LG Company Profile

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What is sales promotion

 Sales promotion techniques  Sales promotion strategies  Types of sales promotion

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Mission

 International ranking  Subsidiaries  Slogan  The symbol  The partnership  Strategic alliance  LG brand identity

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 Overview  History  Recent mergers and acquisitions  Headquarter address 

Vision

5.  Product categories  Product recycling

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Introduction To the Topic 3 | Page

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

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rebates

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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 

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Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage.

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Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.

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Price-pack deal: The packaging offers a consumer a certain percentage more of the  product for the same price (for example, 25 percent extra).

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Coupons: coupons have become a standard mechanism for sales promotions.

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Loss leader : the price of a popular product is temporarily reduced in order to stimulate other profitable sales

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Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for  delivery.

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On-shelf couponing: Coupons are present at the shelf where the product is available.

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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.

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Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption.

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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.

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Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.

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Contests/sweepstakes/games: The consumer is automatically entered into the event  by purchasing the product.

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Point-of-sale displays:o

Aisle interrupter: A sign that juts into the aisle from the shelf.

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Dangler: A sign that sways when a consumer walks by it.

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Dump bin: A bin full of products dumped inside.

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Glorifier: A small stage that elevates a product above other products.

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Wobbler: A sign that jiggles.

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Lipstick Board: A board on which messages are written in crayon.

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 Necker: A coupon placed on the 'neck' of a bottle. 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.

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Trade contest: A contest to reward retailers that sell the most product.

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Point-of-purchase displays: Extra sales tools given to retailers to boost sales.

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Training programs: dealer employees are trained in selling the product.

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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 enduser 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 8 | Page

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

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To respect human dignity

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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

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CEO

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Management

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Board of Directors

Executive Officers

International Ranking 

314th in the world according to Forbes Magazine

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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

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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 “Goaloriented, 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 labormanagement 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 16 | P a g e

7. HP 8. GOOGLE 9. GE 10.

INTEL

11.

NORTEL

12.

HITACHI

13.

PRADA

14.

RENESAS

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TOSHIBA

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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

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Promise

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Benefits

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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 19 | P a g e

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. 20 | P a g e

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 TerrestrialDMB 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, highdefinition 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.

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2002 - Merger of LG Mart, LG Supercenter, and LG Department Store into LGMart Co. Ltd.

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2000- LG-Caltex Oil Corp. merged with Hoyu Shipping

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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 21 st 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  Electronic s

LCD TV , Plasma Display , Display Panel, Color  Television, Home Theatre System, Music system, DVD Recorder/Player, MP3 & MP4 Player 

Home Appliance s

Room Air Conditioner, Commercial Air  Conditioner , Refrigerator, Washing Machine, Dishwasher, Microwave, Vacuum Cleaner 

Computer  Products

Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices

Mobile Phone

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Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset

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. 32 | P a g e

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 33 | P a g e

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 Airconditioning 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 35 | P a g e

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 36 | P a g e

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 airconditioning 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 37 | P a g e

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 38 | P a g e

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 nanocarbon 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; fullwidth 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 40 | P a g e

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. 41 | P a g e

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 . 42 | P a g e

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 43 | P a g e

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 44 | P a g e

 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 45 | P a g e

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 46 | P a g e

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 Ewaste

(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.

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Guidance for the disposal of End of Life Products:

Consumers

could

conservation

contribute

and

to

prevent

resource 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 49 | P a g e

throughout

the

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.

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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 ewaste to e-goods. Ask for free pick-up at 1800419-3283(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.

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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 57 | P a g e

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 58 | P a g e

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 eMarketing.

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

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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 emarketing scenario. The first paper “From Retailing to e-tailing ” describes the four etailing 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 61 | P a g e

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 

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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 64 | P a g e

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 66 | P a g e

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. 67 | P a g e

Research Methodology Research methodology is considered as the nerve of the project. Without a proper wellorganized 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

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www.lgindia.com

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www.google.com

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www.wikipedia.com

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Business world

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Business today

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LG magazine

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Economics times News paper 

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Times of India

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