Introduction

Business competition is getting tougher year after year due to increasing globalization and the
progress of technology. The world has now become a one huge market where you can buy and
sell products all around it. Many companies try to properly satisfy their customers in order to
sell their products. They focus on this because a satisfied customer is a loyal customer who
will continue to buy the product from the same company hence increasing the company sales
and revenue. That is companies have to sell their products effectively in order to get the
necessary financial resource. Financial resource can be used to develop new products so
companies can survive in competitive market and also expand their business. Marketing
activities plays a very crucial role in helping companies sell their product.

Philip Kotler states that “Marketing is the process of planning and executing the conception,
pricing, promotions, and distribution of goods, services, and ideas to create exchanges with
target groups that satisfy customer and organizational objectives”. Marketing activities can
help companies to sell their products at the right time, the right place, the right price, and also
appropriate with customer needs. Marketer’s fundamental aim is to satisfy and forge good
relationship with their customers (Kotler 1994, pp.13-14).

Price:

Below is the pricing strategy in LG marketing strategy:

LG company aims to target a lot of segments of people. They thus have a wide variety of
product which crater to the needs of the people. The products by LG are priced from low to
high ends. They are based keeping in mind the pocket size of the customers. For mobiles there
are products which are priced low and these LG phones subsequently have low features. The
refrigerators are priced at various prices also. The same is the case with LG air conditioners.
The cooling tons justify the amount one needs to pay for the same. The Television is a landmark
for the LG company. It ventured into a lot of types of variety and the price of the following
was fixed according to the features and the demand of the customers. Thus, from the pricing
strategy in the marketing mix of LG, we see that more prices are set by the company based on
their global competition.
LG Electronics has high import duty.

LG Electronics import 42-inch PDP (plasma TV) from Korean and sell those into other
countries. The problem is the high price after the import duty and freight cost. In order to
overcome high import duty, LG Electronics builds a local production plan for plasma TV. The
only way to avoid the high import duty, the local production has made been possible.

Economic factors.

Marketers need to consider the state of a trading economy in the short and long term especially
when planning for international marketing (PEST Analysis, 2010).

Singapore has small interest rate which Singapore benchmark interest rate stands at 0.06%. The
rate is official interest rate which banks lend to one another (Singapore Interest Rate, 2010).
This interest rate should be considered by LG in order to state of a trading economy in the short
and long term.

Singapore has small inflation rate about 1% inflation rate. This inflation rate will effect on the
standard level of purchasing power. LG should consider this inflation level in order to set up
pricing strategy, identify purchasing power of LG consumer, etc.

Strategy applied, price cuts help LG India post 11% sales growth (Economic Times)

LG Electronics returned to a double-digit sales expansion after it slipped to low single-digit

growth the year before and posting flat growth for the previous few years.

By Writankar Mukherjee, ET Bureau| Updated: Nov 27, 2018, 10.48 AM IST

The country’s largest consumer electronics maker, LG Electronics India, reported 11% sales
growth last fiscal year, even as the white goods market grappled with a slowdown in demand
post demonetisation. Industry executives cited decentralisation of sales and price cuts in pro
ducts like television among the reasons for LG’s performance.

As per latest filings made by the company to the Registrar of Companies, the South Korean
major posted sales of Rs 16,132.3 crore in India for the year through March 2017, compared
with Rs 14,498.1crore the year before. In contrast, the industry growth rate slipped to 4-5% in
fiscal 2016-17 as sales were hit in the months following the demonetisation announcement in
November 2016.

With this, LG Electronics returned to a double-digit sales expansion after it slipped to low
single-digit growth the year before and posting flat growth for the previous few years. As per
two senior industry executives, LG India’s current managing director, Kim Ki Wan, who joined
in mid-2015, had made several changes which paid dividends last year. “Kim gave a lot of
autonomy to the sales staff, right from the branch level to the shop floor which allowed them
to take quick decisions and be aggressive,” said a senior industry executive.

Of course, sales had slowed down after demonetisation at LG as well, but till Diwali last year
there was high double-digit growth so overall it managed to report one of the best performances
in the industry,” said a senior industry executive. Another executive said LG had adopted an
aggressive pricing strategy on some products like LED TV and air-conditioners, where it
wanted to gain the top slot in the Indian market.

LG India spokesperson said the company had strengthened its share in the LED TV segment
by introducing latest technologies like OLED, while in home appliances it had further
improved its market leadership by offering technologies like smart inverter compressor in
refrigerators and twin-wash in washing machine. He said during demonetisation, the company
had introduced attractive EMI offers, which helped push sales.