All you need to know about LG's TV market and environment.

1. LG Life’s Good
(Television)
GROUP - 10
Gagandeep kaur
Kashish Garg
Manvi
Gokul
Kamal Taliyan
Mayank Patidar

2. TABLEOFCONTENTS
02
05
03
06
01
04
OVERVIEW OBJECTIVE OF
PROJECT
PRODUCT &
PROMOTION
STP’s &
PRICE
COMPETITIVE
ANALYSIS
OBSERVATION &
RECOMMENDATION

3. OVERVIEW
● LG founded by Koo In-hwoi CEO-Koo Kwang-mo
● LG is a global leader and technology innovator in
consumer electronics, mobile communications and
home appliances.
● It is one of the world’s leading producers of TVs .
● Its corporate philosophy is revolving around product
innovation, heavy investment in R&D and to offer a
better life to people.

4. OVERVIEW
● LG commands 25% share of
the Indian Television
Market and the target is to
jump to 27% by the year
ended 2021.
● It has 15% market share in
the emerging smart TV market
which is dominated by
Chinese smartphone giant
Xiaomi.
● It dominates with over 70%
market share in OLED
Source: economic times

5. OBJECTIVEOFPROJECT
● To have a deep insight about the company’s
marketing mix
● To analyse the company against its competitors
● To find the gaps, if any and come up with
recommendations

6. STP’s
• Segmentation-
Geographical- Rural and Urban
Demographic- Income and Generation
Behavioural-User status, Hardcore loyal
• Targeting-
Lower middle-class, upper middle-class, rich class.
Existing users and potential users.
• Positioning-
“Life’s Good”

7. LGandCompetitorSWOT
LG
ELECTRONICS
SAMSUNG
GROUP
SONY
CORPORATION
STRENGTHS
After sale service
Strong focus on technology &
quality
Brand recognition & awareness
Price range
Innovative products
Pioneer in its field (70yrs)
Brand image in multiple
geographies
WEAKNESSES
Comes behind samsung
Lack of proper demand
forecasting.
Issues regarding patents (Apple) Expensive
No longer a market leader in its
own categories
OPPORTUNITIES
Improved brand image
Social media visibility
Advancements with AI features
Adopting newer technology
Presence among youth
(Playstation)
THREATS
Price war with Korean
competitors
Highly competitive industry
Stagnant urban demand
Price war
Product failure
Counterfeit goods

8. PRODUCT
Level of Product-
Core Benefits- Television provides the core benefit of
entertainment without leaving your homes
(Infotainment).
Actual Product- The actual product is television itself.
Types-
• LED TV
• Smart TV
• UHD 4k TV
• Nanocell 4k TV
• OLED TV

9. PRODUCT
Augmented Product- Extra services provided by the
company
1. Extended warranty
2. AMC offerings
3.Swap services to B2B customer(In-Warranty product)
Product Classification
LG televisions is classified under the Heterogeneous
shopping goods because-
Before buying a TV, a customer will look at-
1. All different brands, products and product features.
2. Compare the costing of each brand.

10. PRODUCTATTRIBUTES
Product Quality
● LG PV modules are built on an automated production line in
order to maintain the utmost precision in quality.
● In 2017 LG has received the recognition from Eurofins Digital
Testing, the world's leading quality assurance organization for
its OLED and UHD TV lineup.
● Since 1996, LG Electronics has been pushing 6-sigma
innovation campaigns .
Unique Features
● WebOs
● Incredible range of sizes(18 inches to 82 inches)
● IPS panel

11. PRODUCTDESIGN
● LG always pioneer in product design and technology
since 1966. LG was always the first to introduce new
design and technology in the TV market.
1. World’s first Computerized color TV (1979)
2. World’s first TV with CD player (1993)
3. World’s first 60``PDP TV(2001)
4. World’s first HDR LCD Projection TV(2003)
5. World’s first 42`` PDP TV with 5000.1 contrast(2004)
6. World’s full LED 3D TV(2010)
7. World’s first curved OLED TV(2013)
Source(www.lg.com)

12. PRODUCTLOGO
● LG focused on creating strong and differentiated brand
identity. Its connection with humanity is visible in the
smiling and delighted human face at the center.

13. PROMOTION
● One effective way of promotion is Advertisement .
LG is accustomed to inviting famous stars to advertise its
merchandise.
1. Yuvraj Singh(2004)
2. Akshay Kumar( 2010 )

14. CONSUMERPROMOTION
1. Cash Refunds- 12.5% cash back on credit cards HDFC and ICICI.
2. Sweepstakes- Win for sure during festive season from 500 – 1000.
3. Coupons- 20% cashback on Paytm.
4. Premiums- Dongle of reliance free on normal and smart LED(During
Diwali).
5. Festive Schemes- Wedding Festival- Rs 53960
Trade Sales Promotion
1. All Promotions are company sponsored.
2. Distributors get (1- 2%) commission on bulk buying.
3. Use slotting allowances to get the product in the stores and shelves

15. PRICE
• LG has adopted the competitive pricing strategy as well
as cost plus fixed mark up strategy.
• Its price for TVs ranges from Rs.10,990 – Rs.32,99,990.
TV Type Lowest Price Highest Price
LED TVs 10,990 39,990
SMART TV 28,990 53,990
UHD 4k TV 58,990 2,69,990
Nanocell 4K TV 1,60,990 8,99,990
OLED TV 3,14,990 32,99,990

16. MARGIN
● Distributor’s Margin- Approximately 4%.
● Retailer’s Margin- Approximately 11%.
○ The price of televisions varies size-wise also.
E.g.- Difference in price of Smart TV of 43 inches and 32 inches
is of 20,000 (approx)
● GST Rates-
○ Up to 32 inches- 18%
○ 43 & 43+ inches- 28%

17. DISTRIBUTIONCHANNEL
Company
office
LG area
office
Distributor
Exclusive single-
brand retailer
Exclusive multi-
brand retailer

18. TVMarketScenarioinIndia
Companies with competitive
prices in the size range are the
most successful. (LG, Sony,
Samsung, Panasonic)
Price war
32 & 43 inches TVs
32 inch TVs followed by 43
inch TVs are the most popular
sizes for sale in India.
New entrance
Xiaomi is the new entrant in
this market segment with very
competitive prices.

19. COMPETITIVEANALYSIS
Features LG Electronics Samsung Sony
No. of Products 41 51 42
Price Range
upper 3,299,950 2,702,991 2,801,145
lower 10,990 2,200 14,990
Presence
e-commerce YES YES YES
retail outlets YES YES YES
Promotion ongoing Wedding package NO
Sony Days 2019 year
end promotion(1nov-
5jan)
Size (display)
upper 86 105 85
lower 18 32 24
Market Share 25% 27% 18%
LED YES NO YES
SMART TV YES YES YES
UHD 4k YES YES YES
Nanocell 4k YES NO NO
OLED YES YES YES

20. COMPETITIVEANALYSIS
LG
ELECTRONICS
SAMSUNG
GROUP
SONY
CORPORATION
CATEGORY
Consumer Electronics & Mobile
Phones
Consumer Electronics & Mobile
Phones
Consumer Electronics, Mobile
Phones & Entertainment
SEGMENT
Mobile Communications, Home
Entertainment, Home
Appliances, Air Conditioning &
Solution
Mobile Phones & home
Appliances seeking market
People looking for Electronics,
Mobile & Music
TARGET
Consumer Durables:mass
market, shifting towards
premium segment
Almost everyone who wants to
buy phone & appliances
Young Demographic/Tech Savvy/
People with high disposable
income
POSITION
Technology that offers you more Best phones and appliances for
every need and price range
Premium & High Quality products
manufacturer

21. OBSERVATIONSANDGAPS
• The swapping charges of credit cards is 2-3% which is
charged on the revenue of distributors and retailers.
• On an average, there has been a 30% decrease in
retailer’s sales due to online platforms.
• Even though there is slowdown in the economy but it has
not impacted the sales.
• The company hikes targets by 20% every year.
• GST Rates- Reduction in prices

22. RECOMMENDATIONS
• The company should provide cash back in form of Paytm
wallet money rather than coupons.
• The company should bear the swapping cost of credit
cards.
• Targets should be decided in accordance with the market
and business condition.
• Balanced strategies for online stores and distributors
• The credit period kept for distributors should be flexible.