HISTORY

Established in 1947 ,LG was Korea's first chemical company and also the nation's first electronics company with is expansion into home appliances in 1958.

Founder and Chairman In-hwoi Koo, commonly known as Yonam, established the Lucky Chemical Industrial Co.(present LG Chemical) in 1947, marking the beginning of the LG history.

LG started its corporate activities with the production of "Lucky Cream," and gradually  advanced into the plastic industry for the first time in Korea in order to develop a cap of cosmetics which is not breakable.

It reflected Founder In-hwoi Koo's corporate spirit to manufacture products indispensable for the people's life. LG started producing plastic goods including combs, soap cases, toothbrushes and table wares. With the development of toothpaste for the first time in Korea with its own technology, LG dominated the domestic toothpaste market, defeating 'Colgate' toothpaste made in the US

In the meantime, LG established Goldstar Co.(present LG Electronics) in 1958 in the process of expanding its plastic industry. It stepped into the electronics industry by manufacturing a radio in 1959 for the first time in Korea. Through this, LG established the foundation for the two major axes of corporate activities-chemical and electronics industries-in the 1950s and furthermore led the development of Korean industry.

Today, LG is Korea's second largest business group, comprising 49 affiliates and over 300 subsidiaries and branch offices with 140,000 employees worldwide.

The wide array of activities that LG conducts are now distributed within four highly focused business sectors: Chemicals & Energy, Electronics & Telecommunications, Finance, and Services. According to LG, the focus, sharpened in the face of a new economic reality, reflects their determination not only to develop a management paradigm that will ensure profitable growth over the long term, but  also their determination to realize the vision of a "First Class LG", based on shareholder and, more broadly, stakeholder value.

LG Electronics India

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw a roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Eco-friendly units amongst all LG manufacturing plants in the world.

LG Electronics India Pvt. Ltd had the following financial performance in India :

Turnover for 1997 Rs. 125 Crores

Turnover for 1998 Rs. 485 Crores

Turnover for 1999 Rs. 1056 Crores

Turnover for 2000 Rs. 1903 Crores

Turnover for 2001 Rs. 2216 Crores

Turnover for 2002 Crossed Rs.3000 Crores

VISION

 

The vision of LG is , “Securing world class competitiveness in core businesses and keeping up with rapidly changing business environment”, LG also has set the management strategies for the 21st century as,” to aim at a leading company in the core business fields such as 'Information & Telecommunications', 'Bio-technology' and 'Internet' and to create a new century's organizational culture that cultivates human resources equipped with creativity and challenging spirit”.

LG believes that the world is rapidly shifting into the information society, thus the development of information technology represented by Internet has enabled people to jump over the limit of time and space. Therefore LG announced new management strategies in the beginning of the new millennium with the realization that a company which fails to adjust its own business model to such a rapidly changing environment innovatively lags behind in the race and does not survive.

THE COMPANY TODAY

LG has been able position itself as a premium brand in the Indian market and is today the most preferred brand in the segment

Various studies have shown that the consumer is well informed on the health awareness front. LG was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. Its vision was to become a 'Health Partner' for its consumers worldwide and therefore formulated its corporate philosophy to make peoples' lives better, convenient and healthier. The CTV range offered by LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts the picture to make it more comfortable for the eyes. The entire range of LG air-conditioners have 'Health Air System', which not just cools, but keeps pollution out. Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN System', which preserve the nutrition in food and washing machines have 'Fabricare System', which takes the health factor down to ones clothes. All the products offered by the company have unique technologies, developed by its R&D departments that give customers a healthier environment to live-in.

In the year 2001 LG became the fastest growing company in the consumer electronics, home appliances and computer peripherals industry. The company till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and home appliances industry. Having achieved this milestone, LG achieved another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. In 2002, LG emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens.

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 over 50 lakh households in India.

 

THE FOUR

Ps

OF

LG

PRICE

One of the P’s is the Price .This feature makes many multinationals face several problems as they have to deal not only with other similar companies but also with the indigenous producers. In  Air conditioners market the foreign players have to not only deal with Indian producers but also with the assemblers of AC’s which compete solely on the basis of price. LG is also one of the companies which has to keep its prices low in order to be competitive in the market . Also they have to give discounts and other gifts in order to stay ahead of the competitors who quickly follow them in promotional schemes.

The range offered by LG is divided into following major categories:

  1. Window Air Conditioners.

1 Ton without remote                          Rs. 14800

1 Ton with remote                        Rs. 15500

1.5 Ton without remote                      Rs. 16500

1.5 Ton with remote                             Rs. 17500

1.5 Ton with remote (PLASMA)           Rs. 17500

1.5 Ton (HOT&COOL)                      Rs. 17500

2 Ton without remote                             Rs. 20500

2 Ton with remote                             Rs. 21500

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  1. Multi Split Air Conditioners.

1 Ton with remote                        Rs. 25500

1.5 Ton with remote                           Rs. 27500

1.5 Ton with remote (PLASMA)          Rs. 29500

2 Ton with remote                        Rs. 32000

2 Ton with remote  (PLASMA)        Rs. 35000

  1. ArtCool Air Conditioners.

Metal                                        Rs. 59900        

Wood                                        Rs. 59900

Blue                                        Rs. 59900

On the pricing front the prices are a little higher as compared to the competitors but the better quality and higher technology offered we can say the prices are competitive. The prices are also higher because ...

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