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PRESENTED BY:
Md Sadique Suleman
FINAL PRESENTATION SEM 2.2
1 Agenda 2 3 4 5 6 7 98 10 11 12 13
Sector
.
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
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)
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
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%
1
Company Snapshot
2 3 64 5 7 98 10 11 12 13
Founders
Source: lg-dfs.com
Koo In-Hwoii
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
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
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
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
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
1 MARKET SHARE2 3 4 5 6 7 98 10 11 12 14
CATEGORY NO. 2 PLAYER
MICROWAVE
OVENS
TV
REFRIGRATOR
WASHING
MACHINES
13
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
1 Production cycle2 3 4 5 6 7 98 1110 12 13 14
LG ELECTRONICS (REFRIGERATOR SEGMENT)

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LG ELECTRONICS (REFRIGERATOR SEGMENT)

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