Transcript LG - ManagementParadise.com

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Introduction
History
LG In India
Major Landmarks of LG in India
Marketing Strategies
Executives
Vision
Mission
Business Divisions and Main Products
Introduction
• LG Electronics, is a global leader and technology innovator in
consumer
• The company was originally established in 1958 as Goldstar
producing radios ,TVs , refrigerators ,washing machines & air
conditioners.
• The L.G group was a merger of two Korean companies, Lucky
& Goldstar, form which the abbreviation of L.G was derived.
• L.G is the second largest producer in electronics , chemicals &
third largest producers pf mobile phones.
• Company has 75 subsidiaries worldwide that design &
manufacture televisions home appliances &
telecommunication devises.
Cont……
• LG has signed a long-term agreement to become both a Global
Partner of Formula 1™ and a Technology Partner of Formula
1™.
• By 2005 l.G was a top 100 global brand & in 2006 , l.G
recorded a brand growth of 14%.
• L.G is listed in greenpeace guide to greener electronic where it
ranked 12th out of 18th leading electronic makers in may 2010.
• L.G is employing more than 80,000 people working in over
115 operations around the world .
• Its central headquarters is situated in the LG Twin Towers in
Seoul, South Korea.
Cont……
• LG comprises of five business units - Home Entertainment,
Mobile Communications, Home Appliance, Air Conditioning
and Business Solutions.
• 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.
• The LG group is engaged in chemicals, electronics, and
telecommunications and services. Today they employ
thousands of people and their assets consists of a total of fiftyone companies, with nine in electronics, eight in chemicals,
and thirty-four in telecommunications with locations all
around the world.
Cont……
• LG Electronics is a Top 100 global brand that is a dominant
force to be reckoned with in the electronics industry.
• During the period 2001-2003 the company sponsored snooker
grand prix. During this years the tournament was known as
LG cup .
• As part of this top-level association, LG acquires exclusive
designations and marketing rights as the official consumer
electronics, mobile phone and data processor of this global
sporting event.
History
• LG Electronics is one of the world’s largest
manufacture of electronic product.
• The company started in 1947 under the trading name Lak Hui.
• Then by 1958, Goldstar was established by In-Hwoi Koo, who
was the founder of Lak Hui.
• The Goldstar made the first radio in Korea. The letter G in LG
Electronics today traces its roots from Goldstar its original
brand name.
• 1962, Goldstar radios were exported to countries like the
United States of America.
Cont……
• In 1965, Goldstar produced the first refrigerator in Korea. Then
the following year, they made Korea’s first black and white
television.
• in 1968, Korea’s first air-conditioning unit was produced and
followed the succeeding year.
• As shown here, when LG Electronics was still known as
Goldstar, it was already the pioneering home appliance
manufacturer in its native South Korea.
• In the 1970’s, Koo Cha-Kyun took over the leadership of the
company.
• Under him, Luk Hai changed its name to “Lucky”, therefore
forming the original meaning of the letter L in LG Electronics.
Cont……
• As a pioneer of electronics invention, they made the first
colored television in Korea in the year 1977. By 1978, their
exports reached US $100 million. They were the first to reach
this feat in Korea’s highly competitive electronics industry.
• Then in the 1980’s LG Electronics was already using the
initials LG to refer to Lucky Goldstar. It expanded throughout
the entire decade. The first European subsidiary was
established in Germany.
• In the 1990’s, the company was becoming more aggressive in
the international market. By early 1990, they put up an
Ireland-based design technology center.
Cont……
• It was in 1995 that Lucky Goldstar officially changed its name
to LG Electronics. In the same year, they acquired the USbased company named Zenith.
• In 1997, LG Electronics established a subsidiary in India.
• In the following year the company made the world’s first 60inch PDP TV.
• In 2000, LG Electronics launched a refrigerator that can be
bought through the internet. They were also becoming the
leading brand when it comes to LCD TV, mobile phones, and
computer hardware.
• In 2001, LG Electronics launched home appliances that can be
bought via the internet. These were LG Electronics’ newest
models of washing machine, air conditioner, and microwave
oven.
Cont……
• In 2001, LG Electronics launched home appliances that can be
bought via the internet. These were LG Electronics’ newest
models of washing machine, air conditioner, and microwave
oven.
• It also became the market leader in Australia’s CDMA market.
• LG Electronics also augmented their GSM mobile handsets
exports to European countries such as Russia and Italy.
• In 2003, it became the top global CDMA producer. Then it
also entered the Northern European and Middle East GSM
market. In 2007, LG Electronics demonstrated the world’s
first MIMO 4G-Enabled Technologies with 3G LTE .
• Then in 2008, LG no longer represents Lucky Goldstar but the
new company logo “Life is good”,
LG In India
• LG electronic India pvt. Ltd , a wholly owned subsidiary of
LG electronics , south Korea was established in January ,1997
after clearance of the foreign investment promotion board
(FIPB).
• LG set up a state-of-the art manufacturing facility at greater
Noida, Near Delhi, in 1998 , with an investment of Rs 500
crores.
• In 2004 LGEIL also up its second Greenfield manufacturing
unit in Pune , Maharashtra.
• LG plans to set up Rs 500 crores unit in south.
Major Landmarks of LG in India
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Feb’ 1997
May’ 1997
Jan’ 1998
Apr’ 1998
May’ 2001
Jan’ 2004
Oct’ 2004
Apr’ 2005
Jan’ 2007
Apr’ 2007
: Established LGEIL
: Launched CTV,WM & Refrigerator
: Launched AC
: Inaugurated Noida plant
: Started monitor production
: Started PC production
: Inaugurated Pune plant
: Started GSM production
: Started TFT monitor production
: 5 star energy rating for product
PRODUCT STRATEGY
• LG's objective is to provide world class product to upper class
and upper middle class to enjoy real luxury in their life .
• LG is a Korean brand and being imported from Korea, it has
very advanced features, which are normally demanded by in
developed countries.
• LG also insures that whatever product they market should be
durable enough which last quite many years and give trouble
free service to their customers
• It provides its refrigerators, five years compressor guarantee
and one year free service in spare parts under normal use.
Marketing strategy
• PRODUCT STRATEGY
• PRICING STRATEGY
• PROMOTION STRATEGY
PRICING STRATEGY
• LG pricing strategy is cost + fixed mark up to cover their GP.
Since they cater to upper middle and upper class .
• LG follows pricing policy in which their normal formula is
import cost + reasonable gross profit to cover their marketing
expenses and also give them reasonable profit.
PROMOTION STRATEGY
• Sales Promotion strategy is concerned, it is being designed and
implemented by their respective agent of each product .
• They offer very handsome incentives to their dealers, who in
return push their product among the customer and thus they
get their desired volumes
• Due to being a multi-national company and as a part of their
global Strategy they, most of the time, divert their funds from
strong market and spend more on weak or under developed
markets.
Executives
Yong Nam
Vice Chairman & CEO, LG Electronics
• Yong Nam was appointed Vice Chairman and CEO of LG
Electronics on January 1, 2007. His appointment signifies LG's
desire to achieve the status of a highly profitable,
technological leader with strong brand power.
Simon king
President and CEO / Home Entertainment Company
Cont……
Skott Ahn
President and CEO / Mobile Communications Company
Young-Ha Lee
President and CEO / Home Appliance Company.
Hwan Yong Nho
Executive Vice President and CEO / Air Conditioning co.
Soon Kwon
Senior Vice President and CEO / Business Solutions co
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 Electronics is pursuing the vision of becoming a true
global digital leader, attracting customers worldwide through
its innovative products and design.
Mission
• 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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Business Divisions and Main Products
• Home Entertainment:LCD TVs, Plasma TVs, Audio, Video, Optical Storage
• Mobile Communications:Mobile handset (CDMA/GSM/3G), Mobile Accessory, PCB,
WLL
• Home Appliance:Washing Machines, Refrigerators, Cooking Appliances,
Vacuum Cleaners, Built-in Appliances
Cont……
• Air Conditioning:Residential Air Conditioners , Commercial Air Conditioners,
Home Solution, Compressors .
• Business Solutions:Monitors, Commercial Displays, Car Infotainment, Security
Business
Global Financial Highlight of LG
Conclusion
• From a small South Korean company in the 1940's, LG
Electronic devices is now truly a worldwide leader within the
electronic devices market. Plenty of households do have their
products.
Bibliography
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www.lg.com
en.wikipedia.org/wiki
www.fourpxarticles.com
www.feeds.ezinearticles.com
www.highbeam.com
lgmodal.blogspot.com
www.vb.com
www.scribd.com
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