This study may not be achievable without the cooperation, guidance and support and of a few person and Organisation. University adopted Supervisor Mr David Gordon Lecturer, Department of Business and Law, De Montfort University, was the resource of the inspiration and motivation to this dissertation effort. He has provided vital assistance along all the way. His help is really immeasurable.In only 3 hours we’ll deliver a custom An Empirical Study of Marketing Strategies of LG in India essay written 100% from scratch Get help
Business Librarian, De Montfort University, is another resource to gaining this study. It has provided valuable modulation, books, Journals, Researches and too many efforts for this study. Teacher and staffs of the Department and the Faculty Dean are extremely helpful. Devoid of their assistance this study could not have reached its ultimate conclusion.
LG in Slough, Berkshire and other divisions of IT under the Hear office cooperated entirely to collect data for this study. LG employees helped with their openness, dedication and sincere desire to serve.
Encouragement, love and caring of my family ensured a working environment for such a project without disturbing the normal family routine. All the optimistic attributes of this dissertation have driven from those mentioned above. The conclusions or any other errors, omissions and mistakes within this dissertation are attributable just to the author.
This dissertation describes the perceptions & opinions of the International Marketing Strategy of Multinational Companies (MNCs) Using LG in India as a Case Study, factors affecting their drives & examination.
LG Electronics was founded on October 1, 1958, as a privately owned Company. Within a year of establishment, LG Electronics started manufacturing radios around the world with 77 subsidiaries 72000 employees. It was really one of the major giants in the consumer robust sphere worldwide. Besides that, the company has as many as 27 R & D centers and 5 design centers in different cities. Gradually LG has enriched it’s product line. Nowadays LG’s global leading products consist of residential air conditioners, DVD players, CDMA handsets, home theatre systems and optical storage systems. LG internationally believes in the values of “Great Company, Great People,” whereby only great people can construct a grand company. The company’s expansion strategy is based on “fast innovation” and “fast growth”, through three core capabilities such as product leadership, market leadership, and people-centered leadership. The company has a strong corporate culture fostering innovation, pioneering spirit and transparent management across subsidiary and considers to empowering employees to achieve leadership. [LG Electronics, (2006), LG Global]
LG’s Indian drives came to execution in January 1997 within the banner LG Electronics India Pvt. Ltd. In India it was established as a foreign company entirely owned subsidiary of LG Electronics, South Korea with the approval from the Foreign Investment Promotion Board (FIPB) of India. With the style of Industrial norms and tracks in a period of 4 and 1/2 months LG’s Indian operations signified as fastest ever-nationwide launch by the commencement of operations in May 1997. In 1998 LG introduced a state-of-the art manufacturing facility at Greater Noida, near Delhi with an investment of Rs. 500 Crores. This factory produces Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. At some stage in the year 2001 LG also inaugurated the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at same premises in Greater Noida manufacturing unit1. In the starting of 2003, LG introduced another product which is the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. LG Electronics India also gear up its second Greenfield manufacturing unit in Pune, Maharashtra in 2004, which started operations in October of the year. This competence manufactures Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens Color Monitors and GSM phones with a covering over 50 acres. [LG Electronics India Pvt. Ltd., (2005)]Academic experts
available We will write a custom Company Analysis essay specifically for you for only $16.00 $11/page Learn more
Rationale of the Research
The speedy enlargement of LG in India was really an alarming scenario. Worriedness comes with the first stroke of fall it’s Market in India in 2005. After establishment in 1997 the company’s market share was increasing in every year. But LG Electronics India’s market share seriously dropped in January 2005. In January even after the malfunction in sales LG’s market shares in refrigerators fell fractionally from 28.6 percent the previous month to 28.1 percent. It was really terrible of any other company to overcome such a crisis. But for LG, the Korean consumer electronics brand is still the preferred white goods brand in India across its types and sub-categories.2
That’s attractive well-mannered growth of LG in India going for a company whose first experience in the Indian market was nothing short of catastrophic. Before LG, there was some other the Korean company came to India as Lucky Goldstar. Lucky Goldstar started its Indian operation in the early 1990s, and the rules at the time didn’t permit foreign companies to start self-governing ventures. Thus Lucky Goldstar started its operation with two joint venture partners. The first joint venture ended bitterly while the second never took off from the ground. Indian Government was really heartfelt to attract foreign investors. As a result in 1997 the Foreign Investment Promotion Board finally provided the Korean company permission to set up its own factory to produce washing machines and refrigerators.
So, the need arouse to have an Empirical Study of Marketing Strategies of LG in India
Research Question and Objectives
Considering these matters in view, my research broadly aims to provide a synopsis of the key developments, to reflect on emerging trends, and to address some frequently asked questions about this literature. I attempt to keep the technical aspects of Marketing Strategies of LG in India, and focus instead on the key implications of this literature for MNC’s International Marketing Strategy research and practice.
To facilitate achieving the broad objectives as cited above, this study aims to attain following specific operational objectives:
- To clarify the role of Marketing Strategies of LG in India in equity valuation.
- To discuss about the Marketing Strategies of LG in India implementation techniques.
- To identify how the theory has been applied in empirical studies.
- To extend our understanding of the impact of International Marketing Strategy.
- To convey a deeper understanding of how Marketing Strategies of LG in India measures rules and firms’ economic fundamentals interact to determine.
- To determine the facilities that it offers over the marketing process.
Scope and Limitations of the Study
There are frequent developed in the MNC’s Marketing strategy. Although LG India is not yet implemented all over the world, basic information of Marketing Strategy that just disseminate information on Marketing Strategy of MNCs and services offered to LG India customers and the general public.3 Simple transactional Marketing Strategy that allow LG India customers to submit applications for different services, make queries on their account balances, and submit instructions to the LG India, but do no permit any account transfers; Advanced transactional Marketing Strategy that allow LG India customers to electronically transfer funds to/from their accounts pay bills, and conduct other LG India transaction online. LG India’s current development situations, Marketing Strategy, products and services are getting more and more advanced and increasing in variety by providing information at the early stage to providing transactional activities.
The amorphous nature of the open-ended survey questions and the resulting free-form responses introduces opportunity for misinterpretation of the answers and creates the possibility of overly broad grouping of the responses into factor categories. The data from the surveys is particularly subject to these problems, Care has taken in analysis of surveys to keep as much of the empirical data as possible for review by anyone interested in replicating this study. The results were aggregated into standard factors as reported in the Findings section4.15% OFF Get your very first custom-written academic paper with 15% off Get discount
Time was also a limitation for this study. A greater response rate from the supervisory survey would have been desirable, as would a more systematic random sampling plan for the work force surveys. However, from the consistent nature of the results, this researcher doubts that a more refined sampling plan or more comprehensive research design would lead to significantly different conclusions.
Relevant Literature Review
Overview of the Topic
This literature review includes writings, research and scholarly opinion concerning the description, measurement and evaluation of MNC’s marketing Managers, Marketing Strategies of LG in India, introduction of the service and its impact of the functioning model of MNCs, LG as case study. It provides the background needed for evaluation of what International Marketing Strategy factors most significantly influence organisational success.
The views and opinions of contemporary Financial & Business writers concerning leadership, motivation of International Marketing Strategies and productivity are discussed. Together, the historical theories and modern approaches form a solid basis upon which to design a research study to further refine the causal relationships affecting workplace productivity.
Organisation of the Literature Review
The discussion portion of this review is organized into four sections. The first section describes historical and contemporary studies of MNCs Marketing Strategies. It centers on how MNCs actions are classified and how the higher-level International Marketing attribute traits with the charge.
The second section reviews the thoughts of more contemporary writers on effective Marketing Strategies and its impact within organisations. The writers selected represent a cross-section of marketing gurus, past and present organisational leaders and other mainstream marketing thinkers are included in this section is a presentation of the prescriptions of popular organisational writers concerning process actions leading to overall success.
The Third section reviews how MNCs marketing actions have been evaluated and assessed in the past and how those factors are related to organisational performance. It also looks at the role of leaders in attaining productive results within their organisations. Prescriptions for effective Marketing Strategies are presented, as are methods used to evaluate the MNC’s overall influence on the organisation.
The Fourth section summarises and ties together the philosophies, concepts, evidence, theories and practices discussed in this review. This section identifies how the existing theories account for causal relationships between Traditional Marketing and MNC’s International Marketing and overall productivity for organisational success.Get your customised and 100% plagiarism-free paper on any subject done for only $16.00 $11/page Let us help you
As a split field of economic theories the internationalisation theory has received much more attention in the past decade. This advancement took place for the rapid growth of MNCs worldwide as well as rapid globalisation of new economic activities in IT sector. The Marketing Strategies is one of the oldest concepts in internationalisation studies. To set up a model to analyse and evaluate MNCs’ performance a brief review of internationalisation theories is necessary.
Becker, K. (2005) mentioned that having the right product, at the accurate price, for the proper consumer is mainly important for companies engaged in international business. MNCs can produce different products for a number of foreign markets or sell a single more “Global product” in many countries. Two major competencies appear to relate to the ability to successfully struggle in foreign markets. These are also capability to efficiently meet the needs and wants of the targeted foreign market and the possession of a competitive leads.
Huczynski & Buchanan (2003) argued that advantages seem to be decreasing in international trade as a result of technology, information flow, substitute products and the ease with which an idea, resource or product can be relocated. Kotler, P. (2002) addressed that many companies and in some cases whole domestic industries have failed as a result of either a lack of understanding of international pricing issues or an inability to price effectively against foreign competitors. Attempting to understand the value a consumer attaches to a product and anticipating competitor’s strategies in the international environment provides complicated challenges.
Jobber, D (2003) remarked that just as pricing offers unique opportunities and problems, distribution systems have important roles in securing world markets. Distribution is increasingly being recognized as an important feature in gaining presence in foreign marketplaces. Companies involved in international trade now rely on distribution channels not only for the physical movement of goods across borders but for inputs into promotion, product modification and marketing research.
Simchi-Levi, D. et al (2001) clarified that international promotional activities cover the areas of advertising, sales, trade fairs, direct mail and public relations. As international competition increases it is expected that with it will increase the promotional budgets of the world’s MNCs. International advertising is extremely complex and the quest to develop international advertising is extremely complex and the quest to develop a global promotional campaign, for the most part, been unsuccessful.
LG Electronics India Ltd.
In January 1997 the South Korean electronics company, LG started its Indian operation as wholly owned subsidiary of LG Electronics. It is one of the most frightening brands in consumer electronics, home appliances, IT hardware and mobile communications space and so on. In India for last 10 years, LG has gained a premium brand positioning and is the accredited leading light for the industry.
In 2006 LGEIL has accomplished a turnover of Rs 8250 crores. LGEIL is more careful about the environmental pollution. Its manufacturing unit at Greater Noida is one of the most ecological units among all LG manufacturing plants in the globe. LGEIL’s subsequent Greenfield facility is located at Ranjangaon in Pune has the competence to producing Colour Televisions, refrigerators, Microwave Ovens, Optical Disc Drives and also GSM Phones. LG’s this factory is the India’s first mobile phone manufacturing unit and also Asia’s largest Optical Disc Drive manufacturing plant5. [LG Electronics, (2006), News Room]
Vision of LG in India
The vision LG Electronics for the 21st century is to become a factual worldwide digital leader through speedy growth and rapid innovation and to be known as a company who can make its worldwide customers contented all the way through its innovative digital products and services. LG Electronics has been striving for its mid-term and long-term goal to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010. LG india aim to make the most of their core capabilities of product leadership, market leadership and people leadership and improve their corporate culture of team work and fun workplace to achieve our mission of becoming “2 by 10”, which would be double of their sales volume and profit by year 2010. (LG Electronics, (2006)
As a brand LG is the market leader in India catch the attention of customers. In multitude and its Industry leadership status serves as a major factor in attracting workforce. Therefore LG has the capability to hire the best employees in the industry. As we all know requirement of trained and experienced professional with the preferred attitude is the need for the development of any organisation to survive and grow in this competitive surroundings.
To manage with the growing expectations of business and in order to give the organisation a ready for action edge to the business, in LG have aerodynamic the whole system by amalgamating the HR fundamentals with Information Technology and have implement some practices exceptional to LG.
After hiring these candidates, they submit their selves to exhaustive induction programme for period of 14 days under which the candidate is acquainted which each and every characteristic of the organisation. A thorough incorporation with HR & Business Processes department takes place and the formulation of a KPI is done within three days of taking the candidate involved. Customer Department Vendor Department communication also takes place.
LG as an organisation get hold of pride in the fact that they have the uppermost manpower efficiency and the lowest manpower cost in comparison to this industry. Communicate a disease to LG is benchmarked in terms of manpower costing. Workforces are given an opportunity to visit Korea on completion of a few Years in LG. Away from each other LG also has a family ambassador programme where a enthusiastic counselor goes to the workers house and talks to his family their tribulations etc. and tries to make their situation enhanced. All employees are served lunch along with the other senior employees so that no differentiation is made.
Transmit a disease to lunch is first served to workers and then to the white collar employees. On the earliest Monday of every month the workers meet the MD and 50 workers amongst of them get awards for stupendous performance. Above and beyond this there are casual clubs such as singing, games and yoga clubs which aims at removing employees stressing and building their taken as a whole personality. [LG Electronics, (2006), Internal Culture]
LG is the pioneer in this context. LG India has a highest range of products then any other Electronic appliance manufacturers. Its product groupings include Flat Panel Displays CTV, GSM & CDMA communication apparatus, Air Conditioners, Refrigerators, Washing Machines, Microwave Ovens, Note Books, Audios Vacuum Cleaners and LG Plasma Display Panels and so on.
LG Electronics has accomplished new magnitude of technological excellence among the Plasma Display Panel manufacturers. The PDP is accessible in sizes of 40, 42, 50, 60 and 71 inch globally. LG has world’s slimmest panel at 78 mm to the world’s biggest panel at 71”. LG is the only brand in India, which recommends “The largest range of models in the PDP grouping. The cutting edge technology such as Image fasten minimisation, Orbiter, Whitewash, Flexi PIP and double window screen are some of the facial appearance which makes LG’s PDPs the most excellent made Plasma Panels ever. [LG Electronics, (2006), Product Categories]
Corporate Social Responsibility (CSR)
With the arrival of globalisation in India the concept of Corporate Social Responsibility has come into view as one of the most significant aspects of corporate behavior. Admitting this responsibility is crucial for an organisation’s sustainable growth and future right of entry to the global market. A unambiguous corporate social responsibility (CSR) plan has therefore not only become an fundamental part of an organisation’s brand construction strategy but has also come into view as an vital tool to enhance the organisation’s credibility by attracting prospective investors and clients and make use of the best of industry talent.
At the same time as a leading corporate in India LG believes that corporate contribution to society when guided by self-interest results in long term benevolence building, and have therefore endeavored to presuppose responsibility for the needs of its people, the environment and the society. LG has constantly looked beyond its instantaneous business environment to address larger community issues. This concern bounces from the belief that an accurate corporate vision must squeeze the wider community rather than just customers, suppliers and stakeholders.
Beside that there is nothing unrealistic about LG’s CSR vision nor is it in conflict with hard-headed business intelligence. It is merely an understanding on LG’s fraction that the time, possessions and in-house professional know-how devoted in social development projects to pay rich dividends to the company and the neighborhoods in which it operates. Therefore at LG the message is very clear such as creating profits can go hand-in-hand with generating friendliness.
The slews of abundant inventiveness have been undertaken by LG ever since its commencement in India. The company has been aggressively involved in providing social benefits to the underprivileged sections of the society. LG also have a focused plan for providing healthcare services to the under fortunate children and also undertake animal health care and enhance professional skills to the jobless youth.
LG India has been working jointly with Prayas, a Delhi-based NGO by commissioning campaigns actions for the wellbeing and upliftment of disadvantaged street children. This programme provides those services in the field of education, health care, shelter, vocational training and other rehabilitation agenda. The company also attached with HELPAGE India, the country’s major voluntary organisation functioning for the cause and care of disadvantaged elder people. LGEIL also takes care of 24 villages in the order of Greater Noida out of which six have been implemented formally. The company has on its pay roll three doctors who appointment these villages daily and offer Free Medical Care that comprises of free check ups and a free allocation of medicines.
LG’s dedication to donate substantially to the community led to the creation of the ‘Tinkha,’ a community development club consisting of 10 people. It lately organized Blood Donation Camp and 172 employees donated blood in a day. LGEIL is also producing self-employment opportunities to the people in the form of tailoring, knitting and so on with the rally round of an NGO named Jan Shikshan Sansthan. LG is also communicating repairing training for the youth on refrigeration and CTV.
In the meadow of Animal Husbandry LG has appointed a veterinary doctor from World Buffalo Trust who visits a village everyday and provides medicines for the domestic flora and fauna. Recently a vaccine drive was also commenced to immunize all the animals in the 24 villages around Greater Noida and the drive will continue for the next 6 months.6
At a distance from the intended activities, LG has always contributed generously to sudden natural calamities such as recent Tsunami disaster and the Mumbai floods. [LG Electronics, (2006), Corporate Social Responsibility (CSR)]
LG Electronics India has re-iterated its commitment to being a socially responsible corporate citizen by arranging a special blood donation camp at their head office in Greater Noida on 17th March, 2007. This camp has being prearranged by “Tinka… A Hope” – LG’s Community Support Club and the collected blood through this camp has been given to Red Cross Society, New Delhi. Commenting on this stupendous attempt, Dr Yasho V Verma, Director HR & MS, LGEIL urged, “I’m indeed very happy and honored to get this chance to contribute to the society. These activities which are supported by our dedicated taskforce, have elicited a positive response from the society, and our company has gained tremendous respect for its genuine desire to benefit the community through various activities, a task we will always seek to undertake.”
These actions are a result of LG’s long-standing CSR vision. The company has been enthusiastically involved in providing community benefits to the underprivileged sections of the society. It also has a paying attention plan for providing health services to the under advantaged children, undertake animal health care and enhance specialized skills of the unwaged youth. 7
LG’s promise to add substantially to the community led to the configuration so many community development clubs in different parts all over India. LG’s commitments to enriching human life may not end with its technological innovations. LG always carry out the value of giving back to society with a variety of social programs that bring people together transversely cultures. LG is eager to build trust and secure business sustainability, which is only possible by becoming a responsible, and caring corporate citizen all over the nation.
Moreover all this LG India is one of the extremely few companies in this region that has an internal Energy, Environment, Safety and Health Department for the employees and communities. This function furnish to behavior like Energy Conservation, Environmental Issues, Work Place Fire and Safety as well as professional Health for the benefit of the employees in India.
Annual Maintenance Plan
LG Electronics has introduced ‘Happy Living Promise’ is an innovative way of life being offered exclusively by LG for its esteemed customers. By expanding this promise the company shows that they at LG always care for customers needs. It is a commitment that guarantees a complete independence from all uncertainties related to the product. Happy Living Promise ensures that we are always there at each step. 8
Under the ‘Happy Living Promise’ it is dictated that happiness is just a call away under this service plan. LG India provides a wide range of service network for 24 hours just to grace presence the Maintenance Plan to the customers. This plane also present a Professional Care dedicated to the customers. LG India ensures smooth functioning of customer’s product through assured maintenance stopovers. Get Lucky with LG also another version on this plane. It also provides completely genuine spares assurance means that the customers no longer need to worry over spares. LG also ensure Service Free Remission offer. LG Customers take pleasure in the benefits of No Claim Bonus Scheme, which is available under tremendous discounts on repurchase of Happy Living plan. [The Associated Press, (May 8, 2007)]
Rapid Growth of LG in India
From the very beginning LG India’s Market share has gradually increased in every year up to 2005. But its market share dropped in January 2005 — for the first time since the company was set up in 1997. But managing director Kwang-Ro Kim isn’t worried. “The dealers must have met their targets in December itself, so they took it easy in January,” he explains. Were any other company, the managing director’s insouciance would appear to border on foolhardiness. But this is LG, a company that can afford to take it easy.9
Even after the malfunction in sales in January — LG’s market share in refrigerators fell fractionally from 28.6 per cent the preceding month to 28.1 per cent — the Korean purchaser electronics brand is still the favorite white goods brand in India — transversely categories and sub-categories.
Whatever it is refrigerators, air conditioners, washing machines or colour televisions LG’s supremacy over the white goods market is complete (see chart). That’s pretty well-mannered going for a company whose first understanding in the Indian market was nothing short of catastrophic. In its earlier drive the Korean company came to India as Lucky Goldstar.
This was in the near the beginning of 1990s and the rules at the time didn’t permit foreign companies to start independent ventures in India. So Lucky Goldstar took on two fruitless joint venture partners. The first affiliation ended acrimoniously while the second one never saw the light of execution. The Foreign Investment Promotion Board finally provided the Korean company authorization to set up its own factory to make washing machines and coolers.
Rechristened LG Electronics, the new company a 100 percent subsidiary of the Korean Chaebol — swung into achievement and set of contacts a state-of-the-art manufacturing facility at Greater Noida, Uttar Pradesh. [Radhakrishnan-Swami, M. (2005)]
Markets insights applied in India
From the beginning LG has gathered familiarity in a huge number of abroad markets, elongating back over 30 years. Sinha, P. R. (2005) described “When I joined the group, in 1974, South Korea was still a poor country, a small market with around 45 million consumers.10 The barely way to make the company’s income grow was to export and look for foreign market. To push aggressively outside our home base was the ideology of Korean growing companies. Over those years LG has made a lot of mistakes in overseas markets. Gathering knowledge through that trial and error it was that experience LG brought to India. LG Management knew it was important to have experience whatever it is good or bad. For example not to downgrade the Indian market and instead to treat it just as seriously as LG would any developed market. That destined arranging a full strategy and put emphasis on exceptional products. As an integral part of the vision the most excellent technology, the greatest network, and access to the superlative people. There are many Japanese and Indian companies arriving in India but like other MNC’s businesses they typically put one foot in the water to distinguish if it is warm or cold. They have uncertainties to lack determination11. One of LG’s competitors for example freshly shifted its industrial unit to Thailand and is now delivering all its products to India from there. What’s been different about LG is that it made a complete devotion a very big investment from the start and including surroundings up two unrestrained manufacturing conveniences. [Sinha, P. R. (2005)]
Indian customers are supplementary complex than those LG has come upon in different countries. In distinction to consumers in Latin America for instance they are less easy to keep happy. Indeed anybody who believes that Indian consumers are only paying attention in price gets the wrong end of the stick this market. They are very well-groomed and want an excellence brand at a sensible price. Competitive price is a vital factor for this market. LG India has opponents with products that are 10 percent cheaper and consideration of the lowest price all that count up they would be number one. In more developed countries people might want to buy a set and keep it for only three years—but Indians want for a model that will very last ten years. The reality is that it is a bit more expensive doesn’t matter but provided the quality and service should be good enough.
Distribution Chain in India
India the raising tiger of Asia is a country with high population density. As a nation it is heterogeneous. It is important to have planning and re-sourcing particularly for each region of India. LG India therefore acknowledged a variety of strategic locations where they thought it would be feasible to set up administrative branch offices to handle local business needs and customers care at the same time for decisions making and to act as a self-regulating profit centers. Each and every one of the significant departments of the company are correspond in these branch offices such as marketing, and sales, accounts, logistics and customer service. These branch offices are distinctive from the retail outlets where LG products are essentially sold. The concluding consist of a mix of LG’s own recognized shops in some large towns shops where customers can buy only LG items and self-governing multi-brand stores for consumer electronics and consumer durables where LG products struggle with products from further companies.12
LG India is very calculative and practical to select its outlets. The locations LG chose for both the local offices and the shops were determined by the likely demand for their products and the feasibility of working there. For instance, it was always apparent that if LG could develop a presence in the interior in rural regions where 70 percent of the Indian population lives, LG would have more advantages. There are so many examples that before beginning of LG’s outlet or offices in some areas, those were identified as backward or dangerous region, but after LG’s operation, the become popular. Practically bbefore LG opened their branch office & steel Plant in remote Rourkela, people said that even Indians couldn’t go there because of the location and marketing situation. But after three years of LG’s operation, at length it went ahead and discovered Rourkela is a big town with plenty of buying potential. The same influence was used about Guwahati and Jorhat and so on.13
LG in India is fully equipped to go a long drive with the Indian Customers potentials. Not in the towns only, LG India’s growing rate in the remote areas is 50 percent. Indians now address LG as one of the quickest, most aggressive companies when LG now has 2 branch offices in more or less every big state in the country and 49 in all. It’s spread more widely across the country than most local companies that have been in business here for 30 years or longer race.
The main objective of this chapter is to identify how the chosen research methodology will match the main objective of the dissertation question and how it will be achieved. Essentially there are two types of research methodology; they are qualitative and quantitative research. While the quantitative research is carried out through obtaining primary data such as questionnaire, qualitative research is a research that is conducted through interviews and observations.14 Therefore, the method enables a researcher to explore the details of individual perceptions over phenomena.
The research approach that develops the methodology explained below is based on descriptive (qualitative) research theory and inductive reasoning. This is important to develop the foundation by which the research will be designed, conducted and consequently analysed.
Firstly, it is important to establish the research approach in order to create a significant qualitative methodology. The research approach undertakes a specific design that is “the overall strategy chosen to obtain the information required answering the research question” (Ghauri and GrØnhaug p 47, 2002). The research approach will review the types of research design and data collection methods. The research approach is built on logical relations and not just beliefs.
Descriptive research is used when the research question is understood (Ghauri and GrØnhaug 2002). In the research approach, the data measurements are dependent on the obtainment of required information and the quality of the information. The outcome of the research, therefore, is dependent on the measurement procedures used in the collection of the data, and this in turn is dependent on the types of data collection (Ghauri and GrØnhaug p 47 2002).
This is an important concept of qualitative research, where the description is either inductive or deductive. Inductive research begins with a question and seeks to describe it, and deductive research begins with the problem by working backwards to the answers. Therefore, this research uses the inductive approach to build the theory from the data gathered to explore possible conclusions towards LG India Modifications in MNC 18 and Marketing issues such as Phising & Pharming.
Primary research – Research Strategy
The selected research methodology is a descriptive interview with one manager at LG Electronics in London. To the authors believe the interviewer will obtain all the required information necessary to construct an entire “picture” of the impact that the introduction of International Marketing. This will be a structured interview that focuses on Marketing Strategies – Modifications in Supply Chain Management of the LG India and Marketing issues such as Phising & Pharming. Secondary research is to review published materials such as: articles previous researched etc. that would be analysed to gain a broader perspective of the issue. 15
This brings the question of research strategy. Combining the approach as an inductive, qualitative description with a well-established research strategy will allow for a better data analysis. In relation to research strategy, the field of strategic management is built on several different schools, including perspective and emergent approaches (Lynch 2002). The rational planning school defines the objective in advance by determining the current strategic position, and then using a prescriptive approach that exemplifies the strategic analysis, development and implementation (Lynch 2000). This is a strong foundation of the research as the perspective approach is a systematic method that follows in sequence (Lynch 2000). The emergent strategy, on the other hand, would form the strategy from trial and error, experimentation and discussion (Lynch 2000). This is used as a cyclic approach to a series of rationales instead of being sequential, and is most often seen in organisations where environment and strategy are constantly analysed (Lynch 2000). The strategy in this research is the rational perspective, where the data analysis and the final recommendations follow the sequential gathering of information.
Reliability, Validity of Interviews
Firstly, why an interview with an employee of the LG has been given a priority among other means of data collection? The main reason an interview with front line managers has been chosen among other probable methods is the author believe, that a discussion which intends to take place with one of the representatives of the organisation, in this case LG Electronics Pvt., India, would be more fruitful than any other possible means since these employees would be at the top awareness of relative to the research issues such as: what are the internal difficulties that the organisation had to overcome, and how do they plan to face future complications.
Saunders et al (2003) define an interview as “a purposeful discussion between two or more people,” and can collect data, which is both reliable and valid. Saunders et al (2003) describe a structured interview as using questionnaires based on predetermined and standard or identical sets of questions; a semi-structured interview as having a list of themes and questions to be covered; and an unstructured interview as informal but used to explore in depth a general area of interest. In this research, a semi-structured interview is used. The semi-structured interview is chosen because it allows for specific data to be discovered based on the manager’s perceptions.16 The semi-structured interview is useful in situations where the respondents’ range of replies may be estimated and there is a need to clarify details, opinions or ideas.
The interview will developed based on the following decisive criteria:
- What data should be wants to elicit from the interviewees;
- Who are going to be interviewed and why;
- How to explain the aims of the interview;
- Where the interview will take place;
- Whether to pilot the interview;
- How to analyse and follow up 20 the interview.
In an interview, questions should be clear and non-threatening; the interviewee should speak more than the interviewer. The interview avoids complex, double-barrelled, dichotomous and leading questions (Cohen and Manion 1994). According to Zikmund (2000), some ethical implications could arise when collecting data during interviews. The interview should not intrude into the sales staff’s personal life and assure that the analysis maintains confidentiality and anonymity if required. LG Electronics managers were selected as participants because preliminary meetings with representatives established that organisation stakeholders 21 would receive a beneficial description of internal difficulties and accomplishments that have arisen because (or in spite of) the management strategies being utilised in the subjects: LG’s Marketing Strategies; Supply Chain Management of the LG India. This will lead to recommendations and possible modelling of planning for overcoming future complications. The participants selected are two managers at LG India. One manager interview has been authorised, and the second interview is pending authorisation for middle to late December. The interview data will be collected through scheduled discussions with the managers selected. Managers were selected based on their schedule and willingness to participate. 17
The main issues, which are going to be raised during the interviews, are the following:
- Supply Chain Management (MNC). The author takes into account the discussion of MNC since basically the change or employment of Marketing Managers of multinational LG India is the evidence of MNC implementation. In this discussion, the author take several sources including world trade magazine, CPA Journal, VISA, official website etc as a base to a construction of a relevant questions which are to be addressed to the interviewer.
- Information of Marketing Strategies implementation in LG Electronics Pvt., India. In this discussion, the author will take primary resources from the company official website (http://www.lgindia.com) and one source taken from one of LG India’s vendors. Consequently, appropriate enquiries will be forwarded to the interviewer to gain an internal perspective of how, to the best knowledge of the interviewer, the company implement the systems and what were the short term and long term changes to which both the employees and the customers of the LG India had to adapt.
During the course of an interview all the data will be collected and before any actual analysis will take place the data will be pre-approved by the interviewer and a senior manager of the same LG India’s Branch. Once the approved been gained, all the irrelevant data, which has been collected during the course of the interviews, will be eliminated in order not to create any bias22.
For both the historical document research and the interview, the data analysis turns to ways in which qualitative information can be analysed. This analysis methodology, termed “laddering” (Reynolds and Gutman, 1984), for uncovering means-end hierarchies defined by these key elements and connective relationships. Laddering involves a tailored interviewing format using primarily a series of directed probes with the express goal of determining sets of linkages between the key perceptions across the range of attributes (A), values (V) and consequences (C). The theory of linkages is a foundation for the interview development. Therefore, the categorisation of the interviews follows as previously noted, where each has a phenomenology approach of describing situation and reactions and are categorised by attribute, consequence, and value. Attributes are the description of the environment and occurrences that will be explored using the inductive approach with a goal for a holistic explanation of the changes in management strategy. Values are the empirical evidence of why these changes occurred, such as what organisational goals created the changes in management strategy as related to the subject matter. Consequences are the results Marketing Strategis Modifications in MNC (Supply Chain Management of the LG India).
In the event of collecting data from the interview would not be sufficient enough for analysis and for of a conclusion. The research method would be changed and as formerly mentioned a qualitative method of a data collection for the analysis will take place. 18
A qualitative research methodology, especially non-participant observation methods such as questionnaire, published materials etc. will be adapted. The main reason for that option is the fact that this method will allow the author to carry out the research in shorter time. In addition, the reason of employing observation in this research is because it enables researchers with an understanding about the perceptions about things or people we observe. In order to prevent bias, this king of a research would integrate various acceptable resources mainly such as questionnaire and in addition magazines, journals and books that are written by well-known authors and researchers.
In this section secondary sources published materials such as Magazines, books and formerly carry out researches will be used to gain perspective at the internal and external difficulties that LG Electronics Pvt., India had to overcome with the introduction of the Marketing Strategies of MNCs and trying to answer a question what were the sort-term and the long-term advantages and disadvantages of the choices they made when incorporating LG Marketing Strategies in India24.
A questionnaire will be constructed and forwarded to the customers of LG Electronics Pvt., India. This will give a broader insight as to a response from the general public; the sample would include younger layer of society, generation between the ages of 18-24. The objective of this questionnaire is to gain an insight to customer reaction and participation in the Marketing activities, which would determine their level of trust, and in the Marketing provision of their LG India. The main issued that would be raised are:
- Modification in Marketing issues, necessary or not?
- The level of trust in the LG Marketing systems.
- Future trends and expectations.
- Advantages and disadvantages of the services provided.
Once the data has been collected once more all the irrelevant information and data will be excluded not to encounter a bias. The remaining data will be examined, compared and contrasted with previous research, in order to determine; on the scale of time how customer perspective concerning Market promotion activities shapes and what are the future trends of the correlation between the society (customers) and their LG India19.
Results / Findings
This section summarises and ties collectively the concepts, evidence, philosophies, theories and practices discussed in this review. This section identifies how the existing theories account for causal relationships between Traditional Marketing and MNC’s International Marketing and overall productivity for organisational success in aspect of LG India.
Pricing Offerings and Related Strategies
LG in India follows really an inflexible competition. To differentiate in this very teeming market positioning LG as a premium brand started with their technological and invention leadership. With a unique industry-leading products such as the first plasma and LCD HDTVs with build-in DVRs (digital video recorders); capitalize on LG’s global leadership in flat-panel displays, HDTV receivers and optical storage devices20. LG is the world’s major producer of flat-panel displays while the customers look at LG’s own plasma plants and the LG-Philips LCD production facilities united. These resources that LG can influence in their manufacturing expertise and efficiencies are by generating new innovative products that have stupendous performance. In today’s fast moving international marketplace the ability to swiftly address market requirements is also a great advantage LG India has. Furthermore customer’s product design has become a critical success feature in today’s market.
The new invention of flat-panel TVs is a perfect illustration. These sets are frequently mounted on walls where they become part of the decoration. As result the TV look fine-looking even when turned rotten. In this region LG is the pioneer and there is none to bit them. LG’s world-class design center has been at the front pose of product design for an integer of years. Instantly a key to LG’s achievement in the Indian market is to join efforts with retail partners who share LG’s vision of dynamic the digital transition and obligation to premium brand positioning. Enthusiastic branded retail stores appear to be the new “in thing.” LG goes this route anytime shortly. Their retail strategy in India is built on trustworthy relationships with key dealers who focus on representing the value-added features and technologies that LG carry to market. At this phase, we don’t really see impartial brand-specific retail outlets as a most important factor in the market. LG has prolonged itself too thin and that it’s hard to be a manager in one category and they have produce in so many unusual ones.21
LG’s approach to the Indian market is uncomplicated recognising its customer’s needs and desires, exploit our technology leadership to meet those needs and work to exceed customers. To the contrary, LG is focused like a laser on LG’s core technology areas, primarily plasma and liquid crystal flat-panel HDTVs. They have been de-highlighting rear-protrusion and CRT categories to dedicate more and more resources to leading the flat-panel sports ground. This is the fastest-growing subdivision of the consumer-electronics business in the present day. As one of merely a handful of companies worldwide with the in-house competence to develop and produce flat-panel modules or panels, LG is well-positioned to create ourselves as a top-tier player in the Indian market. Over the earlier period of two years LG has received frequent awards for product design and innovation for practically all categories LG’s compete in from categories as diverse as plasma TVs, DVRs, home theater systems and MP3 products, just to name a few. Further LG highlight our ability to compete effectively in a wide variety of manufactured goods categories with high-quality and innovative contributions. LG has it’s manipulate in everything. It’s decided which hardware product categories to enter by LG. Indeed, as a $45 billion global corporation, LG has a broad product collection and technology base to draw winning. This strong base of technical expertise allows us to deal with almost any emerging product grouping, not only with hardware, but also to help lead the way in digital union. As the technology becomes more complex it’s even more significant for us to design devices that are easy to use and that work well together.22
LG would like to identify itself as not a Korean multinational company a global company with regional headquarters around the world and a home office that happens to be in Seoul, Korea. In the coming years, an even greater portion of LG’s revenues will derive from sales to customers in countries other than Korea. To gather this, goal LG is increasing its operations by occupying local talent in key international locations. The LG of the 21st century will have a more and more cosmopolitan makeup that reinforces its global research.
Supply Chain at LG
The LG group calls attention to Research and Development to strengthen its position as a global leader to ensure the timely development of innovative products for LG’s principal and strategic business fields as well as new technological relevance. LG Electronics squanders between three and four percent of their yearly turnover in R&D
The R&D hard works of the LG companies are harmonized by the LG Technology Council (LGTC). The Technology Council is an internal technological and scientific consultative board formed by the Chief Technology Officers of the major LG companies that settle on the technological direction and strategy of the LG Group. LGTCE is the European extension and envoy of this Technology Council.23
LG Electronics India has plane to enlarge into such markets as consumer and office electronics, cable and wire production, oil processing, communications, construction, the TV business, security and safety systems, industrial electric equipment, semiconductors, credit cards, sports, entertainment and advertising, amongst others. LG operations and developed into one of the leading Korean industrial corporations and go through the global market.
Promotion Offerings and Related Strategies
LG Electronics is the pioneer in consumer electronics and mobile phones and PRADA, one of the world’s leading brands in the luxury goods industry. It also expose the first absolutely touch screen mobile phone. The PRADA Phone by LG (KE850) is an actual breakthrough in the industry as it is a unique, sophisticated and elegant mobile phone with the first absolute superior touch interface. LG and PRADA have worked closely jointly on every aspect of the product; from handset development to marketing coalesce the attention to detail and inflexible quality of PRADA design with the trademark technological improvement of LG mobile. PRADA’s association widen beyond peripheral aesthetics to the key elements of the user knowledge such as the advanced touch interface, ring tones, pre-loaded content, mobile phone accessories and, inspired by the classic Italian craftsmen custom.
Dr. Scott Ahn, President & CEO of LG Electronics said ‘LG are exceptionally proud of the PRADA Phone by LG”. He continues, “The two companies have worked together seamlessly towards a truly shared vision, to develop one of the most beautifully stylish handsets the market has ever seen.” After visiting LG Headquarters in Seoul, Korea, Mr. Patrizio Bertelli, President and CEO of PRADA, said: “As we do with ready-to-wear and accessories, we were looking at a break-through. Consistent with our approach, we are not branding an existing product; rather, Miuccia and I have been working with LG to give this new phone a very strong character and unique style, both in its contents and in its design. We, just like our partners at LG, are known for the attention to detail and uncompromising quality of our products. And we find these characteristics in the new mobile phone.”
The PRADA Phone by LG initiates the world’s first advanced touch interface which eradicate the conservative keypad making the in general usage experience a highly perceptible one. An additional wide LCD screen maximizes visual impact, allowing the user to benefit from several key facial appearance of the phone, including the mega pixel camera featuring Schneider-Kreuznach lens, video player and document viewing capacity. Above all, these features donate to the phone’s wonderfully glossy and basic appearance. Lustrous icons on the face of the phone evaporate when not in use to reveal a pure, complete black exterior. The phone is especially thin (just 12 mm); nevertheless it hosts a collection of supplementary disc functions, including an MP3 player and a music multitasking function for messaging. It also possesses an external memory slot, allowing the user to increase memory capacity for images, music and film clips. The PRADA Phone by LG will be obtainable with prices starting from 600 Euros in mobile dealerships as well as chosen PRADA stores in the UK, France, Germany and Italy as of late February, 2007, followed by countries in Asia such as Hong Kong, Taiwan, and Singapore from late March, 2007. The Korean version of the phone is programmed to launch in the second quarter of 2007.
LG’s promotion is affected by these features
- Capacitive Touch Screen
- Music Player (MP3, ACC, ACC+, WMA, RA)
- Music Multitasking (Messaging)
- Video Player (MPEG4, H.263, H.264)
- Macromedia Flash UI
- Document Viewer (ppt, doc, xls, pdf, txt)
- EDGE Tri-Band (900/1800/1900)
- 98.8 × 54 × 12 mm
- 2M CMOS Camera / LED Flash
- External Memory Slot (Micro SD)
- Innerpack Battery 800mAh
- Bluetooth 2.0, USB 2.0, USB Mass storage
Promotion offers by LG: –
Innovative marketing strategies
To make itself a known brand in the consumer electronics sector, LG has taken innovative marketing and promotional initiatives:
- Launch of new technologies in consumer electronics and home appliances.
- LG was the first brand to enter cricket in a big
Customer Satisfaction at Lg Electronics
LG is a business group operating around the world with 130,000 employees and an investment of US$81 billion. Commencement with chemicals in 1947 and electronics in 1958, LG is active in 4 business fields and they are Chemicals & Energy, Electronics & Telecommunications, Finance and Service. LG is at present the second largest Korean company and consists of 50 affiliated companies with some 300 offices and subsidiaries global. Through LG’s management philosophy “Creating value for Customers through Management based on Esteem for Human Dignity“. LG is striving to pursue quantitative and qualitative business superiority educating an image identical with customer satisfaction and generating a rewarding work environment. LG Electronics is the leader in consumer electronics and mobile communications, along with Air-Conditioning Company a joint venture stuck between LG and Saudi Arabian firm H.G. Ibrahim Shaker, distinguished the pioneering of their new air conditioner manufacturing facility in Riyadh, Saudi Arabia.
Notable attendees at the formal procedure included Mr. Young-Ju Kim, the Minister of Commerce, Industry and Energy of Korea; Mr. H.Y.Nho, President of LG Electronics’ Air-Conditioning Division, Mr. K. W. Kim, President of LG Electronics’ Middle East & Africa Region Operations; Mr. Hashem A.Yamani, the Minister of Commerce and Industry of Saudi Arabia; and Mr. Hussein Shaker, President of H. G. Ibrahim Shaker. 24 “Saudi Arabia is the biggest market in the Middle East,” said Mr. H.Y. Nho, President of LG Electronics’ Air-Conditioning Division. LG will build an absolute local business scheme from the ground up from product expansion to sales. We plan to further reinforce LG’s global network of air conditioning businesses and solidify our competitiveness in air conditioning markets by utilizing all regional production conveniences, together with this plant. “Mr. Nho added, “This new facility will have positive impact on Saudi Arabian economy while serving as a foothold for LG in the Gulf region. The new plant, the most recent air conditioner production facility in Saudi Arabia, is being constructed in Al Tatweer Industrial City, south of Saudi Arabia’s capital city Riyadh. It is predictable to start operating in the forth quarter of 2007 with an annual production capacity of 250,000 units. 25
LG and H.G. Ibrahim Shaker, which is the main home appliances distribution company in Saudi Arabia, grasp a 49 percent stake and a 51 percent in LG-Shaker, correspondingly. The joint venture will provide USD 35 million in two phases within 5 years: an initial investment of USD 15 million followed by an additional USD 20 million investment by 2011 to double production capacity to 500,000 units. The Saudi Arabian air conditioner market is mounting at an average rate of 7 percent annually. Moreover the market dimension was USD 693 million last year and is predictable to reach USD 748 million in 2007. The market size is additional predictable to grow to approximately USD 1010 million in 2011. Last year, LG had the largest air conditioner market share in Saudi Arabia with 22 percent, and the company looks to take hold of 25 percent of the market in 2007. By 2011, LG is looking forward to coagulate its leading position in Saudi Arabia with a 34 percent market share. LG has been the top provider of air conditioners globally for seven consecutive years and has sold more than 10 million units in the global market each year since 2004. According to a current report from Fuji-Keizai, a Japanese market research firm, LG confirmation total sales of more than 12 million units in 2006, comprised about 19.5 percent of the world’s air conditioner market share.
LG currently operates air conditioner plants in eight countries serving all major home appliance markets around the world. Production sites in Turkey, Poland and India supply products to the European and African markets; as a plant in Brazil provides for the North and South American region; and plants in Thailand and Vietnam serve the ASEAN Free Trade Area (AFTA). Additionally, LG’s Korean plant functions as its air conditioning technology global R&D center, while the plant in China focuses on the domestic market and exports. The new air conditioner plant in Saudi Arabia will be LG’s ninth air conditioner production facility worldwide. LG.
Brand Awareness, use and preference among Home Systems Integrators the aspire of LG’s innovative promotion is to go beyond traditional brand awareness and achieve cutting through by constructing an emotional attachment between LG and its consumers The arrangement of LG Electronics as an universal leader in electronic received a major enhancement in a market survey by Decision Support Consulting, a Nigerian research firm.26
LG was the merely company surrounded by Korean electronics makers that recognized a brand and the so-called “ferry marketing” is predictable to raise brand awareness among community. LG Electronics says its latest slogan would be… ‘on converting this high awareness to loyalty so that people become faithful to the LG brand’.
The survey, which analyzed the electronics market in Nigeria, exposed that LG Electronics (LGE) accomplish 26-percent increase in awareness from 19 percent in 2003 to 45 percent in 2004.27
According to the survey, LGE’s DVD players have a 40-percent brand awareness weigh against to only 15 percent in 2003. The company’s brand awareness in air-conditioners increased to 57 percent from 40 percent in 2003, while washing machines achieved a 21-percent increase from 39 percent in 2003 to 60 percent in 2004. The company’s PC monitor awareness greater than before from 16 percent in 2003 to 30 percent in 2004, and mobile phones achieved 8-percent brand awareness next to the 1-percent recognition achieved in 2003. The investigations, which also incarcerate market penetration of electronics products in the country from a sample population of 2,000, indicated that LG Electronics market infiltration in various product categories has also moved up amongst consumers. LGE air-conditioners had a verification of 15-percent market penetration in 2004 alongside 5 percent in 2003, while the washing machine category indexed 6-percent incursion against 4 percent recorded in 2000.
These are the illustrations of LG’s Brand awareness.
Analysis and Findings
Scrutinizing LG Electronics India’s impressive rise since 1997 is a wisdom incident for all managers around the globe who look for wealth further than their conjugal borders. In 1997 when CEO of newly established LG India confronted to be the top electronics company within 5 years, all and sundry laughed it off, nevertheless CEO Kwang-Ro Kim with his team of proficient did pull it off without a malfunction along the way. CEO Kwang –Ro Kim not only made the take it easy of the FDIs in India feel better regarding their investments in their upward economy but he also coached the businessmen of the globe about the significance of Localization. 28
Stating to be the top electronics company in India in a few years time Kwang-Ro Kim was laughed upon by the industry, which was conquered by the Indian companies and saw the Japanese manufacturers as the main intimidation. But this time approximately when Kim claimed in October 2004 about achieving $10 Billion in sales, they are not laughing anymore to a certain extent of panicking, thinking about how much more market share they are disappearing to lose. LG has grown to be the principal electronics company in India and it took them a little over 5 years to do so. LG is a leader or secure to being a leader in most of the sectors of the Electronics or Hardware Industry as it’s referred to. LG accomplished more than $ 2 Billion in sales in 2004 and to increase that 5 fold previous to the end of this decade give the impression challenging but LG has demonstrated it before and is bound to do it yet once more.
To scrutinize how LG will maneuver this alleyway towards $10 Billion strength be another successful experience but there are a lot of restricted access to conquer and will LG be able to do that is a very fascinating question. Another important psychotherapy about LG Corporation is about their Human resource arrangement, which is properly managed and goes behind some fastidious strategy while choosing the employee. The findings are described below:-
Person who faithfully hold on to foundational knowledge
LG is near enough such passionate with enrollment through its major subsidiaries, such as LG Electronics, India and other countries. LG will go aboard on a collective total of over 30 tours to hire over 600 internationally brilliant individuals with a master’s degree or a doctoral degree in the field of manufacturing, science and technology.
Person who is highly creative
It is vital to have a broad knowledge. Also, LG India strongly needs young creative people who are competent of applying their knowledge in order to generate new values and ideas. Artistic individuals should obstinately explore and try to find out new things and beat existing methods. They should attempt this not at desk but on the vanguard, not by awareness but by achievement and not using conceptual concepts but with practical innovative excitement.
Person with solid opinions
LG India necessitates people who have their own obvious viewpoints and get along well with others. LG India also need people who possess the merits of cooperation. We require those with sound thinking who will forfeit even themselves and will participate in many actions and thus donate to the society. We also need people who are genuinely honest, evenhanded and do their best to provide customers. A corporation that aims to be a ‘people company’ needs all these talented people.
Person who constantly competes to be the best
To compete with global superior corporations, LG India needs to supply of talented individuals who pursue the top spot. We need young people with a good command of foreign languages, and who constantly evaluate their main areas and objectives on the basis of their ability to embrace cultural diversity. Also, we need people who pursue the top position with a demanding spirit and broaden their perspectives.
Critical Analysis and reflection
LG’s Strength is the way they plan for their company. The strategy of their organization makes them different from other companies.29
Fast expansion is the consequence of strategies premeditated to expand and the earnings rapidly, at the same time as humanizing the growth rate in terms of economic value rather than quantity.
Speedy improvement involves surroundings of tremendously high innovation goals and sheltered a ready for achievement edge and aiming for a objective of 30% more than what LG’s competitors can achieve. Fast innovation also means 30% more sales and improvement in LG’s market share, new product expansion and presentation such products 30% faster by increasing technology and ascertain corporate value three years ahead of LG’s competitors.]
- Product Leadership
Product leadership indicates to the ability to expand or develop creative, top-quality products using dedicated new technologies. 30
- Market Leadership
Market leadership refers to the capability to accomplish the “LG brand is No. 1” goal, thanks and theoretician to its for-mixable market presence worldwide.
- People Leadership
People leadership points toward to talented and generous people, who carry out enormously well by internalizing and executing innovations.
Nevertheless a company may put into practice per-fact management strategies and boast concerning its exceptional and talented employees; it should accept a suitable corporate culture in order to give a free rein to the power of these capabilities.
- No Excuses
People leadership indicates to talented people, who perform enormously well by internalizing and carry out innovations.
- ‘We’ not ‘I’
LG people follow a corporate culture that gives confidence all employees to working together and outward appearance a strong team.
- Fun Workplace
LG generates a workplace where individual’s originality and freedom are appreciated and work is made fun.
LG’s Weakness are Building trust is the most emphasis because most of the work that is done at the Research Park requires sharing knowledge, technology and experience. It started what he calls a “mega challenge” to build a culture of trust at the Research Park and he has set for himself the goal of memorizing all the names and faces of everyone at the Research Park before the end of the year. It might seem impossible at first glance, but he has already memorized the faces and names of more than half of the employees. He even greeted two young female employees by name while taking photographs for this article, proof that such a promise was more than just lip service. But Yoo’s interest in the members of the Research Park goes beyond just remembering their names. He walks around the building every day to converse with them openly, showing great interest in their work and motivating them to do better. “They say that sharing halves your sorrow and doubles your joy. I want to make LG Chem Research Park an open place where even new employees feel that they can share their opinions without any hesitation. That will build trust and help us share our research work and output to make us one of the best research parks in the world and help us develop world-class technologies.”
LG’s Opportunities are the company and product names displayed are protected by the company’s trademark and registered trademarks.31
LG’s intimidation strength is the year 2006 presented them with a number of complicatedness including the appreciation of the Korean Won, high oil prices, and price corrosion caused by extreme competition. Previous year’s business result shows that their subsidiaries have kept great effort and some have failed to congregate expectations set for them by our shareholders and despite their efforts to overcome such hardships. The alarming thing is that LG’s pre-tax income in 2006 decreased 46% year-on-year to post KRW 401.6 million the major reason for the diminish is the weak performances of their electronics businesses that were exaggerated by the falling exchange rate and ever rising price competition. When factoring in the one-time unexpected income accrued in 2005, its 2006 income correspond to 10% decease.
Conclusions & Recommendation
- Due to enormous risk factors International Marketing Strategies recommended to be supported by LG India, anyone can evaluate the need for an MNC’s policy. It seems if we support our systems and are diligent with our 3rd party providers the risk for loss is highly mitigated. Thus we recommend LG India to outsourcing of different services
- Harmonious System Recommended for Standardisation. India construction MNC’s reported fast development in electronic Business transaction. An official with the LG said by June 30, the LG had 7.91 million International Marketing Strategies customers, of which 4.65 million were added in the first half of this year.32
The International Marketing Strategies of MNC mainly includes Internet-based marketing, a VIP service system, a call centre and mobile phone-based marketing.
The official said International Marketing Strategies is one of the priorities of MNC’s strategic development.
Indian bankers say electronic marketing is an area that will experience fierce competition between Indian and foreign banks. Eager for rapid expansion, foreign banks see it as the short cut to win large numbers of Indian customers in a short time and with limited investment. 33
- The most important design feature identified in for Marketing Strategies of LG in India are “quick access to information that customers are looking for”, it given the high frequency of users wanting basic account and after sales service.
- Online Customer service like maintenance activities are suggested to prefer to be done in through web page rather than person. The most important factors that contributed to carry out activities in person instead of online were preferences for dealing by means of people face-to-face, sites not contributing sufficient information, perceived risk and confusing terminology. A number of manufacturers have attempted to address these issues by implementing interactive capabilities such as secure chat and e-mail help.
The insights to be gained are empirical-behaviours in usage; observational-what strategies work; functional-how strategies work; recommendations based on benefits and limitations of LG in India. These principles can be used all the way through the organisation lifecycle in a continuous and flexible manner with the hope to maintain sustainable, accurate and proactive marketing strategies. The considerations of the benefits, methods and limitations will remove the assumptions in techniques that can lead to inaccurate or inefficient methods. Once the data has been collected by the above procedures, it will be assembled in the final research project to formulate a conclusive recommendation for marketing management strategy31.
This research proposes to generate an all-inclusive recommendation towards management strategic methods based on the participants’ responses, suggestions and concerns as well as a comprehensive case study through historical document analysis.
Becker, K. (2005), International Marketing, Web.
LG Electronics, (2006), LG Global, Web.
LG Electronics India Pvt. Ltd., (2005), About us, Web.
Radhakrishnan-Swami, M. (2005), How LG became No 1, Web.
LG Electronics, (2006), Vision, Web.
LG Electronics, (2006), News Room: LGEIL Release Details, Web.
LG Electronics, (2006), Internal Culture, Web.
LG Electronics, (2006), Product Categories, Web.
The Associated Press, (May 8, 2007), Benefits of LG Happy Living Promise, Web.
Radhakrishnan-Swami, M. (2005), How LG became No 1, Web.
Sinha, P. R. (2005), An interview with LG Electronics India’s managing director, Web.
Wortzel, L. H. (1979) Concepts and Sources for Teaching International Aspects of Product Policy, Chicago: American Marketing Association, No. 44, pp. 178-182.
Johansson, J and Thorelli, H. (1985), International Product Positioning, Journal of International Business Studies, Fall 1985, pp. 61-75.
Hughes, K.A. “Despite Rising Prices, Some Americans Remain Wedded to Imported Products”. Wall Street Journal, 1987. p 35.
LG Electronics, (2007), Vision, Web.
M., Julian, (2007), print mailto LG Electronics starts mobile phone production in India. Web.
The Manufacturer Zone (2003), LG Electronics, The big picture, The Manufacturer Magazine, UK Edition, Web.
- LG Electronics India Pvt Ltd., (2005).
- LG Electronics India Pvt Ltd., (2005).
- LG Electronics India Pvt. Ltd., (2005).
- LG Electronics India Pvt. Ltd., (2005).
- LG Electronics, (2006), News Room.
- LG Electronics, (2006).
- LG Electronics, (2006), Vision.
- The Associated Press, (May 8, 2007),
- Radhakrishnan-Swami, M. (2005),
- Sinha, P. R. (2005)
- Sinha, P. R. (2005)
- LG Electronics, (2006), Internal Culture.
- LG Electronics, (2006), Internal Culture.
- Ghauri and GrØnhaug p 47, 2002.
- Supply Chain Management of the LG India.
- Lynch 2002.
- Saunders et al (2003).
- If necessary.
- As managers, employees.
- Cohen and Manion 1994.
- Silvermann, 2000.
- Wortzel, L. H. (1979).
- With relevance to MNC and security issues.
- LG Electronics Pvt. India.
- Becker, K. (2005), Marketing.
- Becker, K. (2005), Marketing.
- Radhakrishnan-Swami, M. (2005), How LG became No 1.
- LG Electronics, (2006), Internal Culture.
- LG Electronics India Pvt. Ltd., (2005), About us.
- LG Electronics India Pvt. Ltd., (2005), About us.
- LG Electronics, (2006), Product Categories.
- LG Electronics, (2006), Product Categories.
- LG Electronics India Pvt. Ltd., (2005), About us.
- LG Electronics, (2006), Vision.
- LG Electronics, (2006), Vision.
- LG Electronics, (2006), Vision.
- Becker, K. (2005).
- Ramsaran, 2003.
- Among the organisations.