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Assignment 1 MKT

LG Electronics was established in 1958 as GoldStar in South Korea and later rebranded as LG Electronics in 1995. It has since grown to be a top global electronics brand, manufacturing many firsts for Korea such as radios, TVs, fridges and more. LG has acquired other companies like Zenith and set up subsidiaries or joint ventures for areas like LCD, solar, and more. However, it was also fined by the EU for fixing TV prices. To strengthen its position, recommendations include penetrating markets through competitive pricing, increasing R&D investment, and strategic partnerships.

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91 views

Assignment 1 MKT

LG Electronics was established in 1958 as GoldStar in South Korea and later rebranded as LG Electronics in 1995. It has since grown to be a top global electronics brand, manufacturing many firsts for Korea such as radios, TVs, fridges and more. LG has acquired other companies like Zenith and set up subsidiaries or joint ventures for areas like LCD, solar, and more. However, it was also fined by the EU for fixing TV prices. To strengthen its position, recommendations include penetrating markets through competitive pricing, increasing R&D investment, and strategic partnerships.

Uploaded by

Muhd fitri hafiz Azhar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

LG Electronics was established as GoldStar in 1958. The company was the result of the union of two
Korean companies, Lak-Hui and GoldStar, in which the acronym of LG was obtained and the motto
"Life's Good" is a backronym (LG Electronics, 2020). Different types of products were sold separately
according to the brand's name before the corporate name change to LG. For example, house
products were sold beneath the Lucky brand, while electronic products were sold beneath the
Goldstar brand.LG Electronics successfully manufacture first-ever Korea's radios, Television, fridge,
and clothes washers. GoldStar gained sponsorship from The 3DO Company in 1994 to develop the
3DO Interactive Multiplayer.

In 1995, GoldStar was rebrand into LG Electronics and obtained the Zenith company. In 1997, LG
Electronics manage to manufacture CDMA digital mobile handsets and provide them to GTE and
Ameritech. After accomplishes UL accreditation in the U.S in late 1998, LG manufactures 60-inch
plasma TV, the first of its type. In 1999, LG set up LG Philips LCD with Philips. By 2005, LG was a Top
100 global brand, and in 2006, LG recorded a brand development of 14%. Its showed producer
affiliate, LG Display, is currently the world's biggest plasma board producer(LG Electronics, 2020). LG
Solar Energy is a subsidiary formed in 2007 to give the permit to LG Chem to supply polysilicon to LG
Electronics for the manufacture of sunlight based cells.

On December 5, 2012, the antitrust controllers of the European Union fined LG Electronics and a few
other big organizations at fixing costs of TV cathode-beam tubes in two cartels enduring almost 10
years. In January 2009 LG had purchased the domain name LG.com for low six figures USD. LG took
the starting dive in 2008 into the solar panel manufacturing pool, as it declared a primer
arrangement to shape a joint venture with Conergy(LG Electronics, 2020). Under the arrangement,
set to be finished by the end of the year, LG would obtain a 75 percent stake in Conergy's Frankfurt
solar panel plant. LG has manufacture camcorders called ARTCAM and DSLRs.
Recommendations

1. LG Electronics must penetrate the market to the market by giving a lower price than their
recognized competitors and promotion for every product that they manufacture. For
example, Samsung also manufactures household products and both companies originated
from the same country, and comparison likely can occur among consumers making it can
disrupt growth in price-sensitive markets due to the Price wars(Team, 2020).

2. LG Electronics must develop their product by investing more capital and commitment in
research and development of their product to keep on track in highly competitive industry
dynamics(Bhasin, 2020). LG Electronics also must adapt to the changes in technology to
make their product acceptable to society and being relevant in the industry for such a long
time.

3. LG Electronics must establish a strategic partnership with many world’s leading companies
that have a good fundamental portfolio(Bhasin, 2020). The collaboration will make LG
Electronics acknowledge the technological advances of other companies and also identifying
business opportunities for future and present benefits.

Conclusion

Segmentation, Targeting, and Positioning are the foundation of marketing. In market segmentation,
a marketing plan will divide its target population into a separate group according to a set of a certain
standard and develop services or products that are specifically suitable to this specific standard and
group. The efficiency of delivering the true value to the specific segments will increase as the market
segmentation is done right. The brand equity also plays a crucial part in the Segmentation, Targeting,
and Positioning of the product as it influences the minds and decision of the customer.

Referrences

1. LG Electronics. (2020). Retrieved 15 December 2020, from


https://www.companieshistory.com/lg-electronics/

2. Team, M. (2020). LG Electronics SWOT Analysis | Top LG Electronics Competitors, STP & USP
| Detailed SWOT Analysis of Brands | MBA Skool-Study.Learn.Share. Retrieved 15 December
2020, from https://www.mbaskool.com/brandguide/consumer-electronics/5385-lg-
electronics.html

3. Bhasin, H. (2020). SWOT analysis of LG - LG SWOT analysis & Internal analysis. Retrieved 15
December 2020, from https://www.marketing91.com/swot-analysis-of-lg/

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