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010326SH_120703_085v5iCONFIDENTIALDeveloping 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.ConsumerCompetitorStrategic development opportunities010326SH_120703_085v5iTHE JOINT LG/McKINSEY TEAM HAS COMPLETED THE PROJECT WITHIN 5 WEEKSModulesEnd productsKey activitiesMarket demand forecast by areas and product typeForecast potential market by segment through refining market segmentation, understanding key growth drivers, and modeling market growthMarket Demand/ForecastDetailed analysis on consumer purchasing patternConduct consumer survey via external research house in 6 specified cities and 1 rural area to understand consumer purchasing behaviorAnalysis on overall competitive environmentDetailed information on competitor performance including sales, branding, pricing, channel mix and incentivesKey competitors’ COGS analysisStrengths and weaknesses of each competitor group and the implicationsDevelop competitive assessment for microwave oven competitorsConduct interviews with distributors, retailers, government agencies, competitors to collect competitor information Current organization’s strengths and weaknessesCurrent processes and incentive systems strengths and weaknessesLGE aspirations for future growthConduct internal data collection within LGEDevelop sound understanding of value proposition based on available market research including branding and consumer surveyLGE performance assessmentHigh level recommendation on product mixBrand positioning status and recommendationsChannel mix diagnosis and high level channel prioritizationDetailed breakdow
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