SALES & MARKETING PLAN

Introduction

In this presentation we will cover the follows:

1.Product overview
2.Sales plan
❖Revision of ceilings
❖Revision of exception list
❖Market segments
❖Incentive scheme per dealer
3.Marketing plan
 Introduction
LG today stands as one of top 5 leading home appliances companies in
MENA. Flag ship LG stands a leading position in WM, Ref, freezers & AC.
The company was able to capture opportunities in the market taking
advantage of MEC disappearance, Sharp setbacks , Samsung ups & downs,
and financial crises of several players in the market.
Several players are keen to take their position back to the market as sharp,
Samsung will be more focused on the two main segments which will be very
challenging to LG
The challenge for 2010 is to maintain success which is more difficult than
achieving success, uplift the company to a new systematic with less
centralization & more decentralized and dynamic.
Sales Plan
- Situation analysis
Total Forecast 2009
2011R 2012P EX.GRT

Wholesale 24%
Wholesale Hyper Retail Hyper 44%

Retail 32%
13%

14%

73%

Total 2012
Refrigerators
2010 2011 Forecast

GRT 40.9%
2010 to GRT
2011 12%
2011 to
2012 2012
P Expect
Refrigerators Channel Management 2012

Hypermarket
11%
Retail
13%

Wholesale
76%
Refrigerators Market Share 2011

Others Market Size 66178

LG 9% BEKO
11% 13.3%

Federal SHARP
7% 19%

Samsung
11% Toshiba
Hitachi 12%
VESTEL 12%
6%
Freezers
2011 2010 Forecast
GRT 11.5%
2010 to
GRT
2011
15.8%
2011 to
2012
Expect
2012
Freezers Market Share 2011

Market Size
18250

Others
18%
BEKO
24%

Hay Life VESTEL

18% 12%

National E. Samsung
10% GE 14%
4%
Freezers. Channel Management 2012

Hypermarket
24%

Retail
9%
Wholesale
67%
Washing machines
2011 2010 Forecast
GRT 17.7%
2010 to
2011 GRT 8%
2011 to
2012
Expect
2012
Washing M. Channel Management 2012

Retail Hypermarket
5% 9%

Wholesale
86%
Washing Machines Market Share 2011

General D. Others Market Size

5% 3% 65009
National E.
7% BEKO
Candy
26%
6%
KONKA
6%

Samsung
LG 16%
21%
Vestel
10%
Dryers
2011 2010 Forecast
GRT 47.6%
2010 to
2011
GRT 36%
2011 to
2012 Expect

2012
Dryers Channel Management 2012

Hypermarket
30%
Wholesale
53%
Retail
17%
 Dryers Market Share 2011

Market Size 1605

Others BEKO
13% 16%
LG
9%
National E.
25%

Candy
VESTEL
28%
9%
 Dish washers
2011 2010 Forecast
1333
GRT 39.9%
2010 to
1037
2011
GRT 22.2%
2011 to
2012 Expect
2012
623
Dish W. Channel Management 2012

Hypermarket
30%

Wholesale
53%
Retail
17%
Dish Washers Market Share 2011

Market Size 4865

Others
13% BEKO
GE 23%
9%

VESTEL
13% LG
15%

Candy
27%
Air- Conditioning
2011 2010 Forecast

GRT 51%
2010 to
2011 GRT 2%
2011 to
2012
Expect
2012
A/C Channel Management 2012

Hypermarket
8%
Retail
13%

Wholesale
79%
LCD’s Screen

DRP -58.8% 2011 2010 Forecast

2010 to
2011 DRP -10%
2011 to
2012
Expect

2012
LCDs Channel Management 2012

Hypermarket
35% Wholesale
46%

Retail
19%
Vacuum Cleaners
2011 2010 Forecast

GRT 37%
2010 to
2011 GRT 17%
2011 to
2012
Expect
2012
Vacuums Channel Management 2012

Hypermarket
16%
Retail
5%

Wholesale
79%
Wholesale Forecast 2011,
2012
Growth
products 2011R 2012F Rate

Refrigerator 30.05%
Up Right Freezer 25.30%
Chest Freezer 27.43%
Washing Machine 26.33%
Dryer 52.83%
Dish Washer 37.05%
Water Dispenser 85.00%
Air Condition 9.87%
LCD -6.65%
Vacuum Cleaner 27.24%
Hair Straightner 40.30%
Small Home Appliances 25.21%
total 27.98%
 All Company LG 2011
Total LG Sales for All Company 2011 till mid of Dec 000000000
Total LG Sales for All Company 2010 till mid of Dec 000000000
Total GRT 25%

LG 2011

Channels Sales till 24.12 Projection 2011 Achieve from

Forecast
Wholesale 95%
Hyper Market 68%
Retail 162%
Tactics to achieve 2012 Target.
- Evaluate Dealer ceilings. (See appendix) (1)
- Effective incentive scheme. (See appendix) (2) Expected 2012
- Market segments
- Facilities (see appendix) (3)
- Marketing plan
Effective incentive scheme.
First Half/ Incentive Scheme
From 1/1 to 31/6/2012
Suggestion Suggestion Scheme number
incentive scheme
2% From 15.000 to 25.000
2.5% From 25.000 to 50.000
2.75% From 50.000 to 100.000
3% From 100.000 to 150.000
3.5% From 150.000 to 300.000
3.75% From 300.000 to 450.000
4% From 450.000 & above
Second Half/ Incentive Scheme
From 1/7 to 31/12/2012
Suggestion incentive Suggestion scheme Scheme
number
2% From 25.000 to 40.000
2.5% From 40.000 to 75.000
2.75% From 75.000 to 125.000
3% From 125.000 to 175.000
3.5% From 175.000 to 300.000
3.75% From 300.000 to 450.000
4% From 450.001 & above
Market segments
Facilities 2012 (see appendix)
LG Marketing Plan 2012
Objectives

1) More attention to enhance display at dealer network

2) More attention to 10 ten via appreciation & communication
3) Branding for flagship products
4) Tactical for seasonal products
5) Redirect marketing investments in hypermarkets through covering outlets
calendar instead of heavy cost of concept shops.
6) Focus on service
7) Focus on PR
8) Go on line
9) New channels SHOWROOMS
Solutions
•Hit main competitor
•Aggressive sales

Short •Change perception

•Sales promotions

Term
•Aggressive marketing
•Catching all opportunities
•Responding to sharp, Samsung
weaknesses

•Internal structure
•Create partnership

Long •Market share occupancy

•Enhance Service

Terms
•Enhance Logistics
•specialty
•Proper PSI
LG SWOT
S W O T
sharp/Samsun
g current Sharp/Samsun
Wide line up flexibility g plans
situation

Completive
prices/SKD service hypermarkets Slow markets

Brand Wholesalers A
RO support awareness B Dealers C & D

Marketing Customer
support brand loyalty

Strong team Uprising of

and network Haeir
Short Term Strategy

HEAT
HEAT strategy is a short term proposal that aims to replace the leadership position
(SHARP & Samsung with LG) via attacking all the symbols of SHARP & SAMSUNG,
hitting their traditional channels, achieving shock via speed actions, achieving
maximum exposure in a short notice.

This plan is the first phase of a long term strategy

HEATS Strategy

Hit into E
xposure Attack T
actical
heart
Hit

Focus in number 1 in WM & Hit weak competitors

REF Haeir, sharp, sumsung

Hit
competition

Hit competition traditional symbols

Odeh installment, main sign Identify competition volume items,
boards, headhunting samsung big track them down, hit their pricing
boys
Exposure

Positive word of mouth Display every

service where

Exposure

Event management &

Diversity of activities PR
Attack

Select & focus Speed

Attack

Blocking account
Strong display
Tactical

Coordinate with A Support tools to enhance WS

competition against B & dealers. No interest in
competition channel mono control

Tactics

Marketing intelligence Block accounts

COMPETITION response
Price war

Aggressive
campaign

Credit
facilities
Action Plan
LG Marketing Outline
FLAGSHIP PRODUCT BRANDING
WM, REF, AC, FREEZER
SEASONALITY PROMOTIONS
CHANNEL MANAGEMENT AND VIP DEALERS
LOYALTY
ON LINE PRESENCE
AGGRESSIVE PR ACTIVITIES
INVESTMENT IN SERVICE
ENHANCE DISPLAY AT WS SEGMENT
CONCEPT SHOPS

LG electronics-best utilization of showrooms

LG Marketing Outline
27, 4%

40, 7%
45, 7% 170, 27%

30, 5%

225, 36%
85, 14%

branding strategic products seasonal tactical channels

display service on line others
PRODUCT BRANDING
ACTIVITIY OBJECTIVE TIMING BUDGET
BRANDING WM Focus on USP...Number One, go high end 10Kg MARCH
JUNE
SEP
BRANDING REF Focus on USP, widest range, design
JUNE
JULY
AUG

DISH WASHER 1- Smart solution LG One touch JUNE

2- increase market share
SMALL APPLIANCES 1- Increase market share. MARCH
2- showroom support.
3- Pull strategy.
OUTDOOR GENERAL Brand power5 REGIONAL LOCATIONS Jan-June
BRANDING

TOTAL BRANDING
 SEASONAL PROMOTIONS
ACTIVITIY OBJECTIVE TIMING BUDGET
AC campaign Entry model June - July
Perception of price

Freezers Perception of price JUNE

LG national campaign win cars

TOTAL SEASONAL
 PR
ACTIVITIY OBJECTIVE TIMING BUDGET
PR CONTRACT 1- Enhance LG overall 12K
massage. Jan-Dec
2- Build a strong
perception
3- More credibility

TOTAL SEASONAL 12K

 SPONSORSHIPS
ACTIVITIY OBJECTIVE TIMING BUDGET
RAMADAN SPONSORSHIP Exposure End of July to
August
PRODUCT LUANCH EVENTS Launching new products April

TOTAL
CHANNEL MANAGEMENT
ACTIVITIY OBJECTIVE TIMING BUDGET
1- Increase dealer loyalty.
TOP 10 QUARTER MEETINGS 2- Strengthen relation April, June , December
3- Aqaba, Yakht.
hiring person to take care
VIP LOGISTICS of top dealers deliver, after 2012
sale services
Top of the line incentive trip
DEALER TRIP September
1500JDX20

HYPERMARKET CALENDAR Covering main calendar -

1- appreciate dealers top

dealers.
2- increase loyalty.
3- Strengthen relation.
END OF YEAR DEALER REWARD /
4- invite some employees to
appreciate there efforts in
2011

Total
 ENHANCE DISPLAY
ACTIVITIY OBJECTIVE TIMING BUDGET
CONCEPT SHOPS 2012
DEALERS

DEALER SIGNAGE 15 important locations 2012

Hypermarket concept shops -

Total
 Service
BUDGE
ACTIVITIY OBJECTIVE TIMING
T
Express service counter SB Rent, employee, production 2012

Express service counter Leaders Rent, employee, production 2012

Express service centre Irbid Rent, employee, production 2012

Express service centre Aqaba Rent, employee, production 2012

Total
 LG chain
ACTIVITIY OBJECTIVE TIMING BUDGET

Convert current general

Face lifting 2012
showrooms to LG chain

Waseet & Momtaz Weekly tactical

2012
during the year 40 + 40 ads

Total
For More Detail Please Budget
Appendix
The outcome

Strategic
partnership
leadership with main
distribution
Enhance
Sales

exposure
Thank you
Prepared;
Hamzeh Banat
Marketing Manager