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    Title: MARKETING STRATEGIES OF LG Electronics India (Pvt.) Ltd.


    1. To understand the marketing and advertising strategies of LG Electronics India (Pvt.)

    Ltd2. To analyze their strategies and its effect on the corporate profile of the company.3. To compare the strategies of LG Electronics India (Pvt.) Ltd with its competitors and to

    analyze its strengths.4. To realize the role being played by advertising and promotion on the sales volume of the

    company.5. To understand the future trends in advertising and marketing in LG especially electronic

    segment.6. To Analyse the Advertising and Marketing strategies of competitors.

    Suggestions L G Electronics India's marketshare dropped in January 2005 -- for the first timesince the company was set up in 1997. But managing director Kwang-Ro Kim isn't worried.

    "The dealers must have met their targets in December itself, so they took it easy in January," heexplains.

    Were it any other company, the managing director's insouciance would appear to border onfoolhardiness. But this is LG, a company that can afford to take it easy.

    Even after the blip in sales in January -- LG's marketshare in refrigerators fell fractionally from28.6 per cent the previous month to 28.1 per cent -- the Korean consumer electronics brand isstill the preferred white goods brand in India -- across categories and sub-categories.

    Whether it is refrigerators, air conditioners, washing machines or colour televisions -- LG'sdominance over the white goods market is complete (see chart).

    That's pretty decent going for a company whose first experience in the Indian market wasnothing short of disastrous. In its earlier avatar, the Korean company came to India as LuckyGoldstar.

    This was in the early 1990s, and the rules at the time didn't permit foreign companies to startindependent ventures. So Lucky Goldstar took on not one, but two joint venture partners. Thefirst partnership ended acrimoniously while the second never took off from the ground.

    In 1997, the Foreign Investment Promotion Board finally gave the Korean company permissionto set up its own factory to make washing machines and refrigerators.
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    Rechristened LG Electronics, the new company -- a 100 per cent subsidiary of the Koreanchaebol -- swung into action and set up a state-of-the-art manufacturing facility at Greater Noida,Uttar Pradesh.

    There's been no looking back since then. In

    October 2004, LG set up a secondmanufacturing facility at Ranjangaon, nearPune, which makes white goods as well ascellular phones -- the first GSM handsetmanufacturing facility in India.

    Another facility, exclusively for GSMhandsets, is being set up and will startoperations in August. Turnover is also on the

    upswing: starting from Rs 150 crore (Rs 1.5 billion) in 1997, LG registered a turnover of Rs6,500 crore (Rs 65 billion) last year and is targeting Rs 9,000 crore (Rs 90 billion) in 2005.

    Off with the old LG's Green Marketing Strategy:

    Perhaps the most important step was to leave behind the baggage of the past.

    As Lucky Goldstar, the company's biggest fault was that it did precisely what other white goodsbrands of the 1990s were doing: some half-hearted advertising and pushing the products onlywhen the consumer entered the store.

    Activities that "pulled" potential buyers into showrooms were conspicuous by their absence.Once it got the permission to operate as a wholly-owned subsidiary, though, all that changed.

    Within just five months, LG products were available across the country, compared to the averagetwo years competitors took for a nationwide launch.

    An advertising blitzkreig followed. And the momentum hasn't let up since. LG is one of the mostaggressive advertisers in the white goods industry, spending close to 5 per cent of its revenue onmarketing activities -- that's Rs 130 crore (Rs 1.3 billion) last year.

    A close tie up with cricket ensured the brand building exercise would score well on consumerrecall -- apart from signing on leading Indian cricketers, LG also launched a cricket game on oneof its television models. Point of sales promotions were also extensively advertised to ensurecustomers were tempted to visit the stores.

    Importantly, for LG, a nationwide launch meant just that. A penetrative distribution strategyensured that products were available even in smaller towns and cities, breaking the chain of urban dependency that plagues most white goods manufacturers.

    More than 65 per cent of last year's Rs 6,500 crore (Rs 65 billion) revenue came from non-urbansources; up from under 60 per cent the previous year. The industry average? Twenty-five to 30

    LG: Looking great

    Category Marketshare in volume terms LG No 2 player

    Refrigerators 27.2 21.2 (WhirlpoolColour TVs 25.5 15.1 (Samsung) Microwave ovens 41.4 19.7 (Samsung) Washing machines 34 13.8 (Whirlpool)

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    per cent. Add the fact that the rural markets accounted for a remarkable 30 per cent of total salesand it's clear that LG's strategy is working. "We push rural marketing," agrees Kim.

    Its product designs are centred on the middle & upper class and the ads screenedhighlight the product features. Its employees are totally committed to quality and innovation. They chant TPI 50 and

    TDR, which signifies, total productivity innovation and tear down re -engineering.Through this method the company is bringing down its costs & developed new products.

    LGs corporate image is that of being the Digital leader of the new millennium.

    LG voted Indias most trusted consumer durable brand:

    Indian consumers have voted LG as the most trusted consumer durable Brand.

    This announcement made in 'Brand Trust Report 2012' by Trust ResearchAdvisory, reflects the commitment levels of LG to provide quality products to theconsumers. The report acknowledges Brands that the consumers put on thehighest pedestal of Trust based on their conviction that the Brands provideunmatched quality products.

    With highest levels of innovation backed by breathtaking style and design andunparalleled performance, LG has been successful in winning the hearts of theconsumers year after year.

    LG's Green Marketing Strategy:

    Green Marketing has become one of LG's Corporate Social Responsibilities. As part ofLGs strategy to improve on the environment, Green Marketing has being employed byLG Electronics Company in the development and marketing of products like the LG-3DPlasma Cinema designed to minimize negative effects on the environment. The recentGreen product is the LG plasma TV that has the energy star logo on it.

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    This energy star logo is an indication that LG Company is aware of the green house

    effect and therefore is participating in the reduction of greenhouse gasses by striving toproduce energy saving products for its customers. Interestingly, environmentally awareconsumers tend to earn more and are willing to pay more for green products, LG,Electronics has made it a prime concern to educate consumers on how to use theGreen LG-Plasma TV.

    LG bringing range of new Notebooks

    LG has publicized its entry into the fast-growing notebook bazaar, especially to the Indian laptopmarket, with an assortment of new products.
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    The product of the second-largest South Korean conglomerate company following Samsung,may or may not be considered affordable, but the new television sets surely will be large andprobably will draw attention at CES.

    Sang Beom Han, chief executive and executive vice president of LG Display, told the Times of

    India newspaper about the massive new Organic-LED, or OLED, TV set,

    Our objective has always been to actively define and lead emerging display technologymarkets.

    Although OLED technology is seen as t he future of TV display, the technology has been limitedto smaller display sizes and by high costs, until now. LG Displays 55 -inch OLED TV panel hasovercome these barriers, he added.

    Board of Directors

    The BOD consists of 7 Directors, 4 of whom are Outside Directors.The directors are elected inaccordance wiith the Korean Commercial Code and other related regulations. The BOD operatesindependently of any influence from major shareholders and management. The Outside Directorsare appointed by the AGM following review by the Outside Directors CandidateRecommendation Committee, to ensure fairness and transparency in the nomination of candidates. The Outside Directors are recognized professionals who monitor overall corporatemanagement activities and provide substantial advice to management. The BOD activelyprovides recommendations for important management decisions and conducts unbiasedevaluation and supervision of the management. In 2010, the BOD met 10 times to review 38agendas (28 approved, 10 reported). The attendance rate by all BOD members was 97% (Theattendance of the outside director was 100%).


    The BOD is supported by three Board Committees. They are the Audit Committee, the OutsideDirector Candidate Recommendation Committee and the Management Committee. The AuditCommittee consists of three Outside Directors, and is responsible for examining corporatefinancial records and accounting to ensure compliance with the accounting laws andtransparency. The Management Committee reviews and determines the agendas delegated by theBOD and ordinary management activities. In 2010, the Management Committee reviewed a totalof 52 agendas.

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    Evaluation and Compensation

    Compensation for the BOD members is made within regulations pertaining to BODcompensation that has been approved at the General Shareholder's Meeting. The evaluation of management and executives of LGE is held annually. Top management and executives areevaluated to determine whether they have set and achieved challenging goals, whether their jobobjectives composed of quantitative and non-quantitative factors were achieved, as well as theircapability through fair and objective process, and appropriate compensation corresponding to theoutcome of the evaluation is determined.


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    Bon-Joon Koo

    Vice Chairman & CEO, LG ElectronicsInside Director

    View Biography

    David Jung

    CFO of LG Electronics(Executive Vice President)

    Inside DirectorView Biography

    Yu-Sig Kang

    CEO of LG Corp.(Vice Chairman)Non-executive Director

    Sang-Hee Kim

    LawyerOutside Director
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    In-Ki Joo

    ProfessorYonsei UniversityOutside Director

    Kyu-Min Lee

    AdvisorSK Research Institutefor Super ManagementOutside Director

    Chong-Nam Chu

    ProfessorSeoul National UniversityOutside Director

    Audit Committee

    To ensure complete independence from the companys management and major shareholders, theAudit Committee is composed of three outside directors. The Committee's role is to examinevarious financial reports and enhance managerial transparency and fairness as supervisors. Inaddition, the committee members approve the appointment of outside auditors only after carefulreview of the candidates' professionalism, independence, reputation, capability, ability to auditinternational businesses, as well as possibilities of conflict of interest associated with the


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    LG wins 11 design & Technology honors at CES 2011

    At the Consumer Electronics Show (CES) 2011 sponsored by the Consumer ElectronicsAssociation (CEA), LG Electronics' strategic products such as smart TV, 3D TV, and thenetwork Blu-ray player won eleven CES 2011 Innovation Awards including the Best of




    [Best of Innovations / Innovations Award] Nano Full LED 3D Smart TV(LW9500)

    LW9500 showcases LG Electronics' exclusive Nano technology withthe ultra bright and clear full LED screen. This model features a thinnerbezel that maximizes viewers' attention on 3D images and "TruMotion480Hz" technology (playback speed of 480 frames per second) thatminimizes dizziness caused by watching 3D images. It also receivedmuch praise for its easy and quick access to online content and won theBest of Innovations Award.

    LGs honorees for the 2011 International CES are:

    [Innovations Award] Nano Full LED 3D Smart TV (LW7700)

    LG Electronics' exclusive Nano technology enables clear full LEDresolution. Certified by Tomlinson Holman Experiment (THX),LW7700 produces high-definition, which give users the sameexperience as watching them in the theater. It is also equipped withSmart Share technology for easy wireless transfer of files from smartTV to smartphone or tablet PC.

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    [Innovations Award] 3D Plasma TV (PW350)

    LG has incorporated its ultra-narrow bezel to maximize the screendisplay in the PW350, a display that is equally complimented by theelegantly coordinated construction of the surrounding frame and stand.Naturally, once the TV is turned on, the true power of the PW350shows itself with 3D images that deliver startling color accuracywithout giving into blur effects or roughness even during the most vividand fast-paced action scenes. Among the specifications below, it isLGs patented 3D XD Engine that generates the magic within thePW350 and leaves the viewer wanting more.

    [Innovations Award] Smart TV Platform

    LG Electronics' smart TV platform NetCast 2.0 won the InnovationsAward in the newly founded Online Audio/Video Content category forits convenient functions including the intuitive menus and accessibilityto online content.

    [Innovations Award] 3D Sound Home Theater (HX996TS)

    To provide 3D sound optimized for watching 3D movies, "3D SoundHome Theater" uses dual subwoofers, the Digital Signal Process (DSP)chip, and the sound speakers (upper unit). It won the 2011 CESInnovation Honoree Award for excellence in the category of IntegratedHome Systems.

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    [Innovations Award] Blu-ray Disc Player (BP650)

    This versatile little BP650 Blu- ray players attributes can be summedup in just two words: powerful playability! Rigged with all theprocessing wizardry necessary to meet the high demands of life in thefast lane, the BP650 is fully wired and ready to go. And at just 1.6inches in width, it can be slipped in most bags or packs with ease. The 9inch screen is ideal for watching your favorite movies in beautiful HDdefinition, displaying colors and shades in all their brilliance and depth.MKV and DivX files are handled with equal ease, and connectivity tosecondary devices is a snap with convenient HDMI and USB hook ups.The BP650 is also designed to let users enjoy online content to theirhearts content through wired network access, adding even more toolsand applications to the BP650s impressive repertoire.

    [Innovations Award] Blu-ray Rewriter (BP40LS20)

    LG is unleashing the first optical disc drive with BDXL, lettingcustomers sample the new standard in Blu- ray bliss. The brightminds over at Blu- ray figured out how to cram 128GB on a singledisc, which means that now you can watch your favorite trilogy inawesome Blu- ray quality without ever having to switchdiscs. However, the BP40LS20 ODD has more tricks up its sleeve than

    just great Blu- ray BDXL playback. It also includes a Power DVDbundle software package that takes standard 2D DVD titles as well asfile-based videos and utilizes a sophisticated conversion process toconvert them into 3D quality, all in real-time. This translates into moretime on your part watching a wider selection of your favorite titles invibrant HD and eye-popping 3D. All in all, the BP40LS20 will changethe way you feel about movies.

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    [Innovations Award] LED LCD Monitor (E2290V)

    Its small design makes it easy to be placed anywhere; the thinnest part isonly 7.2 mm and the thickness equal to six CDs stacked on each other.The monitor also provides full HD (1920 X 1080) resolution andcrystal-clear images with 10 million to 1 contrast ratio and 0.2milliseconds of response time. It has High-Definition MultimediaInterface (HDMI) ports so that users can enjoy high-definition imageson various multimedia devices. With its outstanding features, thisproduct won the CES Innovation Award 2011 in the ComputerAccessories category.

    [Innovations Award] Top-Loading Washer & Dryer (WT5101H /DLEX5101)

    This energy-saving washer by LGE feature s the ColdWash functionwhich uses cold water for washing, yet has the same cleaning effects asusing warm water. Based on LGE's innovative WaveFroce andInverter Direct Drive technology, its 6-Motion technology providesdelicate and thorough cleaning technique equal to that of hand-washing.LG Inverter Direct Drive has a 10 year warranty. The SlamProoffeature makes the product child-friendly and safe. Its full color touchLCD panel and elegant colors provide convenience and aestheticsatisfaction at the same time.

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    [Innovations Award] Steam Front-Loading Washer (WM3885HCCA /DLGX3886)

    This large-size washer enables large amount of laundry while savingenergy. Using the 6-Motion technology, which is based on Inverter

    Direct Drive with 10-year-warranty, the washer delicately andthoroughly cleans clothing as if they are washed with hands. It alsofeatures energy- saving ColdWash and allergy - proof TrueSteamfunctions to increase customer satisfaction. It is available in variouscolors and its modern design goes well anywhere.

    [Innovations Award] Dishwasher (LDF9942ST)

    This eco- friendly steam dishwasher uses TrueSteam technology toefficiently clean leftovers which were hard to remove with conventionaldishwashers. LGE's exclusive Inverter Direct Drive technology providesbetter cleaning results using less water and energy. It also features anLCD control panel and an EZ Rack system for easy stacking of plateswith different sizes.


    Project Study Report On
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    Measuring the effectiveness of display of LG

    product in dealers outlet

    What is LG HomNet?

    The LG HomNet integrates your home appliances.

    LG HomNet makes the lifestyle of the future a reality. LG HomNet will introduce people to thekind of lifestyle that was previously only possible in the movies or as a figment of theimagination, together with ultra-high speed Internet, artificial intelligence, and advanced robots.LG HomNet, a home network system, developed using state-of-the-art technologies from LGElectronics. You will be introduced to a new, pleasant and convenient 21st century digital livingculture thanks to the smart networking of all digital appliances

    The Philosophy of LG HomNet

    "We are inviting you to experience a new way of living, which has been but a dream until now."Convenient Life There are many inventions in the world, like the light bulb, which provided uswith a lighter and brighter world. LG HomNet aims to provide an even greater level of convenience. Secure Life Are you still only using your cell phone to make phone calls? Do youoccasionally send text messages and play games? If you use LG HomNet, you can secure yourhome with your cell phone! Joyful Life Wouldnt it be great if yo ur family could watch the latestmovies with cinema-quality images and sound via the VOD service? You can live a joyful lifewith LG HomNet Affluent Life If you can do your shopping and banking at the touch of a buttonfrom the comfort of your own home, you will have so much more free time to enjoy life. LGHomNet helps you have more time to appreciate your affluent lifestyle.

    Advantages & Values

    Strengths of LG HomNet

    "LG HomNet has created a new digital living environment concept"

    LG's digital home technology, which ensures a more convenient and secure living environment throughthe networking of various solutions and the latest communication equipment, is offering a new concept

    for a digital living culture.

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    Verified Practicality

    Major domestic home builders adopted and verified LG HomNet on large scale housingcomplexes.Several pilot projects with major home builders in the overseas market have been promoted.

    Easily Integrated

    . New appliances can be easily integrated into LG HomNet. . Customized solutions can be easily provided to suit the customers life style.

    Variety of Services

    . The LG HomNet portal provides customized information services. . AV content sharingbetween digital appliances will be an added benefit.

    The Worlds No. 1 Technology Standard

    The worlds first networked home appliances have been commercialized. (2000) Full line -up of various networked home appliances is retained. Various technologies (PLC, private line, wirelessLAN) and domestic/foreign standards are applied.

    Special value exclusive to LG HomNet

    "LG HomNet provides the most special and most competitive value of the 21stcentury"

    LG HomNet, which comprises the latest LG Electronics technology, is providing a more friendly andconvenient digital environment, realizing customer satisfaction with regard to the most modern living

    environments and creating an image as a specialized supplier of the latest digital living environments forconstruction companies. This in turn raises its game to the highest level of competitiveness.

    Special value for apartment residents

    . The value of the apartment increases as a result of the introduction of LG HomNet. . Lifestyleconvenience is also increased thanks to automated systems, enabling doors to be opened via the

    TV remote control, for example. . Advanced security is ensured by means of anti-theft anddisaster prevention systems. . A complete A/S based on personal visits is guaranteed.

    Special value for management and construction companies

    . The rate of sales is increased due to the provision of value-added apartments. . The brand valueis increased through the supply of a Korean home network standard as well as LG HomNetappliances. . As Korea's largest home appliance company, LG HomNet stocks and displays the

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    greatest number of networked home appliances. . Joint marketing efforts with LG Electronicshave resulted in strong promotional effectiveness. . LG Electronics has established globalpartnerships through overseas networking.

    Policy & VisionLG Electronics Policies

    Our policies help to ensure that our Business Philosophy are put into practice in our day-to- daybusiness. Here we provide a list of our policies linking to a brief summary of each one.

    CSR(Corporate Social Responsibility) Vision & Strategy

    Our CSR activities are an inseparable part of our strategies for sustainable growth and theaccomplishment of our vision: World Best at Enriching Lives through Innovation. To this end,LGE has laid out the following strategic imperatives: Ensure that every management activity iscarried out with a CSR-oriented mindset; Create differentiated value for stakeholders throughinnovation; Nurture win-win partnerships with all stakeholders in a spirit of mutual trust.
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    - CSR Governance

    In 2009, LGE created the decision-making body, the CSR Committee, comprising of C-levelofficers, presidents of company and region representative, and chaired by the CEO. Subsequentlyin 2010, a strategic decision-making process was carried out for activities including membershipof the Electronic Industry Citizenship Coalition(EICC) and announcement of Global LaborPolicy. The corporate CSR activity plan and cooperation issues are also being shared anddiscussed on a regular basis through global CSR council which is comprised of the CSRcommittee members. Following the accession to the United Nations Global Compact(UNGC) in2009, LGE joined EICC in August, 2010.

    - CSR Risk Management

    LGE is conducting CSR risk management for its Korean and overseas business sites using fivecriteria: labor, ethics, environment, health & safety, and management system, in accordance withthe EICC Code of Conduct. To meet requirements, LGE conducted a Self-Assessment on 20Korean and overseas business sites using the Electronics Tool for Accountable Supply Chain(E-TASC) in early 2010. E-TASC is an online self-assessment questionnaire system by the EICC

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    designed for Information and Communications Technology(ICT) industry members to analyzetheir CSR risk management status. In late 2010, LGE selected four from 20 Korean and overseasbusiness sites to conduct an on-site audit. Although no severe risks were detected, additionalconsulting and periodic monitoring were deemed necessary to improve such weaknesses assupply chain management.

    - Stakeholder Engagement

    LGE is actively responding to queries and interview requests from diverse variety of stakeholders, including customers and NGOs(38 cases in 2010). LGE is maintaining periodiccommunications with the academy, the industry and consulting agencies, and participating invarious conferences on CSR management. To listen more closely to the expectations of stakeholders, LGE is holding stakeholder consultations with the aid of experts from thegovernment, NGOs, international organizations, academia and the industry for specific subjectssemi- annually since 2010. To improve employees CSR understanding and awareness, LGE isrunning a CSR training program every month for new employees regardless of work experience.

    LGE is planning to increase the number of employees to be trained in 2011. Since December2010, CSR newsletters have been issued to department leaders(biweekly) in order to share theglobal CSR trend and LGEs CSR activities.

    - Strategic Social Contribution

    LGE has also continued to provide diverse social contributions in 2010 focused on sustainablesolutions to the environment, poverty, disease, and the United Nations Millennium DevelopmentGoals (MDGs), put efforts into its poverty alleviating programs to include the Asia region, andsponsoring the Business for the Environment Global Summit.

    Top Management Message

    CEO Message

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    What is your opinion of sustainability management? The most important principle for a company to maintain its sustainability is essentially to securecompetency in its field through sincere commitment to the basics. For manufacturers like us, the most

    important and basic competency is quality. Quality is our promise to the customer and it cannot becompromised. A company that fails to remain faithful to this promise will inevitably cease to exist. In

    addition to customer engagement, commitment to stakeholders is also the companys fundamental role,a responsibility that is no less important than the companys obligation to guarantee the quality of its


    What are the major achievements of 2010 in terms of sustainability management? To successfully achieve sustainability management, it is crucial to establish a company-wide baseline. In

    2010, we introduced a Global Labor Policy, establishing the companys baseline to over 120 worksitesand offices worldwide. At the same time, we established a Supplier Code of Conduct to encourage ourpartners and suppliers commitment to sustainability management. In addition, we have been holdingconsultation meetings with our stakeholders twice a year to better understand their opinions and

    interests concerning our business. It is our aim to quickly grasp the markets and the stakeholderssentiments and respond in a proactive manner. I believe that the Union Social Responsibility (USR)

    activities being led primarily by the LGE labor union since January 2010 opens a new chapter in laborscommitment to society.

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    What is future direction for LG Electronics sustainability management? It is essential for LGE to get back to the basics to achieve sustainability management. To neglectconsistency and solely seek out the new and trendy is inconsistent with LGEs culture and businessphilosophy.

    We will continue to improve upon our competitiveness and conduct our activities based on the principleof building a sustainable company and harmonized community. At the same time, we will strive to

    promote a climate that values and respects LG Electronics Jeong -Do Management philosophy.