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Acknowledgement

I would like to thanks my faculty guide Mrs. RUCHI SHARMA .I also

acknowledge my indebtedness to all those who rendered direct or indirect help

in completing this project, especially dealers of LG and its competitor who gave

me their precious time and help me in my research study.


Table of Contents

Acknowledgement
Synopsis

Chapter I : Introduction

Objectives

Methodology

Chapter II : Industry Profile

Market Overview

The sector has been growing steadily

Consumer Electronics Production

Competitive Advantages

Key Domestic and Foreign Players

India will be a high growth market in this market

Chapter III : Company Profile

Overview of company
Company’s products
Refrigerators
Air-Conditioner
Washing Machine
Microwave Oven
Important Issues about Company
Graph of Market share of LG
in Gorakhpur city and nearby region in 2007 to 2008

Milestone of LG so far in India

Chapter IV : Analysis of the Content

Discussion
Limitation
Result or Finding
Conclusion and Recommendation

Annexure : Glossary

Appendices

Bibliographie
List of Tables

Table 1: Dealers dealing with LG

Table 2: Perception about LG in dealers and customers view

Table 3: LG Products which is mostly liked by customers

Table 4: Most preferred brand by customers

Table 5: Main competitor of LG

Table 6: Feature of LG mostly like by customers

Table 7: Customers awareness of exchange offer on LG

Table 8: Company is giving extra benefit to pull up its Market Share

Table 9: Satisfaction level of dealers with LG strategies

Table 10: Complaint against LG

Table 11: Dealers advice for company to pull its market share

Table 12: dealers action to promote the sales of LG


List of Graphs

Graph 1: Market share of LG in Gorakhpur and nearby region in 2007-2008

Graph 2: Ranking of LG on different parameters

Graph 3: Dealers dealing with LG

Graph 4: Perception about LG in dealers and customers view

Graph 5: LG Products which is mostly liked by customers

Graph 6: Most preferred brand by customers

Graph 7: Main competitor of LG

Graph 8: Feature of LG mostly like by customers

Graph 9: Customers awareness of exchange offer on LG

Graph 10: Company is giving extra benefit to pull up its Market Share

Graph 11: Satisfaction level of dealers with LG strategies

Graph 12: Complaint again LG

Graph 13: Dealers advise for company

Graph 14: What dealers do to promote the sell of LG


SYNOPSIS

OBJECTIVE:-The title of my project is “TO KNOW THE MARKET


SHARE & GROWTH OF LG in Gorakhpur city and nearby region since
2007-2008.

Methodology

Sampling unit:

The survey targeted the Dealers of LG and dealers of main competitors like
Samsung, Whirlpool, and Videocon in Gorakhpur city and nearby region.

Sample size:

My whole sample size is 35 dealers of LG, Samsung, Videocon & Whirlpool.


.
Data collection method:

The data was collect through questionnaire method. The questionnaire consists of
both open and close ended question to get the better understanding of the survey.

Nature of data:

Primary data collected through questionnaire, structured interview.


Secondary data collected through.
Chapter 1

• Introduction
• Objective
• Methodology
Introduction

Our project title is “To know the market share and growth of LG in
Gorakhpur city and nearby Region since 2007 to 2008. The nature of this
project is dealer’s survey in Gorakhpur city and nearby region.
I took interviews of dealers in region and asked them questions that could
determine the market share in previous as well as this year. To know about the
growth of LG in region, I am using a questionnaire technique for dealers which
are based on customer satisfaction and their status of mind towards the brand.
I am in the process of acquiring deep knowledge about market position of LG
and its growth.
Objective of project work

The major objective of my project to find the market share of LG in year 2007
and 2008 so far. Market share is a calculation which shows what is the position
of sales of company product in compare with competitor’s product. To find the
market share of company, the things that I had to find are:-
1. LG total sale in year 2007 to 2008.
2. Total sale of competitor product in period 2007-2008.

The above data that are required to calculate the market share of LG, gathered
by survey method. Total sale of product could found by dealer survey. So,
through the questionnaire we survey all the dealers of Competitor Company
LG in region. The main competitor of LG in Home Appliances industry is
Whirlpool, Samsung& Videocon.
Methodology

Sampling unit:
The survey targeted all the Dealers of LG and dealers of main competitors like
Samsung, LG, and Videocon in Gorakhpur city and nearby region.

Sample size:
My whole sample size is 35 dealers of LG, Samsung, Videocon
& Whirlpool.
.
Data collection method:

The data was collect through questionnaire method. The questionnaire consists
of both open and close ended question to get the better understanding of the
survey.

Nature of data:

Primary data collected through questionnaire, structured interview.


Secondary data collected through->

i. Website(www.lge.com)
ii. News paper(Business Times)
iii. Magazines(Business Today)
iv. Broacher of Whirlpool products
v. Books( Fortune 500 company analysis)
CHAPTER II

Industry Profile

• Market Overview
• The sector has been growing steadily
• Consumer Electronics Production
• Competitive Advantages
• Key Domestic and Foreign Players
• India will be a high growth market in the
electronics market
Market Overview

The global electronics industry is growing rapidly. From an estimated size of


US$ 950 billion in 2005, it is estimated to grow to nearly US$ 2100 billion by
2010. The market is dominated by Asian countries such as China, Taiwan,
Singapore and South Korea. The industry is characterized by rapid innovation
and speed to market, short product life
cycle, highly automated manufacturing to give consistent quality at low cost,
high volume production, continuous improvement in capabilities for reducing
costs and profit accrual through volumes.

India’s electronics industry is nascent by global standards. Despite a population


of over one billion, India has a relatively small electronics market. It is ranked
twenty-sixth worldwide in terms of sales and twenty-ninth in terms of
production. The total size of the industry in 2004-05 was US$11 billion. India’s
Electronics sector has six key segments The Indian electronic industry is
divided into six segments: Consumer electronics, Industrial electronics,
Computers, Strategic electronics, Communication and Broadcasting equipment
and Electronic components. The consumer electronics sector dominates the
industry with 27 per cent share and has benefited from a large and expanding
market. The industrial electronics and computer sector each has a share of over
15 per cent.

Electronics Production (2004-05) Consumer 34%


Electronics Industrial Electronics 15%
Computers 18%
Commn. & Broad. Eqpt. 9%
Strategic Electronics 6%
Components 18%
Consumer electronics

Consumer electronics consists of products that are directly consumed by end-


users, such as televisions, VCD/MP3 players, microwave ovens, washing
machine, refrigerator, air-conditioner, etc. This segment has a large
manufacturing base, and is quite competitive, with presence of several global
players in India.

Industrial Electronics

The Industrial electronics segment includes products that are used by other
industries, such as process control instrumentation, automation systems, Test
and measuring (T&M) instruments and medical instruments.

Computers

This segment includes personal computers, servers, workstations,


supercomputers, data processing equipment and peripherals such as monitors,
keyboards, disk drives, printers, plotters, digitizers, SMPS, modems,
networking products and add-on cards.

Strategic Electronics

The strategic electronics segment covers Satellite base communications,


Navigation and surveillance, underwater electronics and infra red based
detection, disaster management and GPS based Vehicle tracking systems. The
segment has a number of manufacturing units both in the public and Private
sectors.

Communication and Broadcasting Equipment

The communication and broadcasting equipment segment includes digital


Exchanges (EPABX, RAX, TAX and MAX), Transmission equipment touch as
HF/VHF/Microwave trans-receivers, satellite communication terminals, optical
Fiber communication equipment, troposcatter equipment, two-way radio
communication equipment, etc.

Electronics Components

The electronics components segment caters to the requirements of consumer


electronics, telecom, defense and information technology sectors. The
components in production in India at present include TV picture tubes (black
& white and colour), monitor tubes, diodes and transistors, power devices, ICs,
hybrid microcircuits, resistors, capacitors (plastic film, electrolytic, tantalum,
ceramic), connectors,

Switches, relays, magnetic heads, DC micro motors and tape deck mechanism,
PCBs, crystals, loudspeakers and hard and soft ferrites. The consumer
electronic sector in general and the colour television (CTV) industry in
particular is the growth engine for electronic components.
The sector has been growing steadily across most segments

India’s electronics industry has been growing at approximately 11 per cent


CAGR over the past 5 years, and was worth US$ 11 billion in 2004-05. The
following sections discuss the growth and current status of Consumer
Electronic segments.

Consumer electronics

The Consumer electronics industry contributes about 33.80 per cent of the total
electronics production in India. The total production of consumer electronics
was US$ 3.74 billion in 2004-05, registering a growth of 13 per cent over
production in the previous year. The growth has been primarily powered by
colour televisions (CTV), which grew from 8.9 million units in 2003-04 to over
10 million in 2004-05. CTV growth in turn is driven by growth in Flat Screen
TVs (FST) that is estimated to constitute nearly 20 per cent of the CTV market.
Other growth segments in consumer electronics include microwave ovens and
VCD/MP3 players - the microwave oven industry is estimated to be growing at
the rate of 25-30 per cent.

Consumer Electronics Production

These trends are a reflection of increasing consumption and aspiration levels


among Indian consumers, driven by demographic and lifestyle changes. As
these trends are positive for the future, the outlook for consumer electronics
segment is quite positive.
Competitive Advantages

While the Electronics sector in India is currently small, there are several
Advantages that India offers that can be effectively leveraged to achieve higher
growth. These can be categorized under four heads:

• Manpower
• Market Demand
• Supporting institutions and
• Policy and Regulatory Support

These areas are further discussed below

Availability of skilled human resources in India at competitive cost is a Key


advantage for the electronics sector India’s human resources advantage derives
from three key features – Availability in terms of numbers, Capability in terms
of the right skills and Low costs. India has the potential to ensure adequate
availability of manpower to support the electronics industry well into the future
India’s population is predominantly young – in 2001, nearly 54 per cent of the
population was less than 25 years of age. By 2013, nearly 200 million more
people will join the nation’s productive age bracket representing a quantum
growth in the consumption class. This implies that India will have a large pool
of productive manpower well into the future. India’s manpower is trained and
has a good mix of capabilities.
Lab our costs in India extremely competitive when compared to other
Developing countries. India’s cost of skilled labour is among the lowest in the
world. For example, average labour rate per employee in the electronics sector
is about $3,000 per year. Labour cost as a percentage of value added is only 21
per cent in India as compared to 23 per cent in China and 30 per cent in
Taiwan. Taking advantage of this many MNCs have set up manufacturing
bases in India for domestic consumption as well as exports. Many multinational
companies in the electronics sector have leveraged India’s manpower
advantage to grow in the domestic Market, as well as source products and
services from India.

Electrolux

Electrolux has set up Research and Development (R&D) centre with an


Investment of US$ 8.6 million. It is the headquarters of its South Asian
Association for Regional Cooperation (SAARC) countries, excluding Sri Lanka.
This centre will be the regional hub for developing new technologies and
products.

Philips

Several Philips India employees are working on key regional/ global Philips
projects, committees and assignments. Several managers who started as
employees of Philips in India are now based in Philips organizations across the
world.
Samsung

Samsung invested US$ 11 million in setting up an R&D in India. Samsung


R&D Centre at Noida helps the company customize its CTV range as per the
preference of Indian customers. Indian market provides favorable demand
conditions for the electronics sector to grow India has been experiencing a
strong growth in the demand of consumer products and durables in recent
years, driven by consumer demographic trends. This has facilitated growth in
the electronics sector both directly and indirectly. Growth in demand of
consumer durables such as CTVs, VCD / MP3 players and PCs directly benefits
the sector. Also the demand for products such as automobiles, white goods, air-
conditioners, textiles, etc, leads to growth in the electronics sector as these
products contain a significant number of electronic components. At the same
time, consumer demand has boosted growth in India’s overall manufacturing
sector as well, which, in turn, has a positive impact on industrial electronics.
On the whole the domestic market in India is very attractive from the point of
view of the electronics sector, and current trends indicate high growth potential
for the sector in the future. Some of the key trends that have a positive impact
on the sector are:
• Growing consuming class (defined as people having annual income of
US$ 980 (INR 45000) or above) that has greater disposable income and
propensity to spend. It has been estimated by NCAER that this group will
constitute over 80 per cent of the population of India by 2009-10.

• Lifestyle changes such as greater exposure to global trends and increasing


affinity for convenience and lifestyle products.
Key Domestic and Foreign Players

Philips

Philips in India is a subsidiary of Royal Philips Electronics of the Netherlands.


It is promoted by Koninklijke Philips Electronics N V. Philips India Limited
(PIL) is a leader in lighting, consumer electronics, semiconductors, domestic
appliances and personal care with an unmatched range of products backed by
superior design and technology. PIL also has an excellent distribution and
after-sales service network. Philips has a plant each in Thane, Pune, Loni-
Kalbhor, Mohali and Baroda and three plants in Kolkata. The revenue in the
year 2004 was US$ 524 million and the net profit was US$ 22 million.

Videocon International Ltd.

In 1985, through a technical tie-up with Toshiba Corporation of Japan,


Videocon International Limited launched India’s first world class Color
Television. Today, Videocon International Ltd. the flagship company of the
Videocon Group, is India’s leading manufacturer of consumer electronic
products. Videocon is now a global player, the first Indian company to win the
prestigious CE approval for exporting its color TV to Europe. Videocon is now
entering world market with its Operations in the Middle East, Europe,
Indonesia and South Africa. It currently manufactures color TVs, black &
white TVs and audio products - a range of home audio systems, stereo radio,
recorders and personal stereos. At its plant at Chitegaon and Aurangabad it
has also undertaken complete backward integration to manufacture all critical
and important components of its products, such as electronic tuners, FBTs,
ATDMs and Deflection Yokes. The company had revenues of US$ 873 million
in 2004.

Mirc Electronics

MIRC makes and markets the Onida brand of products. Today, apart from
being a leading player in the CTV market, it also manufactures other
household appliances including air-conditioners, washing machines, DVDs,
plasma television and home theatre systems. For office use, Onida has also
introduced state-of-the-art multi-media presentation products. Its plant is
located at Thane, Maharashtra. In the year 2005 the company had revenues of
US$ 243 million and made a net profit of US$ 8 million.

Samsung

Samsung India Electronics Ltd., a subsidiary of the US$56 billion Samsung


Electronics Co. Ltd., has been operating in India since 1995. It is a leading
provider of high tech consumer electronics, home appliance, IT and telecom
products in the country. Samsung India has set up manufacturing facilities for
colour televisions, microwave ovens, washing machines, air conditioners, colour
monitors and more recently, refrigerators in the country. It has a plant in
Noida. The revenue in 2003 was US$ 715 million.

LG

LG Electronics India Pvt. Ltd. (LGEIL) is a wholly owned subsidiary of LG


Electronics, South Korea. It has a plant each in Noida and Pune. Its products
include TV, air-conditioner, refrigerator, washing machine, monitor, vacuum
cleaner and projector. LG India Pvt. Ltd. recorded a growth of 37 per cent
from the consumer electronics division, contributing to 46 per cent of the total
turnover in 2003.
CHAPTER III

Company Profile

Overview of company
Company’s products and their specifications
• Refrigerators
• Air-Conditioner
• Washing Machine
• Microwave Oven
Important Issues about Company.
Milestone of LG so far in India.
Graph of Market share of LG in Gorakhpur city
and nearby region from 2007 to 2008
Graph of Ranking of LG on different parameters.
Overview of company

LG is one of the leading manufactures in home appliances in the world.


ORGANISATIONAL STRUCTURE -
LG electronics is largely divided in 22 units. On the domestic side, there are
four business units, the marketing division, and seven functional divisions in the
head office. The overseas network consists of seven regional headquarters and
three functional areas (support,R&D,design).
There are seven business sites (in Pyeongtaek, Cheongju, Changwon, Gumi)
under the four business unites. The overseas operations include 36 sales
subsidiaries, 22 production subsidiaries,8 product sales subsidiaries,5 service
subsidiaries,and branch offices.

EMPLOYES --
The number of employees at LG electronics stood at aproximately 82,000 as
the end of 2007.Of the total,29000 were stationed in Korea and
53,000 abrod ,meaning that over 60% of employee are
working in overseas.The number of overseas employees
should continue to increase in line with our localization
strategy.Female employees comprices 16% of total domestic
workforce(2% for manager and above) and the figure is on steady rise.The
average age of entire workforce,male and female,is 33.8 years,disabled people
represent 0.8% of total workforce.

CORE BUISNESS --
LG electronics is composed of four business divisions ,which are Digital
appliance,Digital display,Digital media and Mobial communication .
Category Main product
Digital appliance Air conditionar,Refrigerator,washing machines
,Vacume cleaners,Microwave ovens,Air-
conditionar compressors,Cool air compresors
,MGT moters
Digital display TVs,Monitors,PDPs,Video tapes, DVD–R Disc
,prism sheet,Green sheet
Digital Media Optical storage,Audio, notebook PC,DVD-
Player/DVD-REC/combi,security,PDA,Telimetics
Mobial communication Mobial telecommunication, WLL handsets,
Telecommunications systems,Transmitters &
exchangers,key phone ,PBX,PCB

CORPORATE GOVERNANCE –
The launch of the holding company system laid the ground work for heightened
transparency ,The LG group was able to put an end to the cross-shareholding
among affiliates ,As the holding company was fully responsible for investments
and LG electronics was able to concentrate on increasing corporate value and
its own operations.
In particular, LG electronics saw the installstation of a system of professional
management,while a board of directors focused system has has been
improveing corporate transparency, in this way, LG electronics has set up the
framework to strengthen business competitiveness at home and abroad,
ultimately increasing shareholder and corporate value.
LG Vision
Every home, everywhere with pride, passion and performance. We create the
world’s best home appliances, which make life easier and more enjoyable for
people. Our goal is a LG product in every home everywhere and a way to
achive global top 3 status till 2010.

LG Mission
Every one passionately creating loyal customers for life.

LG Strategy
Brand focused and value creation (BFVC).
Defines how company will create value by building unmatched
customer loyalty to our brands.

Culture and values: - Diversity with inclusion.


It defines how company is and what it believes in.

Core competencies: - Customer Excellence, innovation,


Customer centered ,costomer insight management.
It defines the unique skills that enable company to
build the customer loyalty.
Company’s products and their specifications

Presently Whirlpool offers four products in market.

• Refrigerators (Frost free/ Direct cool)

• Air-conditioners (Window/ Split)

• Washing Machine (Semi/ Fully automatic)

• Microwave Oven (Solo/Grill/Convection)


Refrigerators

This is the section in which LG is making a grate business at present market in


home appliance industry. The main reason of the leading sale of Whirlpool
refrigerator is new and attractive models at regular time to attract customers,
the best quality product at the same price level in compression of that of
competitors, fastest cooling capacity, and the exchange offer that is a strategy of
company to promote the sale.

Air-Conditioner
The new ranges of LG Air-Conditioner are equipped with the 6th sense
technology. The new ranges of Magiccool ACs also know what you want and
keep customers cool even in the peak of summer. With a lost of features that
are sure to delight you.

Washing Machine

Washing mavhin LG lead to the US market for front –loading washers as LG


continued to expand the capacity and functionality of our fore-front loding
washers and dryer lineup in 2007.LG increased capacities to 15 kg and created
a dryer control panal that can be rotated 180 degrees, enabling uniting
stacking withouting compromising operating convenience .
Microwave Oven

As for as cooking appliance concerned LG continued to refine and expands its


lightwave oven family in 2007 with the new solar cube series.LG’s lightwave
technology uses a halogen heater to cook food up to four times faster then
conventional ovens while retaining all the flavor and nutrients .
Important Issues about Company

1. Employer Type: Private limited

2. Stock Exchange: Korea stock exchange(KOSCOM)

5. M.D. : Mr. Moon B. Shin

3. Vice Chairman and CEO: Mr Yong Nam

4. 2007 Employees: 82,000

5. 2007 Revenue ($ billion.): 43.8


Graph 1

Market share of LG in NCR REGION from 2004 to


2008

40
Market share

30
20
10
0
2004 2005 2006 2007 2008
Years

Market share
Milestone of LG so far in India

1. Most admired company in India by A&M magazine in 1998.

2. No.1consumer durable company by A&M magazine in 1999.

3. Techies award best flat screen monitor by computer world magazine in


2000.

4. Best employer by business today/hewitt assts in 2001.

5. Entrepreneur of the year by Ernst &young in 2002.

6. Gold rating for environmental performance by CII in 2003.

7. Green technology gold award by Green tech foundation in 2003.

8. Award for IT innovation by business today in 2004.

9. Consumer durable retailer of the year by ICICI bank in 2005.

10. Excellence in corporate leadership and entrepreneurial sprit by


CNBC TV in 2005.

11. 4P Award: Refrigerator and air-conditioner in 2006.

12. India’s most trusted brand 2007, by brand equity in 2007.


13. Brand for excellence 2008 award by VAR India in 2008.

14. Most preferred brand-consumer electronics and home appliances


award by CNBC Awaaz consumer awards in 2008.

15. Most admired MNC in India by 4Ps award in 2008.


Chapter (IV)

Limitation
Discussion
Conclusion and Recommendation
Result or Finding

Appendices

Limitation

Every project faces some limitation; because of this limitation the required and
necessary data to complete the project may not gathered in proper manner.
The time constraint, not well response by dealers, an average data in place of
actual data given in survey, the location of dealers point, and polluted
environment of Gorakhpur city and nearby area region are some issue comes in
to picture in this heading “limitation”. Some of the dealer point are far and that
was a though task to reach them to collect data. Some few dealers did not give
good response when we went there to find data. Most of the dealers gave an
original data, where we were looking for actual data.

Discussion

As our project title is to find the market share and growth of LG in 2007-2008
at Gorakhpur and nearby Region. Accomplish this project and to make
report .I survey the dealers of LG and its competitors. I gather data and after
data analysis, I conclude that the market share of LG in Gorakhpur city and
nearby Region from 2007 –2008 is 30%. LG is market leader followed by
Samsung, whirlpool in third position in market at NCR. The total sale of LG in
2007 -2008 is 12000 units.

Table No 1: - Dealers dealing with LG

Category No. of Respondent Percentage of Respondent


Last 1year 10 31%
Last 2 Year 5 16%
Last 5 Year 3 9%
More than 5 year 14 44%

GRAPH 3
Dealers dealing with LG

31%
44%

9% 16%

Last 1 Year Last 2 Year


Last 5 Year More than 5 Year

• Interpretation: - Maximum number of dealers having


dealership of LG since more than 5 years. The percentage
of those dealers is 44%.

Table No 2: - Perception about LG in dealers and customers view

Category No. of Respondent Percentage of Respondent


Good 13 37%
Very Good 22 63%
Average 0 0%
Below Average 0 0%

GRAPH 4
Perception about LG in view of
Dealers and customers

25 22
20
15 13
10
5
0 0
0

Good Very Good Average Below Avg


Interpretation: - 63% dealers are having very good perception
about LG product.

Table 3: -LG Products which is mostly liked by customers

Category No. of Respondent


Washing Machine 15
Refrigerator 10
Air-Conditioner 8
Microwave Oven 2

GRAPH 5
Products of LG which is Mostly liked
by customers Sample Size 35

2, 6%
8, 23%
15, 42%

10, 29%

Refrigerators Washing Machine


Microwave oven Air conditonet
Interpretion: - 15 dealers say that customers like LG Refrigerators in
its product line. Microwave gets less point in customer attraction.

Table No 4: - Most preferred brand by customers.

Category Average Sale


Whirlpool 9
Samsung 10
LG 12
Videocon 4

GRAPH 6
Comapany's product mostly
preferred by customers

15
12
10
10 9
Respondent
Dealers
5 4

0
Company

Whirlpool Samsung LG Videocon

Interpretation: - As I surveyed 35 dealers , 12 of themsaid that LG is


the most preferred brand. Whirlpool is in third number, following
Samsung in the brand awareness of customers in Gorakhpur city.
Table No: -5 Main competitor of LG.

Category No. of Respondent Percentage of Respondent


Samsung 20 55%
Whirlpool 10 28%
Videocon 5 14%
Any Others 1 3%

GRAPH 7
Main Competitors of LG

14% 3%

55%
28%

Samsung LG Videocon Any Others

• Interpretation: -I found in survey that, the main


competitor of LG is Sumsung. LG is the market leader so
55% dealer said that Samsung is the main competitor.
Table No: -6 Feature of LG mostly like by customers: -

Category No. of Respondent


Service& Performance 4
Performance 17
Performance&ASS 4
After sale service 10

GRAPH 8

20 Feature of LG which like by customers


17

15
Respondent
Dealers 10
10

5 4 4

0
4
Features
Attribute Performance
Performance& ASS After sale service

Interpretation: - All Dealers says that customers like to exchange


their old product with new LG product.
Table No: - 7 Customers are aware about the exchange offer of LG
Category No. of Respondent Percentage of Respondent
Yes 35 100%
No 0 0%

GRAPH 9

Customers are aware about exchange offer of


LG Sample Size 35 Dealers

40 35

30

20

10

Yes No

Interpretation: - 100% Dealers says that customer wants to exchange


there old products with LG products, they want to utilize this offer.
Table No 8: -Company is giving extra benefit to pull up its Market
Share

Category No. of Respondent Percentage of Respondent


Yes 35 100%
No 0 0%

GRAPH 10
Company is giving extra benefit to pull up its Market Share Sample Size 35
Dealers

No
0%

Yes
100%

Yes No

Interpretation: - All Dealers said that company is giving some extra


benefit to pull-up its Marker share.
Table No: - 9 Satisfaction level of dealers with LG strategies

Category No. of Respondent Percentage of Respondent


Yes 35 100%
No 0 0%

GRAPH 11
Satisfaction level with LG strategies Sample Size 35 Dealers

40
35
35

30

25

20

15

10

5
0
0

Interpretation: - Every surveyed dealer says that we are fully


satisfied with company’s strategy.
Table 10. Complaint against LG product

Category No. of Respondent Percentage of Respondent


Yes 14 40%
No 0 0%
Sometimes 21 60%
Never 0 0%

GARPH 12

Complaint against LG Products

40%

60%

Yes Sometimes

Interpretation: -60% dealers say that they find complaint sometimes


from customers. 40% says that they get complaint on regular basis.
Table 11: - company should adopt different methods to enhance the market
share and growth.

Category No. of Percentage of Respondent


Respondent
Yes 35 100%
No 0 0%

GRAPH 13

Dealers Advise for company


No
0%

Yes
100%

Yes No

Interpretation: - 100%customers said that Company should adopt


different methods like promotional schemes, gifts, exchange offer,
exhibition of company product, road show of products etc time to
time to enhance its sales and market share.
Table No: -12 what dealers do to promote the sales of LG products.

category No. of Percentage of Respondent


Respondent
Exchange Offer 23 55%
Sell on Dealer price 12 45%

GARPH 14

What dealers do to promot sale of Whirlpool

Exchange Offer Sell on Dealer Price

• Out of 35, 55% Dealers says that they are giving exchange
offer and 45% dealers sell their product on dealer price to
promote sale of LG.
Result or Finding

After surveyed 35 dealers of LG and its main competitors of LG like Whirlpool,


Samsung, and Videocon. I calculated the market share of LG in Gorakhpur city
and nearby region is 30%. My sample size is 35 dealers of LG and its
competitor firm. The total sale of LG in period 2007- 2008 was given by
company person is 12000 unit. From survey I got the different total sales figure
of competitors in period 2007-2008: -

Total sale figure of Samsung is 10553units


Total sale figure of Whirlpool is 10225 units
Total sale figure of Videocon is 7144 units

To find the market share of LG in gorakhpur city and near by area the formula
I used was: -
Total sale in units of LG in 2007-2008
Market Share of LG = 100
Total sale of LG + Total sale of competitors

So, Market share of LG = 12000100


12000 + 227922 =30%
Conclusion and Recommendation

As data analysis shown that the total unit sale in initially 2008 is declined in
comparison to total sale of years 2007. It may be a threat for the company.
So company should keep close eye on the market situation. yet, customer
were price sensitive, but the changing market trend and customer view and
preference shown that customer are now quality sensitive .they want quality
product ,good services and better performance by the product. Customers
also looking for other benefited like exchange offers gifts at the time of
purchase, affordable price and more warranty/guaranty year.

After analyzing the whole data gathered by survey it is find that:-

i. Customer like best quality product on any price, so company should


add latest technology to their products.

ii. After sales services is the area where company can highly satisfy the
existing customer, because they can make more customer through their
word of mouth of mouth. So company should provide latest and reliable
service to their customers.

iii. Customers always look for some extra benefit with purchasing. They
demand for affordable price for product and gifts with purchasing.
Company should
iv. Arrange events like “Exchange mela”, free gift offer, scratch card
offer time to time to attract customer and promote the sale.

v. Company should make strategy to cater every income group


customers in city. Upper income group are affordable to purchase but lower
income group is not. So company should make policies to send their product
and every home.

vi. The company should give more emphasis on advertising to create


market awareness and to make a brand image in the minds of investors.

vii. The company should do more publicity through road shows,


newspaper and advertisement. As this will create awareness about he fund
and schemes that are at present managed by the company.

viii. They should keep a close eye on competitor strategy.


Appendices

Questionnaire

Topic: - To find the market share and growth of LG since 2007 to 2008.
1. Since how long you are dealing LG?

(A) Last year (B) last 2 years (c) last 5 years (D) more
than 5

2. What is your perception about LG?

(A) Good (B) very good (C) average (D) less than
avg

3. Which product of LG customers like most?

(A) Washing machine (B) Fridge (C) AC (D) Microwave

4. Are you dealing other companies products also, beside LG?


If yes, what are they?
(A) Samsung.
(B) LG.
(C) Videocon.
(D) Electrolux.

5. What is the total sale of Whirlpool from your showroom in previous year
2006 and this year 2007 so far?

Total sales

6. What was the total sale of these company’s products from your showroom
in previous year and this year so far?
(A)Samsung (B)Whirlpool (B) Videocon (D) Electrolux

7. In your view which companies product customers prefer most?


(A) Whirlpool
(B) Samsung
(C) LG
(D) Videocon
(E) Electrolux

8. Who is the main competitor of LG?

(A) Samsung (B) Whirlpool (C) videocon (D)Any


other

9. What is perception of customers about LG?

(A) Very good (B) good (C) Avg (D) Below Avg.
10. What customers like very much in LG products?

(A) Attributes (B) Service (c) performance (d) after sale service

11. Do customers like to exchange there old products with LG products?

(A) Yes (B) No

12. Is company giving you extra benefit to pull up its market share?

(A) Yes (B) No

13. Are you satisfied with the strategy of company?

(A) Yes (B) No

14. Do you get complaints, reported against LG from customer?


(A) Yes (B) No (C) Sometimes (D)
Never

15. Do you think company should adopt different methods to enhance its
market share and growth?
(A) Yes (B) No If yes specify
---------------------------------
Bibliographie

News paper: - The Economic Times.

Business Standard.

Journals: - Business World, Business Today.

Website: - www.lge.com

Book: - Principle of Management by Philip Kotler.