Title: MARKETING STRATEGIES OF LG Electronics India (Pvt.) Ltd. Objectives: 1.

To understand the marketing and advertising strategies of LG Electronics India (Pvt.) Ltd 2. To analyze their strategies and its effect on the corporate profile of the company. 3. To compare the strategies of LG Electronics India (Pvt.) Ltd with its competitors and to analyze its strengths. 4. To realize the role being played by advertising and promotion on the sales volume of the company. 5. To understand the future trends in advertising and marketing in LG especially electronic segment. 6. To Analyse the Advertising and Marketing strategies of competitors. SuggestionsLG Electronics India's marketshare dropped in January 2005 -- for the first time since the company was set up in 1997. But managing director Kwang-Ro Kim isn't worried.

"The dealers must have met their targets in December itself, so they took it easy in January," he explains. Were it any other company, the managing director's insouciance would appear to border on foolhardiness. But this is LG, a company that can afford to take it easy. Even after the blip in sales in January -- LG's marketshare in refrigerators fell fractionally from 28.6 per cent the previous month to 28.1 per cent -- the Korean consumer electronics brand is still the preferred white goods brand in India -- across categories and sub-categories. Whether it is refrigerators, air conditioners, washing machines or colour televisions -- LG's dominance over the white goods market is complete (see chart). That's pretty decent going for a company whose first experience in the Indian market was nothing short of disastrous. In its earlier avatar, the Korean company came to India as Lucky Goldstar. This was in the early 1990s, and the rules at the time didn't permit foreign companies to start independent ventures. So Lucky Goldstar took on not one, but two joint venture partners. The first partnership ended acrimoniously while the second never took off from the ground. In 1997, the Foreign Investment Promotion Board finally gave the Korean company permission to set up its own factory to make washing machines and refrigerators.

Rechristened LG Electronics, the new company -- a 100 per cent subsidiary of the Korean chaebol -- swung into action and set up a state-of-the-art manufacturing facility at Greater Noida, Uttar Pradesh.
LG: Looking great
Category Marketshare in volume terms LG Refrigerators Colour TVs Microwave ovens Washing machines No 2 player

27.2 21.2 (Whirlpool 25.5 15.1 (Samsung) 41.4 19.7 (Samsung) 34 13.8 (Whirlpool)

There's been no looking back since then. In October 2004, LG set up a second manufacturing facility at Ranjangaon, near Pune, which makes white goods as well as cellular phones -- the first GSM handset manufacturing facility in India.

Another facility, exclusively for GSM handsets, is being set up and will start operations in August. Turnover is also on the upswing: starting from Rs 150 crore (Rs 1.5 billion) in 1997, LG registered a turnover of Rs 6,500 crore (Rs 65 billion) last year and is targeting Rs 9,000 crore (Rs 90 billion) in 2005. Off with the oldLG's Green Marketing Strategy: Perhaps the most important step was to leave behind the baggage of the past. As Lucky Goldstar, the company's biggest fault was that it did precisely what other white goods brands of the 1990s were doing: some half-hearted advertising and pushing the products only when the consumer entered the store. Activities that "pulled" potential buyers into showrooms were conspicuous by their absence. Once it got the permission to operate as a wholly-owned subsidiary, though, all that changed. Within just five months, LG products were available across the country, compared to the average two years competitors took for a nationwide launch. An advertising blitzkreig followed. And the momentum hasn't let up since. LG is one of the most aggressive advertisers in the white goods industry, spending close to 5 per cent of its revenue on marketing activities -- that's Rs 130 crore (Rs 1.3 billion) last year. A close tie up with cricket ensured the brand building exercise would score well on consumer recall -- apart from signing on leading Indian cricketers, LG also launched a cricket game on one of its television models. Point of sales promotions were also extensively advertised to ensure customers were tempted to visit the stores. Importantly, for LG, a nationwide launch meant just that. A penetrative distribution strategy ensured that products were available even in smaller towns and cities, breaking the chain of urban dependency that plagues most white goods manufacturers. More than 65 per cent of last year's Rs 6,500 crore (Rs 65 billion) revenue came from non-urban sources; up from under 60 per cent the previous year. The industry average? Twenty-five to 30

per cent. Add the fact that the rural markets accounted for a remarkable 30 per cent of total sales and it's clear that LG's strategy is working. "We push rural marketing," agrees Kim.

Its product designs are centred on the middle & upper class and the ads screened highlight the product features. Its employees are totally committed to quality and innovation. They chant TPI 50 and TDR, which signifies, total productivity innovation and tear down re-engineering. Through this method the company is bringing down its costs & developed new products. LGs corporate image is that of being the Digital leader of the new millennium.

LG voted Indias most trusted consumer durable brand: Indian consumers have voted LG as the most trusted consumer durable Brand. This announcement made in 'Brand Trust Report 2012' by Trust Research Advisory, reflects the commitment levels of LG to provide quality products to the consumers. The report acknowledges Brands that the consumers put on the highest pedestal of Trust based on their conviction that the Brands provide unmatched quality products. With highest levels of innovation backed by breathtaking style and design and unparalleled performance, LG has been successful in winning the hearts of the consumers year after year.

LG's Green Marketing Strategy:

Green Marketing has become one of LG's Corporate Social Responsibilities. As part of LGs strategy to improve on the environment, Green Marketing has being employed by LG Electronics Company in the development and marketing of products like the LG-3D Plasma Cinema designed to minimize negative effects on the environment. The recent Green product is the LG plasma TV that has the energy star logo on it.

This energy star logo is an indication that LG Company is aware of the green house effect and therefore is participating in the reduction of greenhouse gasses by striving to produce energy saving products for its customers. Interestingly, environmentally aware consumers tend to earn more and are willing to pay more for green products, LG, Electronics has made it a prime concern to educate consumers on how to use the Green LG-Plasma TV.

LG bringing range of new Notebooks

LG has publicized its entry into the fast-growing notebook bazaar, especially to the Indian laptop market, with an assortment of new products.

The chic new notebook range, equipped with different innovative features, is priced between Rs.26,000 and Rs.66,780. The company also launched a 3D laptop and articulated it plans to introduce its tablet coming year. The notebook business in India would be one of the growth engines hoped LG President for South West Asia and LG Electronics India Managing Director Soon Kwon. He said, Notebook business is a key part of our portfolio globallywe expect this category to contribute 12 to 14 per cent in IT business by 2012. Our IT division is eyeing a 15 per cent growth in revenue terms and has targeted Rs.1,000 crore revenue by 2012in the current year, we hope to clock Rs.860 crore. We have chalked out aggressive strategy to invest 10 per cent of notebook business revenue in marketing by 2012 with a vast after-sales service network of 230 service centres across India. We also plan to launch the tablet in the Indian market by mid-2012, added Mr. Kwon. Sanjoy Bhattacharya, LG India Product Group Marketing Head explains some features of this new range of notebooks, such as a higher battery life, lightweight, scratch resistance and excellent exterior finish. LG notebooks are 65 per cent slimmer and 25 per cent lighter than other leading notebooks in the market. The new devices are empowered with powerful configuration along with latest and best-in-class components like second generation Intel processors and minimum 500 GB of hard disk, he said.

LG to unveil worlds largest Organic-LED and 3D LED TVs

LG is going to unveil the worlds largest Organic-LED TV and the worlds largest 3D LED TV in coming January at Consumer Electronics Show in Las Vegas.

The product of the second-largest South Korean conglomerate company following Samsung, may or may not be considered affordable, but the new television sets surely will be large and probably will draw attention at CES. Sang Beom Han, chief executive and executive vice president of LG Display, told the Times of India newspaper about the massive new Organic-LED, or OLED, TV set, Our objective has always been to actively define and lead emerging display technology markets. Although OLED technology is seen as the future of TV display, the technology has been limited to smaller display sizes and by high costs, until now. LG Displays 55-inch OLED TV panel has overcome these barriers, he added.

Board of Directors
The BOD consists of 7 Directors, 4 of whom are Outside Directors.The directors are elected in accordance wiith the Korean Commercial Code and other related regulations. The BOD operates independently of any influence from major shareholders and management. The Outside Directors are appointed by the AGM following review by the Outside Directors Candidate Recommendation Committee, to ensure fairness and transparency in the nomination of candidates. The Outside Directors are recognized professionals who monitor overall corporate management activities and provide substantial advice to management. The BOD actively provides recommendations for important management decisions and conducts unbiased evaluation and supervision of the management. In 2010, the BOD met 10 times to review 38 agendas (28 approved, 10 reported). The attendance rate by all BOD members was 97% (The attendance of the outside director was 100%).

Committees
The BOD is supported by three Board Committees. They are the Audit Committee, the Outside Director Candidate Recommendation Committee and the Management Committee. The Audit Committee consists of three Outside Directors, and is responsible for examining corporate financial records and accounting to ensure compliance with the accounting laws and transparency. The Management Committee reviews and determines the agendas delegated by the BOD and ordinary management activities. In 2010, the Management Committee reviewed a total of 52 agendas.

Evaluation and Compensation

Compensation for the BOD members is made within regulations pertaining to BOD compensation that has been approved at the General Shareholder's Meeting. The evaluation of management and executives of LGE is held annually. Top management and executives are evaluated to determine whether they have set and achieved challenging goals, whether their job objectives composed of quantitative and non-quantitative factors were achieved, as well as their capability through fair and objective process, and appropriate compensation corresponding to the outcome of the evaluation is determined.

Directors

Bon-Joon Koo Vice Chairman & CEO, LG Electronics Inside Director

View Biography

David Jung

CFO of LG Electronics (Executive Vice President) Inside Director View Biography

Yu-Sig Kang

CEO of LG Corp. (Vice Chairman) Non-executive Director

Sang-Hee Kim

Lawyer Outside Director

In-Ki Joo

Professor Yonsei University Outside Director

Kyu-Min Lee

Advisor SK Research Institute for Super Management Outside Director

Chong-Nam Chu

Professor Seoul National University Outside Director

Audit Committee
To ensure complete independence from the companys management and major shareholders, the Audit Committee is composed of three outside directors. The Committee's role is to examine various financial reports and enhance managerial transparency and fairness as supervisors. In addition, the committee members approve the appointment of outside auditors only after careful review of the candidates' professionalism, independence, reputation, capability, ability to audit international businesses, as well as possibilities of conflict of interest associated with the Company.

LG wins 11 design & Technology honors at CES 2011

At the Consumer Electronics Show (CES) 2011 sponsored by the Consumer Electronics Association (CEA), LG Electronics' strategic products such as smart TV, 3D TV, and the network Blu-ray player won eleven CES 2011 Innovation Awards including the Best of Innovations.
20122011201020092008 2011

[Best of Innovations / Innovations Award] Nano Full LED 3D Smart TV (LW9500)

LW9500 showcases LG Electronics' exclusive Nano technology with the ultra bright and clear full LED screen. This model features a thinner bezel that maximizes viewers' attention on 3D images and "TruMotion 480Hz" technology (playback speed of 480 frames per second) that minimizes dizziness caused by watching 3D images. It also received much praise for its easy and quick access to online content and won the Best of Innovations Award.

LGs honorees for the 2011 International CES are:

[Innovations Award] Nano Full LED 3D Smart TV (LW7700)

LG Electronics' exclusive Nano technology enables clear full LED resolution. Certified by Tomlinson Holman Experiment (THX), LW7700 produces high-definition, which give users the same experience as watching them in the theater. It is also equipped with Smart Share technology for easy wireless transfer of files from smart TV to smartphone or tablet PC.

[Innovations Award] 3D Plasma TV (PW350)

LG has incorporated its ultra-narrow bezel to maximize the screen display in the PW350, a display that is equally complimented by the elegantly coordinated construction of the surrounding frame and stand. Naturally, once the TV is turned on, the true power of the PW350 shows itself with 3D images that deliver startling color accuracy without giving into blur effects or roughness even during the most vivid and fast-paced action scenes. Among the specifications below, it is LGs patented 3D XD Engine that generates the magic within the PW350 and leaves the viewer wanting more.

[Innovations Award] Smart TV Platform

LG Electronics' smart TV platform NetCast 2.0 won the Innovations Award in the newly founded Online Audio/Video Content category for its convenient functions including the intuitive menus and accessibility to online content.

[Innovations Award] 3D Sound Home Theater (HX996TS)

To provide 3D sound optimized for watching 3D movies, "3D Sound Home Theater" uses dual subwoofers, the Digital Signal Process (DSP) chip, and the sound speakers (upper unit). It won the 2011 CES Innovation Honoree Award for excellence in the category of Integrated Home Systems.

[Innovations Award] Blu-ray Disc Player (BP650)

This versatile little BP650 Blu-ray players attributes can be summed up in just two words: powerful playability! Rigged with all the processing wizardry necessary to meet the high demands of life in the fast lane, the BP650 is fully wired and ready to go. And at just 1.6 inches in width, it can be slipped in most bags or packs with ease. The 9 inch screen is ideal for watching your favorite movies in beautiful HD definition, displaying colors and shades in all their brilliance and depth. MKV and DivX files are handled with equal ease, and connectivity to secondary devices is a snap with convenient HDMI and USB hook ups. The BP650 is also designed to let users enjoy online content to their hearts content through wired network access, adding even more tools and applications to the BP650s impressive repertoire.

[Innovations Award] Blu-ray Rewriter (BP40LS20)

LG is unleashing the first optical disc drive with BDXL, letting customers sample the new standard in Blu-ray bliss. The bright minds over at Blu-ray figured out how to cram 128GB on a single disc, which means that now you can watch your favorite trilogy in awesome Blu-ray quality without ever having to switch discs. However, the BP40LS20 ODD has more tricks up its sleeve than just great Blu-ray BDXL playback. It also includes a Power DVD bundle software package that takes standard 2D DVD titles as well as file-based videos and utilizes a sophisticated conversion process to convert them into 3D quality, all in real-time. This translates into more time on your part watching a wider selection of your favorite titles in vibrant HD and eye-popping 3D. All in all, the BP40LS20 will change the way you feel about movies.

[Innovations Award] LED LCD Monitor (E2290V)

Its small design makes it easy to be placed anywhere; the thinnest part is only 7.2 mm and the thickness equal to six CDs stacked on each other. The monitor also provides full HD (1920 X 1080) resolution and crystal-clear images with 10 million to 1 contrast ratio and 0.2 milliseconds of response time. It has High-Definition Multimedia Interface (HDMI) ports so that users can enjoy high-definition images on various multimedia devices. With its outstanding features, this product won the CES Innovation Award 2011 in the Computer Accessories category.

[Innovations Award] Top-Loading Washer & Dryer (WT5101H / DLEX5101)

This energy-saving washer by LGE features the ColdWash function which uses cold water for washing, yet has the same cleaning effects as using warm water. Based on LGE's innovative WaveFroce and Inverter Direct Drive technology, its 6-Motion technology provides delicate and thorough cleaning technique equal to that of hand-washing. LG Inverter Direct Drive has a 10 year warranty. The SlamProof feature makes the product child-friendly and safe. Its full color touch LCD panel and elegant colors provide convenience and aesthetic satisfaction at the same time.

[Innovations Award] Steam Front-Loading Washer (WM3885HCCA / DLGX3886)

This large-size washer enables large amount of laundry while saving energy. Using the 6-Motion technology, which is based on Inverter Direct Drive with 10-year-warranty, the washer delicately and thoroughly cleans clothing as if they are washed with hands. It also features energy-saving ColdWash and allergy-proof TrueSteam functions to increase customer satisfaction. It is available in various colors and its modern design goes well anywhere.

[Innovations Award] Dishwasher (LDF9942ST)

This eco-friendly steam dishwasher uses TrueSteam technology to efficiently clean leftovers which were hard to remove with conventional dishwashers. LGE's exclusive Inverter Direct Drive technology provides better cleaning results using less water and energy. It also features an LCD control panel and an EZ Rack system for easy stacking of plates with different sizes.

Project Study Report On

Measuring the effectiveness of display of LG product in dealers outlet

What is LG HomNet?
The LG HomNet integrates your home appliances. LG HomNet makes the lifestyle of the future a reality. LG HomNet will introduce people to the kind of lifestyle that was previously only possible in the movies or as a figment of the imagination, together with ultra-high speed Internet, artificial intelligence, and advanced robots. LG HomNet, a home network system, developed using state-of-the-art technologies from LG Electronics. You will be introduced to a new, pleasant and convenient 21st century digital living culture thanks to the smart networking of all digital appliances
The Philosophy of LG HomNet

"We are inviting you to experience a new way of living, which has been but a dream until now." Convenient Life There are many inventions in the world, like the light bulb, which provided us with a lighter and brighter world. LG HomNet aims to provide an even greater level of convenience. Secure Life Are you still only using your cell phone to make phone calls? Do you occasionally send text messages and play games? If you use LG HomNet, you can secure your home with your cell phone! Joyful Life Wouldnt it be great if your family could watch the latest movies with cinema-quality images and sound via the VOD service? You can live a joyful life with LG HomNet Affluent Life If you can do your shopping and banking at the touch of a button from the comfort of your own home, you will have so much more free time to enjoy life. LG HomNet helps you have more time to appreciate your affluent lifestyle.

Advantages & Values

Strengths of LG HomNet "LG HomNet has created a new digital living environment concept"
LG's digital home technology, which ensures a more convenient and secure living environment through the networking of various solutions and the latest communication equipment, is offering a new concept for a digital living culture.

Verified Practicality

Major domestic home builders adopted and verified LG HomNet on large scale housing complexes. Several pilot projects with major home builders in the overseas market have been promoted.
Easily Integrated

. New appliances can be easily integrated into LG HomNet. . Customized solutions can be easily provided to suit the customers life style.
Variety of Services

. The LG HomNet portal provides customized information services. . AV content sharing between digital appliances will be an added benefit.
The Worlds No. 1 Technology Standard

The worlds first networked home appliances have been commercialized. (2000) Full line-up of various networked home appliances is retained. Various technologies (PLC, private line, wireless LAN) and domestic/foreign standards are applied.

Special value exclusive to LG HomNet "LG HomNet provides the most special and most competitive value of the 21st century"
LG HomNet, which comprises the latest LG Electronics technology, is providing a more friendly and convenient digital environment, realizing customer satisfaction with regard to the most modern living environments and creating an image as a specialized supplier of the latest digital living environments for construction companies. This in turn raises its game to the highest level of competitiveness. Special value for apartment residents

. The value of the apartment increases as a result of the introduction of LG HomNet. . Lifestyle convenience is also increased thanks to automated systems, enabling doors to be opened via the TV remote control, for example. . Advanced security is ensured by means of anti-theft and disaster prevention systems. . A complete A/S based on personal visits is guaranteed.
Special value for management and construction companies

. The rate of sales is increased due to the provision of value-added apartments. . The brand value is increased through the supply of a Korean home network standard as well as LG HomNet appliances. . As Korea's largest home appliance company, LG HomNet stocks and displays the

greatest number of networked home appliances. . Joint marketing efforts with LG Electronics have resulted in strong promotional effectiveness. . LG Electronics has established global partnerships through overseas networking.

Policy & Vision

LG Electronics Policies
Our policies help to ensure that our Business Philosophy are put into practice in our day-to- day business. Here we provide a list of our policies linking to a brief summary of each one.

CSR(Corporate Social Responsibility) Vision & Strategy

Our CSR activities are an inseparable part of our strategies for sustainable growth and the accomplishment of our vision: World Best at Enriching Lives through Innovation. To this end, LGE has laid out the following strategic imperatives: Ensure that every management activity is carried out with a CSR-oriented mindset; Create differentiated value for stakeholders through innovation; Nurture win-win partnerships with all stakeholders in a spirit of mutual trust.

- CSR Governance
In 2009, LGE created the decision-making body, the CSR Committee, comprising of C-level officers, presidents of company and region representative, and chaired by the CEO. Subsequently in 2010, a strategic decision-making process was carried out for activities including membership of the Electronic Industry Citizenship Coalition(EICC) and announcement of Global Labor Policy. The corporate CSR activity plan and cooperation issues are also being shared and discussed on a regular basis through global CSR council which is comprised of the CSR committee members. Following the accession to the United Nations Global Compact(UNGC) in 2009, LGE joined EICC in August, 2010.

- CSR Risk Management

LGE is conducting CSR risk management for its Korean and overseas business sites using five criteria: labor, ethics, environment, health & safety, and management system, in accordance with the EICC Code of Conduct. To meet requirements, LGE conducted a Self-Assessment on 20 Korean and overseas business sites using the Electronics Tool for Accountable Supply Chain(ETASC) in early 2010. E-TASC is an online self-assessment questionnaire system by the EICC

designed for Information and Communications Technology(ICT) industry members to analyze their CSR risk management status. In late 2010, LGE selected four from 20 Korean and overseas business sites to conduct an on-site audit. Although no severe risks were detected, additional consulting and periodic monitoring were deemed necessary to improve such weaknesses as supply chain management.

- Stakeholder Engagement
LGE is actively responding to queries and interview requests from diverse variety of stakeholders, including customers and NGOs(38 cases in 2010). LGE is maintaining periodic communications with the academy, the industry and consulting agencies, and participating in various conferences on CSR management. To listen more closely to the expectations of stakeholders, LGE is holding stakeholder consultations with the aid of experts from the government, NGOs, international organizations, academia and the industry for specific subjects semi-annually since 2010. To improve employees CSR understanding and awareness, LGE is running a CSR training program every month for new employees regardless of work experience. LGE is planning to increase the number of employees to be trained in 2011. Since December 2010, CSR newsletters have been issued to department leaders(biweekly) in order to share the global CSR trend and LGEs CSR activities.

- Strategic Social Contribution

LGE has also continued to provide diverse social contributions in 2010 focused on sustainable solutions to the environment, poverty, disease, and the United Nations Millennium Development Goals (MDGs), put efforts into its poverty alleviating programs to include the Asia region, and sponsoring the Business for the Environment Global Summit.

Top Management Message

CEO Message

What is your opinion of sustainability management? The most important principle for a company to maintain its sustainability is essentially to secure competency in its field through sincere commitment to the basics. For manufacturers like us, the most important and basic competency is quality. Quality is our promise to the customer and it cannot be compromised. A company that fails to remain faithful to this promise will inevitably cease to exist. In addition to customer engagement, commitment to stakeholders is also the companys fundamental role, a responsibility that is no less important than the companys obligation to guarantee the quality of its products.

What are the major achievements of 2010 in terms of sustainability management? To successfully achieve sustainability management, it is crucial to establish a company-wide baseline. In 2010, we introduced a Global Labor Policy, establishing the companys baseline to over 120 worksites and offices worldwide. At the same time, we established a Supplier Code of Conduct to encourage our partners and suppliers commitment to sustainability management. In addition, we have been holding consultation meetings with our stakeholders twice a year to better understand their opinions and interests concerning our business. It is our aim to quickly grasp the markets and the stakeholders sentiments and respond in a proactive manner. I believe that the Union Social Responsibility (USR) activities being led primarily by the LGE labor union since January 2010 opens a new chapter in labors commitment to society.

What is future direction for LG Electronics sustainability management? It is essential for LGE to get back to the basics to achieve sustainability management. To neglect consistency and solely seek out the new and trendy is inconsistent with LGEs culture and business philosophy. We will continue to improve upon our competitiveness and conduct our activities based on the principle of building a sustainable company and harmonized community. At the same time, we will strive to promote a climate that values and respects LG Electronics Jeong-Do Management philosophy.