Naiketing Stiategy

Lu Coloi Television

Market Segmentation

LG has segmented the m arket on the basis of the:
Geographic Segmentation
City size Metros, Tier 1, Tier 2, Tier 3, Tier 4 and rural

Demographic Segmentation
Income Low Income (Rs. 90,000 to Rs. 200,000); Middle Income( Rs. 200,000 to Rs.
500,000); High income (500,000)
Family LiIe
Cycle
Young, single; married, no children; married, with children; older, married;
unmarried couples.
Occupation SelI-employed, working proIessional, artists, unemployed, students.

Psychographic Segmentation
Socioeconomic
Class
Sec A1, Sec A2, Sec B1, Sec B2, Sec C, Sec D.


Behavioral Segmentation
Occasions Festivals, special occasions (like marriages), non Iunctional previous unit
BeneIits Picture quality, Sound quality, economy, durability, distinct look,
Loyalty Status Medium, strong
Usage based For homes, Malls, shops, hospitals, educational institutions

Targeting
Conventional TV
Geographic Segmentation

City size Metros, Tier 1, Tier 2, Tier 3, Tier 4 and rural

Demographic Segmentation

Income Low Income (Rs. 90,000 to Rs. 200,000);
Family LiIe
Cycle
Young single; married, older, unmarried couples.
Occupation SelI-employed, working proIessional, artists, unemployed, students.

Psychographic Segmentation

Socioeconomic
Class
Sec C, Sec D.


Behavioral Segmentation

Occasions Festivals, special occasions (like marriages), non Iunctional previous unit
BeneIits economy, durability
Loyalty Status Low, Medium
Usage based For homes, supplementary usage (additional TV)

Flat TV

Geographic Segmentation

City size Metros, Tier 1, Tier 2, Tier 3, Tier 4 and rural

Demographic Segmentation

Income Middle Income( Rs. 200,000 to Rs. 500,000); High income (500,000)
Family LiIe
Cycle
Young single; married, older, unmarried couples.
Education Illiterate, School upto 5
th
standard, SSC/HSC, Graduate, Postgraduate,
ProIessional
Occupation SelI-employed, working proIessional, artists, unemployed, students.

Psychographic Segmentation

Socioeconomic
Class
Sec B1, Sec B2, Sec C.


Behavioral Segmentation


Occasions
Festivals, special occasions (like marriages), non Iunctional previous unit
BeneIits Picture quality, Sound quality, economy, durability, distinct look,
Loyalty Status Medium, strong
Usage based For homes, Malls, shops, hospitals, educational institutions, supplementary
usage (additional TV)








Slim TV

Geographic Segmentation

City size Metros, Tier 1, Tier 2, Tier 3, Tier 4 and rural

Demographic Segmentation

Income Low Income (Rs. 90,000 to Rs. 200,000); Middle Income( Rs. 200,000 to Rs.
500,000); High income (500,000)
Family LiIe
Cycle
Young single; married, older, unmarried couples.
Occupation SelI-employed, working proIessional, artists, unemployed, students,
supplementary usage (additional TV)

Psychographic Segmentation

Socioeconomic
Class
Sec A1, Sec A2, Sec B1, Sec B2,.


Behavioral Segmentation

Occasions Festivals, special occasions (like marriages), non Iunctional previous unit
BeneIits Picture quality, Sound quality, economy, durability, distinct look,
Loyalty Status Medium, strong
Usage based For homes, Malls, shops, hospitals, educational institutions, supplementary
usage (additional TV)


Positioning
It is the 'relative competitive comparison' their product occupies in a given market as perceived
by the target market. Once the competitive Irame oI reIerence Ior positioning has been Iixed by
deIining the customer target market and nature oI competition, marketers can deIine the
appropriate points-oI-diIIerence and points-oI parity associations.
LG's Points-oI-Parity are with good quality Picture and good sound.
LG's POD is the better technology product with low cost.
Thus, LG is positioned itself as a high quality, technologically advanced and value-for-
money product.
Marketing Environment in 2011-2012
1) Politico-legal Factor:
O High import Duty
O Plants in tax incentive areas like Greater Noida and Pune.
O Export promotion schemes oI the Indian Government like EPCG (Export promotion
Capital Good scheme) and EOU (Export oriented unit) status.
2) Economic Factor :
O Increase in per capita income.
O Growing GDP: High Disposable income.
O Increase in spending power.
) Socio cultural Factor :
O They are manuIacturing eco Iriendly product.
O Increasing liIe style
) Technological Factor:
O Improvement in technology made the electronic product cheaper
O "uality oI product has increased.

Looking at the below chart, it is clear that the market share oI the CRT TVs is set to decline. At
the same time, that oI LCD it set to grow. Thus, there will be a shiIt in the company`s Iocus
towards Plasma, LCD, LED, OLED TVs. The company already has the technology Ior these, and
will be Iocusing on expanding the growth using the existing distribution network Ior CRT TVs.
LG try to keep the product innovative to attract the customers and to capture more market share.
However, the one oI the major weakness Ior LG is that its products are similar to its competitors.
India CRT-TV and LCD-TV Unit Shipment Forecast (Thousands oI Units)

2009 2010 2011 2012 2013 2014
CAGR (09-
14)
CRT-TV
Shipments
15,723 15,700 11,068 9,364 6,835 4,921 -20.7
LCD-TV
Shipments
1,500 3,297 6,615 9,676 13,846 16,428 61.4
Source: iSuppli, July 2010.



Goals and Objectives of LG 2011-12

Marketing Strategy:

LG believes that India can become one oI its largest markets. By 2012, India will contribute 10-
12 to LG`s global revenue, which would perhaps be the second largest aIter the US. India is a
diIIerent market and customer needs here are diIIerent. Now, they plan to begin a customer-
insight programme, based on which they will launch a new product platIorm in 2012. The
marketing strategy oI the Iirm, aims to Iocus on the premium segment oI the market that Ietches
greater margin opposed to volumes. Their mission is to double the sales volume and proIit by the
year 2012, which is emulated by their mission statement oI '2 by 12. The company also aims to
capture more than 50 market share, by the end oI 2012. The company aims to have 120
volume growth in the Ilat TV segment, with a turnover oI Rs.15,000 crore and 15 sales growth.


Establishing India as an Export Centre for all of their product categories

By 2012, they aim to increase exports Irom 12 to 30. India will play a crucial role in
competing with other export markets. As Indian consumption grows, manuIacturing will enjoy
scale oI economies. The cost oI competitiveness would come Irom quality, size and scale.

Retail Strategy in India: Concentration on expansion in the rural market

For LG breaking into the rural market will be the key Ior their growth strategy. Rural market is
more sensitive to brands. It looks Ior reliability more than urban market, and Ior this it is ready to
pay more. The recent surveys and research have shown that more products into their marriage
package. A rural insight team is in place. It has completed Iirst round oI survey, and the second
round will happen soon. Based on the Iindings, they will create ideas that will be put through
survey again Ior validation (quality interview) on how much the customer is ready to pay. They
will then narrow down to one or two critical Ieatures, which will go into their products and
marketed with the right communication

Manufacturing Strategy

Introducing a cell production system will allow LG to manuIacture large volumes oI a Iew
products or small quantities oI niche products, helping the company triple its productivity in two
years. In contrast to assembly line manuIacturing, in which a large number oI people work on
stages oI an individual product, cell assembly allows one person to assemble a TV Irom start to
Iinish. In order advance its global supply chain management, LG will control its supply network
in real-time and improve network visibility Irom supply to distribution.