LG Electronics is the largest player in the consumer electronics market in India. However, it is not seen as a youthful brand. To address this, LG wants to reposition itself as a youthful brand and focus on new product categories like mobile phones and LCD TVs. LG realizes it needs to appeal more to higher-income consumers that have "moved up the value chain". It will focus on more premium products and targeting younger consumers through new advertising campaigns and products. LG believes strengthening its image as a contemporary, trendy brand can help it succeed in new categories and meet its goal of increasing its market share in India.
LG Corporation formerly Lucky-GoldStar is a South Korean multinational conglomerate corporation. It is the fourth-largest chaebol in South Korea. It is headquartered in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu, Seoul.LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Uplus and LG Chem in over 80 countries.
LG Corporation formerly Lucky-GoldStar is a South Korean multinational conglomerate corporation. It is the fourth-largest chaebol in South Korea. It is headquartered in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu, Seoul.LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Uplus and LG Chem in over 80 countries.
Sales and distribution management of Samsung and LG.Vijayant Khurana
This presentation is about Sales and Distribution Management of companies, inside this presentation sales and distribution management system of Samsung and Lg is depicted briefly.
This could help in understanding Sales and Distribution Management easily with brief definitions.
Lg electronics global strategy in emerging marketsSaurabh Arora
Lg electronics global strategy in emerging markets
LG Started off as a cosmetics company, gradually diversified and became an electronic equipment
Korea is a hub for electronics goods export
Foray of LG into emerging markets- Brazil, India, China, Russia
Setbacks in developed markets.
Changing Market conditions- Increasing competition.
What were the key strengths of the Korean electronics industry during the formative years?
How did firms leverage these advantages to enter developed-country markets?
To map brand performance of videocon brand and competition for colour televis...Supa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Sales and distribution management of Samsung and LG.Vijayant Khurana
This presentation is about Sales and Distribution Management of companies, inside this presentation sales and distribution management system of Samsung and Lg is depicted briefly.
This could help in understanding Sales and Distribution Management easily with brief definitions.
Lg electronics global strategy in emerging marketsSaurabh Arora
Lg electronics global strategy in emerging markets
LG Started off as a cosmetics company, gradually diversified and became an electronic equipment
Korea is a hub for electronics goods export
Foray of LG into emerging markets- Brazil, India, China, Russia
Setbacks in developed markets.
Changing Market conditions- Increasing competition.
What were the key strengths of the Korean electronics industry during the formative years?
How did firms leverage these advantages to enter developed-country markets?
To map brand performance of videocon brand and competition for colour televis...Supa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Advertising model has been developed over the decades to try to quantify, scale and understanding the process that is very much complex because the consumers mind is constantly changing and evolving. The report will review and place context to the adverting models that are widely known within the industry. These model will then be applied the Nestle brand KitKat to show how macro PESTEL influences effected advertising.
Well Malboro is one of the brand across the Globe which is covered in every subject as a case study. From the selection of logo, USP, tagline & how carefully the brand has expanded across the world with ease in such competitive market.
Marketing strategy of bikroy.com for creating competitive advantage Mobarok Hossain
This is basically done for my BBA research project. I have completed my BBA and MBA from university of Dhaka under marketing department.
Here i have shown how Bikroy.com create competitive advantage through their marketing strategy
CLA 1
Competitive Analysis
Marketing Management Part 2
Competitive Analysis
Competitive analysis is a technique for identifying competitors and evaluating their strategies to determine the strength and weakness of our brand. In this report, competitive analysis of the iPhone, a product of Apple Company, is presented compared to Samsung.
Samsung-As the Competitor
The Consumer electronics category is expanding day by day. The current leaders of this category are Samsung and Apple that hovers about 11% of the share in the market. Earlier, the market was ruled by Motorola and Nokia, but with the launch of the iPhone in 2007, the market was taken over by Apple . With its large multi-touch user interface, the product rapidly became popular among users. In 2013, the galaxy series was introduced by Samsung that gave high competition to Apple. With the massive advertisement and unique features, Samsung galaxy became the most popular brand in the world.
Objectives
iPhone
· Create groundbreaking products.
· Dictate and innovate technology movement.
· Global expansion
· Digitalization and technological innovation.
· Increase market share and profitability
· Brand recognition and development
Samsung
· Inspire customers via innovative products
· Lead innovation in technology
· Lead the mobile industry
· Inspire communities with products
· Gain profitability and market share.
Strategies
Samsung and Apple use different competitive strategies to dominate the market.
Apple uses the blue Ocean strategy. Apple created new demand in the market by utilizing the blue ocean strategy. Apple dominated the market with its flagship iPhones that blended art and technology . On the contrary, the Red Ocean strategy is used by Samsung. Samsung gained a competitive advantage by venturing into the market with a flood of smartphones developed at low prices within a short time. Apple takes a lot of time in launching a new iPhone as it relies on external suppliers. Samsung took advantage of this weakness and developed components for its Smartphone.
Strengths
Weaknesses
Competitive Analysis
Industry
The mobile phone industry is dominated by Apple and Samsung, accounting for 11% of the market share. iPhone accounted for 29% of the smartphone’s sale and Samsung to 37% of the smartphone sales by 2019. Apple's revenue in the year 2020 was $137.7 billion, with iPhone accounting for 50% of all the sales. Samsung sold 255.7 million units in the year 2020 and generated revenue of KRW 61.5 trillion. Galaxy S series accounts for 50% of all the sales.
Market
Samsung accounted for 21% of the market share, and Apple accounted for 49% of the market share in the US by the year 2020. Samsung has divided its market into segments, including demographic, geographical, psychological, and behavioral characteristics. Samsung penetrates deeply into regions, especially Asia. Most of the Samsung users are adults belonging to both genders. Samsung does not define its pro ...
Navin williams mobile_in_2015_mobile mr_vue_march_2015Navin Williams
Mobile Players Outlook in 2015 and Trends in Mobile MR.
- Review of key mobile players in 2013 and 2014.
- Current status and 2015 outlook.
- Evolution of Mobile, Wearables, etc
- Mobile MR and the coming trends
The Engauge 2011 Digital Innovation PlaybookEngauge
Featuring key takeaways for CMOs, creatives and technologists, this comprehensive guide to emerging digital platforms outlines best-in-class strategies for innovative campaigns that connect brands and people.
1. LG Electronics: Repositioning a Successful Brand
LG Electronics is the largest player in the consumer electronics market in India,
which is worth Rs 35,000 crore per annum. And now it feels the need to take the
brand to the next level. From an aggressive price warrior and technology
provider, the brand will henceforth be communicated as a youthful enabler of life
enrichment, and of value-added products.
For almost 10 years after it came to the country in 1997, LG had focused on the
mass market. Initially LG’s objective was to create a footprint among the sizeable
middle class, and other than its aggressive pricing, there was little to distinguish it
from other consumer durable companies operating in India. Its product range
choices also reflected the portfolio of its then rivals such as Whirlpool, Videocon,
and Onida.
Changing profile of Indian consumer durables market
The Indian consumer durables market of today is very different, redefined
primarily by the nimble Korean duo of LG and Samsung. Prior to their entry the
consumer durables market in India was largely characterized by restricted
product choice, very poor after-sales service, and distribution through limited
multi-brand outlets. By the time the new millennium came around, LG and
Samsung had started making their presence felt. Their priority was to establish
an exclusive chain of company-owned and franchised outlets where consumer
connect could be much more meaningful than in many of the poorly staffed multi-
brand outlets that existed then. The other area which they felt required urgent
attention was a service network which would not only ensure customer
satisfaction, convenience, good word-of-mouth, and a favourable disposition
towards repeat purchase, but could also become an additional source of revenue
for the company. Finally, unlike Onida, Whirlpool, and Videocon which then had
presence in limited product lines, the Korean companies expanded their product
range to cover both home appliances such as washing machines, refrigerators,
and microwave ovens as well as entertainment electronics such as music
systems, VCD/DVD players and television sets. They wanted to dominate the
entire chain of consumer durables for a household.
Though LG and Samsung were initially perceived as similar in their strategic
approach, the latter was much more interested in developing a higher-end
product range targeted at the more affluent consumer. Samsung’s vision in this
respect reflected a shrewd understanding of the changing profile of the growing
prosperity in the Indian consumer market. In fact, LG realized that a sizeable
chunk of consumers over the years had moved up the value chain — a space
well captured by rival brands like Samsung and Sony, which are also
aggressively competing for market share. This shows up in the fact that LG is
trailing Samsung in the LCD television market.
2. Mind over matter
Research carried out by AC Nielsen has shown, according to LG Electronics
Chief Marketing Officer LK Gupta, that people associate LG with quality and
reliability. “This is because of our wide presence in the country and our service
network. Most households have an LG product now,” adds he. However the
brand is not perceived as youthful and trendy.
Despite being the largest player in the consumer electronics market in India, LG
now feels the need to take the brand to the next level. So LG is making a
concerted effort to redefine itself as a youthful and up-market brand. Rivals like
Samsung, Sony and Videocon too have turned aggressive. And India is a key
element of LG’s global game plan. At the moment, India accounts for about 6 per
cent of LG’s worldwide turnover. LG Electronics India Managing Director M B
Shin wants to raise this to at least 10 per cent by 2012. By 2015, India will
become the second largest contributor to LG’s revenue after the US and ahead
of South Korea. It’s a tough challenge and the brand needs to keep the buzz
alive to meet it.
So far LG has been known in India for its home appliances and entertainment
electronics products, such as audio and video-based products. The product lines
where LG intends to make a big splash in India in 2010 are LCD televisions, and
in a departure from its past focus, for mobile phones. For the latter, being able to
appeal to youth will be a key determinant of success. LG’s advertising campaigns
and its recent products like the Jazz LCD TV sets and Chocolate mobile phones
reflect this thinking.
The right match
Shin admits that the average age of the LG consumer is above 30.The brand has
low appeal among youth. As far as mobile phones are concerned, youth are
attracted by music, gaming and file sharing options. LG’s lack of youth appeal is
reflected in its performance in the mobile handsets market. In 2009, LG was able
to increase its share from 4 per cent to 6 per cent in the GSM mobile phone
market. While Nokia’s share went up from 70 per cent to 71 per cent during the
period, Samsung doubled its share from 8 per cent to 16 per cent. All three were
helped by the fall in the share of Sony Ericsson and Motorola. But Shin thinks
that LG’s lack of contemporariness and up-market image is an issue that can be
addressed – the question is whether the market is willing to see it that way.
3. QUESTIONS
Q1. Based on the track record of LG Electronics to date, would you classify their
competitive strategy as that of a challenger or follower?
Q2. For consumer durable products do you feel customer retention strategies
have any value? In your assessment, has LG undertaking any such initiative,
based on information presented in the case?
Q3. Based on an assessment of its product portfolio so far, identify the factors
that could be responsible for LG not being perceived as a youth brand. LG
wishes to associate brand ambassadors with their communications campaigns
for their mobile phones. Suggest a suitable profile for youth-oriented brand
ambassadors in terms of occupation, age group and gender.
Q4. LG’s success in India so far has been based on its mass-market positioning,
in terms of pricing, and product range geared towards household products. How
successful do you feel it would be in attracting higher-end consumers for LCD TV
sets, and what are the marketing initiatives it needs to undertake in order to
make this happen?
Acknowledgement:
• The Strategist, Business Standard