This platform for promotion was selected after extensive study on the emerging needs of the Indian consumers and was used to make them aspire products like air-conditioners, washing machines and refrigerators for leading lately lives. E. G. Launch of ‘Golden Eye’ TV’s for wrinkle free eyes or ‘Health Wave’ microwaves. This not only hit the other Indian brands hard but also made LAG a favored brand among the masses and it became known as a family brand. This customer preference and brand identity that was established by LAG in its formative years in the Indian market continues to be one of the strong pillars for LAG in the markets. ) Market leader in Refrigerators and Washing Machines: LAG has consistently maintained its market leadership position in refrigerators since 2004 as per the SGF Nelson survey. The same is also be true for the Washing machine segment. This was observed by us when we did a dipstick study among various dealers in Iambi. For maintaining its upper hand in these segments, LAG resorts to continual improvements in the products. Egg. Power cut ever cool refrigerator was launched in 2013, keeping the Indian consumers in mind.
These refrigerators have a patented technology using which food inside refrigerators stays cool for 7 hours after power cutlet. With this LAG is planning to further strengthen its presence in this segment. LAG has a wide variety of both these products to suit different market segments. ) Good product quality and value for money: LAG established itself in the Indian market by providing imported product quality at price of an Indian product at a lesser cost to the Indian consumers. Over the years LAG continues to maintain this strength and hold in this aspect. ) Wide distribution Network: LAG has a strong and wide distribution network across the country. This includes 20,000 retail points, including 1,600 LAG branded stores. 3. 2 Weakness a) Lack of continual innovation: With an increase in buyer power, innovation has become the order of the day. LAG is Soot: Marketing and Lag By reemphasized the market share. With consumer needs changing at a lightning speed, LAG needs to increase its pace of innovation. B) Almost nil presence in the Mobile segment: LAG though being a major player in the home appliances segment has failed to establish itself in the mobile phones segment.
It has been noted that LAG has not been able to keep pace with the rapidly changing mobile phone segment. The dealers also find it not viable enough to keep LAG phones due to lack of demands. C) Uneven focus on dealers: During the dipstick survey we found that focus on dealers was quite uneven. It was observed that the larger dealers were much favored over the smaller dealers. This was one of the reasons due to which the smaller dealers were not proactively selling LAG products. D) Weak in the AC segment LAG has lost its dominance in the AC segment to local players.
Few of the reasons include trimming of its window AC product and also shift of focus from multi brand outlet sale to its own showroom sales. 3. 3 Opportunities a) Fast growing premium segment: Premium product segments are growing at a much faster rate as compared to the other segments. With the number of consumers willing to spend more on products of their choice, LAG should leverage this opportunity effectively to increase its market hare in the industry’s. B) Focus on mass product image to expand its rural market: Rural market segment is expected to grow at rate of 25% CARR.
Also there has been a substantial rise in the per capita purchasing power in the rural market. More and more rural areas are getting access to power, making it easier for companies like LAG to enter in to the market. LAG can tap into the rural market with more of user friendly, low on power consumption and attractive products to capture this growing market. 3. 4 Threats a) Rapidly evolving technology: Rapid change in technology across the consumer durable segment requires the many as a whole to keep pace with it in terms of introduction of newer models in the consumer goods segment as also refinement of features of existing models.
Lag’s b) Existing and New Competitors: Existing competitors like Samsung, Sony, Evidence etc. And new entrants are rapidly catching up with market trends and newer innovations and features. C) Increasing general Input cost and Technological advances: Increase in raw material cost has led to rise in costs of consumer durable products. On the other hand constant innovation and increasing competitiveness has resulted in reduction of prices and decrease in profits.