 Presntatn

CASE ANALYSIS

LG India-Direct Selling Microwaves Ovens

Presented By:
Anu Sirohi
Bhavna Banodha
Nikhil Chaplot
Pankaj Bedi
Abhishek Garg
Javed Pirani
INTRODUCTION
 The Case let Focuses on the Direct Selling Initiatives
Undertaken by LG Electronics India Pvt. Ltd. (LGEIL)
to Promote its Range of Microwave Ovens.
 It Describes the use of Home Demonstrations and
Product Customization, According to the Needs of
the Target Segment, as a Means to Build Awareness
For Microwaves.
 It Also Throws Light on Similar Moves Adopted By
Samsung And Sansui
 The Case also Explores the Platform of Health
Created by LG to Promote its Products
 Importance of Identifying Consumer Behavior
DIRECT MARKETING
Direct Marketing Is A Sub-discipline And Type Of
Marketing.

There are two Main Definitional Characteristics Which

Distinguish it From Other Types of Marketing.
It Attempts to Send its Messages Directly to
Consumers, Without the Use of Intervening Media.
(Direct Mail, E-mail, Telemarketing)

It is Focused on Driving Purchases that can be

Attributed to aSpecific "Call-to-action."

This Aspect Of Direct Marketing Involves an Emphasis

on Trackable, Measurable Positive (But Not Negative)
Responses From Consumers (Known Simply As
"Response" In The Industry) Regardless Of Medium.
DIRECT SELLING
(as tool for direct marketing)

A Text Book Defines It As:

"The Direct Personal Presentation, Demonstration,

And Sale Of Products And Services To Consumers,
Usually In Their Homes Or At Their Jobs."
FEATURES OF DIRECT SELLING
• Flexible – Place, Time.
• Communication Senses Can be
Utilized. – Customized, Demonstration,
Personal Involvement.
• Relationship Marketing.
ADVANTAGES OF DIRECT SELLING
 Direct Selling is a Good Way to Meet and
Socialize With People.
 Direct Selling Offers Flexible Work
Schedules.
 Direct Selling is a Good Way to Earn Extra
Income.
 Direct Selling is a Good Way to Own a
Business.
 Earnings are in Proportion to Efforts.
 Provides Opportunity to Client to Study the
Product In Details
DEMERITS OF DIRECT SELLING
 Less Chance Of Comparison With Rival Brands.
 Companies Opting For Direct Selling Cannot Sell the
Products Through Retail Shops.
 Lack of Trained Sales Personnel.
 Time Consuming.

Example: Avona Door-to-door Selling Has Suffered In

The US Since The 1980s As More Women Had
Started, Going To Work. There Were Thus Not
Enough Housewives At Home To Be Approached
Through Direct Selling.
QUESTIONS ARISING
 Why LG Opted Direct Marketing Route
for its MWOs

 HowLG Differentiated Itself By

Focusing On Health Aspect

 Competition Faced From Other Players

WHY LG FOLLOWED DIRECT MARKETING
STRATEGY FOR MWOS?
 People were Unaware of Usage and Utility of
MWOs
 To Research Regarding Consumer Buying
Behavior Pattern
 Customized MWOs Launched According To
Geographic Segmentation
 Home Demonstration And Health Platform as
USP
 Post Purchase Costumer Satisfaction
LG MWOs MARKETING STRATEGY
 Market Research For Consumer Buying
Behavior Pattern
 Spreading Awareness About MWOs in
People
 Customization of Product as Per Consumer
Preference
 Home Demonstration and Post Purchase
Service
DIFFERENTIATED ITSELF BY FOCUSING
ON HEALTH ASPECT
 Television
Segment- ‘Golden Eye
Technology’

 Air
Conditioner Segment- ‘Plasma Healthy Air
System’

 MWOs Segment- ‘Healthy Wave System’

 Washing Machine Segment- ‘Fabricare’

COMPETITORS
 Samsung Also Started Direct Marketing
Campaign as – ‘Spot The Van Cooking
Fiesta’
 It also Emphasized on Health Aspect
Through Its:
‘Freshetarian’ Advertising Campaign For
Refrigerators
‘Samsung Bio TV’ For Televisions
 Sansui Also Introduced ‘Smarts Eye TV’
SWOT ANALYSIS
STRENGTH:
 First Mover Advantage By Focusing
on Health Aspect
 Analyzed Consumer Behavior Well
 Fast Growth
 Global Presence
WEAKNESS:
SWOT CONTD…
Opportunities:
 Huge Untapped Market
 Market Presence

THREATS:
 Entry Of Competitors
 Daily Changes In Technology
INITIATIVE TO BE TAKEN
 Continuous Innovation

 Indian
Market – Price Sensitivity is a
Major Factor

 Take
Approval From Certain Health
Organizations