Story of how LG and Samsung overshadowed their Indian competitors like Godrej and Videocon. What the Korean brands did differently, their marketing strategies, business strategies,etc

1. How Korean brands
are increasing their market share against
local refrigerators
in India
- Paresh Tayade
PGDBM,SIMSREE

3. Indian refrigerator market
• Increased at a CAGR
of 20 percent from
2010 to 2016

4. Top refrigerator brands in India
1. LG - Korea
2. Samsung - Korea
3. Whirlpool - USA
4. Godrej - India
5. Videocon - India
6. Hitachi - Japan
7. Panasonic - Japan
8. Hairer - China
9. Sansui - Japan
10. Electrolux - Sweden
LG
31%
Samsung
26%
Whirlpoo
l
11%
Godrej
12%
Videocon
16%
Others
4%
Sales
LG Samsung Whirlpool Godrej Videocon Others

5. • Founded by Ardeshir Godrej and Pirojsha Burjorji Godrej in 1897
• First Company to manufacture refrigerator in India
• First refrigerator from Godrej entered the Indian market in 1958
• Largest player till 1990’s

6. • Founded by Venugopal Dhoot in 1979
• third largest picture tube manufacturer in the world
• The group is a US$5 billion global conglomerate
• Videocon has various brands such as Kenstar under its portfolio
• Started slow decline after Korean companies entered in India

7. • Lucky-GoldStar Corporation
• In 1998, LG established its first factory in Pune and later on the added
one more factory in Greater Noida
• Its core philosophy is “Life’s Good”
• Completed 20 years in India

8. • South Korean multinational conglomerate headquartered in
Samsung Town, Seoul
• Samsung's revenue is equal to 17% of South Korea's $1,082
billion GDP
• Samsung in India was started in 1995

9. “When the Korean brands were behaving like Indian companies, they
were doing very well. The minute control moved out of this country to
Korea, it’s all changing,” says a marketing head, who wishes to remain
anonymous

10. Aggressive advertising
• Samsung became the main sponsor for the India-Pakistan Series
• Use of Bollywood stars as brand ambassadors
• Building brand recall and increasing mind share

11. Striking the golden chord
<- High tech vs
Outdated ->
<- High price vs
Low price ->

12. Marketing philosophies
• LG kept margins very low and counted on volume to bring in revenues
• Samsung focused on creating a premium brand image
• “Customers would buy an LG product for their bedrooms but pick a
Sony or Samsung for their living rooms”
= Value for
Money
= Premium
brand

13. Innovation is the key
“These two companies leveraged
their global R&D facilities to
speedily bring in new products and
offered more variety at attractive
prices. LG followed this approach
better than Samsung, which is why
it is bigger than Samsung in India.”-
Pankaj Gupta, practice head TSMG

14. Understanding the customer need
• smaller freezers and large
vegetable compartments
• Many Indians are vegetarian
• Use the freezer mainly for
making ice only
• According to LG’s Shin, “One
reason LG is successful in India is
that we listen carefully to our
customers. We have realized that
not just localization, but micro-
localization, is required.”

15. What next?
• Customer retention
• Exchange offers
• Customer satisfaction
• After-sales services
• Samsung plans to double
the size of its plants

16. Future scope
• 25% (45 million) of rural households across the country still have no
electricity
• Indian refrigerator market is expected to reach as high as 3.6 billion
by 2020
• Rebranding, pushing the trade and distribution and focusing on R&D
may allow the local players to compete with the Korean giants

17. Thank you!
• https://www.linkedin.com/pulse/how-korean-brands-increasing-
market-share-against-local-paresh-tayade?trk=mp-reader-card