6. Vision of LG
To deliver innovative digital
products and services that
make our customers’ lives
better, easier and happier
through increased functionality
and fun
7. Mission of LG
•To create value for customers
•To respect human dignity
•To become the best in its class by
winning customers‘ as a true leader
in the global market .
.
16. Product
TELEVISION
. LCD TV
. Plasma TV
. Ultra Slim TV
. Flat TV
. LCD /LED 3D TV
DIGITAL AUDIO
VIDEO
. Home Theatre
System
. Music System
. DVD Player
BLUE RAY Player
COMPUTER
PRODUCTS
. Notebook PC
. Desktop PC
. Monitor
.Optical Storage Devices
. Projector
VACUUM CLEANER
. Vacuum Cleaner
17. Product
MOBILE PHONE
. Smart Phones
Touch Phones
.Multimedia Phones
Dual Sim Phones
Basic Phones
Home appliance
Side by Side Refrigerator
Double Door Refrigerator
Single Door Refrigerator
Washer Dryer Combos
Front Load Washing
Machine
Top Load Washing Machine
Semi Automatic Washing
Machine
Dish Washer
Microwave Oven
Vacuum Cleaner
Air Purifier
Water Purifier
21. Price
•BASIC PRICING STRATEGIES- PRICED LOW.
•PRICES ARE SET BY COMPANY THEMSELVES
AND DEALER HAVE NO SAY IN THESE
MATTERS.
• LG COMPANY GIVES COMMISSION TO AGENT
FOR TRADE PROMOTION ACTIVITIES.
22. Conti…
LG Company mostly adopts the four level channels,
sometimes it also adopts three level channels also.
Four level channel:
(Producer, Agent, Retailer, Consumer).
Three level channel : (Producer, Retailer, Consumer).
29. Targeting
•LG has targeted its market on the basis of the product
that they are offering to the consumer.
•They are targeting:
•Upper Class Segment
•Upper Middle Class.
•They are targeting to those consumer who are more
concern of life style product.
30. Targeting
•Their product is more of Upper mid class and premium
segment, so their target audience are those consumers, who want
quality product as the best
•They are also targeting those consumer, who are more concern
of safety And health issues.
31. Positioning
•With the tagline Life’s Good, LG positioning is to
differentiate their products on the basis of technology
which appealed to the consumer on the basis of health
benefits
•With the tagline ‘Life’s Good’ its corporate philosophy
to make peoples’ lives better, convenient and healthier
32. Positioning
•Their positioning strategy are technologically intelligent
and futuristic
•As they are in upper and premium segment, so they are
featuring that their brand is young, vibrant and
premium.
•LG has different its product using technology and health
benefits.
37. (in millions of Rupees)
2010
2009
Net Sales 24,81,044 24,69,356
Cost of sales (19,45,714) (18,39,657)
Gross profit 5,35,330 6,29,699
Selling & marketing expenses (3,23,538) (2,99,942)
Administrative expenses (62,399) (57,728)
Research & development expenses (66,784) (56,507)
Service cost (78,688) (83,794)
Other operating incomes 89,445 1,07,571
Other operating expenses (85,513) (1,20,008)
Operating income 7,853 1,19,291
Financial income 36,479 57,451
38. Financial expenses (46,236) (63,638)
Income from jointly controlled entities &
associates 21,241 19,374
Profit before income tax 19,337 1,27,478
Income tax expense (6) (26,196)
Profit from continuing operation 19,331 1,01,282
Discontinued operations
Profit from discontinued operations 37,724 3,298
Profit for the year 57,055 1,04,580
Earning Per Share 338 632
Cont……
40. Liabilities 2010 2009
Current liabilities:
Bills payables 2,59,185 2,36,555
Borrowings 1,78,412 1,91,662
Other payables 1,65,998 1,89,992
Other financial liabilities 236 2,766
Current income tax liabilities 4,390 6,418
Provisions 36,702 36,261
Other current liabilities 40,103 55,851
Non-current liabilities
Borrowings 1,41,675 1,15,770
Other payables 516 623
Other financial liabilities 1,668 3,570
Provisions 22,754 23,214
Other non-current liabilities 14279 13489
Total liabilities 8,65,918 8,76,171
41. Shareholders Fund 2010 2009
Paid up capital
Capital stock 36,008 36,008
Share premium 98,252 98,252
Retained earnings 4,49,814 4,10,037
Accumulated other comprehensive
income(expense) (9,338) (6981)
Other components of equity (12,072) (12030)
562664 525286
Non-controlling interest 9590 27,637
Total equity 5,72,254 5,52,923
Total liabilities & Equities 14,38,172 14,29,094
Cont……
42. Assets
Current Assets:
Cash & cash equivalents 86,515 1,07,858
Financial deposits 3,783 9,923
Bills receivables 3,11,587 3,39,852
Loans & other receivables 23,365 31,802
Other financial assets 80 40
Inventories 2,61,323 2,18,020
Other current assets 48,020 45,003
Asset classified as held for sale 223
Total Current Assets 7,34,896 7,52,498
52. Year 2007 2008 2009 2010
Debt -to-
Equity
Ratio
0.43:1 0.37:1 0.21:1 0.25:1
Debt -to-
Equity Ratio
53. Year 2007 2008 2009 2010
Total Assets 1539007 1885567 1429096 1438173
COGS 1840149 2170672 1839657 1945714
Total Assets
Turnover
Ratio
1.19:1 1.15:1 1.29:1 1.35:1
Total Assets
Turnover
54. Year 2007 2008 2009 2010
NWC 1,00,042 83,377 32,992 49,871
Net Working Capital
55. (in millions of Korean
Won)
2010 2009
Cash flows from operating activities
Cash generated from
operations
21,810 3,03,926
Interest received 3,025 3,741
Interest paid (10,335) (18,377)
Dividends received 3,395 6,726
Income tax paid (17,516) (22,361)
Net cash generated
from operating activities
379 2,73,655
56.
57.
58. HR Policy
Creativity & Autonomy .
Rewards based on performance .
Equal opportunities .
Focusing more on individual improvement.
Training.
Reward.
59. Working Environment
The Company is creating an Organizational
Culture where smooth communication is realized
to make the working environment more easy
and flexible.
60. Working Environment
The best step taken by
the company to
provide best working
environment is “ the
respect for creativity
and autonomy” .
61. Human Resources recruitment & Development
The candidate who suits to the company are :
Those who are changing themselves
according to the environment .
Those who don’t fear of taking the risk .
Those who conduct business with honesty
,fairness & sincerity.
63. Achievements
Award Name Awarded By
Most Admired Company in India A&M
Magazine
1998
Most Admired MNC A&M Magazine 1999
No.1 Consumer
Durable Company
A&M Magazine 1999
Best Marketing Company A&M Magazine 1999
Best Employer Business Today/ Hewitt Assts 2001
Best Employer Business Today/ Hewitt Assts 2002
Enterpreneur of the year Ernst & Young 2002
Gold Rating for
Environmental Performance
CII 2003
No. 1Awareness Award. Business Today 2003
64. Achievements
Award Name Awarded By
Best Designer Award –Art
Cool Air Conditioner
A&M
Magazine
2003
Award for IT Innovation Business Today 2004
Most Trusted
Brand -CD Writers
DIGIT/Jasubhai Digital Media 2004
Consumer Durable
Retailer of the Year
ICICI Bank 2005
Excellence in Corporate
Leadership & Entreprerenural
Spirit
CNBC TV 18 2005
Outstanding Contribution
in the field of HR
MID DAY 2005
India's Most Trusted
Brands 2007
Brand Equity 2007
Business Leadership Award
in Consumer Durable Sector
NDTV 2007
65. Achievements
Award Name Awarded By
EFY Reader's Choice Awards
2008 -Microwaves
EFY 2008
Smart Living Awards -TV, AC,
Microwave & Washing
Machine 360 degrees
A&M Magazine 2008
Reader's Digest Trusted Brand :
Platinum Awards -AC.
Gold Awards –
LCD TV /Plasma TV,Ref, PC
Reader's Digest 2008
Electronics and Home
Appliances
CNBC Awaaz
Consumer Awards
2008
Most Admired MNC in India 4P’s Award 2008
