INTRODUCTION TO COMPANY (LG)

LG is the best TV selling brand in India till now. With the tag line Life’s Good, LG positioning
is to differentiate. The market share shows that Samsung, LG and Sony are the main competitors
in India. The target audience of all three companies is almost same, but LG is superior because
of its strategy to tap rural markets also. LG Electronics offers wide range of LCD TVs, color
televisions, and Plasma TVs.

Their product on the basis of technology which appealed to the consumer on the basis of quality
benefits. Tagline__Life’s Good tells its corporate philosophy to make people live better,
convenient and healthier.
Their positioning strategy is to make technologically intelligent and futuristic TV. LG has
differentiated its TV’S using technology and features. The CTV range has ‘Golden Eye
Technology’.
LG positioned itself as an Indian brand. They are hitting at the emotional attributes of Indian
consumer. For television market they are using child, because child plays the role of influencer
in purchase of TV set. Its communication message is totally based on health message like Golden
Eye technology.
Brand positioning: LG positioning their different brand of TV for different purpose and category
like LG Flatron TV sets, you can also opt for other sophisticated models such as LG LCD TV.
LG Plasma TV and very stylish LG Ultra Slim TV. If you are worried about the small size of
your room and how to choose a perfect TV set for it, the LG Ultra would be just right choice.
About 30% to 40% slimmer than any normal television. LG Ultra Slim television sets sre
available in 21” and 29”. They can fit into aany small room and yet look elegant. Featuring
designer looks and Golden Eye Technology, they can redefine “entertainment” in true sense
Target and segment: all the class of people comes under the segmentation of LG because it has
product range according to the different price category. The business offices are also targeted as
well as the families whether it is middle class or upper class.
The main competitor of LG is Samsung , so we have to do the Competitor Analysis of LG
that is Samsung which is given as follows
INTRODUCTION TO SAMSUNG COMPANY
The Samsung Group was founded in 1938 by Lee Byung-chul (1910-1987). It was incorporated
in 1951 as Samsung Corporation. The meaning of the Korean word Samsung is "Tri-Star" or
"three stars".

Samsung was established in 1969 to manufacture black and white TV sets as the flagship
company of SAMSUNG CORPORATION. It was the third largest player in the Korean
electronics market after LG and Daewoo. Manufacturing bases a presence in around 47
countries, and approximately 64,000 employees. Samsung India commenced its operations in
December 1995. Its Core competency is in the field of semiconductors which is backed by its
R&D capabilities and manufacturing scale. It emerged as one of the most unique brands creating
innovative and superior digital products every year.
By 2001 it posted a net income of $2.2 billion. Samsung has very successfully leveraged its
association with Cricket and Cinema in the form of ‘Team Samsung’ and ‘Samsung IIFA
Award’. Samsung’s success has been due to a variety of factors: Successfully customize products
around a core design, Large product portfolio (occupy the entire spectrum for a broad market
play) and continuous innovation in its TV products. Samsung’s current market share is 30.5%
after LG.

MISSION STATEMENT:
Samsung aims to become India’s leading volume retailer in the consumer electronics segment.
SAMSUNG is dedicated to developing innovative technologies and efficient processes that
create new markets, enrich people's lives, and continue to make Samsung a digital leader.

VISION:
“Continuously striving to conquer new era in digital technology and products.”
ASSESSING COMPETITORS CURRENT OBJECTIVES
An assessment of current objectives provides valuable information concerning the intended
aggressiveness of the competitors in the market in the future. It also provides a context for
assessing the capabilities of competitors; that is, does the firm brand ‘A’ have the resources to
successfully pursue such an objective? In the context of marketing planning, three basic product
objectives can be defined.
1. A growth objective usually implies increasing the brand units or market share, with profit
conditions being secondary.
2. The hold objective could be termed as consolidation objective.
3. Finally, a harvest objective, also referred to as milking, describes a situation in which
profit is paramount relative to market share.
Samsung TV’s current objectives lie on growth category because they have cover up a good
market share and are in second position. Also they have keen focus to become first in its market
position. The main objectives of Samsung TV are as follows:
1. To Strengthen Exports
2. To provide quality products with continuous innovations.
3. To work more and more in order to gain customer satisfaction.
4. Reorientation of marketing activities.
5. Expansion of its Sales Infrastructure.
6. Move to the Tier-II and Tier-III Cities.
7. To become a Mass product and still retain its leading edge technology
8. Tapping the ever growing High-end Consumer
9. Also tweaked its focus to concentrate on middle class segment.
10. To conquer new era in digital technology and products.
Thus it is clear from the above objectives that the ultimate objective of Samsung TV is growth,
which is why they are increasing advertising expenditures, increasing promotional activity to
both consumers and distributors and also increasing distribution expansion in order to be in first
position in the market.
ASSESSEING COMPETITOR’S (SAMSUNG) CURRENT STRATEGIES
In this stage we have to determine how Samsung TV are attempting to achieve their objectives.
This question is addressed by examining their past and current marketing strategies.
At the product level Samsung TV’s marketing strategy can be thought of in terms of three major
components;
1. Target market selection,
2. Core strategy (i.e., positioning and differential advantage) and
3. Implementation (i.e., supporting marketing mix).

1. TARGET MARKET:
This will show us the description of the market segment(s) to which competing brands of LG TV
that is Samsung TV brands are being marketed. Samsung TV caters to both high and middle
market by providing a diversified product line. The market is segmented essentially in four broad
categories.
 Low-End
 Low-Mid
 High-Mid
 High-End

Now let us take a look what products of Samsung caters to which segment

Samsung flat TV 53cm (21), Price: Rs. 7, 000, Target market: Low-End
 Samsung flat TV 74cm (29), Price: Rs.14, 000, Target market: Low-Mid

Samsung LCD TV LA32C630K1R, Price: Rs.47, 900, Target market: High-MID

 Samsung LED TV UA46C6200UR, Price: Rs.130, 000, Target market: High-End

So it is difficult to say that Samsung targets a specific segment the range of products is as such
that it caters to all broad categories that are there in the market.

2. Core strategy (i.e., positioning and differential advantage):

This will show us the basis on which the rival (Samsung TV) is competing, that is, its key
claimed differential advantage(s). Differential advantage is critical component of strategy
because it usually forms the basis of selling proposition around which the brand’s
communications are formed. It is also called brand’s positioning. Following are the points which
will show us the differential advantage or brand positioning of LG TV’s competitor that is
Samsung TV.
1. It emphasizes on Product Innovation and R&D, which has given the company a leading
place in the market (like their newly innovated LED and LCD products e.g. Samsung
Touch of Color UN32C5000QFXZA 32-inch, Samsung UN40C7000 40" 1080p 240Hz
3D LED LCD HDTV, Samsung LN37C550 37 Wi-Fi TOC LCD HDTV, Samsung
400CX-2 40" Widescreen Commercial LCD Display with Built-in TV Tuner). 
2. A unique 'Octo Edge' technology is a Samsung master product for its TV’s.
 3. It provides 24-Hour Service availability in all the cities having the Authorized Service
Centre’s.
4. It offers Free-Service Camp, organized annually throughout the country for the
servicing of Samsung TV Products.
5. After Sales Service, with a motto of 'Speed, Smile and Sure' is one of the primary
concerns of Samsung India in selling TV’s.
6. They positioned itself as a brand which offers freshness and technologically strong.
7. Samsung TV successfully customized their products around a core design.
8. Their Large product portfolio occupies the entire spectrum for a broad market play.
9. Samsung has got a strong brand image in the minds of customers that is why it ranks
number 2 in TV market.

MARKETING MIX

Product
Samsung TV provides a diversified line of products of handsets in order to cater to different
segments. Currently it is providing a variety of more than twenty phones in the market. They
include the phones that were launch with the intention that they would compete with Nokia and
other brands and then there are some which are completely different.
Some categories of phones that are as follows
 Samsung LCD TV
 Samsung LED TV
 Samsung Plasma TV
 Samsung Ultra Slim TV
 Samsung Flat TV
Within these series variety of sets are offered keeping in mind the pricing and the features that
have to be offered with it.

Price
The price range varies from Rs. 7, 000 – 1, 70, 000 depending on the features and design of the
TV. The nature of the product is as such that it has to cater to various segments and obviously
you cannot charge a similar price to all the segments so this variability in price provides
flexibility,

Place/Distribution
Samsung has its own showrooms where their products are displayed and sold but primarily it is
sold through distributors. These distributors have contracts with Samsung TV’s and they also
claim the warranty in case of any damage or malfunctioning of the product. Instead of this
Samsung TV are also displayed in retail outlets like Big Bazaar, Marks and Spencer etc.

Original equipment manufacturer/vendor or supplier

Factory

Regional Branch warehouse

distributing
center

Distributor Direct dealer Modern

retail/
Exclusive
stores &
Sub - Dealer Samsung
digital
plazas

Consumer/Customer
Promotions
If we look at the promotional campaign of Samsung TV we see heavy use of celebrity
endorsement in all their advertisements whether print or media. They have used Abhinav Bindra
as its brand ambassador. Initially, Samsung’s advertising activities was decentralized.

In 1999, Samsung unveiled a new slogan – “Samsung DIGITall: Everyone’s invited” Expressed
the company’s aim “FOR ALL GENERATIONS, FOR ALL CUSTOMERS AND FOR ALL
PRODUCTS.”

In 2001, Samsung added the word ‘WOW’ to its marketing campaigns to show the admiration of
consumer for its innovative but affordable products. In May 2002, Samsung announced its plan
to extend its ‘DigitAll’ campaign, by launching new global campaigns with different tag lines –
‘DigitAll Passion,’ DigitAll Escape,’ and DigitAll Wow.”

Also they are using child, because child plays the role of influencer in purchase of TV set.
Communication strategy of Samsung-Tag line “Duniya Hai Gol” has been proved to be
effective in brand recognition and recall and has promoted the product very well.
Samsung in India signed seven cricket celebrities to cash the image and popularity of cricket. In
order to create brand awareness, they come up with ‘Team Samsung India”. Currently they
appointed Olympic gold medalist Abhinav Bindra as brand ambassador for its consumer
electronics business.

DIFFERENTIAL ADVANTAGE ANALYSIS

It helps us to know where the competitors are strong and where the company is strong. A useful
way to examine competitors’ capabilities is to divide the necessary information into five
categories that include:
1. Competitors’ ability to conceive and design.
2. Competitors’ ability to produce.
3. Competitors’ ability to market.
4. Competitors’ ability to finance.
5. Competitors’ ability to manage.
So differential advantage analysis of LG TV competitor that is Samsung is given as follows-
1. Ability to conceive and design: In this we will be able to know Samsung TV’s quality of
new product development efforts. Samsung has been proved to be effective in terms of
producing new product development and has provided a serious threat for LG in its
product category. As Samsungs core strategy is Product Innovation and R&D and also
its designing, which has given the company a leading place in the market so we can say
that Samsung has got the effective ability in terms of conceive and designing the
products. Some examples are given below:

Example 1: Samsung LED TV

Samsung LED Backlighting Technology delivers breakthrough picture quality in an ultra slim
design. These TVs offer mega contrast ratios—the brightest white to the darkest black a TV is
capable of producing— and advanced internet connectivity features that let you download apps
to your TV.
LED TVs are highly efficient power consumers. Samsung’s LED TVs in standard mode can be
up to 50 percent more efficient than the latest ENERGY STAR specifications.

Example 2: Samsung LCD TV

Lightweight, stylish and slim, our LCD TVs promise sharp, detailed images, smooth
motion quality, and Samsung’s exclusive Touch of Color™ design.
 This technology offers a diverse range of screen sizes, so you can have as much (or as
little) TV as you’d like: anything from about 5” all the way up to 65”.

Lifespan is excellent: typically, 60,000 hours (equal to about 20 years if used eight hours a
day). Some models are 3D capable and can convert 2D images to 3D with the touch of a
button.

We can use them as both a superb PC monitor and an amazing TV without sacrificing
picture quality.

Example 3: Samsung Plasma TV

With a slim and sophisticated design, Samsung Plasma TV offers an amazing picture with
smooth action scenes, the deepest blacks, and brightest whites.

Because it can track fast-moving images without motion blur, plasma is ideal for watching
action-packed sports or playing video games.

It works well in dimly lit rooms (which are great for watching movies), offers high contrast
ratios, gorgeously saturated colors, and allows for wide viewing angles.

2. Ability to Produce: Samsung is well able to produce TV sets with

an annual capacity of 4, 00,000 set. As the market share of Samsung TV is high
they are continuously involved in heavy production of quality products. Production
capabilities of Samsung TV have been found to be effective and efficient and as
such meeting the demand of its products.
3. Ability to Market: Samsung TV has been found to be aggressive in marketing of
their products. They are assessing their products through distributors under the
name of Samsung digital plaza and also through varied retail outlets like Big
Bazaar, Marks and Spencer etc. Also with Abhinav Bindra as its brand ambassador
they are promoting their products through print media, electronic media etc. which
is effectively backing up their marketing strategies.
Between 2007 and 2009, over 40 million HD TVs were sold in the U.S., most of
them close to or below $1, 000," indicating sound marketing strategy.
As the market share of Samsung TV is on second position we can say its marketing
ability is touching zenith.
4. Ability to Finance: Samsung is in good health in terms of its financial ability as a
result of which they are providing serious competition for LG TV. As Samsung is
able to produce high quality and varied categories of products we can say that the
company is financially sound. Their premium category of LED TV products whose
price range from 1, 20, 000-1, 70, 000 depicts that they are financially sound.
Their production level is very high(4,00,000 set annually) and also like currently
they announced that it had started mass production of screens for 3D LED TVs and
3D LCD TVs, a bold move forward in a technology (first to do so) which is not
possible for a company with financial inability.
5. Ability to manage: With Yoon-Woo Lee as a Vice Chairman and CEO of
Samsung Electronics, Samsung’s management of TV products is also found to be
effective. Innovation is crucial to Samsung's business. As new technologies are
being constantly introduced to the market, speed is essential for remaining
competitive in today's digital era, and new markets have to be pioneered
continuously. Through the interplay of creative, imaginative people; a global R&D
network; an organization that encourages collaboration and cooperation among
business partners all along the supply chain; and a strong commitment to
ongoing investment, Samsung has put R&D at the heart of everything we do

PREDICTING FUTUTE STRATEGIES OF SAMSUNG TV

On the basis of their current objectives, current product marketing strategies and their resources
discussed above the likely future strategies of Samsung TV will be as follows-

1. To maintain the balance between its technologies and design.

2. To be more innovative as the competition is going to be more intense because of major
players like LG and Sony.
3. To explore new markets or re visit their strategy in their existing markets.
4. Will focus on variety of cost reduction measures to restore the business to profitability.
5. To provide keen focus on the marketing related activities such advertising.
6. To gain customer satisfaction by customer value.
7. To differentiate their product on the basis of technology which appealed to the consumer
on the basis of quality benefits.
8. To achieve its aim by focusing on its Core Strategy
9. Work on strengthening its unique Brand Image by promotional activities, quality
assurance, designing and innovation.