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TELEVISION

Television brands & supply chain

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Page 1: Television brands & supply chain

TELEVISION

Page 2: Television brands & supply chain

TELEVISION A television, commonly referred to

as TV, telly or the tube, is a telecommunication medium used for transmitting sound with moving images in monochrome (black-and-white), colour, or in three dimensions. It can refer to a television set, a television program, or the medium of television transmission. Television is a mass medium, for entertainment, educational television, news and advertising .

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INVENTION Philo Taylor Farnsworth (August 19, 1906 – March 11, 1971) was an American inventor and television pioneer.[2] He made many contributions that were crucial to the early development of all-electronic television

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History  History Mechanical television Electronic television Color television Digital television Smart television 3D television

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Display resolution

LD-Low-definition television or LDTV refers to television systems that have a lower screen resolution than standard-definition television systems such 240p (320*240). It is used in handheld television.

 SD -Standard-definition television or SDTV refers to two different resolutions: 576i, with 576 interlaced lines of resolution, derived from the European-developed PAL and SECAM systems; and 480i based on the American National Television System Committee NTSC system.

HD -High-definition television (HDTV) provides a resolution that is substantially higher than that of standard-definition television.

1080p: 1920×1080p: 2,073,600 pixels (~2.07 megapixels) per frame 1080i: 1920×1080i: 1,036,800 pixels (~1.04 MP) per field or 2,073,600 pixels

(~2.07 MP) per frame

UHD -Ultra-high-definition television (also known as Super Hi-Vision, Ultra HD television, UltraHD, UHDTV, or UHD) includes 4K UHD (2160p) and 8K UHD (4320p), which are two digital video 

Page 6: Television brands & supply chain

TELEVISION

BRANDS

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TV BRANDS

Page 8: Television brands & supply chain

LG Electronics LG = Lucky + GoldStar Co. Ltd

Lucky: sold household productsGoldStar: sold electronic products

Subsidiary of LG Corp. founded by Koo In-Hwoi

Koo In-Hwoi founded Lak-Hui (Lucky) in 1947 which became first Korean company to become public in 1952

As company expanded plastic business, it established GoldStar Co. Ltd. in 1958.

1995 – GoldStar was renamed as LG as Lucky and GoldStar merged

LG Electronics

Page 9: Television brands & supply chain

LG ElectronicsSlogan: Life’s Good, it’s a backronym

Expresses Brand’s Value, Promises, Benefits, Personality

LG Symbol Symbolizes world, future, youth, humanity, technologyTwo parts: LG logo in grey, stylized image of human face in unique LG red colorRed color represents friendliness and gives strong impression of LG’s

commitment to deliver the bestCircle symbolizes ‘Globe’, smiling face conveys ‘Friendliness, Approachability’Eye represents ‘Goal-oriented, focused, confident’

Product Categories: Mobiles, Digital appliances, Digital display, Digital media

LG Electronics

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LG ElectronicsLogo Changes

LG formed from 2 different companies named Lucky(chemical cosmetic company, 1947) and Goldstar(radio manufacturing plant, 1958) owned by same person

In 1995, Lucky Goldstar was renamed to LG Electronics

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LG ElectronicsLG India

Wholly-owned subsidiary of LG Electronics est. in 1997

Set up state-of-art manufacturing unit in Noida, 1998

LG Electronics India Ltd. (LGEIL) is consumer durables market leader with 27% market share

LG Soft India: Innovation wing of LG Electronics India in Bangalore

LG came up with TV offering Hindi and regional language menus

Introduced ‘Cineplus’ and ‘Sampoorna’ TVs for rural markets

LG Electronics

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SONYHeadquarters: Sony Corporation, Minato,

Tokyo, Japan moved from Shinagawa, Tokyo in 2006

World’s 5th largest media conglomerate with US$ 86.64 billion(FY2011)

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SONYSony Group Organizational Details Summary

Consumer Products and Services Group Sony Computer Entertainment Sony Network Entertainment VAIO and mobile business Group Personal Imaging and Sound Business Group Home Entertainment Business Group

Professional & Device Solutions Group Device Solutions Business Group Semiconductor Business Group Professional Solutions Group

Sony Pictures EntertainmentSony Music EntertainmentSony Financial Holdings GroupSony Ericsson Mobile CommunicationsSony DADC

SONY

Page 14: Television brands & supply chain

SONYFounders:

Akio Morita and Masaru Ibuka derived Sony from Sonus, Latin word for sound, and also from English slang word Sonny, since they considered themselves as sonny boys, a loan-word into Japanese which in early 1950s connoted smart and presentable young men

History:1945, after WWII, Masaru Ibuka started radio-repair

shop in bomb-damaged department store building in Nihonbashi of Tokyo

Next year, Akio Morita joined him to find a company called Tokyo Tsushin Kogyo K.K.

Masaru Ibuka

SONY

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SONYLogo Changes

First logo, 1950s

First Sony Logo, 1955

SONY

2nd Logo, 1957-58

Sony Corp appears

SONY

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Logo Changes

SONY

Sony added sticker with campaign ‘It’s a SONY’

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Samsung name comes from the word

‘three stars’ that shine brightly The hanja character ‘sam’ has double

meaning of three and strong while ‘sung’ connotes ‘star’ and ‘bright’

The corporate name has auspicious meaning in it, meaning that it foretells success

SAMSUNG ELECTRONICS

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HIGHLIGHTSAssembly Plants and Sales Network: 65

countriesEmployee count: Around 200,000In 2009, overtook HP to become world’s

biggest IT makerLargest sales revenues in LCD, LED Displays,

Computer chipsSince 2006, Samsung is no.1 in no. of TV

units sold

SAMSUNG ELECTRONICS

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CategoriesTV/Audio/VideoMobile PhoneCamera/CamcorderHome AppliancesPC/Peripherals/PrintersMemory Cards

SAMSUNG ELECTRONICS

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PanasonicFounded: March 13,1918 at Osaka, Japan

Founder: Konosuke Matsushita

Headquarters: Kadoma, Osaka, Japan

Key PeopleKunio Nakamura(Chairman)Fumio Ohtsubo(President)

Revenues: US$ 104.88 billion

Employee count: 365,000+

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,Product Profile

TelevisionsDigital CamerasRecordersHome AppliancesPersonal and Health CareCommunications and Security ProductsPersonal Computers and Office Products

Panasonic

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History1952: Made its first Black and White TV

1960: Made its first Color TV

1996: Made Plasma TV

1998: Made Digital TV

Panasonic

Color TVB/W TV

Plasma TV Digital TV

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Logo Changes

Panasonic

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, Logo Changes

Panasonic

Page 25: Television brands & supply chain

Koninklijke Philips Electronics N.V. (Royal

Philips Electronics), commonly known as Philips

Founded: 1891, Eindhoven, NetherlandsHeadquarters: Amsterdam, NetherlandsProducts:

Consumer ElectronicsDomestic AppliancesLightingMedical SystemsMedical Technology

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Key People:Frans van Houten (CEO)Jeroen van der Veer (Chairman)

Revenue: 25.42 EurosEmployee count: 119,000 Founded in 1891 by Gerard Philips as light

bulb company1920: Healthcare – Entry into Medical

Systems with purchase of C.H.F. Muller

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1927: Radio broadcast from Netherlands1928: TV demonstration to the public1950: Philishave, inspired by bicycle lamp1960: Audio Tape Cassette1972: First home VCR1980: Compact Disc Introduction1990: Let’s make things better –

Revolutionary Advertising2000 onwards: DVD Recorder, Plasma TV,

LCD TV, LED TV

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Philips Logos

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2004: Let’s make things better Sense and simplicity

Philips IndiaOperations started in Kolkata in 1930 under name Philips

Electrical Co. (India) Pvt Ltd1938: Philips India set up its first Indian lamp-

manufacturing factory in Kolkata1948: Philips started manufacturing radios in Kolkata1959: 2nd Radio factory set up near Pune1957: Public Limited Company – Philips India Ltd.1970: Consumer Electronics factory in Pimpri, Pune(shut

down in 2006)1982: Philips brought Colour TV to India1996: Philips software center in Bangalore

Page 30: Television brands & supply chain

Founded: 1910, JapanFounder: Namihei OdairaHeadquarters: Chiyoda, Tokyo, JapanPresident: Hiroaki NakanishiRevenue: US$ 112.4 billion Employee Count: 361,745Hitachi Ltd. is parent of Hitachi Group as

part of larger DKB group of companies

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Timeline1910: Company formed. Completed five-

horsepower induction motor1924: Completed the first large-scale DC electric locomotive to be manufactured in Japan

1932: Completed Hitachi's first electric refrigerator

1970: Developed computer-aided traffic control system for the Shinkansen (Bullet Train) 

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Timeline1974: Commercial operation began at Japan‘s first 470,000-kW nuclear power station

1985: Developed CAD/CAE system with ultra-high resolution colour display

1995: Developed Super TFT LCD module featuring ultra-wide viewing angles

2007: Developed EMIEW 2, a small and lightweight interactive robot

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Hitachi Slogan: Inspire the NextHitachi seeks to breathe new life into the

coming era

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Founded: 1981Incorporated: 1985, as TCL

Telecommunication Equipment Co. Ltd.Began manufacturing for Chinese markets

in 1980s and selling overseas in 2000sHeadquarters: Huizhou, Guangdong, ChinaRevenue: US$6.49 billion Employee Count: approx. 50,000Chairman: Li Dongsheng

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In 2010, it was 25th largest consumer electronics producer

and sixth-largest television producer (after Samsung, LG, Sony, Panasonic and Sharp)

TCL comprises of 3 listed companies:TCL CorporationTCL Multimedia Technology Holdings Ltd.TCL Communications Technology Holdings Ltd.

TCL primarily sells its products under the TCL brand name in Africa, Asia, Australasia, South America and Russia, under the Alcatel brand in Europe (ex. Russia), and under the RCA brand in North America

Page 36: Television brands & supply chain

TCL is organised into four business

divisions:MultimediaCommunicationsHome AppliancesTechne Electronics

In addition it has two affiliated business areas:Real Estate & InvestmentLogistics & Services

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Founded: 1981, as MERC ElectronicsHeadquarters: Mumbai, IndiaRevenue: US$340.85 millionEmployee count: 1500+Founders: G.L. Mirchandani and Vijay

Mansukhani1982: Started assembling TV sets

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Onida brand has following range of products.

LCD TVsPlasma TVsTelevisionsDVD and Home Theater SystemsAir ConditionersWashing machinesMicrowave OvensPresentation ProductsInvertersMobile phonesLED TV

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Management

Mr. Gulu Mirchandani (Chairman and MD)Mr. Vijay Mansukhani (MD)Mr. G. Sundar (CEO)

Milestones1981 : MIRC Electronics Pvt. Ltd. was established1982 : CTV production started at Nand Bhavan, Mumbai1983 : Technical collaboration with JVC, Japan for CTV1985 : Established in-house R&D wing1986 : Production expanded and moved to a new factory at

Kalina1987 : Moved to our own factory building "ONIDA HOUSE" 

Iwai, Speaker plant commences its operation

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Milestones

1992 : Crossed 1 million CTV sales1995 : ISO 9001 certification obtained from BVQI1998 : Award for excellence in electronics by ministry of IT1999 : First in India to develop Internet enabled CTV2003 : Launched world's first LCD remote 'i-Control'  : Launched Air-conditioners : Launched Rear Projection TV, Plasma TV & DVD Players  : Launched Fully Automatic front loading Washing Machines  : Operations started in Russia2005 : Launch of 'POISON' range of CTV's2009 : Onida’s Brand relaunch2010 : Launched LED TVs with I-Care Technology

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Manufacturer DisplaySearchSamsung Electronics 26.5%LG Electronics 16.3%Sony 8%Panasonic 5.3%TCL 5.1%Others 38.8%

Worldwide LCD Television market share in 2013

Manufacturer StatistaSamsung Electronics 20.8%LG Electronics 14%TCL 6.5%Sony 6.3%Hisense 4.8%Others 38.8%

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BRAND SALES MARKETING MANUFACTURING SUPPLY CHAIN MODULE

SAMSUNG ELECTRONICS

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BRAND Samsung's innovative and superior quality products coupled with our innovative marketing initiatives have contributed to the success of the brand globally as well as in India. Our commitment to being the world's best has won us the No.1 global marketshare for thirteen of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones. In India too, Samsung has taken the lead in product categories like LED TVs, LCD TVs, Slim TVs, Side by Side Refrigerators and Smart phones, while it is the second largest mobile handset brand in India. 

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IT IS ONE OF THE MOST LOVABLE BRAND LOVED BY THE PEOPLE.

IT HAS HELPFUL CUSTOMER SERVICE.IT HAS ITS OWN APPEARANCE IN THE FIELD

OF ELECTRONICS.The Brand Trust Report by India Study 2015

ranked Samsung as one of the top most trusted brands in the country. Samsung expects to become the largest consumer brand in India by 2015.

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SAMSUNG – TRUST WOTRHY BRAND WHY SAMSUNG?? A TRUSTED BRAND BETTER PERFORMANCE & TECHNOLOGY UNRIVALLED PRODUCT QUALITY WORRY FREE SERVICE

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MARKETING-The marketing mix (4Ps)1 PRODUCT 2 PRICE 3 PLACEMENT 4 PROMOTION

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PRODUCT The variety of TV sets offered by Samsung

ensures it keeps abreast of the competition in the consumer electronics market. Their product offerings are suitable to a wide array of customers, from those requiring basic TV sets through to large display 3D TVs with interactive features for those potential clients who are interested in the latest gadgets (Katzmaier, 2011). The consistency in high performance and stylish designs for their products ensures the brand recognition of Samsung TVs

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PRICE Pricing strategies are dependent on a variety of

influencing factors. Despite popular belief, the lowest prices are not the most attractive to all customers, as the demands of the market in general has become more sophisticated and consumers have become aware of the concept of value for money (Ba & Pavlou, 2002). As such, clients are prepared to pay premium prices if they are comfortable in the belief that they will obtain a high quality product. As such, Samsung uses the competitive pricing strategy for their TVs, devoting time to comparing their prices with the ones of their main competitors like LG or Sony in every geographical market (Woollaston, 2013). The Samsung TV prices reflect the quality that the customers can expect from the product.

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PLACEMENT Through a thorough market research Samsung places their

products in the best retail seller locations in each of the countries where they operate. For example, Samsung TVs can be found in John Lewis, Tesco or Argos stores across the UK, which are some of the best known British retailers. At the same time, Samsung operates independent showrooms and have partnered with numerous other companies from all industries that display Samsung TVs in their headquarters in order to increase the market presence of the brand (Kershaw, 2012). Overall, the placement of products in all the retail locations ensures that the brand maintains its leading market position, as the catalogues of stores where Samsung TVs are sold feature the newest TV models released by the company, promoting the brand even further.

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PROMOTION Samsung often uses promotional pricing tactics in order to

maintain its competitive edge over the other industry leaders. Specifically designed to attract customers, price reductions, such as the ones available in John Lewis online stores, with free delivery and 5 year guarantee and added care for all Samsung TV sets, these promotions are particularly available around the Christmas holidays in order to attract customers at a time when their disposable income is used to make more generous purchases, including new TVs for the house (Moore, 2011). In 2011, when Samsung launched their new generation of 3D TVs, they were offering two free pairs of 3D glasses with the purchase of selected TVs, an attractive offer for the potential customers, particularly as none of the other Panasonic or LG 3D TVs were benefiting from this offer (Katzmaier, 2011).

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SWOT ANALYSIS Strengths Product range Ownership of market share Brand reputation Awards and industry recognition Low cost productions Local teams in all locations Investment in R&D WEAKNESSES Pricing tactics – lower price is usually interpreted as low quality Not niche focused Relies on external software for products Distribution channels costs for products Patent litigations with Apple

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SWOT ANALYSIS OPPORTUNITIES Increased market demand in growing economies

(particularly India)Increase in disposable income after economic

downturn recoveryDemand for innovative products THREATS Reputation of competitorsDecline in demand for TVsPolitical instability in South KoreaAging population

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7 Supply Chain Transformations at SAMSUNG

LISTEN TO VOICE OF CUSTOMERADOPT SIX SIGMA TECHNOLOGY UTILIZE APS SYSTEM (ADVANCED

PLANNING & SCHEDULNG)SETUP CROSS FUNCTIONAL TEAM Streamline Performance Evaluation

System Standardize Processes and PartsEstablish Risk Management System

Page 58: Television brands & supply chain

Listen to Voice of Customer: at macro level, Samsung tries to understand the behavior of consumers in particular country by sending staffs to attend MBA programs at the local universities. These "Country Specialists" also establish the connection with many business leaders and potential business partners. At micro level, they gather the customer preferences and incorporate them into the product design through a method called "Quality Function Deployment".

Adopt Six Sigma Methodology: based on "quality movement" in the electronics industry, Samsung believes they can improve the internal operations drastically using Six Sigma. Then they study various Six Sigma approaches from GE, Dupont and Honeywell. Later, they create the methodology based on GE approach called "DMAEV" (define, measure, analyze, enable and verify).

Page 59: Television brands & supply chain

 Utilize APS system: Since the electronics market changes quickly, they need to be able to create a flexible production plan. So they implement APS system which brings the remarkable success.

4) Setup Cross Functional Team: in order to bring the internal departments closer, they use the system called "Voice of Business". What they do is to gather the internal requirements and establish an action plan based on collective decision.

5)Streamline Performance Evaluation System: the classic problem of many organizations in Asia is the seniority based performance evaluation system. Samsung thinks they won't be able to attract the best and the brightest to help them grow if there is no performance based system in place. Then they gradually integrate the merit-based system and allow high performers to have the fast track career path.

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6) Standardize Processes and Parts: to achieve the economy of scale, Samsung standardize processes and parts and the majority of components are produced in Korea. This also enables them to manage product quality more effectively due to the ease of control.

7) Establish Risk Management System: they realize that risks are the fact of life. So they implement a very comprehensive risk management system and their risk mitigation strategies are low inventory level, flexible capacity and redundant suppliers.

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Product manufact

ure

LCD SCREEN,CHIPSET,PICTURE TUBE,HOUSINGPARTS

LG , SAMSUNG

DISTRIBUTORS SAMSUNG STORE,LG STORE

RETAILERS

CUSTOMER

RELAINCE,SNEHANJALI,VIJAY SALES,E-COMMERCE,

COMMON MAN,COMMON PEOPLE

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SAMSUNG INDIASamsung India has its headquarter in Delhi and is a

portion of Samsung's South West Asia Regional operations. It has around 55 sales and marketing units located all over India and enjoys a sales turn over of more than USD 1 billion which it achieved in just few years.

The manufacturing unit of Samsung India is largely involved in manufacturing color televisions, refrigerators, color monitors, and also washing machines. The manufacturing unit of Samsung India has been set up in Noida, near Delhi. The products that are exclusively manufactured by the manufacturing unit of Samsung in India, that is the Noida unit, are exported to the foreign countries especially in the Middle East and CIS and SAARC countries

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SAMSUNG INDIA The Noida complex of Samsung India ranks first in the production level among all other Samsung subsidiaries as it possesses an exclusively modernized and automated manufacturing facility. The manufacturing capacities of the products of Samsung India as has been accounted for the year 2004 are as follows:Refrigerator 0.6 million Frost-free and Conventional RefrigeratorsColor Monitor 1.5 million CRT and TFT LCD MonitorAC 0.4 million Window and Split ACsWashing Machine 0.5 million Fully Automatic and Semi AutomaticCTV 1.5 million Curved & Flat TVs

Page 64: Television brands & supply chain

Make in India’: Samsung plans to set up third manufacturing plant in India to make electronic goods, smartphones

Samsung Electronics is considering setting up its third manufacturing plant in India, a move that would consolidate the South Korean company's hold on a key market and provide a big push to the government's 'Make in India' campaign. The company, among India's largest multinationals, is scouting for land in Uttar Pradesh, Tamil Nadu and Gujarat for a new plant to make electronic goods, including smartphones, people familiar with the matter said

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WORLD MANUFACTURERS

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BRAND SALES MARKETING MANUFACTURING SUPPLY CHAIN MODULE

LG Electronics

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BRANDLG Electronics Inc.  is a SouthKorean 

multinational electronics company headquartered in Yeouido-dong, Seoul, and a member of the LG Group, employing 83,000 people working in 119 local subsidiaries worldwide. With 2013 global sales of USD 53.1 billion (KRW 58.14 trillion), the company operates its business through five divisions: Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Energy Solution, and Vehicle Components

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INTRODUCTION The company was originally established in

1958 as Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners.

The L.G group was a merger of two Korean companies Lucky and Goldstar.

Is the second largest producer of television and third largest producer of mobile phones.

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HEAD-QUARTER

Seoul South Korea

Yeouido

LG Electronics Inc.LG Twin Towers20, Yeouido-dong, Yeongdeungpo-gu,Seoul, Korea 150-721

CEO: LG Group Vice Chairman Yong NamTel: 82-2-3777-1114Website: www.lge.com

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L.G INDIALG 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 Crores

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra

LG plans to set up Rs 500-cr unit in South

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BUSINESS DIVISIONSL.G. GROUPL.G.

ELECTRONICSMOBILE

COMMUNICATIONS

DIGITAL DISPLAY

DIGITAL MEDIA

DIGITAL APPLIANC

ES

L.G.CHEMINFORMATI

ON AND ELECTRON

IC MATERIAL

S CHEMICAL AND

POLYMERSLG SOLAR ENERGY

INDUSTRIAL MATERIALS

L.G.TELECOM

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LG ELECTRONICSHOME ENTERTAINMENT

• HOME APPLIANCES

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MOBILE COMMUNICATION

• AIR CONDITIONS & ENERGY SOLUTIONS

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PRODUCT & PRICE TV / Audio / Video

RS 4000-150000

RefrigeratorsRS 6000-35000

Washing MachinesRS 5000-30000

Air ConditionersRS-15000-80000

Cooking AppliancesRS 2000-20000

Vacuum CleanersRS1000-15000

Mobile PhonesRS 1000-32000

MARKETING MIX

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COMPETITIVE ANALYSIS

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ANNUAL PRODUCTION GRAPH

2005 20060

500000

1000000

1500000

2000000

2500000

TELIVISIONREFRIGIRATORWASHING MACHINECOLOUR MONITOR

Page 78: Television brands & supply chain

LG: LOOKING GREAT Category Market share in volume

termsCATEGORY LG NO. 2 PLAYER

REFRIGERATORS 27.2% 21.2 (Whirlpool)

COLOUR TVs 25.5% 22% (Sony)

MICROWAVE OVENS 41.4% 19.7 (Samsung)

WASHING MACHINES 34% 13.8% (Whirlpool)

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MANUFACTURINGStarts production with 32 inch Model LG

targets a production capacity of 2.5 lakh units per year

New Delhi, April 05, 2007: Leading Consumer Electronics and Home Appliance Brand, LG Electronics India today announced the commencement of LCD Television manufacturing at it’s Ranjangaon facility in Pune. With an initial investment of US $ 0.5M, LG has begun manufacturing 32” Liquid Crystal Display Televisions at this facility. 

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REGIONAL CHANNEL STRATEGYAND WIDE DISTRIBUTION NETWORKLG 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.

Factors for success

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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 bigway, by sponsoring the 1999 World Cup, and followed it up in 2003 as well.

• LG brought in four captains of the Indian cricket team to endorse its products. LG invested more than US$8 million on advertising and marketing in this sport.

• LG has differentiated its products using technology and health benefits. The CTV range has ‘Golden Eye’ technology, air-conditioners have the ‘Health Air System’ and microwave ovens have the ‘Health Wave System’.

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LOCAL AND EFFICIENT MANUFACTURING TO REDUCE COST

To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi.

LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has helped LGEI to reduce costs.

LGEIL is implementing a “digital manufacturing system” (DMS) as a cost-cutting innovation.

This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier.

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R&D POTENTIALLG has set up research and development

facilities in India at Bangalore and is in the process of setting up another at Pune.

Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customised R&D for specific countries to which it exports products.

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S.W.O.T. ANALYSISMarket leader in home appliances.Has got manufacturing unit in tax incentive .Wide range of products to serve all categories.Widest distribution network in the industry(47

barnches,10000 trade partners).Good after sales service offered.

STRENGTHS

WEAKNESSES• Samsung being its competitor provides

similar products.• Consumers compare L.G with Samsung its

Korean rival not with other global companies.

• Lack of expert operators for complex machines due to illiteracy and lack of training in India.

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OPPORTUNITIES• Fast growth of the home appliances market• Shifting to rural areas• Thus maintaining control over the market and the highest share in home appliances marketTHREATS

• Close competitors like Samsung are compared to it.• Price war with Samsung.• Competition from Indian brand and other foreign brands.

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