The document presents an overview of the fast-moving consumer durables (FMCD) sector in India, highlighting its projected growth in the electronics market, which is expected to reach $28 billion by 2020. It includes a market analysis showing key players and their market shares, as well as insights into competitive dynamics using frameworks like Porter's Five Forces and SWOT analysis. Additionally, it discusses LG Electronics' history, product offerings, and distribution strategies within the context of the Indian market.

1. PRESENTED BY:
Md Sadique Suleman
FINAL PRESENTATION SEM 2.2

2. 1 Agenda 2 3 4 5 6 7 98 10 11 12 13
Sector

3. .
1 Sector Information2 3 4 5 6 7 98 10 11 12 13
• The FMCD sector in India is emerging as one of
the largest sectors in the Indian economy
• By 2020, the electronics market in India is
expected to increase to US$ 28 billion from US$
100 billion in FY17
12.5
20.8
FY 16 2020 F
CAGR 10.5
Source: ibef.org

4. 1 Sector Information2 3 4 5 6 7 98 10 11 12 13
• India is one of the largest growing
electronics market in the world.
Source: ibef.org
100
228
FY 17 FY 20 F
CAGR 31.61
67
33
URBAN RURAL
Shares in the durables
market in India (FY16)

5. 1 Market Share2 3 4 5 6 7 98 10 11 12 13
21
20.8
13.6
11
4.5
22.7
6.4
SAMSUNG SONY VIDEOCON PANASONIC ONIDA LG OTHERS
Source: ibef.org

6. 1 Market Share2 3 4 5 6 7 98 10 11 12 13
Source: ibef.org
This segment makes up 31 per cent of the consumer appliances
market
VALUE $1.45 B
9 MILLIONS
UNITS
75
25
DIRECT COOL FROST FREE
MARKET SHARE
BY CATEGORY
CAGR 10%

7. 1
Company Snapshot
2 3 64 5 7 98 10 11 12 13
Founders
Source: lg-dfs.com
Koo In-Hwoii

8. 1 Porter’s Five2 3 54 6 7 98 10 11 12 13
Positive Impact
Neutral Impact
Negative Impact
 Product differentiation is
very low
 By changing the input,
firms cannot drastically
differentiate on price
Bargaining Power of Suppliers
Threat of Substitutes
 Technology
advancements
 Buyers have huge
propensity to substitute
 Continuous innovation
leads to intense rivalry
 Homogeneity in product
and low switching cost
Competitive Rivalry
 Highly capital intensive
 Major players have
developed brand
equity
 Brand loyalty is moderate
Threat of New Entrants
 Use of Internet to get all the
information enables
customers to be powerful
 Buyer’s switching cost is
very less
Bargaining Power of Buyers

9. 1 History2 3 4 5 6 8 1097 11 12 13
Lak hui changed
in to Goldstar.
1959
Produce Lak Hui
cream (cosmetic)
1947
Journey
Develops Lak Hui
dental cream
1954
Source: lgcorp.com
Develops first
Electric fan in
Korea
1961

10. 1 History2 3 4 5 6 7 98 10 11 12 13
Rebrand as
LG electronics
1995
First in the world
to market 84-inch
ULTRA HD TV
2012
Introduces
world’s first 4K
OLED TV
2014
LG’s vision is to
become the market
leading company
with broad market
recognition
Source: lgcorp.com
Develops world's
first LTE mobile
modem chip.
2008

11. 1 SWOT ANALYSIS2 3 4 5 6 7 98 10 11 12 13
S W O T
• Established brand
name
• Extensive distribution
system
• Diversified products
• Superior quality
• Lack of capabilities
to influence the
early adopters
• High prices
• LG declining
performance
in Korea
• Life – Style
• Grabbing the
market share
• Increase
Competition
• New
technology
• Emerging home
appliances sector

12. Product
Refrigerator
A/c
Mobile
TV
Price
Various price depends
on products feature
Place
Convenient for
customer
Distribution channels
Advertisement through
TV
Internet
Newspaper
Magazine
1 4 P’S2 3 4 5 6 7 98 10 11 12 13
Promotion

13. 1 MARKET SHARE2 3 4 5 6 7 98 10 11 12 14
CATEGORY NO. 2 PLAYER
MICROWAVE
OVENS
TV
REFRIGRATOR
WASHING
MACHINES
13

14. s
Factories Distributors
Multi
brand
retailers
Exclusive
showroom
OWN
ONLINE
PORTEL
Consumers
Company
Online market
1
Distribution
network
2 3 4 5 6 7 98 1110 12 13 14

15. 1 Production cycle2 3 4 5 6 7 98 1110 12 13 14