Product Overview:

PN SYSTEM Refrigerator:
The PN System comprises the F.I.R. lamp, the Moisture controller and the Deodorizer. The
three work together to counter factors that cause unpleasant odors, degeneration and staleness
of food. Thus, maintaining the natural flavour, freshness and nutritive value of food. That'’
why PN System refrigerators not only cool, but also keep food fresh and nutritious…. day
after day after day.
Features:
- F.I.R. Lamp: Light emitted from a special ceramic lamp strengthens water molecule
oscillation at its natural frequency through resonance effect, slowing down protein
degeneration by enzymes, keeping freshness and taste for much longer periods.
- Active Carbon Filter: Effectively absorbs unpleasant odors from onions, stale milk, etc.
- Moisture Controller: Maintains the humidity at an ideal level, keeping fruits and
vegetables fresh and nutritious longer.
- Environment Friendly: LG has converted its entire 300 lt. frost-free range to CFC free
compressors. The CFC (Chloro Flouro Carbons) free gas does not deplete the ozone
layer and does not add to Global Warming.
- C.A. (Controlled Atmosphere) Circuit: The atmosphere inside the refrigerator is
controlled to maintain natural freshness longer. Palladium (Pd) catalyst and honeycomb
carbon filter resolve ethylene gas, which spoils food and deodorizes unpleasant odors.
- Z-Deodorizer: A catalytic filter completely disintegrates and deodorizes unpleasant odors
from fish and meat.
PN SYSTEM with Express Cool Refrigerator:
The Express Cool Refrigerator cools much faster than any other refrigerator in its class.
Whenever a new item is placed in the refrigerator, the microcomputer controlled airflow
system concentrates the cold air to the level at which the new item has been placed. This
ensures faster and more efficient cooling of foods.
Features:
- Focussed Cooling System (FCS): When a new item is placed anywhere in the refrigerator,
a built-in neuro fuzzy control system detects the item, and chills it instantly by
concentrating cool air at it. This innovative ‘Focused Cooling System’ can concentrate
cold air and chill individual shelves. It is the best and most efficient cooling system for
refrigerators.
- Super Cooling System: When you want to cool lots of food in a short time ( for a party
for instance), the super cooling system’s Hi-Speed Fan will let out cool air much faster
and more powerfully.

TARGET AUDIENCE:

TARGET MARKET APPROACH: there can be two types of market approaches:

 Market Segmentation Approach
 Mass marketing Approach
Market segmentation approach is the most preferred approach as it gives a clear idea to create
a specific tuned product and in deciding the pricing for the specific segment.

IDENTIFING THE SEGMENT

Market segmentation can be done on the basis of :
 Geographic
 Demographics
 Behavioural

A. Geographic Segmentation:
Region: all metro cities and suburbs.

B. Demographics:
Family size: 1-2, 3-4, 5+
Gender: male, female.
Income: 3, 00, 000Rs and above.

Social class: working class, middle class and upper middle class.
Psychographic: Lifestyle: culture oriented, health oriented.

C. Behavioural:
Occasions: festivals and regular occasions.
Benefits: quality, service.
Loyalty status: none, medium, strong, absolute.
Readiness stage: unaware, aware, interested, desirous, intending to buy.

MARKETING OBJECTIVES:

 Servicing the health conscious segment by fulfilling their needs by providing the right
product.
 To maintain its competitive edge over the competitors.
 Increasing its share in the market by catering to new market segments.
 Product-quality leadership

Advertising budget:
LG does the budgeting of its advertising on the basis of %age of sales method. LG
considers promotion cost, price of the product and profit per unit while fixing the budget for
promotion.

RESEARCH METHODS:

Secondary Research Method:

 Journals.
 News paper articles and other articles.
 Text Books.
 Internet

Marketing Communication Mix Tools and Techniques:

The 4 Ps of marketing are product, price, place and promotion. All four of these elements
combine to make a successful marketing strategy. Promotion looks to communicate the
company’s message across to the consumer. The four main tools of promotion are
advertising, sales promotion, public relation and direct marketing.

1. Advertising:

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor. The function of advertising is to create awareness amongst
the target audience, to ensure correct comprehension of the message and move the prospects
close to conviction, and finally to buying action. Advertising campaigns moves the target
audience from the stage of unawareness to the stage of purchase or consumption of products.
Advertising helps marketing in market segmentation. Consumer behaviour is the most
significant factor in advertising decision making and developing marketing programs.
Market segmentation isolates the groups of consumers with similar attitudes about the
purchase and usage of a particular brand or product class. Advertising communication is a
triangle comprising of advertiser, audience and media.

Advertising is an integrated element with the rest of the marketing plan. It is a part of the
total marketing mix and has a supportive relationship with its various components. The
advertising needed to be coordinated with other parts of the marketing program like, personal
selling, product planning, brand policy, packaging, price, distribution and merchandising. All
marketing decisions taken at the marketing planning stage affect the communication strategy
and the advertising program.

The main objectives behind the advertising program are the following:
 Increased brand awareness.
 Improved brand opinion.
 An attitudinal change regarding the company’s products and services.
 Motivation of actual purchase.
 Financial gains like increase in profits and sales.
The types of advertising done by LG from the point of view of advertising
objectives are the following:
 Informative advertising – It is done heavily in the pioneering stage of a product category,
where the objective is to build primary demand.
 Persuasive advertising – It is done in the competitive stage. LG is doing this to build
selective demand for a particular brand. In this process LG compare its products with
existing products of the competitors and show advantages of its products over the
competitors.
 Reminder advertising – It is done by LG for the products which has gone in the maturity
stage of their product life cycle.

Brand Image:
The brand image grows out of brand positioning. These are clusters of intangible attributes
attached with the brand. The positioning of Golden Eye brands are that of high quality
premium brands. Advertising’s primary job is to give an identity to the brand and make it
individualised. Advertising invests a brand with a set of associations, favourable connotations
or positive psychological overtones. The brand personality of Golden Eye is premium brand.
This type of brand personality has been created due to vigorous product launches done by
LG. LG associates its products with sports and promotes them with sponsorship of
tournaments like FIFA World Cup for Football, in France and World Cup Cricket, in
England.

Ad Agency
LG’s advertising accounts are handled by Ammaratis Puris Lintas, in India. Ammaratis Puris
Lintas handles has innovative techniques for creating advertisement, which can easily
communicate with the target audience. It has techniques like Lintas Pulse. Which transforms
consumer information into consumer insight; Lintas Mediography which helps in
understanding how specific media fit into the communication process with the target
audience; Lintas Pictography, which helps in identifying the target audience; Lintas Selling
Strategy, helps in transforming consumer insight into effective advertising and it focussed on
generating ideas of commercial values for the client. It bridges the gap between the clients
marketing strategy and creative development; Lintas Adworks, it measures the effectiveness
of advertising and evaluate the investment return.

Types of Advertising done by LG:

Product Advertising: The main objective of LG is to create a clear cut brand image and
positioning the products according to its image. LG does three types of product advertising.
 Pioneer advertising: - It is done to stimulate the primary demand of the product category
rather than a specific brand. Here the product category is first introduced. It is executive
in intent. It appeals to consumer emotions as well as to his rational motives. This type of
advertising is done in the introductory stage of product life cycle.
 Competitive advertising: - It stimulates the selective demand of a specific brand. It is
done for the products which have reached the growth or maturity stage of product life
cycle.

 Retentive advertising: - It reminds the buyer of the product to sustain his brand loyalty. It
is a soft-sell approach where the buyer is judged to continue the usage of the product.

Corporate Advertising: LG presents its own story to build up an image of itself in the public
mind. It shows the social contributions made by the LG. It emphasis its socially oriented
policies and lay stress on the mission of the organisation and its philosophy. The ad copy is
directed towards a potential market or interest group like employees, shareholders,
government etc. This type of advertising tries to promote friendliness among the public.

Media Selection: -
It involves finding the most cost-effective media to deliver the desired number of exposures
to the target audience. Before selecting a media the company evaluates the reach, frequency
and impact which the media is going to provide. It also considers the target audience media
habits the type of product, the message of the advertisement and cost of media while selecting
a particular media.

Media Plan: -
LG while making the media plan does the following activities.
 It collects information about the people to be reached through advertising. This
information consists of psychographic and demographic profile of the target audience.
 It decides upon the nature of the message to be conveyed to the target market.
 The company then search for an ideal match of the audience characteristics of media with
the target market profile. It also checks for the adaptability of the message with the
media.
 The company then ponder upon the reach or coverage which the selected media can
provide. Reach is expressed in terms of the number of households reached by a given
medium over a period of time.

Media Strategy:
LG’s media strategy is to communicate with the target audience effectively at a lowest
possible cost while developing the media strategy. The company evaluates the following
factors.
 Media Mix
 Geographical allocation
 Media scheduling

2. Sales and Promotion

 LG since its inception has believed in “No Schemes, no Scheming”.

It is only once in a while that the company comes up with promotional schemes. For
consumers, it has schemes like 10% off on pre- peak purchases and low finance schemes.
For dealers, the company gives them good margins based on sales, sending them to Korea
etc. Some of the recent schemes that LG has come up with:

 Lucky draws on purchase of every LG product, to a lucky customer, he’ll get a free
trip to Singapore for 4 days.

 “Save up to Rs. 1000 on LG Microwave” LG microwaves available at introductory

prices till 16th Aug 2006.

According to the stages of the product life cycle, LG is in the growth stage considering
the company’s success over the past 3 years.

 Sales promotion means “making special efforts to make sales, to bridge the gap
between advertising and sales, assisting media advertising and personal selling to
clinch the sale.” Sales promotion is useful as a tool of promotion because of its three
distinctive characteristics, which are communication, incentive and invitation. LG
uses sales promotion tools to create a stronger and quicker response. It uses sales
promotion to dramatise services offer and to boost sagging sales.

 LG's " Born To Win" Contest:

 LG Home Package Offer.
 Free Holiday Package for Two to Switzerland
 LG Anniversary Offers
 Loyalty Program
 Trade Fair
 LG IS Duniya Ke Sitare
 LG New Heroes
 Catalogues
 Demonstrations to Key People
 Demonstrations to General Public
 Gifts
  LG THE OFFICIAL SPONSORSHIP OF THE WORLD CUP

World Cup. The once - in - four years cricket Carnival

Cricket is one of the most elegant games known to man. It is a game that found favour with
the elite in the Indian subcontinent to start with and then slowly percolated downwards to the
masses. The first Cricket World Cup was organized in 1975 in England and has been held
every four years, since then. However, the love story of the Indian masses with one-day
cricket began on that historic day, in 1983, when the Indian team, under the leadership of
Kapil Dev, beat the West Indies, to lift the Prudential World Cup. India has dreamt of a
repeat of that Victory and treated every World Cup ever since with reverence. It has now
reached a level of being the single passion that binds the entire nation.

ADVERTISING STRATEGY:
Championing the cause of a cricket crazy nation
All ads for LG products released during the World Cup were planned keeping in mind that
they were to be addressed to the lady of the house whose primary concern, amidst the cricket
fever, was the well being of her family. With this thought, a press campaign was developed
continuing to highlight product benefits to the consumer, as was the past trend. However,
this time it was in the woman's language. LG developed a series of 5 ads and a total of 22
TV commercials that were released during the World Cup.
LG 'All the Best' song. On a winning note.
"ALL THE BEST" SONG
Dekho manzil tumhari
Rang odhe sunehri
Saamne hai tumhare
Aaj tumko pukare
All the best, All the best
LG ki dua, All the best
Rukh Samay ka badal ke
Leaao tum phir se
Pal sunehre vo apne
Kar do poore vo sapne
All the best, All the best
LG ki dua, All the best

3. PUBLIC RELATIONS

The company takes care of the PR activities on its own mostly for press releases etc. The
officials at LG are very media friendly hence 90% of the media comes to the company
itself. LG stands as the no.1 PR Company in the industry. The company organizes press
conferences very often to keep the media updated on its activities.

4. Social Media Marketing:

Marketing done by LG specifically for the product refrigerator is discussed below.

Facebook
LG remains very active on its Facebook platform. They generally post every day or
sometimes twice a day.

They post more regress during seasonal and festive season. Example- Holi, Diwali with
exciting offers.

You Tube:

The brand uses You Tube to post official commercials, behind the scenes content, videos
specifying details about the product and other videos related to product. It has 333k
subscribers as of 25 October,2019.
Instagram:

As on 25 October,2019 LG has made 856 post and there are 25.6k followers.

Measuring Ad Effectiveness: -
The ultimate criterion of ad effectiveness is increased sales. Favourable consumer responses
are employed as measurement of ad effectiveness. The effectiveness of an ad is evaluated on
the basis of message of the ad, the media that carries the ad and the media scheduling. Ad
effectiveness also depends on the ad budget.
LG measures the effectiveness of an ad before as well as after the commencement of the ad.
It does the pre-testing as well as the post testing of its ads. In the pre-testing it evaluates
media, message, market, budgeting and scheduling. In the post-testing it evaluates media,
message, market and the change in brand awareness level and increase in sales and
profitability.

Data Analysis and Findings:

Table 1 : Gender Classification of Respondents

PERCENTAGE
GENDER RESPONDENTS

Male 136 68%

Female 64 32%
TOTAL
200 100%

Gender Classification

136

140

120

100

64
80
Respondent s

60

40

20

0
Male Female

se x

ANALYSIS:

 Out of 200 respondents, 64 are male and 136 are female.

Table 3 : Source of Information

SOURCES RESPONDENTS PERCENTAGE

Advertisement 158 79%

Family member 14 7%

Friend/relative/neighbor 28 14%

Other source 0

TOTAL 200 100%

Sources of Information

158

160

140

120

100

80 Respondents

60

40 28

14
20
0

0
Advertisements Family Members Friends/Relatives/Neighbours Others Sources
Sources

ANALYSIS:

 Most of the respondents(79%) come to know about LG by the Advertisement.

 Second largest source of information are relatives/friends/ neighbors.

 Third information souce are family members.

Table 2 : Users /Non user Of LG’ Products

CATEGORY RESPONDENTS PERCENTAGE

User 44 22%

Non User 156 78%

TOTAL 200 100%

Users of LG'S Home Products

156

160

140

120

100

Respondents
80
44
60

40

20

0
Users Non-Users
Category

ANALYSIS:

 22% (44 respondents) are user of LG’s products.

 Rest 78% (156 respondents) are non user of LG’s products.

Table 4 : Most Influencing Features of Ads

FEATURE RESPONDENTS PERCENTAGE

Message/concept 12 6%
Logo/slogan 36 18%

Picturisation 28 14%

Overall 124 62%

TOTAL 200 100%

ANALYSIS:

 124 respondents thinks overall Ad is influencing them.

 36 respondents thinks, Logo/Slogan is the second largest influencing feature in the

Ad.

 28 respondents are influenced by Picturisation of the Ad and

 12 respondents are influenced by the message of the Ad.

Table 5 : Awareness of LG’ Ads

CATEGORY RESPONDENTS PERCENTAGE

Aware 184 92%

Non aware 16 8%
TOTAL
200 100%

Aw areness of LG's Ads

184

200

180

160

140

120

Respondent s
100

80

60
16
40

20

0
Aware Non-Aware

C a t e gor y

ANALYSIS:

 184 respondents have seen the LG’s ad.

 While rest of the respondents have never seen/ not remembered at the time of survey.

Table 6 : Recall of LG

RECALL FACTORE RESPONDENTS PERCENTAGE

Logo/slogan 44 22%

Message 74 37%

Presentation of ad 70 35%

Model/celebrity 12 6%
TOTAL
200 100%

ANALYSIS:

 44 respondents have respond that It is easy to remember LG logo/Slogan.

 On the part of Message there are 74 respondents in favoring.

 The presentation of ad suits more to 70 respondents.

 While rest of the respondents remembered the Model/Celebrity.

Table 7 : Impact of LG’s Ad

CATEGORY RESPONDENTS PERCENTAGE

Impressive 36 18%

Satisfaction 112 56%

Unsatisfactory 52 26%

TOTAL 200 100%

 Im pacts of LG's Ad

120
112

100

80

60 Respondent s
52

40 36

20

0
Impressive Sat isf act ory Unsat isf act ory

C a t e gor y

ANALYSIS:

 36 respondents think that the LG’s ads are impressive.

 112 respondents favor it as satisfactory.

 While rest of respondents(52) are unsatisfied with LG ad strategy.

Table 8 : Effective Media to Giving an Ad

SOURCE OF MEDIA RESPONDENTS PERCENTAGE

Television 134 67%

Radio 30 15%

Newspaper 16 8%

magazine 18 9%
Banner/hoarding 2 1%

TOTAL
200 100%

ANALYSIS:

 134 respondents seek that TV is the best medium to go through Ad.

 While in against of it 30 are favoring Radio.

 Newspaper also has 16 respondents in their favor.

 Rest of the respondents favor to Magazine(18) and Banner/Hoarding(2).

Table 9 : Perception about LG

CATEGORY RESPONDENTS PERCENTAGE

Economical 0 -

Costly 64 32%

Neither economical nor costly 136 68%

TOTAL 200 100%

Percerption about LG

136

140

120

100

80 64

Respondent s
60

40

20
0

0
Economical Cost ly Neit her Economical nor Cost ly

C a t e gor y

ANALYSIS:

 64 of the respondents seek that the LG Product is Costly.

 While 136 of the respondents seek it as Mid ranged product.

 Most surprisingly, none of the respondents seek it as Economical product.

Competitors

Sony

Product analysis

Sony is among the leading electronics brands in the world. Sony has always introduced
products with high quality and most innovative but user-friendly technology. Now Sony has
introduced a range of refrigerators. Sony refrigerators are a class apart from others. They are
designed with most advanced technology which makes them unique. Sony has always
believed in thing differently while designing new products. It has manufactured products
which are the blend of style, consumer's expectations and the advanced technology. The Sony
refrigerators have unique energy saving and food preservation technology.
For instance, these refrigerators will have more space because of its unique U-Vacua –
vacuum insulation panel. It results in more space, more energy efficiency, less of material
used. In contrast to conventional refrigerators, these refrigerators will be having very sleek
walls. Sony refrigerators look very sleek and stylish. The design will provide flat door
handle. To prevent the compressor from getting dust, the refrigerators will have full back
cover. Besides lending a neat look, this feature enhances the refrigerator's life and efficiency.
You can keep your refrigerator sparkling clean as the surface of this device is treated with
finger print resistant technology.
Sony refrigerators will be equipped with inverter technology which helps it perform better
and also save money in the long term. To make best use of the energy, Sony refrigerators will
be designed to work on five power levels, in contrast of common refrigerators which work on
only one power level. You can set your refrigerator to run on low power at night or at other
times when it is less used. There is automatic system which adjusts power according to the
usage. There is combination of features like inverter compressor, temperature sensor and
microprocessor technology. These refrigerators will provide best cooling at minimum power
consumption.

Refrigerators from Sony will have some features which make them adorable for their owner.
They will keep food as fresh as from the garden. There will be vitamin --safe compartment
which helps preserving vital nutrients in the fruits and vegetables. User can store fruits and
vegetable in the separate compartments according to the temperature they require maintaining
their nutrients.
Hygiene active system in these Sony refrigerators will fight odours and prevent the growth
harmful bacteria. If a consumer wants to feel proud at his decision of buying an extremely
efficient and stylish refrigerator for your home, they will so for Sony refrigerators only.

Target Markets
The following section will provide an overview of Sony’s target market and of its targeted
customers.

Target market approach

In our opinion, Sony should use a segmentation approach as their general strategy to reach
targeted customers. Although mass-marketing would create the largest potential market,
which leads to the lowest costs and results in lower prices or higher margins, we propose
segment marketing because it can create a more fine-tuned product offering and price for the
target segment. Moreover, this approach enables to select more easily the best distribution
and communication channels, and to have a clearer picture of the main competitors.1
Segmenting consumer markets Cultural distinctions, different needs and demands of
individuals, and diversities in customers’ buying behaviours require market segmentation of
companies to satisfy their customers effectively. Thereby, the market can be divided in
geographic, demographic, psychographic and behavioural segmentation variables and the
company can focus on target segments which it wants to attract.
According to Sony, there will be no segmentation on geographic factors as we know
refrigerators are required in all over country insignificant to the geographic factors.
Furthermore, there will be segmentation of consumers on the income group they belong to.

Furthermore, Sony concentrates on a strong customer loyalty status in the behavioural

segment.
Besides its popular brand and the high reputation of its products. Finally, one of the important
target segments of the Sony refrigerators involves consumers who require high technology.
The company is convinced that its consumers desire and want to get the best out of the best.

Purchasing process
Some customers make their decision which refrigerator they want to buy dependent from the
number of available companies. Not only the functionality and technology, but also the
variety of designs can be important for the decision-making process of customers. Therefore,
the company has to offer information about the refrigerators’ designs which will be available.
The primary channel for providing such information would be the official webpage.

Product - Unique selling proposition:

The Unique selling proposition for Sony refrigerators will be the lower compartment of
freezer in refrigerator, that due to different in culture. As we all know Indian people are not
bending towards ready to cook, or freezed vegetables, they like to store food in normal
condition & prepare food on daily basis, & this concept is totally different from western
countries where people need bigger freezer compartment in refrigerator.

1. 4door Refrigerators with a unique Hybrid Cooling Technology which preserve the
nutrients of your food and Triple Clean System which ensures your Hygiene. Truly a
refrigerator designed to suit your lifestyle.
2. 3 Door Refrigerator Hitachi present 3- Door Refrigerators with a unique vegetable
compartment having Humidity Control to ensure that your vegetables remain fresh for
long so that you do not have to go for veggie shopping often. Because you have better
things to do.

Marketing Strategy
The Sony refrigerators have a broad marketing strategy set by Sony. Launched with slogans
such as “LIVE SAFE” and “kitchen safe”, Sony refrigerators aims for a large Customer base.
Thereby, Sony will have to apply a different marketing strategy depending on which level of
the product-life-cycle the product currently placed in. For example, at this initial state of
introduction the most evident need is to market the refrigerator itself, to make sure that it
reaches as many customers as possible. A suitable strategy for the first year is to get the
message out about the capabilities with the refrigerator, and a suitable channel for this
message is through television advertisements

Brand Ambassador: For Sony’s refrigerator’s the best brand ambassador would be Juhi
Chawla, as she has a home maker image in the mind of Indian people.
For the second year, there is big need to start marketing the refrigerators more actively, to
make sure the owners recommend our product as much as possible. This stage is
characterized by growth and Sony needs to put a lot of effort into taking advantage of the
growth in the Refrigerator business.
Throughout both years of the product life-cycle, there is a potential growth level, which can
be boosted by getting the message out about the Sony’s refrigerators being for better health.

AIDA
By looking at the AIDA model that is suitable for the PS3, we’d expect it to look like this: A
– Attention: Presentation of Sony Refrigerators at exhibitions etc. attracts attention to home
makers. I – Interest: Demonstration of features on videos in blogs, on the Internet etc. D –
Desire: People are impressed by the features contributing to their health consciousness
creates desire to own the console to play the games. A – Action: To lead customers toward
taking action and buying the refrigerator is an essential part, but in this case Sony may lag
somehow because there are a numerous number of companies
on the market right now.
Marketing Mix – Strategy of 4 Ps
The marketing mix is a set of marketing tools a company uses to pursue its marketing
objectives in the target markets. According to McCarthy, these tools are classified in four
groups called the 4 Ps of marketing: product, price, place, and promotion.
The following chapter shows, what different marketing tools Sony uses in each group to
influence its buyers.

Product Sony’s product strategy

Product strategy is to deliver the best quality and technology. Therefore, the Sony
Refrigerator supports features such as Frost Free, 2 door bottom freezer, Refrigerant – 134a,
Twin Bio attacker, Triple Ice tray, Premium look and Design, Quiet and more reliable
Compressor etc.. Sony has to spend a lot of money in innovation and R&D to use all
resources which are included in its refrigerators. For instance, the company has to focus on
the development of bottom freezer to take advantage of the fact that this new technology is
possible with their refrigerators. Moreover, Sony’s multimedia functionality is another
characteristic to meet the needs of its customers. Furthermore, Sony holds on to its brand
value. The name Sony’s stands for quality, technology, and market leadership which could be
achieved with its previous product mix. Moreover, the name has a good reputation and is
associated with a high customer loyalty.
Additionally, the design of the refrigerators is modern and is available in three neutral colours
black, white, and silver. The sizes are available from 180 liters to 568 liters

Finally, Sony will offer a one year long warranty for its refrigerators.
Price Sony’s price strategy is adapted to its product. Due to the fact, that the Sony
refrigerators offers the best technology and a plenty of functionalities, the price for it is more
expensive as the product of its competitors. Nevertheless, Sony’s high price is a character for
its high product quality and the company has to proclaim its high price together with its high
technology.
Furthermore, Sony tries to adapt its price to the particular environment and region.
Furthermore, Sony pursues a versioning price policy. According to Shapiro and Varian, it
involves offering a product line and let users choose the version of the product most
appropriate them. Consumers can decide if they want to pay a higher price for the premium
edition with some extra features, or prefer a lower price with fewer extra features.
Additionally, Sony has to allow credits to its major retailers and to offer discounts according
to the quantity of sales.

Place One part of Sony’s place strategy is to be the last one to release its refrigerators on the
market.
Sony has pursued this strategy already with its previous products like play stations & other
products and it ensures that the product will be the product with the newest technology on the
market. Furthermore, Sony offers only a limited quantity of products at the beginning of its
rollout. This is a really powerful marketing tool, because it ensures that early adopters really
want to have the product. Following such an approach, such people stand in lines for hours in
front of shops just to get one exemplar of the new refrigerators. It is important to convince
and get early adopters, because the long-term success of a new product can be based on how
those feel about it.
A limited of products creates a passion to get one and it results in communication about the
product. Early adopters speak about the product and promote it. They write about the product
in blogs, create web-sites and connect the product to others in a way that other people will
follow.

Promotion Sony’s most important promotion tool for its refrigerators is the television
advertisements &
exhibitions. Additionally, Sony’s promotion strategy will also include sponsoring. For
instance, the TV shows like home depot, while you were out etc. Thereby, Sony’s
refrigerators will be promoted by
perimeter advertising boards and TV spots.
Implementation controls
IT systems, most importantly SCM and ERP systems can play an essential role in ensuring
that
the sales and distribution channels of the refrigerators are on track. This way, managers at
Sony
will be able to monitor the sales on a day-to-day basis, making sure that it meets expectations.

Godrej

SEGMENTATION

Demographic
Demographic segmentation is market segmentation according to age, race, religion, gender,
family size, ethnicity, income, and education. Demographics can be segmented into several
markets to help an organization target its consumers more accurately. With this type of
segmentation, an organization can categorize the needs of consumers. Godrej segments the
market on the basis of Occupation Income Family size Gender

Psychographic
Psychographic segmentation, which is sometimes called Lifestyle. This is measured by
studying the activities, interests, and opinions (AIOs) of customers. It considers how people
spend their leisure, and which external influences they are most responsive to and influenced
by. Psychographic is highly important to segmentation, because it identifies the personal
activities and targeted lifestyle the target subject endures, or the image they are attempting to
project. Mass Media has a predominant influence and effect on Psychographic segmentation.
Lifestyle products may pertain to high involvement products and purchase decisions, to
speciality or luxury products and purchase decisions. Godrej segments the market on the
basis of :-
Social class Lifestyle

Behavioural
Behavioural segmentation divides consumers into groups according to their knowledge of,
attitude towards, usage rate, response, loyalty status, and readiness stage to a product. There
is an extra connectivity with all other market related sources. Godrej segments the market on
the basis of :- Purchase occasion User status Attitude towards the product or service

Geographic
Marketers can segment according to geographic criteria - nations, states, regions, countries,
cities, neighbourhoods, or postal codes. The geo-cluster approach combines demographic
data with geographic data to create a more accurate or specific profile. Godrej segments the
market on the basis of :- Rural Semi Urban Urban

POSITIONING
Perceptual Mapping is a qualitative method for measuring consumer or organisational
perceptions – It tells us what people think about a product! • It’s great for giving a
diagrammatic overview of opinions on a product or service or organisation. It can simplify
market and organisational positions.

STRATEGIC BRANDING
The company uses the company name itself as a brand for all the products across diverse
categories which leverages the brand name and is called Umbrella Branding. There are huge
cost advantages since the investment is made only in a single brand name. The customers feel
comfortable buying a new product with a familiar brand name. Some major Strategy of
branding by Godrej are:- Revitalizes Master Brand strategy and identity for greater
synergies across business and brand portfolio Creates new Marketing and Branding
strategy geared to supporting the group’s revenue growth target of 25-30% annually
Outlines a new portfolio management strategy to maximize the value of the Godrej brand and
associated businesses Adi Godrej said “The Indian consumer now has a more demanding
and youthful mind-set. At Godrej we have always been at the helm of changing and
redefining the marketplace and this will now be reflected in a marketing and branding
strategy that accelerates profitable growth.” Jamshyd Godrej said “Consumer insight has
always been an important part of our decision-making. We now want to make our proprietary
consumer research the core of our business strategy and create a unique consumer experience
associated with Godrej.” “The revitalized corporate identity is a result of a detailed
analysis of our vast product, service and business portfolio. Using the Godrej brand as a
unifier of our businesses and people made sense because it is our most valuable asset, it
cannot be replicated and it spans all our businesses” said Tanya Dubash, Executive Director
and President, Marketing.
Godrej is an Umbrella branding, so they have got a greater advantage because good
promotion of one product will carry forward to other product also which create more brand
loyalty to its entire product amongst the people. Since Godrej product diversification in
FMCG and also in real estate apart from electronic goods it enjoys growth in all the fields
because of its expansion of businesses. Godrej has been differentiated with its competitor in
the terms of Product Differentiation:- Through its variants in product (Create your kitchen
into a dance floor) Service differentiation:- Through Godrej Smart Care. Image
differentiation:- “Ideas that make life brighter”

PRODUCT MARKET ANALYSIS

The product market analysis is basically done on four factors that are 1. Existing product –
Existing Market Here the Godrej is working over the direct cool refrigerators and to grow
with this segment it has to go with the market penetration strategy in the existing market.
They must try to sell more number of refrigerators. 2. Existing Product – New Market In
this segment Godrej has products like frost free which is yet to far from the rural market or
not so popular in the semi urban market so Godrej must for market development in those
markets 3. New Product – Existing market They still don’t have some products which the
rivalry is having and they are snatching away the market share on the basis of those products
only. So Godrej must try to manufacture refrigerators like 4 door refrigerators etc. to tap into
the market with new product. 4. New Product – New Market The Godrej has a lots of
opportunity to grow with the new technologies but till now Godrej has not some of the
products that the competitor is having so if the company thinks of the market diversification
then they can have a major share in the market through innovation and proper marketing
activity.
PORTER’S FIVE FORCE ANALYSIS
Threats of new entrants: There is huge scope of new developments innovations and strategies
that is the reason why Godrej which once used to be market leader is now no. 4 in refrigerator
sector. L.G. has gained the customers and is the winner in terms of technology and newness
Threats of substitute product or services: In this technology driven market there is a threat to
a company from the substitutes. Like the fan market is decreasing day by day due to AC’s so
the company can have threat from substitutes of refrigerators. And people in small towns and
rural areas do not consider it as a necessary product and are unaware of its utility value. Non-
availability of power. Bargaining power of customers: The buyer have a choice between the
different variants and manufacturers so bargaining power of the customers are increasing day
by day. Bargaining power of supplier:
Suppliers have not got many choices between the manufacturers as many of the competitors
have their own showrooms of retail stores. Godrej has industrial tie ups and online purchase
has not left any option to the supplier so that they can have high bargaining power.
Intensity of competitive rivalry: Competition is very high in these type of industry as the
players have to be technologically sharp and updated to perform in the market. It’s the cut
throat competition that the rivalry is giving because there is no share of all in this market. All
are fighting for the consumers.

MARKETING STRATEGY
Godrej tries to deliver excellent products and services that customers can’t forget and they
believe this will make them hunger for more and they will come back. The value pillars
mentioned above has forged a stronger connect with the 500 million Indians whose lives are
touched by ‘Godrej’ group of companies every day. To market the master brand Godrej took
the initiatives like ‘Khelo Jito Jiyo’- an exclusive TV game show where contestants
comprising 3 family pairs contend to be the one worthy pair who can win a home and
everything in it,; ‘Godrej Power play’- a consumer connect initiative which allows its
consumers to participate in the very reputed cricket league called IPL (Indian premier league)
by making their teams and win prizes while creating a lifestyle of their own using the
products in the process. And finally ‘Go jiyo’- an online 3 dimensional world. Godrej is well
aware that they have a strong and unique association in consumer’s mind. People prefer their
products because they are convinced of the advantages over other brands. The PODs is
created due to functionality of their products and services which delivers good performance.
Further Brand Godrej is difficult to attack; their marketing strategy is defensible hence
competitive POPs are established due to eliminated disadvantages.

4 P’s of marketing mix: PRODUCTS:

Frost free refrigerators, as the name implies, do not require any kind of manual defrosting. A
small element is placed inside the unit that actually melts accumulating ice. This is done
without interfering with the natural cooling cycle that is required to continuously refrigerate
food.
A direct cool model produces the necessary chill through natural convection. It’s not as
effective at keeping cold foods fresh as the frost free version. This is because the technology
of the frost free refrigerator helps to maintain a more consistent temperature, especially in the
humidity controlled fresh food bins. Frost free refrigerators also tend to scorch food with
freezer burn less often, as the build-up of ice is not as apparent, even on individual items. In
2009 Godrej designed completely different type of refrigerator for their rural consumer who
also need a cheap way to store foods, they named it Chotukool and this was priced at about
half of an entry level refrigerator. It became a portable cooling solution that solve urgent food
problem in rural India and created a new product category and serve a new customer
segment. Instead of traditional compressors, chotukool maintains a cool temperature by
installing small cooler which functions like a laptop battery conditioning fan. Its special cap
make the cold air settles down within the container to reduce heat loss and power
consumption. It is extremely portable, with forty five litres volume within a plastic body
weighing less than ten pounds.

PRICE:
Godrej has used penetration strategy to enter and sustain in the market. Penetration pricing is
a pricing strategy where the price of a product is initially set low to rapidly reach a wide
fraction of the market and initiate word of mouth. The strategy works on the expectation that
customers will switch to the new brand because of the lower price. Penetration pricing is
most commonly associated with marketing objectives of enlarging market share and
exploiting economies of scale or experience.
Godrej has targeted the rural and semi urban population of India because they see a huge
potential in these market and to establish themselves in the market they priced their product
very low. They offer refrigerators below 10,000 to 15000 with variants. They have more than
10 variants of refrigerator available for their consumers. Godrej found that only 15% of the
Indian market that purchased refrigerators, the remaining 85% didn’t because for them
refrigerator is relatively expensive. Even if they can buy one, they won’t be able to pay
electricity bills. Especially for the people who live in slum areas, a refrigerator is too big for
the house. As a result, it brought out problem of food spoilage in rural India. And this also
help them in differentiating the brand from other competitors. They also offer a wide range of
products for the upper segment of market to establish themselves among the urban population
of the country ranging upto 28,000.

PLACE: Godrej uses hub and spoke model for distribution. They even have strong ERP
system and are present across India through 50 exclusive showrooms in 18 cities and through
800 dealer outlets.
Godrej Ghar An innovative idea to answer the problems of a distribution network in rural
India. A Godrej Ghar is a multipurpose, multirole unit which will help Godrej reach the rural
consumers, connect with them, sell their products & gain market share in the process. They
are allocated to each village with a population more than 10,000 people and the location is
chosen in such a way that it is accessible to all parts of the village and the connectivity and
awareness to the place is good.

PROMOTION:
This includes all of the tools available to the marketer for marketing communication.
Promotions are done in four ways Advertising, Public relations, Personal selling and sales
promotion. Godrej has a unique way of advertising their product. For example their DVDs
advertisement is considered has funny advertising amongst the people. They advertise their
FMCG and home appliances product through outlets, through big banners in important cities,
through television and internet advertisement and they have their own company websites
through which people can get to know about all the products of Godrej and also about their
companies. Recently Godrej products are advertised on a huge basis over television. And
they are trying to position themselves as a complete home appliance company. Marketing
Strategies that Godrej adopt:- Online Advertising: Social Media Marketing Current Rage.PR
& Advertorials: To increase visibility and brand image Strategic Tie Ups: With Real Estate
Developers, IPL, Sporting Events Outdoor Advertising: Events Hosting, Banners at selective
locations for some time Television & Print Ads- Conventional Media Marketing Strategies
are used TV/Radio/Print Ads:Creates an Engagement Model around Objectives & Resources
Address Specific Customer Needs BLOG or be BLOGGED: Added blogging to the
marketing mix, make people talk about you, and believes PEOPLE trust PEOPLE. They have
emerged as a complete home solutions with all the products available in the brand and
markets under GODREJ INTERIO.
References

JOURNALS/ MAGAZINES:

 Indian Journal of Management

 Survey of Indian Industries – The Hindu (2019)

 Business Today

WEB SITES:

 Sony.com, „http://www.sony.co.in/Support/“
 http://info.shine.com/Industry-Information/Consumer-Durables/902.aspx
  www.lge.com

 www.google.com

 http://www.imcteddy.com/product/lg-grating/

 https://www.managementstudyguide.com/integrated-marketing-communication-

tools.htm

 https://www.marketing91.com/marketing-strategy-of-lg/

 https://notesmatic.com/2017/01/lg-marketing-and-branding-strategy/

 https://www.ukessays.com/essays/marketing/different-marketing-strategies-used-by-

lg-electronics-marketing-essay.php

 https://www.marketing91.com/marketing-strategy-of-godrej/

 https://www.marketing91.com/marketing-strategy-of-godrej/

 https://www.wiglafjournal.com/marketing/2012/04/lgs-brilliant-marketing-strategy/

COMPANY LITERATURE

 “LG Parivar” the LG in-house magazine.

 “Global News” LG weekly news bulletin.

NEWSPAPER:

 Economic Times

 Financial Express

 Times of India