CONTENTS

TOPICS
PAGE NO.
1. Introduction to the topic

 What is sales promotion

 Sales promotion techniques

 Sales promotion strategies

 Types of sales promotion

2. Introduction of company

 Mission

 International ranking

 Subsidiaries

 Slogan

 The symbol

 The partnership

 Strategic alliance

 LG brand identity

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 3. Company’s Profile

 Overview

 History

 Recent mergers and acquisitions

 Headquarter address

 Vision

5. Scope of Company

 Product categories

 Product recycling

6. Corporate social responsibility

7. Customer Satisfaction
8. Limitation
9. Research methadology
10. Conclusion
11. Bibliography

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 Introduction

To the

Topic
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 Sales Promotion

Sales promotion is one of the four aspects of promotional mix. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Media
and non-media marketing communication are employed for a pre-determined, limited time
to increase consumer demand, stimulate market demand or improve product availability.
Examples include:

 contests
 point of purchase displays
 rebates
 free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmick by many.

Sales promotion is any initiative undertaken by an organisation to promote an increase in

sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are
varied. Often they are original and creative, and hence a comprehensive list of all available
techniques is virtually impossible (since original sales promotions are launched daily!).

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 Sales Promotion Techniques
Sales promotion techniques can be specialized to certain industries, but most techniques
can be intuitive or learned by trial and error as you are in the process of selling. Simple
advice for successful promotions like pre-qualifying leads, respecting the client, building a
relationship and setting realistic goals are often not implemented in pitches, emails, phone
conversations and marketing materials. TV commercials bombard people with
information. If you are face-to-face or have a personal contact with your client, your
techniques must be different.

Consumer sales promotion techniques

 Price deal: A temporary reduction in the price, such as happy hour

 Loyal Reward Program: Consumers collect points, miles, or credits for purchases
and redeem them for rewards. Two famous examples are Pepsi Stuff and
Advantage.
 Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: coupons have become a standard mechanism for sales promotions.
 Loss leader: the price of a popular product is temporarily reduced in order to
stimulate other profitable sales
 Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
 On-shelf couponing: Coupons are present at the shelf where the product is available.
 Checkout dispensers: On checkout the customer is given a coupon based on
products purchased.

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  On-line couponing: Coupons are available on line. Consumers print them out and
take them to the store.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the
offer on a mobile phone to a salesperson for redemption.
 Online interactive promotion game: Consumers play an interactive game associated
with the promoted product. See an example of the Interactive Internet Ad for tomato
ketchup.
 Rebates: Consumers are offered money back if the receipt and barcode are mailed to
the producer.
 Contests/sweepstakes/games: The consumer is automatically entered into the event
by purchasing the product.
 Point-of-sale displays:-
o Aisle interrupter: A sign that juts into the aisle from the shelf.
o Dangler: A sign that sways when a consumer walks by it.
o Dump bin: A bin full of products dumped inside.
o Glorifier: A small stage that elevates a product above other products.
o Wobbler: A sign that jiggles.
o Lipstick Board: A board on which messages are written in crayon.
o Necker: A coupon placed on the 'neck' of a bottle.
o YES unit: "your extra salesperson" is a pull-out fact sheet.
 Kids eat free specials: Offers a discount on the total dining bill by offering 1 free
kids meal with each regular meal purchased.

Trade sales promotion techniques

 Trade allowances: short term incentive offered to induce a retailer to stock up on a
product.

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  Dealer loader: An incentive given to induce a retailer to purchase and display a
product.
 Trade contest: A contest to reward retailers that sell the most product.
 Point-of-purchase displays: Extra sales tools given to retailers to boost sales.
 Training programs: dealer employees are trained in selling the product.
 Push money: also known as "spiffs". An extra commission paid to retail employees
to push products.

Trade discounts (also called functional discounts): These are payments to distribution
channel members for performing some function

Sales Promotion Strategies

There are three types of sales promotion strategies: Push, Pull, or a combination of the two.

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A push strategy involves convincing trade intermediary channel members to "push" the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to
persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty
advertising items, discounts, displays, and premiums.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications efforts
on consumers in the hope that it stimulates interest and demand for the product at the end-
user level. This strategy is often employed if distributors are reluctant to carry a product
because it gets as many consumers as possible to go to retail outlets and request the
product, thus pulling it through the channel. Consumer-promotion objectives are to entice
consumers to try a new product, lure customers away from competitors’ products, get
consumers to "load up" on a mature product, hold & reward loyal customers, and build
consumer relationships. Typical tactics employed in pull strategy are: samples, coupons,
cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage
rewards, contests, sweepstakes, games, and point-of-purchase (POP) displays.

Types of Sales Promotion

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Sales promotions are essential to the proper marketing of products and companies. There
are many variations of sales promotions and listed below are the 3 kinds of Sales Promos
based on target market. By identifying these types of sales promotions, you can develop a
more defined campaign with higher chances of success. For these examples, we will use
Uprinting.com promos as a basis.

Consumer Market Directed

Possibly the most common and popular of sales promotions, consumer marketing directed
sales promos are those intended to appeal to the end consumer. Consumers are exposed to
sales promotions nearly every day. Recent studies have shown that sales promos do play a
conscious role in the buying decision process.

For example, Uprinting promotions can offer discounts on all its products to print material
end users to influence their purchasing habit.

Business Market Directed

This type of sales promotion marketing is targeted at other business entities. It is a sales
promo that may propose a certain level of distributorship and other trade functions to
companies. Often formal and less creative than a Consumer Market Directed Sales Promo,
it works well in Business-to-business dealings. This type of sales promo can also be
limiting due to the marketer’s personal network.

For example, Uprinting promotions business market

directed campaign can tap into its suppliers and offer them the opportunity to carry
uprinting products for a share in the profits.

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Government Market Directed
Due to the wide nature of marketing communications target market, sales promos can span
the identification of the Government as part of our market. Dealings with government
agencies and other state related offices will require a separate marketing plan and a
government market directed communications campaign for your sales promotion will best
suit the project.

For example, Uprinting promotions will direct its sales promo to government units to gain
favorable branding and image enhancing advantages. Uprinting can tap into the consumer
market after establishing its connections with the local governing body.

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 Introduction
of
Company
Mission
The mission of LG is:

 To create value for customers

 To respect human dignity
 To become the best in its class by winning customers' acclaim
as a true leader in the global market

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The mission of LG is to provide the customers with utmost satisfaction through leadership.

The fundamental policy of development is to secure product leadership that the Customers
may have the utmost satisfaction

LG Corp. is the holding group has controlling stakes in the various business fields, i.e., the
companies and subsidiaries. LG Corp. is a pure holding company and it focuses primarily
on portfolio management of its investment assets. The organization functions are managed
by:

 Chairman
 CEO
 Management
 Board of Directors

Executive Officers

International Ranking
 314th in the world according to Forbes Magazine
 72nd in Fortune Global 500 list

Subsidiaries
LG comprises 31 companies in total. The group has around 130 overseas subsidiaries. The
subsidiaries are functional in various fields of operation.

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 SLOGAN
"Life's Good" represents LG's determination to provide delightfully smart products
that will make your life good.

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The LG Electronics Life's Good signature consists of the LG logo, seal, and the
slogan, "Life's Good" set in Charlotte sans typeface curved around the LG
symbol. The curving of the slogan reinforces LG's personality and uniqueness.
The consistent usage of this signature clearly establishes the unique identity of
the company and unifies every division and product from LG Electronics across
the globe.

THE SYMBOL

The symbol of LG is the face of future. The letter “L” and “G” in a circle symbolizes
world, future, youth, humanity & technology .LG philosophy is based on humanity. It also
represents LG’s efforts to keep close relationship with our customers around the world.

The symbol consists of two elements.

1. The logo in LG gray

2. The stylized image of human face in the unique LG red color.

Red color represents our friendliness and gives a strong impression of LG’s commitment
to deliver the best.

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The circle symbolizes The Globe. The stylized image of a smiling face in the symbol
conveys “Friendliness and Approachability”. The one eye on the symbol represents “Goal-
oriented, Focused & Confident”.

The slogan of LG is “Life’s Good”. It expresses “Brand’s Value, Promises, Benefits,

Personality.

THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a labor-
management relationship rather than an employee-employer relationship. This illustrates
that management and workers are not in a vertical relationship, but in a horizontal one.

This culture is necessary for LG Electronics as it strives to become one of the world's top
companies. Such a relationship is transformed into a value-creation relationship whereby
both parties endeavor to address mutual problems and create new values together.

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 STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying business opportunities
through various associative relationships with some of the world's leading companies.

LG Electronics is striving to become number one in the world by mingling in

various business and technological fields and making strategic alliances with world famous
companies. "Strategic association between corporations," in which companies with
different infrastructures cooperate in the fast-developing 21st century business field, is of
key significance in terms of strengthening the existing industry and creating a new one.

LG Electronics will do its best to create new products and services with an open mind,
while developing new technologies and business fields through various associations with
some of the world's most successful companies.

1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
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 7. HP
8. GOOGLE
9. GE
10. INTEL
11. NORTEL
12. HITACHI
13. PRADA
14. RENESAS
15. TOSHIBA
16. BESTBUY
And the number follows many more…………………………..

In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services
will be available from LG mobile. This service is targeting 10 million LG mobile phones in
over 70 countries.

In Mar. 2007 LG Electronics and Google formed a strategic alliance.

Both companies will work together to release, market, and offer LG mobile phones with
Google services (search engine, map, email, and blogs.)

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 LG BRAND IDENTITY
The brand of LG is delightfully smart. LG strives to enhance the customer’s life and
lifestyle with intelligent features, institutive functionality and exceptional performance.

The brand platform

The LG brand is composed of four basic elements –

1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.

a. Trust,

b. Innovation,

c. People

d. Passion

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The benefits that are consistently delivered to the customer includes

Reliable products

Simple design

Ease of use

Company

Profile
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 OVERVIEW
At LG, we believe that technological innovation is the key to success in the marketplace.
Founded in 1958, we’ve led the way in bringing advanced digital products and applied
technologies to our customers. With our commitment to innovation and assertive global
business policies we aim to become a worldwide leader in advanced digital technology.

History
The history of LG Electronics has always been surrounded by the company's
desire to create a happier, better life.

LG Electronics was established in 1958 and has since led the way into the
advanced digital era thanks to the technological expertise acquired by
manufacturing many home appliances such as radios and TVs. LG Electronics has
unveiled many new products, applied new technologies in the form of mobile
devices and digital TVs in the 21st century and continues to reinforce its status
as a global company.

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1958
Founded as Gold Star

1960's
Produces Korea's first radios, TVs, refrigerators,
washing machines, and air conditioners

1995
Renamed LG Electronics
Acquires US-based Zenith

1997
World's first CDMA digital mobile handsets
supplied to Ameritech and GTE in U.S. Achieves
UL certification in U.S.
Develops world's first IC set for DTV

1998
Develops world's first 60-inch plasma TV

1999
Establishes LG Philips LCD, a joint venture with
Philips

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2000
Launches world's first Internet refrigerator
Exports synchronous IMT-2000 to Marconi
Wireless of Italy
Significant exports to Verizon Wireless in U.S.

2001
GSM mobile handset Exports to Russia, Italy,
and Indonesia
Establishes market leadership in Australian
CDMA market
Launches world's first Internet washing
machine, air conditioner, and microwave oven

2002
Under LG Holding Company system, separates
into LG Electronics and LG Corporation
Full-scale export of GPRS color mobile phones
to Europe
Establishes CDMA handset production line and
R&D center in China

2003
Enters Northern European and Middle East GSM
handset market
Achieves monthly export volume above 2.5
million units (July)
Top global CDMA producer

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2004
EVSB, the next-generation DTV transmission
technology, chosen to be the U.S./Canada
Industry standard by the US ATSC
Commercializes world's first 55" all-in-one LCD
TV
Commercializes world's first 71" plasma TV
Develops world's first Satellite- and Terrestrial-
DMB handsets

2005
Becomes fourth-largest supplier of the mobile
handsets market worldwide
Develops world's first 3G UMTS DMB handset,
3G-based DVB-Hand Media FLO
DMB Phone with time-shift function and DMB
notebook computer
Establishes LG-Nortel, a network solution joint
venture with Nortel

2006
LG Chocolate, the first model in LG's Black
Label series of premium handsets, sells 7.5
million units worldwide
Develops the first single-scan 60" HD PDP
module and 100-inch LCD TV
Establishes strategic partnership with UL
Acquires the world's first IPv6 Gold Ready logo

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2007
Launches the industry's first dual-format, high-
definition disc player and drive
Launches 120Hz Full HD LCD TV
Demonstrated the world-first MIMO 4G-Enabled
technologies with 3G LTE
Won contract for GSMA's 3G campaign

2008
Introduces new global brand identity: "Stylish
design and smart technology, in products that
fit our consumer's lives."

Recent Mergers and Acquisitions

The recent mergers and acquisitions of LG are:

 2006 - LG Chem acquired and merged with LG Daesan Petrochemical.

 2002 - Merger of LG Mart, LG Supercenter, and LG Department Store into LGMart
Co. Ltd.
 2000- LG-Caltex Oil Corp. merged with Hoyu Shipping
 Also in 2002 there was a merger of LG Electronics Inc. and LG Information &
Communications, Ltd.

Headquarter Address
20 Yoido-dong, Youngdungpo-gu
Seoul 150-721

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South Korea
Phone: 82-2-3777-1114
Website URL: www.lg.co.kr

Vision
LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader
in digital—ensuring customer satisfaction through innovative products and superior service
while aiming to rank among the world’s top three electronics, information, and
telecommunications firms by 2010.

On our way, we hold tight to a philosophy of “Great Company, Great People,”

underscoring our belief that only great people can create a great company.

LG strives for greatness in what we’ve identified as our three core capabilities: Product
Leadership, Market Leadership, and People Leadership—each strength a key part of
realizing our growth strategies for “fast innovation” and “fast growth”.

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Core Capabilities
Product leadership refers to the ability to develop creative, top-quality products, using
specialized new technologies.

Market leadership refers to the ability to achieve top ranking, worldwide, thanks to a
formidable market presence in countries across the globe.

People leadership refers to the market dominance achieved by selecting and nurturing
talented team players able to internalize and execute innovation across the board.

Growth Strategies

Fast innovation calls for securing a competitive edge over the competition by setting—and
meeting—the highest of goals in all realms of innovation, by at least 30%. This applies to
new-product development and unveiling, innovation in design and technology—as well as
product sales, market share, and corporate value.

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Fast growth is the result of implementing strategies designed to swiftly expand market size
and earnings, with and eye toward monetary growth.

Corporate Culture

Though a company can boast stellar management strategies and an outstanding and
talented pool of employees, it is still necessary to adopt a corporate culture that can fully
unleash the power of these capabilities.

No to “No’”s

At LG, we try to meet every road block with an alternate route—brainstorming and
working harder before saying “no.”

‘ We’ not ‘I’

LG’s embraces a code of strong teamwork—encouraging pride in achievement as goals are

met by many working together as one.

Fun Workplace

LG’s workplace is one where the individual’s creativity and freedom are respected, and
work is made fun.

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 Scope

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 Product Categories
Business Areas & Main Products

Category Main Products

Consumer LCD TV , Plasma Display , Display Panel, Color

Electronic Television, Home Theatre System, Music system,
s DVD Recorder/Player, MP3 & MP4 Player
Home Room Air Conditioner, Commercial Air
Appliance Conditioner , Refrigerator, Washing Machine,
s Dishwasher, Microwave, Vacuum Cleaner

Computer Laptop, Personal Computer, LCD monitor, CRT

Products monitor, Optical Storage Devices

Mobile Premium trend setter phone , Camera Phone ,

Phone Music Phone , Color Screen GSM Handset

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LG Plasma Display Panels
LG Electronics has achieved new dimensions of technological
excellence among the Plasma Display Panel manufacturers. The PDP
is available in sizes of 40, 42, 50, 60 and 71 inch internationally.

LG has world’s slimmest panel at 78 mm to the world’s biggest

panel at 71”. The company is the only brand in India which offers
“The largest range of models in the PDP category. Cutting Edge
Technology such as Image Stick minimization, Orbiter, Whitewash,
Flexi PIP, Double Window Screen are some of the features which
makes LG’s PDPs, the best made Plasma Panels ever.

LG Televisions

Slimagic
In the Indian household scenario where space is a major
constraint, LG has come up with an innovative solution by way of
World’s slimmest Flat CRT TV, Slimagic. In India, especially in
the metros, there is a major concern of smaller living space, and
LG’s latest innovation provides a solution to utilize the limited
living area / space in the most useful manner.

The technology used for Slimagic is highly advanced with a new

picture tube which makes the TV super slim and occupies 30%
less space. The unique features of the Slimagic TV is that it a
sleek TV, which occupies less space without compromising on

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 picture quality and looks attractive with double tone colors.
Slimagic is available in 21” and 29”

The LG X-WAVE TV
X Wave is India’s first TV with wireless Audio Transmitter. This
new technology will enable consumers to listen TV sound
through any audio system with FM receiver. Thus resulting in
Home Theatre experience. The X Wave Wireless Sound
Television comes with unique chip which transmits the TV sound
on FM frequency. The TV sound output can be received by any
audio set with FM receivers. This will enable consumer to
experience home theatre sound output. The current model is
available in 21” category and LG plans to launch 29” Flat X wave
shortly.

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 LG Mobile Phones

LG Electronics has launched the its latest Hi-end Camera Phone

P7200, S5200, S5000 and M 6100 GSM Handset recently.

About LG P-7200
The P-7200 GSM is a high end phone with Unlimited Video
Recording which is trendy, light and easy to carry. It has a 2 mega
pixel camera with Video download and playback support,
integrated USB Memory of 64 MB which makes it a Plug & Play
device & a external memory card slot which can be upgraded till
1GB, MP3 Player with never before DJ repeat effect, Bluetooth,
E-mail, 1000 nos. Phonebook Memory etc. the handset is loaded
with accessories like Data Cable, 64 MB micro SD Card & a
Stereophonic Headset Kit.

About LG S-5200
The S-5200 GSM has up to 2 hours of Video Recording and is
MP3 enabled with DJ repeat effect, MP3 Ring tones, Stereo
Surround Sound, Bluetooth, 1.3 mega pixel camera, 4x digital
zoom, Video download & playback facility, 64 MB USB Disk
which makes it a Plug & Play device & USB Charging. The
handset has MMS, JAVA, GPRS, 262K Color Display, 1000
phone book memory, Tri-Band and comes with accessories like
Data Cable & a Stereophonic Headset Kit.

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 About LG S-5000
The LG S-5000 the trendy looking phone with Granite Finish and
is one of the lightest handsets available in the market in India. Its
fitted with a 1.3 mega pixel camera, Bluetooth, MMS, GPRS,
JAVA, 262K Color Display, 1000 phone book memory etc. The
handset has Continuous Shoot, Photo Frames, Color Effects,
White Balance features.

About LG M-6100
The M-6100’s is sure to gather attention with it’s its slim style
and sleek design. Weighing in at just 88 gm, this mini wonder is
equipped with a host of features. It is the first GSM handset in
India that has a pre installed English to English Dictionary,
making sure that you are never lost for words ever again.

Armed with a 1.3 mega pixel digital camera with video recording
enables one to capture precious moments perfectly with crystal
clear details. Its built-in flash allows one to take more vivid
images regardless of time and place.

Another advantage with this LG Mobile is that it comes with Plug

and Play feature. Just connect it your PC and you can copy and
paste any Video, MP3, Photos or Data ‘to’ and ‘from’ your PC
without any driver support. Last but not the least this beauty
comes with and internal memory of 128 MB, USB disk, 1000 X 5
phone book memory, built in modem & MP3 Player.

It is loaded with Polyphonic and MP3 Ring tones & also has MP3

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 shortcut Key, DJ Repeat Effect, Graphic Equalizer and Real MP3
chip for real Sound Effects.

LG Air Conditioners

LG RAC 2007
LG took the lion's share of the market with 35% market share in
2006. With a quantity turnover of 5.5 lakhs and value turnover of
Rs.1000 Crs, we aim to achieve a qty and value turnover of 6.5
lakhs plus & Rs. 1300 Crs respectively.

a) NEW LAUNCHES IN 2007:

The New AC range of 2007 is par excellence on design front. The

new flat panel splits designed on the international trends in Air-
conditioning addressing the need of the consumer to enhance his
indoor aesthetics. The Deco Panel Series, Color Panel Series &
the Crystal Panel Series raise the bar on design in ACs. Being the
first to successfully launch Colored ACs in India, the new split
range has a variety of colors in Champagne Gold, Majestic Silver,
Cool Blue, Real Earth & Lustrous Pink to suit every indoor &
mood. LG is also the first one to launch colour series in Window
ACs. The Luxurious Gold & Majestic Silver Windows is bound
to raise many eyebrows.

To address the needs of convenient & comfortable cooling, LG

has launched the indigenously developed Advanced sensor based
Intelloeye Technology in 2007. The unique LG IntelloEye feature
gives unmatched cooling performance that no other AC can

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 provide at the touch of a button. When the IntelloEye Mode is
switched on, the inbuilt intelligent sensor automatically detects
the room temp and accordingly adjusts the setting temperature,
fan speed & swing settings of the Air conditioner. The LG saves
you the hassle of adjusting the temperature setting of the AC. So
leave the cooling to the intelligent sensor & enjoy the intelligent
cooling, convenience & comfort that the LG AC provides.

For providing convenience to the customer, we have launched the

Dual Display function in Splits that helps the consumer to view
both the Room & Setting temperature displayed on the AC.

We have also launched a feature called Custom Mode where the

consumer has the option to program desired AC settings like
Temp setting, Fan speed & swing.
AC can store upto 3 settings and saves the hassle to changing AC
settings every time.

The new Artcool ART truly redefines the statement "Technology

meets Art". The radically new design changes how we look at an
AC as just a cooling device. The easily replaceable painting frame
on front of the AC enables one to flaunt his latest painting with an
ease that the painting takes the limelight, unlike most ACs that
seem obtrusive in midst of all the precious paintings on the wall.
Plus the AC is a cooling delight with unmatched technology that
you can pass it off as a piece of art.

To cater to emerging trend of cooling 2 or more rooms

simultaneously, we are also launching the Odd- Multi Splits to

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 extend our Multi Split range. These Multi splits in odd capacities
take care of cooling needs in apts with larger drawing room &
smaller bedrooms.

b) THE RAC RANGE 2007

Split ACs is the fastest growing segment for us. This window
split divide for us will be far higher than the industry ratio, at
40:60. We have 115 models in our lineup: 28 models in Splits, 28
models in Windows, 8 in Hot & Cold Segment, 3 in Floor
standing, 7 in Multi Splits & 32 models in Premium Artcool range
& 6 models in Single Inverter Range, 3 models in Multi Inverter
Range. We have also expanded our range to cover all capacity
segments from 0.4Tr to 2.5 Tr . We have created new capacity
segments such as the 13000 BTU, 19000 BTU & 30000 BTU
SAC addressing the need of consumer for extra cooling in high
ambient locations to provide instant relief.

With a promise to deliver quality products, LG has a spate of

revolutionary technologies. The consumers are looking for ACs
that not just cool the air but also condition it. The AC range with
the AeroDNA system addresses just that need. The AeroDNA
System manages vital constituents that define the indoor air
quality such as Temperature, Humidity, Odour, Purity and Flow
to give perfectly conditioned indoor air at the most economical
costs to the consumer.

For addressing the air purity aspect of air-conditioning, we have

the NeoPlasma technology that is a 12 stage filtration that

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 effectively kills viruses esp the Bird Flu virus, bacteria etc and
removes odours to give pure fresh air for the consumer to breathe.

Consumer insight also showed us that consumers are looking for

ACs that consumes lesser power giving them better efficiency.
Hence the Inverter technology based Air Conditioners that give
the consumers a benefit of 44% power savings over conventional
ACs apart from 50% faster and uniform heating & cooling. These
ACs also use R-410 refrigerant which is HCFC free & hence
environment friendly.

We also recognized the need of the consumer for year round air-
conditioning in northern and eastern India due to the climatic
conditions. We continue to strive to upgrade such potential
customers to our Hot & Cold AC range that gives "weather on
demand" to the consumer. Thus a consumer is able to live in an
environment comfortable to him all year through. In-depth
research showed that AC buyers apart from having low awareness
about the product also considered that heat convectors were far
more economical in terms of purchase & usage. The new
communication addresses the barriers to purchase for the Hot &
Cold range which includes over 50% savings on electricity bill,
lower power consumption & double quick heating over
convectors.

We will also sustain our focus on emerging segments like Tower

ACs & Multi Split ACs that finds special target audience in
corporate segment, retail establishments, restaurants and also

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 large residential households.

With an effort to bring experiential buying to the consumer, we

have also started a new concept in AC retailing called the AC
solution Plaza. These specialty stores sell the entire range room &
commercial air conditioners from 0.4Tr to 25 Tr and also provide
start to end AC Solution right from the designing, consultancy,
sales, after sales service of the AC projects. From a current 2
solution plazas in India, we plan to expand to 10 nos. by year end.

LG Refrigerators
DIOS
LG India launched the World’s First TV Refrigerator – TV DIOS

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 with a 13-inch hi-definition TFT LCD TV installed at the center
of its door. The 600 litres TV DIOS also has a built-in radio tuner
providing access to FM stations and is supported by built-in
speakers. It has an astounding silver nano-antibacterial and nano-
carbon deodorizing technology which has won LG the ‘KT new
technology mark.’ Thus, this refrigerator brings together the best
in food preservation and storage with multi-media functions as a
quintessential digital home appliance. LG has a complete range of
DIOS with over 30 different models world over.

FROST FREE
LG has launched an exhaustive range of feature rich diamond cut
frost-free refrigerators ranging from a capacity of 230L to 751L.
The company currently has six variants in 230 liters capacity, four
variants in 250 liters and five variants each in 280 liters and 310
liters capacity respectively. The company also launched two
variants each in 350 litres & 390 litres capacity and 6 variants in
400+ range.
LG’s Diamond cut refrigerators, with new features, are a whole
lot easier to use. Responding to extensive consumer feedback, LG
offers the convenience of more storage space in the door. LG has
introduced features which are more customer friendly and will
pave a path to more convenient usage of the Refrigerator. The Ice
Beam Door Cooling technology in the frost-free refrigerators
enables uniform cooling in the refrigerator thus keeping the food
fresh for long retaining its nutritive contents. Beside the patented
Ice Beam Door Cooling LG has also introduced “Green Iron Door
Cooling” a revolutionary new technology that uses non-toxic

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 substance called Catechin, extracted from green tea leaf to
prevent bacteria, mold and unpleasant bad odor from entering the
refrigerator
The new range of refrigerators will now be available with more
value added features such as a MICOM panel, Kangaroo Tray,
Anti-bacteria gasket, sliding door bin in addition to the already
existing features like FIR Lamp, Cell Fresh Crisper, Door
Cooling, humidity controller which helps in keeping your food
fresh, healthy and crispy for long. Anti-Bacteria gasket provides
bacteria free zone, which delays the formation of molds, hence
keeping food fresh and healthy. Sliding door bin has further
addressed the problem faced by users in storing 2-liter bottles in
their refrigerators. This multi-utility shelf provides convenience in
storing bigger bottles and can be detached to keep more bottles.

The Kangaroo tray glides open smoothly and has a pullout; full-
width front section that provides two tiers of storage, making
Vegetable compartment access easier than ever and with the
drawer's unique design, there is plenty of storage room for all
shapes and sizes of fruits and vegetables.

LG Washing Machines

TROMM
LG Electronics, has unveiled the latest front loading TROMM series, drum
washing machines. Its futuristic wash features such as Fuzzy Logic technology
ensures that once you press the start button, smart sensors automatically detect the
laundry load and water level. Adjustments are then made in the water levels and
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 cycle time based on the laundry load to give you that perfect wash. Fuzzy Logic
also detects machine imbalance and excessive foam formation and adjusts the
same for the best washing performance. At the touch of a button LG TROMM
saves water and energy giving you a clean and convenient wash.

TROMM has the largest capacity 7 kg drum load capacity, Single dog Dial
feature, Delay Timer, Digital Display. It has Eco Wash, 9 Water levels and GRPP
Outer Drum features give the benefit of saving electricity. Self Diagnosis
mechanism, child lock and rat cover are the added safety features.

Top loading fully automatic washing machines

LG’s Top loading range of fully automatic washing machines comes equipped
with the revolutionary
i Sensor technology. The i-Sensor technology is a combination of 7 sensors against
the normal 4 present in other machines, which delivers a supreme wash. The
hardness, detergent and temperature sensors are the additional sensors. 7-water
level sensors help in power saving of upto 15% more than regular washing
machines. LG also displayed its Turbodrum and 3 step wash range of machines
which delivers best towards washing and rinsing performance. The washing
machines also come with safety features such as imbalance and door lock sensor
with child-lock feature. The machines are equipped with self tub clean system for
better hygiene . All these superb features enable washing that offers tangle free
clothes, less wear and tear and complete yet gentle cleaning .

Aesthetically very appealing, LG Washing Machine has stylish European looks

which is a unique blend of eye-catching design, user-friendly controls and digital
as well as window display. The FRONT LOADING Washing Machine range
comes in four colors, making LG the only company in India to offer so many color
options.

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 Semi Automatic Washing Machines
LGEIL has a total line up of 11 models in SAWM offering capacity of 6.2, 6.5, 7.0
& 7.2 Kgs. The highlight of the Semi Automatic Range was India’s first 6.5 Kg
capacity semi-automatic washing machine, developed through the efforts of
LGEIL’s robust in house R&D & Product Planning Team, with an investment of
over 25 crores. This washing machine has been designed taking into consideration
the aspirational as well as functional needs of Indian consumer. The new Semi
automatic machine launched has international looks and elegance.

LG WASHER & DRYERS

The LG Dishwasher is a technological miracle with high performance levels,
dependability, energy efficiency and convenience. The uniqueness of the LG
dishwasher is that it enables 50% fold down times to enable washing of large
vessels, various washing systems and an aqua stop which will detect water leaks. It
also has a triple filter which increases the efficiency of use of water and energy .
The dishwasher can be hailed as the gadget of the millennium since it requires
least water consumption has more programs & comes in sleek design.

LG’s Washer Dryer, unique in its offerings marks entry of this segment in Indian
market. Consumers would be offered complete Wash & Dry solution with this
compact machine which has a large capacity of 8 kg washing and 4 kg drying
capacity. Its features of auto dry and max spin speed of 1400 RPM making LG
washer dryer a value for money Proposition.

The Dryer comes loaded with latest condensing technology for drying clothes thus
eliminating the need for air vent and duct which is commonly observed in current
Indian offerings . It has dual lint filter and can handle bulk load upto 7 Kg .

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 Each LG solution comes out with the 2-year warranty and assured service support.
Aesthetically very appealing every LG product has a unique blend of eye-catching
design, simple controls and superb washing and drying solutions.

LG’s milestones in the Washing Machine category:

1997: LG launched its top loading washing machine from Korea

1998: Washing machine factory setup and start semi automatic washing machine
1999: Washing machine export started and launched front loading
2000: Launched MICOM controlled Semi automatic WM
2001: Launched 10 Kg. Digital Display top loading and new range of front loading
2002: Home production of top loading WM
2003: Became No.1 brand in WM category
2004: Launched TROMM

LG Microwave Ovens

LG has launched their high end microwave ovens Solar DOM and
Wave DOM. The LG Solar DOM is currently the world’s best
microwave oven with its unique Light wave Technology which
enables three times faster cooking, high nutrient retention, better
energy efficiency (50% saving) and high convenience levels. The
Round Cavity design makes it easy to clean and at the same time

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 saves space. It has a Indian Auto Menu option, Multi Rotisserie
grill and Smart Guide Display. Consumers also have an option of
getting an installation kit if they have built-in type of kitchens.

The Wave DOM has unique Round Cavity feature which enables
3 times faster cooking, 12% bigger turntable size, 60% more
usable volume than a normal square cavity and easy to clean
features. Each LG model comes with the 1-year warranty and
assured service support. Solar DOM outsmarts conventional
cooking appliances in terms of design as well; an
acknowledgement confirmed by the if Design Award, one of the
world’s most pre-eminent design achievements
LG Notebooks

LG has launched two Premium state-of-the-art notebooks based

on the latest Intel’s Napa platform with dual CPU cores,
developed in INDIA by Intel. Dual cores combine two cores in a
computer’s CPU to deliver a 30 per cent better performance when
processing multiple tasks. These two LG Notebook models are
LG P1 Express Dual and LG M1 Express Dual with 15.4 inch
wide-screen and 15 inch TFT respectively.

These Notebooks from LG are a unique combination of design,

performance, entertainment and security. These LG Express
Dual-core processor based Notebooks are exquisitely designed to
give the users the experience of handling a sleek, gorgeous and
technologically rich notebooks.

Entertainment has also been given impetus and these LG

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 Notebooks are bundled with 5.1-channel Dolby Digital, SRS, 24-
bit HD Audio, 3-Port Analog Output, S-Video and many such
amazing features on select models.

The newly launched notebooks are equipped with enhanced

security features such as TPM (Trusted Platform Module), Finger
Print Reader and HDD security, and are Bluetooth enabled.

LG Audio

LG now has a comprehensive lineup of 17 products to offer to its

consumers in the Audio segment, making it one of the largest
line-ups in the audio market.

LG’s Audio range comprises of the most progressive range of

wireless MP4 Home Theatres, MP3 Home Cinema Systems and
Room Theatre Systems. LGEIL has one of the widest product
portfolios in Audio category at the moment and further plans to
enhance the portfolio with a slew of futuristic launches. LG
Audio systems come equipped with wireless speaker systems,
which works on 2.44 GHz frequency, which is far superior
technology than offered by any other company in India. The
highlight of LG audio segment is the Next Gen Karaoke System
(NKS) developed by the company.

Next Gen Karaoke Systems (NKS)

LG has launched NKS will be launched in four variants to suit the
needs of a wide base of customers. Two NKS variants are

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 available in Home Theatres –one with 500 w rms, tall boy sleek
design & the other With 220 w rms bookshelf / Wall mountable
speaker design. The Third variant has been launched in DVD
Audio System category with 2200w PMPO and 3 DVD changer /
super-impose function. LG will also introduce a variant in MP4
DVD Player equipped with Optical audio output and Multi format
playback facility.

NKS is replete with a host of features, with each one further

adding to the user’s enjoyment. The system comes with free
software contained in two DVDs with 1800 songs from various
genres, both in Hindi and English. The system provides on Screen
scrolling lyrics with guiding highlighter to enable the singer to
sing along even if they don’t know the lyrics. A free microphone
is provided with all NKS systems alongwith 1800 coded songs
book for easy song search & selection.

LG Vacuum Cleaner

LG presents its unique range of “Healthguard” Vacuum Cleaners

packed with advanced features which make them the most
powerful vacuum cleaners. The advanced technology in them can
draw out dirt and germs from the difficult places. It not only rids
the surfaces of dust particles as small as 0.3 microns but cleanses

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 the air of germs, mites and other harmful microbes.

It’s unique HEPA Filter is a multi layer filtration system which

removes particles 300 times smaller than human hair. The Sani
Punch nozzle, specially designed for cleaning beds and blankets
uses air pressure to dislodge the toughest of dust mites and
bacteria. is the 1300W-1400W power behind the machines. It also
has a convenient auto-retractable cord and a washable dust
collection jar. LG Health guard Vacuum Cleaners comes in range
of 4 models – Roboking, Cyking, Extron punch, Spark and
Sweeper

Product Recycling

Product Recycling: Take Back Policy

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 Though telecommunication
service providers, mobile phone
retail shops and some supermarket
chains offer the possibility of
returning used mobile phones and
their accessories for reuse or
recycling, it is not a common
practice in today's society. LG
Electronics plans to make it much
easier for consumers to return
their end-of-life or used phones.

In India, the draft rules for E-

waste (Management and
Handling) Rules 2008 have been
notified by the Central
Government. Though the said
rules have not been finalized as
yet, but since
5th June 2009, we have voluntarily and pro-actively made
available 50 mobile phone drop-off points and are expanding the
Country level accessibility of take-back channels to all of our
customers. To maximize resource efficiency through mobile phone
recycling, LG Electronics works closely with all mobile phone
supply chains including telecommunication service providers,
distributors, merchandiser’s customers, and the recycling industry.

48 | P a g e
Guidance for the disposal of End of Life
Products:

Consumers could contribute to resource

conservation and prevent potential
environmental problems by a simple action —
the proper depositing of their old Mobiles.
Electronic waste is to be collected separately
from the general waste stream via designated
collection facilities appointed by the
government or the local authorities as per the
said draft rules.

Mobile Phone Voluntary Take Back:

As you are no doubt already

aware, the responsibility of the
environment protection has
accelerated the expansion of
end-of-life product take-back
regulations throughout the
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 country. At present, many
company in various regions are
trying to finalize their own take-
back policy. LG Electronics
India has been involved in the
process of establishing such
policy much ahead of the draft
rules being finalized and has
appreciated the introduction of
take-back systems by the
Central Government.

Recycling Mobile Phones:

Many customers might think that end-of-life mobile phones are

worthless, but they still contain many reusable or recyclable
materials. This means that leaving old phones in your desk drawer
is a huge waste of valuable resources. Let's see how all parts of
mobile phone could be recycled*.

1)Valuable metals are used as component

materials for the circuit board, LCD
module, and camera module.
2)During the smelting process, valuable

50 | P a g e
 metals such as gold, silver, and copper
can be retrieved from these electronic
parts
3)The metals that are retrieved can be used
for new electronic parts or can be sold
separately on their own.

1)Plastic materials are used for structural

components such as the case and cover.
2)The plastic materials that have been
collected are recycled as energy
resources after going through a heat
recovery process. Alternatively ,they can
be used as a form of recycled plastic once
they have been broken down and
processed.
3)Recycled plastic can be used to produce
products such as traffic cones, plastic
fencing, and car bumpers.

1)It is important to collect batteries

separately, given the variety of batteries
that are used. Li-Ion batteries are
frequently used in mobile phones.
2)Cobalt can be collected once the batteries
have been pretreated to avoid the risk of
explosion during the recycling process.
3)It is possible to sell the cobalt that is

51 | P a g e
 collected or use it as a raw material for
products such as padlocks and speakers.

1)Paper is the main component used in

packaging.
2)Paper can be recycled.
3)It is then used as recycled paper or in
products made of paper

*the above usages are only suggestive and may not necessarily
mean about the current usage

This initiative is a voluntary effort by us towards the first step

towards a cleaner and greener earth. This move is one of the ways
to show that we are concerned and thus we request all our
customers to join this movement to make it successful by way of
contributing their used handsets.

52 | P a g e
Mobile Phone India Network:

You can find details of your nearest mobile phone collection point,
courtesy of LG Electronics, and get valuable information about the
collection of end-of-life electronic products in your region,
including mobile phones. The participation in this movement is
without any obligation or consideration.

LG National Take Back Recycling

Program:
Vendor : Attero Recycling

To protect the environment LG

Electronics India has partnered
with Attero Recycling. Attero is
an authorized e-waste recycler
recognized by MoEF.

Let us save the environment for

53 | P a g e
 a better tomorrow. We urge you
to join us and convert your e-
waste to e-goods.

Ask for free pick-up at 1800-

419-3283(Toll Free).

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Corporate Social Responsibility

With the advent of globalization in India, the

concept of Corporate Social Responsibility
has emerged as one of the most important
aspects of corporate behavior.
Acknowledging this responsibility is crucial
for an organization's sustainable development
and future access to the global market. A
definite corporate social responsibility(CSR)
plan has therefore not only become an
integral part of an organization's brand
building strategy, but has also emerged as an
important tool to enhance the organization's
credibility, attract potential investors and
clients and employ the best of industry talent.

As a leading corporate in India, we at LG believe that corporate contribution to society when

guided by self-interest results in long term goodwill building, and have therefore endeavored to
assume responsibility for the needs of its people, the environment and the society. We have
consistently looked beyond its immediate business environment to address larger societal issues.
This concern springs from the belief that a true corporate vision must embrace the wider
community rather than just shareholders, customers and suppliers.

At the same time, there is nothing idealistic about LG's CSR vision, nor is it in conflict with
hard-headed business sense. It is purely an understanding on LG's part that the time, resources
and in-house professional expertise invested in social development projects pay rich dividends
to the company and the communities in which it operates. Therefore at LG the message is clear:

55 | P a g e
creating profits can and should go hand-in-hand with generating goodwill.

A slew of numerous initiatives have been

undertaken by LG ever since its inception in
India. The company has been actively
involved in providing social benefits to the
disadvantaged sections of the society. We
also have a focused plan for providing health
services to the under privileged children,
undertake animal health care and enhance
professional skills of the unemployed youth.

LG India has worked jointly with Prayas, a

Delhi-based NGO by undertaking
campaigns / activities for the welfare and
upliftment of

Underprivileged street and slum children and providing them services in the field of education,
health care, shelter, vocational training and other rehabilitation programmes.

The company also tied up with HELPAGE India ,the country's largest voluntary organisation
working for the cause and care of disadvantaged older people.

LGEIL also takes care of 24 villages around Greater Noida out of which six have been adopted
formally. The company has on its pay roll three doctors who visit these villages daily and offer
Free Medical Care, which comprises of free check ups and a free distribution of medicines.

LG's commitment to contribute substantially to the community led to the formation of the
'Tinkha,' a community development club consisting of 10 people. It recently organized Blood
Donation Camp where 172 employees donated blood in one day.

56 | P a g e
LGEIL is also generating self-employment opportunities for the people in the form of tailoring,
knitting etc. with the help of an NGO named, Jan Shikshan Sansthan. LG is also imparting
repairing training for the youth on refrigeration and CTV.

In the field of Animal Husbandry, a veterinary doctor from World Buffalo Trust visits a village
everyday and provides medicines for the domestic animals. Recently, a vaccine drive was also
initiated to immunize all the animals in the 24 villages around Greater Noida. The drive will
continue for the next 6 months.

Apart from the planned activities, LG has always donated generously to sudden natural
calamities like the recent Tsunami disaster and the Mumbai floods.

CUSTOMER SATISFACTION

Q) How customer is satisfied with the sales promotion techniques of

LG India?

Re-engineering the marketing process

As they say, Change is probably the only constant phenomenon in the dynamic world that
we live in. Changes that affect the society at large are the ones that grab the attention of
people. These so called mega changes can also be labelled as fads, fashions, trends and
mega trends depending upon their impact. Over the years we have witnessed changes in
government polity and policies, economic and social environment, business basics, cultures
and lifestyles.

But the changes that probably affect everybody are the changes in the business conditions.
Over the years, the way businesses are run has changed tremendously to suit the needs and

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demands of the societies. Businessmen have over the years altered their perceptions
regarding business management itself.

With the advancement of technologies, expanding markets and shrinking product life
cycles businessmen have been forced to adopt a more centrifugal and multi-faceted outlook
to survive in the market. In many countries, family businesses have given way to
professional corporate.

When enormous changes have taken place in business culture, can marketing be left
behind? It is quite evident that the changes have been from a manufacturing perspective to
services perspective, from product selling to relationship marketing and from brick and
mortar marketing to e-marketing.

The customer is an integral part of the value chain, and he is expected to play a variety of
roles such as that of a client, a participant, an advisor and a partner in the business process.
This is the crux of relationship marketing.

E-marketing is a concept whose genesis can be traced to the birth of e-business as a

business model. E-business visualizes an environment where the constraints of time and
space do not act as barriers to reach the customers with products and services.

e-marketing or Internet marketing has been conceived as a cost effective strategy in today’s
uncertain economies. The four p’s of e-marketing as suggested by Lynda Partner in her
article “e-marketing: New rules for opportunity” are, Personal, Pervasive, Permission
and Privacy.

Personal: Since its inception, the Internet has been a catalyst for user control — no longer
can marketers broadcast a message to a group of people and expect that it will have the
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intended effect. The Internet has created a revolution of users, who have come to expect
personalized, tailored communications.

Pervasive: Marketing messages can now move virtually at the speed of light, or at least at
the speed of the Internet. It is incredibly easy to “pass on” an interesting email message,
banner ad or Web page to hundreds of your closest friends.

Many analysts attribute the growth of highly successful companies like AOL and Hotmail
to this phenomenon called “viral marketing”.

Permission: Permission-based direct email marketing means that relevant marketing mails
would be sent only to the willing customers.

Permission marketing is effective and successful because recipients are more inclined to
respond positively to a message they desired to receive. More importantly, return on
investment (ROI) increases when you use permission-marketing techniques.

Privacy: Privacy and permission are inextricably linked. When permission is available
to send messages to people it does not mean that permission is also available to give away,
rent or sell the user names or email addresses to anyone else. This is a cardinal rule of e-
Marketing.

The papers in this volume deal with several aspects related to the recent changes in the area
of marketing. The papers have been arranged under relevant section heads so as to give a
meaningful insight into the process of modern marketing management. The six sections in
the book discuss the e-marketing concepts, the brand management aspects of a product
strategy, the recent developments in the field of promotional strategies, the role of supply

59 | P a g e
chain management in maintaining a competitive advantage, the growing importance of
customer relationship management, and lastly the marketing strategies of various firms
belonging to different industries.

e-marketing - The New Age Marketing.

The world is moving towards a unified communication platform. Businesses all over the
world are realizing that communication is so very vital to sustain a competitive advantage
in the long run. The e-business model has been touted as a revolutionary development in
Business management. The first section is devoted to the recent developments in the e-
marketing scenario. The first paper “From Retailing to e-tailing” describes the four e-
tailing models in vogue today. The four models are auctioneer, channel supporter, category
killer and vertical portal. The vertical portal is being heralded as the next generation model
as it combines the merits of information and service portals. The second paper “B2B
Marketing” describes the advantages of “Industrial consortiums” in B2B arena in global
context. The author here observes that bitter rivals are forced to join such consortiums for
mutual benifits. The paper “ Net Ads that Work” highlights the present trend in Internet
marketing in India. The paper stresses on the importance of sponsorships over the
traditional Internet based advertisements. The last paper “Dotcoms are dead, long live the
Internet?” throws light on the demise of dotcoms and reminds that the real Internet era has
just begun.

Brand management - Key to product’s success

The marketing plan, no doubt, gives a direction to the entire marketing process, but it has
to be backed up by a sound brand management philosophy. A clear brand strategy helps in
defining the overall product strategy. The second section on Brand management starts off

60 | P a g e
with the paper “Whatever happened to Burma Shave?” which has given useful insights
into the ‘maintenance’ and sustenance of a brand. The author has also explained through
illustrations the usefulness of pattern recognition (a scientific technique used in the fields
of chess and medicine) in identifying market opportunities quicker than the competitors.
The authors also add that companies that change with the time and understand the needs of
the consumers are the ones that are successful in the market. The next paper is “Need for
Brand Valuation” which highlights the necessity for the managers to re-look at the
traditional method of brand valuation. The author favours the ‘earnings multiplier model’
over the traditional model, as it is more market oriented and practical. The third paper
“Importance of Techno Branding” tries to impress upon the readers the need for
branding in the Industrial buying scenario. Techno branding would reduce the perceived
risk of an industrial customer and also give him additional options Vis a Vis technical and
service support. Brand valuation is a complicated exercise and needs expert judgment on
the part of brand managers. The next paper “Borrow Money using Brands” essentially
tries to analyze the use of brands as collateral for borrowing money from the banks and
financial institutions. The last paper in this section “The Challenge of I-brand Equity”
gives an e-branding perspective to the brand strategy. e-branding is gaining importance
today in the global scenario as the markets are gearing up for the next generation Internet.

Promotion strategy - The key to market success

Just having a great brand is not enough. Marketers must communicate to the end users that
they are promoting a great brand. A well thought out promotion programme has always
helped the marketers to gain competitive advantage in the market. The first paper
“Contemporary Sales Promotion” promotes the usage of innovative techniques such as

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concept selling and sampling over the traditional sales promotion techniques to win
markets.

Price cuts have to be used intelligently so that wrong signals are not sent to the market. The
second paper “How to sell a Price Cut?” drives home the point that drastic price cuts can
have negative impact on the image of a company and many a times lead to reduction in
sales.

The good companies have used counter argumentation and product justification strategies
for low and high commitment consumers respectively to offset the damage done by
negative press. The third paper “Is Bad Press Good thing for Brand?” asserts that
companies with sound fundamentals have used negative press to their advantage. The next
paper “Where have all the Startups Gone?” has given an interesting insight into the
corporate perspective of changing role of advertisement industry in India. The
advertisement industry in India is facing rough weather as more and more companies are
using the services of transnational agencies for promotion programmes. The last paper
“Technology is Changing the Advertising Business” is a commentary on the recent
technological changes that have affected the advertising industry. The paper also
emphasizes the need for embracing the latest technology to improve the promotion
activities.

Channel and Supply chain management for competitive

advantage

An efficient supply chain management ensures the smooth flow of goods from the
manufacturers to the ultimate consumers. A well-oiled supply chain helps the manufacturer

62 | P a g e
to deliver the goods in time. The fourth section has dealt on the crucial aspect of supply
chain management. The section starts off with the paper “Readymade Future”, which is a
commentary on the current garment industry scenario in India. The garment industry over
the last few years has become a knowledge driven industry due to the increasing
availability of information regarding the latest trends in fashions and designs. Thus from a
channel management perspective garments and fabrics are being separated into two
separate divisions. The second paper “Modern Retailing in India”, describes the recent
developments in the retailing industry in India. Retailing in India is poised for a great
future as many Indian and foreign giants are setting up state of the art malls and
multiplexes to bolster their retailing activities. World over, Franchising has been used to
enter new markets and gain new customers. The next paper “Franchising the Second
Coming,” throws light on the rising importance of franchising as a business model. The
next two papers “Logistics for a Faster and Efficient Future” and “Dynamic
Programming – The Logistics of Marketing” delve on the importance of logistics in
supplementing the core activities of supply chain management.

Relationship marketing - The customer is the king!

Relationship marketing is a fairly recent concept in the realm of marketing management.

The focus has clearly shifted from hard selling to customer delight. The papers in this
section highlight the growing importance of customer relationship management as a key
differential tool in a highly fragmented market conditions. The first paper “The Price of
Loyalty” enumerates the fallacies in most of the loyalty programmes. Through suitable
examples the author has explained that the loyalty programmes have not served their

63 | P a g e
intended purpose. The next paper “Building Relationship Programmes” has expounded
the concept of “Lifetime Customer”. A Customer satisfaction-monitoring model has been
suggested to keep the loyal customers satisfied. The third paper “Customer Service:
Owning the Relationship” has emphasized the need for an honest appraisal of marketing
activities of various firms. With increasing competition every day, the key to survival in
the market would be an approach that places the customer interest as the topmost priority.
The fourth paper “Brand Customer Relationship: The face of your Business Strategy”
throws light on the consistency aspect of the customer relationship management. The
author asserts that a perfect alignment between the brand promise and customer experience
has to be maintained regardless of the situation faced by the customer (for e.g., the
customer experience on the internet has to be similar to that of offline experience). The
next paper “Closer to the Customer” is a commentary on the current strategy of many
Indian companies to join the services bandwagon. In the highly competitive scenario,
services have emerged as the leading sector for the entry of traditional companies. The last
paper “Increasing Consumer Loyalty through Service Parts Management” has
highlighted the role of after sales service and parts management in an effective loyalty
programme. A consistent after sales service and parts management helps in retaining the
loyal customers.

Marketing strategy –the grand plan

The marketing plan more or less is used to give a momentum and a direction to the
marketing activities. The plan includes the strategies to be adopted to counter the real and
imaginary threats in the market. The strategies are formulated based on various factors
such as product demand, product life cycle, market conditions and competition. There are

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four papers in the section on marketing strategy. The four papers present different
perspectives to marketing strategy. While the paper “Oils: Marico’s success Formula”
enumerates the usefulness of brand extension strategy, the next paper “The Korean Digital
Management in India” highlights the success of digital management concept mooted by
Korean giants like ‘Samsung’ and ‘LG’ in India. The key factors for the success of the
Korean giants have been their radically different approach towards promotion, positioning
and service aspects of the marketing strategy.

The next paper “Provogue: Cornering the Fashion Niche” draws attention to the changes
taking place in garment industry in India. The author observes that garment industry has
changed from a manufacturing industry to a knowledge-based industry due to the increase
in the knowledge of consumers. The finishing paper “Consumerism in a Sachet” has
discussed the utility of low unit price packs in winning markets with special reference to
rural markets in India.

Though the basic tenets of marketing have remained the same, the outlook of the
organisation has undergone a drastic change thanks to e-business and e-marketing and the
new vistas they have opened for them. When the dust settles after the dotcom fiasco,
organisations are going to enhance the e-marketing opportunity for furtherance of their
reach and competitiveness.

The new-age marketing , that has turned around the marketing strategies, is here to stay, to
say the least.

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 Limitation

Lessons from LG’s Success in India

August 29th, 2006 by Vishal Srivastava

This week, we will look at why LG has been so successful in India. While a blog is too
small a place to discuss the details, I will try to highlight some of the important reasons
behind their success. When LG entered India in the middle of 1990s, few people in India
had heard of it. Leading Japanese brands like Sony, Sanyo and Panasonic were much better
known and respected. Some of them have had a market presence in the television market
for some time. However, over the next ten years, LG became the market leader in almost
all major appliance categories, ahead of even local brands at the low end of the market.

While there have been major factors at work, the most important one has been PG’s
approach towards the Indian market. They restrained from transplanting strategies that had
worked well in other markets. They understood the peculiarity of the market-each part of
India is a different market and consumers are extremely value conscious meaning they look
for not just the cheapest but the best that fits the budget. Also, a lack of established
distribution channel means the manufacturers have to rely on third party distribution,
especially in tier-2 cities and beyond. LG has done rather well on all counts- it established

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a local sourcing base, even before the volumes could justify one, to cut down the costs. It
used third party distribution to penetrate smaller cities and gain scale. LG also priced the
entry level products aggressively to compete with local players. It created new products for
the market- like an entry level TV to capture the low end of the market and a more refined,
flat screen 21” model used as upgrade bait. The model was priced about 10% higher than
the entry level model and has been surprisingly successful. Of course, it had the traditional,
premium product retailing at the higher end. The volumes game allowed LG to achieve the
manufacturing and distribution scale that enabled it to sell premium products with lower
overheads as the costs were spread over a larger base. The company also tied up with
aggressive local and foreign finance companies for financing consumer purchases, an area
so far overlooked by major players. LG also did something unusual in its market entry
strategy- it avoided getting into joint ventures (JV) with local companies. For a long time,
management gurus and their ilk have championed the cause of joint ventures for entering
new markets. However, the ground realities are quite different- most JVs have been utterly
unsuccessful in India (more on this in a later). As an independent entity, LG India was not
constrained by the limitations and interests of the local partner. The freedom allowed LG to
invest freely and expand the product lines as it saw fit. Many other companies were unable
to invest or bring in new products due to their partners limitations.

The result – LG had sales exceeding $2.5 billion in 2005 and expects to increase it to $10
billion by 2010. There is a lesson in this for everyone planning to sell to Indian consumers.
However, LG’s situation was unique. It was a fairly large company and could afford to
invest before seeing real results. It could also keep prices down due to economies of scale.
But what if LG had been a small player? Had this strategy still worked? It’s doubtful. For
starters, if you are a small player, you cannot hope to achieve scale, and therefore compete
effectively at the low end of the market. But then, you probably don’t need to. Since LG
was large, it needed to have a large business for it to make any sense. But for a small
company, say $10m in revenue, even a $2m per year market will be attractive. It means
that if your product sells for $100, you need to sell about 20,000 in a year to get to $2m. Is
that doable without investing lots of money? Absolutely! We will see how in the next post.
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 Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was to
collect appropriate data, which work as a base for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods

Research design:
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to
study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control variance.

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Types of research are:

 Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are undertaken in
many circumstances when the researches is interested to know the characteristic of certain
group such as age, sex, education level, occupation or income. A descriptive study may be
necessary in cases when a researcher is interested in knowing the proportion of people in a
given population who have in particular manner, making projections of a certain thing, or
determining the relationship between two or more variables. The objective of such study is
to answer the “who, what, when, where and how” of the subject under investigation. There
is a general feeling that descriptive studies are factual and very simple. This is not
necessarily true. Descriptive study can be complex, demanding a high degree of scientific
skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher give sufficient
thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be used in
this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional
and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements
from a given population. Thus, it may deal with household, dealers, retail stores, or other
entities. Data on a number of characteristics from sample elements are collected and
analyzed. Cross sectional studies are of two types: Field study and Survey. Although the
distinction between them is not clear- cut there are some practical differences, which need
different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim

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at finding the relations and interrelations among variables in a real setting. Such studies are
done in live situations like communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained
from a sample of large population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research includes survey and fact finding enquiries of
different kinds of the major purpose. Descriptive research is description of the state of
affairs, as it exists at present. The main characteristic of this method is that the researcher
has no control over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are survey methods of
all kinds including comparative and co relational methods. The reason for using such needs
to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its
approach cannot be changed every now and then.

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 BIBLIOGRAPHY

Reference

 www.lgindia.com
 www.google.com

 www.wikipedia.com

 Business world
 Business today
 LG magazine
 Economics times News paper
 Times of India

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