DESCRIPTION OF CURRENT SITUATION:1. Company Voltas Voltas is among India's leading air-conditioning, refrigeration and engineering services companies.

. Set up in 1954, its core competencies lie in air conditioning and cooling appliances and services. Voltas is India's largest supplier of engineering products and services for the textile machinery sector and is a major manufacturer of forklift trucks. It provides solutions in turnkey pumping projects for water, effluent and sewage treatment, and water pollution control. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe. The company mainly operates in the following areas: Heating, ventilation and air-conditioning (HVAC) solutions: Includes the entire range of mechanical, electrical and plumbing services for a diverse range of applications, spanning office complexes, airports, malls, mercantile ships, atomic energy plants, IT parks, hospitals, etc. Cooling appliances: Design, manufacture and marketing of a range of air conditioners and water coolers for household and institutional use Engineering products and services: Design, sourcing, installation, training, maintenance, etc of engineering products and services in the fields of textile machinery, machine tools, mining and construction equipment and materials handling equipment. Chemicals: Import and distribution of an array of industrial, specialty and pharmaceutical chemicals, industrial plastics and bulk drugs. The company also exports gelatine, ultramarine blue and agrochemicals.

JOINT VENTURES, SUBSIDIARIES, ASSOCIATES Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto Aircon

(India). LOCATION Voltas has its head office in Mumbai and regional offices in several major cities in India. Its overseas offices are in Abu Dhabi (UAE), Hong Kong and Singapore. The company has factories at Thane (Maharashtra) and Pantnagar (Uttarakhand) in India.

Air Conditioner Industry Thanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An inordinately hot summer has convinced the people the comfort of an air-conditioner and a large number appears to have decided to take one home this year. Indeed, in the last few the years, the demand for air-conditioners from the household sector has been growing rapidly. Still, the demand growth is particularly noticeable, and was also the most significant change in the industry during this period. According to some industry estimates, growth in volume terms has been 45-50 per cent this fiscal. But official statistics underestimate this and even report a decline in production. Nevertheless, by all accounts, including a study by the Confederation of Indian Industry (CII), there has been a noticeable jump in the demand for air-conditioners from the household segment. After several years of relatively modest growth, which was totally at variance with the latent potential of the product, the sharp growth in demand the summer past was very welcome for air-conditioner companies in many respects. One, it relatively reduced their dependence on the corporate sector which is still the major demand driver. Corporate traditionally accounted for about 60 per cent of the total demand for airconditioners. But the burgeoning demand from the household segment could level the ratio in the near future.

One of the significant factors influencing the fortunes of the industry is the taxation structure. The industry has come a long way from the time when the excise duty structure favored only the unorganized sector. The steady fall in the excise rate in the 1990s helped the organized sector cope with the competition from the unorganized sector on more favorable terms. Still, the unorganized sector continues to meet a sizeable proportion of the demand for non-ducted products. There was a significant change in the excise duty structure in 2000. The rate was raised from 30 per cent to 32 per cent and this was expected to adversely impact the industry. However, the shift to a maximum retail price based system for the levy of excise appears to have helped the manufacturers. In the MRP-based system, an abatement of around 40 per cent was provided. This ensured that the impact of the increase in excise was minimal if not positive. Another major fiscal change is the removal of quantitative restrictions on imports. Imports are, however, not all that competitive considering the Customs duty structure. An import duty of 44 per cent along with a countervailing duty, which is equivalent to the excise duty, is a large enough protection for the domestic companies.

Growth of AC market
The demand for non-ducted products grew steadily in the latter half of the 1990s. The demand for mini-splits has grown at a higher rate compared to window ACs because of the lower base. The demand switch from mid-sized ducted products, such as packaged ACs or ducted splits, to mini-splits is also one of the reasons for the larger growth rates in the latter segment. Another major reason for the growth in demand was the increased attention this product category has attracted in the recent past. Prices of air-conditioners dropped sharply in the past few years because of competition. Most established players upgraded their manufacturing facilities, while fresh capacities were created by companies such as Matsushita (National brand). The marketing and advertisement spend by companies has also been on the rise. With such investments flowing into building both the product and the brand, the expansion of the market was inevitable. As seen with other consumer durables, in the initial years of increased intensity of competition, both existing and new players invest more cash. This leads to a drop in prices, fuelling demand and the result is a much larger market. And the non-ducted segment has attracted a lot of players in the last few years. The latent longterm demand potential from Indian households has led to a number of multinational companies making a beeline to set up base in the country. Major players in this product category are Carrier Aircon, Voltas and Blue Star. Brands such as Hitachi, Videocon and Godrej also have a sizeable presence. Among the recent entrants, the Korean brands such as Samsung and LG have been able to make an immediate impact. Other brands that have positioned themselves for a share in this fastgrowing market are National, Fuji General and Daikin. On a much smaller scale, Whirlpool and Electrolux have entered the market to cater to household demand. Initially, the entry of new players did have an adverse impact on the established players -especially Voltas and Carrier Aircon. The reduced sales of window ACs by Carrier Aircon

and Voltas in 1999-2000 compared to 1998-99 is testimony to the adverse impact caused by the entry of the new brands, especially Samsung and LG. However, since the beginning of 2000-01, it does appear that the established players -- Carrier Aircon and Voltas -- have started to hit back. They may have even picked up some of the market shares they lost in the earlier period. Again, initially, margins of established companies suffered as larger outlays in selling and distribution failed to translate into superior sales growth. The trend now appears to have been reversed.

MARKETING ANALYSIS
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others or otherwise it is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.

Marketing Strategy Marketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts. It is the marketing approach to accomplish the bread objective of the marketing approach to accomplish the bread objective of the marketing plan. The various process of marketing strategy is given below. 1. Selecting largest markets segmentation 2. Positioning 3. Product 4. Price 5. Place 6. Promotion 7. Research and development 8. Marketing research

1. Market segmentation and selecting target market Voltas has smartly created their market segment on the basis of the Cost sensitivity within consumers. Voltas has segmented their consumers as - Cost saving conscious - Cost saving plus appearance conscious

- Affordability with ease

2. Positioning Voltas has positioned themselves as a low on cost air conditioners with all the features of a good air conditioner.

3. Product Voltas offers a range of air conditioners in the market, which includes Split AC Window AC Pristine AC Panache AC Cassette AC Slim line AC

4. Price Considering the customer segmentation and market positioning, Voltas has kept its product prices competitive and lucrative for the economy minded consumers. The company does operate in the higher segments but it ensures Price as their winning factors, since they cannot compete over other value addition which is possible for other costlier brands.

5. Place Voltas has ensured its product presence at almost all tiers of cities throughout the country through local retailers, exclusive showrooms, malls, electrical and electronic superstores etc. Since last year, the company has also started coming up with special retail franchisee where all the Voltas products are installed in working conditions so that the consumers can check and feel the features of the product at the store. The location of such innovative stores is made such that it caters to majority of the areas within its radius. The after sale service shops are present in all major tier A, B, C cities. Voltas has even developed its own 24 hours dedicated customer care representatives to take all types of complaints, feedbacks and suggestions from customers.

6. Promotion

Voltas advertisement strategy clearly depicts their customer segmentation and positioning within market. The advertisement is meant to emotionally bridge the gap within its consumers who feel that AC runs on electricity bill to electricity saving AC. The promotions done through magazines are smartly placed and designed to attract different income level customers who prefer AC with good exterior look and low on energy bill.

7. Research and Development Voltas uses the state of the art technology in its entire product range. With the solid back up of Voltas and dependable Indian label, Tata, Voltas AC continuously develops its product to match with all the compliance and customer requirement.

MARKETING STRATEGY
Marketing is not Euclidean geometry a fixed system of concept. Rather marketing is one of the dynamic fields with in the management arena. The market faces continually a new challenge everyday and companies must respond to it positively. Therefore it is not surprising that new market idea keep surfacing to meet new market place challenges. The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through market strategy. Following strategies adopted by the organization. _ Niche Marketing: Voltas has kept their marketing objectives for niche segments. The specific marketing effect helps them staying focused with their product and customer demand _ Multi Prolonged Strategy: Voltas marketing strategy is a long term approach. They have not changed their stand since the inception of the brand and continue to promote the same value proposition of economic energy consumption to their customer segments. This has helped them in creating a brand sentiment within masses and the featured product are helping them in getting into cutting edge competition. _ Corporate selling at discount price to Employees: Voltas has adopted an amazing marketing technique of offering their AC product at reduced price to the employees of TCS. This promoted the brand within in house. On the basis of marketing strategy an organization runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization.

MARKETING MIX
Target Market Product Price Promotion Place Product variety List price Sales promotion Channels Quality Discounts Advertising Coverage Design Allowances Sales forces Assortments Features Payment period Public relation Locations Brand name Credit terms Direct marketing Inventory Packaging Transport Sizes Services Warranties Returns

MARKET POTENTIAL
The size of the air-conditioner industry in India is about Rs 2,000 crores. The industry can be sub-divided into non-ducted and ducted products. The demand for non-ducted products -window air-conditioners and mini-splits -- comes from both households and corporate. The demand for ducted products -- central plants, packaged air-conditioners and ducted splits -is only from the corporate. A vast majority of middle-class Indian homes have traditionally battled the summer heat with the help of fans or giant fan-driven water coolers which blast cool air. "All these years companies have thought of an AC as an expensive luxury product but that's no longer true, (The AC) has moved from its luxury status to a necessity item just like any washing machine or refrigerator. Air conditioner companies see India as a potential gold mine as it offers a winning combination of rising disposable incomes and AC ownership levels of just 1.1 percent of households. And average prices for air conditioners in India have dropped by about 20 percent over the past two years thanks to new companies entering the fray, making them more accessible to consumers. With average incomes rising, AC penetration to follow the same trajectory as colour TV ownership which is pegged at 18 percent of all households and whose sales have also been spurred by falling prices. The dismal supply of power where outages, lasting hours, are a part of life in large swathes of India, could still throw a spanner into the bullish hopes of AC companies. The big problem is the quality of power supply and the cost of running an AC running costs are upwards of three rupees an hour depending upon electricity tariffs. Also hurting growth is the unofficial "grey" market that accounts for close to 15 percent of the

sales. But that is down from 70 percent a decade ago, as competition among established players and growing preference for brand name ACs among consumers who want aftersales service has narrowed the gap to around 3,000 rupees from 7,000 earlier. It will shrink further and further as markets mature and consumers get educated. Indian air conditioner market is already flooded by players like Hitachi, Whirlpool, LG, Haier, Samsung, Voltas, Videocon and many more each competing on the basis of price and features.

SAMSUNG

2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change and opportunity to global business, and Samsung has responded with advanced techno-logies, competitive products, and constant innovation. At Samsung, we see every challenge as an opportunity and believe we are perfectly positioned as one of the world's recognized leaders in the digital technology industry. Our commitment to being the world's best has won us the No.1 global market share for 13 of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones. Looking forward, we're making historic advances in research and development of our overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile phones, digital appliances, and more.

2010

Samsung Electronics Held the 4th Samsung Young Design Award in Italy Samsung Electronics Introduced Samsung Galaxy Tab to U.S. Market Samsung Mobile Display developed flexible AMOLED panel with four times clearer WVGA resolution

Samsung Electronics honoured with 37 CES 2011 Innovation Awards Samsung Electronics launched OMNIA 7, the first Windows Phone 7 smartphone Samsung announced that it will establish seven social enterprises over the next three years to support the underprivileged in Korea Samsung Electronics began mass producing 20nm-class, 64-gigabit 3-bit NAND flash memory Samsung Engineering won the Sabah (Malaysia) Oil & Gas Terminal Project Cheil Industries established the WPM (World Premier Materials) flexible display business unit Samsung Electronics held the WCG 2010 Samsung Euro Championship at IFA 2010 Samsung Electronics held the Samsung Mobile Solutions Forum 2010 in Taiwan Samsungs brand value was ranked No. 19 in the world by Interbrands 2010 Best Global Brands Samsung Electronics 3D LED 8000 & 7000 series TVs were selected as this years best TVs by product testing magazines Which? in UK and Test in Germany Samsung Electronics won five European EISA Awards Samsung Electronics introduced Samsung Galaxy Tab to U.S. market Samsung Electronics TV won Product of the Year Award in Russia two years in a row. Samsung Electronics qualified foundry industrys first 32nm low power High-K Metal Gate Logic Process and Design Ecosystem Samsung Electronics introduced high-speed 512GB SSD utilising new toggle-mode DDR NAND memory Samsung Electronics captured five 2010 IDEA awards Samsung Fire and Marine Insurance entered the Chinese automobile insurance market Samsung Electronics hosts Samsung Global Developers Day for the Bada platform Samsung announced that it will invest $20 billion in new projects such as in ecofriendly and health care sectors by 2020 Samsung Life Insurance went public with IPO in Korean Market Samsung Electronics launched Worlds first 3D home theatre Samsung Electronics launched WAVE, the first smartphone based on Bada platform Samsung Engineering won $1.7 billion petrochemical plant contract in UAE Samsung Corning Precision Glass changed company name to Samsung Corning Precision Materials Samsung Mobile Display developed the Worlds largest 19-inch transparent AMOLED display Samsung Electronics merged with Samsung Digital Imaging Samsung Heavy Industries won $500 Million contract for nine oil tankers Samsung Electronics announced the industrys first multi-chip package (MCP) with PRAM for use in mobile handsets Samsung Electronics Android Phone Moment for the U.S won the Best in Show award at 2010 CTIA Samsung Electronics was awarded 2010 Green Communication Award Samsung Electronics globally launched the Worlds first Full HD 3D LED TV Samsung Electronics developed industrys first 30-nanometer-class DRAM Samsung Electronics opened its Olympic Rendezvous @ Samsung (OR@S) for the Vancouver 2010 Olympic Winter Games

Samsung Electronics was ranked No. 1 in market share for French Door refrigerators in the U.S. Samsung Electronics committed its sponsorship with the Singapore 2010 Youth Olympic Games (Singapore 2010) as a Worldwide Partner Samsung C&T opened Burj Khalifa, the world's tallest building Samsung SDS merged with Samsung Networks Samsung Electronics began mass producing industrys first 3D TV panels Displayed the worlds thinnest TV (6.5mm) at CES Launched major restructuring of its businesses Cooperates in creating a foundry with Xilinx of the US Developed the worlds first 40 nanometer DRAM Announced its Blue Earth solar-powered phone Released its V-line Crystal Rose LCD TV Samsung is found No. 1 in customer loyalty for 8 years consecutively by Brand Keys of the USA Samsung Digital Imaging developed an innovative hybrid digital camera Built the worlds largest mobile phone as recorded in the Guinness Book of World Records Received a Quality Management Award in Malaysia SADI, Samsung's design school, received the most iF Concept Design Awards for its entrants Opened [Link] for its domestic customers Received an Excellence Award from ENERGY STAR of the US Released the worlds thinnest Blu-ray player Introduced Mobile WiMax into Malaysia Released the worlds first full HD camcorder with a 64GB SSD Sold more than 20 million full touch phones in shortest time ever Samsung took up a record high market share in LCD monitors Released the worlds first solar -powered mobile phone in India Released the JET, its new concept full touch screen phone Released its 120Hz 3D monitor Samsung took the No. 1 spot in the global digital sign market for the first time Sold 500,000 units of its LED TVs in 100 days since its release Opened the visual mobile era with its third generation full touch Haptic AMOLED Released the worlds first infrared video phone Became the first in the industry to acquire TCO 3.0 certification for its notebook computers Announced its Green Management strategy Began mass production of the worlds first 40 nanometer DDR3 DRAM Released the worlds thinnest watch phone Developed the worlds lowest power 1GHz mobile CPU core Opened Samsung Application Store Seller Site Attained its most awards ever at IDEA 2009 Released its strategic smart phone, the Omnia Samsung's Yuna Haptic sold 500,000 units in record time Became the first in the industry to sell more than 10 million LCD TVs in the first half

2009

of the year Samsung won the chairmanship of the 3GPP international standardization association Sold more than 5 million of its STAR full touch phones in 4 months Samsungs Application Store officially opened Released the Corby full touch phone targeted at younger users Provided the WorldSkills Calgary 2009 Competition support Installed the worlds largest video wall in the US Released the first large capacity 16kg automatic washing machine in the domestic market Samsung's Mondi WiMax terminal receives Best Product at the 4G Awards Entered the top 10 list in the worlds top 100 global brands Samsung was selected as one of the top 10 global businesses in responding to climate change Samsung TVs took 50% of the Iranian market Introduced its R&D master system Released the Giorgio Armani smart phone Sold more than 5 million LCD panels for notebooks per month for the first in the industry Developed a 240Hz 3D LCD panel Received the 2009 LCD TV Market Leadership Award Deploys its brand memory card business Reached the worlds first LTE terminal supply agreement Developed the worlds thinnest 3mm LED TV panel Samsung successfully tested WiMax global roaming Samsungs LED TV won TV of the Year in Britain Declared its Creative Company strategy for the next 100 years Passed 4 trillion won in operating profits for its 40th year of foundation Introduced a Creative New Employee hiring system Developed the worlds first 0.6mm 8 chip package Sold 10 million STAR phones in six months of its release Announced its open mobile platform, bada Became the first in the industry to sell more than 4 million LCD panels for TVs per month Supported the hosting of the WCG final Launched a VIP membership program Sold 50 million full touch screen phones in 2 years Samsung's printing solutions won product of the year in the US Announced bada its own smart phone platform Samsung successfully commercialised its 4th generation LTE terminal Restructured its organization and appointed Gee-Sung Choi as its new CEO Sales of Samsung Yuna Haptic phones broke the threshold of 1 million Became No. 1 in the US digital TV market for the 4th consecutive year Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics Launched OMNIA phone Completed establishing TV manufactory in Russia Kaluga Became the official sponsor of 2010 Guangzhou Asian Game

2008

Developed the world's first 2Gb 50 NANO Samsung takes No. 1 spot in U.S. cellphone market Opened Global Brand PR Centre Samsung D'light' No.1 worldwide market share position for TVs achieved for the 9th quarter in a row No.1 worldwide market share position for TVs achieved for the seventh quarter in a row Developed the world's first 30nm-class 64Gb NAND Flash memory BlackJack bestowed the Best Smart Phone award at CTIA in the U.S. Attained No.1 worldwide market share position for LCD for the sixth year in a row Developed the world's first real double-sided LCD Developed the worlds' first 50nm 1G DRAM Unveiled 10M pixel camera phone Launched "Stealth Vacuum," a vacuum cleaner with the world's lowest level of noises Launched the worlds' first Blu-Ray Disc Player Developed 1.72"Super-Reflective LCD Screen Developed the largest Flexible LCD Panel Ranked 27th in "the World's Most Admired Company" of Fortune Became the official sponsor of Chelsea, the renowned English soccer club Released the world's first 7 mega pixel camera phone Developed the world's first OLED for 40" TV Became the official sponsor of Chelsea, the renowned English soccer club Developed the first-ever speech recognition phone Produced the first wrinkle-free steam washer Sold more than 20 million cellular phones in the U.S Developed the world's first 60-nano 8GB NAND Flash memory chip Ranked top in mobile phone sales in Russia Released new PDP TV featuring the highest contrast ratio in the world Developed a 3rd Generation Optical Blu-Ray Disc Recorder Developed cellular phone chip for satellite DMB system Released 46" LCD TV for the first time in the world Samsung brand value ranked 25th in the world by Interbrand Ranked 5th on the "Most Admired Electronics Company" list released by the Fortune Magazine Released the first HD DVD combo Development of the 54"TFT-LCD, the largest digital TV monitor in the world Launches PDP-TV, the slimmest in the world Launch of colour mobile phones in which the new concept UFB-LCD is introduced Launched new high-definition TFT-LCD colour cellular phone Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek

2007

2006

2005

2004

2003

2002

2001

Unveils 16 Chord Progression Melody Phone Begins Mass Production of 512Mb Flash Memory Device Unveils Industry's First Ultra-Slim Handset Develops World's first 40 inch TFT-LCD Unveils TFT-LCD with Record-breaking Definition Launches PDA phone Samsung Olympic Games Phone selected as the official mobile phone of the Sydney 2000 Olympic Games TV Phone and Watch Phone Make Guinness Book of World Records Unveils the Worlds Fastest Graphics Memory Chip Samsung Electronics and Yahoo! Form Strategic Alliance Develops Unique All-in-one DVD Player Developed world's first 512Mb DRAM Developed world's first 512Mb DRAM

2000

Vision 2020
As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future." This new vision reflects Samsung Electronics commitment to inspiring its communities by leveraging Samsung's three key strengths: New Technology, Innovative Products, and Creative Solutions. -- and to promoting new value for Samsung's core networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: Creativity, Partnership, and Talent. Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

The trajectory of LG Electronics, its growth and diversification, has always been grounded in the company ethos of making our customers' lives ever better and easier-happier, even-through increased functionality and fun. Since its founding in 1958, LG Electronics has led the way to an ever-more advanced digital era. Along the way, our constantly evolving technological expertise has lent itself to many new products and applied technologies. Moving forward into the 21st century, LG continues to on its path to becoming the finest global electronics company, bar none.

LG Electronics 50-year History

1958 Founded as GoldStar

1959 Produce Korea's first consumer radios

1998 Introduce the 60-inch plasma TV

1999 Forge joint venture with

Philips

2003 Enter UK GSM handset market

2005 Develop 3G UMTS

DMB handset

2007 Launch HD disc-player and drive

1958 GoldStar (todays LG Electronics) established 1959 Koreas first radio produced

1965 Koreas first refrigerator produced 1966 Koreas first black & white TV produced 1968 Koreas first air conditioner produced 1969 Koreas first washing machine produced 1974 GoldStar Communications went public 1977 Color TV produced 1978 Exports surpassed US$100 million, a first for Koreas electronics industry 1980 First EU sales subsidiary in Germany (LGEWG) established 1982 Color TV plant established in the US in Huntsville, Alabama 1984 Sales surpassed 1 trillion Won 1986 European-standard VCR plant established in Germany 1989 Sales subsidiary and a joint production subsidiary established in Thailand 1990 Ireland-based design technology center established 1993 With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing 1995 Company name changed to LG Electronics and US-based Zenith acquired 1997 40-inch Plasma TV and the worlds first IC set for DTVs developed India production subsidiary (LGEIL) established 1998 Worlds first 60-inch Plasma TV developed 1999 [Link] LCD established 2000 LG Information & Communications merged The worlds first Internet-enabled refrigerator launched Global sales of refrigerators reached the number one position 2001 Asynchronous IMT-2000 equipment commercialized The worlds first Internetenabled washing machine, air conditioner, and microwave oven launched [Link] Displays, a joint venture with Philips established 2002 Under the LG Holding Company system, the Company spun off to LG Electronics (LGE)& LG Electronics Investment (LGEI) The first home network system commercialized in the global market 2003 Worlds first synchronous-asynchronous IMT-2000 mobile phone developed The worlds first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the worlds first Super Multi DVD Rewriter

2004 EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55-inch LCD TV, the worlds first and largest among LCD TVs, commercialized The worlds largest and first 71-inch Plasma TV commercialized The worlds first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System 2005 The worlds first DMB notebook commercialized The worlds slimmest TV commercialized The worlds largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a joint venture for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market 2006 Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world's first 100-inch LCD TV Launched the world's largest Full HD 102-inch Plasma TV (1080p) Developed the world's first dual-format high-definition Disc Player& Drive 2007 Launches the industry's first dual-format, high-definition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE Won contract for GSMA's 3G campaign 2008 Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."

LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digitalensuring customer satisfaction through innovative products and superior service while aiming to rank among the worlds top three electronics, information, and telecommunications firms by 2010. On our way, we hold tight to a philosophy of "Great Company, Great People," underscoring our belief that only great people can create a great company. LG strives for greatness in what we've identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadershipeach strength a key part of realizing our growth strategies for "fast innovation" and "fast growth". LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The companys goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of Great Company, Great People, recognizing that only great people can create a great company.

Core Capabilities

Product leadership refers to the ability to develop creative, top-quality products, using specialized new technologies. Market leadership refers to the ability to achieve top ranking, worldwide, thanks to a formidable market presence in countries across the globe. People leadership refers to the market dominance achieved by selecting and nurturing talented team players able to internalize and execute innovation across the board.

Growth Strategies

Fast innovation calls for securing a competitive edge over the competition by settingand meetingthe highest of goals in all realms of innovation, by at least 30%. This applies to newproduct development and unveiling, innovation in design and technologyas well as product sales, market share, and corporate value. Fast growth is the result of implementing strategies designed to swiftly expand market size and earnings, with and eye toward monetary growth.
Corporate Culture

Though a company can boast stellar management strategies and an outstanding and talented pool of employees, it is still necessary to adopt a corporate culture that can fully unleash the power of these capabilities.
No to Nos

At LG, we try to meet every road block with an alternate routebrainstorming and working harder before saying no.
We not I

LGs embraces a code of strong teamworkencouraging pride in achievement as goals are met by many working together as one.
Fun Workplace

LGs workplace is one where the individuals creativity and freedom are respected, and work is made fun.

LG marketing strategy
Global and regional digital leader, LG Electronics, has announced a new marketing initiative to ensure its home appliance business rakes in USD14 billion in global sales by 2007 to become the world's largest appliance manufacturer.

David Park, vice president and head of overseas sales and marketing, LG Digital Appliance Company. LG Electronics RSS feed

LG becomes world's largest PDP panel producer LG Express Notebook series set to harness Wi-Fi revolution LG introduces mini notebooks LG to unveil revolutionary technology at Gitex 2005 New age for robotic vacuums with LG Electronics Roboking LG set to lead plasma display segment LG launches GSM L3100 for fun seekers LG calls for reduction in GCC power consumption LG showcases the latest in mobile entertainment LG introduces energy conservation system for air conditioners

LG's new strategy aims to focus on the premium segment of the market that fetches greater margins as opposed to volumes. The company claims this will benefit its consumers, channel partners and stakeholders as it focuses on products that drive rapid growth and lead in their brand category to

create value for customers. Market studies indicate the demand for luxury consumer goods in the Middle East is burgeoning as a result of the high per capita income and quality savvy consumers with increased purchasing power. LG enjoys high brand recognition in the region, it is the second most recognised electronics brand with 55.7 per cent unaided brand awareness according to the 2004 Gallup brand equity index survey, which represents high purchasing probability for its premium products. "Even though LG has strong brand awareness in the region, the sales of our premium products in the Middle East need a boost. LG is already the world's top selling brand in terms of air conditioners, microwave ovens and canister vacuum cleaners. The goal of LG's Digital Appliance Company is to become the number one brand worldwide in the home appliance sector by 2007 and increase global sales to US$ 14 billion. We are focusing our production and marketing efforts on high end products in the appliances market. To keep pace with our growth, we now need to fine tune our marketing strategy and focus on premium products," said David Park, vice president and head of overseas sales and marketing, LG Digital Appliance Company. To succeed in its premium marketing efforts, Park said LG would concentrate on staying ahead of the technology curve and develop products that deliver high value to consumers. Park also announced a new channel marketing strategy to reward its distributors and build on its channel successes in the region. LG has developed a CRM program called the 'Diamond Club' to drive the sales of premium products. Sustaining one market price in all stores, maintaining a price gap with main competitors to retain a premium image, unique promotions for target customers and welltrained customer care executives are features of this channel initiative. "We are committed to investing marketing and training resources to educate the channel on the benefits of delivering cutting-edge mobility, digital convergence and appliances to customers in these markets," said Park. Focusing on the premium segment in the appliances market will help LG overtake competitors such as Whirlpool of the USA and Sweden-based Electrolux. In the Middle East, LG is aiming for overall regional sales of US$ r2.8 billion this year, a 34 per cent growth over 2004. Since 1999, LG's Digital Appliance Company has been posting over 20 per cent growth in sales every year compared to the four to five per cent average growth rate in the global home appliances industry. "To date, our major revenue earners have been commercial and residential air conditioners, microwave ovens, refrigerators, washing machines and vacuum cleaners. We intend to continue to build on these core product categories as well as to focus on future sources of growth in areas such as central air conditioners (CAC's), built-in appliances, ovens, dishwashers, and plasma lighting systems," Park added. Around 48 representatives from LG's regional distribution network in the UAE, Qatar, Bahrain, Oman, Kuwait, Yemen, KSA, Iran and Turkey participated in the forum.

BRAND COMPARISON
COMPANY: L.G. ELECTRONICS Punch lines: Lifes good, Think about tomorrow Basis for campaign: Brand name ,Linking happiness with health happiness in every breath, Its worlds no one manufacture of ac. Features: Neo plasma health filters, Gold fins, Chaos logic, Energy savers, Jet cool, Anti bacterial filters Promotional schemes: 1 + 4 years warranty Type of ac Window ac Split ac Wall mounted Multi split Floor standing Capacity (in tons ) 1, 1.5 and 2 1, 1.5 and 2 1,1.5 and 2 2,3, and 4 2,2.5 and 3

COMPANY: SAMSUNG Punch lines:Breaths life Basis for campaign: Brand name, Clean and purified air help your child breath free, Own compressor Features: Turbo power, Quick power, Optimizer, Bio health plus, Tropical Rotatory compressor, Compact design, Bionizer, Silver Nano health system Promotional schemes: Types of ac Window ac Split ac 1 + 4 years warranty for corp., 0% interest without any files changes Capacity (in tons) 1,1.5 and 2 1,1.5 and 2

COMPANY: VOLTAS Punch lines: Acs with IQ Basis for campaign: Old brand, AC with IQ, Sleek & streamlined body Features : Vertis Power saver mode, air filter, Timer, Uniform cooling, Burst proof capacitor, Vitamin-c filter, Blue fin technology Promotional schemes: 1 + 4 years warranty, 0% finance available Types of ac Vertis Window ac High wall split ac Vectra Window ac High wall split ac O.75,1,1.5 and 2 1,1.5,2 and 3 1,1.5 and 2 1,1.5,2 and 3 Capacity ( in tons)

Air Conditioner Industry: The size of the air-conditioner industry in India is about Rs 2,000 crore. The industry can be subdivided into non-ducted and ducted products. The demand for non-ducted products window airconditioners and mini-splits comes from both households and corporate. The demand for ducted products central plants, packaged air-conditioners and ducted splits is only from the corporate. Corporate traditionally accounted for about 60 per cent of the total demand for air conditioners. Corporate sector is still the major demand driver in this industry but because of the burgeoning Indian middle class there has been a noticeable jump in the demand for air-conditioners from the household segment

Air-Conditioner in India Product Segment Size (Rs. in crores)

Window and Split

900 (Approx.)

Central and Chiller

600 (Approx.)

The domestic Window Air-conditioner has been growing at the fastest rate but this has been accompanied by increasing competition leading to low profit margins. Profits in this segment are driven by volume growth. Against most developing countries, Indian market is Window A.C. oriented - both commercially as well as household. Considering the low penetration of A.C.s, the segment is likely to grow, at least for the next 5 to 10 years. An important player in the Window A.C. segment is the unorganized sector. Current market share of organized and unorganized players are 60% and 40% respectively. The market for air-conditioners was earlier dominated by the unorganized sector as a result of high excise duty. This sector accounted for around 55 to 60% of the market share only 2-3 years ago. The proportion used to be 30:70 during 91-92. Then lowering of excise duties from 110% to 40% favored the organized sector by narrowing the price gap e.g., a 1.5 ton air-conditioner which costs Rs.45,000/- in 91-92, now costs below Rs. 30,000/- in the organized sector against Rs. 24,000/- in the unorganized sector. This has led to the organized sector entering into the unorganized sector's share and also due to brand awareness on part of the customers.

Industry Segments Volume (Units) Value crores) Window Air-conditioner Split Air-conditioner Package Air-conditioner Total 3,00,000 75,000 30,000 4,05,000 900 300 290 1490 (Rs. in

History of Air Conditioners

Air conditioning as we know it today is a rather new technology although different form of cooling air and dehumidifying the air has been around for centuries. The ancient Romans used aqua duct water to circulate through the walls of the wealthiest homes. This is just one example of ancient air [Link] Chinese were also were also obsessed with cooling the air through water and wind. They used various methods to cool their interior buildings and stay cool during the hot months. In the 1800's one man came close to inventing what is similar to modern day air conditioning. In 1820 British Inventor Michael Faraday discovered that ammonia could chill the air when compressed and liquidized and then allowed to evaporate. In 1841, John Gorrie, a medical doctor discovered that he could use compressor technology to create ice to cool his patients rooms in Florida. This discovery gave Gorrie the great aspiration of inventing the first air conditioning unit. He came very close. His first pro type leaked and was unsuccessful. He secured funding and his patent was approved in 1851. His funding partner died and he lost the money to see his dream

realized. He later died in 1855 and with him his vision of indoor air conditioning died as well for the next 50 years. The commercially available of air conditioning applications started based on the need to cool air for industrial processes than for personal comfort. The first electrical air conditioning was invented by Willis Haviland Carrier in the year 1902. He was also known as the Father of Modern Air Conditioning. His invention was designed to improve the manufacturing process of a printing plant. By controlling the temperature and humidity of the plant, the processes were made more efficient as the paper size and the ink alignment were consistently maintained. The Carrier Air Conditioning Company of America was established by him to meet the demand of better productivity in the workplace. Today, Carrier Corporation is the biggest air conditioner manufacturer and marketing corporation in the world in central air conditioning. The term air conditioning was first coined by Stuart W. Cramer of Charlotte, North Carolina in 1906. Cramer was trying to create ways to add moisture to the air in his textile plants. Cramer used the term Air conditioning in a papers filed to the patent office for his invention of a water conditioning unit which was required to control the humidity in textile plants. Willis Carrier took the term air conditioning and put it into his companies name as he used evaporative cooling to provide a cooling effect in the air. The first air conditioners proved to be hazardous to humans health when the toxic gases leaked. The use of ammonia, methyl chloride and propane. These toxic, flammable gases tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was the first to create an air conditioner that used Freon. This was found to be much safer for humans but had disastrous effects to the environme