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.
2. BRAND HISTORY & SERVICES
LG Corporation formerly Lucky-Gold Star is a South
Korean multinational conglomerate corporation
It is the fourth-largest in South Korea. It is
headquartered in the LG Twin Towers building
in Yeouido-dong Yeongdeungpo-gu Seoul. LG Corp.
established as Lak-Hui Chemical Industrial Corp. in 1947
In 1952, Lak-Hui (pronounced "Lucky", currently LG
Chem) became the first Korean company to enter
the plastics industry. As the company expanded its
plastic business, it established GoldStar Co. Ltd.
(currently LG Electronics Inc.)
In 1958, both companies Lucky and GoldStar merged
and formed Lucky-GoldStar
In 1995, to compete better in the Western market, the
Lucky-GoldStar Corporation was renamed "LG". The
company also associates the letters LG with the
company's tagline "Life's Good“
Abhay Deol, John Abraham & Genelia D`Souza are its
brand ambasaddors
3. Products of LG
Category Main Products
Consumer Electronics LCD TV, Plasma Display,
Display panel, Color
Television, Home Theatre
system, Music System, DVD
Recorder Player, MP3 and MP4
player
Home Appliances Room Air Conditioner,
Refrigerator Air Conditioner,
Washing Machine, Dishwasher,
Microwave, Vacuum Cleaner
Computer Products Laptop, Personal Computer,
LCD monitor, CRT monitor,
Optical Storage Devices
Mobile Phone Premium Trend setter phone,
Camera phone, Music Phone,
Color Screen GSM Handset
4. STP of Brand
LG aims to utilize their core capabilities of product
leadership, market leadership and people leadership
and enhance their corporate culture of team work and
fun workplace to achieve their mission of becoming
"e; 2 by 10" that is, double our sales volume
and profit by year 2010. The company wants to capture
50% market share, by the end of 2010
LGEI, aims is targeting a turnover of Rs.15,000 crore
by this year and proposes to close the current calendar
year with a turnover of Rs.7,000 crore. The company
has recorded a 119 per cent volume growth in the flat
TV segment during the period, 61 per cent in
refrigerators, 21 per cent in washing machines, 45 per
cent in microwaves and 75 per cent in air conditioners.
The company wants 13% sales growth in each
segment in this year as compared to last year
5. STP of Brand
Serial No. Key Considerations Questions
1) Product Descriptions Home Appliances
2) Market Assessment There are some global
players in market like
Samsung, Videocon,
Sony, Philips, BPL etc
3) Source of Business LG business comes
from metros, tier-ii
cities and tier-iii cities
4) Competitive evaluation Samsung positioned
itself as a brand which
offers freshness and
technologically strong
5) Marketing Objectives Focus on innovation to
attract more
technology savvy
consumers and the
company is aspiring
for innovating
6. PEST Analysis of the Brand
Political Factor: - High Import Duty Plants in tax- incentive
areas like Greater Noida and Pune. Export promotion
schemes of the Indian Government like EPCG (Export
Promotion Capital Goods scheme) and EOU (Export Oriented
Unit) status
Economic factor: - Increase in per capita income Growing
GDP High disposable income Increase in spending power
Socio-cultural factor: - They are manufacturing eco-friendly
product. Increasing life style
Technological factor: - Improvement in technology made the
electronic product cheaper. Quality of product has been
increased
7. SWOT Analysis of LG
Strength:
a) Market leader in home appliances segment.
b) Manufacturing unit in tax incentive areas.
c) Wide range of product categories to tap the consumer
of upper middle class, middle class and high class.
d) LG having the widest distribution network in the
industry (47 branches, 175 area offices, and over
10,000 trade partners)
e) Shifting to the rural market.
Weakness: Consumer compare only LG with Samsung
and not with any other brand
8. SWOT Analysis of LG
Opportunities:
a) Shifting to rural market
b) Control over the white goods market, as we
know the highest market share in home
appliance market.
Threats:
a)The closest competitor of LG is Samsung
which is also from south Korea.
b) Price war with closest competitors Samsung
c) Competitors from Indian Brands and new
entrants
9. International Tie-Ups
Since 2001, LG had two joint ventures with Royal Philips
Electronics LG Philips Display and LG Philips LCD
In 2005, LG entered into a joint venture with Nortel
Networks creating LG-Nortel Co. Ltd
On 30 November 2012, comScore released a report of
the October 2012 U.S. Mobile Subscriber Market Share
that found LG lost its place as second in the U.S. mobile
market share to Apple Inc
On 20 January 2013, Counterpoint Research announced
that LG has overtaken Apple to become second largest in
U.S. market share
On 7 August 2013, comScore released a report of the
June 2013 U.S. Smartphone Subscriber Market Share that
found LG fell to fifth place in the U.S mobile market share
10. Advertising done by LG
The Strategy of the company can be understood to be
need based which recognized the need of maintaining
`Good Health` while using the various consumer
electronic goods
On a large scale, the advertisers of LG`s products
promote the consciousness of health factor for various
machines including Ac `s which were until then
considered as cooling devices only)
Advertising for LG’s refrigerators with concepts like
‘Frost Free’, ‘PNsystem’ and ‘Multiplus’ etc. And for CTV
with concept of ‘Protection of eyes’ from contrast of
TV screens
11. Advertisements by LG
The Advertising Agency made responsible for advertising
campaign of LG is LOWE-LINTAS, which is among the top three
advertising agencies of the country.
The amount spent on advertising in the first year i.e. 1997 was
14 crores which was subsequently raised in the year 1998, 2000
and 2001 to 32, 70 & 85 crores (approx) respectively.
In the year 2000, about 3.5% to 4% of the total turnover was
invested upon advertising campaign (i.e. 70-75 crores approx). In
the current year about 80 to 100 crores will be spent upon
advertising with a share of over 4% of the total projected
turnover.
Out of the total share for advertising about 70% is spent on pure
advertising and about 30% on various events, exhibitions, etc. As
far as various media for advertisements are concerned, about
60% are spent on Print and about 40% on broadcasting media.
12. Advertisements by LG
LG sponsored cricket world cup and also started its own
LG cup in sept. 1999 and had been sponsoring cricket
events since then for publicity & promotion. During
the Indo-Pak series it has announced new scheme
`Khelega Kya` through different Media
Print Advertising of LG: Advertising for `Door and Cooling
Refrigerators` was a direct hit because of its unique
concepts and effective protrayal. The punch line aired
various models of electronics also cast a good repo for
the products
Some of the like are:
a) ``The purest way of breath``
b) ``For cool healthy air``
c) ``Enjoy a wrinkle free view of the new millenium``
13. Public relation campaign
Campaign Strategies: Strategies by definition tell what LG
electronics set out to do in order to accomplish all of their
PR objectives; They are:
a) Employee Strategies: Employees in North America division
acknowledge training completion via proof of certificate and
testing results to show knowledge of superior customer
service.
b) Retailers Strategies: Increase awareness of LGE brand and
strength in customer service via extensive use of social
media and free press release.
c) Consumers Strategies: Promote LGE as a family company
that cares for their employees and their customers in order
to create a cohesive relationship that is trusting and
responsible.
14. Brand Positioning and
Perception
With the tagline of Life`s Good, LG positioning itself is
to differentiate their product on the basis of
technology, which appealed to the consumer on the
basis of health benefits
With the tagline Life`s Good, its corporate philosophy
to make people`s life better, convenient and healthier
Their positioning strategy is futuristic and
technologically intelligent
As they are in Upper and premium segment, so they
are featuring that their brand is young, vibrant and
premium
