Marketing Strategies of successful 5 MNCs in India


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This Marketing Project contains the strategies adopted by 5MNCs in India. Nokia, Samsumg, LG, Hyundai, P&G

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Marketing Strategies of successful 5 MNCs in India

  1. 1. MARKETING STRATEGIES OF ANSHUMANDUTTA RollNo.215111070,SUCCESSFUL MNCS IN 1yr MBA, 2011-13 INDIA An Analysis of the Pioneers
  2. 2. ContentsIntroduction…………………………………………………………………………………1Marketing Strategy………………………………………………………………………....2Nokia………………………………………………………………………………………...3Procter and Gamble………………………………………………………………………...4Samsung…………………………………………………………………………………......9Hyundai……………………………………………………………………………………...13LG……………………………………………………………………………………………16Conclusion…………………………………………………………………………………...17References…………………………………………………………………………..……….18 1
  3. 3. INTRODUCTIONWith developed world markets becoming increasingly saturated,multinational corporations(MNCs) have turned to emerging economies such as India, Indonesia, Brazil, China, andMexico,as key locations for future growth. In their efforts to enter these markets of the future,most MNCs have focused on the wealthy with products and business models similar to thoseused in the developed world (Arnold and Quelch, 1998;Prahalad and Lieberthal, 1998).Low-income markets in emerging economies present both tremendous opportunities andunique challenges. There can be little doubt that the four billion customers in these base-of-thepyramid markets represent a vast potentiallyuntapped market opportunity. Dawar and Chattopadhyay (2002) observed, it makes little sense for MNCs to think in terms of distinct ‘country strategies’ (e.g., China strategy) in the context of Emerging Markets. Instead, it might be more appropriate to develop separate strategies for wealthy, rising middle class, and poor customers across country markets (Hart and Milstein, 1999).The majority of the MNCs investing in India – about 53 percent– are focused on asingleactivity or product, while another 35 percent are diversified into relatedbusiness sectors.Thissuggests that only MNCs with clear business focusenter India, possibly with a well-definedbusiness strategy, whether seeking resources or markets. Economic development at the base of the economic pyramid may not follow familiar patterns found in the developed world (Arnold and Quelch, 1998; Hammond, 1998). As the Nobel prize winning economist Joseph Stiglitz suggests, the failure of the world’s global financial institutions in their efforts to facilitate economic development that is more inclusive demonstrates the dangers of relying on traditional players and their limited views of what is appropriate and effective (Stiglitz, 2002).The eight resources deemed most important for success by the MNC affiliates arebrand,business network, distribution network, equity, machinery and equipment,managerialcapability, marketing capability and technological know-how.Importantly, most of these areintangible resources. 2
  5. 5. NOKIA-Nokia is one of the largest mobile phone manufacturers in the world. While it is in a verystrong leadership position right now, the future of the company is in balance as the industrymatures.Headquartered in Finland, Nokia‘s business is divided into four divisions:  Nokia Mobile Phones  Nokia Networks  Nokia Ventures Organizations  Nokia Research CentreNokia brand is an asset that has been carefully cultivated over the years, throughout whichthe company has managed to predict and satisfy consumers‘ needs and preferences ahead thecompetition.In 1989, Matti Alahuhta developed a new strategy for Nokia that focused on three key points:  The development of a product with global appeal,  Nimble movement to sell it internationally,  Most importantly, a commitment to learning what consumers want, without consideration of the limits of existing technology In the highly competitive $3 billion mobile phone market in India, Nokia has managed to make its brand the phone of choice for millions. It currently has a market share of over 70 per cent.The Marketing Strategy of Nokia –[15] 4
  6. 6. MARKETING STRATEGIES  By 1990, Nokia identified some of the features that eventually establish it as the leader in setting industry benchmarks. The Nokia 2110 launched that year, gained popularity with a large screen, elegant design, and a clean user interface.  During the early 1990s, Frank Nuovo, head of Nokia‘s worldwide design team, led Nokia to design phones that offered customizable rings, elliptical designs, and custom faceplates. Although such features may appear trivial or obvious in hindsight, Nokia continued to gain market share by paying attention to the details that worked to enhance ease of use and customizable preferences.  The insight that the handset could be a stylish fashion accessory, rather than merely a communication tool, allowed Nokia to lead the trends and direction of the entire handset industry. In addition to a superior design effort, Nokia assembled a diverse team to research how consumers can use its phones. The team consisted of engineers, graphic designers, sociologists, psychologists, and even a theatre director. While they‘ve designed similar, easily recognized handsets, Nokia has successfully segmented the market to target specific demographic groups. For example, in the year 2000, different phones were marketed to appeal to the ―rugged‖ user, the ―sophisticated‖ user, and the youth market, among others.  With all these product innovations, designed to satisfy customer preferences, Nokia has reinforced its brand image of providing cutting-edge communications technology.  Analysts have positively characterized the company by describing it as ―young, sexy, sophisticated, hip and generally ‗with it.‘‖ 8 Alternatively, they‘ve compared Ericsson as an ―austere, conservative, middle-aged Swedish engineer,‖ which supports the widely held belief that Ericsson‘s handsetshare unfashionable.  Since Motorola lethargically moved from analog to digital phones, Nokia was able to overtake them as the leader in the handset. Subsequently, Nokia leveraged its superior marketing strategies and powerful brand to avoid the price wars that have afflicted its key competitors.  Nokia embarked on direct-to-consumer advertising, including sponsorships and product placements.  Nokia‘s handsetspositioned as ―stylish‖ and ―cutting edge,‖ customers will continue to pay for the perceivedadded value of the brand.  It also has strategically placed its products in movies such as The Matrix.  The youth market, the handset should add services with an emphasis on entertainment. For instance, MP3 players, short message services, chatting, and mobile gaming are some promising examples. Also for the youth market, careful attention should be paid to the design of the handset. Teenagers and young adults simply won‘t buy if the new handset does not look ―cool‖ or ―hip.‖ 5
  7. 7.  For professional users, Nokia should provide the ability to remotely access their data and files through the handset. Calendars, conference schedules, e-mails, PowerPoint presentations, spreadsheet, and word processing documents should be obtained with the touch of a button, at least in the corporate site, if not nationally. Due to the limited memory capacity available to handsets, Nokia should also provide the means to transfer information from the handset to a computer or PDA. Professional users are known to pay premium prices for convenience.FLOW CHART OF NOKIA’s MODEL FOR MARKET PENETRATION[15]With mobile handset penetrating through the mass market, it is becoming increasinglydifficult for handset makers to sell additional mobile phones and sustain growth. This is “Our firm opinion continues to be that the replacement will continue to grow and the share of replacements in the total market will grow,” MattiAlahuhta, president of Nokia’s mobile phone division.especially true for a market leader like Nokia. Nokia has fully recognized the potential of thereplacement market. 6
  8. 8. POCTER AND GAMBLE-P&G ranks #39 in the list of Fortune 500 companies [4], before its main competitor Johnson &Johnson (#57) and Kimberly-Clark (#142). P&G also outperforms Unilever and Nestle, thecompany‘s main competitors overseas.The P&G business dates back to the mid-1800s when it began as a soap and candle-makingcompany. The company started sponsoring radio programs — which became known as soapoperas — in the 1930s when radio was emerging a popular medium. The brand continued toproduce soap operas in the television era, including the now-defunct As the World Turns.OperationsAs of July 1, 2011, the companys operations are categorized into two "Global BusinessUnits" with each Global Business Unit divided into "Business Segments" according to thecompanys 2011 Annual Report. Dimitri Panayotopoulos is Vice Chairman of GlobalBusiness Units [2]. CEO Bob McDonald. Beauty segment Grooming segment Health Care segment Snacks & Pet Care segment Fabric Care & Home Care segment Baby Care & Family Home Care segmentThis is the second largest FMCG Company in India which does not lag much behind than thetopper Unilever. The company has two subsidiaries in India- P&G Home Products and P&GHygiene and Health Care Ltd. It is the fastest growing Fast Moving Consumer GoodsCompany of IndiaProcter & Gamble[5] (P&G) is the biggest maker of household products, with at least 250brands in six main categories: laundry and cleaning (detergents), paper goods (toilet paper),beauty care (cosmetics, shampoos), food and beverages (coffee, snacks), feminine care(sanitary towels) and health care (toothpaste, medicine). Two dozen of P&Gs brands in Indiaare billion-dollar sellers, including Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest,Downy, Gillette, Mach3, Iams, Olay, Pampers, Pantene, Tide, Gain, and Wella, amongothers. P&G purged its coffee in 2008 and its selling Pringles.Being the acquisitive type, with Clairol and Wella as notable conquests. P&Gs biggest buy incompany history was Gillette in 2005. 7
  9. 9. P&G‘s famous brands include Ariel, Pantene, Head & Shoulders, Fabreze, Sunny Delight,and Oil of Olaz. About half of P&Gs sales come from its top ten brands.P&G also makes pet food and PUR water filters and produces the soap operas Guiding Lightand As the World Turns. Finally, P&G produces chemicals. Today, P&G markets its productsto more than five billion consumers in 130 countries.The company has on-the-ground operations in over 70 countries around the world, andemploys more than 129,000 people.For fiscal year ending June, 2011Sales: $82,559.0M,One year growth: 4.6%,Net income: $11,797.0M, Income growth: (7.4%)Consumer products manufacturer Procter & Gamble Co. is said to be ending its 77-year runas a prominent sponsor and producer of soap operas — a genre the company helped create — “We continue to advertise during daytime TV including soap operas as a way to reach consumers,” a company spokesperson tells Mashable. “In our marketing approach we build our brands based on the appropriate integrated holistic marketing campaign that reaches the consumer when and where they are receptive. As consumers spend more time online and via social media networks, our brands are naturally adding these options to their marketing plans as it helps them engage and serve consumers.”in favor of producing more campaigns using social media.The switch from soap operas[8] to social media is one motivated by its success with previoussocial media campaigns — such as its Old Spice Guy YouTube promotion — and a desire tocapitalize on the more readily available opportunities of reaching women through digitalmedia.Principal Subsidiaries  Cosmopolitan Cosmetics GmbH (Germany);  The Folger Coffee Company; Giorgio Beverly Hills, Inc.;  The Iams Company;  Max Factor & Co.;  Noxell Corporation;  Olay Company, Inc.; P&G-Clairol, Inc.;  Procter & Gamble Pharmaceuticals, Inc.;  PUR Water Purification Products, Inc.;  Tambrands Inc.;  Vick International Corporation;  Vidal Sassoon Co.;  Procter & Gamble Australia Proprietary Limited;  Procter & Gamble Inc. (Canada);  Procter & Gamble France S.N.C.;  Wella AG (Germany); 8
  10. 10.  Procter & Gamble India Holdings, Inc.;  Procter & Gamble Italia, S.p.A. (Italy);  Procter & Gamble Nederland B.V. (Netherlands);  Procter & Gamble Switzerland SARL;  Procter & Gamble Limited (U.K.);  Thomas Hedley & Co. Limited (U.K.);  Yardley of London Ltd. (U.K.).Marketing Insights  P&G is one of the world‘s biggest advertisers [7]. Advertising Age estimate a 1999 media spend of $4.7bn [£3,3bn], of which around $3bn [£3,253bn] was outside the US, making it the worlds #2 advertiser. The company last year has spent nearly $9 billion per year to advertise its products. The company is finding social media sites such as Twitter, Facebook and YouTube to be more effective channels for reaching women and has spent much of 2010 experimenting with campaigns in these arenas.  Procter & Gamble India is one of the countrys leading advertisers, with a comparatively small portfolio of products led by Indias best-selling healthcare brand, Vicks (1951).  Gillettes Himalaya team, a global group based partly in Boston but focused on India, is already charged up. In India, about half of mens shaves are done in barbershops where barbers break double-sided blades in two and use them repeatedly. The teams razor-and-blade innovation, they report, involves simplification to the essential features to do the job, an affordable cost through manufacturing innovations, and new way to reach lower-income shavers. They preach health as well as grooming benefits.[3]  P&G invests heavily in innovation, outspends the competition in R&D, and targets emerging markets with growth potential. But to execute, P&G is redoubling emphasis on its culture and values.  Indian Ambassadors of Pocter and Gamble: Olay- Susmita Sen and Kajol Pantene- Lara Dutta, Shilpa Shetty Head & Shoulders- Kareena Kapoor, Preety Zinta  Wishper ―Money Back‖ – If the experience of the customer is not as per the perceived standards of the customer than the money will be refunded. 9
  11. 11. SAMSUNG-[16]Advertising: -Samsung is involved in aggressive marketing and advertising of its product to developattitudes, create awareness, and transmit information in order to gain a response from thetarget market.Their main advertising channels include media such as newspapers (local, national, free,trade), magazines and journals, television (local and national) cinema, outdoors advertising(such as posters, bus sides).The initial advertisements communicated presence of Samsung in worldwide markets and itsdominance in those markets.To increase its brand awareness, Samsung went in for celebrity endorsements. Initially, thecompany signed Hindi film actress, Tabu, to endorse its brand. Till 2002, Samsung‘s adsfocused on the technological supremacy of its products.But by late 2002, in addition to the technology plank, the company started advertising on theplank of ‗passion for country‘ and sports (cricket and football). Its latest ambassador is JohnAbraham for its mobile phone and Rahul Dravid for its Television range. 10
  12. 12. Promotion:-Offering advanced technology products and positioning itself on the technology platform willnot help a company sell its products if it fails to communicate properly with the potentialcustomers. To raise brand awareness and create strong, favorable and unique brandassociations, Samsung adopted various marketing strategies like celebrity endorsements,corporate advertisements, highlighting its technological superior goods and manypromotional schemes.Sales Promotion:Along with advertisements, Samsung also focuses on promotional schemes to increase itssales. In October 2001, Samsung launched its highly successful promotional scheme, theSamsung Phod keDekhoOffer. This offer instantly boosted the sales of the companygenerating sales of Rs. 2.75 bn from this offer.The next major promotional campaign was the Phir Se Phod Ke Dekho offer. The offer waslaunched during October-November 2002 generating a sales of Rs. 380 crores. It was a repeatof the earlier ‗Phod Ke Dekho‟ campaign.On March 20, 2003 Samsung Launched Samsung Rang De Kismat Offer for Frost FreeRefrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores, with the purchaseof any Samsung Frost free Refrigerator. This Promotion derives its name from the Rang deKismat glass, which was handed over to a customer with the purchase of any Samsung FrostFree Refrigerator.Following its success with its Samsung Rang De Kismat Offer Samsung India come upwith another innovative Consumer Offer ―Samsungs Bundling Offer with RelianceIndiaMobile” for the buyers of its Consumer Electronics and Home Appliance Products inthe Delhi and NCR Region on 25 July, 2003. 11
  13. 13. On 6 October 2003 Samsung India Electronics Ltd launched its mega festival promotioncalled „Samsung Pinning Toh Winning Offer‟ on an all India basis.Following its success with its „Samsung Pinning Toh Winning Offer‟ Samsung IndiaElectronics Ltd launched ‗The $-DOLLAR Program‟ for its IT Reseller and SystemIntegrator fraternity on June9, 2004.The last sales promotion offer was launched on Feb 3, 2005 called “Fastest Finger First”which was a nationwide contest to find India‘s fastest SMSer. The message to be typed readsas follows: ―The razor-toothed piranhas of the genera Serrasalmus and Pygocentrus are themost ferocious freshwater fish in the world. In reality they seldom attack a human". ThisSMS had to be typed on the cellphone keypad, complete with punctuation marks and lower &upper case. No predictive text (T9 Dictionary), QWERTY keyboards/ any keyboard wasallowed.Sponsorship:-Samsung used sponsorship of events like Olympic series to boost its sales. Samsung was theglobal wireless communications sponsors at the Athens Olympics. Samsung used the strategyof relating itself directly with the values of the Olympic games, which included attributes likeworld class, global, excellence, fair competition and peace. The Olympic series of August5,2004 was Samsung‘s salute to the Olympic values.Samsung was the sponsor of Lakme India Fashion Week held on April21, 2005. TeamSamsung cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag launched the World‘sBest Handset, Samsung D500 during the Samsung Show at the Lakme India Fashion Week.The theme for the Samsung Show was ‗The Best Thing Says Everything‘ in keeping with thepositioning of Samsung D500 - Samsung‘s latest and path-breaking mobile phone which hasbeen rated as the ‗World‘s Best Mobile phone‘ by the 3GSM Association World Congressheld at Cannes in February 2005.Samsung sponsored Samsung & MTV Youth Icon 2005 on June10, 2005. The idea behindthe sponsorship was that the Samsung Mobiles were targeted at the fun loving, lifestyleoriented and trendy youth of today. By associating with the Samsung & MTV Youth Icon,they are seeking to further strengthen their relationship with the youth. Samsung mobilesmake a style statement and by partnering with the Youth Icon, this positioning is further re-inforced.Samsung was even the sponsor of Samsung IIFA Awards held on June 13, 2005. Popularfilm actress, Preity Zinta was awarded the ‗Samsung Diva‘ award while Hrithik Roshan wasconferred the prestigious ‗Samsung Style Icon‘ award at the Samsung IIFA Awards 2005.Samsung India had carried out an online voting process on the Samsung India websitebetween May 20th - June 5th 2005 for selecting the recipient of the ‗Samsung Style Icon‘ and‗Samsung Diva‘ awards.The same was also promoted extensively on other sites like and as well.The Company received a phenomenal response to this online voting contest. “The „SamsungStyle Icon‟ and „Samsung Diva‟ awards which have been growing in popularity year on year,the company uses the response level received every year as its popularity indicator. 12
  14. 14. Direct Mail:-Samsung even uses Direct Mail concept for its product promotion. Samsung sends mail totarget consumers depending on the database i.e. the frequency of site visit and on theirpurchases. Samsung is very actively involved in e- commerce.Distribution Channels:-Samsung uses supply chain to enhance differentiation, increase sales and penetrate newmarkets and channels. Its supply chain is beneficial in several ways. It helps the company todeliver products to the customer faster. It efficient supply chain is transparent, so that all theplayers in the supply chain have the right information at the right time about the movement ofthe products within the chain. This means lower inventories, elimination of waste, andreductions of costs. In addition to the intangible benefits like quick feedback from customershelp in launching new products.Samsung has 24 state-level distribution offices and a direct dealer interface. The direct dealerinterface helps the company to get quick feedback from dealers, and enables it to launchproducts according to consumer needs.Shop-in-shop:-Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brandoutlets, as the focus there is to create a shop-in-shop atmosphere.The Exclusive Showrooms:Keeping its target customer to display Samsung products in a more lifestyle ambience and tocommunicate the product benefits in a more interactive manner, Samsung India has set up awidespread network of over 80 exclusive showrooms comprising Samsung Digital Zone(focusing on high-end digital audio-video products such as MP3 players, camcorders andLCD/plasma TVs).The Samsung DigitAllhome goes beyond the concept of a Digital Plaza or a Brand Shopbecause in the DigitalAllhome, they are trying to create a more interactive environment andproviding a more lifestyle orientation to the display, so that the customer can visualize theproducts in his/her own home settings. The Company plans to supplement its existingSamsung Digital Plazas (Brand Shops) by setting up Samsung DigitAllhomes in selectcities. The Company will also be creating exclusive Samsung corners in multibrand outletsthis year.The demands and needs within the distribution channel lead to the establishment The site is more than an ordinary selling site, infact it is an industryportal that allows the business partner to come in and track the relevant industry informationwithin the channel, meaning minimizing the inventory overhead.Samsung is also planning to invest over $1 million in setting up a chain of exclusive outletscalled `Samsung Talkies. The entire Samsung mobile range including the latest handsets willbe displayed at the outlets, which will be set up in more than 10 cities across India, includingBangalore, Mumbai and Hyderabad. 13
  15. 15. HYUNDAIHyundai, with a name prone to mispronunciation and virtually no global heritage, enteredIndia in 1998, it signed up Shah Rukh Khan to educate the consumers about the brand.Behind the scenes, the company resorted to extensive market studies and technical campsbefore coming up with its first offering, Santro, a hatchback with tall boy design. And it hadchosen its market well, starting with the small car. Untill yet, Hyundai has stayed true to itsstrategy and played by the conventional Indian market rules tailored to suit its specifictargets.Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai MotorCompany, South Korea and is the second largest and the fastest growing car manufacturer inIndia. HMIL presently markets 20 variants of passenger cars in six segments. The Santro andPa in the B segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment,the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in theSUV segment.Hyundai Motor India, continuing its tradition of being the fastest growing passenger carmanufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, anincrease of 18.5 % over CY 2005. In the domestic market it clocked a growth of 19.1 % ascompared to 2005, with 186,174 units, while overseas sales grew by 17.4 %, with exports of113,339m units.HMIL‘s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of themost advanced production, quality and testing capabilities in the country. In continuation ofits investment in providing the Indian customer global technology, HMIL is setting up itssecond plant, which will produce an additional 300,000 units per annum, raising HMIL‘stotal production capacity to 600,000 units per annum by end of 2007.Hyundai, which chose to enter the Indian market, with a small car (Santro) which offers valuefor money to the countrys price sensitive consumers. Hyundai has also made very heavyinvestments in manufacturing facilities. After its initial success, Hyundai has started to widenits product range.Hyundai is one of the few MNCs to have established meaningful volumes in India in quicktime. The company is among the top three car manufacturers in the country and is nowemerging as a real threat to the market leader, Maruti in which Suzuki of Japan has a majorstake.There are many lessons to be learnt from Hyundai. The company spent several monthscustomizing Santro. Realising that Indian consumers attach much importance to lifetimeownership costs, Hyundai reduced the engine output of the Santro to keep its fuel efficiencyhigh, priced its spare parts reasonably, and made various changes to the productspecifications to suit Indian market conditions. 14
  16. 16. In contrast, other global automakers have entered the market with vehicles with low gasmileage and high repair rates and after-sales service costs. Unlike many of the global automanufacturers in India which source only about 60 to 70 percent of their components locally,Hyundai buys 90 percent. Hyundai has also plans to make India a global manufacturing hubthat can serve other countries as the local market matures. Contrast Hyundai with players likeHonda and Ford who have been very tentative about setting up full-fledged manufacturingfacilities.Marketing CommunicationsBy integrating all messages in all media reinforce the brand name is reinforced& main pointsof product differentiation.Research about media consumption, pattern will helped advertising agency to chooseappropriate media and timing to reach prospects before & during the product introduction.Thereafter, advertising appeared on a pulsing basis to maintain brand awareness andcommunicate various differentiation messages.The agencies will also co-ordinate public relation efforts to build Hyundai brand & supportthe differentiation message.To attract market attention & encourage purchasing, limited time, registration & insurancewere offeredTo attract, retain & motivate channel partners for a push strategy, trade sales promotions andpersonal selling to channel partner were used.PromotionRoad ShowsThe company plans to stage road shows, to display vehicles in the pavilions during variouscollege festivals and exhibition.Television advertisementsAdvertisements to promote and market the product will be shown on leading televisionchannels. Major music and sports channels will promote and they will reach out to the youthwill be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.RadioRadio is the medium with the widest coverage. Studies have recently shown high levels ofexposure to radio broadcasting both within urban and rural areas, whether or not listenersactually own a set. Many people listen to other peoples radios or hear them in public places.So radio announcements will be made and advertisements will be announced on the radioabout the product features and price, qualities, etc. 15
  17. 17. Print AdsDaily advertisements in leading newspapers and magazines will be used to promote theproduct. Leaflets at the initial stage will be distributed at railway stations, malls, college areasand various other locations.Workshops and SeminarsWorkshops and seminars were held in colleges and big corporate to make people aware aboutthe companies past performance and product features, its affordability and usage, vastdistribution network. Road shows will be conducted where free trials of the car would begiven.Banners, neon signsHoardings, banners, neon signs were displayed at clubs, discs, outside theatres and shops topromote our brand car.Booklets and pamphletsBooklets will be kept at car showrooms, retail battery outlets, etc for the customer to read.These booklets will provide information about our company; the products offered which suitsthe customers need accordingly.Offers and Discounts[17]Hyundai Motor India Ltd (HMIL) have announced a discount of Rs 33,000 along with otherbenefits like free insurance and exchange bonus. Under the scheme, all Santro GL (Solid)purchases would get a special price of Rs 2.99 lakh. Santro non AC and Santro GLS will beeligible to get free insurance as well as car accessories worth Rs 7,000 and Rs 15,000respectively. "The schemes announced will provide our customers with an attractive value for money and with the prevailing economic conditions, this should provide an impetus for our sales and offset a part of the ownership cost which has gone up considerably in the past few months."- HMIL Senior Vice President (Marketing & Sales) ArvindSaxenaBesides, consumers would be offered exchange benefits up to Rs 20,000 on all Hyundai cars.Also, a loyalty scheme has been announced whereinthe the existing Hyundai customers canavail the loyalty discounts up to Rs 20,000 on purchase of new Hyundai Getz (petrol), Accent(GLE) and Verna (Petrol and Diesel). 16
  18. 18. LGEstablished in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LGElectronics, South Korea. It is one of the leading companies in consumer electronics, homeappliances and computer peripherals in India. It has a turnover of almost US$ 1000 million inIndia.LGEI‘s salesare increasing with a CAGR of 40 per cent over the past five years.LG is the market leader in various segments like colour TVs, microwave ovens, frost-freerefrigerators, 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.LG Electronics India received the Occupational Health & Safety Management SystemOHSAS18001:1999 certifications from the British Standards Institution (BSI), India, for asystematic approach towards Occupational Health and Safety Management System.LGEI exported goods and services worth US$ 40 million in 2003. The major export marketsfor LGEI are the Middle East, West Africa and Central Asia.Leveraging India’s IT advantage  LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT- enabled services for LG Electronics‘ 60 overseas subsidiaries and manufacturing facilities worldwide.  LGSI has offices in San Jose, London and Seoul with over 300 professionals in the development facility at Bangalore. All its offices are networked for swifter communication and decision making.Marketing strategiesTo make itself a known brand in the consumer electronics sector, LG has taken innovativemarketing and promotional initiatives:  Launch of new technologies in consumer electronics and home appliances.  Its product designs are centred on the middle & upper class and the ads screened highlight 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. 17
  19. 19.  LG‘s corporate image is that of being the Digital leader of the new millennium.  LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup, and followed it up in 2003 as well.  LG brought in four captains of the Indian cricket team to endorse its products.  LG invested more than USS 8 million on advertising and marketing in this sport.  LG has differentiated its products using technology and health benefits. The CTV range has ‗Golden Eye‘ technology, air-conditioners have the ‗Health Air System‘ and microwave ovens have Product localisationProduct localisation strategy- used by LG  LG came out with Hindi and regional language menus on its TV.  Introduced the low-priced ―Cineplus‖ and ―Sampoorna‖ range for the rural markets.  LG was the first brand to introduce gaming in CTVs. In continuation of its association with cricket, LG introduced the cricket game in CTVs.  Regional channel strategy and wide distribution network.  LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rotation of stocks, and better penetration into the B, C, and D class markets.  LG also follows the strategy of stock rotation, rather ‗Health Wave System‘ than dumping stocks on channel partners.  LG has a positive perception of India and the Indian consumer. LG is making a foray into the e-commerce market in India and has partnered with various local websites like,,, and www.indiaplaza.comConclusionThe above experiences clearly bring home the point that success in the Indian market dependscrucially on commitment.This implies a willingness to set up a fully owned subsidiary as opposed to a joint venture, infull-fledged manufacturing facilities as opposed to the assembly of completely knocked downkits, in a widespread distribution network as opposed to a limited presence in the major citiesand in customised products as opposed to standard offerings from the parent companysproduct range.It also implies an ability to work patiently within the constraints of the local regulatoryframework. Commitment must be backed by flexibility. MNCs must keep fine-tuning theirstrategy till they have a winning formula in place. It is MNCs which show both commitmentand flexibility that are most likely to succeed in India. 18
  20. 20. References[1]Market Entry Strategies: Pioneers Versus Late Arrivals:By Gurumurthy Kalyanaram andRagu Gurumurthy[2][3]Inside Procter & Gambles New Values-Based Strategy- By Rosabeth Moss Kanter[4] Hoover‘s Business Information, date viewed: 04/10/01)[5] (source: P&G, date viewed:05/10/01)[6] Journal of International Business Studies, 1–21 elite at the top of the economic pyramid[7] (source: Mind Advertising, date viewed: 05/10/01) (source: Mind Advertising, date viewed: 22/10/01)[8] A comment by G.W. Goodale on the book titled ‗Soap Opera, the inside story of P&G, byAlesia Swasy.[9] (source: Fast Company, theMagazine, August 2001 issue, date viewed: 22/10/01)[10] (source: United BusinessMedia, date viewed: 10/10/01)[11] (source: Fast Company, theMagazine, August 2001 issue, date viewed: 22/10/01)[12] ‗Plan Global, Win Local‘, by John Millen, Vice President, Customer BusinessDevelopment at Procter & Gamble (, source: Kamcity,date viewed: 22/10/01) 19
  21. 21. [14] MNCs in India By A V VedpuriswarAsst. Vice President (Knowledge Management), SatyamComputer Services.[15] Business Intelligence Concepts- Nokia v/s Motorola by Arend, Ricardo and Helmi,pp28,31[16] The Management Strategy of Samsung in East Asia-Lee Soo Chul, Executive VicePresident, Samsung Corporation-November 26, 2003[17] by Malini Ranade on Sat, 12/06/2008 - 16:06. 20