LG Electronics is a global electronics and telecommunications company headquartered in Yeouido, Seoul, South Korea.

The company operates its business through five divisions: mobile communications, home entertainment, home appliance, air conditioning and business solution. LG Electronics is the world's second-largest manufacturer of television sets and third-largest producer of mobile phones.

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.

LG is the market leader in various segments

Low brand awareness about LG in India.

One of the last MNCs to enter India. (Samsung, Sony & Panasonic entered in 1995 & LG in 1997.)
High import duty. Competition from local players and other multinational companies in the consumer electronics segment Price sensitiveness of Indian consumers.

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.

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 US$ 8million on advertising and marketing in this sport. LG has differentiated its products using technology and health benefits.

Product Innovation

LG believed in holding the interest of its customers by bringing out new products regularly. In its first year of operations, it launched 70 models across a range of products. In 2001, it launched 45 new models across its entire product range and in 2002 it launched 60 new models. LG customized product for Indian markets. Before developing products, LG conducted market research to ensure that its products met local requirements...

Product localizations
Product

LG.

localization is a key strategy used by

LG

came out with Hindi and regional language menus on its TV.
the low-priced Cineplus and Sampoorna range for the rural markets. was the first brand to introduce gaming in CTVs. In continuation of its association with cricket, LG introduced the cricket game in CTVs.

Introduced

LG

Distribution
Soon

after its entry into India, LG realized that it needed to be innovative to capture the market. expanded throughout the country to far-flung towns and semi-urban markets. It sent vans across the country, covering a distance of 5000 km every month, to increase brand awareness among the trade and the customers...

LG

Regional channel strategy and wide distribution network

LG has adopted the regional distribution model in India. A

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

LG has over 46 branch offices and another 110 area offices across the country.

 Initially,

when LG entered the Indian market, its products were priced high.
its products were priced as high as Japanese products. in 1998, LG launched 'Sampoorna,' a low priced TV aimed at rural consumers...

Thus,

However,

Of all the elements of marketing mix, LG seemed to have put more emphasis on promotion and advertising. In 2002, it spent around 1.3 billion on advertising. Unlike many Indian brands which advertised seasonally i.e.,(two-three months of the festival season- September, October and November), LG advertised all round the year.

 Today

LG is one of the top rated electronics company in India, and its products are widely used by all sections of consumers in India.

LG

Indias annual turnover was10700 cr in 2008,which is an indication of tremendous growth of the company, since the day itwas launched.

 LG

has proved its mettle by providing its customer with value for money, along with maintaining and at times increasing its profit.

LG

is surely the perfect example for other MNCs who want to set their foot in India