In 1997, when Kwang Ro Kim, LG Electronics India's managing director, said that his company would be India's largest consumer electronics company by 2005, nobody took him seriously. That was the year LG, the Korean chaebol, had set up its 100% subsidiary. The perception of LG's brand was miles below that of Japanese giants like Sony or National Panasonic. Then there were street smart Indian players like BPL, Videocon and Onida who could give the Koreans a run for their money. Kim's grandiose vision was just a pipe dream, cynics wouldn't tire of saying. In three years flat, Kim has made the sceptics eat kimchi. In his shrill quavering voice, Kim says that LG will become the top player much before 2005 -- in 2001. With a turnover of Rs 1,056 crore during 2000 (no other company in the business has crossed the Rs 1,000 crore mark in such a short time), LG is already India's second largest consumer electronics brand, next only to BPL which clocked sales of almost Rs 1,800 crore last year. With sales of close to Rs 1,000 crore, Videocon is at the third spot. Samsung, also of Korea, is fourth with a turnover of Rs 850 crore. From here, LG plans to double its turnover to Rs 2,000 crore this year. By 2001, with a turnover in excess of Rs 3,000 crore, LG plans to displace BPL from the top slot. Kim's confidence stems from LG's success last year. As the adjoining chart shows, in four out of the seven product categories that it is present in, LG is the market leader. In air conditioners, it is second to Carrier, though it is number one in the retail segment of the market. In two categories (colour televisions and direct cool refrigerators), it is the fifth largest player. LG executives are confident of maintaining high growth in the future too. "All the product categories that we are present in are growing at a fast clip -- colour televisions are growing at 30%, microwave ovens at 50% and frost-free fridges at 25%. This is a good reason why we can be number one," says LG Electronics India vice-president (sales & marketing) Ajay Kapila. The industry doesn't put it beyond Kim and his men, though appreciation of their efforts is still slightly guarded. "The brand momentum is there, but organisationally it is a little thin," says Philips senior vice-president Rajeev Karwal who was earlier in charge of sales and marketing at LG.
... fashion industry. I believe through all of their marketing tactics and great leadership they will continue to thrive. Although I am not a customer of the brand, I have found great interest in completing this product to explore and expand and broaden my fashion in the brand. The company has had consistent sales increase and if it continues to utilize its business plans wisely, I believe it will continue to increase.
Sony’s problems continued and were ‘most obvious in its core electronics business, which accounts for two-thirds of its revenues’ as the consumer devices such as TV’s, DVD players and music players came under fierce price pressure and Sony failed to come up with any more trend-setting new gadgets to boost profits (The Economist, 2005). Idei resigned after a series of stumbles and handed the reins to Welsh-born American Howard Stringer, a former television executive (Dvorak, 2005, p.1). Prior to joining Sony, Mr. Stringer had a distinguished 30-year career as a journalist, producer and executive at CBS Inc (www.sony.net).
All the other aspects of this company show that even if the economic situation at this point is not that bright their sales is rising, and that all is the result of hard work within and outside the company, UPS structure and UPS management.
By investing more in market research than any other company, conducting thousands of research studies and investing millions in consumer understanding every year, P&G has made a success out of articulating unspecified consumer wants and needs translating them into products. Not only is their a successful transition from idea to product, but P&G has also demonstrated global success in branding these products into household names with the logistics and distribution capabilities to translate it into meeting consumer and retailers needs satisfactorily. By translating these characteristics into continuously improving efficiency and productivity, P&G can give the best brand value to the Indian market by building relationships with consumers,businesses and retailers, making Oral B the toothbrush household name in India.
Gome Electrical Appliances: Competing for Channel Leadership tell us a story about the legendary development of Gome Electrical Appliances. Its low price sales strategy and the countermeasures toward the price control of the color television price alliance to maintain channel leadership. This case analysis identified two major problems of market strategies Gome took in the channel leadership battle, provided two recommendations, and then analyzed the feasibility of the recommendations.
With a near total saturation of the consumer electronics market, companies need to look beyond their boundaries and add value to their offerings, and sometimes it means total reinvention of the company.
They have always kept up with trends and just a step ahead of their competitors over the
It is important for LVMH to continue to distinguish themselves from other luxury brands, and by continuing to acknowledge that their products are desires and not necessities. They sell luxury, and image. It would be advisable to have better relations with their customers, to increase customer loyalty, but to also get into the minds of the consumer to give the consumer what they desire, all the while staying ahead of the competition. Researchers should be assigned to each specific business unit; it would be a good idea to treat each unit as a separate entity, all-contributing to the same end. By individually enhancing each unit, and eventually collaborating in the end, LVMH will be most profitable. Internet ventures are very important, we live in a time that thrives on technology, and making efforts easier for consumers will be key. Continuing to portray an image or a message with each product will contribute to the brand differentiation. The continual acquisition of profitable names and organizations will continue to increase the profitability of LVMH.
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
By 2002-03, Indian market has grown highly competitive. Due to fall in ARPU (average monthly revenue per customer unit), players fought to capture new subscribers. With industry consolidation, the focus is switching from having a national footprint to the ability to provide value-added services. Opera...
This case study analysis is on Samsung Electronics Company (SEC) and how it has climbed up the ranks in the past decade via calculated marketing strategies, extensive market research and analysis, and a risky bet on how the market will evolve. Samsung’s principle outlook took time and education from within and thereafter the general market.
...re chances of growth and development for the company which is clearly understood through the research done on the Ansoff’s matrix. P&G is much ahead of its competitors and has also won many honors in terms of offering quality and innovative products. The company’s products are also sold by wide variety of retailers around the world and also through many e stores that sells the product online. Finally the company has also got more expansion opportunities which is clearly understood through the Yips model of Internationalization. As the company continues to acquire international brands over the years and succeeds in offering quality and innovative based products to the people all over the world it tend to give a much better completion to its competitors and of course get a wider market share making its competitors give a tough time in the industry.
...ion , Apples a force to be reckoned with without a doubt . They will continue to lead in their industry. There is also opportunity to expand on better products and more innovative products . As mentioned in the introduction, Apple has much room for improvement. “To be number one and remain number one you have to create originality”. Apple must keep up with the changing times so that they remain a leader in portable electronics. Apple has the technology world secured and can continue to lead with the most accurate, most convenient, and fast acting electronics. Apple is successful due to the vision that was a dream and most people would call it “ the American Dream of Technology” .
Originated as low-cost manufacturer of black and white televisions in the year 1969, super sized with a semiconductor segment in 1970s, Samsung delivered massive volume of low-cost consumer electronics to domestic and OEM products to both domestic and global markets until 1993. Due to this fact, company didn’t develop global brand awareness until then. In the global arena, Samsung’s brand message was fragmented and its logo presentations were inconsistent.