LG MARKETING STRATEGY

Executive summary

LG is a Multinational Company having its presence all over

the world. Then studies were made about LG’s corporate
history, its origin, developments, expansions, strategies etc.
The chosen area i.e. Advertising is discussed in the
subsequent sections. After studying about the company, a
rough idea can be obtained of how multinational or corporate
life is all about & how it works. These MNC’s have got a very
different way of handling the man power in the organizations.
They give such environment where an employ can think about
his growth and how to achieve it. The aim of the project was
to shed some light on the Advertising Strategies of LG
Electronics and to know about the stand of LG Electronics in
the market. The company profile, giving details about the sub-
divisions of the company i.e. Multimedia Division, Home
Electronics Division and Display Division is given; along
with a brief history of the company starting from 1958 to
2010 in the form of timeline is also given. The History helps
to understand the achievements or the accolades, the company
has achieved till date. For the research, a questionnaire was
designed and given to people so that choices could be given to
the people so that in return they could give their own personal
opinion. Data sources included both types viz. Primary
Sources like Interviews, Questionnaire, etc and Secondary
Sources like Internet, Reference Books, etc.

1
 COMPANY PROFILE

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.

LG Electronics chooses to promote harmony and build

constructively on a labor-management relationship rather than
an employee-employer relationship. This illustrates that

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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.
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.

3
 HISTORY OF COMPANY

The company was originally established in 1958 as Gold Star,

producing radios, TVs, refrigerators, washing machines, and
air conditioners. The LG Group was a merger of two Korean
companies, Lucky and Gold Star, from which the abbreviation
of LG was derived. The current "Life's good" slogan is a
backronym. Before the corporate Name change to LG,
household products were sold under the Brand name of
Lucky, while electronic products were sold under the brand
name of Gold Star. The Gold Star brand is still perceived as a
discount brand. In 1995, Gold Star was renamed LG
Electronics, and acquired Zenith Electronics of the United
States.

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.

4
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
2. Promise
3. Benefits
4. Personality

The Brands core Value that never changes.

a. Trust,
b. Innovation,
c. People
d. Passion

5
Mission
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.

Product Leadership
We are focusing on six development areas to become the
product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving

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 LG INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of

LG Electronics, South Korea was established in January 1997
after clearance from the Foreign Investment Promotion Board
(FIPB). LG set up a state-of-the art manufacturing facility at
Greater Noida, near Delhi, in 1998, with an investment of Rs
500 Crs. LG corporate office is located at Plot no.51, Udyog
Vihar, Kasna Road, Greater Noida, India. This facility
manufactured Color Televisions, Washing Machines,
AirConditioners and Microwave Ovens. ''Company is setting
up a chain of exclusive premium showrooms. LG plans to
launch 60 premium Brand Shoppes by the end of the first
quarter of this year. At present, LG has a total of 83 LG stores
across the country, of which 45 are shoppes and 38 are
exclusive stores. Brand shoppes will be placed in the premium
segment and the target audience will comprise buyers
interested in premium and high end products.
LG Brand Shoppe goes beyond the concept of a normal
exclusive store by having a more interactive environment and
additional lifestyle orientation on display so that the customer
can actually experience the LG products in his or her own
home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader
with 27% market share, is planning a brand new image. To

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attract inspirational and young consumers across India,
company will roll out a new marketing strategy. The exercise
will cost the company Rs 360 Cr.
LG Electronics India is the fastest growing company in the
consumer electronics, home appliances, and computer
peripherals industry today. LG Electronics is continually
providing, superior technology products & value for money to
more than 50 lakh households in India. LGEIL is celebrating
the 11th anniversary this year. LG Soft India the innovation
wing of LG Electronics in Bangalore is LG Electronics'
largest R&D centre outside Korea. We at LGSI focus on niche
technology areas such as mobile application development,
digital video broadcast and biometrics software and support
LG Electronics with our expertise.
Motivated by a passion for technology, a strong work culture
and loyalty to the organization, we are determined to see LG
become one of the top three brands globally. Prominent
consumer electronic company, LG Electronics Inc. has said
that it expects the sale of its products in India to up by 15 per
cent in 2008. Moon Bum Shin, managing director of LG
Electronics India has said that the company has earmarked 4.8
billion rupees for investment purpose in India this year. The
said money will be used to market as well as manufacture new
products.

LG Electronics, which is originally a South Korean Company

with branch in India, informed that its sales of GSM mobile
phones, color televisions, air conditioners and other household
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goods in the Indian market was to the tune of 95 billion rupees
($2.4 billion) in 2007.

As per Shin's estimate, the sales in 2008 would be around 110

billion rupees. In order to achieve its target, Shin said LG
Electronics will concentrate on catering to the high-end
consumer market which will help boost sales this year. India
churns out six (6) per cent of LG Electronics global revenues
of $42 billion. The Indian branch of LG exports to 40
countries

Challenges in India
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (Samsung,
Panasonic entered in 1995 in India).
3. High import duty
4. Compitition from local market players and other MNCs in
consumer durable segment.
5. Price sensitiveness of the Indian consumer

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 INNOVATIVE MARKETING STRATEGY

1. Launch new technologies in consumer electronic and home

appliances.
2. LG was the first brand to enter in cricket in big way a way,
by sponsoring the 1999 world cup followed it up in 2003 as
well.
3. LG brought in four captains of the Indian cricket team to
endorse its products. LG invested more then US$ 8 million on
advertising and marketing in this sport.
4. LG has differentiated its product using technology and
health benefits. CTV has “Golden eye technology” Air
conditioner has “Health air system” and microwave ovens
have the “Health wave system”.

Local and efficient manufacturing to reduce the cost

To overcome high import duties LG manufactures TV
refrigerator in India at manufacturing facility at Noida and
Pune. LGEI had already commissioned contract
manufacturing at Mohali Kolkata and Bhopal for CTVs. This
has helped LGEI to reduce cost. LGEI implementing the
“Digital manufacturing system” (DMS) as the cost cutting
innovation this system is follow-up to the six sigma exercise
LGEI had initiate earlier
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 STRATEGIES ADOPTED BY THE
ORGANIZATION

LG follows 10 commandments which are as follows.

1. Foster working environment-5S Environment
2. Fast execution is key to success
3. Transparent and fast communication-open communication
4. Update market -knowledge –Demographics
5. Win –Win relationship with the trade partners
6. Customer is the king
7. Even Billing –Road to ach supplier
8. Be in touch with the market (70% Market, 30% Office).
9. Plan and Execute annual marketing Calendar-Time to
market
10.Display share of 50% -to get 50% consumer share.

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 DISTRIBUTION AND MARKETING

The company has number of dealers and warehouses. They

have LG exclusive shopee. For the marketing of the products
a number of activities are followed
1. Exhibitions are conducted from time to time.
2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the
attention of the costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meting at
several time in the year
7. LG divide dealer in gold silver etc. category to know the
performance of the dealers.
8. They have their sales persons at various sub dealer store
and at mordent trade store for particularly for the promotion
of the LG product.
9. LG also uses the radio FM for the promotion activities.
10.Also provide capon and scratch card for festive season

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 CUSTOMER SERVICE

The best and the biggest international brands are here in India
–but the irony if it all: where is the after-sales-service? So
integral to a brand, so critical for its success and so taken for
granted in developed markets! In India, after sales service is,
for want of a better description, the pits. So what‟s stopping
the best companies from pulling out all the stops when it
comes to providing the best service? Do customers expect for
too much? Or is it that in India they don‟t really care. Brand
Equity fanned out to MNC as well as Indian consumer durable
companies, stockiest and dealers, analysts and market
researchers to get a feel of what‟s really keeping after sales
from being used as a cutting edge marketing tool in pushing
products across categories.

Customers support following the purchase of a product or

service. In some cases, after-sales service can be almost as
important as the initial purchase. The manufacturer, retailer,
or service provider determines what is included in any
warranty (or guarantee) package. This will include the
duration of the warranty traditionally one year from the date
of purchase, but increasingly two or more year‟s maintenance
and/or replacement policy, items included/excluded, labor
costs, and speed of response. In the case of a service provider,
after-sales service might include additional training or
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helpdesk availability. Of equal importance is the customer's
perception of the degree of willingness with which a supplier
deals with a question or complaint, speed of response, and
action taken.
LG also had a big problem of after sale service in India.
During my project I also came to know that after sale service
becomes the big issue in Pune region. Customers as well as
dealer were facing the problem of after sale service. Because
of this problem many dealer in Pune region were not ready to
sale LG product. So it becomes the big issue. But LG has
taken some solid steps towards improving customer‟s
perception and experience of after sales service. Because it
very important in competitive market to provide the best
service. L G Electronics has signed a memorandum of
understanding with 23 Industrial Training Institutes to
strengthen its after sales service in India. The company aims
to recruit 10,000 people by the end of this year as a part of its
branding strategy to focus on service and move away from
discounting. L G Electronics has identified eight states with
high after sales service call rates to ink the deals with the ITI.
Y V Verma, director HR and management system, LG
Electronics said, "The Company was trying to find a solution
for effective after sales service since last two years. There is a
huge need of trained manpower for the after sales service to
align with the company's expansion and focus on the GSM
mobiles and the personal computer segments."

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 MARKETING STRATEGY

Here is the detail of marketing mix of LG including its

product, distribution, pricing and promotional strategy.

LG PRODUCT LINE:- Since its initial years in India. LG has

focused on bringing out new models regularly in its product
range. In its 1st year of operation in India,
LG launched 70 models across a range of products. In 1997,it
introduce its Golden Eye Technology TV, which had a light
sensitive natural algorithm “eye” .
The “eye” respondent to the changes in lighting in the room
accordingly and adjusted color sharpness, brightness,
contrasts, tint & balance them automatically.

Thus, LG showed that it cared for customers ‘health through

its product. LG concern for health of customers was its unique
selling proposition (USP) in the Indian Consumer durables
market. Similarly, LG positioned its refrigerators as the
‘preserve nutrition system’ refrigerators. In 1998, the
company launched air condition as Health Air ACs.

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 PRICING STRATEGY

When LG started its operation in 1997, it sold product that

were imported. Hence, its products were priced high and were
equivalent to other foreign (Japanese ) products.
Industry analysts felt that this strategy was adopted To make
local consumer feel that LG products were by no means
inferior to japaness products in performance or quality .
However , in 1998, LG launched sampoorna its first low
priced TV for rural consumers and fallowed it with
CINEPLUS according to kim as the indian customer wanted
the best products at reasonable prices , LG started introducing
quality products in economy range In the first few years its
entry ,LG did not get into price wars . unlike other players ,it
did not offer any exchange schemes or discounts .

LG officials said that they believed in a ‘HONEST PRICING

POLICY” and its message to customers to read ‘NO
SCHEME,NO GIMMICK,GREAT PRODUCTS and
HONEST PRICE.

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 PROMOTION
LG gave immense importance to its promotion and
advertising activities . in 2004, the company spent nearly RS.
1.3 billion (5% of its revenue ) towards advertising . analyst
commented that LG’s promotion and advertising of its durable
segment were similar to that of an FMCG company . unlike
many indian brands which advertised seasonally (2-3months
during festivals i.e. September, October and November) LG
advertised all round the year .

SCHEMES & FREE TRIALS

For customers, though, the direct approach is preferred. The
advantage of an extended distribution network is that
marketing executives can keep a finger on the pulse of the
market. Promotions and finance schemes are designed to suit
the needs of local customers. In a small town in Uttar Pradesh,
for instance, LG offered select households a free 15-day trial
of a 50-inch flat screen television during the cricket season.
The TV set costs close to Rs 100,000, but several families
took the bait and considered buying the TV -- at which point
the showroom staff offered them carefully planned finance
schemes. Of course, it's not just the finance schemes that are
tailormade. LG has been careful right from the start to offer
customers a "valueplus" proposition. LG recognised the need
points to a basic characteristic of Indian consumers: "They are
very price sensitive. They want the best quality at reasonable
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prices." Accordingly, LG introduced its economy range in the
country, which would be "easily accepted".(Business
standard) The company was ready to do battle on two flanks:
it offered modern, features-packed products, at the same time
keeping its margins wafer-thin. Even competitors accept the
merit of the tactic. "LG has been a price warrior while
retaining its brand equity," and success is the result of hard
work and commitment. There's no miracle involved. The hard
work was on the features, which were carefully chosen -- and
adapted -- to appeal to Indian audiences. For instance, that
consumers in southwest India prefer big sounds and big bass
outputs.

NEW INNOVATIVE PRODUCTS

But that was in the past. "Economy" and "value-for-money"
are no longer going to be the cornerstones of LG's India
strategy. In the next five years the company will concentrate
on building itself as a premium brand, targeting 10 per cent of
its earnings from super-premium products. That includes
products like the Whisen range of wall-mounted air-
conditioners (Rs 50,000 and above), Dios refrigerators (Rs
65,000 and above) and X-canvas plasma TVs (Rs 100,000 and
above). LG has already set up 105 exclusive showrooms for
these products, with more in the pipeline. This year it will
spend upward of Rs 20 crore (Rs 200 million) promoting the
super-premium sub-brands. "High-end products need high-end
outlays," (Business Standard). The challenge now will be to
integrate the new incumbent's working style with the existing
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culture of the organization -- and work on the new marketing
strategy. If LG meets that head on, then, like its tagline says,
Life's Good.

FEEDBACK, SUGGESTIONS & ADAPTABILITY

Flexibility and adaptability have proved indispensable for LG
Electronics India, whether in the showrooms or on the shop
floor. At the Greater Noida unit, multi-product lines ensure
that in-demand products can be given priority in summers and
during the Diwali season, for instance, the line makes more
TV sets; during the winter, it switches to washing machines.
Of course, multiproduct lines come with their set of problems,
but LG encourages the shop floor workers to seek solutions at
their level.
Suggestions from workers on the shop floor have not just
helped improve productivity the line target is to increase TV
production from 2,600 sets to 4,000 a day, within the next
couple of months -- they've also helped in keeping costs
down,. Factory and customer service, the workers at LG are
better placed to offer suggestions on product improvements
because they're encouraged to experience life outside the
factory gates as well. Workers are routinely sent to do sales
stints at company showrooms and even to customers' homes
to service the products. This way workers on the line know
what problems the customers face and they also become more
involved with innovations on the line.

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REPLACEMENT SCHEMES

LG also introduced a replacement scheme where customers

could bring in any durable or electronic product from any
brand and get them evaluated. Once the evaluation is done,
the customer will get a cash voucher which can be redeemed
on the purchase of any LG product within a time period of
three months. LG First initiative was aimed at making up
gradation for its customers easier, which is a very significant
phenomenon in mature markets. This scheme proved very
popular in the market where people wanted to upgrade but
considered price as a significant factor. This would also help
build brand loyalty within its customer base.
LG used varied marketing arsenals and unleashed different
campaigns for different consumers in varied media almost
simultaneously. For Indian consumers, it's a matter of product
quality, and brand recall owing to high decibel
communication which makes them repose faith in the top
brands. LG has followed that message and wove messages
over multiple media channels, blurring the lines between ads
and entertainment. They have worked to make their brand
messages so enjoyable that consumers have seen them as
entertainment instead of an intrusion. One good example is
the nature of ICC Cricket sports sponsorship and Cricket
world cup 2007 LG has associated with in India. Cricket is
most viewed sport event in India and religiously tracked by a
larger population in TV or print media. According to its top

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management, this association has provided wide brand
exposure to LG in this ambush marketing campaign.

PRODUCT DEVELOPMENT
LG is aggressively working towards lifestyle research and to
make it aspiration brand. A lot of investment is being pumped
into consumer understanding and New positioning Statement-
LG strives to enhance the customer‘s life (and lifestyle) with
intelligent features, intuitive functionality, and exceptional
performance. Choosing LG is a form of selfexpression and
self-satisfaction. Our customer will take pride in owning the
amazing and take comfort in knowing he/she made a smart,
informed decision. A lot of investment is being pumped into
consumer understanding and lifestyle behavior. It is
repositioning itself by adding sheen to its designs, aesthetics
and the product line to suit the new age consumers.
These high-end products not only provide the right technology
but also suit the new age lifestyles of Indian consumer. Under
this new strategy, as an example, it introduced its premium
range plasma television Scarlet‘ and high-end washing
machines Steam Tromm and Top Loader to woo new age
consumers. To communicate the premium brand and make a
differentiation, company has come out with a brand new
communication for its entire home appliance range, breaking
away from its health platform, which was conceptualized in
1997. The campaign for new `Health Plus' for the home
appliances range will focus on intelligent and futuristic

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technology under the "Intello'' umbrella. The company also
plans to enter newer categories such as air purifiers, wine
cellars and built-in kitchens as a part of its expansion in India.

PRICE
Price is determined by a number of factors including market
share, competition, material costs, product identity and the
customer's perceived value of the product. LG already being
one of the leading brands in India and established quality in
terms of products and services has an advantage in setting up
premium price. It would also gain from the high end
consumers who are willing to spend more for a differentiated
and intelligent product as LG plans to roll out in its digital
innovations.

PROMOTION
Instead of pushing sales as it had been doing in the last
decade, LG now focus on creating a pull or demand. It has
moved away from discounts and moving towards high-tech
innovation and good customer services as the focus. More
trade promotions like exhibitions, trade magazines would be
used. The idea is not to dilute the brand equity by offering
discount but creating a buzz in the mind of customers about
the new product and invite them to be a part of ‗the new
technology‘. The same marketing communication of high end
user experience and functional benefits (i.e. digital, easy to
use, intra-connectivity) can be conveyed in the advertising
message on television as well as print media. Use of
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billboards and event sponsorship is also an effective way to
introduce the awareness of new products Replacing the
traditional four P's of marketing -- product, price, place and
promotion, LG India has designed its marketing mix to
improve the four A's -- affordability, awareness, availability
and acceptability. Its state of the art and massive production
facilities allowed innovation on manufacturing to introduce
products at low price points. It has customized promotional
strategies for rural markets meeting local requirements. For
example, to improve product acceptance, LG Electronics
developed a customized TV (cheap and capable of picking up
low-intensity signals) for the rural markets and christened it
‘Sampoorna‘. It sold 100,000 sets in the first year.

REGIONAL CHANNEL STRATEGY AND WIDE

DISTRIBUTION NETWORK
LG has adopted the regional distribution model in India. All
the distributors work directly with the company. This has
resulted in quicker rotation of stocks, and better penetration
into the B, C, and D class markets. LG also follows the
strategy of stock rotation, rather than dumping stocks on
channel partners. LG has over 46 branch offices and another
110 area offices across the country. LG had set a target of
developing 2,000 dealers in 2004, in addition to the existing
3,000 dealers all over India. Leveraging the India Advantag
It is sometimes maintained that the marketing system is
nothing but the consequent of a country’s social and economic

23
growth. The fact is that advertising is the main key tool used
to a country’s growth.
The basic concept based on ‘Telling and Selling’. One of the
‘5 M’s of an advertising program is Measurement. It denotes
how the results should be evaluated. Measurement can at best
be done around an audience/ customer’s ability to recognize
and recall the advertisement and the total impact formed them
by the overall image of the company that finally influence the
purchase behavior of the customer. The present scenario of
the FMCG has witnessed many a great advertisements in its
field. The major players hire top advertising agencies to create
memorable advertisements for their brands to enhance the
sale.

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 EFFECTIVE ADVERTISEMENT AND CONSUMER
ATTITUDE
A rather simple explanation of how a feeling – response
advertisement works is that people like it or dislike it is an
advertisement, and this attitude gets transformed to or
associated with the product in the advertisement. There is thus
the potential for a direct casual link between the attitude
towards an advertisement and the attitude and behaviour
towards a product. As noted in the diagram, feelings
engendered by an advertisement can create or influence an
attitude towards the advertisement directly, as well as
indirectly, through assessment of the quality of the
advertisement’s exceptional characteristics.
In fact, some researchers believe that attitude to the
advertisement really has two different components; an
effective one, reflecting the direct effect of the feelings
evoked by the advertisement, and a second more cognitive
one, reflecting how well is the advertisement made and how
useful is the advertisement. It is important, in understanding
how an advertisement ultimately affects consumer attitude; to
see what kind of attitude people develop toward the
advertisement itself.
If the feeling that the advertisement creates are positive, and
if the way the advertisement is made is evaluated favourably,
then the advertisement should elicit a favourable attitude
towards itself and vice-versa. In respect of the viewers of the
advertisement, the matter of concern is that, how far does it
influence them and how should it influence them in the right

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direction. Viewers of advertisement, who are the mass, have
got their own outlook and their own way of understanding.
The customers are to depend on the advertisements, only till
he gets the product. After buying and using the product for the
first time, comes the response to the advertisement. This can
be in three different levels viz
At the first level, when the consumers are fully satisfied, they
will respond favorably to use the product continuously,
subject to the price and the availability of the product.
Continuous advertisement in various media further influence
the listeners to build up a positive attitude towards the
product. This leads to the change in the consumption
behaviour of the society, which leads to a great level of social
and cultural change among the people in general. The next
level is the stage of getting dis-satisfaction by the consumers
on the use of the product, on persuasion by the advertisement.
This will lead to consumer resistance to the product.

The dissatisfaction at this state means that the quality or the

contents of the utility value of the product might not have
reached the height expectations created by the advertisement.
If the product or service at this stage is able to satisfy at least a
section of the people, then it can service higher and thus will
serve as forbidding factor. As far as the attitude formation is
concerned, this stage can be considered as a formative stage.
But if the product fails to reach, not even a section of the
society in total, it will lead to the product withering away
from the market in course of time. The third situation leads to

26
a stage, when the viewers understanding that the
advertisement misguides them or giving a wrong information
deliberately. Under this situation the viewer loses confidence
on the advertiser, producer and the seller. This leads to a
negative attitude on the marketing of the products of the
company in general.

The defects are to be brought to the knowledge of the

producer to give a chance for him to correct the mistakes, if it
is so. When there is no proper response for this complaint,
then it leads to earning discredit from the customers.

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 PRINT ADVERTISING OF LG

Advertising for ‘Door Cooling Refrigerators’ was a direct hit

because of its unique concepts & effective portrayal. The
punch line aired various models of electronics also cast a good
repo for the products. Some of them are like

o “The purest way to breath”.

o “For cool healthy air”.
o “Enjoy a wrinkle free view of the new millennium”.
o “Keeps your family healthy, day after day, after day”

The advertisements are also products based which, instead of

showcasing other features, highlights the unique features of the
products like: Golden eye, Flateron, Door cooling system for
refrigerators, Fabricare punch wash for washing machines, etc.

One of the most mandatory elements of any company’s efforts

is to cast an everlasting and permanent image in the minds of
the people through which they seem to recall the company’s
name and philosophy. In fact the creation of an attractive logo
is one of the great responsibilities upon the advertising head
of the company.

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No matter, the logo of LG was created suitably attractive
enough to fulfill its primary objective as well as doing much
more.

LG LOGO (THE FACE OF THE FUTURE

This symbol mark – the visual representation of LG is composed of

the letter “L” and “G” in a circle symbolizes the world Future, Youth,
Humanity and Technology. This philosophy is based on humanity and
represents LG’s efforts to keep close relationship with their customer
in the world.

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 CODE OF CONDUCT OF LG:

1. Responsibility and obligations to customers :

• Respect for Customers
• Creating Value
• Providing Value
2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations
3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
4 Basic Ethics for Employees
• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest
5 Corporate Responsibilities to employees

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• Respect for human dignity
• Fair Treatment
• Promoting Creativity
6 Responsibilities to society and country
• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation

They report that expectations for quality are based on ideals or

perceptions of excellence, whereas customer satisfaction
assessment comprise non-quality issues such as needs, equity,
perceptions of fairness etc. From the above concepts presented
above it can be inferred that performance of service delivery
can result in a level of customer satisfaction.

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 PRODUCT RANGE
TELEVISION

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REFRIGERATOR

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 LG ETHICS

LG, share and believe in two key corporate principles -

"Creating value for customers" and "Respecting human
dignity." Based on these principles and in the spirit of our
Management Charter, we strive to promote self-governing
management And its accompanying responsibilities. It is our
intention to uphold the principle of free market economy,
which embodies the spirit of fair competition.

We are committed to attaining our goal of becoming a global

leader, and as such we will continuously pursue mutual
benefits for our stakeholders on the basis of trust and
cooperation. LG is committed to act uprightly and make value
judgments in accordance to the code of ethics.

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 RESPONSIBILITIES AND OBLIGATIONS TO
CUSTOMERS
We highly regard the opinions of our customers in the belief
that they form the very basics of our business. We seek to
secure unconditional trust from our customers by
continuously providing them practical values. 1. Respect for
Customers We value the opinions of our customers and
validate their real needs at all times. Therefore we regard our
customers as the primary standard for our decisions and
conducts. 2. Creating Value We work to create value for our
customers for it is through customer satisfaction that we build
the foundation of our prosperity.

We continuously create practical values that fully benefit and

satisfy our customers. 3. Providing Value We are always
truthful to our customers, and are bound to keep our promises.
We offer top quality products and services to our customers at
reasonable prices and respond to their requests with speed and
accuracy.

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 FAIR COMPETITION

Our global business activities conform to relevant laws and

regulations of the host nations. At the same time, we employ
only fair and just means in securing our competitive
advantage in the global market.

1. Pursuit of Free Competition We uphold the principle of the

free market economic system. Therefore we pursue free
competition and earn our customers' trust through top
quality products and services. We compete fairly and
capably with our competitors, but do not intrude upon their
interests, or exploit their weaknesses.

2. Compliance with Laws and Regulations We conduct our

domestic and overseas business activities in strict
accordance with local laws and regulations, and with
respect for local business customs.

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 FAIR TRANSACTIONS

All business transactions will occur based on the principles

of fair competition with equal opportunities for all entities
to participate. We build trust and cooperative relationships
through fair and transparent transactions. Such
relationships are built with a long-term perspective for
mutual growth. 1. Equal Opportunity We offer equal
opportunities to all qualified companies seeking to become
our business partners. All applicants are registered and
selected in a rational manner following a fair and objective
evaluation process. 2. Fair Transaction Procedures All
business transactions are conducted under equitable
circumstances. The terms and procedures of the transaction
are to be sufficiently discussed between parties involved.
The use of prominence in position to execute an unjust
transaction is forbidden. Information required for
transaction is exchanged through appropriate procedures in
timely manner. Transaction results are evaluated on a
regular basis where complementary measures are mutually
taken. 3. Support and Aid for Business Partners We
support the long-term growth of our dealers and vendors by
enhancing their competitiveness through technological and
managerial assistance. We share the profits derived from
business innovations. We pursue cooperation with our
dealers and vendors in a mutual effort to promote a healthy
trading environment and maintain a fair trading system.

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 SWOT ANALYSIS

STRENGTHS:-

LG is a multinational company and a recognized brand

around the world.

It has successful established not only in developed

countries but also in developing countries.

LG products are reliable, easy to use, and have simple

designs which satisfy customers that's why LG have the
advantage of having loyal customers.

In LG Corporation the research and development has

given greaterimportance because to satisfy the customers
and provide the customers what they want the research and
development id required.

LG try to keep products innovative to attract the customers

and to capture more market share.

LG is at its growing stage and its growing quickly.

It is producing solid products which rapidly satisfying the

customers.

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WEAKNESSES:-

The big weakness of LG is that it has very few competent

employees mostly are not skilled and also there is no
training and development concern for employees.

Opportunities
The electronic market is expanding rapidly which is a
great opportunity forLG to expand itself in new market and
to capture more market share.
It also can expand its target market geographically and
socially both by introducing new products in existing
market and existing products in new markets.
Through the innovation in existing products it can attract
more customers because at present it is behind the market
leadership so to become a leader it has to make innovations
to attract potential buyers and retain existing customers.

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 METHDOLOGY

Research methodology is considered as the nerve of the

project. Without a proper well-organized 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
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strategy of investigation conceived as to obtain answers to
research questions and to control variance.
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.

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Data collection methods:

After the research problem, we have to identify and select

which type of data is to research. At this stage; we have to
organize a field survey to collect the data. One of the
important tools for conducting market research is the
availability of necessary and useful data.

Primary data: we collect primary data are as follow.

1. Questionnaires
2. Survey

Secondary Data :-

We collect secondary data are as follow.

1. Company’s profile
2. journals
3. Internet
4. Magazines
5. Newspaper

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 FINDINGS

1. The most important things is it is very difficult to meet

the individual person for a survey.
2. By calculating the display share we found that 100% of
the consumer know about LG company.
3. According to the survey 70% Customer are satisfied in
services.

4. 60% people purchases the LG product in exclusive

showroom.

5. And they also say that is product is also good compare

than other company product.

6. Some of the customer are brand loyal for LG company.

7. They want to buy from the showrooms or from co.

showrooms. For them service is important .Beside
convenience and other factors service is key factor.

8. Also majority of customers do not want any financing

scheme for purchasing the durables.

9. The product is well aware and it is on top of mind of

customer.

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10.Customers are also now very choosy in buying the
product and it is important for the company to make loyal
customer of their brand

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 RECOMMENDATIONS AND SUGGESTIONS
1. LG should More improve it’s after sale service.
2. More detailed customaries service is to be provided.
3. LG Should also provide some extra benefit to his
customer.
4. LG Should also increase his customer.
5. LG should also increase it’s product demand.

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 BIBLIOGRAPHY
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times
News papers
Times of India

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