LG Electronics is a South Korean multinational electronics company headquartered in Seoul. It has four business units: Home Entertainment, Mobile Communications, Home Appliance & Air Solution, and Vehicle Components. In India, LG entered the market in 1997 and launched products like color TVs, refrigerators, and washing machines. It has a strong presence in the Indian refrigerator market, holding about 23% share. LG focuses on production and sales of air conditioners, TVs, refrigerators, washing machines, and mobile phones. It has manufacturing plants in India and worldwide and uses a network of warehouses, regional offices, dealers and retailers to distribute products across the country.

1. A STUDY ON SALES AND
DISTRIBUTION OF
LG- ELECTRONICS

2. About the company
 LG electronics incorporation is a South Korean multinational electronics company headquarters in Seoul
South Korea.
 Founded : October 1958, Seoul, South Korea
 82,000 people working in 119 local subsidiaries worldwide.
 LG comprises four business units: Home Entertainment, Mobile Communications, Home Appliance & Air
Solution, and Vehicle Components.
 The company one of the world leading producer of flat panel TV, mobile device, air condition washing
machine and refrigerator
 LG- Lucky Goldstar, Slogan – life is good
 LG Electronics has secured global product leadership and market leadership through bold R&D investments,
positive global marketing efforts, and ongoing activities. LG Electronics is the first to launch state-of-the-art
products such as next-generation mobile handsets, digital TVs, and Internet-capable home appliances,
opening up a whole new future for the global electronics, information & communications technology
industries.

3.  In 1997 Korean electronics giant entered Indian market.
 It was one of the earliest multinational company that established its own firm
Indian market.
 The product launched in India where color television, direct cool refrigerator and
top loaded washing machine.
 After LPG in India consumer durable industry as whole has grown at almost 8%,
while the refrigerator market increase 15% per year
 Indian refrigerator market is estimated to be 3.5-4 million unit approximately
valued at Rs.50 million in 75% of demand in urban area other 25% contributing
rural areas.

4.  LG announced 2016 operating profit 1.16 billion USD, 12.2% increase due in large part
of strong performance by home appliances – Air solution and Home entertainment.
 Full year(2016) LG total revenue 47.92 billion and net income 109.31 million
 In 2017 second quarter revenue 12.89 billion, an increase 4% from the last same period.
Division Revenue (billion USD) Operating income (billion
USD)
LG Home Appliance & Air
Solution Company
4.65 0.41
LG Home Entertainment
Company
3.75 0.30
LG Mobile
Communications Company
2.39 -0.18
LG Vehicle Components
Company
0.78 -0.02
TOTAL 12.89 0.59

5. 1. Air condition = 22.3%
2. Television = 26.7%
3. Refrigerator = 29.4%
4. Washing machine = 35.1%
5. Mobile phone = 2.6%

6. 29%
18% 18% 18%
12%
5%
0%
5%
10%
15%
20%
25%
30%
35%
lg samsung videocon godrej whirlpol others
Chart Title
Refrigerator
market
LG-23%
SAMSUNG-18%
VIDEOCON-18%
GODREJ-18%
WHIRLPOL-12%
OTHERS-5%

7. LG MAJORLY PRODUCING FOUR TYPE OF REFRIGERATOR
Single Door Double Door
Side by Side
Bottom freezer
Capacity range – 185-200, 200-300, 300-400, 400-500,
500- 600,700+
Price Range of Product
Single Door - 12250 to 25490
Double Door - 18700- 60000+
side by side- 50000-200000

8. successful value creation need successful value delivery. Holistic marketers are taking a
value network view of there business, the marketing channel perfome the work of moving
goods from producer to consumer.
Study conducted area
perumbavoor
others

9. Factory of lg-india
• Greater Noida – up
• Pune – MH
contracted based manufacturing
Mohali, Kolkata, Bhopal
Warehouse
1.Mother warehouse
2. Branch warehouse
Mother warehouse- Noida, Pune, Chennai
Branch warehouse – each state one or two branch warehouse

10. • LG India fixing regional office in many state for proper controlling their business
1. making sales report
2. dealers promotion
3. controlling distribution activities
in Kerala regional office is located by N.H Bypass palarivattom Ernakulum
regional office head – regional service manager
LG TOTAL 46 BRANCH OFFICE IN INDIA
110 AREA OFFICE
5000 DELERS

11. • Branch warehouse is located in each state. In Kerala has one branch warehouse in LG it is
located Ernakulum- koomankavu. In branch warehouse collected information from
Regional Office. Company will directly distribute product mother warehouse to branch
warehouse-they using company own truck. With maximum two day taken for transportation
of mother warehouse to branch ware house.
• In manufacturing to warehouse channel
Manufacturing
Unit
Mother
warehouse
Branch
warehouse

12. Regional office
kochi
Mother
warehouse
Chennai
Regional
warehouse
kochi
Sales
executive
Team leader
Area
manager
Regional
manager
• Information passing through android enable communication
system, is automatically update sales detail and communicate
sales executive and head of the department.
• Conducting monthly team meeting in that time evaluating
performance of employee and also prepare 2 or three month sales
structure

13. Mostly company have their own distribution network in all over the
country. But in some remote area company will contact private distributes.
In Kerala LG has wide distribution network they control regional office,
most of the big retailers product distribute company their own network,
but in case the dealer has only two or three shop or product will sold very
less number this time company does not provide direct distribution they
arrange private distributer in Ernakulum is known is GOKULAM AGENCIES
Carrying forward agencies are responsible for transporting refrigerator to
retailer in particular time period. They are the separate wing to control all
the logistics activities of the LG product. They are directly under control
each regional office.

14. Retailers
• LG has fixing their own showroom across India, in Kerala there more than 15 showroom, and
also more than 5000 dealers across India. LG showroom under control by the near regional
office, dealers are thre own management.
Dealer or retailer
(order)
Regional office
(receiving)
Mother
warehouse
Regional
warehouse

15. Supplier
Korea
Supplier
Singapore
Supplier
Taiwan
Supplier
India
Supplier
china
FACTORY
(OEM)
PUNE
FACTORY
(OEM)
NOIDA
MOTHER
WAREHOUSE
PUNE
MOTHER
WAREHOUSE
NOIDA
MOTHER
WAREHOUSE
BANGLORE
MOTHER
WAREHOUSE
CHENNAI
Retailer
Lg shop
Retailer
Bismi
Retailer
G-mart
Retailer
Pittapillil
Retailer
Other
Regional warehouse
cfa

16. Backward channel of supply chain
In case some product are defecting in retail shop or after purchasing customer in this situation
the product is transfer from company plant.
Retailer
Customer
Regional warehouse Mother warehouse
Manufacturing plant

17. • In perumbavoor market each shop has company fixing target in monthly basis and yearly basis.
Target fixing on the basis of seasonal variation, festival season each retailer have high target
especially onam festival.
• In 60% sales contributing August September October month
• In perumbavoor market per month more than 50 fridge is target to retailer
• In festival season more than 140 refrigerator will be sell
• Target amount is average 14 lakhs per month.
• In an yearly target is more than 850 unit and 1.20 cr
• Company will fix the target on the basis of previous year sales basis, in each yearly 30% more
fixing previous year.

18. Sale of refrigerator in normal
period perumbavoor market
30%
50%
20%
normal month
refrigator single door
refrigator double door
refrigator side by side
Festival season refrigerator
sale in perumbavoor market
30%
50%
20%
festival season
refrigator single door
refrigator double door
refrigator side by side