Product Mix With Example Of LG

Presented By :-

Introduction LG Corporation formerly Lucky Goldstar

Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG Electronics, South Korea. It is one of the leading companies in consumer electronics, home appliances and computer peripherals in India.

LG is the market leader in various segments like colour TVs, microwave ovens, frost-free refrigerators, washing machines and air-conditioners, with market shares of 26.2 per cent, 41.2 per cent, 37.9 per cent, 34.1 per cent and 34 per cent respectively.

The marketing is the management process responsible for IDENTIFYING ,ANTICIPATING and SATISFYING customer requirements profitably

MARKETING

5

PRODUCT The bundle of utilities or the physical and

psychological satisfaction that the buyer receives is provided by the seller when he sells a particular product.

Philiphs Kotler defines product as:“A product is anything that can be offered to a

market for attention, acquisition use or consumption that might satisfy a want or a need.”

A bundle of utilities consisting of various product features and accompanying services.

Product Life Cycle

Layers of product

8

PRODUCT MIX

Product mix is a combination of products manufactured or traded by the same business house to reinforce their presence in the market, increase market share and increase the turnover for more profitability. Normally the product mix is within the synergy of other products for a medium size organization. However large groups of Industries may have diversified products within core competency. Videocon, L.G, are some examples.

9

Dimensions of product mix Number of products: The amount of products

that is produced by a particular company. Range of product: A complete portfolio of

products that a company manufactures and/or markets.

Type of product: A group of items within a product line that share one of several possible forms of the product.

Product consistency: It refers to how closely related the various product lines are in end use, product requirements, distribution channels.

10

LG ELECTRONICS

11

Headquarters of lg

Greater Noida,Delhi

12

LG A RENOWNED BRAND A Global electronics and Telecommunications

company. Second largest electronics manufacturer. Third largest appliance in the world. Worlds second largest manufacturer of television

sets and third largest producer of mobile phones. LG group is the merger of LUCKY and GOLDSTAR,

two Korean companies. By 2005, LG was among top 100 global brands and

in 2006, LG recorded a brand growth of 14%. LG’s display is now the worlds largest plasma panel

manufacturer.

13

LG’s PRODUCT LINE

Since its initial years in India, LG has focused on bringing out new models regularly in its product range. In its first year of operation in India, LG launched 70 models across a range of products. In 1997, it introduced its Golden Eye Technology TV, which had a light sensitive natural algorithm ‘eye’.

The ‘eye’ responded to the changes in lightening in the room, accordingly and adjusted colour sharpness, brightness, contrasting and balance them automatically.

Thus, LG showed that it cared for customer health through its products. LG’s concern for health of customers was its unique selling proposition(USP) in the Indian consumer durable market.

14

DIMENSION OF PRODUCT MIX

LG operates its business through 6 divisions. These are also the product width of LG Electronics. These are:

1. Home appliances2. Mobile communications3. Home entertainment4. Computer products5. Air conditioning6. Business solutions The items that comes in the product width is the

product line.

15

PRODUCT MIX OF LG ELECTRONICS

Home appliances: The home appliances make products like refrigerators and washing machines. The various home appliances are:-

1. Side by side refrigerator2. Double door refrigerator3. Single door refrigerator4. Washer dryer combos5. Front load washing machine 6. Top load washing machine 7. Semi automatic washing machine 8. Dish washer9. Microwave oven10. Vacuum cleaner 11. Air purifier12. Water purifier

16

Mobile communications: LG mobile devices are made for GSM as well as for CDMA networks

worldwide. The various mobiles are:-

1. Smart phones2. Touch phones3. Multi media phones4. Dual sim phones5. Basic phones6. All types of mobile phones

17

Home entertainment: The home entertainment makes products like TV’s, DVD Players etc. For example:-

1. LCD TV2. Plasma TV3. Color TV 4. Music system5. DVD Player6. LED LCD TV7. Blue Ray Players8. Home Theater System9. USB Memory10. DVD Records11. MP3 Players

18

Computer products: LG provides following computer products:-

1. Desktop2. Flat panel monitors3. LCD monitors4. Projector5. Optical media6. Notebook Air conditioning: The various types of ACs are:-1. Split AC2. Window AC3. Cassette AC4. Ducted AC

COMMERCIAL

PRODUCT RANGE

21

FACTORS INFLUENCING PRODUCT MIX OF LG ELECTRONICS

Changes in demand of product. Change in purchasing power or behavior of the customers. Change in company targets. The competitor’s actions and reactions. Development of by-products at low cost. Spare marketing capacity. Financial influences of the firm. Goodwill of the firm. Advertising and distribution factors. Possibility of adding new product to its product line at less

cost.

22

CONCLUSION

Managing the product mix for a company is very demanding and requires constant attention. Top management must provide accurate and timely analysis of their company’s product mix so the appropriate adjustments can be made to the product line and individual product.