Career College, Bhopal,

Barkatullah University, Bhopal

Session 2020-21

A PROJECT REPORT ON

“ SALES PROMOTION & MARKETING STRATEGY OF

LG ELECTRONICS INC. ”

Submitted by

Ashwni Markam
B.Com (Honours), 3rd Year

Under the Guidance of

Mrs. Priyanka Kurup

(Class Mentor)

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 ACKNOWLEDGEMENT

I extend my respect to our Principal Prof.______________________________________, for

his valuable support in carrying my Project Report work.

It is my privilege to thank our Head of the Department Mrs. Deepali Behere, Department of
Commerce and Management for his support and guidance for doing my Project Report
work.

I express my sincere thanks to my guide Mr. Sanjay Patel for his valuable suggestion and guidance
for doing the Project Report work.

I also express my sense of gratitude to Mr. Kamal Kant Rathore,(HR) for providing me this
wonderful opportunity to do my Project Report work in the topic, “SALES PROMOTION ACTIVITIES
OF LG ELECTRONICS”.

I also express my gratitude to all the faculty members, parents and my fellow mates who have
helped me to carry out this work. Last but not the least, I think my almighty God for His blessing
showed on me during this period.

Ashwini Markam
B.Com (Honours) 3rd year

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 DECLARATION

I ASHWINI MARKAM, hereby declare that the following project report titled “SALES PROMOTION
ACTIVITIES OF LG ELECTRONICS” is my original authentic work.

The project report was undertaken as a part of the course curriculum of B.Com program,
Barkatullah University, Bhopal. This has not been submitted to any other examination body earlier.

Date: Signature
Place: Bhopal Ashwini Markam
B.Com (Honours), 3 rd
Year

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 CERTIFICATE

This is to certify that Ashwini Markam student of B.Com (Honours) 3rd Year has undertaken a
project on “SALES PROMOTION ACTIVITIES OF LG ELECTRONICS”, submitted in the partial
fulfillment for the requirement of B.Com (Honours).

The project report has been successfully completed under my supervision.

Mrs. Priyanka Kurup

(Project Guide)

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 TABLE OF CONTENT

 
CHAPTE PAGE
CONTENTS
R
NO.

1 Introducti on  

2 Objecti ves of the project  

3 Company Profi le  

4 LG Electronics Inc.

5 Research Methodology  

6 Collecti on of Data  

7 Data Analysis & Interpretati on  

8 Conclusion and Suggesti on  

9 Suggesti ons and Conclusion  

10 Bibliography

11 Annexure  

CHAPTER - 1

Introduction

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1.1 Meaning of Brand :

A brand is a name, term, design, symbol, or any other feature that identifies one seller’s goods or
service as distinct from those of other sellers.

ISO brand standards add that a brand “is an intangible asset” that is intended to create “distinctive
images and associations in the minds of stakeholders, thereby generating economic
benefit/values.”

1.2 Meaning of Sales Promotion :

Sales promotion is a part of promotional mix. Sales promotion refers to the activities which
supplement and co-ordinate personal selling and advertising to attract customers to buy a product.
Sales promotion methods include displays, demonstrations, expositions, exhibitions and other non-
recurrent selling efforts which aim at impelling spot buying action by prospective customers. Sales
promotion is the process of persuading a potential customer to buy the product. Sales promotion
is designed to be used as a short-term tactic to boost sales - it is rarely suitable as a method of
building long -term customer loyalty. Some sales promotions are aimed t consumers. Others are
targeted at intermediaries and at the firm’s sales force.

Sales promotion methods include displays, demonstrations, expositions, exhibitions and other non-
recurrent selling efforts which aim at impelling spot buying action by prospective customers. Sale
promotion techniques are indirect and non-personal. Sales promotion activities are more common
for consumer’s goods marketing than for industrial goods. Consumers are attracted by displays,
packaging and publicity. Sales promotion devices are also a source of information to the
customers.

Sales promotion, as part of the total distribution system, plays a vital role in inducing the consumer
to buy your product. Sales promotion covers so many activities that it is difficult to define it
precisely.

Definitions :

In the words of Philip Kotler, “Sales promotion consists of a diverse collection of incentive tools,
mostly short term, designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade”.

American Marketing Association, “Those marketing activities, other than personal selling,
advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as
displays, shows and exhibition, demonstrations and various non-recurrent selling efforts not in the
ordinary routine”

 Methods of Sales Promotion : There are many methods of sales promotion –

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 1. Money Off Coupons – Customers receive coupons, or cut coupons out of newspapers or a
product packing that enables them to buy the product next time at a reduced price.

2. Sponsorship – Buying the product will allow the customers to take part in a chance to win
prize.

3. Discount Vouchers – A voucher like a money off coupon.

4. Free Gifts – A free product when buy another product.

5. Point of Purchase Displays – Posters, display stands – ways of presenting the product in it
best way or show the customer that product is there.

6. Loyalty Cards – Loyalty Cards have recently become an important form of sales promotion.
They encourage the customer to return to the retailer by giving them discounts based on
the spending from previous visit. Loyalty cards can offset the discounts they offer by
making more sales and persuading the customer to come back. They also provide
information about the shopping habits of customers - where do they shop, when and what
do they buy? This is very valuable marketing research and can be used in the planning
process for new and existing products.

 Sales Promotion Advantages :

1. Effective at achieving a quick boost to sales.

2. Encourage customers to trial a products or switch brands.

 Sales Promotion Disadvantages :

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 1. Sales effect may only be short-term.
2. Customers may come to expect or anticipate further promotions
3. It may damage brand image.

1.3 Meaning of Marketing :

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.

 4 Ps of Marketing

1. Product -

A product is defined as a bundle of attributes (features, functions,

benefits, and uses) capable of exchange or use, usually a mix of
tangible and intangible forms. Thus a product may be an idea, a
physical entity (goods), or a service, or any combination of the three. It
exists for the purpose of exchange in the satisfaction of individual and
organizational objectives. While the term “products and services” is
occasionally used, product is a term that encompasses
both goods and services.

2. Price -

Price is the formal ratio that indicates the quantity of money, goods,

or services needed to acquire a given quantity of goods or services. It is
the amount a customer must pay to acquire a product. 

3. Place (or Distribution) -

Distribution refers to the act of marketing and carrying products to consumers. It is also used to describe the extent
of market coverage for a given product. In the 4 Ps, distribution is represented by place or placement.

4. Promotion -

According to the Association of National Advertisers(ANA), promotion marketing includes tactics that encourage

short-term purchase, influence trial and quantity of purchase, and are very measurable in volume, share and profit.
Examples include coupons, sweepstakes, rebates, premiums, special packaging, cause-related marketing
and licensing.

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 Types of Marketing :

Traditional Newspapers, Magazines, Flyers &

Marketing Brochures, Radio, TV Ads, Billboards

Types of
Marketing
Search Engine Optimization (SEO), Pay-
Digital per-Click (PPC), Social Media
Marketing Marketing, Content Marketing, Email
Marketing, Mobile Marketing

1. Traditional Marketing - Traditional marketing refers to any type of marketing that

isn’t online. This means print, broadcast, direct mail, phone, and outdoor advertising like
billboards. From newspapers to radio, this method of marketing helps reach targeted
audiences. Traditional marketing is not only one of the oldest forms of marketing, but also one
of the most researched. Marketers lean towards this method because it’s tried and true.
Everyone encounters some sort of traditional marketing in their everyday lives, whether it’s
getting the mail or your daily newspaper.

Traditional marketing plays an important part in reaching local audiences. Ads can be kept for a
long period of time, if they’re physical. Plus, there’s an audience who’s easier to reach through
traditional marketing than online marketing.

2. Digital Marketing - Digital marketing is any marketing a company conducts online,

such as paid social media ads, email marketing, and PPC advertising. Digital marketing has
become wildly popular due to the cultural, technological, and societal shifts around us.

Digital marketing is essential for businesses today. It’s become routine for consumers to
conduct research and make purchases online. Just this week, I’ve looked up lunch spots, priced
couches, and picked an eye doctor — all using the internet. As the world becomes more
digital, the way we market has evolved. Not only is digital marketing sometimes more cost-
effective than traditional, but also it is a more direct way to connect with target audiences
globally.

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 Difference between Traditional Marketing and Digital Marketing -

Traditional marketing is an approach in which marketers identify their

audience and place ads where their audience will see, hear, or interact with
them offline, such as print ads, billboard, or television advertisement. Digital
marketing is facilitated online and uses paid or organic ads on social media or
search engines, as well as email marketing, influencer marketing, and video
marketing to name a few.

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 CHAPTER – 2

OBJECTIVE OF THE PROJECT

2.1 Primary objectives :

 The main objective of filed survey during the project was to find out the market share of
the LG and also calculate the display share.
 Find out the positional dealer who can sale the LG product in large volume.
 The main objective of research was to identify potential dealer and development these
dealer. So LG can make them their direct dealer.
 This will ease the dependence on the some big dealer like Maharashtra and Mahaveer
electronics.
 Find out the problem faced by the dealer in sales and the distribution.

2.2 Secondary objectives :

1. The Objective was to find out that how far the exhibitions are helpful in branding,
2. While purchasing the consumer durables which parameter is most important for the
consumer?
3. Do the consumers prefer the financial facility for buying consumer durable?
4. How frequently consumers change the consumer durable?
5. To enhances the knowledge of consumer durable market.

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 6. To enhances the knowledge about the marketing and branding activity.

CHAPTER - 3

COMPANY PROFILE

 VISION : Global Top 3 by 2010

Global Top 3 Electronic/Telecommunication company

 GROWTH STRATEGY : “Fast innovation, Fast growth”

 CORE COMPETENCY : “Product leadership, Market leadership, People leadership”

 CORPORATE CULTURE : No excuse, “we” not “I”, Fun workplace

 SLOGAN : "We Put People First" (1997–1999), "Digitally Yours" (1999–2004), "A Better Life with
Digital" (2002–2004), "Life's Good" (1999–present in Australia and 2004–present in the rest of the
world), "Innovation for a Better Life" (2016–present).

 THE SYMBOL :


The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good"
set in Charlotte sans typeface curved around the LG symbol. The curving of the slogan reinforces
LG's personality and uniqueness. The consistent usage of this signature clearly establishes the
unique identity of the company and unifies every division and product from LG Electronics across
the globe. The symbol of LG is the face of future. The letter “L” and “G” in a circle symbolizes
world, future, youth, humanity & technology. LG philosophy is based on humanity. It also

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 represents LG‟s efforts to keep close relationship with our customers around the world. The
symbol consists of two elements :

1.The logo in LG gray

2.The stylized image of human face in the unique LG red color.

Red color represents our friendliness and gives a strong impression of LG‟s commitment to deliver
the best. The circle symbolizes The Globe. The stylized image of a smiling face in the symbol
conveys “Friendliness and Approachability”. The one eye on the symbol represents “Goal-oriented,
Focused & Confident”.The slogan of LG is “Life’s Good”. It expresses “Brand’s Value, Promises,
Benefits, Personality.

CHAPTER - 4

LG ELECTRONIC INC.

4.1 LG Electronics Inc. -

LG Electronics Inc. is a South Korean multinational

electronics company headquartered in Yeouido-dong,
Seoul, South Korea. LG Electronics was established in
1958 and has since led the way into the advanced
digital era thanks to the technological expertise
acquired by manufacturing many home appliances
such as radios and TVs.
LG Electronics has unveiled many new products, applied
new technologies in the form of mobile devices and
digital
TVs in the 21st century and continues to reinforce its status as a global company. In order to create
a holding company, the former LG Electronics was split off in 2002, with the "new" LG Electronics
being spun off and the "old" LG Electronics changing its name to LG EI. It was then merged with
and into LG CI in 2003 (the legal successor of the former LG Chem), so the company that started
as Gold Star does not currently exist.
LG Electronics plays a large role in the global consumer electronics industry; it was the second-
largest LCD TV manufacturer worldwide as of 2013. By 2005, LG was a Top 100 global brand and
recorded a brand growth of 14% in 2006. As of 2009, its display manufacturing affiliate, LG Display,
was the world's largest LCD panel manufacturer. In 2010, LG Electronics entered
the smartphone industry. LG Electronics has since continued to develop various electronic
products, such as releasing the world's first 84-inch ultra-HD TV for retail sale. On 5 December
2012, the antitrust regulators of the European Union fined LG Electronics and five other major
companies (Samsung, Thomson since 2010 known as Technicolor, Matsushita which today is
Panasonic Corp, Philips and Toshiba) for fixing prices of TV cathode-ray tubes in two cartels lasting
nearly a decade.

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 On 11 June 2015, LG Electronics found itself in the midst of a human rights controversy when  The
Guardian published an article by Rosa Moreno, a former employee of an LG television assembly
factory.
At the end of 2016, LG Electronics merged its German branch (situated in Ratingen) and European
headquarter (situated in London) together in Eschborn, a suburb of Frankfurt am Main.
In March 2017, LG Electronics was sued for its handling of hardware failures with recent
smartphones such as the LG G4. Koo Bon-joon, who was the CEO and the current vice chairman of
LG Electronics, was replaced by his nephew Koo Kwang-mo in July 2018 as CEO and vice chairman.
The move came after the succession of Koo Kwang-mo as the chairman of the parent company LG
Corporation who succeeded his adoptive father and uncle Koo Bon-moo after Bon-moo died of
a brain tumor on 20 May 2018.
LG announced in November 2018 that Hwang Jeong-hwan, who took the job as president of LG
Mobile Communications in October 2017, will be replaced by Brian Kwon, who is head of LG's
hugely profitable home entertainment business, from 1 December 2018. Also in 2018, LG decided
to stop smartphone production in South Korea to move production to Vietnam, in order to stay

competitive. LG said Vietnam provides an "abundant labor force" and that 750 workers at its South
Korean handset factory would be relocated to its home appliance plant.
On 5 April 2021, LG announced its withdrawal from the phone manufacturing industry after
continuous loss in the market. In 2020, LG faced a loss of 5 trillion won (US$4.4 billion).

4.2 Brands in consumer electronics sector :

S.No. Brand Deals In Origin Country

Name
1 Philips Air Purifier, Ironing, Cooking, Food Amsterdam, Netherlands
Preparation, Lights and more

2 whirlpool Built-in Appliances, Microwave Ovens, Michigan, United States

Coffee machines, Small domestic
Appliances, Dishwasher and more

3 Samsung Refrigerators, Washing Machine, Air  Seoul, South Korea

Conditioners, Air Purifier, Cooking
Appliances and more

4 IFB Washing Machine, AC, Dishwasher, Kolkata, India

Oven, Chimney and more

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 5 LG Refrigerators, Washing Machine, Dish Seoul, South Korea
Washer and Dryer, Water Purifiers, Air
Purifiers, Oven Microwave, Mobile,
Fans, Vacuum cleaner and more

6 Haier TV, Water heaters, Refrigerators. ACs, Shandong, China

Washing Machine, Microwave, Ovens
and more

7 Godrej Refrigerators, Washing Machine, AC,

Air Purifier, Ovens and many more Mumbai, Maharashtra, India

8 Bajaj Room Heaters, Air Cooler, Irons, Water

heater, Fans, Lightening, Mixer Mumbai, Maharashtra, India
Grinder, Juicer, Coffee Maker and
many more

9 Bosch Dish Washer, Washing, Machine, Air Gerlingen, Germany

Conditioner, Induction Hobs, Ovens
and many more

4.3 Products –

LG Electronics' products include televisions, home theater systems, refrigerators, washing machines,

computer monitors, wearable devices, solar modules, smart appliances and, formerly, smartphones.

1. Televisions –

The LG SL9000 was one of several new Borderless HDTV's advertised for release at IFA Berlin in
2009. LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014. LG
Electronics introduced its first Internet TV in 2007, originally branded as "Net Cast Entertainment
Access" devices. They later renamed the 2011 Internet televisions to "LG Smart TV" when
more interactive television features were added, that enable the audience to receive information
from the Internet while watching conventional TV programming.
In November 2013, a blogger discovered that some of LG's smart TVs silently collect filenames
from attached USB storage devices and program viewing data, and transmit the information to LG's
servers and LG-affiliated servers. Shortly after this blog entry went live, LG disabled playback on its
site of the video, explaining how its viewer analytics work, and closed the Brightcove account the
video was hosted on.
LG manufactures remote control models that use Hillcrest Labs' Free space technology to allow
users to change channels using gestures and Dragon NaturallySpeaking technology for voice
recognition.
As of 2014, LG is using web OS with a ribbon interface with some of its smart TVs. LG reported that
in the first eight months after release, it had sold over 5 million web OS TVs.

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In 2016, exclusively to India, Indian arm of South Korea's LG Electronics Inc started selling a TV that
would repel mosquitoes. It uses ultrasonic waves that are silent to humans but cause mosquitoes
to fly away. It was released on 16 June 2016. The technology was also used in air conditioners and
washing machines. The TV is aimed for lower-income consumers living in conditions that would
make them susceptible to mosquitoes.
In 2018, it was reported that LG was planning to sell big-screen televisions that could be rolled up
and retract automatically with the push of a button come 2019.

LG OLED TV

2. Mobile Devices –

LG Electronics used to manufacture smartphones and tablet devices. Other than the G3, LG
officially unveiled the curved smartphone, G Flex, on 27 October 2013. LG released it in
South Korea in November 2013 and later announced releases in Europe, the rest of Asia
and North America. At Consumer Electronics Show in January 2014, LG announced a US
release for the G2 across several major carriers. In 2015, LG released LG G4 globally in late
May through early June. On 7 September 2016, LG unveiled the V20, and the V30 was
announced on 31 August 2017. LG G6 was officially announced during MWC 2017 on 26
February 2017. The G7 ThinQ model was announced at a 2 May 2018 media briefing. LG
officially launched the LG K42 on 21 September 2020, with great reviews. In April 2021, LG
confirmed that the smartphone division will be officially shut down in July 2021 after
months of speculation. The decision to shut down LG Mobile came about from poor sales
caused by stiff competition from rival Samsung and Chinese budget brands such as Oppo
and Xiaomi. LG became the first major smartphone brand to completely withdraw from the
market.

In April 2021, LG officially confirmed that it will shut down its mobile division. Earlier, there
had been rumours that LG considered selling its mobile division with Ving and Volkswagen
named as potential buyers.

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 3. Tablet & Laptop -

In 2014, LG announced three new additions to the G series of tablets, which have LG's Knock
Code feature, allowing users to unlock devices with a series of taps. The tablets also feature Q
Pair which allows tablets to sync up with a smartphone, with phone calls and text messages
passed on to the tablet in real time.

LG gram Ultra-Lightweight LG G Pad

4. Smart Watches –

LG and Google announced the Android Wear-based smartwatch, the LG G Watch, that was in

June 2014. In August 2014, the LG G Watch R that has a circular face (similar to the Moto 360)
was released. The LG Watch Urbane that LG's third Android Wear-based smart watch has
released in April 2015. This was the first device to support newer smartwatch features such
as Wi-Fi, and new parts of Android Wear's software interface, like the ability to draw emoji to
friends.

LG Watch Urbane LTE LG G Watch R

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 5. Home Appliances –

LG manufactures home appliances including refrigerators, washing machines, tumble

dryers, vacuum cleaners, air conditioners and microwave ovens. In June 2014, LG
Electronics announced the launch of its smart appliances with HomeChat messaging
service in South Korea. HomeChat employs LINE, the mobile messenger app from Korean
company 'Naver', to let homeowners communicate, control, monitor and share content
with LG's smart appliances. Users can send simple messages, such as "start washing cycle,"
in order to control their washing machines.

Home Appliances

LG Electronics is one of the leading companies in the field of electronics with a global presence in
many countries. Before briefing, I have divided the introduction part into three main sub parts.

1. LG Global
2. LG India
3. LG Pune

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4.4 History of company :

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators,
washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the
abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the
corporate Name change to LG, household products were sold under the Brand name of Lucky,
while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still
perceived as a discount brand.

 1958–1960s

In 1958, LG Electronics was founded as Gold Star (Hangul: 금성). It was established in the

aftermath of the Korean War to provide the rebuilding nation with domestically-
produced consumer electronics and home appliances. The start of the country's national
broadcasting that created a booming electronics market and a close relationship it quickly forged
with Hitachi helped Gold Star to produce South Korea's first radios, TVs, refrigerators, washing
machines and air conditioners. Gold Star was one of the LG groups with a brethren company, Lak-
Hui (pronounced "Lucky") Chemical Industrial Corp. which is now LG Chem and LG
Households. Gold Star merged with Lucky Chemical and LS Cable on 28 February 1995, changing
the corporate name to Lucky-Goldstar and then finally to LG Electronics.
 1970s–1990s
LG Electronics earned US$100 million in revenue from exports for the first time in its history. Rapid
growth by globalization saw the company establish its first overseas production, based in the
United States, in 1982. In 1994, Gold Star officially adopted the LG Electronics brand and a new
corporate logo. In 1995, LG Electronics acquired the US-based TV manufacturer Zenith and
absorbed it four years later. Also in that year, LG Electronics made the world's first  CDMA digital
mobile handsets and supplied Ameritech and GTE in the US, the LGC-330W digital cellular phone.
The company was also awarded UL certification in the US. In 1998, LG developed the world's first
60-inch plasma TV and established a joint venture in 1999 with Philips – LG Philips LCD – which
now goes by the name LG Display. In 1999, LG Semiconductor merged with Hynix.
 2000s–present
In order to create a holding company, the former LG Electronics was split off in 2002, with the
"new" LG Electronics being spun off and the "old" LG Electronics changing its name to LG EI. It was
then merged with and into LG CI in 2003 (the legal successor of the former LG Chem), so the
company that started as Gold Star does not currently exist.

4.5 Global Operation :

LG Electronics is playing an active role in the world market with its assertive global business policy.
As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive
and employees.

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 LG Group –

LG Philips LCD
LG Chemical
LG Telecom
LG Powercom
LG Twins
LG Dacom

4.6 Business Areas and Main Products –

1. Mobile communications :

(a) CDMA Handsets,

(b) GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones

2. Digital appliance :

(a) Air Conditioners,

(b) Refrigerators,
(c) Microwave Ovens,
(d) Washing Machines,
(e) Vacuum Cleaners,
(f) Home Net,
(g) Compressors for Air Conditioners and Refrigerators

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 3. Digital display :

(a) Plasma TVs,

(b) LCD TVs,
(c) Micro Display Panel TVs,
(d) Monitors,
(e) PDP Modules,
(f) OLED Panels,
(g) USB Memory,
(h) Flat Panel Computer Monitors

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