Download - 39548722-Lg-vs-Samsung
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INTRODUCTION
• Samsung is one of the world’s largest technology providers.
• It started out as trading company exporting various products from South
Korea to Beijing, China.
• Founded by Lee Byung-chul in 1938, Samsung gradually developed into
the multinational corporation that it is today.
• The word Samsung means “three stars” in Korean.
• SAMSUNG is dedicated to develop innovative technologies and efficient
processes that create new markets, enrich people's lives, and continue to
make Samsung a digital leader.
Samsung in India
Samsung India is the hub for Samsung's South West Asia Regional
operations.
The South West Asia Headquarters, under the leadership of Mr. J S Shin,
President & CEO, looks after the Samsung business in Nepal, Sri Lanka,
Bangladesh, Maldives and Bhutan besides India.
Samsung India which commenced its operations in India in December
1995 headquartered in New Delhi.
Samsung India has widespread network of sales offices all over the country
Vision 2020 Samsung Electronics vision for the new
decade is, "Inspire the World, Create the Future.“
The Samsung Philosophy To devote our talent and technology to
creating superior products and services that contribute to a better global society.
SAMSUNG BUSINESS PRINCIPLES
PRODUCTSDigital appliance
Air Conditioners
Refrigerators
Microwave Ovens
Washing Machines
Vacuum Cleaners
Home Net
Compressors for Air Conditioners and refrigerators
Digital displaya) Plasma TVs
b) LCD TVs
c) Micro Display Panel TVs
d) Monitors
e) PDP Modules
f) OLED Panels
g) USB Memory
h) Flat Panel Computer Monitors
Digital mediaa) Home Theater Systems
b) DVD Recorders
c) Super Multi DVD Rewriters
d) CD±RW
e) Notebook PCs
f) Desktop PCs
g) PDAs
h) PDA Phones
i) MP3 Players
j) New Karaoke Systems
k) Car Infotainment
Mobile communications
CDMA Handsets
GSM Handsets
3G Handsets
Cellular Phones
KEY BUSINESS AREAS
TV/ AUDIO/VIDEO CAMERAS & CAMCORDERS PC/PERIPHERALS/PRINTERS MOBILE PHONES HOME APPLIANCES
REFRIGERATORS AIR CONDITIONERS WASHING MACHINES
DISTRIBUTION&MARKETING STRATEGY
The company has number of dealers and warehouses. They have LG exclusive shopee.
For the marketing of the products a number of activities are followed
Exhibitions are conducted from time to time.
Society and college activities are conducted.
Hoarding, Posters, banners are used so as to grab the attention of the costumers.
Day to day advertisement in leading newspaper.
Discount at festival time.
For dealer relationship they arrange dealer meting at several time in the year
LG divide dealer in gold silver etc. category to know the performance of the dealers.
They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product.
LG also uses the radio FM for the promotion activities.
Also provide capon and scratch card for festive season.
LG – CRICKET
LG has differentiated its products using technology and health benefits. CTV - ‘Golden Eye’ technology Air-conditioners - ‘Health Air System’ Microwave Ovens -‘Health Wave System’.
Marketing strategies
Product innovationPricingDistributionAdvertisement & sales promotion
Promotion….. Of all the elements of marketing mix,
LG seemed to have put more emphasis
on promotion and advertising.
In 2002, it spent around 1.3 billion on advertising. An ad agency which handled the account of one of the LG's rivals, commented: "Communication creates a mind space among the consumers and LG has occupied that fairly well."
Unlike many Indian brands which advertised seasonally i.e., (two-three months of the festival season-September, October and November), LG advertised all round the year.
R&D Potential
LG has set up research and development facilities in India at Bangalore and is in the process of setting up another at Pune. Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customized R&D for specific countries to which it exports products.
The R&D facility in India, where LG has been investing Rs 2 billion per
annum, accounts for 90% of the innovations.
Research & development
The company’s thrust on Product Innovation and R&D have given the company a competitive edge in the marketplace
Samsung has two Software development centres
-Samsung India Software Centre (SISC) -Samsung India Software operations unit (SISO) at Noida and
Bangalore Samsung India is also carrying out Hardware R&D at its Noida R&D
Centre.
COMPARATATIVE ANALYSIS
Brand Awareness & Market Share
MOTOROLA17%
SONY ERICSSON17%
NOKIA49%
APPLE6%
LG6%
SAMSUNG6%
Mobile Phones
Market Leader: Nokia
LG has a pie of 6%
Close competitor of Samsung &
Apple
Segment: Mobile Phones
Conclusions - Mobile Phones
Nokia is the market leader, followed by Sony Ericsson
LG is an emerging player
Direct competition with Samsung, owing to similar user perception
Brand Awareness & Market Share
Market Leader- LG
Godrej- Second most popular brand
Samsung & Whirlpool lag behind
SAMSUNG12%
VIDEOCON4%
LG35%
WHIRLPOOL15%
GODREJ27%
ELECTROLUX4%
BPL4%
Refrigerators
Segment: Refrigerators
Conclusions - Refrigerators
LG is the dominant player in the market
Other Players have a segmented market share
Unstructured Positioning of all other Players
Brand Awareness & Market Share
Market Leader- LG
Voltas- Second most popular brand
Samsung commands the third position
LG39%
VOLTAS24%
GENERAL5%
SAMSUNG16%
WHITE WEST-
IN-HOUSE
3%
CARRIER5%
HITACHI5%
ONIDA3%
Air Conditioners
Segment: Air Conditioners
Conclusions - Air Conditioners
LG is the dominant player in the market
Closer user perception shared with Voltas
LG rated low on Technological aspects like Noise Levels
Hitachi was positioned high for producing low Noise Levels.
Brand Awareness & Market Share
Market Leader- Sony
LG and Samsung close competitors
Philips has a small market share
SONY54%
PHILIPS4%
SAMSUNG17%
LG25%
LCD TV
Segment: LCD Televisions
Conclusions- LCD Television
Sony is the Market Leader in LCD TV segment.
Samsung – LG, very similar user perception, directly competing with each other.