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CONFIDENTIALDeveloping a Winning Strategy for the Microwave Oven Business in ChinaLG Electronics Tianjin Appliances Co., LtdFinal progress reviewApril 9,2001This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey Company. This material was used by McKinsey Company during an oral presentation; it is not a complete record of the discussion.010326SH_120703_085v5i
THE JOINT LG/McKINSEY TEAM HAS COMPLETED THE PROJECT WITHIN 5 WEEKSModulesKey activitiesMarket Demand/ForecastForecast potential market by segment through refining market segmentation, understanding key growth drivers, and modeling market growthLGE performance assessmentConduct internal data collection within LGEDevelop sound understanding of value proposition based on available market research including branding and consumer surveyStrategic development opportunitiesAnalyze different product mix optionsGather information on branding and marketingConduct channel diagnosisAnalyze value chain costsCompetitorDevelop competitive assessment for microwave oven competitorsConduct interviews with distributors, retailers, government agencies, competitors to collect competitor information ConsumerConduct consumer survey via external research house in 6 specified cities and 1 rural area to understand consumer purchasing behaviorEnd productsMarket demand forecast by areas and product typeCurrent organization’s strengths and weaknessesCurrent processes and incentive systems strengths and weaknessesLGE aspirations for future growthHigh level recommendation on product mixBrand positioning status and recommendationsChannel mix diagnosis and high level channel prioritizationDetailed breakdown comparison on costs, COGS in particularAnalysis on overall competitive environmentDetailed information on competitor performance including sales, branding, pricing, channel mix and incenti
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