Lg Pricing

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studyLG believes in honest pricing and not being gimmicks of discounts and price reduction as lure.  Their strength of marketing is consumer pool, good products and pricing power. * Its product designs are centred on the middle & upper class and the ads screened highlight the product features. * Its employees are totally committed to quality and innovation. They chant “TPI 50 and TDR”, which signifies, total productivity innovation and tear down re-engineering. Through this method the company is bringing down its costs & developed new products. * LG’s corporate image is that of being the Digital leader of the new millennium. *

Local and efficient manufacturing
to reduce cost

To overcome high import duties, LG manufactures
PC monitors and refrigerators in India at its
manufacturing facility at Noida, Delhi. LGEIL had
already commissioned contract manufacturing at
Mohali, Kolkata and Bhopal for CTVs. This has helped
LGEI to reduce costs.
LGEIL is implementing a “digital manufacturing system”
(DMS) as a cost-cutting innovation. This system is a
follow-up to the Six Sigma exercise LGEIL had initiated
earlier.
Product
In 1997- entering into India market.Selling imported products at high prices.

To overcome high import duties, LG manufactures PCmonitors and refrigerators in India at its manufacturingfacility at Noida

The first manufacturing plant was established in 1998 inNoida

In 1998- launching first low priced TV for rural consumers. Pricing strategy
When LG started its operations in 1997, it sold products that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese) products. Industry analysts felt that this strategy was adopted to make local consumers feel that LG products were by no means inferior to Japanese products in performance or in quality. However, in 1998, LG launched 'Sampoorna,' its first low priced TV for rural consumers, and followed it with 'Cineplus.' According to Kim, as the Indian customers wanted the best products at reasonable prices, LG started introducing quality products in the economy range.

In the first few years after its entry, LG did not get into price wars. Unlike other players, it did not offer any exchange schemes or discounts.

LG officials said that they believed in an 'honest pricing policy' and its message to customers read 'No scheme, no gimmick, great products and honest prices.In 2000- adopting new low price strategy.LG decreased prices by 5-15% relative to competitors.1.254.8510.5619.0322.1633.1545.0065.0019971998199920002001200220032004|

 
Sales are only income fore any business concern. But price is the main factor,which affects the sale of the market. If the price is high, few buyers purchase andif the price is low many buyers purchase. Therefore a sound pricing policy mustbe adopted to have maximum sale revenue. Moreover, it is only through proper pricing policy the already laid down marketing objective and corporate goalscould be achieved.Price is the exchange value of a product or service always expressed in tem of money. In other words, price of a product or service is what the seller feels itsworth on term of money, when offered to a buyer.To the customer, the price is an agreement between seller & buyer concerningwhat each is to receive. The buyer is interested in the ‘price’ of the whole‘package’ consisting of physical product plus a bundle of expectation andsatisfaction. The consumer has numerous expectations such as after saleservice, replacement of parts, technical guidance & money other benefits.However, to the seller, price is a source of revenue and a main determinant of profit. To the seller, price is equivalent to the total product offering. This offeringincludes a brand name, a package, product benefits, after sale service and soon. We can define price as the “money of the product or service agreed upon in amarket transaction”.So,Price in money = physical...
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