LG Corporation: History and SWOT Analysis
LG Corporation: History and SWOT Analysis
Gold star produced South Korea's first radio. Many consumer electronics were sold
under the brand name Gold Star, while some other household products were sold
under the brand name of Lucky. The Lucky brand was famous for its line of
hygiene products such as soaps and HiTi laundry detergents, but most associated
with its Lucky and Perioe toothpaste.
In 1995, to better compete in the Western market, the Lucky-Goldstar was renamed
"LG", the abbreviation of "Lucky-Goldstar". More recently, the company
associates the letters LG with the company tagline "Life's Good" This tagline came
from Australia, where many of the products are tested first by LG. Since 2009, LG
also owns the domain name [Link].
In 1996 LG formed a joint venture with [Link] joint venture was later
terminated. On 1 April 2000, LG Chemical was split into three separate companies,
namely LGCI, LG Chem and LG Household & Health Care. Later, in July 2007,
LG Chem merged with LG Petrochemical. Since 2001 LG has two joint ventures
with Royal Philips Electronics: LG Philips Display and [Link] LCD, but
Philips sold off its shares in late 2008. In 2005, LG entered into a joint venture
with Nortel Networks, creating LG-Nortel Co. Ltd.
LG has a joint venture with Hitachi, Hitachi-LG Data Storage, which makes
optical data
storage
writers,
etc.
LG
The Face of the Future: The meaning and inspiration behind LGs logo [Link] letters L
and G in a circle symbolize the world, future, youth, humanity, and technology. Our
philosophy is based on Humanity. Also, it represents LGs efforts to keep close relationships
with-our-customers-around-the-world.
Therefore, the shape or the color of this symbol must never be changed.
FACE
The stylized image of a smiling face is meant to convey company friendliness and
approachability. That the portrait is one-eyed conveys LGs profile as goal-oriented, focused, and
confident.
CIRCLE
The circle represents the globe, symbolizing the world and all of humanity, as well as youth and
the future
SHAPE
The upper-right corner of the LG logo, intentionally left blank, makes the design distinctly
asymmetrica nod to LGs creativity and adaptability to change.
HISTORY OF LG
The trajectory of LG Electronics, its growth and diversification, has always been
grounded in the company ethos of making our customers' lives ever better and
easier-happier, even-through increased functionality and fun.
Since its founding in 1958, LG Electronics has led the way to an ever-more
advanced digital era. Along the way, our constantly evolving technological
expertise has lent itself to many new products and applied technologies. Moving
forward into the 21st century, LG continues to on its path to becoming the finest
global electronics company, bar none.
VISION
Market
Leadership,
and
People
Leadership each
strength a key part of realizing our growth strategies for "fast innovation" and
"fastgrowth".
LG Electronics is pursuing the vision of becoming a true global digital leader,
attracting customers worldwide through its innovative products and design. The
companys goal is to rank among the top 3 consumer electronics and
telecommunications companies in the world by 2010. To achieve this, we have
embraced the idea of Great Company, Great People, recognizing that only great
people can create a great company.
SWOT ANALYSIS
SWOT is the tool to see that where organization stands, which areas required
improvement, which areas required serious consideration, which would be the
source of growth, which things need avoidance and so on. The SWOT of LG will
help to understand the position of LG in the market.
Strengths
LG showrooms products are reliable, easy to use, and have simple designs which
satisfy customers thats why LG have the advantage of having loyal customers.
In LG showrooms Corporation the research and development has given greater
importance because to satisfy the customers and provide the customers what they
want the research and development id required.
LG showrooms try to keep products innovative to attract the customers and to
capture more market share.
LG is at its growing stage and its growing quickly. It is producing solid products
which rapidly satisfying the customers.
Opportunities
Threats
As the competitors of LG are more dominant in the market and continuously
improving their products so they can take away the existing customers of LG
showrooms so it has to work very hard to retain and attract [Link] people
are facing difficulties in satisfying basic and needs so how they can spend on
electronics which is considered as luxury [Link] situation can affect the sales
of the company. electronic market.
AWARDS
As LG is declared one of the most awarded brand by all. Be it the critic, the market
or by you. At LG we believe each one of these awards truly belongs to you as they
are reflection of your trust & satisfaction, not to mention our stringent quality
control & process like 6 sigma to give you the best of the products that meets
global standards.
Award Name
Awarded By
Yea
A&M Magazine
r
199
A&M Magazine
8
199
9
199
Consumer
Company
Best Marketing Company
Most Ethieal MNC
A&M Magazine
9
199
Business World
9
199
9
200
Monitor
3rd Largest Exporter
ESC2001
0
200
Best Employer
1
Business Today/ Hewitt 200
Best Employer
Assts
1
Business Today/ Hewitt 200
Assts
Ernst & Young
2
200
2
200
Performance
No. 1Awareness Award.
3
200
Business Today
RESEARCH METHODOLOGY
RESEARCH DESIGN
(a)
(b)
Conclusive research
Exploratory research
A. CONCLUSIVE RESEARCH
(a)
(b)
Statistical method
Case study method
DATA COLLECTION:
The method used to collect the data is from primary sources. This
method is appropriate as compared to secondary data available looking
to objective of this research report. The method used to collect data is a
(A)
(B)
Primary data
Secondary data
(A)
Primary data:
(B)
Secondary data: These are the data which are already available
in the firm, company, internal needs & commercial trades &
private publication.
SAMPLE DESIGN:Sample size:- The present project has been completed taking 50
units in sagar city . He units taken completely reflects the total
class of people living in sagar city, it includes 5 retails shops.
Introduction of LG showrooms
It is a only one showrooms of sagar city.
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LG RERIGERATORS
These refrigerators are available at different capacities in the market as per the
requirements of our customers.
The lg refrigerators are available at different types of models in the market. These
products are very superior in their quality and are available at affordable prices in
the market. They are generally made up of stainless steel which makes their body
very strong and protective against different types of shocks. These refrigerators are
available in both one as well as in two door models. The important feature of these
products is that they dont get affected by corrosion because they have a great
tendency to resist against it. These refrigerators are available at different capacities
in the market as per the requirements of our customers
Washing machine:- We are offering the lg washing machine in vast range to our
customers. These products are available at affordable prices in the market. The
technologies present in them are very unique which deep cleaning and wash to our
clothes. These machines are very simple to use. They are available at different
designs and models in the market.
LG washer dryers
We are also offering the lg type washer dryers to our clients as per their
requirements. These washer dryers are very popular in all over the world. They are
available at superior quality in the market. The washer dryers are the kinds of
machines which are used for washing as well as drying up of the clothes. They are
available at different types of sizes and models in the market. Their body is also
made up of stainless steel which makes them very strong LG Washing Machine
We offer high quality semi automatic LG Washing Machine. Owing to features like
easy loading and unloading, easy installation and higher capacity, these are
appreciated among our clients heir looks and give high performance.
LG dish washers
The dish washers are available at different designs in the market as per the
requirements of our clients. Our company is also offering lg dish washers at
affordable good prices in the market. Their body is made up of stainless steel
which protects them against corrosion. These products are also available in
different capacities.
LG vacuum cleaners
We are also offering the LG vacuum cleaners to our clients. The important
advantage of vacuum cleaners is that they suck the dust or any useless material
present on the floor with the help of air pump and in this way cleans up that very
particular place. These vacuum cleaners are available at different models in the
market. There is the dust bag present in them which is used to store the dust or dirt
in large amount.
LG Air Conditioner
Air conditioners:- Air Conditioners are used for providing the cooling as well as
heating effect. The lg is also offering special types of lg conditioners. They are
available at superior quality material in them. The lg air conditioners are available
at different models and capacities in the market. The important advantage of these
air conditioners is that they consume the less electricity.
LCD TV
Lcd tv:- The lg is also offering the LCD (Liquid Crystal Display televisions) to our
clients as per their need. These products are available at different shapes and sizes
in the market. As per their price is concerned they are available at affordable
prices. They are more advanced then crt tv and are thinner and lighter than crt tvs.
Such very kinds of tvs are very attractive.
Plasma
Tv:-
We are also
offering the
lg
plasma tv's.
The
lg
tvs
are available
at
different
plasma
models
the
in
market. The
important
advantage of
these
products
is
that they are less bulky than other televisions that are why they are more and more
demanded in the market. The life time of these products is very long and is made
up of superior quality material.
MARKEYING STRATEGY
GROWTH STRATEGIES
Fast innovation calls for securing a competitive edge over the competition by
settingand meetingthe highest of goals in all realms of innovation, by at least
30%. This applies to new-product development and unveiling, innovation in design
and technologyas well as product sales,-market-share,-and-corporate-value.
Fast growth is the result of implementing strategies designed to swiftly expand
market size and earnings, with and eye toward monetary growth.
at products were available even in smaller towns and cities, breaking the chain of
urban dependency that plagues most white goods [Link] LG, a
nationwide launch meant just that. A penetrative distribution strategy ensured ther
cent the previous year. The industry average? Twenty-five to 30 percent. Add the
fact that the rural markets accounted for a remarkable 30 per cent of total sales and
it's clear that LG's strategy is working. "We push rural marketing," agrees Kim.
How does it do that? LG reaches into the hinterland through a pyramidal sales
structure. Branch offices in larger cities set up central area offices in smaller towns;
these in turn reach out to even smaller towns and villages through remote area
offices.
Each RAO has servicing, marketing and sales teams at its disposal and an
individual budget for marketing activities in its territory. The executive in charge
has independent decision-making powers -- he can decide the tenor and scale of
brand promotions in his area, without having to cross check every little detail from
the head office.
Technology, too, is being used to the hilt to ease their jobs. The RAOs and CAOs
are all electronically connected through a V-SAT and Intranet network.
And where earlier decisions about putting up large hoardings could be approved
only after a visit from the head office, LG has provided all its branch managers
digital cameras -- now they just click images of suitable locations and get them
approved [Link] and whistles
For customers, though, the direct approach is preferred. The advantage of an
extended distribution network is that marketing executives can keep a finger on the
pulse of the market. Promotions and finance schemes are designed to suit the needs
of local customers.
In a small town in Uttar Pradesh, for instance, last year LG offered select
households a free 15-day trial of a 50-inch flat screen television during the cricket
season. The TV set costs close to Rs 100,000, but several families took the bait and
considered buying the TV -- at which point the showroom staff offered them
carefully planned finance schemes.
Of course, it's not just the finance schemes that are tailormade. LG has been careful
right from the start to offer customers a "value-plus" proposition.
Explains KSA Technopak principal Harminder Sahni, "LG has always taken the
stand that 'We're selling the AC, not the remote. The remote comes as part of the
package.'" Which is why, he adds, the company does not qualify as a "budget"
models company. "LG does not sell no-frills product; it gives you all the bells and
whistles," Sahni says.
LG recognised the need to do that early on. Kim -- who's been with LG India since
1997 -- points to a basic characteristic of Indian consumers: "They are very price
sensitive. They want the best quality at reasonable prices." Accordingly, LG
introduced its economy range in the country, which Kim predicted would be
"easily accepted".
The company was ready to do battle on two flanks: it offered modern, featurespacked products, at the same time keeping its margins wafer-thin. Even
competitors accept the merit of the tactic.
"LG has been a price warrior while retaining its brand equity," points out Ajay
Kapila, vice president, sales and marketing, Electrolux India. "Our success is the
result of hard work and commitment. There's no miracle involved," says Kim.
The hard work was on the features, which were carefully chosen -- and adapted -to appeal to Indian audiences. For instance, Kim points out that consumers in city
of sagar prefer big sounds and big bass outputs.
Accordingly, LG showrooms sagar created Ballad, a flat screen television model
that sells only in the subcontinent and comes equipped with 2,000-watt speakers.
Similarly, refrigerators in sagar have smaller freezers and big vegetable
compartments -- sagarian prefer fresh food and a significant proportion are
vegetarian. Colours, too, are chosen keeping market preferences in mind. White
refrigerators, for instance, don't sell well in villagers area.
Other solutions are less elegant, but their relevance is undoubted. At LG, each TV
set on the line needs to be checked by switching on remote control.
Earlier, workers on the line would have to pick up the remote each time a set came
down the conveyor line. Now, they've created a small slot at the edge of the line for
the remote, which has been jigged so that the "on" button is always pressed.
Suggestions from workers on the shopfloor have not just helped improve
productivity -- the line target is to increase TV production from 2 sets to 4 a day,
within the next couple of months -- they've also helped in keeping costs down, says
Vipin Gupta, head of research.
Earlier, for instance, there were different packagings for 20" and 21" TV sets.
Since they're both nearly the same size, now the same size carton is used to pack
both types of TVs -- a sticker outside indicates the size and model.
showrooms and customer service head Sanjay Arora points out that workers at LG
are better placed to offer suggestions on product improvements because they're
encouraged to experience life outside the factory gates as well. Workers are
routinely sent to do sales stints at company showrooms and even to customers'
homes to service the products."This way workers on the line know what problems
the customers face and they also become more involved with innovations on the
line"
Welcome to LG Customer Service & Support
Get to know the ins and outs of your LG showrooms Product.
Owners manuals, repairs & parts, software updates, and warranty
information are given by [Link] by typing all or part of a model
name/number:
Browse for a Model by Product Type.
Warranty Claims
Find out if your LG Product is still under warranty by submitting or tracking
a claim.
Submit a Claim | Track a Claim Repairs & Parts.
LG can still provide expert repair service for most out-of-warranty products.
Out-of-Warranty Repair Options : Contact LG showrooms
Talk to our product support experts.
Send Us an Email
LG Electronics India Warranty Service .
Need to Make an enquiry or request a warranty repair?
:- Type in your model name or number to find the contact number or policy for
your product. You can also submit a request for Service through our Online
Module.
One Call Does it All
If you wish to request for a service, please contact a LG customer Service
Representative on 1800 180 9999 (Toll Free). The Call center are operational
on all days for 24 hrs.
LG provides warranty service through a Network of Authorised Service
Centers located across India. Please check on the Service locator screen to
track one near you.
Conclusion
Studying about the show rooms a lot of knowledge is acquired. What are the
brands and which companies offer what type of products is clearly known?
A lot of difference can be seen between sagar city and the villagers area proper
sagar city where more customized services are provided. Still there are several
hidden needs which the marketer has to identify in the show rooms product and has
to come up with new products in order to gain the market share and to satisfy the
customer on a great scale should bring new products which are of Refrigerators
and a great demand is for the new products which should be based on customer
[Link] and the entire family happy.
We wish all the best for its bright future.