw ays on the lookout for something new. 4. LG has the opportunity to become the leader in white goods market as well by leveraging its supremacy in the other electronics fields. Threats 1. The biggest threat to LG electronics is from its biggest competitorSamsung which is also from southeasterly Korea and is a dominant force in the Indian Electronics market. 2. There is a threat of go into into a price competition with its close competitors that could lower its profit margins. 3. The short product life cycle of electronic products is also a threat to the company as they become obsolete very quickly. 4. The ever-changing government regulations on health, safety and environment issues may also pose a threat to the operations of LG. 5. Cheap imitations and imports from china also pose a small degree of threat to its sales. Performance ReviewPast consummation of the product and elements of the marketing mix LG Electronics is doing everything it can to retain its number one position i n the Indian brown goods consumer durables market, estimated at Rs 35,000 crore. With more than 30 per cent share of this market, it now expects its India operations to happen its Korea sales in the next three to four years. LG Electronics India is targeting revenue of Rs 20,000 crore (the figure shortly is Rs 16,000 crore) through rapid expansion and new product launches. It is investing Rs 800 crore to expand ware capacity, and the advertising budget is Rs 700 crore for this year.LG is focusing on key innovations including 3D TV, mobile digital television, and new solar cell business. The performance highlights Sales have been shown according to product and place. The following graph shows the percentage contribution made by different product categories in total sales of LG Company. The chart shows that major part of LG revenue comes from brown goods (Home Entertainment and Mobiles). The chart below shows the separation of sales region wise Source 1. Business Standard article June, 2012. 2. yearly Report-LG, 2011 Product Product localisation is a key strategy used by LG. LG came out with Hindi and regional language menus on its TV. Introduced the low-priced Cineplus and Sampoorna range for the rural markets. LG was the first brand to introduce gaming in CTVs. In continuation of its fellowship with cricket, LG introduced the cricket game in CTVs. Price To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has helped LGEI to reduce costs.LGEIL is implementing a digital manufacturing system (DMS) as a cost-cutting innovation. This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier. shopping centre (Distribution) LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rot ation of stocks, and better penetration into the B, C, and D class markets. LG also follows the strategy of stock rotation, rather than cast aside stocks on channel partners. LG has over 46 branch offices and another 110 areaoffices across the country.LG had set a target of underdeveloped 2,000 dealers, in addition to the existing 3,000 dealers all over India Promotion To make itself a known brand in the consumer electronics sector, LG has taken innovative marketing and promotional initiatives dip of new technologies in consumer electronics and home appliances. LG was the first brand to enter cricket in a big way, by sponsoring the 1999 world Cup, and followed it up in 2003 as well. LG brought in four captains of the Indian cricket group to endorse its products. LG invested more than USS 8 million on advertising and marketing in this sport. LG has differentiated its products using technology and health benefits. The CTV range has Golden Eye technology, air-conditioners have the Health Air System and microwave ovens have the Health Wave System. Objective of the company LG Electronics India aims Rs 16,000 crore sales swage in 2012. The Indian unit of South Koreas LG Electronics expects to double its revenue to $9 billion by 2015, a top executive director verbalize, as rising incomes and growing urban households expand the consumer durables market in Asias third largest economy. LG Electronics Inc, the worlds No. TV brand, said on Sunday it aimed to increase its global market share in LCD TVs to 15 percent this year from 11 percent last year by boosting unit sales by 54 percent. LG Electronics is aiming at a 50% market share in the 3D TV market this year, as against 40% last year with the launch of its latest serial publication of photographic film 3D Smart TVs priced in the range of Rs 55,000 to Rs 7,00,000, boasting of worlds slimmest bezel TVs. Soon Kwon, MD, LGEIL says, We are targeting business worth Rs 1000 crore from 3D TVs and aim to consolid ate our position in the Flat Panel TV segment with 30% market share.We have an bellicose marketing strategy with target investment funds of Rs 100 crore. The new range is also accompanied by new Cinema 3D glasses for 2012. Adds Kwon, 3D cheer is set to explode in India at a steady growth of cholecalciferol%. We are anticipating the size to go up to 5 lakh units this year, as against 1 lakh units last year. LGs aim is to increase export from India to about 40%. LGs estimated sales(in million) of year ending dec12 is 47 and dec13 is also 47.