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_085v5iTHE JOINT LG/McKINSEY TEAM HAS COMPLETED THE PROJECT WITHIN 5 WEEKSModulesKey activitiesMarket Demand/Forecast• Forecast potential market by segment through refining market segmentation, understanding key growth drivers, and modeling market growthLGE performance assessment• Conduct internal data collection within LGE• Develop sound understanding of value proposition based on available market research including branding and consumer surveyStrategic development opportunities• Analyze different product mix options• Gather information on branding and marketing• Conduct channel diagnosis• Analyze value chain costsCompetitor• Develop competitive assessment for microwave oven competitors• Conduct interviews with distributors, retailers, government agencies, competitors to collect competitor information Consumer• Conduct consumer survey via external research house in 6 specified cities and 1 rural area to understand consumer purchasing behaviorEnd products• Market demand forecast by areas and product type• Current organization’s strengths and weaknesses• Current processes and incentive systems strengths and weaknesses• LGE aspirations for future growth• High level recommendation on product mix• Brand positioning status and recommen...
