LG MARKET ANALYSIS

SWOT Analysis
Strength
1. Wide range of products to serve all categories and a strong focus on technology and quality
2. Effective localization of product offerings for growth markets like India, Brazil, China
3. Brand offers sound rational appeal good product features and good value for money
4. Good after sales service and wide distribution network
5. Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the
local market
6. Sponsorship of sports and entertainment events enhances visibility
7. It has nearly 100,000 employees and is one of the top mobile manufacturers

Weakness
1. Brand lacks influence in the opinionated segment of early adopters especially in the social media
environment
2. Brand has limited market share compared to market leaders

Opportunity
1. Fast growth of home appliances, electronics goods market in emerging economies
2. Convert improved brand image and awareness in to market share
3. Increase the already Wide product portfolio

Threats

1. Price war with close Korean competitors like Samsung can disrupt growth in price sensitive markets
2. Highly competitive industry dynamics
3. Stagnant urban demand
4. Instances of false green claims can erode brand value and consumer trust

Market Leader in Refrigerators and Washing Machines

LG is currently the market leader in both washing machines and refrigerators as per Gfk-Nielsen. For
2012-13, LG is targeting a turnover of Rs. 5000 crore in refrigerator segment. LG will launch flagship
products across the home appliances category which will help in strengthening its product leadership.

LG has launched 33 new models in refrigerators. In televisions too, it is targeting the No 1 position in
the Flat Panel TV segment with a 30% market share.

MARKETING STRATEGY
The marketing objective of LGEI, aims to focus on the premium segment of the market that fetches
greater margin opposed to volumes. LG aims to utilize their core capabilities of product leadership,
market leadership and people leadership and enhance their corporate culture of team work and fun
workplace to achieve their mission of becoming " 2 by 10" that is, double our sales
volume and profit by year 2010. The company wants to capture 50% market share, by the end of
2010.
LGEI, aims is targeting a turnover of Rs.15,000 crore by this year and proposes to close the current
calendar year with a turnover of Rs.7,000 crore. The company has recorded a 119 per cent volume
growth in the flat TV segment during the period, 61 per cent in refrigerators, 21 per cent in washing
machines, 45 per cent in microwaves and 75 per cent in air conditioners. The company wants 13%
sales growth in each segment in this year as compared to last year.

THE MARKETING BACKGROUND WORKSHEET

SEGMENTATION
PEST Analysis
Political Factor: - High Import Duty Plants in tax- incentive areas like Greater Noida and Pune.
Export promotion schemes of the Indian Government like EPCG (Export Promotion Capital Goods
scheme) and EOU (Export Oriented Unit) status.
Economic factor: - Increase in per capita income Growing GDP High disposable income Increase
in spending power.
Socio-cultural factor: - They are manufacturing eco-friendly product. Increasing life style.
Technological factor: - Improvement in technology made the electronic product cheaper. Quality
of product has been increased.
LG has segmented its market on the basis of following:
Demographic
Income
Occupation
Geographic
Tier 1 cities
Tier 2 cities
Psychographic
Life style
Personality
Behavioral
Value

 Benefit sought

TARGETING
LG has targeted its market on the basis of the product that they are offering to the consumer. They
are targeting: Upper class segment Upper end they are targeting to those consumer who are more
concern of life style product. Their product is more of upper mid class and premium segment, so
their target audiences are those consumers, who want quality product as the best price.
They have LCD and Plasma Television and TV DIOS refrigerator for premium segment. They are also
targeting those consumers, who are more concern of safety and health issues. LG is now going to
shift over to mid class segment and want to mass market their product.

POSITIONING
With the tagline Lifes Good; LG positioning is to differentiate their products on the basis of
technology which appealed to the consumer on the basis of health benefits. With the tagline Lifes
good its corporate philosophy to make people lives better, convenient and healthier. Their
positioning strategies are technologically intelligent and futuristic. As they are in upper and premium
segment, so they are featuring that their brand is young, vibrant and premium. LG has differentiated
its product using technology and health benefits. The CTV range has Golden Eye Technology airconditioners have the Health Air System and Microwave ovens have the Health Wave System. They
are talking about the value and changing lifestyles in their positioning strategy.