distribution network of l.g

1. LG Electronics India Pvt. Ltd.
 A wholly owned subsidiary of LG Electronics, South Korea
 Established in January, 1997
 State-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998

2. LG Electronics India Ltd.
 Established In : Jan 1997
 Managing Director : Mr. Moon B. Shin
 Corporate Office : Plot no51, Udyog Vihar,
Surajpur Kasna
 Road, Greater Noida (UP)
 Corporate Website : http://www.lg.com
 Number of Employees: 3000+

3. Business Areas & Main Products
Home Entertainment
 Plasma Display Panels,
 LCD TVs, LED LCD TVs, Colours TVs,
 Audios, Home Theatre System, DVD
Recorder/Player, BluRay

4. Distribution network
 LG has adopted the regional distribution
model in India.
 All the distributors work directly with the
company.
 This has resulted in quicker rotation of stocks,
and better penetration into the B,C, and D
class markets.
 LG also follows the strategy of stock rotation,
rather than dumping stocks on channel
partners.

5.  LGhas over 46 branch offices and
another 110 area offices across the
country.
 LG had set a target of developing
2,000Dealers in 2004, in addition to the
existing 3,000 dealers all over India.

7. CFA’s
 The number of C/F agents as of 31st May,2004 is 28.
 They are spread across 20 states in India.
 The company dispatches the goods to C/F on consignment
basis.
 At the same time, these C/F agents all work on contract basis.
 They get paid as per the amount they stock.

8. DISTRIBUTORS
 The company appoints distributor for selective
cities where the markets are small but require more
focus and attention.
 The company sends goods to the distributor on
outright sale basis.
 The distributor is given a margin of max 17.5%
 The distributor has to maintain his own sales,
delivery and accounts people for smooth working of
his unit and is served by the nearest C/F for all his
requirements.

9. Delivery Schedule
 Takes 1 day for CFA’s to service reorder within their zone.
 Distributor too caters to the demand in his area within 48hours
from the time of receiving the order.
 No inventory management system in place with the
MBO’s(Multi brand outlet)
 LG Shoppe’ and franchisee showrooms do have a system in
place to consolidate their inventory and sales with the
company main office

10. Ordering
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