LG Electronics - Overcoming Initial Setbacks in India*



Mini Case Code : CLIM017
Publication date : 2005
Subject : International Marketing
Industry : Consumer Electronics
Length : 03 Pages
Price : Rs. 100

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Key words:

LG Electronic Inc. (LG Electronics), LG group, consumer electronics industry, promotion strategy, customized products, needs and preferences, Indian consumers, in-house marketing research, price sensitive, competitive prices, promotional campaigns, promotional activities, brand recall, distribution and sales strategy, rural markets


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The caselet turns the spotlight on the marketing strategies that LG Electronics' (LG) adopted in India. It traces the path that LG took to achieve success after meeting with failure in its initial venture into the India market. It also describes how LG understood the Indian consumers and accordingly offered products and framed strategies that supplemented its offerings.


Why LG failed to attract the Indian market initially
How market research helped LG in offering customized goods
Role of promotional campaigns in LG's success in India
Potential of rural market in India


LG Electronic Inc. (LG Electronics), one of the largest electronics goods companies in the world, was established in 1958. It was an offshoot of LG group, a Korean chaebol (family run industrial groups)...

Questions for Discussion:

1. Comment on the strategy of LG Electronics India Ltd. (LGEIL) of banking heavily on promotional campaigns to increase sales of its products.

2. Comment on LG Electronics India Ltd (LGEIL'S) decision to foray into the rural market in India.

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