Korean Conquest:

How LG and Samsung won over the

Indian Market
Presented by:
M. Arsalan Sheikh (#7989)
Ahsan Bham (#8106)
Sobia Khan(#6316)
 Consumer Profile
• The Indian consumption patterns are slowly
converging with global norms.
• There has been an impressive growth of the
middle class.
• Around 70 per cent of the total households in
India reside in the rural areas.
• Rural areas represents a huge potential market in
the world with 153 million households. (2009-
2010)
 Consumer Profile
• Availability of lifestyle spending options is
increasing for Indian consumers and that
inducing higher spends on "status acquisition".
• Indian consumer buying behavior to a large
extent has a western influence.
• Foreign brands have gained wide consumer
acceptance in India and they are much more
open for experimentation.
 Consumer Profile
• The emergence of a larger middle and upper middle
classes and the substantial increase in their disposable
income has changed the nature of shopping in India
from need based to lifestyle dictated.
• There is also an easier acceptance of luxury and an
increased willingness to experiment with the
mainstream fashion, resulting in an increased
willingness towards disposability and casting out from
apparels to cars to mobile phones to consumer
durables.
 MNCs in India
• India’s emerging middle class is driving this
rapid growth, and companies must target that
segment if they aspire to make the country a
key market.
• To win these customers, MNCs must adapt
their products, prices, and manufacturing
processes to households with limited budgets
and local tastes.
 Market Segmentation
• Demographic • Lower -Upper
• Upper-Middle
– Income
• Lower-Middle
• Global
• Aspiring • Geographic
• Struggling – Tier 1 Cities
– Social Class – Tier 2 Cities
• Upper-Upper – Tier 3 Cities
 Market Segmentation
– Benefit sought
• Psychographic – Brand loyalty
• High risk
– Life style • Trapped
• Accessible
• True loyal
– Personality

– Attitude

• Behavioral
– User status
Product – 1:
Television
Trends in Television
Television:
Overview
• Catering to a population of more than 1 Billion
people
• It is predicted that the Indian audio/video consumer
electronics industry will grow to $6.59 billion by 2011
• Rising at a Compound Annual Growth Rate (CAGR) of
10.0 per cent from $4.5 billion in 2007
• Television continues to be the mainstay of the
industry with the transition occurred towards newer
technologies such as LCD, LED, and PDP
Flat TV:
Market Share(2008)

Other Samsung
30% 22%

LG
Sony 25%
24%
 LG: Flat TV
• LG Flatron, LG UltraSlim
• Price: Rs. 7,100 – Rs. 18,500
• Size: 14” – 29”
• Features:
– Golden Eye
– Woofer enabled
• Target
– Upper-Middle
– Lower-Middle
 Samsung: Flat TV
• Samsung Flat, Samsung
UltraSlimFit
• Price: Rs. 5,500 – Rs. 19,500
• Size: 14” – 29”
• Features:
– Easy View
– Super Natural Sound
• Target:
– Upper-Middle
– Lower-Middle
 Sony: Flat TV
• Sony WEGA
• Price: Rs. 12,950 – Rs. 29,900
• Size: 14” – 70”
• Features:
– Surround Sound
– 3LCD technology
– High resolution
• Target:
– Upper-Middle
LCD TV:
Market Share(2008)

Other
19%
Samsung
37%

Sony
22%

LG
23%
 LG: LCD/LED TV
• LG Jazz LCD, LG Scarlet LCD/LED
• Models: 11
• Price: Rs. 18,990 – Rs. 300,000
• Size: 32” – 55”
• Features:
– Dynamic Contrast Ratio
– Full HD
– TruMotion
• Target
– Lower-Upper
– Upper-Middle
 Samsung: LCD/LED TV
• Samsung LCD/LED TV Series X
• Price: Rs. 13,900 – Rs. 350,000
• Size: 26” – 70”
• Features:
– Game Mode
– DLNA Wireless
– Flash Memory
• Target
– Lower-Upper
– Upper-Middle
 Sony: LCD TV
• Sony Bravia LCD TV
• Models: 10
• Price: Rs. 16,900 – Rs. 399,900
• Size: 22” – 60”
• Features:
– BRAVIA Internet Video
– Wi-Fi Integrated
– Edge LED
– Motionflow™
• Target:
– Lower-Upper
– Upper-Middle
 LG: Plasma TV
• LG Plasma TV
• Models: 2
• Price: Rs. 46,990 – Rs. 469,990
• Size: 42” – 60”
• Features:
– Screen Resolutions
– Full HD
• Target:
– Upper-Upper
– Lower-Upper
 Samsung: Plasma TV
• Samsung Plasma TV
• Models: 2
• Price: Rs. 51,000 – Rs. 330,000
• Size: 42” – 63”
• Features:
– Game Mode
– Full HD
• Target
– Upper-Upper
– Lower-Upper
 3D LCD TV
• Samsung 3D
LCD/LED/Plasma
• LG Infina 3D LCD/LED TV
– Price: Rs. 170,000 – Rs.
300,000~
– Upper-Upper Class
– Innovators
– High brand loyals
Product – 2:
Refrigerators
Refrigerator:
Market Share(2006)
Other Samsung
31% 16%

LG
29%
Whirpool
24%
Refrigerator:
Overview
• Indian refrigerator market is valued at Rs. 40
Billion in the year 2007-08
• Refrigerators hold only 16% of consumer
durable market that is valued at around Rs.
200-250 Billion in India
• Its market is growing at the rate of 7-8%
annually
 LG: Single Door
• LG Direct Cool Refrigerators
• Price: Rs. 9,450 – Rs. 15,750
• Capacity: 185 l – 270 l
• Features:
– Largest Vegetable Basket
– Base Stand with Drawer
• Target:
– Upper-Middle
– Lower-Middle
 Samsung: Single Door
• Samsung Direct Cool
Refrigerators
• Price: Rs. 9,450 – Rs. 15,750
• Capacity: 190 l – 230 l
• Features:
– Fresh Tech
– Scratch resistant
• Target:
– Upper-Middle
– Lower-Middle
 Whirlpool: Single Door
• Samsung Direct Cool
Refrigerators
• Models: 2
• Price: Rs. 8,850 – Rs. 12,700
• Capacity: 180 l – 230 l
• Features:
– Insulated chiller compartment
– Transparent internals
• Target:
– Lower-Middle
 LG: Double Door
• LG Frost Free Refrigerators
• Models: 8
• Price: Rs. 14,300 – Rs. 60,900
• Capacity: 240 l – 604 l
• Features:
– Vitamin Plus
– Anti Bacteria Gasket
– Humidity Controller
• Target:
– Lower-Upper
– Upper-Middle
 Samsung: Double Door
• Samsung Frost Free, Bottom Freezer
Refrigerators
• Models: 8
• Price: Rs. 14,300 – Rs. 60,900
• Capacity: 375 l –570 l
• Features:
– Cool Select Zone
– Dispenser
– Cool Curtain system
• Target:
– Lower-Upper
– Upper-Middle
 Whirlpool: Double Door
• Samsung Frost Free, Frost Free
Refrigerators
• Models: 9
• Price: Rs. 11,550 – Rs. 36,925
• Capacity: 375 l –570 l
• Features:
– 6th Sense Fast Forward Ice system
– Health Guard Door
• Target:
– Upper-Middle
– Lower-Middle
 LG: Side-by-Side
• LG Side by Side Refrigerators
• Models: 3
• Price: Rs. 58,000 – Rs. 175,000
• Capacity: 567 l – 721 l
• Features:
– 8 Digital Sensors
– Home Bar
– Water & Ice Dispenser
• Target:
– Upper-Upper
– Lower-Upper
 Samsung: Side-by-Side
• Samsung Side by Side Refrigerators
• Models: 3
• Price: Rs. 58,000 – Rs. 175,000
• Capacity: 549 l – 756 l
• Features:
– Dispenser
– Display & Control
– Twin Cooling
• Target:
– Upper-Upper
– Lower-Upper
Product 3:
Washing Machines
Washing Machines:
Market Share(2006)
Samsung
Other 31%
38%

Videocon
13% LG
18%
Washing Machines:
Overview
• The washing machine market is valued at Rs. 15
Billion and is growing at the rate of 22% the
year 2007-08
• The fully automatic and semi-automatic sub
category is growing at the rate of 40% and 17%
respectively
• Washing machine sales is cyclical in nature and
its sales commences with the onset of
monsoon.
 LG: Semi Automatic
• LG Semi Automatic Washing
Machines
• Models: 3
• Price: Rs. 7,190 – Rs. 10,300
• Capacity: 6.2kg – 8.5kg
• Features:
– Collar Cleaner
– Soak
– Anti rust
• Target:
– Upper-Middle
– Lower-Middle
 Samsung: Semi Automatic
• Samsung Semi Automatic
Washing Machines
• Price: Rs. 7,915 – Rs. 10,240
• Capacity: 6.2kg – 8kg
• Features:
– Silver Nano
– Double Storm pulsator
• Target:
– Upper-Middle
– Lower-Middle
 Videocon: Semi Automatic
• Videocon Semi Automatic
Washing Machines
• Price: Rs. 5,000 – Rs. 7,000
• Capacity: 6kg – 7.2kg
• Features:
– Magic Filter
– Multi pulsator
• Target:
– Lower-Middle
 LG: Fully Automatic
• LG Top/Front Loading
Washing Machines
• Models: 3
• Price: 11,240 – Rs. 38,490
• Capacity: 5.5kg – 9kg
• Features:

• Target:
– Upper-Upper
– Lower-Upper
 Samsung: Fully Automatic
• Samsung Top/Front Loading Washing
Machines
• Price: 10,690 – Rs. 34,190
• Capacity: 5.5kg – 10.5kg
• Features:
– Diamond Drum - 79% less fabric damage
– air wash
– Silver Nano
• Target:
– Upper-Upper
– Lower-Upper
 Videocon: Fully Automatic
• Videocon Top/Front Loading
Washing Machines
• Models: 5
• Price: 7,500 – Rs. 15,500
• Capacity: 5kg – 7.8kg
• Features:
– UV Light
– Load imbalance sensor
• Target:
– Lower-Upper
– Upper-Middle
 Perceptual Map
Sony LCD High Quality
Samsung 3D LCD
Samsung PDP
Samsung LCD
LG 3D LCD
Sony CTV
LG PDP Samsung Automatic
LG LCD Samsung Side-by-Side Wash Mach.
Samsung CTV LG Automatic
Door Refrg. Wash Mach.
LG Side-by-Side LG CTV Videocon Automatic
Door Refrg. Wash Mach.
Expensive Less Expensive
Samsung Double Samsung Single Samsung Semi-Auto.
Door Refrg. Door Refrg. Wash Mach.
LG Double LG Single LG Semi-Auto.
Door Refrg. Door Refrg. Wash Mach.
Videocon Semi-Auto.
Whirlpool Double
Wash Mach.
Door Refrg. Whirlpool Single
Door Refrg.

Low Quality