This project provides a comprehensive overview of Marketing Strategy by LG India, positioning, and performance in the Indian consumer electronics market. It leverages industry data, corporate information, primary research, and news articles to analyze LG India’s strategic approach across segments like home appliances, televisions, smartphones and IT products. Students can further build on the analysis by conducting additional primary and secondary research on Marketing Strategy by LG India and providing recommendations.
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Company Background
LG is a South Korean multinational conglomerate that entered India in 1997 and soon established local manufacturing facilities in 1998 with investments over $500 million. LG India currently has a diverse product portfolio spanning home appliances, TVs, laptops, smartphones, air conditioners, washing machines and more. Its India headquarters along with manufacturing plants are located at Greater Noida.
Marketing Strategy by LG India
Brand Strategy
LG outlines its mission to provide utmost customer satisfaction through product leadership and innovation. It lists core brand values of trust, innovation, people-centricity and passion. The signature conveys LG’s philosophy around the future, youth, humanity and technology. LG positions itself strongly on product innovation, reliability, health benefits and environmental-friendliness. This serves as a unique selling proposition.
Target Consumer Segments
LG targets a wide spectrum of consumer segments across urban and rural areas in different income brackets. The key segments would include – 1) Premium customers focused on cutting-edge technology and design. 2) Middle income customers needing feature-rich and durable products. 3) First-time customers in rural markets requiring basic yet affordable options. 4) Youth and working professionals focused on lifestyle products like smartphones or laptops.
Product Strategy and Portfolio Expansion
LG frequently launches newer models in India across various categories while incorporating India-specific enhancements in functionality, design or technology. Some examples include Golden Eye TVs, Flatteron refrigerators and Sampoorna – an affordable TV for rural customers. LG has a product range with depth and width to cater to diverse consumer needs and preferences across price points. Recently the focus has shifted more towards the premium end of the spectrum with sub-brands like Whisen, Dios and X Canvas. LG also continues to tap opportunities in expanding into newer segments like air purifiers, sound systems, IoT devices and built-in kitchen appliances.
Pricing Approach and Discounting Policy
When LG had newly entered India, it positioned products in the premium segment with imported models, competing directly with the likes of Sony and Samsung. However, within 2-3 years, it made strategic shifts by establishing local factories and launching products specifically designed ground-up for the Indian consumer such as the Sampoorna TV. This helped launch feature-rich and durable products at significantly lower price points to target mass market adoption. LG rarely resorts to discounts or exchange schemes, and follows an honest pricing policy to communicate true product value. But it does provide discounts around major festivals and sales events to stay competitive.
Promotions Mix – Traditional and Digital Marketing
LG employs a robust marketing communications mix encompassing television, print and radio advertising across languages, city-specific promotions, local retail engagements, sponsorships like ICC Cricket World Cup, digital and social media engagement, convenient purchase financing schemes and dealer/distribution partner incentives.
Marketing activities are highly synchronized to seasonal demand such as higher ACs in summer or TVs near Diwali. Campaigns are tailored basis media consumption habits across urban and rural regions. LG strives to deliver relevant, impactful and consistent messaging around the latest product propositions. Recently digital platforms are also being leveraged significantly for promotions.
Distribution Network Management and Service Infrastructure
An extensive distribution network of over 3,000 dealers and 110 regional offices aids deeper penetration nationally including Tier 2/3 cities. Stock rotation ensures optimum product availability and reduced working capital needs for channel partners. To improve service quality and customer perception, LG entered agreements with ITIs to train over 10,000 personnel dedicated to after-sales support. Workshops encourage frontline staff to directly engage with consumers to obtain product feedback. Additional schemes like used goods exchange makes upgrades convenient.
Recent Strategic Repositioning
While LG built critical mass in India on strong product quality and pricing, recent strategies are reorienting it as an innovation leader in the premium category competing with the likes of Sony, Samsung and Apple. Significant investments in R&D and marketing aim to inspire consumers to upgrade and build loyalty for LG’s premium range of innovative products with cutting-edge technologies which align with evolving lifestyle needs rather than just functional benefits. This repositioning also differentiates LG strongly from emerging competitors.
SWOT Analysis
– Strengths: Brand equity, technological innovation, pricing flexibility
– Weaknesses: Lagging behind Samsung in market share
– Opportunities: Increasing disposable incomes, availability of credit, nuclearization of families, growing rural demand, product diversification
– Threats: Slowing consumer sentiment recently, high inflation, intense competition
Recommendations for Students
Students can enrich this project by conducting more primary and secondary research across the following areas:
– Management interviews to gain insights on brand strategy, positioning, growth roadmap
– Consumer surveys and focus group discussions to analyze purchase drivers, brand perceptions and satisfaction levels
– Detailed sales data analysis for market performance, growth trends and forecasts
– Distribution partner interviews to assess challenges, support provided, and relationship
– Competitor analysis across products and marketing communication
– News article analysis to identify response to recent LG campaigns
They can then apply marketing frameworks like SWOT analysis, PEST analysis, Porter’s 5 Forces model and STP framework to do an in-depth assessment of India’s consumer durables industry and LG’s standing. Based on the integrated analysis, recommendations can be provided to LG India for consolidating leadership across different product categories nationally over the next 3-5 years. Suggestions around branding, targeting potential consumer groups, new product introductions, strategic partnerships, supply chain improvements, digital innovation and breakthrough advertising campaigns can be shared.
– Expert interviews to determine outlook on sector growth and disruption
