Lg electronics india pvt

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distribution network of l.g

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Lg electronics india pvt

  1. 1. LG Electronics India Pvt. Ltd. A wholly owned subsidiary of LG Electronics, South Korea Established in January, 1997 State-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998
  2. 2. LG Electronics India Ltd. Established In : Jan 1997 Managing Director : Mr. Moon B. Shin Corporate Office : Plot no51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP) Corporate Website : http://www.lg.com Number of Employees: 3000+
  3. 3. Business Areas & Main ProductsHome Entertainment Plasma Display Panels, LCD TVs, LED LCD TVs, Colours TVs, Audios, Home Theatre System, DVD Recorder/Player, BluRay
  4. 4. 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 than dumping stocks on channel partners.
  5. 5.  LGhas over 46 branch offices and another 110 area offices across the country. LG had set a target of developing 2,000Dealers in 2004, in addition to the existing 3,000 dealers all over India.
  6. 6. CFA’s The number of C/F agents as of 31st May,2004 is 28. They are spread across 20 states in India. The company dispatches the goods to C/F on consignment basis. At the same time, these C/F agents all work on contract basis. They get paid as per the amount they stock.
  7. 7. DISTRIBUTORS The company appoints distributor for selective cities where the markets are small but require more focus and attention. The company sends goods to the distributor on outright sale basis. The distributor is given a margin of max 17.5% The distributor has to maintain his own sales, delivery and accounts people for smooth working of his unit and is served by the nearest C/F for all his requirements.
  8. 8. Delivery Schedule Takes 1 day for CFA’s to service reorder within their zone. Distributor too caters to the demand in his area within 48hours from the time of receiving the order. No inventory management system in place with the MBO’s(Multi brand outlet) LG Shoppe’ and franchisee showrooms do have a system in place to consolidate their inventory and sales with the company main office
  9. 9. Ordering

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