Lg Pricing

Powerful Essays
Topics: Price, Marketing, Pricing
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.'

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