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Analysis of LG products in rural marketing

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  1. Introduction: Big tobacco's global expansion
  2. Global tobacco players
    1. Philip Morris, Bat and RJ Reynolds
  3. Factors responsible for overseas expansion
  4. Indicators of cigarette industry performance
    1. U.S. markets
    2. World markets
  5. Leading world cigarette markets on a country-by-country basis
  6. The cigar industry
    1. Players in the cigar industry
    2. The big four cigar players
  7. Findings about the US cigar industry
  8. Advertising ill health
  9. Legal position of smoking in various countries of the world
  10. Future of the tobacco industry
  11. The tobacco market
  12. Sports and entertainment sponsorship
  13. The free tobacco trade
  14. The network threats: NAFTA, WTO, and the MAI
  15. Framework convention on tobacco control - FCTC
  16. Conclusion

After the liberalization policy introduced by the Indian Government, a number of Multinational Corporation(MNC) came into India. Among the major companies, which decided to spread its tentacle in India, LG was the leading one. The year 1997-98 has been characterized a stiff competition period, but LG's sales and distribution have shown positive graph. During this period, the Indian industry grew by 10.2% compared to 4.3% in 1996-97. In this growth, LG's role was commendable.

LG entered and explored the Indian market in 1997. Its entry into the Indian soil has changed the market. There were also major players like Sony, Samsung, Philips, Akai, Sharp, Thompson etc. the biggest hit of LG was its colored TV, washing machine and other consumer durable products such as refrigerator etc.

espite all this the Indian companies have remained strong. The rate at which foreign brands are growing is only due to the fact of a dynamic business environment. Domestic TV firms are guided by objective of maximizing short run profit rather than long term growth and the firms competitive strategy is guided by product differentiation and price manipulation-Videocon's money back offer, Akai's price led wars, BPL's price consideration, Samsung's schemes- despite all this LG and Sony have opposed exchange offers and price led wars.

But all other domestic players have over ?reacted and this has diluted the strategic issues of technological innovation through customer after sales service and ads. The CTV domestic player has not understood the importance of technological innovation.

The coming in of the MNC's has created a new scenario with a new market profile. The entrenched position of the Indian market leaders in CTV's Videocon, BPL and Onida has been challenged by the MNC's such as Akai, Panasonic, Samsung, LG, Sony and Sharp.

[...] Home Tech Berlin 2002 - Better Life with Digital" LG Electronics Introduces Its Latest Home Networking Products at the Show - Home Tech is the world's largest home appliance exhibition held bi- annually in Berlin, Germany - LGE to launch Internet-based home appliances such as Internet DIOS and Internet washing machine to the European market through Home Tech 2002 - Tangible benefits including sales growth expected by building strong image as the digital brand and strengthened marketing efforts - Highlight LG as the high-end brand with display of premium level high-end products based on world-class cutting edge technologies LG Electronics is unveiling world class digital home appliance products at the Home Tech Berlin 2002 to be held from February 27 to March 3. [...]


[...] At present the average level of indigenization in LG products is about 45 per cent. The company hopes to increase that to 85% within the next couple of years or so, thus insulating itself from exchange rate volatility and crushing costs in general. The challenge is to cultivate high quality local vendors quickly. When LG first started making ACs in India, the indigenous component accounted for a mere 20 percent of the value of the final product, but within a few months, the figure shot up to 90 per cent level. [...]


[...] Generally it happens that the senior management is deprived of Indians in a transnational but LG did to want to follow this path, it wanted that the marketing division be headed by an Indian because he would be versed of the Indian market and cultures. Ultimately it is this which determined whether the company wants to make profits or obtain a market share. LG definitely wants to be the leader in the consumer electronics industry. Seeing the progress that the company has made in the past 3 years., it has revised its plans for becoming the number one consumer electronics company to the year 2003 from 2005. [...]

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