Brand Positioning & Comparative Analysis of LG Products vis - à - vis the Market Competitors

Presented By: Nikhil Kumar Dhakha 081092 FMG XVII

Company Profile
Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG Electronics, South Korea.  Impressive portfolio - Consumer Electronics, Home Appliances, GSM mobile phones and IT products.  Manufacturing facility at Greater Noida.  LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment.

Project Objective
 To

determine the positioning of Products in the consumers’ mind determine the factors purchase decision.

LG

 To

affecting

 To

carry out the comparative analysis to find out the closest competitors LG with valuable insights from the market helping it in further strategy formulation.

 Providing

 

Scope of Research

Methodology

Data Analysis
Segment: Mobile Phones

Brand Awareness & Market Share
 Market  LG

Leader: Nokia

has a pie of 6% competitor of

 Close

Samsung & Apple
Mobile Phones

Segment: Mobile Phones

Brand Awareness & Market Share
 Market  Ad

Leader: Nokia

Recall of 97% Popularity

 High

Mobile Phones

Segment: Mobile Phones

Brand Awareness & Market Share
 Second Leader: Sony Ericsson  Has a share of 17%  Over 88% Ad Recall
Mobile Phones

 Popular in specific user segments
Segment: Mobile Phones

Brand Awareness & Market Share
Emerging Has

Player

a share of 6% competitor of LG

Close

& Apple
Mobile Phones

Segment: Mobile Phones

Brand Awareness & Market Share
 Emerging  Has

Player

a share of 6% competitor of

 Close

Samsung & Apple
Mobile Phones

Segment: Mobile Phones

Attributes affecting Purchase Decision

Segment: Mobile Phones

Brands Evaluation Chart

Segment: Mobile Phones

Brands Evaluation Chart

Image Profile Analysis
 Nokia-

Closest to the Ideal Product Ericsson gets the Second preference & LG get similar user perception

 Sony

 Samsung

Segment: Mobile Phones

Wilks' Lambda

SPSS Output
Standardized Canonical Discriminant Function Coefficients

Test of Function(s) 1 through 2 2

Wilks' Lambda .226 .616

Sig. .000 .000

Structure Matrix Function 1 2 .282 .182 .581* .548* .515* .514* .324* .254* Sound Quality .340* .224* .017 .070 .078 -.039 -.006 .239

Function 1 Looks ASS User Interface Battery Life Camera Quality Sound Quality Business Utility Connectivity Options 1.524 -2.543 .045 -1.350 -.529 1.976 1.207 -.103 2 -.750 -1.457 .017 1.236 -1.681 1.613 1.131 .388

Camera Quality Business Utility Connectivity Options User Interface Battery Life ASS Looks

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

Segment: Mobile Phones

SPSS Output

Segment: Mobile Phones

SPSS Output
Classification Resultsa

Brand

Predicted Group Membership 1 2 2 36 2 4.0 72.0 4.0 3 0 0 36 .0 .0 72.0

Total

Original

Count

1 2 3

48 14 12 96.0 28.0 24.0

50 50 50 100.0 100.0 100.0

%

1 2 3

a. 80.0% of original grouped cases correctly classified.

Segment: Mobile Phones

Perceptual Map

Conclusions- Mobile Phones
 Nokia

is the market leader, followed by Sony Ericsson is an emerging player competition with Samsung, owing to similar user perception

 LG

 Direct 

Data Analysis
Segment: Refrigerators

Brand Awareness & Market Share
 Market

Leader- LG

 Godrej

Second most popular brand & Whirlpool lag behind

 Samsung

Refrigerators

Segment: Refrigerators

Image Profile Analysis
 LG

Closest to the Ideal Product Second preference gets the

 Whirlpool

 Unstructured

positioning pattern for other players

Segment: Refrigerators

Perceptual Map

Conclusions- Refrigerators

LG is the dominant player in the market

 Other

Players have a segmented

market share
 Unstructured

Positioning of all

Data Analysis
Segment: Air Conditioners

Brand Awareness & Market Share
 Market

Leader- LG

 Voltas

Second most popular brand commands the third position

 Samsung

Air Conditioners

Segment: Air Conditioners

Image Profile Analysis
 LG

Closest to the Ideal Product positioning pattern for other players

 Unstructured

Segment: Air Conditioners

Perceptual Map

Segment: Air Conditioners

Conclusions- Air Conditioners
 LG

is the dominant player in the market user perception shared with

 Closer

Voltas  LG rated low on Technological aspects like Noise Levels

 Hitachi  

was positioned high producing low Noise Levels.

for

Data Analysis
Segment: LCD Televisions

Brand Awareness & Market Share
 Market

Leader- Sony

 LG

and Samsung close competitors has a small market share

 Philips

LCD TV

Segment: LCD Televisions

Image Profile Analysis
 Sony-

Closest to the Ideal Product

 LG

and Samsung have very similar user perceptions  Videocon has a declining market share

Segment: LCD Televisions

Perceptual Map

Segment: Air Conditioners

Conclusions- LCD Television
 Sony   Samsung

is the Market Leader in LCD TV segment. – LG, very similar user perception, directly competing with each other. 

Recommendation

 Similar User perception needed to be carried on, in the Refrigerator & AC Segments.

 LG needs to upgrade itself on technologies like Noise Level reduction, Power Consumption in the AC segment.


 Innovations to be brought into the products in the Mobile Phone market, improving attributes like Battery Life, Camera Quality etc.


  LG needs to bring in better strategies & technology to overtake the closest competitor Samsung in the LCD TV market.

Limitations

Sample Population- Delhi/NCR, covering narrow segment of total users sample size of 50 unable to cover the representative opinions of all users four competing brands in every product category chosen chosen to study the perception not exhaustive

 The

 Only

 Attributes

Future Scope
 Discriminant

analysis for more than 3 brands in each category can be performed can be increased in each product category attributes based analysis can also be included  compared with discriminant analysis. 

  Attributes   Non

References
 Sengupta S , Strategies for competitive advantage , Tata McGraw-Hill Publishing Company Limited, New Delhi , 2003

 Boyd, Harper W., Marketing Research : Text and Cases , McGraw-Hill Education,2005    Nargundkar R, Marketing Research: Text and Cases , Tata McGraw-Hill Publishing Company Limited, New Delhi, 2005    http://wikipedia.org    http:/gsmarena.com    http://my3q.com

Thank You