1. MARKETING STRATEGIES OF ANSHUMANDUTTA
RollNo.215111070,SUCCESSFUL MNCS IN 1yr MBA, 2011-13 INDIA An
Analysis of the Pioneers
2. ContentsIntroduction1Marketing Strategy....2Nokia...3Procter
and
Gamble...4Samsung......9Hyundai...13LG16Conclusion...17References...18
1
3. INTRODUCTIONWith developed world markets becoming
increasingly saturated,multinational corporations(MNCs) have turned
to emerging economies such as India, Indonesia, Brazil, China,
andMexico,as key locations for future growth. In their efforts to
enter these markets of the future,most MNCs have focused on the
wealthy with products and business models similar to thoseused in
the developed world (Arnold and Quelch, 1998;Prahalad and
Lieberthal, 1998).Low-income markets in emerging economies present
both tremendous opportunities andunique challenges. There can be
little doubt that the four billion customers in these
base-of-thepyramid markets represent a vast potentiallyuntapped
market opportunity. Dawar and Chattopadhyay (2002) observed, it
makes little sense for MNCs to think in terms of distinct country
strategies (e.g., China strategy) in the context of Emerging
Markets. Instead, it might be more appropriate to develop separate
strategies for wealthy, rising middle class, and poor customers
across country markets (Hart and Milstein, 1999).The majority of
the MNCs investing in India about 53 percent are focused on
asingleactivity or product, while another 35 percent are
diversified into relatedbusiness sectors.Thissuggests that only
MNCs with clear business focusenter India, possibly with a
well-definedbusiness strategy, whether seeking resources or
markets. Economic development at the base of the economic pyramid
may not follow familiar patterns found in the developed world
(Arnold and Quelch, 1998; Hammond, 1998). As the Nobel prize
winning economist Joseph Stiglitz suggests, the failure of the
worlds global financial institutions in their efforts to facilitate
economic development that is more inclusive demonstrates the
dangers of relying on traditional players and their limited views
of what is appropriate and effective (Stiglitz, 2002).The eight
resources deemed most important for success by the MNC affiliates
arebrand,business network, distribution network, equity, machinery
and equipment,managerialcapability, marketing capability and
technological know-how.Importantly, most of these areintangible
resources. 2
4. MARKETING STRATEGY FRAMEWORKSource: Booz-Allen &
Hamilton1THE SUCESSFUL MNCs IN INDIA AND THEIR MARKETINGSTARATEGY
ARE:- (1) NOKIA (2) POCTER AND GAMBLE (3) SAMSUNG (4) HYUNDAI (5)
LG 3
5. NOKIA-Nokia is one of the largest mobile phone manufacturers
in the world. While it is in a verystrong leadership position right
now, the future of the company is in balance as the
industrymatures.Headquartered in Finland, Nokias business is
divided into four divisions: Nokia Mobile Phones Nokia Networks
Nokia Ventures Organizations Nokia Research CentreNokia brand is an
asset that has been carefully cultivated over the years, throughout
whichthe company has managed to predict and satisfy consumers needs
and preferences ahead thecompetition.In 1989, Matti Alahuhta
developed a new strategy for Nokia that focused on three key
points: The development of a product with global appeal, Nimble
movement to sell it internationally, Most importantly, a commitment
to learning what consumers want, without consideration of the
limits of existing technology In the highly competitive $3 billion
mobile phone market in India, Nokia has managed to make its brand
the phone of choice for millions. It currently has a market share
of over 70 per cent.The Marketing Strategy of Nokia [15] 4
6. MARKETING STRATEGIES By 1990, Nokia identified some of the
features that eventually establish it as the leader in setting
industry benchmarks. The Nokia 2110 launched that year, gained
popularity with a large screen, elegant design, and a clean user
interface. During the early 1990s, Frank Nuovo, head of Nokias
worldwide design team, led Nokia to design phones that offered
customizable rings, elliptical designs, and custom faceplates.
Although such features may appear trivial or obvious in hindsight,
Nokia continued to gain market share by paying attention to the
details that worked to enhance ease of use and customizable
preferences. The insight that the handset could be a stylish
fashion accessory, rather than merely a communication tool, allowed
Nokia to lead the trends and direction of the entire handset
industry. In addition to a superior design effort, Nokia assembled
a diverse team to research how consumers can use its phones. The
team consisted of engineers, graphic designers, sociologists,
psychologists, and even a theatre director. While theyve designed
similar, easily recognized handsets, Nokia has successfully
segmented the market to target specific demographic groups. For
example, in the year 2000, different phones were marketed to appeal
to the rugged user, the sophisticated user, and the youth market,
among others. With all these product innovations, designed to
satisfy customer preferences, Nokia has reinforced its brand image
of providing cutting-edge communications technology. Analysts have
positively characterized the company by describing it as young,
sexy, sophisticated, hip and generally with it. 8 Alternatively,
theyve compared Ericsson as an austere, conservative, middle-aged
Swedish engineer, which supports the widely held belief that
Ericssons handsetshare unfashionable. Since Motorola lethargically
moved from analog to digital phones, Nokia was able to overtake
them as the leader in the handset. Subsequently, Nokia leveraged
its superior marketing strategies and powerful brand to avoid the
price wars that have afflicted its key competitors. Nokia embarked
on direct-to-consumer advertising, including sponsorships and
product placements. Nokias handsetspositioned as stylish and
cutting edge, customers will continue to pay for the perceivedadded
value of the brand. It also has strategically placed its products
in movies such as The Matrix. The youth market, the handset should
add services with an emphasis on entertainment. For instance, MP3
players, short message services, chatting, and mobile gaming are
some promising examples. Also for the youth market, careful
attention should be paid to the design of the handset. Teenagers
and young adults simply wont buy if the new handset does not look
cool or hip. 5
7. For professional users, Nokia should provide the ability to
remotely access their data and files through the handset.
Calendars, conference schedules, e-mails, PowerPoint presentations,
spreadsheet, and word processing documents should be obtained with
the touch of a button, at least in the corporate site, if not
nationally. Due to the limited memory capacity available to
handsets, Nokia should also provide the means to transfer
information from the handset to a computer or PDA. Professional
users are known to pay premium prices for convenience.FLOW CHART OF
NOKIAs MODEL FOR MARKET PENETRATION[15]With mobile handset
penetrating through the mass market, it is becoming
increasinglydifficult for handset makers to sell additional mobile
phones and sustain growth. This is Our firm opinion continues to be
that the replacement will continue to grow and the share of
replacements in the total market will grow, MattiAlahuhta,
president of Nokias mobile phone division.especially true for a
market leader like Nokia. Nokia has fully recognized the potential
of thereplacement market. 6
8. POCTER AND GAMBLE-P&G ranks #39 in the list of Fortune
500 companies [4], before its main competitor Johnson &Johnson
(#57) and Kimberly-Clark (#142). P&G also outperforms Unilever
and Nestle, thecompanys main competitors overseas.The P&G
business dates back to the mid-1800s when it began as a soap and
candle-makingcompany. The company started sponsoring radio programs
which became known as soapoperas in the 1930s when radio was
emerging a popular medium. The brand continued toproduce soap
operas in the television era, including the now-defunct As the
World Turns.OperationsAs of July 1, 2011, the companys operations
are categorized into two "Global BusinessUnits" with each Global
Business Unit divided into "Business Segments" according to
thecompanys 2011 Annual Report. Dimitri Panayotopoulos is Vice
Chairman of GlobalBusiness Units [2]. CEO Bob McDonald. Beauty
segment Grooming segment Health Care segment Snacks & Pet Care
segment Fabric Care & Home Care segment Baby Care & Family
Home Care segmentThis is the second largest FMCG Company in India
which does not lag much behind than thetopper Unilever. The company
has two subsidiaries in India- P&G Home Products and
P&GHygiene and Health Care Ltd. It is the fastest growing Fast
Moving Consumer GoodsCompany of IndiaProcter & Gamble[5]
(P&G) is the biggest maker of household products, with at least
250brands in six main categories: laundry and cleaning
(detergents), paper goods (toilet paper),beauty care (cosmetics,
shampoos), food and beverages (coffee, snacks), feminine
care(sanitary towels) and health care (toothpaste, medicine). Two
dozen of P&Gs brands in Indiaare billion-dollar sellers,
including Febreze, Fusion, Always, Braun, Bounty, Charmin,
Crest,Downy, Gillette, Mach3, Iams, Olay, Pampers, Pantene, Tide,
Gain, and Wella, amongothers. P&G purged its coffee in 2008 and
its selling Pringles.Being the acquisitive type, with Clairol and
Wella as notable conquests. P&Gs biggest buy incompany history
was Gillette in 2005. 7
9. P&Gs famous brands include Ariel, Pantene, Head &
Shoulders, Fabreze, Sunny Delight,and Oil of Olaz. About half of
P&Gs sales come from its top ten brands.P&G also makes pet
food and PUR water filters and produces the soap operas Guiding
Lightand As the World Turns. Finally, P&G produces chemicals.
Today, P&G markets its productsto more than five billion
consumers in 130 countries.The company has on-the-ground operations
in over 70 countries around the world, andemploys more than 129,000
people.For fiscal year ending June, 2011Sales: $82,559.0M,One year
growth: 4.6%,Net income: $11,797.0M, Income growth: (7.4%)Consumer
products manufacturer Procter & Gamble Co. is said to be ending
its 77-year runas a prominent sponsor and producer of soap operas a
genre the company helped create We continue to advertise during
daytime TV including soap operas as a way to reach consumers, a
company spokesperson tells Mashable. In our marketing approach we
build our brands based on the appropriate integrated holistic
marketing campaign that reaches the consumer when and where they
are receptive. As consumers spend more time online and via social
media networks, our brands are naturally adding these options to
their marketing plans as it helps them engage and serve
consumers.in favor of producing more campaigns using social
media.The switch from soap operas[8] to social media is one
motivated by its success with previoussocial media campaigns such
as its Old Spice Guy YouTube promotion and a desire tocapitalize on
the more readily available opportunities of reaching women through
digitalmedia.Principal Subsidiaries Cosmopolitan Cosmetics GmbH
(Germany); The Folger Coffee Company; Giorgio Beverly Hills, Inc.;
The Iams Company; Max Factor & Co.; Noxell Corporation; Olay
Company, Inc.; P&G-Clairol, Inc.; Procter & Gamble
Pharmaceuticals, Inc.; PUR Water Purification Products, Inc.;
Tambrands Inc.; Vick International Corporation; Vidal Sassoon Co.;
Procter & Gamble Australia Proprietary Limited; Procter &
Gamble Inc. (Canada); Procter & Gamble France S.N.C.; Wella AG
(Germany); 8
10. Procter & Gamble India Holdings, Inc.; Procter &
Gamble Italia, S.p.A. (Italy); Procter & Gamble Nederland B.V.
(Netherlands); Procter & Gamble Switzerland SARL; Procter &
Gamble Limited (U.K.); Thomas Hedley & Co. Limited (U.K.);
Yardley of London Ltd. (U.K.).Marketing Insights P&G is one of
the worlds biggest advertisers [7]. Advertising Age estimate a 1999
media spend of $4.7bn [3,3bn], of which around $3bn [3,253bn] was
outside the US, making it the worlds #2 advertiser. The company
last year has spent nearly $9 billion per year to advertise its
products. The company is finding social media sites such as
Twitter, Facebook and YouTube to be more effective channels for
reaching women and has spent much of 2010 experimenting with
campaigns in these arenas. Procter & Gamble India is one of the
countrys leading advertisers, with a comparatively small portfolio
of products led by Indias best-selling healthcare brand, Vicks
(1951). Gillettes Himalaya team, a global group based partly in
Boston but focused on India, is already charged up. In India, about
half of mens shaves are done in barbershops where barbers break
double-sided blades in two and use them repeatedly. The teams
razor-and-blade innovation, they report, involves simplification to
the essential features to do the job, an affordable cost through
manufacturing innovations, and new way to reach lower-income
shavers. They preach health as well as grooming benefits.[3]
P&G invests heavily in innovation, outspends the competition in
R&D, and targets emerging markets with growth potential. But to
execute, P&G is redoubling emphasis on its culture and values.
Indian Ambassadors of Pocter and Gamble: Olay- Susmita Sen and
Kajol Pantene- Lara Dutta, Shilpa Shetty Head & Shoulders-
Kareena Kapoor, Preety Zinta Wishper Money Back If the experience
of the customer is not as per the perceived standards of the
customer than the money will be refunded. 9
11. SAMSUNG-[16]Advertising: -Samsung is involved in aggressive
marketing and advertising of its product to developattitudes,
create awareness, and transmit information in order to gain a
response from thetarget market.Their main advertising channels
include media such as newspapers (local, national, free,trade),
magazines and journals, television (local and national) cinema,
outdoors advertising(such as posters, bus sides).The initial
advertisements communicated presence of Samsung in worldwide
markets and itsdominance in those markets.To increase its brand
awareness, Samsung went in for celebrity endorsements. Initially,
thecompany signed Hindi film actress, Tabu, to endorse its brand.
Till 2002, Samsungs adsfocused on the technological supremacy of
its products.But by late 2002, in addition to the technology plank,
the company started advertising on theplank of passion for country
and sports (cricket and football). Its latest ambassador is
JohnAbraham for its mobile phone and Rahul Dravid for its
Television range. 10
12. Promotion:-Offering advanced technology products and
positioning itself on the technology platform willnot help a
company sell its products if it fails to communicate properly with
the potentialcustomers. To raise brand awareness and create strong,
favorable and unique brandassociations, Samsung adopted various
marketing strategies like celebrity endorsements,corporate
advertisements, highlighting its technological superior goods and
manypromotional schemes.Sales Promotion:Along with advertisements,
Samsung also focuses on promotional schemes to increase itssales.
In October 2001, Samsung launched its highly successful promotional
scheme, theSamsung Phod keDekhoOffer. This offer instantly boosted
the sales of the companygenerating sales of Rs. 2.75 bn from this
offer.The next major promotional campaign was the Phir Se Phod Ke
Dekho offer. The offer waslaunched during October-November 2002
generating a sales of Rs. 380 crores. It was a repeatof the earlier
Phod Ke Dekho campaign.On March 20, 2003 Samsung Launched Samsung
Rang De Kismat Offer for Frost FreeRefrigerators which entitled a
customer to Lucky Gifts worth Rs 4 Crores, with the purchaseof any
Samsung Frost free Refrigerator. This Promotion derives its name
from the Rang deKismat glass, which was handed over to a customer
with the purchase of any Samsung FrostFree Refrigerator.Following
its success with its Samsung Rang De Kismat Offer Samsung India
come upwith another innovative Consumer Offer Samsungs Bundling
Offer with RelianceIndiaMobile for the buyers of its Consumer
Electronics and Home Appliance Products inthe Delhi and NCR Region
on 25 July, 2003. 11
13. On 6 October 2003 Samsung India Electronics Ltd launched
its mega festival promotioncalled Samsung Pinning Toh Winning Offer
on an all India basis.Following its success with its Samsung
Pinning Toh Winning Offer Samsung IndiaElectronics Ltd launched The
$-DOLLAR Program for its IT Reseller and SystemIntegrator
fraternity on June9, 2004.The last sales promotion offer was
launched on Feb 3, 2005 called Fastest Finger Firstwhich was a
nationwide contest to find Indias fastest SMSer. The message to be
typed readsas follows: The razor-toothed piranhas of the genera
Serrasalmus and Pygocentrus are themost ferocious freshwater fish
in the world. In reality they seldom attack a human". ThisSMS had
to be typed on the cellphone keypad, complete with punctuation
marks and lower &upper case. No predictive text (T9
Dictionary), QWERTY keyboards/ any keyboard
wasallowed.Sponsorship:-Samsung used sponsorship of events like
Olympic series to boost its sales. Samsung was theglobal wireless
communications sponsors at the Athens Olympics. Samsung used the
strategyof relating itself directly with the values of the Olympic
games, which included attributes likeworld class, global,
excellence, fair competition and peace. The Olympic series of
August5,2004 was Samsungs salute to the Olympic values.Samsung was
the sponsor of Lakme India Fashion Week held on April21, 2005.
TeamSamsung cricketers - Irfan Pathan, Mohd. Kaif and Virendra
Sehwag launched the WorldsBest Handset, Samsung D500 during the
Samsung Show at the Lakme India Fashion Week.The theme for the
Samsung Show was The Best Thing Says Everything in keeping with
thepositioning of Samsung D500 - Samsungs latest and path-breaking
mobile phone which hasbeen rated as the Worlds Best Mobile phone by
the 3GSM Association World Congressheld at Cannes in February
2005.Samsung sponsored Samsung & MTV Youth Icon 2005 on June10,
2005. The idea behindthe sponsorship was that the Samsung Mobiles
were targeted at the fun loving, lifestyleoriented and trendy youth
of today. By associating with the Samsung & MTV Youth Icon,they
are seeking to further strengthen their relationship with the
youth. Samsung mobilesmake a style statement and by partnering with
the Youth Icon, this positioning is further re-inforced.Samsung was
even the sponsor of Samsung IIFA Awards held on June 13, 2005.
Popularfilm actress, Preity Zinta was awarded the Samsung Diva
award while Hrithik Roshan wasconferred the prestigious Samsung
Style Icon award at the Samsung IIFA Awards 2005.Samsung India had
carried out an online voting process on the Samsung India
websitebetween May 20th - June 5th 2005 for selecting the recipient
of the Samsung Style Icon andSamsung Diva awards.The same was also
promoted extensively on other sites like indya.com and msn.com as
well.The Company received a phenomenal response to this online
voting contest. The SamsungStyle Icon and Samsung Diva awards which
have been growing in popularity year on year,the company uses the
response level received every year as its popularity indicator.
12
14. Direct Mail:-Samsung even uses Direct Mail concept for its
product promotion. Samsung sends mail totarget consumers depending
on the database i.e. the frequency of site visit and on
theirpurchases. Samsung is very actively involved in e-
commerce.Distribution Channels:-Samsung uses supply chain to
enhance differentiation, increase sales and penetrate newmarkets
and channels. Its supply chain is beneficial in several ways. It
helps the company todeliver products to the customer faster. It
efficient supply chain is transparent, so that all theplayers in
the supply chain have the right information at the right time about
the movement ofthe products within the chain. This means lower
inventories, elimination of waste, andreductions of costs. In
addition to the intangible benefits like quick feedback from
customershelp in launching new products.Samsung has 24 state-level
distribution offices and a direct dealer interface. The direct
dealerinterface helps the company to get quick feedback from
dealers, and enables it to launchproducts according to consumer
needs.Shop-in-shop:-Samsung is ensuring a presence in most big
malls and multiplexes; even in the multi-brandoutlets, as the focus
there is to create a shop-in-shop atmosphere.The Exclusive
Showrooms:Keeping its target customer to display Samsung products
in a more lifestyle ambience and tocommunicate the product benefits
in a more interactive manner, Samsung India has set up awidespread
network of over 80 exclusive showrooms comprising Samsung Digital
Zone(focusing on high-end digital audio-video products such as MP3
players, camcorders andLCD/plasma TVs).The Samsung DigitAllhome
goes beyond the concept of a Digital Plaza or a Brand Shopbecause
in the DigitalAllhome, they are trying to create a more interactive
environment andproviding a more lifestyle orientation to the
display, so that the customer can visualize theproducts in his/her
own home settings. The Company plans to supplement its
existingSamsung Digital Plazas (Brand Shops) by setting up Samsung
DigitAllhomes in selectcities. The Company will also be creating
exclusive Samsung corners in multibrand outletsthis year.The
demands and needs within the distribution channel lead to the
establishment ofMyMemoryStore.com. The site is more than an
ordinary selling site, infact it is an industryportal that allows
the business partner to come in and track the relevant industry
informationwithin the channel, meaning minimizing the inventory
overhead.Samsung is also planning to invest over $1 million in
setting up a chain of exclusive outletscalled `Samsung Talkies. The
entire Samsung mobile range including the latest handsets willbe
displayed at the outlets, which will be set up in more than 10
cities across India, includingBangalore, Mumbai and Hyderabad.
13
15. HYUNDAIHyundai, with a name prone to mispronunciation and
virtually no global heritage, enteredIndia in 1998, it signed up
Shah Rukh Khan to educate the consumers about the brand.Behind the
scenes, the company resorted to extensive market studies and
technical campsbefore coming up with its first offering, Santro, a
hatchback with tall boy design. And it hadchosen its market well,
starting with the small car. Untill yet, Hyundai has stayed true to
itsstrategy and played by the conventional Indian market rules
tailored to suit its specifictargets.Hyundai Motor India Limited
(HMIL) is a wholly owned subsidiary of Hyundai MotorCompany, South
Korea and is the second largest and the fastest growing car
manufacturer inIndia. HMIL presently markets 20 variants of
passenger cars in six segments. The Santro andPa in the B segment,
Getz Prime in the B+ segment, the Accent and Verna in the C
segment,the Elantra in the D segment, the Sonata Embera in the E
segment and the Tucson in theSUV segment.Hyundai Motor India,
continuing its tradition of being the fastest growing passenger
carmanufacturer, registered total sales of 299,513 vehicles in
calendar year (CY) 2006, anincrease of 18.5 % over CY 2005. In the
domestic market it clocked a growth of 19.1 % ascompared to 2005,
with 186,174 units, while overseas sales grew by 17.4 %, with
exports of113,339m units.HMILs fully integrated state-of-the-art
manufacturing plant near Chennai boasts some of themost advanced
production, quality and testing capabilities in the country. In
continuation ofits investment in providing the Indian customer
global technology, HMIL is setting up itssecond plant, which will
produce an additional 300,000 units per annum, raising HMILstotal
production capacity to 600,000 units per annum by end of
2007.Hyundai, which chose to enter the Indian market, with a small
car (Santro) which offers valuefor money to the countrys price
sensitive consumers. Hyundai has also made very heavyinvestments in
manufacturing facilities. After its initial success, Hyundai has
started to widenits product range.Hyundai is one of the few MNCs to
have established meaningful volumes in India in quicktime. The
company is among the top three car manufacturers in the country and
is nowemerging as a real threat to the market leader, Maruti in
which Suzuki of Japan has a majorstake.There are many lessons to be
learnt from Hyundai. The company spent several monthscustomizing
Santro. Realising that Indian consumers attach much importance to
lifetimeownership costs, Hyundai reduced the engine output of the
Santro to keep its fuel efficiencyhigh, priced its spare parts
reasonably, and made various changes to the productspecifications
to suit Indian market conditions. 14
16. In contrast, other global automakers have entered the
market with vehicles with low gasmileage and high repair rates and
after-sales service costs. Unlike many of the global
automanufacturers in India which source only about 60 to 70 percent
of their components locally,Hyundai buys 90 percent. Hyundai has
also plans to make India a global manufacturing hubthat can serve
other countries as the local market matures. Contrast Hyundai with
players likeHonda and Ford who have been very tentative about
setting up full-fledged manufacturingfacilities.Marketing
CommunicationsBy integrating all messages in all media reinforce
the brand name is reinforced& main pointsof product
differentiation.Research about media consumption, pattern will
helped advertising agency to chooseappropriate media and timing to
reach prospects before & during the product
introduction.Thereafter, advertising appeared on a pulsing basis to
maintain brand awareness andcommunicate various differentiation
messages.The agencies will also co-ordinate public relation efforts
to build Hyundai brand & supportthe differentiation message.To
attract market attention & encourage purchasing, limited time,
registration & insurancewere offeredTo attract, retain &
motivate channel partners for a push strategy, trade sales
promotions andpersonal selling to channel partner were
used.PromotionRoad ShowsThe company plans to stage road shows, to
display vehicles in the pavilions during variouscollege festivals
and exhibition.Television advertisementsAdvertisements to promote
and market the product will be shown on leading televisionchannels.
Major music and sports channels will promote and they will reach
out to the youthwill be promoted through Star, Zee, Sony and
Doordarshan etc as it has more viewers.RadioRadio is the medium
with the widest coverage. Studies have recently shown high levels
ofexposure to radio broadcasting both within urban and rural areas,
whether or not listenersactually own a set. Many people listen to
other peoples radios or hear them in public places.So radio
announcements will be made and advertisements will be announced on
the radioabout the product features and price, qualities, etc.
15
17. Print AdsDaily advertisements in leading newspapers and
magazines will be used to promote theproduct. Leaflets at the
initial stage will be distributed at railway stations, malls,
college areasand various other locations.Workshops and
SeminarsWorkshops and seminars were held in colleges and big
corporate to make people aware aboutthe companies past performance
and product features, its affordability and usage, vastdistribution
network. Road shows will be conducted where free trials of the car
would begiven.Banners, neon signsHoardings, banners, neon signs
were displayed at clubs, discs, outside theatres and shops
topromote our brand car.Booklets and pamphletsBooklets will be kept
at car showrooms, retail battery outlets, etc for the customer to
read.These booklets will provide information about our company; the
products offered which suitsthe customers need accordingly.Offers
and Discounts[17]Hyundai Motor India Ltd (HMIL) have announced a
discount of Rs 33,000 along with otherbenefits like free insurance
and exchange bonus. Under the scheme, all Santro GL
(Solid)purchases would get a special price of Rs 2.99 lakh. Santro
non AC and Santro GLS will beeligible to get free insurance as well
as car accessories worth Rs 7,000 and Rs 15,000respectively. "The
schemes announced will provide our customers with an attractive
value for money and with the prevailing economic conditions, this
should provide an impetus for our sales and offset a part of the
ownership cost which has gone up considerably in the past few
months."- HMIL Senior Vice President (Marketing & Sales)
ArvindSaxenaBesides, consumers would be offered exchange benefits
up to Rs 20,000 on all Hyundai cars.Also, a loyalty scheme has been
announced whereinthe the existing Hyundai customers canavail the
loyalty discounts up to Rs 20,000 on purchase of new Hyundai Getz
(petrol), Accent(GLE) and Verna (Petrol and Diesel). 16
18. LGEstablished in 1997, LG Electronics India (LGEI) is a
wholly-owned subsidiary of LGElectronics, South Korea. It is one of
the leading companies in consumer electronics, homeappliances and
computer peripherals in India. It has a turnover of almost US$ 1000
million inIndia.LGEIs salesare increasing with a CAGR of 40 per
cent over the past five years.LG is the market leader in various
segments like colour TVs, microwave ovens, frost-freerefrigerators,
washing machines and air-conditioners, with market shares of 26.2
per cent,41.2 per cent, 37.9 per cent, 34.1 per cent and 34 per
cent respectively.LG Electronics India received the Occupational
Health & Safety Management SystemOHSAS18001:1999 certifications
from the British Standards Institution (BSI), India, for
asystematic approach towards Occupational Health and Safety
Management System.LGEI exported goods and services worth US$ 40
million in 2003. The major export marketsfor LGEI are the Middle
East, West Africa and Central Asia.Leveraging Indias IT advantage
LG Electronics has awarded a contract to develop IT solutions to LG
Soft India (LGSI). The project involves development and support for
ERP, SCM, CRM and IT- enabled services for LG Electronics 60
overseas subsidiaries and manufacturing facilities worldwide. LGSI
has offices in San Jose, London and Seoul with over 300
professionals in the development facility at Bangalore. All its
offices are networked for swifter communication and decision
making.Marketing strategiesTo make itself a known brand in the
consumer electronics sector, LG has taken innovativemarketing and
promotional initiatives: Launch of new technologies in consumer
electronics and home appliances. 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. 17
19. LGs corporate image is that of being the Digital leader of
the new millennium. LG was the first brand to enter cricket in a
big way, by sponsoring the 1999 World Cup, and followed it up in
2003 as well. LG brought in four captains of the Indian cricket
team to endorse its products. LG invested more than USS 8 million
on advertising and marketing in this sport. LG has differentiated
its products using technology and health benefits. The CTV range
has Golden Eye technology, air-conditioners have the Health Air
System and microwave ovens have Product localisationProduct
localisation strategy- used by LG LG came out with Hindi and
regional language menus on its TV. Introduced the low-priced
Cineplus and Sampoorna range for the rural markets. LG was the
first brand to introduce gaming in CTVs. In continuation of its
association with cricket, LG introduced the cricket game in CTVs.
Regional channel strategy and wide distribution network. LG has
adopted the regional distribution model in India. All the
distributors work directly with the company. This has resulted in
quicker rotation of stocks, and better penetration into the B, C,
and D class markets. LG also follows the strategy of stock
rotation, rather Health Wave System than dumping stocks on channel
partners. LG has a positive perception of India and the Indian
consumer. LG is making a foray into the e-commerce market in India
and has partnered with various local websites like fabmall.com,
rediff.com, indiatimes.com, and www.indiaplaza.comConclusionThe
above experiences clearly bring home the point that success in the
Indian market dependscrucially on commitment.This implies a
willingness to set up a fully owned subsidiary as opposed to a
joint venture, infull-fledged manufacturing facilities as opposed
to the assembly of completely knocked downkits, in a widespread
distribution network as opposed to a limited presence in the major
citiesand in customised products as opposed to standard offerings
from the parent companysproduct range.It also implies an ability to
work patiently within the constraints of the local
regulatoryframework. Commitment must be backed by flexibility. MNCs
must keep fine-tuning theirstrategy till they have a winning
formula in place. It is MNCs which show both commitmentand
flexibility that are most likely to succeed in India. 18
20. References[1]Market Entry Strategies: Pioneers Versus Late
Arrivals:By Gurumurthy Kalyanaram andRagu
Gurumurthy[2]http://www.pg.com/en_US/company/purpose_people/executive_team/dimitri_panayotopoulos.shtml[3]Inside
Procter & Gambles New Values-Based Strategy- By Rosabeth Moss
Kanter[4]
www.hoovers.com/cgi-bin/offsite?site=HBN&url=www.fortune.com/fortune/fortune500(source:
Hoovers Business Information, date viewed: 04/10/01)[5]
www.pg.com/about_pg/overview_facts/history.jhtml (source: P&G,
date viewed:05/10/01)[6] Journal of International Business Studies,
121 elite at the top of the economic
pyramid[7]www.mind-advertising.com/us/pg_us.htm (source: Mind
Advertising, date viewed:
05/10/01)www.mind-advertising.com/us/pg_us.htm (source: Mind
Advertising, date viewed: 22/10/01)[8] A comment by G.W. Goodale on
the book titled Soap Opera, the inside story of P&G, byAlesia
Swasy.[9] www.fastcompany.com/online/49/bestpractice.html (source:
Fast Company, theMagazine, August 2001 issue, date viewed:
22/10/01)[10] www.internetwk.com/transform/transform110199-3.htm
(source: United BusinessMedia, date viewed: 10/10/01)[11]
www.fastcompany.com/online/49/bestpractice.html (source: Fast
Company, theMagazine, August 2001 issue, date viewed: 22/10/01)[12]
Plan Global, Win Local, by John Millen, Vice President, Customer
BusinessDevelopment at Procter & Gamble (
www.kamcity.com/library/global.htm, source: Kamcity,date viewed:
22/10/01) 19
21. [14] MNCs in India By A V VedpuriswarAsst. Vice President
(Knowledge Management), SatyamComputer Services.[15] Business
Intelligence Concepts- Nokia v/s Motorola by Arend, Ricardo and
Helmi,pp28,31[16] The Management Strategy of Samsung in East
Asia-Lee Soo Chul, Executive VicePresident, Samsung
Corporation-November 26, 2003[17]
www.topnews.in-hyundai-offers-discount-and-attractive-schemes-boost-sales-296121.htm-Submitted
by Malini Ranade on Sat, 12/06/2008 - 16:06. 20