Korean Conquest:How LG and Samsung won over the Indian Market

Presented by:M. Arsalan Sheikh (#7989)Ahsan Bham (#8106)Sobia Khan (#6316)

Market Positions

• Market Leader– Samsung

• Market Challenger– LG– Videocon– Sony– Whirlpool– Phillips

• Market Followers– Haier– Onida– Panasonic– Godrej– Electrolux– Thompson– Akai

Value Disciplines

Achieving leadership positions in market.• Samsung– Customer Intimacy (Technological)

• LG– Product Leadership (Innovators)

• Videocon– Operational Excellence (Price minimisers)

Competitive strategiesArea of Competition SURVIVAL STRATEGY

Staying aliveLEADERSHIP STRATEGY

Targeting market leadershipWinning and retaining CustomersCustomer Value Low cost/benefit ratio Creating higher customer valueMarketing Strategy Mass marketing Differentiation and positioningCustomer Satisfaction Customer service Customer intimacy

Product Innovation New attributesLine extension

New product categoriesNew brands – Speed

Building Your Sustainable Competitive AdvantageStrategic Growth Focus Building resources Building distinctive capabilitiesInnovation Linear SystematicTechnological Innovation Incremental RadicalProcess Innovation Functional improvements Enterprise-wide BPM

Business Innovation Perfecting traditional business model

Creating new adaptable business models

Promotion:Print Ad

Print Ad:Overview

• Print advertising of 'Consumer Durables' increased by 9% during 2009 compared to 2008

• 'Television Sets' was the most advertised category of 'Consumer Durables' sector in Print during 2009

• 'LG Electronics India Ltd' rules in advertising of 'Consumer Durables' in Print during 2009

• More than 45% of 'Consumer Durables' ads were for Sales Promotion ad campaigns in Print during 2009

Print Ad:Overview• Top 10 new brands of ‘Consumer Durables’ sector

advertised in Print consisted of 2 brands each of ’Videocon Industries Ltd’, ‘Eveready Industries India Ltd’ and ‘Samsung India Electronics Ltd’ during 2009.

• ‘Multiple Promotion’ accounts for 35% of total Sales Promotional ad campaign used for ‘Consumer Durables’ in Print followed by ‘Add on Promotion’ and ‘Exchange Promotion’ with 19% and 15% share respectively during 2009.

Print Ad:Consumer Durables Contribution

Print Ad:Market Share

Promotion:TV Ad

TV Ad:Overview• 14% growth in 'Consumer Durables’ advertising on TV

during 2009 compared to 2008. • 'Samsung LED TV’ gathered maximum TV ad volumes

among all the new 'Consumer Durables’ advertised on TV during 2009.

• ‘Samsung LED TV’, ‘LG Refrigerator’ and ‘Whirlpool Ro Water Purifier’ were the top 3 new brands of ‘Consumer Durables’ sector advertised on TV during 2009.

• Top 10 new Consumer Durable brands advertised on TV comprised of 2 brands each of 'Television sets', 'Washing Machines' and 'Air Conditioners' categories during 2009.

TV Ad:Consumer Durables Distribution

Promotion:Rural Areas (Tier III)o Challenges:

o Electricity Shortage – Sporadic Power Supplyo Acute Water Shortage.o Poor Transportation availability.o Consumer Finance Options.

o Other obstacles:o Literacy rateo Culture and traditionso Rural reacho Too many languages and dialects

Rural Promotional Strategies

• Haat or weekly markets• Melas (25,000 melas; 7.6lakhs visits annually)• Wall paintings• Customer contacts ‘touch point’ (home-to-home)• Van campaigns• Event management• Others