1.

Introduction
In our country many organizations are performing a lot of activities to make efficient and effective their working condition or make the organization profitable through marketing and taking so many challenges. Along with this they are also very much concerned about the products of the company and their position in the market. The Company Limited is one of them who are performing their marketing strategy very effectively. As we are the students of BBA department, we have to learn about the BCG matrix analysis of a company. Thats why we have decided to analysis on LG, the renowned electronics company in the world.

1.1 Origin of the Report

This report is a part of Marketing Management course under the BBA curriculum. As we are the students of BBA department, we have to learn about the BCG matrix analysis of existing product of a company. Thats why we have decided to analysis on LG electronics.

1.2 Objectives
To improve our knowledge To make us experienced To develop our skill. To provide brief information about our analysis

1.3 Problem and Purpose

1.3.1 Problem Statement This report seeks to address the following requirement: To study about the products BCG matrix analysis followed by The LG Electronics Company. 1.3.2 Purpose of the Report The objective of the report is- To acquire the practical knowledge of BCG matrix analysis followed by The LG Electronics Company.
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1.4 Scope and Limitation

1.4.1 Scope This paper includes, history of the company, global operation and the strategic analysis, structure of the company has been shown. After that the SWOT analysis, BCG matrix analysis, product area, internal culture, comparative analysis and product life cycle of LG Company. Our time was short We are not experienced Lacking of available information & data Lacking of available reference 1.4.2 Limitation Because of the lacking of sufficient data and keeping the information secret by the company, we have not been enabled to cover all the parts very clearly and perfectly.

1.5 Methodology
To prepare the report, supportive information is gathered from the following sources: 1.5.1 Primary Sources: Primary sources mostly include company students of previous batches. 1.5.2 Secondary Sources: The secondary sources include: Annual Reports of LG. Website of the observed company www.LG electronics.com records and then we take help from our teachers and

1.6 Report Preview

The report has been arranged in a simple frame. At first, a brief orientation of the company has been discussed through highlighting the major aspects of the LG electronics. . Then, history of the company, global operation and the strategic analysis, structure of the company has been shown. After that the SWOT analysis, BCG matrix analysis, product area, internal culture,

comparative analysis and product life cycle have been discussed. Finally the conclusions and recommendations are drawn from the detail study on the issue.

2. History of company
The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a acronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

1958-1969:- GoldStar the Electronics Industry Dream

1970-79:- GoldStar symbol of The Technology

1980-88:- INTERNATIONALIZATION

1989-94:- INOVATION

1995-98:- GLOBAL LEADERS LG ELECTRONICS

1999-2003:-DIGITAL MANAGEMENT

2004-2006:- GREAT PEOPLE GREAT DESIGN

2007- Present THE PEOPLE COMPANY

2.1 Global Operation

LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees.

2.2 LG Group
1. LG.Philips LCD 2. LG Chemical 3. LG Telecom 4. LG Powercom 5. LG Twins 6. LG Dacom

3. Business areas and main products

Mobile communications (a) CDMA Handsets, (b) GSM Handset s, (c) 3G Handsets, (d) Cellular Phones

 Digital appliance a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net, g) Compressors for Air Conditioners and Refrigerators

 Digital display a) Plasma TVs, b) LCD TVs, c) Micro Display Panel TVs, d) Monitors, e) PDP Modules, f) OLED Panels, g) USB Memory, h) Flat Panel Computer Monitors
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 Digital media a) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CDRW, e) Notebook PCs, f) Desktop PCs, g) PDAs, h) PDA Phones, i) MP3 Players, j) New Karaoke Systems,

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Product of LG in a Diagram:
Business areas Products

Consumer Electronics LCD TV , Plasma Display , Display Panel, Color Television, Home Theatre System, Music system, DVD Recorder/Player, MP3 & MP4 Player

Home Appliances

Room Air Conditioner, Commercial Air Conditioner , Refrigerator, Washing Machine, Dishwasher, Microwave, Vacuum Cleaner

Computer Products

Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices

Mobile Phone

Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset

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4. LG Brand Identity
The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with intelligent features, institutive functionality and exceptional performance.

The brand platform:The LG brand is composed of four basic elements Value Promise Benefits Personality

The Brands core Value that never changes.

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Trust, Innovation, People Passion

The benefits that are consistently delivered to the customer includes

Reliable products Simple design Ease of use Extraordinary Experience

Personality describes the human characteristic that are expressed to the customer through
Trustworthy, Considerate Practical, Friendly

5. The Internal Culture of LG

LG practices four cultures Learning Culture Boundary less Environment A Carrier Growth

According to LG, the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning. Boundary less Environment means that there is no difference between the levels of employees. There is transparency between the work and mutual understanding between all the employees.

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A carrier is highly growing in LG and one who is the employee can develop their carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality. Growth in LG is very high for those who are in the company and for those who want to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth.

Product Leadership
LG focusing on six development areas to become the product leader. New Machine Reliability Conventional Installation Environment Friendly Product Low Noise & Vibration Energy Saving

6. Quality Innovation
The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.

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LG proceeds in a hierarchal manner. It is named as LG WAY.

Jeong-DO Management is LGs unique application to ethics. LG will succeed through fair management practices and constantly developing business skill.

a) Honest with customer b) Providing great values to customer through constant innovation & and development. c) Equal opportunities d) Equal Treatment Management Principle - Creating value for customer

7. Key Steps towards Strategic Planning

MISSION The mission of LG is to provide the customers with utmost satisfaction through leadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. VISION

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LGs vision is to deliver innovative digital products and services that make customers lives better and easierhappier, eventhrough increased functionality and fun. GOAL

To deliver on our promise to keep Accelerating Opportunity by providing the best communication. Products to enrich the human experience.

SLOGAN
"Life's Good" represents LG's determination to provide delightfully smart products that will make consumers life good.

8. BCG MATRIX

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In BCG Matrix product or business unit are identified as Stars, Cash Cow, Dogs, Question mark. BCG Matrix can use for resource allocation. The Matrix can be explained are as follows

STARS (high growth, high market share)

o Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. o Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept.

CASH COWS (low growth, high market share)

o Profits and cash generation should be high. Because of the low growth, investments which are needed should be low. o Cash Cows are often the stars of yesterday and they are the foundation of a company.

DOGS (low growth, low market share)

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o Avoid and minimize the number of Dogs in a company. o Watch out for expensive rescue plans. o Dogs must deliver cash, otherwise they must be liquidated.

QUESTION MARKS (high growth, low market share)

o Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share. o If the market share remains unchanged, Question Marks will simply absorb great amounts of cash. o Either invests heavily, or sells off, or invests nothing and generates any cash that you can. Increase market share or deliver cash.

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9. BCG MATRIX of LG Company According to its Products

BCG Matrix

STARS (Air condition & Refrigerators)

QUESTION MARKS (LCD)

CASH COWS (Mobile Phones)

DOGS (LG chemical)

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10. Comparative Analysis

Brand Awareness & Market Share:

MOTOROLA 13% APPLE 6% LG 6%

S AMSUNG 17%

SONY ERICS SON 11%

NOKIA 48%

Market Leader: Nokia

LG has a pie of 6% Close competitor of Motorola & Apple

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 Brand Awareness & Market Share:

HITACHI 17% SAMSUN G 21% WHIRLP OOL 15% LG 35%

Market Leader- LG SAMSUNG Second most popular brand HITACHI & Whirlpool lag behind.

LG 39% SAMSUN G 16% HITACHI 24%

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 Market Leader- LG Hitachi Second most popular brand Samsung commands the third position

Brand Awareness & Market Share:

SAMSU NG 25% SONY 51%

LG 20%

Market Leader- Sony LG and Samsung close competitors

Attributes affecting Purchase Decision:

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 Brands Evaluation Chart

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11. SWOT Analysis of LG Company

STRENGTH Market leader in home appliances segment Manufacturing unit in tax incentives areas. Wide range of product categories to tap the consumer of middle class, upper middle class and high class. LG having the widest distribution network in the industry (47 branches, 175 area offices and over 10,000 trade partners). Shifting to the rural market. WEAKNESS Consumer compares LG products only with Samsung and not with any other brand.

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 OPPORTUNITIES o Shifting to rural market o Control over the white goods market, as we know the highest market share in home appliance market.

THREAT o The closest competitor of LG ,Samsung is also from South Korea and consumers LG product with Samsung products o Price war with its closest competitors, Samsung o Competitors from many brands and from new entrants.

12. Product Life Cycle of LG

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 LG LCD AT INTRODUCTION STAGE (Question Mark). LG APPLIANCES IS AT STAR STAGE. LG MOBILE PHONES & TELECOMMUNICATION SERVICES IS AT CASH COW STAGE. LG Chemical IS AT DOGS STAGE.

Conclusion

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LG is an industrial conglomerate with interests all over the world. The group has 17 manufacturing sites in India and Bangladesh and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. Today the group operates through key sectors: Consumer electronics Mobile Phones Telecommunication

In BCG Matrix product or business unit are identified as Stars, Cash Cow, Dogs, Question mark. BCG Matrix can use for resource allocation. STARS (high growth, high market share) CASH COWS (low growth, high market share) DOGS (low growth, low market share) QUESTION MARKS (high growth, low market share)

LG mobile is increasing its market share but that is only due to the sale of low end products. At this point market is flooded with counterfeiting phones coming from china. So they must explore new market or re visit their strategy in their existing markets. It is about time LG focus on its advertising strategy for high end products and has more sophisticated approach. This would improve the brand image of LG mobile in the market. If LG is able to change the perception of the consumers about the brand it will for sure see a growth that is sustainable in the long run as well.

Recommendation
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 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.

Bibliography

http://www.lg.com/in/index.jsp http://www.faqs.org/abstracts/Business-international/LG-HITS-THE-HINTERLANDTHE-PICTURE-GETS-SHARPER-AT-PHILIPS.html#ixzz0mh9ItA5G http://www.faqs.org/abstracts/Business-international/LG-TO-EXTEND-REACH-INWEST-ASIA-RIDING-ON-SALES-LG-H1-NET-UP-AT-Rs6897CRORE.html#ixzz0mhGjUyOC

http://www.articlealley.com/article_1199524_45.html http://www.bpotiger.com/2007/11/shahrukh_khan_and_ms_dhoni_tog_1.html www.highbeam.com/doc/1G1-149628585.html www.liebertonline.com/doi/abs/10.1089/153056201750279584 www.article.wn.com/...LG_launches_nine_mobile_handsets_eyes_1_mn_sale_monthl.

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