International Marketing

Washing

machines

Product Washing Machine

Washing machine is the device which is used to clean the laundry

The washing machines market has been growing at around 14-16 per cent per annum

Four categories of washing machines: Semi-automatic Fully automatic Top Loading type Front loading type

International Brands LG Whirlpool

Home country South Korea USA South Korea USA Germany UK Japan Sweden

Samsung GE Bosch Creda Hitachi Electrolux

Indian overview
It is worth Rs. 1500 crore

Growing at 20-27 per cent each year

The major players in the market are:1. Lg 2. Whirlpool 3. Samsung 4. Godrej 5. Haier 6. Kenstar

Growth of washing machine

Changes in the lifestyle of the expanding middle class monetary incomes

Expanding

Rising

participation rate of women

 Impact

of TV advertising on mental makeup of women in particular and the urbanized families in general of the MNCs in the market with their global brands

Thrust

Legal Environment
Washing

machines are having a tough time meeting updated federal energy rules

Production

of energy efficient models that consumes less water and electricity

Political Environment
The 1

Indian government announced a 2 per cent excise duty

per cent and 1.6 per cent for semiautomatic washing machines and fully automatic washing

Social Environment
Joint Branded

families are shrinked into nuclear families durables have become a thing of proud possession

Cultural Environment
More Discount The

interest in exchanging old goods with new and exchange schemes

replacement market in India will remain active due to wide income disparities

Market share

LG -Lifes Good

LG Corp. is the second largest South Korean conglomerate company Operates in 80 countries like Korea, North America, Europe, Mexico, Poland, Hongkong, Indonesia, China etc. Entered India to expand its sales / purchasing bases in Asia

History

LG washing machine in INDIA

Established Low Products Energy

in India in 1997

sales

were developed to suit Indian peoples preference and taste efficient and high performing models

Challenges faced in India

Low

brand awareness of the last MNCs to enter India

One

Competition

Price

sensitiveness of Indian consumers

LGs strategies to overcome challenges

Sponsored

cricket world cup championship

Invested

US$ 8 million on advertising and marketing its products

Differentiated

Marketing strategy

Establish its presence across the country Offering a range of affordable but featurerich products Address the concern and the sensibilities of modern women Targeted towards the educated high income people

 Carried High Adopted Web

out high- price strategy targeting top 5% high income class quality strategy in the advertisements house-wife salesperson

distribution and service strategy

SWOT ANALYSIS

Strengths

No 1 with market share of 34% The company operates in more than 115 countries across the world Direct Drive and Bio-wash technology

Wide range of models Widest distribution network in the industry(more than 47 branches,10000 trade partners)

Weaknesses
Samsung Consumers

being its competitor provides similar products compare L.G with Samsung its Korean rival not with other global companies of expert operators for washing machines due to illiteracy and lack of training in India

Lack

Opportunities
Fast Maintaining

growth of the washing machine market Shifting to rural areas control over the market

Threats
Price Competition

war with Samsung

from Indian brand and other foreign brands

Future plans

The company is aiming to maintain the lead in washing machines LG plans to concentrate on highlighting and differentiating its core technologies such as the Inverter Direct Drive for its washing machines Raise the energy efficiency of its core technologies by more than 30 percent

Major Competitors of LG

Samsung

Whirlpool

SAMSUNG
Incorporated

in 1969 in South Korea

Headquartered 1974:

began washing machine production

World's

second largest conglomerate by revenue(US $ 173.4 billion)

Entry of Samsung in India

Commenced its operations in India in December 1995 51:49 joint venture with Reasonable Computer Solutions Pvt. Ltd Buying the total stake of RCSPL, it became a wholly-owned subsidiary One of the top consumer electronic companies in India

 The

Company is manufacturing fully automatic front loading washing machines being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an awareness level of over 65% and a positive opinion of over 80% in the country today

From

Comparison
LG Market Share Price Range Revenue Earlier Strategy 34% 8000 - 70000 $2.37 billion SAMSUNG 27% 7500 72000 $1.3 billion

Establish its Create premium presence by brand image affordable prices

Current strategy Upgrade its image to become an aspiration brand R&D US $50 Million

Reaching out to price sensitive masses through affordable products US $13 Million

Advertising

Sponsoring cricket events

Endorsement by well known brand ambassadors

Whirlpool

Incorporated in 1911 Headquartered at Benton Harbor, Michigan, USA Global presence in over 170 countries like UK, Ireland, Netherlands, Belgium, Japan etc Manufacturing operations in 13 countries A global manufacturer and marketer of major home appliances

Entry of Whirlpool in India

India was identified as a growth market in late 80s when Whirlpool Corporation entered into a joint venture agreement with TVS group 1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to form Whirlpool of India Ltd This expanded the company's portfolio in the Indian subcontinent to washing machines

Marketing Strategy
Aggressive

marketing and promotion

Mass player Six sigma programmed in 1999 The 6th Sense Technology is patented to Whirlpool of India Targeted at the modern Indian woman

Thank you