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Anuja Vaidya
MBA International Business
1!"!"1!1 IB#A$
LG
REFRIGERATO
R
Field Research Report
Introduction
The refrigerator market of the country is having a total share of 42.6% all over across the
electronic items present in the country and is growing a pace rate of 6% half yearly. The
refrigerator market has more than 100 players present, !, "hirlpool, #amsung to name a
few.
! $orporation formerly ucky is a #outh %orean multinational conglomerate corporation. &t
is the fourth'largest chae(ol in #outh %orea. &ts head)uarters are situated in the ! Twin
Towers (uilding in *eouido'dong, *eongdeungpo'gu, #eoul ! makes electronics,
chemicals, and telecom products and operates su(sidiaries such as ! +lectronics, ,enith,
! -isplay, ! Telecom and ! $hem in over .0 countries.
"hen it comes to &ndia, ! sells an array of products ranging from televisions to
refrigerators to mo(ile phones. ! is one of the leading (rands when it comes to consumer
dura(les in &ndia. The company, which has a market share of /0 per cent in the consumer
dura(les market, is looking at enhancing it (y five per cent during the year. The consumer
dura(les industry in &ndia is pegged at around 0s.10,000 crore, according to ! estimates.
2&ndia features among our top five priority markets and ! &ndia will continue to employ its
technological and design e3pertise to (ring impressive products to the market,4 said !
+lectronics &ndia managing director #oon %won. &n 2014, around .1 per cent of the products
showcased in the tech show are new. #ome have (een developed keeping in mind the &ndian
market.
Offerings from LG:
The !oldstar appliances were originally seen as a discounted alternative to some of the ma5or
6merican (rands like "hirlpool, %enmore and 7aytag. ! is still considered a 8discount8
(rand in some people9s eyes. :ut ! products have (ecome more attractive and relia(le,
while remaining relatively afforda(le.
! has a num(er of uni)ue features that they (ring to each of their product lines and their
ma5or appliances are no different. isted (elow are a few uni)ue features of ! fridge
Glide N Serve Drawer:
This is a full si;e fruit and vegeta(le drawer allows for easily accessi(le ways to get
to your fruits and vegeta(les.
SpacePlus Ice System indoor:
The dispenser can come in regular or e3tra tall for filling large glasses or pitchers.
LoDeci!el Operation:
&f you are looking for a )uiet refrigerator make sure you purchase one with this as an
added option as not all ! fridges come with this
Door "larm:
"hile a door alarm may not seem like a (ig deal, if you have children, you know 5ust
how much of money it can save you in spoiled food
#$ %ear &arranty on t'e Linear (ompressors:
This type of compressor is not in all models (ut if you9ve ever had to replace a
compressor you know that it can (e )uite costly.
6part from these features, a vast ma5ority of these refrigerators are +nergy #tar
$ertified, which means that they run on 11% less energy than allowed (y <ederal
#tandards.
S)P analysis of LG:
LG aims to utilize their core capabilities of product leadership, market leadership and people
leadership and enhance their corporate culture of team work and fun.
Segmentation
P*S) "nalysis
1. Political +actor= ' >igh &mport -uty ?lants in ta3' incentive areas like !reater @oida
and ?une. +3port promotion schemes of the &ndian !overnment like +?$! A+3port
?romotion $apital !oods schemeB and +CD A+3port Criented DnitB status.
2. *conomic factor= ' &ncrease in per capita income !rowing !-? >igh disposa(le
income &ncrease in spending power.
/. Sociocultural factor: They are manufacturing eco'friendly product.
4. )ec'nological factor: &mprovement in technology made the electronic product
cheaper. Euality of product has (een increased.
! has segmented its market on the (asis of following=
-emographic
o &ncome
o Cccupation
!eographic
o Tier 1 cities
o Tier 2 cities
?sychographic
o ife style
o ?ersonality
:ehavioural
o Falue
o :enefit sought
G
)argeting:
The company started e3porting in 1HI. and entered &ndia in the year 1HHH. &t captured the
market in 2001 with its first product' 0+<0&!&06TC0#. The main o(5ective of the company
to enter the &ndian market was to capture the &ndian audience. They were targeting the middle
class who need refrigerators in their homes and could not pay a premium price on electronic
items like fridges. >ence, ! came up with new kind of technology in refrigerators at a
cheap price in 2002, targeting the middle class &ndian audience. To do so, it colla(orated with
various companies like ?hilips, $omrene etc. who were already the e3isting players in the
&ndian market. &t esta(lished itself in the &ndian market with its low price range of
refrigerators.
! has refrigerators in &ndia range from 2H1 litres to IH1 litres with a price point ranging
from &@0 20,000 to &@0 2, 21,000.The company also has various models like side (y side
door fridges, dou(le door fridges, single door fridges etc. This was done to look into the
minds of the consumers and sell the refrigerators according to the need of the consumer also
to see how much the consumer is willing to pay and what is the most hot spot selling product
out the refrigerators range present in the market to compete with the (rands present in the
market.
The company (asically targets the audience that are lower to middle and also the high end
people (asic target of the company is the high end people and in the refrigerator market the
companies target is middle class people and the lower middle class people (ut it also has
premium products for high end people who live a good and a lu3urious life style in the
personal lives.They are also targeting those consumers, who are more concern of safety and
health issues. ! is now going to shift over to mid class segment and want to mass market
their product.
Positioning:
With the tagline Lifes Good, LG positioning is to differentiate their products on the basis of
technology which appealed to the consumer on the basis of health benefits. With the tagline
Lifes good its corporate philosophy to make people lives better, convenient and healthier.
heir positioning strategies are technologically intelligent and futuristic. !s they are in upper
and premium segment, so they are featuring that their brand is young, vibrant and premium.
LG has differentiated its product using technology and health benefits.