TEERTHANKAR MAHAVEER INSTITUTE OF
MANAGEMENT AND TECHNOLOGY,
MORADABAD
TEERTHANKAR MAHAVEER UNIVERSITY
MORADABAD
CT-2 ASSIGNMENT FILE
OF
BRAND MANAGEMENT
MBM - 402
SUBMITTED TO
DEPARTMENT OF MANAGEMENT STUDIES
In Partial Fulfilment of the Requirement of the Degree of
Masters of Business Administration (MBA)
Session: 2019-2020
SUBMITTED TO: SUBMITTED BY:
Mr. Vivek Devrat Ria Agarwal (TMG1802020)
(Assistant Professor) MBA General
LG India: Taking example of above company, identify its 2 Brands and explain application
of Brand Awareness, Brand Image, Brand Personality & Brand Equity with respect to
them.
LG Electronics India LTD : It is a South Korean multinational electronics company
headquartered in Yeouido-dong, Seoul, South Korea.
LG Electronics is part of the fourth-largest chaebol in South Korea (LG Corporation) and in
2014 global sales reached $55.91 billion (59.04 trillion), LG comprises four business units:
1. Home Entertainment
Mobile Communications
Home Appliances & Air Solutions
Vehicle Component
These are made with Starion India as its main production vendor for refrigeration and washing
machines in the Indian sub-continent. LG Electronics owns Zenith and controls 37.9 percent of
LG Display and since 2008, LG Electronics remains the world's second-largest LCD television
manufacturer. The company has 128 operations worldwide, employing 83,000 people.
Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG
Electronics, South Korea. It is one of the leading companies in consumer electronics, home
appliances and computer peripherals in India. It has a turnover of almost US$ 1000 million in
India. LGEI’s sales are increasing with a CAGR of 40 per cent over the past five years. LG is the
market leader in various segments like colour TVs, microwave ovens, frost-free refrigerators,
washing machines and air-conditioners, with market shares of 26.2 per cent, 41.2 per cent, 37.9
per cent, 34.1 per cent and 34 per cent respectively. LG Electronics India received the
Occupational Health & Safety Management System OHSAS 18001:1999 certification from the
British Standards Institution (BSI), India, for a systematic approach towards Occupational Health
and Safety Management System. LGEI exported goods and services worth US$ 40 million in
2003. The major export markets for LGEI are the Middle East, West Africa and Central Asia.
History of LG Electronics India Ltd: LG in their initial years, the transformation from ultra-
cheap Lucky Goldstar to upscale LG Electronics has been nothing short of remarkable. Credit
goes to Michael Ahn, who guided the branding effort for LG Electronics North America before
stepping down as the Group’s president and CEO in 2010. The Goldstar brand dates back to
1958 and the LG initial stems from a merger of two long-time Korean brands, Lucky and
Goldstar in 1990. In 1995, Lucky Goldstar purchased the last remaining American-based TV
manufacturer, Zenith Electronics. That acquisition provided the impetus for the plan to upgrade
the brand, but it would take a number of years to accomplish this.
LG’s initial step was to try to get distribution in higher-end retailers but this effort was stymied
by the low-quality “couldn’t be trusted” perception of the product line. A critical decision in the
early 2000s was to avoid the path of least resistance and seek distribution in stores like K-Mart,
Wal-Mart and Sam’s Club. While such distribution would have made the Korean factories hum
with activity it was off strategy for Ahn who sought to make LG an upscale brand.
Operations of LG Electronics LTD: LG Electronics has five business units:
Home Entertainment
Mobile Communications
Home Appliances & Air Solutions
Vehicle Solutions
Business Solutions.
Products of LG Electronics LTD: It consists of the following Products:
1. Televisions
Home theater systems
Refrigerators
Washing machines
Computer monitors
Wearable devices
Solar modules
Smart appliances
Smartphones.
Slogans of LG Electronics India LTD: Following are the Slogans:
"We put people first" (1997–1999)
"Digitally Yours" (1999–2004)
"Life's Good" (1999–present in Australia and 2004–present in the rest of the world)
Current Scenario: The electronics market is one of the largest in the world and is anticipated to
reach US$ 400 billion in 2022 from US$ 69.6 billion in 2012. The market is projected to grow at
a compound annual growth rate (CAGR) of 24.4 per cent during 2012-2020.
Company Profile: LG Electronics India Ltd (LGEIL), Consumer durables leader with 27%
market share, is planning a brand-new image. To attract inspirational and young Consumers
across India, company will roll out a new marketing strategy. The exercise will cost the company
Rs 360 crores. LG Electronics India is the fastest growing company in the Consumer electronics,
home appliances, and computer peripherals industry today. LG Electronics is continually
providing, superior technology products & value for money to more than 50 lakh households in
India. LG EIL is celebrating the 11th anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest
R&D center outside Korea. We at LGSI focus on niche technology areas such as mobile
application development, digital video broadcast and biometrics software and support LG
Electronics with our expertise. Motivated by a passion for technology, a strong work culture and
loyalty to the organization, we are determined to see LG become one of the top three brands
globally.
Prominent Consumer electronic company, LG Electronics Inc. has said that it expects the sale of
its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of LG
Electronics India has said that the company has earmarked 4.8 billion rupees for investment
purpose in India this year. The said money will be used to market as well as manufacture new
products.
Brand Awareness of LG Electronics India Ltd: Brand awareness is the level of consumer
consciousness of a company. It measures a potential customer’s ability to not only recognize a
brand image, but to also associate it with a certain company’s product or service.
Brand awareness is best spread through both inbound and outbound marketing efforts. When
competition in an industry is high, brand awareness can be one of a business’s greatest assets.
How to Establish Brand Awareness: Brand awareness among your audience and the general
public doesn’t happen overnight. It also doesn’t happen from a simple advertisement or
marketing campaign. Strong brand awareness is a result of multiple simultaneous efforts that
extend beyond trying to get paying customers.
If you expect to raise awareness of your brand by running a few product advertisements on
Facebook, you won’t get very far. Not only will the consumer be focused on the product (not the
brand), but the ad will also lack impact beyond a simple sale. Here are some ways to establish a
solid brand awareness foundation and make a lasting impact with your audience:
1. Be a Person, Not a Company
Socialize
Tell a Narrative
Make Sharing Easy
Brand awareness is about impact.
With respect to LG Electronics India Ltd, a sort of survey has been done and following
findings has been outsourced, which are as follows:
1. The customer awareness level towards Brand Awareness of LG Electronics is
excellent because nearly 87% of the respondents were aware of this program.
From the aware respondents 91% of respondents had taken the membership under this program.
This shows program is effectively reaching the customers.
The customer awareness level about the advantages of the program is good, but there is still
scope for improvement.
Major of the respondent have registered under Rs.1000 plan that is 78% of respondent have
registered under 5000 plane. This shows that company will be contact with 78% customers for 3
years. This will help in building good relation with the customers.
Figure: Percentage of the brand awareness level of LG Electronics with respect to other
various brands
Figure: Brand Awareness percentage of LG Electronics India Ltd among people
Brand Image of LG Electronics India LTD: Brand Image is how customers think of a brand. It
can be defined as the perception of the brand in the minds of the customers.
This image develops over time. Customers form an image based on their interactions and
experience with the brand. These interactions take place in many forms and not necessarily
involve the purchase or use of products and services.
Brand image is the perception of the brand in the mind of the customer. It is an aggregate of
beliefs, ideas, and impressions that a customer holds regarding the brand.
A brand can be perceived differently by different customers. Hence, the formation of a consistent
brand image is a huge task for any business.
Brand Image can be contributed by the following factors:
1. Quality of the product/ service.
Usability of the product/ service.
Perceived value.
Some association like a celebrity with positive impact.
Durability.
Example: Taking an example of LG Electronics India brand “LG OLED Television” and
describing its main features to showcase its brand Image:
