LGElectronic010220BJ-airconditionerCopyright©2002DevelopingaWinningStrategyfortheAirConditionerBusinessinChinaFirstprogressreviewFebruary20,2001Mckinsey&CompanyCONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.NopartofitmaybeCirculated,quoted,orreproducedfordistributionoutsidetheclientOrganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&CompanyduringanOralpresentation;itisnotacompleterecordofthediscussion.LGElectronicsTianjinAppliancesCo.McKinsey&Company1LGElectronic010220BJ-airconditionerCopyright©2002MEETINGOBJECTIVES•HighlightChina’sairconditionermarketdevelopmentandopportunitiesforLG•ReviewLG’scurrentperformanceinthemarketandimprovementopportunities•Agreeonkeydecisionstobemade•AgreeonnextstepsandworkplanforthesecondphaseMcKinsey&Company2LGElectronic010220BJ-airconditionerCopyright©2002AGENDA•Progressupdate•Marketdevelopment-Marketdemand-Tradestructure-Competition•LG’scurrentperformanceandimprovementopportunities•Nextsteps•Appendix-Keyassumptionsofdemandforecastmodel-Profilesofconsumersegmentation-ProfilesoftopA/Ccompetitors(includingprofitabilityanalysis)McKinsey&Company3LGElectronic010220BJ-airconditionerCopyright©2002THEJOINTLG/MCKINSEYTEAMHASCOMPLETEDFIRSTPHASEOFTHEPROJECTcompletedPhase1MarketdiagnosisPhase2MarketingandsalesstrategydefinitionPhase3Implementationroadmapformulation5weeks2weeks5weeks•DevelophighlevelscenariosinatopmanagementworkshopbasedoninputsofPhase1•Select2to3potentialstrategiestofostergrowthandprofitability•Developscenariosbasedonthesestrategies•Defineassessmentcriteriaforscenarios•EvaluatescenariosagainstcriteriatoselectbestoptionforLG•DiagnoseBejingsituationandcurrentactivitiesofpilotteam•Planactivitiestobetestedtoimprovesalesexecution•Launchtestactions•Marketingplantodevelopbrandpositioningtothedesiredtargetsegment•Salesanddistributionmodelstosustainthemarketingstrategy•Testedimprovementideasreadyforimplementation•Detailimplementationplan•Putinplaceresourcestoens...
