MARKETING

STRATEGIES OF
SUCCESSFUL MNCS IN
INDIA

An Analysis of the Pioneers
ANSHUMANDUTTA
RollNo. 215111070,
1yr MBA, 2011-13
1

Contents
Introduction1
Marketing Strategy....2
Nokia...3
Procter and Gamble...4
Samsung......9
Hyundai...13
LG16
Conclusion...17
References...18

2

INTRODUCTION

With developed world markets becoming increasingly saturated,multinational corporations
(MNCs) have turned to emerging economies such as India, Indonesia, Brazil, China, and
Mexico,as key locations for future growth. In their efforts to enter these markets of the future,
most MNCs have focused on the wealthy with products and business models similar to those
used in the developed world (Arnold and Quelch, 1998;Prahalad and Lieberthal, 1998).

Low-income markets in emerging economies present both tremendous opportunities and
unique challenges. There can be little doubt that the four billion customers in these base-of-
thepyramid markets represent a vast potentiallyuntapped market opportunity.










The majority of the MNCs investing in India about 53 percent are focused on asingle
activity or product, while another 35 percent are diversified into relatedbusiness sectors.This
suggests that only MNCs with clear business focusenter India, possibly with a well-defined
business strategy, whether seeking resources or markets.














The eight resources deemed most important for success by the MNC affiliates arebrand,
business network, distribution network, equity, machinery and equipment,managerial
capability, marketing capability and technological know-how.Importantly, most of these are
intangible resources.


Dawar and Chattopadhyay (2002) observed, it makes little sense for
MNCs to think in terms of distinct country strategies (e.g., China
strategy) in the context of Emerging Markets. Instead, it might be
more appropriate to develop separate strategies for wealthy, rising
middle class, and poor customers across country markets (Hart and
Milstein, 1999).

Economic development at the base of the economic pyramid may not
follow familiar patterns found in the developed world (Arnold and
Quelch, 1998; Hammond, 1998). As the Nobel prize winning economist
Joseph Stiglitz suggests, the failure of the worlds global financial
institutions in their efforts to facilitate economic development that is
more inclusive demonstrates the dangers of relying on traditional
players and their limited views of what is appropriate and effective
(Stiglitz, 2002).


3


MARKETING STRATEGY FRAMEWORK

Source: Booz-Allen & Hamilton
1



THE SUCESSFUL MNCs IN INDIA AND THEIR MARKETING
STARATEGY ARE:-

(1) NOKIA

(2) POCTER AND GAMBLE

(3) SAMSUNG

(4) HYUNDAI

(5) LG
4

NOKIA-
Nokia is one of the largest mobile phone manufacturers in the world. While it is in a very
strong leadership position right now, the future of the company is in balance as the industry
matures.
Headquartered in Finland, Nokias business is divided into four divisions:

Nokia Mobile Phones
Nokia Networks
Nokia Ventures Organizations
Nokia Research Centre
Nokia brand is an asset that has been carefully cultivated over the years, throughout which
the company has managed to predict and satisfy consumers needs and preferences ahead the
competition.
In 1989, Matti Alahuhta developed a new strategy for Nokia that focused on three key points:
The development of a product with global appeal,
Nimble movement to sell it internationally,
Most importantly, a commitment to learning what consumers want, without
consideration of the limits of existing technology




The Marketing Strategy of Nokia
[15]

In the highly competitive $3 billion mobile phone market in India,
Nokia has managed to make its brand the phone of choice for millions.
It currently has a market share of over 70 per cent.
5

MARKETING STRATEGIES

By 1990, Nokia identified some of the features that eventually establish it as the
leader in setting industry benchmarks. The Nokia 2110 launched that year, gained
popularity with a large screen, elegant design, and a clean user interface.

During the early 1990s, Frank Nuovo, head of Nokias worldwide design team, led
Nokia to design phones that offered customizable rings, elliptical designs, and custom
faceplates. Although such features may appear trivial or obvious in hindsight, Nokia
continued to gain market share by paying attention to the details that worked to
enhance ease of use and customizable preferences.

The insight that the handset could be a stylish fashion accessory, rather than merely a
communication tool, allowed Nokia to lead the trends and direction of the entire
handset industry. In addition to a superior design effort, Nokia assembled a diverse
team to research how consumers can use its phones. The team consisted of engineers,
graphic designers, sociologists, psychologists, and even a theatre director. While
theyve designed similar, easily recognized handsets, Nokia has successfully
segmented the market to target specific demographic groups. For example, in the year
2000, different phones were marketed to appeal to the rugged user, the
sophisticated user, and the youth market, among others.

With all these product innovations, designed to satisfy customer preferences, Nokia
has reinforced its brand image of providing cutting-edge communications technology.

Analysts have positively characterized the company by describing it as young, sexy,
sophisticated, hip and generally with it. 8 Alternatively, theyve compared Ericsson
as an austere, conservative, middle-aged Swedish engineer, which supports the
widely held belief that Ericssons handsetshare unfashionable.

Since Motorola lethargically moved from analog to digital phones, Nokia was able to
overtake them as the leader in the handset. Subsequently, Nokia leveraged its superior
marketing strategies and powerful brand to avoid the price wars that have afflicted its
key competitors.

Nokia embarked on direct-to-consumer advertising, including sponsorships and
product placements.

Nokias handsetspositioned as stylish and cutting edge, customers will continue
to pay for the perceivedadded value of the brand.

It also has strategically placed its products in movies such as The Matrix.

The youth market, the handset should add services with an emphasis on
entertainment. For instance, MP3 players, short message services, chatting, and
mobile gaming are some promising examples. Also for the youth market, careful
attention should be paid to the design of the handset. Teenagers and young adults
simply wont buy if the new handset does not look cool or hip.


6

For professional users, Nokia should provide the ability to remotely access their data
and files through the handset. Calendars, conference schedules, e-mails, PowerPoint
presentations, spreadsheet, and word processing documents should be obtained with
the touch of a button, at least in the corporate site, if not nationally. Due to the limited
memory capacity available to handsets, Nokia should also provide the means to
transfer information from the handset to a computer or PDA. Professional users are
known to pay premium prices for convenience.


FLOW CHART OF NOKIAs MODEL FOR MARKET PENETRATION
[15]






With mobile handset penetrating through the mass market, it is becoming increasingly
difficult for handset makers to sell additional mobile phones and sustain growth. This is










especially true for a market leader like Nokia. Nokia has fully recognized the potential of the
replacement market.
Our firm opinion continues to be that the replacement will continue to
grow and the share of replacements in the total market will grow,
MattiAlahuhta, president of Nokias mobile phone division.
7

POCTER AND GAMBLE-

P&G ranks #39 in the list of Fortune 500 companies
[4]
, before its main competitor Johnson &
Johnson (#57) and Kimberly-Clark (#142). P&G also outperforms Unilever and Nestle, the
companys main competitors overseas.
The P&G business dates back to the mid-1800s when it began as a soap and candle-making
company. The company started sponsoring radio programs which became known as soap
operas in the 1930s when radio was emerging a popular medium. The brand continued to
produce soap operas in the television era, including the now-defunct As the World Turns.
Operations
As of July 1, 2011, the company's operations are categorized into two "Global Business
Units" with each Global Business Unit divided into "Business Segments" according to the
company's 2011 Annual Report. Dimitri Panayotopoulos is Vice Chairman of Global
Business Units
[2].
CEO Bob McDonald.
Beauty segment
Grooming segment
Health Care segment
Snacks & Pet Care segment
Fabric Care & Home Care segment
Baby Care & Family Home Care segment

This is the second largest FMCG Company in India which does not lag much behind than the
topper Unilever. The company has two subsidiaries in India- P&G Home Products and P&G
Hygiene and Health Care Ltd. It is the fastest growing Fast Moving Consumer Goods
Company of India

Procter & Gamble
[5]
(P&G) is the biggest maker of household products, with at least 250
brands in six main categories: laundry and cleaning (detergents), paper goods (toilet paper),
beauty care (cosmetics, shampoos), food and beverages (coffee, snacks), feminine care
(sanitary towels) and health care (toothpaste, medicine). Two dozen of P&G's brands in India
are billion-dollar sellers, including Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest,
Downy, Gillette, Mach3, Iams, Olay, Pampers, Pantene, Tide, Gain, and Wella, among
others. P&G purged its coffee in 2008 and it's selling Pringles.

Being the acquisitive type, with Clairol and Wella as notable conquests. P&G's biggest buy in
company history was Gillette in 2005.

8

P&Gs famous brands include Ariel, Pantene, Head & Shoulders, Fabreze, Sunny Delight,
and Oil of Olaz. About half of P&G's sales come from its top ten brands.

P&G also makes pet food and PUR water filters and produces the soap operas Guiding Light
and As the World Turns. Finally, P&G produces chemicals. Today, P&G markets its products
to more than five billion consumers in 130 countries.

The company has on-the-ground operations in over 70 countries around the world, and
employs more than 129,000 people.

For fiscal year ending June, 2011
Sales: $82,559.0M,
One year growth: 4.6%,
Net income: $11,797.0M, Income growth: (7.4%)
Consumer products manufacturer Procter & Gamble Co. is said to be ending its 77-year run
as a prominent sponsor and producer of soap operas a genre the company helped create
in favor of producing more campaigns using social media.
The switch from soap operas
[8]
to social media is one motivated by its success with previous
social media campaigns such as its Old Spice Guy YouTube promotion and a desire to
capitalize on the more readily available opportunities of reaching women through digital
media.
Principal Subsidiaries
Cosmopolitan Cosmetics GmbH (Germany);
The Folger Coffee Company; Giorgio Beverly Hills, Inc.;
The Iams Company;
Max Factor & Co.;
Noxell Corporation;
Olay Company, Inc.; P&G-Clairol, Inc.;
Procter & Gamble Pharmaceuticals, Inc.;
PUR Water Purification Products, Inc.;
Tambrands Inc.;
Vick International Corporation;
Vidal Sassoon Co.;
Procter & Gamble Australia Proprietary Limited;
Procter & Gamble Inc. (Canada);
Procter & Gamble France S.N.C.;
Wella AG (Germany);
We continue to advertise during daytime TV including soap operas as a way
to reach consumers, a company spokesperson tells Mashable. In our
marketing approach we build our brands based on the appropriate integrated
holistic marketing campaign that reaches the consumer when and where they
are receptive. As consumers spend more time online and via social media
networks, our brands are naturally adding these options to their marketing
plans as it helps them engage and serve consumers.

9

Procter & Gamble India Holdings, Inc.;
Procter & Gamble Italia, S.p.A. (Italy);
Procter & Gamble Nederland B.V. (Netherlands);
Procter & Gamble Switzerland SARL;
Procter & Gamble Limited (U.K.);
Thomas Hedley & Co. Limited (U.K.);
Yardley of London Ltd. (U.K.).
Marketing Insights
P&G is one of the worlds biggest advertisers
[7]
. Advertising Age estimate a 1999
media spend of $4.7bn [3,3bn], of which around $3bn [3,253bn] was outside the
US, making it the world's #2 advertiser. The company last year has spent nearly $9
billion per year to advertise its products. The company is finding social media sites
such as Twitter, Facebook and YouTube to be more effective channels for reaching
women and has spent much of 2010 experimenting with campaigns in these arenas.

Procter & Gamble India is one of the country's leading advertisers, with a
comparatively small portfolio of products led by India's best-selling healthcare brand,
Vicks (1951).

Gillette's Himalaya team, a global group based partly in Boston but focused on India,
is already charged up. In India, about half of men's shaves are done in barbershops
where barbers break double-sided blades in two and use them repeatedly. The team's
razor-and-blade innovation, they report, involves simplification to the essential
features to do the job, an affordable cost through manufacturing innovations, and new
way to reach lower-income shavers. They preach health as well as grooming
benefits.
[3]


P&G invests heavily in innovation, outspends the competition in R&D, and targets
emerging markets with growth potential. But to execute, P&G is redoubling emphasis
on its culture and values.

Indian Ambassadors of Pocter and Gamble:

Olay- Susmita Sen and Kajol
Pantene- Lara Dutta, Shilpa Shetty
Head & Shoulders- Kareena Kapoor, Preety Zinta

Wishper Money Back If the experience of the customer is not as per the perceived
standards of the customer than the money will be refunded.


10

SAMSUNG-

[16]

Advertising: -

Samsung is involved in aggressive marketing and advertising of its product to develop
attitudes, create awareness, and transmit information in order to gain a response from the
target market.

Their main advertising channels include 'media' such as newspapers (local, national, free,
trade), magazines and journals, television (local and national) cinema, outdoors advertising
(such as posters, bus sides).

The initial advertisements communicated presence of Samsung in worldwide markets and its
dominance in those markets.

To increase its brand awareness, Samsung went in for celebrity endorsements. Initially, the
company signed Hindi film actress, Tabu, to endorse its brand. Till 2002, Samsungs ads
focused on the technological supremacy of its products.

But by late 2002, in addition to the technology plank, the company started advertising on the
plank of passion for country and sports (cricket and football). Its latest ambassador is John
Abraham for its mobile phone and Rahul Dravid for its Television range.
11

Promotion:-

Offering advanced technology products and positioning itself on the technology platform will
not help a company sell its products if it fails to communicate properly with the potential
customers. To raise brand awareness and create strong, favorable and unique brand
associations, Samsung adopted various marketing strategies like celebrity endorsements,
corporate advertisements, highlighting its technological superior goods and many
promotional schemes.

Sales Promotion:
Along with advertisements, Samsung also focuses on promotional schemes to increase its
sales. In October 2001, Samsung launched its highly successful promotional scheme, the
Samsung Phod keDekhoOffer. This offer instantly boosted the sales of the company
generating sales of Rs. 2.75 bn from this offer.

The next major promotional campaign was the Phir Se Phod Ke Dekho offer. The offer was
launched during October-November 2002 generating a sales of Rs. 380 crores. It was a repeat
of the earlier Phod Ke Dekho campaign.

On March 20, 2003 Samsung Launched 'Samsung Rang De Kismat Offer' for Frost Free
Refrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores, with the purchase
of any Samsung Frost free Refrigerator. This Promotion derives its name from the 'Rang de
Kismat' glass, which was handed over to a customer with the purchase of any Samsung Frost
Free Refrigerator.

Following its success with its 'Samsung Rang De Kismat Offer' Samsung India come up
with another innovative Consumer Offer Samsung's Bundling Offer with Reliance
IndiaMobile for the buyers of its Consumer Electronics and Home Appliance Products in
the Delhi and NCR Region on 25 July, 2003.

12

On 6 October 2003 Samsung India Electronics Ltd launched its mega festival promotion
called Samsung Pinning Toh Winning Offer on an all India basis.

Following its success with its Samsung Pinning Toh Winning Offer Samsung India
Electronics Ltd launched The $-DOLLAR Program for its IT Reseller and System
Integrator fraternity on June9, 2004.

The last sales promotion offer was launched on Feb 3, 2005 called Fastest Finger First
which was a nationwide contest to find Indias fastest SMSer. The message to be typed reads
as follows: The razor-toothed piranhas of the genera Serrasalmus and Pygocentrus are the
most ferocious freshwater fish in the world. In reality they seldom attack a human". This
SMS had to be typed on the cellphone keypad, complete with punctuation marks and lower &
upper case. No predictive text (T9 Dictionary), QWERTY keyboards/ any keyboard was
allowed.

Sponsorship:-

Samsung used sponsorship of events like Olympic series to boost its sales. Samsung was the
global wireless communications sponsors at the Athens Olympics. Samsung used the strategy
of relating itself directly with the values of the Olympic games, which included attributes like
world class, global, excellence, fair competition and peace. The Olympic series of August5,
2004 was Samsungs salute to the Olympic values.

Samsung was the sponsor of Lakme India Fashion Week held on April21, 2005. Team
Samsung cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag launched the Worlds
Best Handset, Samsung D500 during the Samsung Show at the Lakme India Fashion Week.
The theme for the Samsung Show was The Best Thing Says Everything in keeping with the
positioning of Samsung D500 - Samsungs latest and path-breaking mobile phone which has
been rated as the Worlds Best Mobile phone by the 3GSM Association World Congress
held at Cannes in February 2005.

Samsung sponsored Samsung & MTV Youth Icon 2005 on June10, 2005. The idea behind
the sponsorship was that the Samsung Mobiles were targeted at the fun loving, lifestyle
oriented and trendy youth of today. By associating with the Samsung & MTV Youth Icon,
they are seeking to further strengthen their relationship with the youth. Samsung mobiles
make a style statement and by partnering with the Youth Icon, this positioning is further re-
inforced.

Samsung was even the sponsor of Samsung I I FA Awards held on June 13, 2005. Popular
film actress, Preity Zinta was awarded the Samsung Diva award while Hrithik Roshan was
conferred the prestigious Samsung Style Icon award at the Samsung IIFA Awards 2005.
Samsung India had carried out an online voting process on the Samsung India website
between May 20th - June 5th 2005 for selecting the recipient of the Samsung Style Icon and
Samsung Diva awards.

The same was also promoted extensively on other sites like indya.com and msn.com as well.
The Company received a phenomenal response to this online voting contest. The Samsung
Style Icon and Samsung Diva awards which have been growing in popularity year on year,
the company uses the response level received every year as its popularity indicator.

13

Direct Mail:-

Samsung even uses Direct Mail concept for its product promotion. Samsung sends mail to
target consumers depending on the database i.e. the frequency of site visit and on their
purchases. Samsung is very actively involved in e- commerce.
Distribution Channels:-

Samsung uses supply chain to enhance differentiation, increase sales and penetrate new
markets and channels. Its supply chain is beneficial in several ways. It helps the company to
deliver products to the customer faster. It efficient supply chain is transparent, so that all the
players in the supply chain have the right information at the right time about the movement of
the products within the chain. This means lower inventories, elimination of waste, and
reductions of costs. In addition to the intangible benefits like quick feedback from customers
help in launching new products.
Samsung has 24 state-level distribution offices and a direct dealer interface. The direct dealer
interface helps the company to get quick feedback from dealers, and enables it to launch
products according to consumer needs.
Shop-in-shop:-

Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brand
outlets, as the focus there is to create a shop-in-shop atmosphere.
The Exclusive Showrooms:

Keeping its target customer to display Samsung products in a more lifestyle ambience and to
communicate the product benefits in a more interactive manner, Samsung India has set up a
widespread network of over 80 exclusive showrooms comprising Samsung Digital Zone
(focusing on high-end digital audio-video products such as MP3 players, camcorders and
LCD/plasma TVs).
The Samsung DigitAllhome goes beyond the concept of a Digital Plaza or a Brand Shop
because in the DigitalAllhome, they are trying to create a more interactive environment and
providing a more lifestyle orientation to the display, so that the customer can visualize the
products in his/her own home settings. The Company plans to supplement its existing
Samsung Digital Plazas' (Brand Shops) by setting up 'Samsung DigitAllhomes' in select
cities. The Company will also be creating exclusive Samsung corners in multibrand outlets
this year.
The demands and needs within the distribution channel lead to the establishment of
MyMemoryStore.com. The site is more than an ordinary selling site, infact it is an industry
portal that allows the business partner to come in and track the relevant industry information
within the channel, meaning minimizing the inventory overhead.
Samsung is also planning to invest over $1 million in setting up a chain of exclusive outlets
called `Samsung Talkies'. The entire Samsung mobile range including the latest handsets will
be displayed at the outlets, which will be set up in more than 10 cities across India, including
Bangalore, Mumbai and Hyderabad.
14

HYUNDAI

Hyundai, with a name prone to mispronunciation and virtually no global heritage, entered
India in 1998, it signed up Shah Rukh Khan to educate the consumers about the brand.
Behind the scenes, the company resorted to extensive market studies and technical camps
before coming up with its first offering, Santro, a hatchback with tall boy design. And it had
chosen its market well, starting with the small car. Untill yet, Hyundai has stayed true to its
strategy and played by the conventional Indian market rules tailored to suit its specific
targets.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 20 variants of passenger cars in six segments. The Santro and
Pa in the B segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment,
the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the
SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an
increase of 18.5 % over CY 2005. In the domestic market it clocked a growth of 19.1 % as
compared to 2005, with 186,174 units, while overseas sales grew by 17.4 %, with exports of
113,339m units.

HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the
most advanced production, quality and testing capabilities in the country. In continuation of
its investment in providing the Indian customer global technology, HMIL is setting up its
second plant, which will produce an additional 300,000 units per annum, raising HMILs
total production capacity to 600,000 units per annum by end of 2007.

Hyundai, which chose to enter the Indian market, with a small car (Santro) which offers value
for money to the country's price sensitive consumers. Hyundai has also made very heavy
investments in manufacturing facilities. After its initial success, Hyundai has started to widen
its product range.
Hyundai is one of the few MNCs to have established meaningful volumes in India in quick
time. The company is among the top three car manufacturers in the country and is now
emerging as a real threat to the market leader, Maruti in which Suzuki of Japan has a major
stake.
There are many lessons to be learnt from Hyundai. The company spent several months
customizing Santro. Realising that Indian consumers attach much importance to lifetime
ownership costs, Hyundai reduced the engine output of the Santro to keep its fuel efficiency
high, priced its spare parts reasonably, and made various changes to the product
specifications to suit Indian market conditions.

15

In contrast, other global automakers have entered the market with vehicles with low gas
mileage and high repair rates and after-sales service costs. Unlike many of the global auto
manufacturers in India which source only about 60 to 70 percent of their components locally,
Hyundai buys 90 percent. Hyundai has also plans to make India a global manufacturing hub
that can serve other countries as the local market matures. Contrast Hyundai with players like
Honda and Ford who have been very tentative about setting up full-fledged manufacturing
facilities.

Marketing Communications

By integrating all messages in all media reinforce the brand name is reinforced& main points
of product differentiation.

Research about media consumption, pattern will helped advertising agency to choose
appropriate media and timing to reach prospects before & during the product introduction.

Thereafter, advertising appeared on a pulsing basis to maintain brand awareness and
communicate various differentiation messages.

The agencies will also co-ordinate public relation efforts to build Hyundai brand & support
the differentiation message.

To attract market attention & encourage purchasing, limited time, registration & insurance
were offered

To attract, retain & motivate channel partners for a push strategy, trade sales promotions and
personal selling to channel partner were used.

Promotion
Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during various
college festivals and exhibition.

Television advertisements

Advertisements to promote and market the product will be shown on leading television
channels. Major music and sports channels will promote and they will reach out to the youth
will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.

Radio

Radio is the medium with the widest coverage. Studies have recently shown high levels of
exposure to radio broadcasting both within urban and rural areas, whether or not listeners
actually own a set. Many people listen to other people's radios or hear them in public places.
So radio announcements will be made and advertisements will be announced on the radio
about the product features and price, qualities, etc.



16

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the
product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas
and various other locations.

Workshops and Seminars

Workshops and seminars were held in colleges and big corporate to make people aware about
the companies past performance and product features, its affordability and usage, vast
distribution network. Road shows will be conducted where free trials of the car would be
given.

Banners, neon signs

Hoardings, banners, neon signs were displayed at clubs, discs, outside theatres and shops to
promote our brand car.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read.
These booklets will provide information about our company; the products offered which suits
the customers need accordingly.

Offers and Discounts
[17]

Hyundai Motor India Ltd (HMIL) have announced a discount of Rs 33,000 along with other
benefits like free insurance and exchange bonus. Under the scheme, all Santro GL (Solid)
purchases would get a special price of Rs 2.99 lakh. Santro non AC and Santro GLS will be
eligible to get free insurance as well as car accessories worth Rs 7,000 and Rs 15,000
respectively.













Besides, consumers would be offered exchange benefits up to Rs 20,000 on all Hyundai cars.
Also, a loyalty scheme has been announced whereinthe the existing Hyundai customers can
avail the loyalty discounts up to Rs 20,000 on purchase of new Hyundai Getz (petrol), Accent
(GLE) and Verna (Petrol and Diesel).
"The schemes announced will provide our customers with an attractive
value for money and with the prevailing economic conditions, this should
provide an impetus for our sales and offset a part of the ownership cost
which has gone up considerably in the past few months."- HMIL Senior Vice
President (Marketing & Sales) ArvindSaxena
17

LG
Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG
Electronics, South Korea. It is one of the leading companies in consumer electronics, home
appliances and computer peripherals in India. It has a turnover of almost US$ 1000 million in
India.

LGEIs salesare increasing with a CAGR of 40 per cent over the past five years.
LG is the market leader in various segments like colour TVs, microwave ovens, frost-free
refrigerators, washing machines and air-conditioners, with market shares of 26.2 per cent,
41.2 per cent, 37.9 per cent, 34.1 per cent and 34 per cent respectively.

LG Electronics India received the Occupational Health & Safety Management System
OHSAS18001:1999 certifications from the British Standards Institution (BSI), India, for a
systematic approach towards Occupational Health and Safety Management System.

LGEI exported goods and services worth US$ 40 million in 2003. The major export markets
for LGEI are the Middle East, West Africa and Central Asia.


Leveraging Indias IT advantage

LG Electronics has awarded a contract to develop IT solutions to LG Soft India
(LGSI). The project involves development and support for ERP, SCM, CRM and IT-
enabled services for LG Electronics 60 overseas subsidiaries and manufacturing
facilities worldwide.

LGSI has offices in San Jose, London and Seoul with over 300 professionals in the
development facility at Bangalore. All its offices are networked for swifter
communication and decision making.


Marketing strategies

To make itself a known brand in the consumer electronics sector, LG has taken innovative
marketing and promotional initiatives:

Launch of new technologies in consumer electronics and home appliances.

Its product designs are centred on the middle & upper class and the ads screened
highlight the product features.

Its employees are totally committed to quality and innovation. They chant TPI 50
and TDR, which signifies, total productivity innovation and tear down re-
engineering. Through this method the company is bringing down its costs &
developed new products.

18

LGs corporate image is that of being the Digital leader of the new millennium.

LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World
Cup, and followed it up in 2003 as well.

LG brought in four captains of the Indian cricket team to endorse its products.

LG invested more than USS 8 million on advertising and marketing in this sport.

LG has differentiated its products using technology and health benefits. The CTV
range has Golden Eye technology, air-conditioners have the Health Air System
and microwave ovens have Product localisation

Product localisation strategy- used by LG

LG came out with Hindi and regional language menus on its TV.

Introduced the low-priced Cineplus and Sampoorna range for the rural markets.

LG was the first brand to introduce gaming in CTVs. In continuation of its association
with cricket, LG introduced the cricket game in CTVs.

Regional channel strategy and wide distribution network.

LG has adopted the regional distribution model in India. All the distributors work
directly with the company. This has resulted in quicker rotation of stocks, and better
penetration into the B, C, and D class markets.

LG also follows the strategy of stock rotation, rather Health Wave System than
dumping stocks on channel partners.

LG has a positive perception of India and the Indian consumer. LG is making a foray
into the e-commerce market in India and has partnered with various local websites
like fabmall.com, rediff.com, indiatimes.com, and www.indiaplaza.com

Conclusion
The above experiences clearly bring home the point that success in the Indian market depends
crucially on commitment.
This implies a willingness to set up a fully owned subsidiary as opposed to a joint venture, in
full-fledged manufacturing facilities as opposed to the assembly of completely knocked down
kits, in a widespread distribution network as opposed to a limited presence in the major cities
and in customised products as opposed to standard offerings from the parent company's
product range.
It also implies an ability to work patiently within the constraints of the local regulatory
framework. Commitment must be backed by flexibility. MNCs must keep fine-tuning their
strategy till they have a winning formula in place. It is MNCs which show both commitment
and flexibility that are most likely to succeed in India.
19

References

[1]Market Entry Strategies: Pioneers Versus Late Arrivals:By Gurumurthy Kalyanaram and
Ragu Gurumurthy

[2]http://www.pg.com/en_US/company/purpose_people/executive_team/dimitri_panayotopo
ulos.shtml

[3]Inside Procter & Gamble's New Values-Based Strategy- By Rosabeth Moss Kanter


[4] www.hoovers.com/cgi-bin/offsite?site=HBN&url=www.fortune.com/fortune/fortune500
(source: Hoovers Business Information, date viewed: 04/10/01)

[5] www.pg.com/about_pg/overview_facts/history.jhtml (source: P&G, date viewed:
05/10/01)

[6] Journal of International Business Studies, 121 elite at the top of the economic pyramid

[7]
www.mind-advertising.com/us/pg_us.htm (source: Mind Advertising, date viewed: 05/10/01)
www.mind-advertising.com/us/pg_us.htm (source: Mind Advertising, date viewed: 22/10/01)

[8] A comment by G.W. Goodale on the book titled Soap Opera, the inside story of P&G, by
Alesia Swasy.

[9] www.fastcompany.com/online/49/bestpractice.html (source: Fast Company, the
Magazine, August 2001 issue, date viewed: 22/10/01)

[10] www.internetwk.com/transform/transform110199-3.htm (source: United Business
Media, date viewed: 10/10/01)

[11] www.fastcompany.com/online/49/bestpractice.html (source: Fast Company, the
Magazine, August 2001 issue, date viewed: 22/10/01)

[12] Plan Global, Win Local, by John Millen, Vice President, Customer Business
Development at Procter & Gamble ( www.kamcity.com/library/global.htm, source: Kamcity,
date viewed: 22/10/01)

20

[14] MNCs in India By A V VedpuriswarAsst. Vice President (Knowledge Management), Satyam
Computer Services.
[15] Business Intelligence Concepts- Nokia v/s Motorola by Arend, Ricardo and Helmi,pp
28,31
[16] The Management Strategy of Samsung in East Asia-Lee Soo Chul, Executive Vice
President, Samsung Corporation-November 26, 2003
[17] www.topnews.in-hyundai-offers-discount-and-attractive-schemes-boost-sales-
296121.htm-Submitted by Malini Ranade on Sat, 12/06/2008 - 16:06.