The LG Company’s Background Essay
The LG Company’s Background
LG is the brand that is Delightfully Smart. “Life’s Good” slogan, and futuristic logo are a great representation of what we stand for. The letters “L” and “G” in a circle symbolize the world, future, youth, humanity, and technology. LG Electronics’ history has been around by the company’s desire to create a happier, better life. The LG’s company has an operational presence in more than 115 countries across the world. LG Electronics originally founded in 1958 and has since led the way into the advanced digital era thanks to the acquisition by the manufacture of many household appliances, such as radios and television technical expertise. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current “Life’s good” slogan is a backronym. Before the corporate name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.
The In 1960, Produces Korea’s first radios, TVs, refrigerators, washing machines, and air conditioners. In 1994, GoldStar gained sponsorship from the 3DO Company
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The LG Company’s Profile, Vision and Mission
(Reference: http://www.lg.com/global/investor-relations/reports/financial-statements) LG Electronics Inc. was spun-off from LG Electronics Investment Ltd. on April 1, 2002. The company’s shares are listed on the Korea Exchange, and some of its preferred shares, in the form of global depositary receipts (“DRs”), are listed on the London Stock Exchange as of the reporting date. The Company is domiciled in Korea at Yeouido-dong, Yeungdeungpo-GU, Seoul. As of December 31, 2012, LG Corp. Owns 33.7% of the Company’s total shares, excluding preferred shares, while financial institutions, foreign investors and others own the rest. The Company is engaged in the manufacture and sale of electronic products including mobile phones, TV, air conditioners, refrigerators, washing machines and personal computers and of core parts. As of December 31, 2012, the Company operates manufacturing facilities mainly in Pyeongtaek, Changwon, Cheongju and Gumi in the Republic of Korea.
Based on the figures above, LG Company has total assets that cost 23,832,176 and 13,809,221 of total liabilities in the year of 2012. Financial assets and liabilities at fair value through profit or loss are financial instruments held for trading. Financial assets and liabilities are classified in this category if acquired or incurred principally for the purpose of selling or repurchasing it in the near term. Derivatives that are not designated as hedges and financial instruments having embedded derivatives are also included in this category. Financial assets and liabilities at fair value through profit or loss of the Company are categorized in ‘other financial assets’ and ‘other financial liabilities’ on the statements of financial position.
LG’s vision is to deliver innovative digital products and services that make our customers’ lives better, easier and happier through increased functionality and fun. LG continues to pursue its 21st century vision of becoming a worldwide leader in digital that ensures customer satisfaction through innovative product and superior service.
The mission of LG is:
To create value for customers
To respect human dignity
To become the best in its class by winning customers’ acclaim as a true leader in the global market.
The LG Company’s product line
LG’s Microwave Ovens
Why we choose LG’s microwave ovens is because LG has given the latest innovations in the microwave oven. Lightwave technology produce multi-heating system is designed to cook healthier, tastier, gourmet-standard food in a microwave oven with the minimum of fuss, by letting food retain its natural flavors and goodness. Besides, the steam cooking that main for a healthier option, LG’s microwave ovens combine the speed and the power of microwave cooking with the health benefits of steam cooking because stem penetrates deeper on food will removing excess fat and locking in more healthy nutrients. Duo Chef is a dual convection together with multi-level cooking capabilities, means that this twin-fan technology for the microwave oven offers better, more evenly cooked food that’s ready in less time. Duo chef also can defrost food without leaving hotspot.
This microwave oven can cooks up 3-times faster than conventional ovens because it content LG’s solar DOM that is the world first countertop light-wave oven to combine conventional oven and microwave cooking technologies. With simple features like one-touch controls can prepare your favorite food easily just by selecting style of microwave cooking and food type and entering the weight of the food. Child lock is provides extra security to prevent little fingers from interfering with the programming of the microwave oven. LG helps create perfectly cooked meals without the hassle.
LG’s Microwave Ovens Models
Auto Defrost Menu
Auto Cook Menu
Auto Reheat Menu
More easily for user to
Has bigger size and has child lock
Less Power Output
LG refrigerator have upgrade many thing in the innovative features to make sure that foods keep fresh and look more stylish to fit kitchen space. The side-by-side fridge freezers has a beautiful model features ice beam door cooling which the cool air is distributed not only from back vents but also from special side vents. Besides, the top mount fridge freezers are also features Green Plasma technology, which helps to preserve foods in the most nutritious. It also helps to remove bad bacteria and odour, creating pure air quality that keep food fresh by releasing Green lons. At bottom mount fridge freezers features like Moist Balance Chisper and Bioshield technology, a proprietary anti-microbial agent that prevents mould growth from gasket and seal distortion, thereby prolonging the life of refrigerators. LG’s Refrigerator Model
10 years warranty for linear compressor
Non plumbing water and ice dispenser
Ice beam door cooling
5 star energy saving
LG’s Home Air Conditioners
Take control of the environment especially hot weather with LG home air conditioner. LG air conditioner now able to lets us enjoy energy savings while protecting you from harmful bacteria and particles because it has H1N1 filter that can effectively removes H1N1 viruses in the air. LG air conditioner have added the Plasma Air Purifying System to removes microscopic contaminant and dust, and also removes house mites, pollen, pet fur, and cigarette smell. LG’s home air conditioning filter able to removes allergens that causes and it also have triple filter that consists of three different organic compound filters to eliminate discomfort and pain of eye and throat. It also can remove bad odour. After 30 minutes you have press the off button, to blow dry the coil surface area to prevent dust from sticking on it. Opposite of press the plasma button on, you can use air con as an air purifier without even turning on the cooling function.
LG’s Home Air Conditioners Model
Dual Protection Filter
Deep sleep Mode
Plasmaster Skin Care
Plasmaster Auto Cleaning
DUAL Protection Filter (Pre Filter)
3M Multi Protection Filter
Plasmaster Skin Care
Plasmaster Auto Cleaning
LG’s Wash Machine
It designs the washing machine to a big enough size for family sized loads or washer that’s everyday change they cloth. Range of colors can find from pink and red to standard silver, white or black washing machines and it offers less vibration and greater durability than our non-direct drive systems. Deep clean waterfall that centrifugal washing force effectively mixes detergent and water as well as sprays water throughout the washing cycle. LG’s have unique Turbo Drum System revolves in the opposite direction to the pulsator for improved washing machine performance. Besides, smart I-Sensor comes with seven sensors to collect important data during wash to reduce the use of detergent, regulate water hardness and temperature, ensuring the best washing performance.
LG’s Washing Machine Model
3 Programs (Gentle, Normal, Strong)
Roller Jet Pulsator
Inverter Direct Drive System
Auto Lint Cleaner
Inverter Direct Drive System
Allergy Care Cycle
Intelligent Washing System
LG’s Vacuum Cleaners
LG vacuum cleaners able to make it easier to keep home clean with the innovations of Dust compression system that able thoroughly cleans with lasting suction power and easy, hygienic dust control. It helps prevent particles from escaping. Besides, Steam Nozzle is consist that allow to vacuum and mop at the same time, pure water steam is all that’s need to sharpen the shine of your floors. By the way Sani punch vacuum head has been specifically designed to eliminate them to help ensure your bed and other furniture is free from these nasty creatures.
LG’s Vacuum Cleaners Model
Washable HEPA 13 Filter
Sani Punch Nozzle
Washable HEPA Filter
Sani Punch Nozzle
The LG Company SWOT Analysis
SWOT analysis is an analytical method, which is used to identify and categories significant internal factors such as strengths and weaknesses and external factors such as opportunities and threats an organization faces.
Brand to provide reasonable rational appeal such as best product features and good value for money. A wide range of products to serve all categories and a strong focus on safety and quality. LG is a multinational company and a
well-known brand around the world. It has successfully established not only in developing countries but also in developing countries. Effective localization of product offerings for growth markets like India, Brazil, and China. LG try to keep product innovation to attract the customers and capture more market share. Subsidiaries enjoy independence in decision making, it is flexible to adapt to the local market.
LG lack of influence of opinionated period of early adopters, especially in the social media environment. LG has limited market share compared to market leaders.
LG did not have as large an economy as competitors.
LG’s employees mostly are does not skilled.
Fast growth of home appliances, electronic goods market in emerging economies. LG will improved brand image and awareness into market share. Increase product portfolio has been widely.
Through the innovation of existing products can attract more customers, because it is behind the market leadership thus became a leader must make innovations to attract potential buyers and retain existing customers. LG can explore and make use of proportioning and its growth potential evaluation of the profile.
Price close with the Korean rivals like Samsung can disrupt the price sensitive market growth. Highly competitive industry dynamics.
Stagnation of city demand.
Instances of false green claims can weaken the brand value and consumer trust. The economy around the world is not good, it is affecting the customer’s purchasing power.
Based on the SWOT analysis above, the one of LG’s strengths is a wide range
of products to serve all categories and a strong focus on safety and quality. LG Electronics places the highest value to provide customers with reliable products, they can use in a safe way. Product safety must ensure that in any case, the product safety is of the highest priority for the sales target, product design, market and cost. All staff at LG Electronics will exert their best effort to observe standards for the product safety system, acknowledging that safety is a fundamental value of products. With the powerful encouragement of the CEO, LGE has reinforced to the enterprise QA organization, and is shaping the corporate culture to allow neither the slightest quality issues not compromise on quality under the vision of “LG Electronics, Perceived as World Best Quality by Customers and Consumers”. LGE is also trying to provide consumers with the highest-safety products by promoting enterprise quality activities and quality awareness. Besides, the one of weakness is LG’s employees mostly or does not skilled. LG is that it has very few competent employees mostly are not skilled and also there is no training and development concern for employees.
In addition, the one of LG’s opportunity is through the innovation of existing products can attract more customers, because it is behind the market leadership thus became a leader must make innovations to attract potential buyers and retain existing customers. LG home appliances to provide the next step in home innovation.Advanced technology solutions, such as a Sensor Dry system which automatically adjusts consumer dryer’s cycle to meet the unique conditions of each load, and Smart Cooling Plus technology which maintains customers refrigerator’s humidity and temperature levels, LG appliances allow customer home to work more efficiently so they can spend more time on the things that matter most. In addition to a full range of LG kitchen appliances, they also offer innovative vacuums, air conditioners and more – all designed to make life good.
The last one, the two of LG’s threats arehighly competitive industry dynamics and the economy around the world is not good. As the competitors of LG are more dominant in the market and continuously improving their products, so that they can take away the existing customers of LG, so it has to work very hard to retain and attract customers. The condition of economies all around
the world is not good and it is affecting the purchasing power and priorities of the customers. People are faced with difficulties in satisfying basic and needs so how they can spend on electronics which is considered as luxury items. This kind of situation will affect the company’s sales. The Target Market, Market Segmentation and Market Position of LG Company Target Market
Family home owners
LG Company provides home appliances and their target market will eventually be family home owners. Family home owners are chosen because they have children and families with children typically have a large number of electronic devices at their home where their family can enjoy and feel comfortable themselves in their own home.For family home owners to start a family, they must have at least one child and of course,a home to equipped themselves. A perfect and complete home must have fully equipped with home appliances. So, tthis is the reason that family home owners became one of the target market of LG company.Most of the families have two income and a median household income is about RM77,000 and most of them have a cable TV a broadband internet connection at their home.Generally,the family home owners have their meals outside not too often, almost 2.3 times a week and they prefer to stay at their house more. Eventually, this makes the comfort of their house became one of the most important thing for the family home owners where all the home appliances count.
Single home owners
Besides the family home owners that own a house, there are also single home owners who is a single person who own their own home.Most of them are generally professionals that age between 25-40. They have high income and they often use a lot of electronic technology and often adopt technology using lots of gadgets in their home.Their median household income is quite high about RM62,000 for a single person.Single home owners have their meals outside quite often which is 2.7 times a week which is more than the family home owners because they have no family members in their house to dine with and consider having meals outside is convenient enough where the dining place is nearer to their working site rather than to go back home to cook
their meals.Although they spend their time outside much, they also concern about the comfort of their own home. After the hustle and bustle life at their working place,home is a nice place to settle down and rest our mind.So, single home owners demand for fully equipped home appliances which they became one of the target market of LG company. Market Segmentation
Business divide their markets into a few sections with similar features, so that they can target different groups of consumers and produce merchandise or service for them.An obvious way of segmenting market is geography.LG Electronics sell its merchandisesread all over the world,especially well-known countries,for example,LG digital television in China. Yucheng Zheng,theCEO of LG Electronic (China) Co,Ltd, reported that LG launched a project to promote digital television in rural area in China.LG targets at the rural market and provides digital TVs and home applicants for rural customers. The emphasis of rural segment is “ price competitiveness”. LG is going to reduce the price of its products so that it can develop well.
LG Electronics Inc. Has became the world’s third-largest smartphone vender in the first quarter.LG showed signs of breaking away from its close competitors by snagging the No.3 spot for the first time. In the first quater, LG got a boost from its wide range of products. The South Korean Company’s Options line of smartphones covers a broad price range from premium to low-end segments. LG is looking to its mobile business for growth, and plans to take a more aggressive approach this year on marketing.
According to recent data, Korean manufacturer LG has overtaken Apple to become the second largest phone manufacturer in the Unitted States. Samsung and Apple have long been seen as the juggernauts of the mobile industry, and for good reason, as both companies remain dominant in the smartphone market,growing rapidly and taking marketshare away from rivals. However, the collective sales of LG’s smartphones and feature phonesproved to be enough to overtake Apple, though Samsung remains for ahead of both competition. TASK 3
THE LG (Life’s Good) LATEST PRODUCT –
LG 84LM9600—The World’s First 84 inch LG ULTRA HD TV
In the market of electrical company (home appliances), there have the LG Company. In the LG Company, they want to capture value to create profit and customer equity, so they must to know about and find out the need and want of their customer and produce it to provide it to their customer. Within the LG Company, they find out and know about what the customer need and want, so they produce and provide the latest product of LG (Life’s Good), and it is The World’s First 84 inch LG ULTRA HD TV and the code is LG 84LM9600. In the LG Company, after they find out the need and want of the customer and produce it and provide it to customer, they must integrate the strategy to make the product successful in Malaysia and at electrical company (home appliances) market by using the Marketing Mix. In the Marketing Mix, the have the 4ps and the 4ps are the strategy to make The World’s First 84 inch LG ULTRA HD TV (LG 84LM9600) successful in Malaysia and at electrical company market. The 4ps of the Marketing Mix is the: Product, Price, Place and Promotion. In the LG Company, the product will affect the successful of LG 84LM9600 in Malaysia. The product is the idea that consumer will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. In the electrical company of home appliances market, if a product is do not have good quality, performance, and features, so the product will do not successful in Malaysia. On the other hand, when a product has good quality, performance, and features, so the product will successful in Malaysia and can also build good and strong brand. The LG Company must produce the LG 84LM9600 with very good quality, performance, and features, because of the product must to be successful in Malaysia and also need to building strong brand in Malaysia. In Malaysia, if LG Company wants the product of LG 84LM9600 successful, the LG Company must produce a very good product with good service, good quality, strong performance and features such as: ULTRA HD TV 2160p
84” Gigantic Screen
2.2 Speakers System
IPS Advanced LCD Panel
Smart Share TM
Comfortable 3D Glasses
The next Marketing Mix is the price of the product and in the LG Company, the price of the LG 84LM9600 will also affect the LG 84LM9600 successful in Malaysia. The price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. The price also is the only element in the marketing mix that produces revenue; all other elements represent costs. In the LG Company, If they want the product of the LG 84LM9600 successful in Malaysia, so they must produce and provide the LG 84LM9600 in the minimum price. The LG Company must produce and provide the LG 84LM9600 in minimum price, it is because of if the price of LG 84LM9600 is very high, it will make customer do not want to purchase it and when customer do not to purchase the LG 84LM9600, it will make LG 84LM9600 do not successful in Malaysia. To successful the LG 84LM9600 in Malaysia, the divisional or product line managers of LG Company must produce the LG 84LM9600 and sets the price of LG 84LM9600 at the minimum point. In Malaysia, the LG 84LM9600 can successful it is because of the LG Company sets the price not too expansive and the LG 84LM9600 can affordable by their user and many people.
The next 4ps of Marketing Mix is the place and it may affect the product of LG 84LM9600 to be successful in Malaysia. The place also known as distribution channel and it is a set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user. In the LG company, the place of produce the LG 84LM9600, the place of keep the store of LG 84LM9600 and the place of provide the LG 84LM9600 to their customer must choose very careful, it is
because of the place will also affect the price of LG 84LM9600 and it will make the LG 84LM9600 will successful in Malaysia or not. In the first, the place of produce the LG 84LM9600 must choose careful, it is because of the rent of place, manufacturing, grading, assembling and packaging of the LG 84LM9600 and all the cost will include in the sell price. The second place is the store of LG 84LM9600, in the store place will include the rent, opportunity cost and the transportation cost, all the cost will also include in the selling price. The third place is the place that the LG Company provide the LG 84LM9600 and all the cost in the place to provide the LG 84LM9600 will also include in the selling price, in the place to provide the product will include the rent, electric, light, water and transportation cost. In the LG Company, all the activity and the cost will include into the selling price of the LG 84LM9600, because of the costs all include into the selling price will make the price of LG 84LM9600 become expansive and will decrease the number of the customer who want to purchase the LG 84LM9600. If the LG Company want the LG 84LM9600 successful in Malaysia, they must choose the place careful and minimum the activity costs.
The last Marketing Mix of 4ps is the promotion and the promotion is the specific blend of advertising, public relation, personal selling and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships. The LG Company must give the promotion to the customer who want or thinking to buy the LG 84LM9600, it is because of if the LG Company give promotion to the customer, the number of the customer will increase and the people who thinking want to buy the LG 84LM9600 will buy and purchase it. In Malaysia, the promotion of a product will make the product successful and the point of selling the product will also increase, it is because of the customer will like to purchase a product with some good return and service. After the 4ps of the Marketing Mix, the LG Company must build a good relationships with their customer and build strong brand in Malaysia so that make the LG 84LM9600 successful. In the LG Company, after they finish doing the strategy of 4ps and it is product, price, place and promotion in the Marketing Mix, they must build the strong and good relationship with customer to make sure the selling number of LG 84LM9600 and the future business. When the LG Company
builds the relationship with customer, they can make sure that the LG 84LM9600 will successful in Malaysia and keep the number of customer increase.
At the last, after the LG Company do all the things, they can start capture value to create profit and customer equity. In the LG Company, after they find out the need and want of customer, integrate the strategy using the Marketing Mix by using the 4ps and build the relationship with customer, they can start to do the business with their customer and get their return in form of profit and customer equity. In this process of the companies create value for customer and build strong customer relations in order to capture value from customer in return, the LG Company and their customer can get the “win-win” situation, it is because of the LG company give what the customer want to earn the profit in customer return and LG company get the profit and also the customer get what they need, it is LG 84LM9600.
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