LG Electronics business models Group activity (1).pptx

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1. Introduction: LG Electronics formerly known as Lucky Goldstar , is a global electronics and telecommunication company headquartered in South Korea, founded by Koo In - hwoi  and managed by successive generations of his family .   LG makes Electronics, Chemicals, and Telecommunication products and operates subsidiaries such as LG Electronics,  Zeinth , LG Display, LG Uplus , LG Innotech , LG Chem , and LG Energy Solution in over 80 countries .

2. 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 . It is world’s Second largest manufacturer of television sets and third largest producer of mobile phones . LG is the market leader in various segments

3. Product: LG Electronics products include televisions, home theater systems, refrigerators, washing machines, computer monitors, wearable devices, solar modules, smart appliances and formerly smartphones . In 2001, it launched 45 new models across its entire product range and in 2002 it launched 60 new models. LG customized product for Indian markets. Before developing products, LG conducted market research to ensure that its products met local requirements...

4. Television: Launched an OLED TV in 2013 and 65 – inch and 77 – inch sizes in 2014. First Internet TV in 2007 was introduced, originally branded as Net Cast entertainment Access devices. They later renamed the 2011 Internet television to “LG Smart TV ”. Mobile Phones : LG Electronics used to manufacture mobile phones  from 1995 to 2021  selling to the domestic market only until 2000. It launched its highly popular LG Chocolate  in worldwide in 2006 which popularized touch-sensitivity. The following year it released the world's first capacitive touchscreen phone LG Prada , and   Shine, cementing its focus on design  its phones during this era . By 2008 LG had entered the top 3 worldwide leaders in mobile phones .

5. Home Appliances : LG manufactures  home appliances including refrigerators, washing machines, tumble dryers, vacuum cleaners, air conditioners and microwave ovens. In June 2014, LG Electronics announced the launch of its smart appliances with Home Chat messaging service in South Korea. Home Chat employs LINE, the mobile messenger app from Korean company ' Naver ', to let homeowners communicate, control, monitor and share content with LG's smart appliances. Users can send simple messages, such as "start washing cycle," in order to control their washing machines. In December 2021, LG Electronics announced they were testing and ecologically friendly washing machine that uses liquid carbon dioxide as a cleaner. The company will be conducting a two-year test prove the safety with a goal of having commercial CO 2  washers in shopping mall laundries. This new process creates no wastewater and will exhaust gas .

6. Place : Distribution Soon after its entry into India, LG realized that it needed to be innovative to capture the market. LG expanded throughout the country to far-flung towns and semi-urban markets. It sent vans across the country, covering a distance of 5000 km every month, to increase brand awareness among the trade and the customers...

7. Regional channel strategy and wide distribution network LG has adopted the regional distribution model in India. LG also follows the strategy of stock rotation, rather than dumping stocks on channel partners . LG has over 46 branch offices and another 110 area offices across the country.

8. Price : Initially, when LG entered the Indian market, its products were priced high. Thus, its products were priced as high as  Japanese products. However, in 1998, LG launched ' Sampoorna ,' a low priced TV aimed at rural consumers ...

9. 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. 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.

10. LG India Today : Today LG is one of the top rated electronics company in India, and its products are widely used by all sections of consumers in India. LG India’s annual turnover was10700 cr in 2008,which is an indication of tremendous growth of the company, since the day itwas launched.

11. Conclusion : LG has proved its mettle by providing its customer with value for money, along with maintaining and at times increasing its profit. LG is surely the perfect example for other MNC’s who want to set their foot in India

12. Special thanks to : Dr. Prof. Ashish Sharma Sir IPS Business School And Fellow Team Members : Nancy Soni Kanak Chouhan Sonali Sharma Keshav Sharma Harsh Kumar Saini