Lg Supply Chain Study

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Sales & Distribution system|
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By
Christopher Arputha Raj| 2011014|
Fuzail Sohail Anjum| 2011019|
Nitish Pal| 2011094|
Sanil Santosh Pai| 2011106|
Amit Purohit| 2011129|
Sujit Deshpande| 2011179|

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Contents
Sr no| Title| Page no|
| Executive Summary| |
1| Introduction| |
2| Generic flow of product| |
3| Channel structure existing in the organization| |
| a. Number of levels| |
| b. Intensity| |
| c. Intermediaries| |
| d. Factors considered for channel design| |
4| Sales force organogram| |
5| Forecasting, Target Setting & Evaluation of sales and distribution systems.| | 6| Reference| |

List of Figures
Sr No| Figure| Page No|
1| Generic flow of products from manufacturers to customers| | 2| Sales force Organogram| |

Executive Summary

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 in India. It is one of the most formidable brands in consumer electronics, home appliances, IT hardware and mobile communications space. In India for a decade, LG has earned a premium brand positioning and is the acknowledged trendsetter for the industry with fastest ever nationwide reach, latest global technology and product innovation. This paper gives a detailed explanation and evaluation of the sales and distribution system of LG India particularly in the consumer durables market. The product flows from the manufacturing facilities situated in Pune and Noida. In addition, there are third party manufacturers or OEMS. The end products from these are stocked in the Mother warehouses located near the major manufacturing units. From there the goods are transported to the state warehouses located near the markets. The goods are then forwarded to the trade partners who are in direct contact with the customers. The company follows a 3 level or 4 level channel structures depending on the markets. In addition to direct dealers or LG Shoppe which directly cater to customers, there are distributers which cater to smaller sub-dealers. The distribution network is intensive to counter competition and have higher presence in the market. The intermediaries are chosen depending on the market intensity, area and financials. The distribution channel is decided based on the following factors: 1. Geography

2. Capacity of the market
3. Taxes and Government Norms
4. Cost of Logistics
The sales organization follows a more of matrix structure. The Regional Managers have a functional head i.e. the Sales Head and the Product heads- Business group heads and Product group Marketing Head. The branch manager reports to the Regional Manager. Branch manager handles the territory through ASMs- Area sales Managers which are responsible for specific area or customer cluster. There are different ASMs for Dealers and Retail markets in a particular sales territory. Overall, the sales and distribution system of LG is the best in India for consumer goods. It has to look into options like direct marketing via the company online site to further strengthen the network.

1. Introduction
LG Electronics Inc. is a Korea-based manufacturer specialized in the provision of electronic products. The Company mainly operates in four business divisions: home entertainment division, which provides liquid crystal display (LCD) televisions (TVs), plasma display panel (PDP) TVs, PDP modules and LCD modules, as well as audio, video and security equipment; mobile communications division, which provides mobile terminals, tablet personal computers (PCs) and network equipment; home appliance division, which provides refrigerators, washing machines, microwave ovens, healthcare equipment, cleaners, water treatment machines and others, and air conditioning and energy solution division, which provides industrial and household air conditionings,...
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