Marketing Assignment LG electronics

HANOI UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM
Principles of Marketing Assignment
LGE’s Marketing Plan in Viet Nam
Tutor: Mrs. Pham Thi Phuong
Students: Dao Thi Phuong Dung
Phan Thi Hoang Yen
Vuong Le Thu Tra
Nguyen Phuc Toan
Tut: Tut 5 CN2
May 10
th
, 2012
Table of contents
Table of contents I
Executive summary II
I. Introduction 1
II. Situation analysis 1
1. Company analysis 1
1.1. Mission statement 1
1.2. Company objective 1
2. Environmental analysis 2
2.1. Economic 2
2.2. Demographic 3
2.3. Natural 4
2.4. Technological 4
2.5. Social/Cultural 4
2.6. Legal/Political 5
3. Competitor analysis 5
3.1. Direct competitors 6
3.1.1. Samsung 6

3.1.2. Toshiba 7
3.2. Positioning map 7
4. Customer analysis 8
4.1. Customer segmentation 8
4.1.1. Demographic 8
4.1.2. Psychographic 9
4.1.3. Behavioral 9
4.2. Decision type 10
5. Brand analysis 10
5.1. Product life cycle 10
5.2. Marketing strategy using the 4Ps strategy 10
5.2.1. Product 10
5.2.2. Price 11
5.2.3. Place 11
5.2.4. Promotion 11
6. SWOT analysis 12
6.1. Strengths 12
6.2. Weaknesses 12
6.3. Threats 12
6.4. Opportunities 12
III. Conclusion 13
References 14
2
Executive summary
Established in 1958, LG Electronics has the main office in Seoul, South Korea. The company
has become an international corporation in the field of electronics with many kinds of product
such as home entertainment, home appliances, mobile communication devices, air conditioners,
and multiple products for use in businesses.
LG’s target is using the most advanced technology and the most prime design to offer many
amenities for people all over the world to enjoy a better life. LG always tries to understand

customers’ needs, dominates the market with superior products against competitors. LG is
committed to preserving the natural environment and creating consumer-optimized products.
In the era of science and technology, competition among electronic companies is much
fiercer. With many smart and effective market strategies, LG has set a solid position in
customers’ mind. Before entering any market, company does research carefully about native
economic conditions, customers’ tastes, then set up specific promotion plans. LG appears to be a
successful trademark globally.

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I. Introduction
In the Asia Pacific area, Vietnam, with high economic growth rate, is currently considered as an
attractive market for many international companies. With the population of more than 85 million
people, Vietnamese market is extremely attractive for electronic producers. The country also
possesses several strengths to electronics production such as cheap and hardworking labor. This
leads to the fact that many foreign investors coming to Vietnam to set up businesses.
LG Electronics has offshoot companies all over the world. As one of the most famous
trademark in Korea as well as worldwide, after 10 years running business in Vietnam market, up
to the moment, LG’s products have occupied a respectable position in Vietnam market.
We choose washing machine in general, and washing machine LG WD – 9990 in particular as
an example of the whole company LG because it is one of the most popular product of LG and is
also widely known in Vietnam. This study is a brief overview about the situation, which consists
of company analysis, environmental, competitor, customer, brand, and SWOT analysis. The
company profile will be presented to be able to give a clear perspective about the market
which the firm belongs to.
II. Situation analysis
1. Company analysis
1.1. Mission statement
LG Electronics set its mid- and long-term target to rank among the top 3 electronics,
information, and telecommunication firms in the world by 2010. Therefore, they embrace the
philosophy of "Great Company, Great People" and pursue two growth strategies involving "fast

innovation" and "fast growth". Similarly, it strives to secure three core capabilities: product
leadership, market leadership, and people-centered leadership.
It provides high quality and regularly updated products to further ensure its success as a top
electronics manufacturer. As a worldwide corporation, LGE seeks to "make its customers happy
through its innovative digital products and services". With the motto of supplying the best
customer service and focusing on warranty system, LG has really made the difference in the field
of electronics and appliances.
LG improves the quality of everyday life of users with innovative household appliances
combining style and technology excellence while leading the industry in green technology. Also,
its research and development efforts are specifically concentrated in the area of technological
capabilities and developing new growth products. LG is always leader of technology
with luxurious, unique design.
1.2 Company objective
LG Electronics determined its home appliance business strategies for 2012 that LG’s primary
goal this year is to strengthen its business foundations so that it can achieve the top position in
their home appliance category by 2014. So as to reach this objective, LG plans to enhance its
competitive advantage in the refrigerator and washing machine segments and make strong
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investments in smart appliances. In spite of the global economic recession, LG aims to achieve
double digit sales growth rate this year (LG, 2012). In its first quarter financial report in 2012,
LG reported that although sales of the company reached 10.78 billion, reduced by 7.1% and
11.5% over the previous quarter and the same period last year, but profits increased and reached
214.3 million (cited in GsmArena 2012).
In addition, LG will continue to provide upgraded premium lines of the company’s
representative energy efficient yet large-capacity refrigerators equipped with LG’s Linear
Compressor and washing machines equipped with the Inverter Direct Drive™ motor, raising the
bar for the value-added products market. In 2012, LG aims to be the top selling washing machine
brand in the globe for the fifth consecutive year, as it has done since 2008.
Moreover, the company invests in research with one clear purpose: to improve the quality
and efficiency of its products through scientific innovation. According to report released by

the South Korean LG Group, in 2010, LG invested about 15 trillion won (13.35 billion U.S.
dollars) on the basis of research and development (R & D) (cited in Thanh 2010).
And finally, LG’s success in history has been its ability to meet the diverse needs of
consumers in different regional markets. In developed markets, LG will adhere to the energy
standards of the North American, European and other developed markets by introducing washing
machines equipped with the Inverter Direct Drive™ motor that consume less energy compared to
conventional LG models.
2. Environmental analysis
As any other companies, LG is strongly affected by macro environment factors which are
mentioned here as economic, demographic, natural, technological, social/ cultural and legal/
political factors. Especially Vietnam is a new-emerging economy which is developing
dynamically after joining WTO with numerous opportunities over the country. Many economic
issues bring both positive and negative affects for LG to develop in the household appliances
market.
II.1. Economic
The economic factor has strong effect on the household appliance industry. As the fluctuation
of an economy can cause direct impact on consumers’ buying behavior and the input for the
household appliance industry. Economic factors always bring effects related to the demand,
costs, prices, and profits. With progress made by leaps and bounds, Vietnamese economy has got
achievement: higher economic growth as well as higher standard of living.
Vietnam is considered as one of the ideal markets in the world for international companies to
enter. With stable gross domestic product (GDP) growth averaging approximately 8.5 percent
annual between 2005 and 2007 and 6 percent from 2008 to 2011, Vietnam is the second fastest-
growing economy in the world next to China.
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Figure 1. Vietnam’ GDP growth rate from 2000 to 2011
At the beginning of 2012, because of world economic downturn, Vietnam economy and
Vietnam's retail market are affected considerably. High inflation rate in the first months of the
year, signals of macroeconomic instability, increased interest rates, exchange rate VND / USD
and gold price fluctuation, bleak real estate market , stock decline, business capital scarcity,

production delay, unemployment increase have affected consumer confidence to the retail
market. Actually, Vietnam retailers have managed to cope with the big challenges since the
beginning of this year. However, Vietnam’s retail market is one of the five highest profitable
markets. In 2007, Vietnamese spent nearly 45 billion USD for consumption – a high number
compared to about 40% in developed countries. Economists predict that the period 2011-2015,
average growth rate of Vietnam’ retail market would remain at 23% - 25% per year. So Vietnam’s
retail market is still destination of foreign distribution system once the barriers are removed
(Quan 2008).
II.2. Demographic
Vietnam has a high population of around 87 million people by the year 2011, ranks thirteenth
in the world and third in Southeast Asia. Vietnam has fast population growth speed with average
1 million people increased each year. It is a big market of labor and consumption.
According to a statistical report in 2009, urban inhabitants were 25,374,262, occupied 29.6%
the whole population. Urbanization will continue to be a long-term growth driver. The United
Nations forecasts the urban population will rise to more than 50% by the early 2040s. On the
other hand, on shifting from agricultural economy to industrial economy, rural residents still
dominate in the whole country’s population structure with 60,415,311 people, occupied 70.4%
the whole population (Central Statistical Office, 2009). When it comes to the geographic
impacts, it is obviously seen that urban area’s people pay more attention to high-tech products
rather than the rural area’s people. People in towns and big cities are busier. They have little time
to do housework. In contrast, residents in countryside still have the habit of washing clothes by
hands. As a result, the company products are more preferred in urban area.
In addition, most of Vietnamese have low and medium income with GDP per capita of
$1,300 in 2011. Calculating by purchasing power parity (PPP), Vietnam’s GDP per capita is
about three fourth of Philippines or Indonesia, one third of Thailand and one fifth of Malaysia in
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2010. Therefore, firms should carefully choose target customers and have suitable products and
promotions toward many types of customers.
Age and gender are factors both influencing household appliances purchasing behaviors.
Regarding age variable, there is a difference between the preferences of youngsters and elders.

Youth and elders have different concerns in terms of style, color and utility. The research
indicates that the younger groups, especially single person or newly married couple, are more
likely to buy striking colors like red, green; small or medium sized washing machines. Whereas
older groups with higher purchasing power seek for higher quality products with more functions,
big sized washing machines due to more family members.
II.3. Natural
On entering the threshold of twenty first century, the world has to cope with serious
pollution, shortages of raw materials, increased costs of energy and requires for practical actions
to improve the situation. LG Electronics has accepted its responsibility as a global corporation
and are proud to contribute a part of it by leading the programs to reduce greenhouse gas
emissions and develop environment friendly products, while still performing energy,
environment, safety and health management activities (EESH) which focus on environmental
protection measures.
II.4. Technological
In the global dynamic economy background, technology has developed more rapid than ever.
Improvement in technology made the electronic product cheaper and cheaper. Gap between
scientific findings and new product has been shortened. Product lines also are completed and
updated regularly. LG has strongly focused on its quality. For this reason, a great amount of
money has been invested in technology improvement in company. To survive and further win
competitors, LG spends a great amount of fund on R&D. LG is proud of associating with famous
experts to serve the customers with the best quality and perfect products.
II.5. Social/Cultural
In Vietnam, it is widely believed that price manifests quality of goods and services. A
sociological study has recently illustrated that a large number of Vietnamese accept a high
spending level for expensive products. High-tech products, electronic products, luxury goods are
being consumed in Vietnam by a majority of customers with a desire to own world-famous
brands, thus, it is an outstanding feature for huge corporations like LG to consider.
Firstly, the number of white collar workers has risen substantially, however, still constitutes a
small ratio in the whole population. They can quickly adapt to development of science and
technology. Also, they want to experience new products. Secondly, farmers account for a big rate

in Vietnam population. With backward agriculture having lasted for hundreds of year, people still
hold many habits and customs that are very hard to give up. Residents in countryside may feel
difficult to operate some modern machines like washing machine or air conditioner.
II.6. Legal/Political
Vietnam has economic sector diversity namely as state sector, collective sector, private
sector, state capitalist sector and foreign investment. With trade liberalization, especially after
Vietnam joined AFTA (1996) and WTO (2006), many foreign companies has quickly adapted to
Vietnam business environment. Government support and incentives for investment are highly
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appreciated. State also has lots of reforms to encourage more investment and encourage domestic
investment in R&D.
In Vietnam, entrepreneur law, business law still exist a lot of negligence that need to be fixed
in the future. The government also have environment protection law and protection of
consumers’ rights to treat firms when they do things wrong to environment or customers. Tariffs
on electronic components cut from 9.41% to 6.36% in 2008 but still is a high rate. Many firms
suggest that this tariff should reduce to 0-3% so that domestic companies could compete with
imported products (Sean 2009).
Moreover, Vietnam is a large “grey” market for illegal and fake products. Although
Intellectual Property Law has been imposed since 2006, the implementation is not strict enough.
In the open-economy condition, Vietnam is listed among countries with the most seriousness of
the law violation.
3. Competitor analysis
Competitor analysis in marketing is the process of assessing the strengths and weaknesses of
a firm’s current and potential competitors. The goal of it is to understand: with which
competitors to compete, competitors' strategies and actions, how the competitors might react to a
firm's actions, how to influence the competitor using the firm's own advantages. Competitor
analysis helps the business itself creates marketing strategies that take advantages of competitors’
weaknesses and improves its own performance. In the case of LG, an understanding of the
company’s specific competitors in Vietnam will be crucial to its survival and sustainable
development.

To begin with, LG has no big indirect (substitute products) competitors in Vietnam, since
other methods for cleaning clothes are minor, and only hand washing can substitute for the use of
a washing machine when mentioning about washing clothes. Therefore, it is even more important
to consider about the direct competitors of LG in Vietnam.
As the market of today has been globalized, there are many brands that offer same type of
products and compete against each other to gain share in the market. In the 2005 washing
machine market, Sanyo has the largest share of 40%, LG has the second largest share of 18%,
Toshiba owns 11% of the share, and the rest of the share belongs to Samsung, Panasonic,
Daewoo and other brands (GFK, cited in Phuong 2005).
Figure 2. Share in Vietnam's washing machine market
3.1. Direct competitor analysis
It is such a tight competition that all of these brands have to try their best to attract and keep
customers with them. LG Electronics is not an exception. In order to “win” in the competition,
firstly, LG’s competitors should be identified. As it can be clearly seen, LG’s major competitors
in the washing machine market are Sanyo, Toshiba, Daewoo, Samsung, Panasonic. In the scope
of this report, two of the above mentioned brands, namely Samsung and Toshiba will be taken
into account.
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3.1.1. Samsung
Mr. Ko Tae Yeon – the general director of LG Vietnam has stated in an interview that
Samsung is one of the main competitors of LG in Vietnam (cited in DDDN 2011 ).
Samsung is known globally for its electronic products and it is one of the most successful
brands in the electronic industry. LG and Samsung have many features in common: they are both
Korean electronic brands with advanced technology, their target customers are the same in
various countries, etc.
Strengths:
• Samsung is known for its technologically advanced products: washing machines that
have bubble generators, Power Foam technology or larger washers, VRTÔ Plus which
reduces noise from the machines, etc.
• It attracts customers by offering new and innovative design through understanding the

customers that which type of designs are suitable to customers and what they want or
asked about.
• Samsung focuses more towards the innovations and try to keep improving the products to
attract more customers and capture more market share.
Weaknesses
• Although Samsung focuses on innovation, it is not proactive to introducing new products,
it waits to attack the competitors.
• It also lacks in product differentiation.
• Samsung caters mass market instead of niche market so for this purpose it sets low prices
of products and low price products seem as low quality products, so Samsung products
perceive as low quality as compared to competitors’ products.
• Most of the Samsung products are not user friendly which is a hurdle for Samsung to
make it market leader.
3.1.2. Toshiba
Toshiba is a diversified manufacturer and advanced marketer of electronic and electrical
products. Its product portfolio includes information and communication equipment and system,
internet based solution and services, electronic components and materials, power system,
industrial and social infrastructure system, and household appliances.
As shown in Figure 1, Toshiba is about to catch up with LG with its market share of 11%.
Different from LG and Samsung, Toshiba is a company originating from Japan – a country that is
famous for high-quality technology products.
Strengths:
• Have good reputation of a Japanese brand.
• Strong research and development: washing machines with the S-DD/ DD inverter motor.
• Growing organic electronics
Weaknesses:
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Toshiba

• Product’s designs are not diversified, not very appealing to customers

3.2. Positioning map
In order to satisfy diversified customers’ needs and wants, dealers have to keep the products
of various brands for their customers. As there are many players in the market offering washing
machines of the same quality, appearance and sub-functions, how different companies have
positioned the stock in is of great importance.
Samsung: Samsung positions itself as a brand which offers freshness with technological
strength. Samsung offer washing machines with price range from 3,990,000 VND to 19,390,000
VND.
Toshiba: Toshiba offer products remarkable for their innovation and artistry – contributing to
a safer, more comfortable life. Customer can own a Toshiba washing machine if they have
between 3,490,000 VND and 11,690,000 VND
LG: LG aims at enhance the customer’s life (and life style) with intelligent features, intuitive
functionality, and exceptional performance. Choosing LG is the form of self-expression and self-
satisfaction. The price of an LG washing machine ranges from 3,675,000 VND to 39,480,000
VND.
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High technology
Low technology
High perceived quality
and status

Low perceived quality
and status
Figure 3. Positioning map of LG, Samsung, Toshiba
4. Customer analysis
Caring about the customers’ needs and wants plays an important part in the work of the
marketers. Customers, when buying the products, often care about the product quality, price,
feature, design and so on. LG is one such company which has brought technologically advanced
products for its customers keeping in mind that today’s customer are placing greater weight on
quality and value in making their purchase decision. The company based on demographic,

psychographic and behavior to plot its marketing strategy.
4.1. Customer segmentation
4.1.1.Demographic
Base on demographic analysis data, LG categorizes customers by income and family size.
Customers with different income and family size can choose to own LG washing machines of
different levels of price and capacity (shown in figure two and three). We can clearly see from
the figure that the largest number of washing machines belongs to the price range from 5,000,000
VND to 10,000,000 VND (11 washing machine). This statistic proves that in Viet Nam, LG
mainly targets middle-income customers who want quality products at the best price. The
washing machine that has been chosen (LG WD-9990) is perfectly fit for this criterion.
Price range (VND) Number of washing machines
< 5,000,000 4
5,000,000 – 10,000,000 11
10,000,000 – 15,000,000 6
15,000,000 – 20,000,000 4
> 20,000,000 5
Figure 4. LG washing machine categorized by price
In addition, according to figure three, there are 17 washing machines that have the washing
capacity of 7-9 kilogram which can best support a family of four people (PNO 2011). A family of
four members is a typical family structure in Vietnam nowadays (QD 2005), so we can conclude
that LG also aims at the average family in Vietnam to sell its washing machines. LG WD-9990 is
again under this segmentation.
Capacity of washer (kilogram) Number of washing machine
7 – 9 17
9 – 11 7
11 – 13 5
13 – 16 4
11
Figure 5. LG washing machine categorized by capacity
4.1.2. Psychographic

LG also target buyers who concern about safety and health issues. In its sustainability report
(LG, 2008, p. 7) LG has shown its ambition in satisfying customers who were worrying about
their health and the future in the form of a wish: “It would be great if there were a washing
machine that thought about the environment and its customers’ health”.
4.1.3. Behavioral
Benefit sought: With the tagline “Life’s good”, LG positioning is to differentiate their
products on the basis of technology which appeal to the consumers on the basis of health
benefits. Consumers who seek for products that can improve their quality of life would definitely
go for a LG washing machine. There are some distinctive features of LG washing machine that
attracts users all over the world in general, and in Vietnam in particular: clean lint filter that
removes residues and cleans clothes better, direct drive motor in LG washing machines is so
quiet that you could run it in the middle of the night without disturbing your sleep, etc.
Brand familiarity: LG is a multinational company and a recognized brand around the world.
It has successful established in Vietnam. People can easily recognize the logo of the brand when
they come across it. LG has also been the sponsor for a popular TV game show for high school
students called “Race to Mount Olympia” for more than 10 years. This has helped promote LG’s
image in every family in Vietnam.
4.2. Decision type
For the washing machine that we have chosen, the decision type will be limited problem
solving. Consumers will be highly involved with a expensive (worth more than 10 million
VND), infrequent purchase, but see little differences between brands (LG – Samsung – Toshiba -
… ).
5. Brand analysis
The Vietnamese market has seen many changes because the government has applied a lot of
open policies with a view to encouraging development. There was total disappearance of a
simple market, where all the customers were happy with the products provided. Women
nowadays are busy with not only housework but also their own career. As a result, they need
smart home appliances, which can do perfectly as they do. To satisfy the need of customer,
recently, many electronics companies have presented many smart washing machines and LG
Electronics (LGE) is not out of this trend.

5.1. Product life cycle: Growth stage
In 2010, GFK, one of the four biggest market research companies in the world, has certified
LG Electronics with the best selling washing machine brand in Pacific Asia based on real
statistic in 8 major countries including Viet Nam (SMJ 2011). The 6 Motion washing machine
line using direct driver (DD) plays an important role in the success of LGE recently.
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LGE have made strong investment in smart washing machine segment. They have introduced
the fist 6 motion Direct Drive (DD) washing machines. The 6 Motion DD line went public the
first time in October 2009. Until now it has achieved a new record in sales with 2.25 million sold
out products, in which the amount of front loader washing machines is 1.25 million. With DD
technique, LG washing machines always work effectively and economical. Model LG WD-9990
is a typical example.
5.2. Marketing strategy using 4Ps strategy
5.2.1. Product
A white WD-9990 with DD motor providing less noise, less vibrations, less energy and water
consumption and greater durability . Some key feature of WD-9990 are listed below:
• Load detection: LG Direct Drive Motor detects how many laundry is loaded, and selects
the optimum washing time, rinsing times, and water consumption based on this
information make the washing machine work more effectively.
• Intelligent Washing System: detects and adjusts imbalances and excessive suds during
operation for the best washing performance. LG WD-9990 washing machine also have 10
washing program for every kind of clothes, such as: Baby care, Hand wash, Delicate, etc.
• Quick 30 Function: total cycle time is reduced to 30 minutes, including wash, rinse and
spin.
• Energy saving: according to researches from LG laboratory, washing machines using DD
technique can save about ¼ of electricity and ½ water consumption compare to others
that use old technique.
• LGE also provides a 10 years warranty for their DDmotor while their competitor,
Samsung only have a 5 years warranty for their products.
• Besides modern technology, LG is also a pioneer in creating user-friendly product, with

beautiful design and can easily fit with every living space. LG WD-9990 is slim compact
powerful washer with a depth of 550mm; the perfect solution for people with space
constraint problem.
5.2.2. Price.
LGE has used a very competitive price strategy. A LG washing machine is always a little bit
more expensive than a Samsung one. Specifically, a LG-WD 9990 is 10,385,000 VND while a
Samsung WF 8690 with the same functions is 8,490,000 VND, which is about 2,000,000 VND
cheaper than the LG one. Higher price may prove the quality of the brand . Additionally, LG
also tries to price up to local purchasing power rate in Vietnam.
5.2.3. Place
In Viet Nam, LGE have many official distributors and showroom from the North to the
South. In big cities like Ha Noi, Ho Chi Minh, Hai Phong, Da Nang… LG’s products are sold in
big malls or trade centers, for examples, Pico Plaza, Nguyen Kim and Viet Long Plaza. In these
centers, LG washing machines are always located in big and nice spaces. For customers, who
live far away from big cities, LG provide them with a home free delivery and installation.
5.2.4. Promotion
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The successful promotion strategies help LGE become the world's leading brand. They have
already invested very high amount in promotion, approximately 6- 7% of their revenue. LG’s
promotion activities include advertising, public relationship sponsor, sale promotion. In different
ways LG are promoting its products in Vietnam, including:
• Television advertising at “Gold hour” on different channels, namely VTVs, HTVs, Star
World.
• Magazines and newspapers articles.
• Marketing team: LGE expert teams are well trained about the company and the
company’s product lines. They give advices and samples to potential customers to
persuade them to buy the products.
• Website: LG has an attractive company’s website with multiple animations and categories
to describe the details of their products and promote the products.
6. SWOT Analysis

6.1. Strengths
• Diversity operation: LGE is a multinational company, so the company business is also
geography diversified, in Europe, North America, Korea, China, Asia. A diversified
operation enables the company to take advantage of opportunities within specific market
and geography, and at the same time protects it from segment specific setbacks.
• Strong financial position.
• Advantage technology: LG is providing user innovative products combining style and
technology. While leading the industry in green technology, LG is also using the most
advanced technology and the most insightful designs.
6.2. Weakness
• Lack of skilled employees: one of the big problems LG is facing is that it has very few
competent employees. Most employees are not skilled enough and also there is no
training and development concern for employees although they have located 2 big
factories in Viet Nam.
• Comparison of customers: consumer compare LG’s products to its competitor Samsung’s,
not with other brands
6.3. Threats
• Close competition: When customer want to buy a new washing machine, they have a
variety of choices, such as :Samsung, LG, Electrolux, etc. Due to less functional
differentiation there is an intensive competition in the market.
• Higher distributor margins: Dealer want to have the higher distribution margin from the
supplier in order to advertise a firm’s product through their advisory services as there is a
big impact of dealer’s advice on the customer’s buying behavior.
• Inflation: The condition of economy all around the world is currently not very good and it
is affecting the purchasing power and priorities of the customers. People are facing
difficulties in satisfying basic needs, so how they can spend on electronics which is
considered as premium items.
6.4. Opportunities:
• Growth in population: Growth in population is always a big opportunity for firms to
enhance their product lines and capacity as this increase demand accordingly. Viet Nam is

a developing country with the population of 86,936,464. Rising income and GDP growth
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are increasing affordability, with a huge and relatively untapped market in the rural and
suburban areas.
• Availability of consumer financing: Availability of consumer financing increased the
buying power of customers. This trend is big opportunity for the firms to offer valuable
products at an extra prices.
• New technology: New technology is proved to be a big driver for the new product
development and development of existing product. So new technological trends always
provide ultimate opportunities to the firm o develop their products in a new way.
• Potential to capture additional market share: Firm can capture additional market share
through diversification strategies.
III. CONCLUSION AND RECOMMENDATION
According to the analysis above, some recommendations are given with the view to
accomplish the stable standing of LG Electronics in the home appliances market.
Viet Nam is not only a potential market but also a promising source of labour. The important
thing to be suggested is that LG should make use of Vietnamese workforce, which is large,
skilled and low-cost, to make a more competitive price in market. Additionally, lack of trained
and skilled employees is also a big problem that must be solved right away. The way to deal
with this problem might be investing in training the employees before hiring them. This way is
much more cheaper than having hired a foreign expert or firing an employees right after the
recruitment because they don’t have enough skills for the job.
LGE is a company, which always have responsibility for environment protection and society
development. “Vì một Việt Nam mãi tươi xanh” is a declaration of the company. LGE could
actively participate in social activities and environment protection. This may bring about increase
the market presence of the brand. Similarly, word of mouth advertising is important in promoting
and positioning company’s product. With highly effective products, the consumers do not only
satisfy with the products but they also tell their friends, family and network and recommend
them to use it. That would help the company to expand its fame in Viet Nam home appliances
market.

To sum up, LGE is such a giant in the industry that its brand name has gained a lot of
customer recognition. Furthermore, it holds many more strengths than weaknesses, which has
helped the company to maintain its leadership in the industry. Also, from the case of LGE, it is
the lessons for new companies that want to enter this booming market to make use of any
advantages and try their best to eliminate all the difficulties to achieve their goals.
Word count: 4,940
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References
Central Statistical Office 2009, Tổng điều tra dân số và nhà ở Việt Nam năm 2009 – Di cư và đô
thị hóa ở Việt Nam: Thực trạng, xu hướng và những khác biệt, viewed 1 May 2012,
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