LG in rural india

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Presentation of international marketing : 

Presentation of international marketing On case study of By group maratha warriors Pravin munde (21) Nilesh tapkir (122) Dnyandeo nakhava(22) Shrikant kothawale(16) Sachin hundare (12)




LGEIL AT A GLANCE Establishment:- In January 1997. Manufacturing units:- At Greater Noida,Delhi and Pune. Managing Director :- Mr. Moon B. Shin LG Electronics India was ranked as No. 2 in the consumer durable sector  LGEIL will become one of the largest industrial houses in India and strive to become NO. 1 global company in India by2010.

Reasons for Entry into Rural market : 

Reasons for Entry into Rural market The urban market is a replacement and up gradation market today and facing Intense competition from local and global players The Rural population is nearly three times of the urban Large untapped Rural market (72%) Saturation in Urban market. The urban consumer durable market for products like CTVs, AC’s, & refrigerators is growing annually at between 7% and 10%. Whereas Rural market is growing at rate 25%

Slide 5: 

survey conducted by Business World in 2006, and given the following scores based on the different parameters: LG Electronics India

LG operates in following products : 

LG operates in following products Flat Panel Displays CTV GSM Air Conditioners Refrigerators Washing Machines Microwave Ovens Notebooks Audios Vacuum Cleaners IT Products Televisions

LG Entry into India : 

LG Entry into India In 1993 Joint Venture with Bestavision In 1995 Joint Venture with C.K.Birla group In 1997 Delicensing of Consumer Electronics Industry in India In Jan 1997 Establishment of LGEIL( LG Electronics India Ltd) In May 1997 Started Operations in India Imported Products from South Korea In 1998 Set up Mfg Facility at Greater Noida with investment of 500 crores

LG Entry into India : 

LG Entry into India In 2001 LGEIL become fastest growing company in Consumer Electronics, Home Appliances & Computer Peripherals Till Oct 2001 achieved Cumulative turnover of 5000 crore In 2001 Sale of One Lakh AC’s in a single year From 125 crore in 1997 Sales turnover to 2216 crore by end of 2001


PRODUCT OF LG GOLD STAR- 1993 LG electronics India pvt.ltd a wholly owned subsidiary of LG electronics, SOUTH KOREA was establish in Jan1997. After clearance from Foreign Investment Promotion Board.

Slide 10: 

Sampoorna- 1998 LG launch color TV with Hindi, Tamil, Marathi etc.on screen Display. Cine Plus-2002 LG launch special TV for rural market Extension for Sampoorna TV Sponsors In 1999 World cup cricket In 2002 world cup soccer In 2003 World cup cricket

Slide 11: 

Air conditioners(a/c)- In 1998 In 2001 company become fasterst growing company in consumer electronicsLG set Benchmark with 1st sale 1 lakh A/C in single year. PC production-2004 GSM production-2005 . A second factory, at Ranjangaon, near Pune—India's first facility for manufacturing GSM1 handsets—has been turning out white goods and mobile phones since . LG's Indian market share in GSM handsets is now 6 percent and rising.


MARKET SHARE LG's share of the Indian market (by volume) is currently 29.4 percent in refrigerators, 26.5 percent in color TVs, 35.8 percent in washing machines, and a crushing 38.0 percent in microwave ovens LG Electronics India has set itself a revenue target of $10 billion by 2010—five times the present level—as it positions itself to attack the fast-growing Indian information and communications...

LG’s Rural Marketing : 

LG’s Rural Marketing

Blue Ocean Strategy : 

Blue Ocean Strategy

Slide 15: 

According to Census of India (2001), ‘Rural’ as any habitation with a population density of less than four hundred per sq.km., where at least seventy five percent male working population is engaged in agriculture and there is no Municipality or Board.

Advertising and promotion trough 4 A’s : 

Advertising and promotion trough 4 A’s A vailability cceptability ffordability wareness

Slide 17: 

MARKETING STRATEGY The 4A approach A). Availability - Place

Availability : 

Availability 65 Remote Area Offices(RAO) and 60 central area offices (CAO)under the branch offices that are empowered with decision making authority, billing and collection. Distribution through FMCG distributers. Dealers had risen from 1000 to 15000 2003- presence in 3,823 cities.

Affordability : 

Affordability Reduce cost by replacing 4 speakers by 2, back woofer. Frost free refrigerator without twister tray. Prices of sampoorna 9000 --------} 5050

Awareness : 

Awareness Mobile Vans (Garam Garam Khana)

Road show van : 

Road show van

exhibition for TV sampoorna : 

exhibition for TV sampoorna

Cookery classes as part of promotion : 

Cookery classes as part of promotion

Acceptability : 

Acceptability Product localization is the key strategy used by the LG LG came out with Hindi, marathi, tamil, bengali and regional language menus on its TVs. Introduced the low-priced “Cineplus” and “sampooa” for the rural market.

Mouth publicity : 

Mouth publicity Big advertisement medium in rural market. Every day people gather at panchayat. If one consumer is not happy, entire village will know and company can kiss the market good bye.

Slide 27: 

LG has set up plant at Greater Noida with the latest technology at par with International standards. Apart from seven metros they have considered all the cities as rural and semi urban market. Rural market: 65:Remote Area Offices 60:Central Area Offices 01:Small Depot at every district of state. CAO and RAO offices were responsible for sales and profit. Decision –making authority was given to these offices. Facilities such as telephone and high speed Internet was provided. Distribution

Slide 28: 

Company has distributed the product through local FMCG distributors instead of Company-dealer-customer distribution chain Company has increased its direct dealers and sub-dealers in Rural market: Company has increased presence in towns from 1496 to 3823

Slide 29: 

Thank you

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