Analysis of LG products in rural marketing
Summary :
Table of Contents
Abstract
After the liberalization policy introduced by the Indian Government, a number of Multinational Corporation(MNC) came into India. Among the major companies, which decided to spread its tentacle in India, LG was the leading one. The year 1997-98 has been characterized a stiff competition period, but LG's sales and distribution have shown positive graph. During this period, the Indian industry grew by 10.2% compared to 4.3% in 1996-97. In this growth, LG's role was commendable.
LG entered and explored the Indian market in 1997. Its entry into the Indian soil has changed the market. There were also major players like Sony, Samsung, Philips, Akai, Sharp, Thompson etc. the biggest hit of LG was its colored TV, washing machine and other consumer durable products such as refrigerator etc.
espite all this the Indian companies have remained strong. The rate at which foreign brands are growing is only due to the fact of a dynamic business environment. Domestic TV firms are guided by objective of maximizing short run profit rather than long term growth and the firms competitive strategy is guided by product differentiation and price manipulation-Videocon's money back offer, Akai's price led wars, BPL's price consideration, Samsung's schemes- despite all this LG and Sony have opposed exchange offers and price led wars.
But all other domestic players have over -reacted and this has diluted the strategic issues of technological innovation through customer after sales service and ads. The CTV domestic player has not understood the importance of technological innovation.
The coming in of the MNC's has created a new scenario with a new market profile. The entrenched position of the Indian market leaders in CTV's Videocon, BPL and Onida has been challenged by the MNC's such as Akai, Panasonic, Samsung, LG, Sony and Sharp.
LG entered and explored the Indian market in 1997. Its entry into the Indian soil has changed the market. There were also major players like Sony, Samsung, Philips, Akai, Sharp, Thompson etc. the biggest hit of LG was its colored TV, washing machine and other consumer durable products such as refrigerator etc.
espite all this the Indian companies have remained strong. The rate at which foreign brands are growing is only due to the fact of a dynamic business environment. Domestic TV firms are guided by objective of maximizing short run profit rather than long term growth and the firms competitive strategy is guided by product differentiation and price manipulation-Videocon's money back offer, Akai's price led wars, BPL's price consideration, Samsung's schemes- despite all this LG and Sony have opposed exchange offers and price led wars.
But all other domestic players have over -reacted and this has diluted the strategic issues of technological innovation through customer after sales service and ads. The CTV domestic player has not understood the importance of technological innovation.
The coming in of the MNC's has created a new scenario with a new market profile. The entrenched position of the Indian market leaders in CTV's Videocon, BPL and Onida has been challenged by the MNC's such as Akai, Panasonic, Samsung, LG, Sony and Sharp.
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