Different marketing strategies used by LG electronics

October 2, 2017 Marketing

Bing competitory and keeping a good place in the market is the most common end of organisations today. However, household consumer goods are really indispensable to our day-to-day lives, whether it is rinsing machine, a icebox or a Television ; these merchandises are a primary demand to most populations around the universe. But since the clients are looking for short bringing times, long period guarantees, invention, variegation and customization of merchandises with high quality and low-cost monetary values. It is difficult for companies to last in such competitory markets and maintain their client trueness.

LG Electronics was established in 1958 as Gold Star, the company started bring forthing wirelesss, Television ‘s, iceboxs, air conditioners and rinsing machines, with its invention and expertness it led the manner into making advanced engineerings and distributing its products/services worldwide like Mobiles phones and computing machines. In 2005, the company was ranked top 100 planetary trade name and by 2006, LG recorded a trade name growing of 14 % boulder clay now has became the universe largest plasma panel maker. ( LGE, 2011 )

LG has a diversified and advanced line of merchandises like:

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Home amusement as Plasma Television ‘s, LCD TV ‘s, LED Television ‘s, Home Cinema systems, Blu Ray Disc Players, DVD Recorders, Notebook PC ‘s, Desktop PC ‘s, Computer Monitors and MP3 Players.

Home Appliances such as Washing Machines, Air Conditioners, Refrigerators, Microwave Ovens, Tumble Dyers, Vacuums Cleaners and security cameras all equipped with high terminal engineerings.

IT Products and Mobiles Phones. ( LGE, 2011 )

This study will look into the different selling schemes used by LG Electronics, its public presentation in the market, market portion, gross revenues and profitableness and will be concentrating more on the selling of a lavation machine utilizing modern-day selling tools and techniques.

SWOT Analysis:

The SWOT analysis is a utile tool for companies to place the internal and external factors that are favorable or unfavorable to accomplish the company ‘s aims. We will analyze LGE ‘s strengths, failing, chances and menaces in the market. ( A. Humphrey, 2011 )

Strengths:

LG is transnational company and has created trade name image around the universe

It is established in developed states but besides in developing states

It is the universe ‘s largest plasma panel maker

Has dependable merchandises, easy to utilize and modern merchandise design

Wide scope of merchandises to function all classs

Invests a batch in Research and Development to make the right merchandise for the consumers and fulfill their demands

LG is turning rapidly and deriving market portion trough invention and client satisfaction to retain its loyal clients

Diversifies fabricating locations in the Earth with fabricating unit in revenue enhancement inducement

Has the widest distribution channels in the industry, 47 subdivisions with 10000 trade spouses

LG was the first company to establish steam rinsing machines

Failings:

Samsung company offers the same merchandises and is a state and international rival

Trouble in operating complex machines due to the deficiency of preparation in ( Morocco )

Opportunities:

Fast growing of the place contraption market with the highest portion

Focus on Research, Development and invention to pull new possible purchasers and retain bing clients

LG received a patent for rinsing machine in Rep of Korea this might besides be viewed as a strength and a stronger trade name image

Low Energy Consumption oriented, this might pull more clients

Menaces:

Rivals are continuously bettering their merchandises trough invention and research ; this might do LG lose some of its clients

Fiscal crisis around the universe affects consumer ‘s buying power.

LG is comparable with its close rival Samsung in Korea and Worldwide

Price War with rivals

Cheap Chinese Products that might be an option in some states

Differential advantages

Fast invention as a competitory advantage:

”LG wants to do people ‘s lives richer, easier and better. Our end is to set a smiling on all our consumers ‘ faces. “ Smart engineering ” enables consumers to make things more easy and see things more deliciously. Consumers expect LG ‘s merchandises to incorporate the universe ‘s most advanced engineering, and that our hardware and package have been perfected. In add-on, they expect LG merchandises to work in ways that are simple yet smart. ” ( LGE Annual Report, 2010 )

LG has set highly high invention end, the company is taking for a mark of 30 % more than what its rivals can make, this besides means 30 % more gross revenues and increased market portion. This makes LG up to 3 old ages in front of rivals in footings of engineering.

Core Capabilities:

Here LG end is to offer engineerings that suits people ‘s demands, as it stated on its one-year study ” the nucleus end of our merchandise development processes is to make engineerings that enrich people ‘s lives. It flows straight from LG ‘s steering rule of “ making harmoniousness among people. ” Invention flourishes best when it anticipates or answers a demand that enriches people ‘s lives. We create merchandises that help people acquire more out of life, have more leisure clip, and experience more pleasance. We do this by ever understanding their demands and continually exceling their outlooks. ” ( LGE Annual Report, 2010 )

LG retains its clients by supplying them with long term guarantees ( 10 old ages ) covering the nucleus engineerings such as its rinsing machines. Its advanced engineering brings trust to its consumers by conveying the universe ‘s smartest largest capacity rinsing machines in the market. At the terminal of 2010, it launched an 11kg lavation with ” a new and advanced damping system and fixed outer bath. ” Beside the advanced engineering, LG rinsing machines and the other merchandise line of place contraptions fits absolutely into consumer ‘s lives, the company combines both merchandise design and simpleness that entreaty to the consumer ‘s sophisticated gustatory sensation. They besides have a particular series of rinsing machines with a line of photo-etched design with assorted colorss that attract most consumers and particularly immature homemakers whom are attracted to this fashionable design with the pleasance of touching the merchandises crisp engineering and characteristics that makes everything ideal and easy to utilize. ( LGE, 2011 )

LG Electronics has achieved a large market portion for rinsing machines and has shipped 10 million Washing Machines in 2008, Said Mr Young Ha Lee, President of LG Digital Appliance Company and announced its concern schemes for accomplishing the top places globally in this class with gross revenues of 7 billion USD by 2012.

Rootss of competitory advantages

Technical Resources:

LG relies on its Research and Development capablenesss and merchandise invention in coaction with world-wide applied scientists from companies like IBM. As it engaged the planetary concern services company IBM in Korea to plan a new ”customer-driven-process ” model to outsource its merchandise developing attempt. This will ensue in a higher rate of success for new merchandise development with dependable planning and monitoring and besides a faster clip to the market since the LGE Company is beneficiating from IBM ‘s efficient merchandise development procedure.

As LGE stated ( LGE, 2011 ) ”our future growing will be built on the combined strength of our merchandise invention and our apprehension of the client. With the aid of IBM ‘s procedure expertness, we are acquiring closer to recognizing that vision ” ( S. Choi LGE, 2011 )

Marketing Resources:

LGE relies on the trueness and trust of its clients and this trough efficient communicating tools with the cooperation of many celebrated companies worldwide like Best bargain. The company was the first trade name to patronize the 1999 World Cup of Cricket and besides in 2003.

LGE Introduces its new merchandises utilizing modern-day communications tools like Television commercials, Radio, Internet and hoardings in order to make more trade name consciousness in many states. The company has 10000 bargainers worldwide and more than 47 subdivisions, and this drama

Human Resources:

LGE offers diverse educational programmes to its employee ‘s trough acquisition centres worldwide, it focuses on favorable working environments that let its employees demonstrate their capablenesss at full. It besides focuses on person ‘s creativeness to make value esteeming diverseness of accomplishments. It rewards its employees based on public presentation, create equal chances built on trust among people without sing gender, race, age, faith or nationality, and therefore creates motive and committedness.

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