1. LG BRAND
The company was originally established in 1958 as Goldstar, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The L.G group was a merger of two Korean companies Lucky and Goldstar.
LG is the second largest producer of television and third largest producer of
mobile phones.
BUSINESS DIVISIONS
FACTORS FOR SUCCESS
REGIONAL CHANNEL STRATEGY AND WIDE DISTRIBUTION
NETWORK
LG has adopted the regional distribution model. 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.
2. INNOVATIVE MARKETING STRATEGIES
To make itself a known brand in the consumer electronics sector, LG has taken
innovative marketing and promotional initiatives:
Launch of new technologies in consumer electronics and home appliances.
LG has differentiated its products using technology and health benefits.
LOCAL AND EFFICIENT MANUFACTURING TO REDUCE COST
To overcome high import duties, LG manufactures PC monitors and
refrigerators.
LGEIL is implementing a “digital manufacturing system” (DMS) as a cost-
cutting innovation.
PRODUCT LOCALISATION
Product localization is a key strategy used by LG.
LG came out with Hindi and regional language menus on its TV.
R&D POTENTIAL
LG has set up research and development Facilities.
CORPORATE SOCIAL RESPONSIBILITY
Global Take-Back Policy
Guidance on the Disposal of End-of-Life Products.
Recycled Plastic Applications.
CONSUMER PERCEPTION ABOUT THE
BRAND
Many customers are not aware about the LG brand whenever they want to buy
branded electronics in shopping mall they think company increase price over there but
They goes to buy same thing in a local market branded outlet they think company
decrease product MRP at local market store. This is wrong and negative perception
about the brand. Those person who’s have good knowledge about the brand they never
create this type of thinking in his/her mind. What is the reason behind the negative
perception about the brand, and why they are doing this, because they believe that
person who’s create wrong marketing for branded goods. I think company never make
brand, customer make brand because if customer are fully satisfy for any product and
using day by day so definitely one day product become a brand.
3. FACTORSTHAT HELP TO DRAW ATTENTION
ABOUT LG
Those important factors are follow whichaffecting consumer Attention:
Color’s
Marketing Techniques
Advertisement technique
Punch Line
Product Design
Service Quality
Price
Reputation
Product Packaging etc.
Mainly company use effective color on their product advertising and packaging like as
blue, red, orange, black white combination, pink, green etc. because color’s are useful
for easily identify company name and information.
E.g. - Pink identify-LG, Red identify –Vodafone Blue identify- Facebook, Air
travelling comp. sky etc.
Price
Price has a complex effect on consumer perception. Consumers appreciate a bargain
and are often likely to favor an economically-priced item.
Quality
The actual quality of a product is a vital part of a consumer's perception of a good or
service. Quality can describe any attribute in a set of characteristics that satisfy or
disappoint a consumer, including usability, reliability and durability.
Service Quality
Even in the case of goods that exhibit numerous flaws, excellent service quality can
often overshadow a negative experience with the product itself. If a consumer feels
that he receives exceptional attention when encountering a problem with a product,
that consumer is somewhat more likely to trust the brand or product knowing that the
manufacturer or retailer provides a prompt and effective response to problems.
Packaging and Branding
Packaging and branding have a huge effect on consumer perceptions, particularly at
the point of purchase. Especially when consumers are purchasing a type of product for
the first time, the way the product is presented can wholly determine their perception
of the item.
4. Reputation
A product's reputation is built up over time and is usually a combination of actual
experience with the product, word-of-mouth recommendations and marketing
campaigns that attempt to establish a status or shared view of the product or brand.
PERCEPTUAL POSITIONING
Many dimensions can establishthe LG brand’s positioninthe marketplace:
Lifestyle Competitors
Price Leadership Occasions
Attributes Users
Product Class Quality
WHY CUSTOMER GIVE VALUE FOR BRAND?
Because LG brand give, value, trust, loyalty and passion. Brand is a name which
identifies company goods and service, and brand knows very well customer income
value. So that’s why customer will use branded product and service.
Nowadays so many local brand works in the market. They increase their product MRP
at offer time, and give low quality product. And also create wrong perception in the
customer mind. They do work only for money even they sales copy brand, that’s why
some customer put on his/ her mind wrong perception about the brand.
CONCLUSION
LG is to become a worldwide leader in digital that ensures customer satisfaction
through innovative products and superior services. LG wants to create value for
customers, respect human dignity, become well in its field. Because Only Consumer
perception will provide positive and negative view about products & services, and at
present time every company does work over the consumer behavior. Because 21th
centaury industry has to set smart marketing and innovative technology in the market
then they will survive. Because customers need and competitors increase day by day.
Here company has to leave his old and traditional marketing techniques and they have
to use new marketing and selling techniques. Because customer wants everyday new
product which is make all thing easy and fast.
