Report on Principles of Marketing and Marketing Strategy of LG


1. Introduction 2
2. Industry Analysis 2
2.1. TV industry introduction: 2
2.2. Key competitors in the market: 3
2.3. Marketing strategies of the competitors: 4
3. Company background 5
3.1. SWOT analysis of the strategy: 6
4.1. Marketing strategy overview 7
4.1.1. Marketing strategy Statement 7
4.1.2. Objectives 7
4.2. Strategic marketing components 8
4.2.1. Market branding: 8
4.2.2. Image & Positioning 9
4.2.3. Sustainable Competitive Advantage (SCA) 10
4.3. Marketing tactics 10
4.3.1. Product Issues 10
4.3.2. Placement / Distribution 11
4.3.3. Pricing 12
4.3.4. Advertising & Promotions 12
4.3.5. Service Elements 13
4.4. Implementation 13
4.4.1. Resources Required 13
4.4.2. Time Line 14
4.5. Contingency Plan & Evaluation 15
5. Executive summary 16
6. Appendix 18
6.1. Worldwide differentiation of the TV market 18
6.2. Market share of the TV industry 19
6.3. Distribution of the sales and the share of various products in LG’s share 19
6.4. Swot analysis for LG Company 20
6.5. Contribution of the smart TVs and the plasma TVs in the last two quarters 20
6.6. Distributors of plasma or flat TVs in the global market 21
6.7. The share of LG in LED and LCD market across the globe 22
6.8. “Porter’s five forces model”. 22
7. References 23


In the 21st century, there has been a tremendous increase in the competition among the television industry. With the entry of several potential competitors, the old companies who were enjoying huge market share are bound to suffer. They have to continuously upgrade their technology and keep on adding new features so as to survive amongst the competitors and maintain their market share in the industry. The television industry has seen a wide range of discoveries and inventions that have revolutionized the complete industry. The utilization of television has increased on a large scale ranging from using them for entertainment purpose to playing games, interactive learning for kids to watching videos over the internet through it.
The development of LG in the entertainment industry is an area of research that can be understood through the strategies used by them. The report tries to establish the relationship between the marketing strategies that have been developed by LG and compares it with its competitors. These marketing strategies have helped LG to develop a niche for itself in the TV industry and also provided them with a respective market share across the globe.

Industry Analysis
TV industry introduction:
The television industry has seen a tremendous amount of change and modifications in its concept since the time it was developed. These modifications have completely changed the overall experience of watching a television.
Though the concept of television was introduced in 1884 by Paul Gottlieb Nipkow, television industry came into existence in the beginning of the 19th century. However, first kind of television that displayed images was developed by John Logie Baird in 1925. He had also developed one of the world’s first video recording system. It was after this that the mechanism of continuously displaying images in the form of videos came into existence. Until then, there was only displaying of images on the screen which did not have continuity in the form of a video.
There were black and white TVs until 1953, when there was first broadcast of coloured TV sets on 1st January of 1954 which displayed the “Tournament of Roses Parade”. However, the sales of the coloured TV sets was very low and due to this most of the TV shows were broadcasted in black and white display. Between 1960 -1970, the sales of the coloured sets of TV increased tremendously and this prompted all the channels and TV shows to be broadcasted in coloured format. Along with this evolution from the black and white TV to the coloured TV sets, there were many companies which entered the market of the television industry, who were earlier involved in the production of other electronics.
The TV industry has evolved largely ranging from the coloured sets to the cathode ray tube sets. Recently, in a span of 10 years it has been completely revolutionized. There was introduction of new features in the display technology that revolutionized the complete experience of watching TV. It involves development of the LCDs which is “Liquid crystal Displays” and “Light emitting diodes that are the LEDs.” The entry of High Definition TVs in the market provided the customers with complete experience.
The trend in the modification and up gradation of the technology since the last 10 years plays an important role in establishing awareness among the people regarding the various means of comfort that they can enjoy in the ultimate experience of watching TV. There are large number of channels showing programs that are telecasted all around the world which involves display of different cultures in it.
Key competitors in the market:
There were many competitors that entered the TV market during the time when there was evolution in the industry. The majority of the market share was divided among Samsung, LG, Sony, Panasonic and the remaining part was distributed among the Sansui, Toshiba, Sharp and other such companies. The strategies that were developed by them involved giving a personal and customized touch of the features that the company has introduced to overcome the key competitors in the TV industry.

The competitors have been striving hard in the last few years to develop the strategies that would provide them with the niche in the TV industry. The competitors have observed the potential that the TV industry has got in terms of revenue and profitability. The competition has boosted since the demands of the people from the industry has increased and the level of comfort and luxury that the people need has also increased.
Marketing strategies of the competitors:
There were different strategies which were developed and implemented by these companies where the major focus was to increase the sales as well as the market share in the TV industry.
The marketing strategies that were developed by the companies like Samsung is very much customized where it provides variety of features along with the products that involved making the life style simpler. Marketing strategies of the company focuses on the technology which involves using voice modulated remote technology and view the desired files by connecting any other external device to the TV. Samsung have developed this tagline for marketing its new smart TVs which states that “Look, Don’t touch.” This informs the customers about the technology that it has developed in simple terms through the tagline. They have promoted a smart TV with touch screen feature in the recent marketing strategy. They have always been the leaders in inculcating changes in the TV industry, with its large variety of products which are specially carved for the people’s comfort and excellent experience. The strategies considered the concept of having a monopoly in the TV industry over other companies. This provided them with the flexibility to develop customized strategies as any such kind of product was not launched in the market earlier.
Sony, on the other hand has always promoted its quality as the marketing strategy to achieve the desired sales. They have recently developed a tagline that states “looks better on a BRAVIA”. This directly informs the people that the picture quality that would be obtained on the screens of Sony would be very different and of high quality as compared to any other screen provided by other companies.

Panasonic which also has a huge portion of the market share in the TV industry has developed the slogan which states that “A Better Life, A Better World”. This has helped the company to make the people think about the simplicity that it offers in its products especially in TV that would help people to live a simpler and better life.
The marketing strategies would be a great failure if the product does not provide the features that were proposed in its marketing. The experience that a customer gets is considered to be of prime importance in developing the strategies for the marketing of the product. It is also observed that few viewers were very loyal to a particular TV brand and would never try or experiment with any other TV brand even if they provided superior quality and features to the customers.
Company background
LG is a company that is a merger of two companies which are Lucky and Goldstar respectively. This gives the abbreviation of LG to the company and since 1995 it is been known with this name. It is a company which is located in the South of Korea where its headquarters is situated at Seoul. It has approximately 82,000 employees working in it for a network that is spread across 100 countries. It had an overall sale of USD 53.10 billion in the year of 2013. All this figures have been achieved due to the sincerity and dedication of the LG’s staff. It has helped the company to be the second largest firm in terms of the sales of TV sets across the globe.
LG has been a great contributor in the electronics industry and at the same time has ensured in providing a quality service to the customers. It has developed the slogan which states that “Life’s Good”. It has been constantly working in providing the customers with a wide range of products that would help the people in creating a happy and better life. This would be obtained through the ultimate experience that people would get by using LG’s products. It has always focussed on developing strategies that makes sure that the customers are satisfied with the quality and service of the products.

LG has made it a point that they get the feedback of the customer regarding the improvements in the product and using this feedback they ensure that excellence is achieved in terms of satisfaction that it could provide to the customers. The satisfied customers would be the biggest branding assets of the company and they would result in recommending the product to their closed ones and in their networks. Owing to this strategy of innovation, LG has introduced “OLED’s (organic light-emitting diode)” and Ultra HD TVs in the market during the year of 2013. It introduced a 55 inch as well as 65 inch screens to view this two technologies that provided high quality of display.
LG Company has been continuously developing and emerging with new innovations to satisfy the customers and increase its sale in the global market.
SWOT analysis of the strategy:
LG focusses on the needs of the customers and their strategies involves providing a complete solution to the customers in terms of ultimate experience obtained by the various range of TVs. There are various strengths of the marketing strategy that LG has adopted. This involves providing Return on Investment Capital to the customers. It makes a sincere effort to introduce innovation in the product and its design that would provide an increased level of comfort to the customers. It ensures that it has a very excellent quality of HR that will help them to develop strategies that would help them sustain in the industry with potential competitors.
There are few weaknesses that needs to be worked upon which involves less focus on the branding and promotion of products as compared to the other competitors. It focusses on the export more than the sales within. It also has to make sure that the prices it offers to the customers are competitive enough to overcome the sales and market share of its competitors.
The strengths and weaknesses are developed due to the internal reasons whereas the opportunities and threats are provided due to the external reasons. This reasons are classified as internal and external on the basis of the sources involved in them.

There are various strategies which are analysed to develop a marketing plan for the industry while launching its new series of TV models that are specially designed for the comfort of senior citizens. These strategies are discussed along with the marketing mix that LG could adopt to ensure that there is achievement of the position that they aspire to reach in the TV market.
Marketing strategy overview
Marketing strategy Statement
The technology that LG is going to introduce has to be highlighted in promoting the product. In this case, the innovation is in the form of new range of smart TVs that are going to be introduced in the market. The model that has been launched by LG contains special features which focuses on the section for the society that are senior in age.
When LG has to develop its international business, it involves understanding that people across the globe have different needs and requirements. International marketing also involves understanding of people’s needs, lifestyle, standard of living and then developing a customized solution incorporating all the above factors. International Marketing involves introducing the product of the new smart TV design in a foreign market either with a standard marketing strategy or with a customized adaptable strategy depending upon the nature of the market and the organizational strategies of the business firm. (Cateora, et al., 2007). It also has to ensure that this strategy which is developed for launching the new range of TVs provides them with the desired penetration in the TV industry where they can have their estimated market share.

The main objective of the LG Company is to bring innovation in the TV industry by developing a smart TV that would be dedicated to providing comfort to the senior citizens of the society. This objectives can be achieved by developing the strategies accordingly. Strategies can be developed for the target customers, which are the senior citizens that involves providing various safety and comfort features. This has to be branded well by using the emotional concept of promotion.

The theme of marketing has to be on the basis of the feelings and emotions that are pertaining to the targeted section of the society which is the senior citizens. Developing strategies which involves considering the senior citizens as the target market has been introduced for the first time ever in the TV industry.

Strategic marketing components
It refers to the various marketing components like branding, positioning, obtaining the target markets and developing strategies to inculcate all the components to achieve a successful market share.

Market branding:
Market Branding of a product relates to the image and the value of a product in the eyes of the consumers. It has to be uniform for all the foreign countries pertaining to the wide spread digital awareness across the globe. (Douglas, 2001) Brand performance, brand value and orientation of the brand play an important role in the planning for the success of international business marketing plan for the launching of the new range of smart TVs by LG. (Wong & Merrilees, 2007)
LG has always focused on innovation and customer’s satisfaction as its priority in branding of the products. LG has developed a private kind of branding strategy in the market unlike its competitors like Videocon who have adopted multi brand strategy of branding. In this kind of branding, LG develops customized features and carries its marketing under the label of LG Company only without involving multiple brands and multiple products at the same time.
Market branding has gained importance in the last 3 decades owing to the growth in television industry and entry of potential competitors in the market. The increase in the available media for promotion of these companies has also contributed to its widespread sales across the globe (Whitelock & Fernando, 2007).

Image & Positioning
The product that LG is going to launch recently is first of its kind in the TV market. So, there has to be hype and market attention that it has to get from the people. The market of the TV that LG is going to launch is already achieved through the promotion of the product in a much customized manner by making it specific for the particular section of the society, that are, the senior citizens.
Positioning of the product involves a complete study of the four P’s of marketing which are Product, price, place and promotion that would provide them with the required position in the global TV market. These four P’s involve developing a marketing mix that would provide them with the required position in the market.
The company has to focus on the first P which stands for the product. This refers to the uniqueness in terms of product design and features that the new TV that is to be launched has over its competitors. The design of these TVs has helped the company to focus on a particular section of the society for whom the product is dedicated to.
The second P that is important is the price that it has to offer to the customers to make the product stand apart from its competitors in the global market.
The third most important element is the promotion of the TV that is going to be launched in the market. It has to be ensured that the promotion is made effective enough so as to consider its target customers and provide them about a clear understanding of the theme of the product. This product has been launched in a large number of countries and its target customers are limited to the section of senior citizens in the society. If the desired output in terms of sales and satisfaction of the customers is received, then LG can revise its strategy and redesign the product to make it acceptable among a wider range of target customers. The promotion and advertising that the company carries needs to consider the earlier sales that it had in the earlier designs of the company’s product which is different models of TVs in this case.

Sustainable Competitive Advantage (SCA)
The strategies that we are going to adopt while launching the product has a great influence on the sales and success of the product. There has never been a TV which had it target customers as the senior citizens of the society. This would provide LG with an extra point over the innovation of the promotional term from the design and dedicated use point of view. LG has gained the support of the people and emerged with third highest number of users of plasma or flat TVs in the global market. These numbers indicate that there has been huge improvement in the sales of the company with respect to the Plasma type of TVs. This has greatly influenced the trust of the customers in a positive way and developed loyalty for the company.
Marketing tactics
The strategies and marketing plans that are developed while introducing the product in the market are of prime importance. It considers various static as well as dynamic features of the market that tend to affect the sales and revenue of the product in the TV industry. The strategies that are adopted need to consider various elements before they are being adopted and used for the launching of a specific product in the global market. The tactics that are used by the company needs to analyse and evaluate certain factors which are very important from the product’s development and promotion point of view in the market. It requires an in depth analysis and understanding of the marketing concept while developing strategies that would provide the customers with the required quality and service in terms of the product. Its design is to be understood from the requirements point of view and has to be developed accordingly considering them.
Product Issues
The product that has been developed by LG which is dedicated to the senior citizens of the society has provided the company with a niche in the market for it. However, the only issue that it faces is the limited set of target customers and their availability in the target market that it has featured during the development of the product’s design. It will also be affected by the least desire in the target customers to purchase this product that they like as they are senior citizens of the society. This strata of the society is hard to influence due to their experience and stubbornness that has developed in them owing to their age. This has to be altered by inculcating an emotional connect and developing sentiments and emotions in the promotion of this TV.

However, as LG has been the challenger in innovation to the core competent company of Samsung and not the follower, they have emerged with a very creative concept in launching this range of TVs in the market. The strategy that is going to be developed by LG has to be so strong that it motivates and pushes the target customers to demand for the product. These set of customers will be easy to satisfy as they would not be having a variety of requirements in terms of demands and other elements and this would help LG to manage and fulfil their requirements more easily.

Placement / Distribution

The selection of the distribution channel also plays a significant role in the success of the product in the TV industry. It can adopt a creative strategy of promoting the TVs in maximum number of countries across the globe to enjoy the benefits of international business. International Business has gained popularity and significance in the last decade owing to the modernization adopted in the production, advancement of technology, easy and quick mode of advertisement, reduced barriers from the government and liberalized laws for international transactions and outsourcing of business by different companies. These kind of international business strategy will help the company to establish its hold in the entire TV market that is available across the globe. This would ensure that the product’s information is reaching to the maximum number of people possible.
The strategy developed by LG is also affected by the sales that it had generated in the TV industry by its last products. This involves the highest number of users for the LED and LCD based shipments in the global market. It also ensured that LG has achieved a huge share in terms of market share in the last products that were introduced by it in the market. This will help LG to have the support of the masses and the large number of sales also display that there will be a huge amount of trust on the products that are going to be developed by the company in the coming time. There has been a significant share of LG in the LED and LCD TV market across the globe.

LG believes in involving small number of intermediaries between the company and the customers. This will help in reduction of a considerable amount of cost that the customers otherwise had to pay due to the profits of the various channels that was added in between them and the company. The distribution is carried out with very few, but genuine and large company dealers. This would make the service and customer care facilities much easier and flexible as there would be no chain of people in between the process that would have consumed a large amount of time.


The pricing of the product refers to providing an estimation of the product cost to the customers during the launch of the product. The style of pricing that is adopted provides the customers with the estimation of the product’s quality and performance. The price has to be estimated after calculating the actual production cost of the product involving labour, electricity and machine cost, cost of promotion and advertisement, profit margins and the savings cost. The pricing of the TV accurately defines the impact that it is going to have on the people belonging to different class of the society. The impact has to be somewhat neutralized so as to develop results that would be even for all the classes of the society. This has also been evolved from the fact that the target customers of the product, that are, the senior citizens are very much affected by the cost and they try to prefer those products that would be very economic.

Advertising & Promotions

Another significant concept refers to advertising the product in the global market. Advertisement of a product is important for any company in today’s world, when there is a cut throat competition among the companies for their existence in the market and a large number of potential competitors developing in the market. In such scenarios, the awareness of a product or a service plays a crucial role in determining its success in the market.

On the basis of this, marketing strategies are developed. Social media has gone viral in the 21st century with the number of users is about to touch the figure of 2 billion (McCaughey, et al. 2014). The number of people creating new social network accounts is also on the increase. People are immensely effected and connected through the promotions and advertising shown on the social media. People can also connect to their loved ones on a large scale through using the social media and this serves to be one of the major reason that contributes in influencing through viewing the products and passing them on to their contacts. Social media emerges to be one of the major tool in the promotion strategy of any organization today (Tuten 2008).

Service Elements
The product designed by LG in the form of TV in this case has to be very user friendly. It provides a clear understanding of the features that are involved in the product. There has to be special service in terms of customer care that provides the customers who would mainly comprise of senior citizens with a clear understanding of its operations. This is the speciality of the product.

There are various elements that are to be considered while developing a strategy for the LG Company and its effects have to be analysed before implementing them on the marketing plan for the new TV launch by LG. Neglecting them would indeed lead to huge consequences in terms of incomplete design of the product as well as lack of awareness among the target customers and other people who are linked with them and help them in getting a product that would provide them with the required programs that they want to view.
Resources Required
LG believes in involving small number of intermediaries between the company and the customers. This will help in reduction of a considerable amount of cost that the customers otherwise had to pay due to the profits of the various channels that was added in between them and the company.

The implementation of the strategy for the launching of the new range of TVS by LG has to undertake and evaluate the five factors that are very commonly known as “Porter’s five forces model”. In this, they have to consider the behaviour of the suppliers and the buyers while implementing the strategy in the market. The other two forces described in the model refers to the threats that are posed from the entry of potential competitors and the threat of substituting the product by another one. This forces are considered to be the industrial rivalries among the companies and are to be considered while developing and implementing marketing strategies.
This helps to evaluate the strategy and develop a HR plan that will help us in handling the target customers which involves a very delicate section of the society. Special trainings and recruitments are to be made on the basis of this factors.
It helps to discuss the factors that are internal which relate to the strengths and weaknesses and the external elements that relate to the opportunities and threats. These elements serve to understand the behaviour of the customers while launching a specific product. This are the various marketing slogans and strategies that are developed by the companies to ensure that they have the attention of the people so as to get the maximum share in the TV industry and increase their sales as well as earnings every year. The attitudes and behaviour of the customers help in estimation the strategy that would be appropriate in the successful launching of the TV by LG. these elements are necessary to be understood from the implementation point of view while utilizing and developing the strategies for the LG smart TV that is going to be launched keeping in mind the senior citizens across the globe.

Time Line
Here, the main work of developing the product is to set up a time line for the execution of strategies that would be implemented in the launching of the TV. LG has to develop a monthly plan for evaluating the design of the product in the target market and considering the product’s performance among the senior citizens from the time of its launching. It involves various measures and evaluation from the R&D department to understand the behaviour of the people while using the product.

This can be achieved by observing the market in the first month of the launching and then making prompt changes that are necessary to provide the customers with an increased level of service and satisfaction from the product. The profit should not be considered from the first month but it has to be evaluated after 3 months of launching. It involves believing in the product’s design and developing necessary amendments in it so as to provide the customers with an increased level of customer service.
The profit that is obtained from the sales of the product in the first three months after the launching is to be critically used and distributed among the tasks that are necessary for the future expansion and development of better technologies and terms related to the TV industry.

Contingency Plan & Evaluation

The marketing plan that has been developed by us in the discussion provides the company with an advantage over the other companies due to the sheer innovation and quality that it offers. However, there has to a strategy that would help the company to sustain in the market if this TV set does not become successful in the targeted customers. The reasons of this outcome has to be evaluated and analysed and on the basis of this the product can be redesigned and improved in terms of the features that it provides and its quality.
There has never been a TV which had it target customers as the senior citizens of the society. This would provide LG with an extra point over the innovation of the promotional term from the design and dedicated use point of view. The promotion strategy should be more simple and easy to accept by the target customers. This would help in achieving the required revenue that was not achieved in the first instance without even reducing the price. However, if the cost seems to be too high for the customers, then an alternate and effective method of production could be studied and examined to reduce the cost of the product. This can be achieved by customizing the plans and developing them to include the needs of the customers across the globe.

The company can also turn to Customization. When a company follows a customized and differentiated structure for the design of the product for all of its international markets, it is termed as Customization. It is quite costly as compared to the standardization process, but it’s more flexible as it involves customizing the product for every market which results in increased satisfaction among the customers. Customization helps to attain characteristics like variety, specific customized product and desirable features at comparative prices. (Pine, 1999)
This will not only help in achieving the desired position in the global market but also contribute in the level of trust and loyalty that the customer has on LG Company. This can be ensured by following the planned strategies and keeping a scope for improvement in the design that could easily be incorporated as and when required as per the requirements. The plans have to be analysed and evaluated critically to observe the influence of the product in the target market.

Executive summary
In this report, we have analysed and studied the marketing strategy that has been adopted by the LG Electronics for promoting their TV designs and new models in order to sustain itself in the global market which is getting all the more competent in the recent years. The needs and demands of the users have also increased largely owing to the increase in awareness and providing of different features by the various companies. Their style of branding that feature also influences the customers. There are various strategies that were developed by LG after analysing the market and the scenario which consisted of a large number of companies entering the entertainment industry and providing wide range of products.
The emergence of LG in the entertainment industry and its journey is also discussed in the report. The report tries to establish the relationship between the marketing strategies that have been developed by LG and its comparison with the strategies developed by its competitors. It has helped LG to develop a niche for itself in the TV industry and also provided them with a respective market share.

We have developed a marketing plan that provides the launching of the new smart TVs by LG that are dedicated for the senior citizen with the required boost in the TV industry. We have used the porter’s model and analysed the various strategies that are to be developed to ensure that the new product becomes a huge hit in the market.
The strategies that we have developed will help to increase the market share of LG Company in the TV industry from 16% to a minimum of 20% by the end of the year. This has been supported by the introduction of one of its kind of OLED and Ultra HD TVs by LG. this would help in boosting the popularity and brand value of LG and result in positive feedback from the customers regarding the new product of smart TV that is specially carved for the senior citizens. This is also for the first time that any company will be producing a product by keeping this section of the society as their target customers. This would help in achieving the success of the product in the Television industry.
These strategies are focused on the behaviour and attitudes of the potential customers that we have analysed and described in our report that are related to the success of the product in the TV industry. Along with the strategies, we have also observed the ways in which it has to be implemented to ensure that the product becomes a huge hit in the global market. This involves understanding the behaviour and the strategies that have been adopted by its competitors that proves to be a threat for the launch of the smart TV by LG in the market across the globe. Various tactics that are to be defined and observed while developing the product and selling it are discussed. These elements also help in providing an estimation of the product’s success in the market. We have emerged with an in depth understanding of the strategies that LG can use for the launching of the new smart TV that it has designed dedicated to the senior citizens of the society. This has helped me in providing a very good knowledge regarding the principles of marketing that are used to develop and launch a product in the local as well as international markets.

Worldwide differentiation of the TV market

(McGlaun, 2011)
Market share of the TV industry

Distribution of the sales and the share of various products in LG’s share

(Chaudhuri, 2011)
Swot analysis for LG Company

(Adam, 2014)
Contribution of the smart TVs and the plasma TVs in the last two quarters

(nd, 2014)
Distributors of plasma or flat TVs in the global market

(Sutton, 2011)

The share of LG in LED and LCD market across the globe

“Porter’s five forces model”.
(Briel, 2014)

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Posted on

March 9, 2018

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