A PROJECT REPORT ON

STUDYING OF CONSUMER BEHAVIOUR IN AIR CONDITION AND REFRIGERATOR OF LG ELECTRONICS

At LG ELECTRONICS INDIA PRIVATE LTD Submitted By: MONIKA YADAV Roll No : Enrol No : Semester : As per the requirements for the course of the full time Master in Business Management

Under the guidance of

Table of Contents
ACKNOWLEDGEMENT PREFACE INTRODUCTION Consumer Behavior Consumer Satisfaction & Dissatisfaction Consumer Complaint Behavior COMPANY PROFILE About LGEIL Manufacturing Plants Code of Ethics H R Principles Company Structure Vision Corporate Culture Corporate Identity Brand Identity Online Shopping Customer Service Awards & Honors Social Responsibility Strategic Alliances

PRODUCTS PROFILE Air Conditioners Refrigerators RESEARCH METHODOLOGY Research Design Data Collection Methods Execution of Survey Work Analysis & Interpretations

FINDINGS RECOMMENDATIONS LIMITATIONS SWOT ANALYSIS APPENDIX Questionnaires BIBLIOGRAPHY

ACKNOWLEDGEMENT
Success often comes to those who dare and act: it seldom goes to Timid " Jawaharlal Nehru.
Expression of mind by words is a difficult task; I find it when it comes to an appeal of fathomless gratitude and obligation. So, first of all I owe my head heartily to all who have been inspirational, motivating and supportive throughout my project work undertaken and endowed me with the most precious knowledge, the most powerful of all. Yes! My report is the sensible effort of all those people mentioned, or not mentioned here. Still, it is too less to express my deep thanks to them. It is my privilege to extend my deep sense of thanks to LG Electronics India Private Limited for providing all the necessary facilities.

I am immensely thankful to all teaching and non-teaching staff members of my Institute, and last but not least my parents for their cooperation and support to make the dissertation a successful task.

Monika Yadav

PREFACE
3

In the general sense, the most important reason for studying consumer behavior is the significant role it plays in our lives. Much of our time is spent directly in the marketplace, shopping or engaging in other activities. A large amount of additional time is spent thinking about products and services, talking to friend about them, and seeing or hearing advertisements about them. In addition, the goods we purchase and the manner in which we use them significantly influence how we live our daily lives.Consumers are often studied because certain decisions are significantly affected by their behavior or expected actions. For this reason, consumer behavior is said to be an

applied discipline. Such applications can exist at two different levels of

analysis. The Micro perspective seeks application of this knowledge to problems faced by the individual firm or organization. The

micro perspective involves understanding consumers for the purpose of

helping a firm or organization accomplish its objectives. On the macro, or aggregate, level we know that consumers collectively influence economic and social conditions within an entire society. To understanding consumer satisfaction about LG Consumer Durable Products like Air Conditioners and Refrigerators and also know about the consumer opinion about online shopping I choose this topic as my project. I try to cover all aspects related to consumer satisfaction before purchase and after purchase of the product. It provides insight into aggregate economic and social trends and can perhaps even predict such trends. In addition, this understanding may suggest ways to increase the efficiency of the market system of LG Products and improve the well-being of people in society.

EXECUTIVE SUMMARY

During the winter project at LG Elecetronics India Pvt. Ltd, I have very well realized the fact that practical learning is far better than classroom teaching. With this project I have learned how the consumer behaviour pattern works towards the these two product AC and REFRIGERATOR and also how the individual organizations take their decisions and their current investment trend in relation to the various consumer durable products available.

My project STUDYING OF CONSUMER BEHAVIOUR IN AIR CONDITTION AND REFRIGERATOR OF LG ELECTRONICS involves a detailed study of the various consumer perception towards these products . It is then followed by a market research and detail ananlysis in order to know the current most used products and concerns of the dealers and distributors identifying the potential market for this product and their expectations.

The report contains at first, the brief introduction about the company, the products and services being offered by the company, detail ananlysis of different products offered by different companies and then the findings and analysis of the research based on which final suggestions and conclusion has been drawn. I have also put forward recommendations that will help LG India Electronics Private Limited to move a step ahead to be home appliances giant in India.

Introduction
5

CONSUMER BEHAVIOR
The study of consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it.

Consumer behavior may be defined as:

.......... the decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods and services.

CUSTOMERS AND CONSUMERS The term Customer is typically used to refer to someone who regularly purchases from a particular store or company. The term Consumer more generally refers to anyone engaging in any of the activities used in our definition of consumer behavior.

THE ULTIMATE CONSUMER Our primary attention directed towards ultimate consumers, those individuals who purchase for the purpose of individual or household consumption. Studying ultimate consumers also reveals much about industrial and intermediate buyers and other involved in purchasing for business firms and institutions.

INDIVIDUAL BUYER

The most commonly thought of consumer situation is that of an individual making a purchase with little or no influence from other. However, in some case a number of people can be jointly involved in a purchase decision

BEHAVIOUR RELATED TO THE PURCHASE

Once the consumer makes the decision to purchase a product, there can be several types of additional behavior associated with that decision. Two activities are of primary importance: Decisions on the products installation and use Decision on product or services related to the item purchased

Decisions on Product Set-Up and Use One set of implications flow from decision on product set-up and use. Three topics are relevant here: Providing information and assistance Understanding the users consumption system Decision about Warranties

PROVIDING INFORMATION AND ASSISTANCE If the consumer purchases a major durable good such as Air condition, refrigerator and so forth from a full-service retailer it would ordinarily require the store to carefully install or set up the product and explain its operation to user. The importance of information on product set-up and use becomes even more critical in todays self service economy. Consumers are buying many complicated products from self-service discount outlets which may offer very little product knowledge or installation assistance. As a result, they must rely almost exclusively on whether literature comes with the product. Such a situation provides an added impetus for manufactures to asses their product literature and makes sure it is readable and understandable.

UNDERSTANDING THE USERS CONSUMPTION SYSTEM Even more fundamental than the provision of the information to consumers is the marketers first understanding how his product is used by consumer and how this product fits into the consumers Consumption System. For example, the marketer needs to know how his product is used by consumers, not only to make improvement in its Quality and Functions, but also to suggest new users for it. If marketer were research more thoroughly the use-environment and behavior of their product prior to full-scale launching, we would undoubtedly see fewer failures and products more carefully attuned to consumers lifestyle. DECISIONS ABOUT WARRANTIES A related factor concerning product setup and use has to do with product or service warranty, which is promise by the manufacturer or seller that the product or service is free from defects in materials and workmanship and that problems will be corrected if failure occurs during the warranty period. An effective warranty can offer several consumer benefits including the following: Providing assurance of product quality and value Increasing self-confidence about correctness of product choice Reducing feelings of risk of ownership because of return or refund privileges Reducing dissonance because if warranty assurance of Quality Today, marketers are using warranties more as a competitive offensive weapons than as a defensive tool. A properly administered warranty program should include the following components: Use simple, clear and easy-to-understand warranty wording Encouraging customers to use the warranty Clarify who will execute the program and what standards must be met

Handle claims expeditiously and flexibly Collect, analyze and use warranty information Constantly monitor consumer and dealer response to invoking warranty Promptly reimburse dealers or agents for warranty work Monitor and control costs

DECISION ON PRODUCT OR SERVICES A second factor for the marketer to consider with regard to post purchase activities concerns buyers interests in related products and services. This is another area of potential profit that should be actively cultivated. Because Buyers may become interested in related items, they need to be made aware of the potential products that exist. Thus, literature enclosed with a product could present other products in the line. Thus, the marketers tasks are to determine what product mix is most appropriate to the firms. This is largely a function of applying the marketing concept to identify products that may be related in nature and can be effectively marketed.

CONSUMERS SATISFACTION/DISSATISFACTION
Satisfaction is an important element in the evaluation stage.

Satisfaction refers to the buyers state of being adequately rewarded in a

buying situation for the sacrifice he has made.

Adequacy of satisfaction is a result of

matching actual past purchase and consumption experience with the expected rewards from the brand in terms of its anticipated potential to satisfy the consumers motives.

The concept of satisfaction is one about which there are presently few agreed upon definition or approaches to measurement. Hunt has summarized the concept in the following statement:

Satisfaction is a kind of stepping away from an experience and evaluation it..One could have a pleasurable experience that caused dissatisfaction because even though pleasurable, it wasnt as pleasurable as it was supposed or expected to be. So satisfaction/dissatisfaction isnt an emotion, its the evaluation of an emotion.

Consumer

from

certain

expectations

prior

to

the

purchase.

These

expectations may be about: The nature and performance of the product The cost and efforts to be expended before obtaining the direct product or service benefits The social benefits or costs accruing to the consumer as a result of the purchase Advertising may often to be important factor influencing these expectations. Consumer may have a variety of product performance expectations, includes what the consumer hopes performance will be in terms of an ideal level, what would be fair and equitable given the consumers expenditure of time and money in obtaining and using the product, and what the consumer expects to actually occur. Once consumers purchase and use a product, they may then become either satisfied or dissatisfied. Research has uncovered several determinants which appear to influence satisfaction, including demographic variables, personality variables, expectation and other factors. For example, older consumers tend to have lover expectation and to be more satisfied. Higher education tends to be associated with

10

lower satisfaction. Men tend to be more satisfied than women. The more confidence one has in purchase decision making and the more competence in a given product area, the greater ones satisfaction to be. The interaction between expectation and actual product performance

produces either Satisfaction or Dissatisfaction. However, there does not appear to be merely a direct relation between the level of expectations and the level of satisfaction. Instead, a modifying variable known as Disconfirmation of Expectation is thought to be a significant mediator of this situation. When a consumer does not get what is expected, the situation is one of disconfirmation. Such disconfirmation can be of two varieties: a POSITIVE disconfirmation occurs when what is received is better than expected, and a NEGATIVE disconfirmation occurs when things turn out worse than anticipated. Thus, any situation which judge the consumers judgment is proven wrong is disconfirmation. Confirmation occurs if the expectations of performance are met. Consumers expectations from product as well as whether those expectation are met, are strong determinants, then, of satisfaction. The emotional context in which product failure occurs may affect consumers subsequent information processing. Research on the satisfaction/dissatisfaction process has led to the proposition that disconfirmation is mediated by attribution processing in which consumers seek to understand why product fail. Consumers seek to know three features about the causes of a problem: Stability (i.e. is it temporary or permanent) Locus (i.e. the problem with the consumer or the company) Controllability (i.e. is the problem within or outside the control of someone)

Research on attributes also indicates that attributes can lead to specific types of emotional reactions. For example, if a consumer is in an angry mood because of

11

the days events prior to ordering a meal in a restaurant, he is liable to engage in greater attribution processing over a poor meal being served than if the consumer were not in a bad mood. Emotional context, therefore, interacts with disconfirmation to affect attribution, which results in certain emotions influencing satisfaction or dissatisfaction. The result of satisfaction to the consumer from the purchase of a product or service is that more-favorable post purchase attitudes, higher purchase intentions, and brand loyalty are likely to be exhibited in a similar purchasing situation. Thus, as long as positive reinforcement takes place, the consumer will tend to continue to purchase the same brand. It is true, however, that consumers will sometimes not follow these established patterns but will purchase differently simply for the sake of novelty. On the other hand, if consumers are dissatisfied, they are likely to exhibit less-favorable post purchase attitudes, lower or nonexistent purchase intentions, brand switching, Complaining Behavior and negative word-of-mouth.

12

Company Profile About LGEIL

LG Electronics India Pvt. Ltd. (LGEIL), a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 in India after clearance from the Foreign Investment Promotion Board (FIPB). It is one of the youngest consumer durable brands in the country today, encompassing an impressive portfolio of Colour Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators (Direct Cool and Frost Free), PCs, Vacuum Cleaners, optical storage devices and GSM mobile phones. During the thirteen years of its existence in India, LG has earned a premium brand positioning due to its superior quality, high product performance, revolutionary technological delivery and warm service. In fact, today LG is recognized as a leader in setting industry norms starting with the fastest evernationwide reach, latest global technology and product innovation. The company aims to achieve a turnover of Rs. 10,000 crore in 2006 and an enviable position in the GSM mobile phone market with plans of setting up a new GSM plant at Pune. LG has been able to craft out in eight years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment Various studies have shown that the consumer is well informed on the health awareness front. LG was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. Its vision was to become a 'Health Partner' for its consumers worldwide and therefore

13

formulated its corporate philosophy to make peoples' lives better, convenient and healthier. The entire range of LG air-conditioners have 'Health Air System', which not just cools, but keeps pollution out. Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN System', which preserve the nutrition in food and washing machines have 'Fabricare System', which takes the health factor down to ones clothes. All the products offered by the company have unique technologies, developed by its R&D departments that give customers a healthier environment to live-in. Financial Performance Turnover Turnover Turnover Turnover Turnover Turnover Turnover Turnover Turnover for for for for for for for for for 1997 1998 1999 2000 2001 2002 2003 2004 2006 Rs. 125 Crores Rs. 485 Crores Rs. 1056 Crores Rs. 1903 Crores Rs. 2216 Crores Rs. 3178 Crores Rs. 4653 Crores Rs. 6488 Crores Rs. 8236 Crores

The year 2001 witnessed LG becoming the fastest growing company in the consumer electronics, home appliances and computer peripherals industry. The company had till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and home appliances industry. Having achieved this milestone, LG achieved another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. LG is poised to surpass its turnover target of Rs. 10,000 Crores next year. This year, LG has emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and

Microwaves Ovens. In Colour Televisions having set the sales target of one million

14

units of Color Televisions for 2005, LG has already achieved the one million mark in the month ahead of its target. LG India will become the export hub for LG worldwide catering to the Middle East and African markets. The company aims to touch an export turnover of USD 3 billion by 2010, which will contribute to 30 per cent of LGEILs turnover. LG Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to over 50 lakh households in India.

Manufacturing Plants
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Ecofriendly units amongst all LG manufacturing plants in the world. LG Electronics India announced the operations of its second Greenfield facility at Ranjangaon, Pune 06 October 2004. The new plant in addition to its current manufacturing facility at Greater Noida, U.P. (on the outskirts of Delhi) will enable

15

the company to expand its consumer reach and ensure better supply chain management that would translate into a faster response time.

The new Greenfield facility is a wholly owned subsidiary of LG Electronics India located at Ranjangaon, 50 km from the city of Pune. Covering over 50 acres, the facility will be manufacturing Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens and Color Monitors by the end of 2005. The plant that involves an investment of Rs.150 Crore (32 million USD) till 2005 will commence operations now. The facility will involve an Investment of USD 60 million by the year 2010. The companys announcement came in line with its strategy of attaining an overall market leadership in India in GSM market after being leaders in the Consumer Electronics and Home Appliance.

Company Structure
LGEIL Management Structure and duties related to them are following: MD (Managing Director) is responsible for all activities running by LGEIL. VP (Vice President) is responsible for all activities related to Human Resource & Management Structure. Factory Head is responsible for activities related to Production HOD (Head of Department) supervises the activities of LGEIL across India. PGH (Product Group Head) supervise activities related to a particular product.

16

Name
K R Kim Y V Verma Sanjay Arora S N Rai Girish V Rao Amit Gupta Salil Kapoor Arindham Bose S N Ajmera P K Gupta Ashish Aggarwal Abhay Sood R Manikandan Anil Arora Chetan Bajpai C M Singh Dhananjay Chaturvedi Prasanna Raghwan Praveen Velecha Rajeev Jain Ajay Bajaj Saurabh Baisakhiya

Department

Designation
MD, LGEIL

Email ID's

HR & MS Production Logistics & Commercial Sales Sales Planning & Administration Marketing IT Products Finance Account Corporate Planning Management Audit & Support IT Products Refrigerators Commercial Air Conditioners Consumer Electronics & GSM Institutional Sales PDP's & Home Entertainment GSM Washing Machine AC's MWO & VC

VP Factory Head HOD HOD HOD HOD HOD HOD HOD HOD Team Head PGH PGH PGH PGH PGH PGH PGH PGH PGH PGH

yverma@lgezbuy.com bsg@lgezbuy.com srai@lgezbuy.com girishrao@lgezbuy.com amitg@lgezbuy.com skapoor@lgezbuy.com abose@lgezbuy.com sajmera@lgezbuy.com pgupta@lgezbuy.com aggarwal@lgezbuy.com asood@lgezbuy.com mani@lgezbuy.com aarora@lgezbuy.com cbajpai@lgezbuy.com csingh@lgezbuy.com dchaturvedi@lgezbuy.com prasanna@lgezbuy.com praveenvalecha@lgezbuy.com rajivjain@lgezbuy.com ajaybajaj@lgezbuy.com pvaisakhia@lgezbuy.com

LG Electronics pursues its 21st century vision of becoming a true global digital leader who can make its customers worldwide happy through its innovative digital products and services.

LG Electronics sets its mid-term and long-term vision anew to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010. As such, we embrace the philosophy of "Great Company, Great People" whereby only great people can create a great company, and pursue two growth strategies

17

involving "fast innovation" and "fast growth." Likewise, we seek to secure three core capabilities: product leadership, market leadership, and people-centered leadership

Growth Strategy
Fast Growth: Fast growth is the result of strategies designed to expand the market size and earnings quickly, in the process improving the growth rate in terms of monetary value rather than quantity.

Fast Innovation: Fast innovation involves setting extremely high innovation goals and securing a competitive edge, aiming for a target of 30% more than what our competitors can do. Fast innovation also means 30% more sales and improvement in our market share, new product development and unveiling these 30% faster, technology development and establishment of corporate value three years ahead of competitors.

Core Capabilities
Product Leadership: Refers to the ability to develop creative, premium products through specialized new technologies.

Market Leadership: Refers to the ability to achieve the "LG brand is No. 1" goal backed by its formidable market presence worldwide.

People Leadership: Refers to talented people who perform excellently by internalizing and practicing innovations.

18

Corporate Culture
Though a company implements perfect management strategies and boasts of outstanding and talented people, it should have an appropriate corporate culture to unleash the power of these capabilities.

No 'No'- Challenge: We foster a corporate culture whereby we suggest an alternative before saying "no" and aggressively work towards fulfilling our goal.

'We' not 'I': We pursue a corporate culture whereby we embrace a strong teamwork.

Fun to work : We create a workplace where individuals' creativity and freedom are respected and working is made fun.

Corporate Identity
LOGO of LG Electronics
Symbol Mark The letters "L" and "G" in a circle symbolize the World, Future, Youth, Humanity, and Technology. Our philosophy is based on Humanity. Also, it represents LG's efforts to keep close relationships with our customers in the world.

19

The logo consists of two elements; the LG letterforms in LG Grey and the face symbol in the unique LG Red color. Red, the main color, represents our friendliness, and also gives a strong impression of LG's commitment to the best. Therefore, the shape or the color of this symbol mark must never be changed

Colors for Signature Symbol mark and Logotype based on positive engraving method The reproduction of LG colors must be carefully monitored to achieve the highest fidelity to the original and any modifications could cause misunderstanding or misrepresentation of the LG identity. Therefore, it is important to use the colors that are shown here. Red(LG Red / Pantone 207C) and gray(LG Gray / Pantone 431C) are the most recommended, but gold(LG Gold), silver(LG Silver), and black(LG Black) could be used under certain circumstances. Appropriate color use is essential for the accurate use of LG's signatures.

LG Slogan / Signature

"Life's Good" signature is an expression which reflects our belief that life is enriched and enhanced by products that are ingeniously designed and expertly built.

20

"Life's Good" expresses the heart or 'attitude' of LG world-wide.

"Life's Good" also expresses our will to provide solutions for an enriched, good life by continuously developing innovative and delightfully smart products.

"Life's Good" is a brand promise that delivers on our conviction in making your life good.

The LG Electronics Life's Good signature consists of the LG logo and the LG letters and the slogan Life's Good, set in the Charlotte Sans typeface, curved around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature helps to clearly identify and connect every division and product form LG Electronics across the globe.

Online Shopping
Touch-and-feel. It's an innate part of a consumer-durable purchase that can be experienced on the Internet in an Arthur C. Clarke novel, of course! It is a futile exercise for Indian companies to retail consumer durables using the Net as an

21

independent medium. However, a few durable majors and even fewer entrepreneurs still have their eye on the virtual world with their feet firmly planted in the real one. And four web models - company-owned online services, auction sites, web portals as a platform for sale, and entrepreneurial routes like B2B2C - have reported healthy growth in revenues.

In

March,

2001,

the

1,500-crore

LG

Electronics

India

launched

www.lgezbuy.com to offer an alternative channel for consumers. It was, after all the first major initiative by a consumer appliance company in India to leverage the power of Internet. While net penetration was still low in India, there was nothing to stop manufactures from bypassing stores like his hand and instead connecting directly with consumers. In fact, LG had done just that with www.lgnana.com in Korea, where it had bypassed the trade and chosen to sell directly to consumers.

LG has chosen an entirely different model here to circumvent the problems of channel conflict which have plagued manufactures the world-over. After LGs online business was launched, LG has hand-picked 99 other dealers, 30 run its exclusive showrooms to be part of its online business. So far, LG is limiting itself to 18 cities, where Net connections are stable. LG has notched up Rs. 6 crore in sales. Its not small beer www.rediff.com, Indias premier portal, reported Rs. 8 crore in ecommerce revenues. Whenever a customer visits the LGs website and orders a product from the catalogue, the information reaches its division located at the Greater Noida factory. The order is then forwarded to the relevant LG branch office. The branch Office, in turn, passes the order to the internet dealer through email, fax or phone. After the dealer has delivered the product to the customer and collected the payment., he

22

then faxes delivery challan to the LG office as proof of delivery. If the customer pays by credit card, LG offers an additional 2% margin.

Since volumes are currently small LG has chosen to limit the number of Net dealers to one in every major locality. Its a win-win situation. The dealer does not have to make any investment of own in software. Whats more, it helps him develop a relationship with a well-heeled, upscale clientele.

LG has chosen a sensible merchandising policy. Much of the product mix online is relatively high-end. Although the 21-inch CTVs available, the focus is on its MP3 player and recordable CDs, which are exclusively available online. Most dealers are loath to stock such high-value, low-off take items and since the typical surfer is an early adopter of cutting edge tech products, the Net becomes an excellent showcase.

Customer Service
LGEIL enjoys extensive service Network across the length and breadth of the country. At present LG boasts of more than 700 Service Centres.

Apart from it, LG also focusing on: Service Centre Networks Call Centre Numbers Product wise Service Centre commitment of response time

23

LG also launch a website www.lgservice.com for the consumer problems and complaints about LGs products. Consumer first log on to website and fill all details about product like product, model number, date of purchase, address and description of problem face by consumer. After filling the Form consumer get the Complaint Number. Now company takes necessary action for the resolution of complaint as soon as possible after receiving the complaint. Consumer can also give feedback about product he/she using. The camp aim is at educating the customers about consumer durables and its maintenance. The engineer at the camp guides the consumers by educating them on the maintenance of the LG products. In addition, the customers could also avail free service and attractive discount of 15% on spare and 15% discount on annual service contracts of all LG electronics appliances. For LG products a service centre with a turn-around time of two days are convene that assure to make the product as good as new.

Awards & and Honors

Consumer Durable Retailer of the Year 2005
LG was presented the

Consumer Durable Retailer of the Year Award 2005 , for

outstanding performance in retailing. This award is considered as the biggest retail award in India and hosted by ICICI. These awards were instituted along with Indias leading consultancy firm in the retail segment, KSA Tecnopak, as the knowledge partner. Interestingly, for the first time in India, direct consumer feedback was taken at retail stores for the shortlisted entries and LG being the favorite, won the award for it retail excellence.

LG achieved Best Newsmaker in Consumer Durables in 2005

24

The Business Today - Cirrus review of 50 companies witness a measure of image management. LG ranked No. 1 achieving

Best Press in Consumer Durables

Category. The clear winner left its competitors way behind, beat in all the three
scores Total image score Total visibility score Quality of exposure LG has attained the 12th position among the top 50 companies on the Business Today- Cirrus list. It has also ranked No. 5 in marketing and sales activities among various industries.

EFY Electronics Organization of the Year Award and Award for Best Product Category in Television Sets
LGEIL was named the EFY Electronics Organization of the Year 2005 for excellence in electronics. LG also received the EFY Readers Choice Award for

Best Category in

Television Sets. This award is received as the countrys top honor in the field of
electronics. It was given away in New Delhi on February 10, 2005 at the Habitat Centre. The objective of the award is to recognize excellence in electronics across various products, including components.

LG bags the Coveted NASSCOM Indian IT Users Award

The award was given on the basis of a survey conducted by NASSCOM in association with IMRB. In addition to the survey, a special team at IMRB and NASSCOM conducted physical audits for top three companies in each category. More than 200 companies participated in the award evaluation on innovation basis.

LG ranked among worlds Top Three Companies

25

LG Electronics Inc., the $38 billion leading global manufacture of consumer electronics, home appliances, mobile phones and information technology products, has been ranked among the worlds top three technology companies and as the 10 th biggest in current sales by Business Week magazine. Appearing in the Info Tech 100 issue of June,2005, this annual feature spotlights an elite group of the worlds most influencing technology firms, the Best Performers in the global business market place. Based on financial data from Standard & Poors, Business Week evaluated the performance of different companies over the past 12 months and ranked them on the basis of specific criteria, including total revenue, revenue growth, return on equity and Shareholder return. The Info Tech 100 list is compiled annually by Business week based on 10,000 publicity traded corporations, and subsequently, LGs top 2004 ranking recognize the successful growth and strategic focus, the company has achieved over the past years.

Social Responsibility
LG is making efforts to minimize environmental pollution and to prevent accidents which might occur during business operations, to promote a policy to preserve the natural environment and contribute to the overall health of our employees and communities where we conduct our business. The importance of environmental, safety, and health issue is increasing, and demands a more active social role on behalf of our business circle. At the same time, environmental and health policies provide new opportunities to create and nurture new values.

26

Motivated by this trend and recognizing that the environment, safety, and health are significant topics to be discussed in management activity, LG is striving to improve the environment, as well as the safety and health of our employees through the accumulated experience and innovative technology as well as developing close cooperation with regional society. LG employees are committing themselves towards sincerely fulfilling

individual responsibilities in laying down a foundation for a prosperous future. LG will consider environment, safety, and health issues during all phases of management activity and consider it as an opportunity to value creation for our clients. LG will set strict standards in conjunction with the laws related to the environment, safety, and health.

27

Strategic Alliances
As a response to the rapidly changing digital era, LG Electronics is aggressively pursuing global partnership in selected business and technology areas by

establishing wide ranging strategic alliances with world leading companies.

In particular, with focus of digital management moving turning toward becoming first mover in the market and leading the industry standard, LG Electronics is concentrating on strengthening strategic alliances in the digital TV industry.

Products Profile
LG Electronics was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. Its vision was to become a 'Health Partner' for its consumers worldwide and therefore formulated its corporate philosophy to make peoples' lives better, convenient and

28

healthier The entire range of LG air-conditioners have 'Health Air System', which not just cools, but keeps pollution out. LG Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to over 50 lakh households in India.

AIR CONDITIONERS
LGs Air Conditioners are feature packed for unmatched performance. Each model being styled with internationally designed grills and sleeks body contours. All power packed with state-of-art features. Just to ensure that everyone in the house stays healthy and active. Air Conditioners are divided into three categories.

COMMERCIAL AIR CONDITIONERS

Ceiling Cassette

29

Features

This is a high aesthetic value machine and is mounted flush with the ceiling, exposing only 30 mm grills. The 4 Way air Distribution patterns make it ideal for commercial uses like showrooms, malls, restaurants, corporate board rooms as well as domestic applications like large living rooms.
Key Features

Capacity: Available in 1.5/2.0/3.0 /4.0 Tons

Plasma Air Purification System Jet Cool Group Control Sleep Mode Self Diagnosis Function Auto Restart Operation Two Thermistor Operation High Ceiling Corresponding Operation

Floor Mounted Package

Features These are Floor Mounted Package Units. These are ideal for offices, factories, shopping malls, multiplexes, hotels etc. The special feature of the machine is, having low noise level and high EER because of scroll compressors. Key Features

Capacity : Available in 11 & 16. 5 Tons

Easy Installation Compact and Light-weight Design All with Scroll Compressor High EER Long Refrigerant Piping Multiple Compressor System

LARGE AIR CONDITIONING SOLUTION

Single Packaged (Roof Top)

30

Features These are Self contained Unitary Systems which are mounted on the roof or outside the area required to be conditioned. These are ideal for Single Storey and Double Storey structures due to the high static available Applications range from factories, shopping malls, multiplexes, hotels etc. Key Features

Capacity : Available from 15 to 30 TR

Compact Design Easy Installation Low Noise Level Multiple Compressor System Easy Maintenance and Service Large Centrifugal Fan and Variable Pulley Non Glasswool Insulation

Variable Refrigerant Flow System (Multi V):

Features A Variable Refrigerant Flow (VRF) system is a Vapor Compression System with Inverter compressor, where, the compressor motor speed is varied-- to meet the required room load. Key Features Power Saving up to 40 %. Long refrigerant pipe length of 120 Capacity : from 5HP to 40HP in R-22 And 5 to 10 HP is also available in R-407c Application : Residential, Restaurants, Office Buildings, Hotel Industries, Hospitals, etc

Meters. Capacity Modulation from 10% to 130 % Selection of different Indoor units according to Interior Individual Control of each Indoor Unit with remote Precise control of room temperature. Available in Cooling Only and HEAT PUMP Models
Self dignosis Function Auto addressing of Indoor units Out door unit urethane molding

ROOM AIR CONDITIONERS Room Air Conditioners divided into Four Categories.

31

WINDOWS AIR CONDITIONERS

Model Description 2.0 Ton Windows Ac

LWA22G1RAE1

Key Features

Anti-Bacteria Filter EnergyGuard Dry Mode Cooling Capacity-22000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-4-Way Air Deflection Air Ventilation-Provided(Manual) Temp. Control-Thermistor

LWA19H1RAT5
Model Description 1.5 TON WindowsAc Key Features Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection

LWA22G1NA1
Model Description 2.0 Ton Windows Ac

Air Ventilation-Provided Manual Temp. Control-Thermistor

Key Features

Anti-Bacteria Filter Cooling Capacity-22000 Operation Control-Mechanical

32

Fan Speed Cooling/ Fan-3/2 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation Temp. Control-Thermostat

LWA19H1RDL5
Model Description 1.5 Ton, Windows AC Key Features

Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Energy Guard Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation-Provided Manual Temp. Control-Thermistor

LWA12K1RPE5
Model Description 1.0 Ton, Windows AC Key Features

Anti-Bacteria Filter 88 Segment Display+ Dry Mode Cooling Capacity-13200 Filter Cleaning Indicator Energy Guard Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-12-Way Air Deflection Temp. Control-Thermistor

LWA18A1NA1
Model Description 1.5 Ton, Windows AC Key Features

Anti-Bacteria Filter Anti-Corrosive Gold Fins 88 Segment Display+ Rotary Compressor Sleep Mode With Off Timer

33

Dry Mode Cooling Capacity-18000 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation

SPLIT AIR CONDITIONERS

LSB24S1RAE1
Model Description 2 Ton, Split AC Key Features Cooling Capacity-24000 Jet Cool Log Smart Sleep Mode Fan Speed(Cooling/Fan)-4/3 Auto Air Swing Air Direction-4-Way Air Deflection Temp Control-Thermistor On/Off Timer Dry Mode Chaos Air Flow Logic

FLOOR STANDING AIR CONDITIONERS

LP-K3065QC
Model Description Floor Standing AC Key Features Timer setting Temp. Control Thermistor Soft dry operation Remote controller Simple Refrigerant gas R-22 Jet Cool Indoor Display Set Temp Fan Speed COOLING / FAN 4 Compressor Recip

34

Auto Air Swing(2 way) Provided Air Direction 4 Way Air Discharge Horizontal

MULTI SPLIT AIR CONDITIONERS

LM-3661C2I
Model Description Multi Split AC Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way Air Discharge Bottom

LM-2461C2I
Model Description Multi Split AC Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way Air Discharge Bottom

WHISEN AIR CONDITIONERS

35

LWA-22H1RDL1
Model Description 2 Ton, Windows AC Key Features Temp. Control Thermistor Chaos Air Flow Magic Time Delay Function On/Off Timer Sleep mode Soft dry operation Fan Speed (COOLING/FAN) 4/3 Auto Air Swing Air Direction 3-Way Air Discharge Left/Right/Bottom Time Delay Function

REFRIGRATORS
LG refrigerators divided into Four major categories:

SEMI FROST FRIDGE

36

GL-26TMQSFF
Model Description SFF Ref Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

GL-23TMTSFF-225L
Model Description 225 Ltr. SFF Ref Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

GL-19GMRSFF
Model Description SFF Ref Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

DIRECT COOL

37

GL-231GPRX
Model Description 230 Ltr. Capacity Direct Cool Refrigerator Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-201TPQX
Model Description 200 Ltr. Capacity A-One Direct Cool Refrigerator

] Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GL-191RPDX
Model Description 190 Ltr. Capacity A-One Direct Cool Refrigerator Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-181TPLX

38

Model Description 175 Ltr. Capacity Direct Cool Refrigerator

Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-181TPQX
Model Description 175 Ltr. Capacity Direct Cool Refrigerator Key Features Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-181RPGX
Model Description 175 Ltr. Capacity Direct Cool Refrigerator Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

FROST FREE

GR-S592QLC
Model Description Ice Beam Door Cool Refrigerator Key Features Kangaroo Tray Deodoriser

39

 F.I.R Lamp Sliding Door Bin Ice Tray Anti -Bacteria Seal Door Finish-Power Coated /PCM Cell Fresh Crisper Color Options Champagne Gray Glossy Green Super White Silky Grey Super Inox Moon Silver Metallic Finish

GLT322GP
Model Description Frost Free Ref Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

GL-T262GP
Model Description Frost Free Ref Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone External MICOM Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

GL-242QP
Model Description 230 Ltr. Frost Free Key Features Deodoriser F.I.R Lamp Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

40

SIDE BY SIDE REFRIGRATORS

267 NGB-Wood Cherry Perspective

Model Description DIOS Ref Key Features 610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar

GRP267FTB
Model Description DIOS Ref Key Features 610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar

Research Methodology
The purpose of the methodology is to describe the research procedure. The methodology will reveal why a particular design is being used for conducting research. RESEARCH DESIGN:

41

A research design is the specification of methods and procedures for acquiring the information needed. It is the over-all operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures. Research design denotes the description of the research design. The aim was to collect relevant information, which fulfills our requirement and can be analyzed at a later stage of study without any problem. This was to be done in minimum expenditure with least efforts and in a set period of time. For my project I select DESCRIPTIVE RESEARCH DESIGN to know Consumer Satisfaction about LG products. This helped us in having enough provision for protection against bias and maximizes reliability. DESCRIPTIVE RESEARCH: Descriptive study, as its names implies, is designed to describe something for example, the characteristics of the users of a given product, the degree to which product use varies with income, age, or other characteristics, or the number who bought a specific air conditioner, colour television, microwave oven, refrigerator, washing machine. Advantages of Descriptive Study: Involve relatively large number of observation Analysis is more objective Averages and Percentages are calculated

DATA COLLECTION METHOD: The methodology reveals the methods of data collection. There may be primary sources and secondary sources of data collection.

Collecting Secondary Data:

42

After deciding our objective I looked for collecting and studying secondary data. It included extensive study of literature available in Annual reports of LG Electronics India Private Limited, articles, newspapers, journals, magazines, handouts,

pamphlets describing the company and its products. Studying of secondary data gave us an insight into the problem into hand. It also provided us with clues and helped in designing primary research. It provided us a more accurate picture about the functioning of LG Electronics India Private Limited.

Collecting Primary Data: The objective of primary data is formulated on the basis of research objectives. Objectives set the guidelines and directions of research planning. Formulating the objectives offers the best feasible means of solution. The primary data for my study was being collected by conducting survey. The tools for data collection used was following types -

Telephone Interview: The telephone interview is used in lieu of personal interviews. It is used because information has to be collected quickly and inexpensively. By it I asked the consumer about their satisfaction about LG Air Conditioners, Colour Television, Microwave Oven, Refrigerator, Washing Machine. The Direct and Structured questions are asked from consumers. Questionnaires: This method of data collection is quite popular, particularly in case of big enquiries. A questionnaire is a method of obtaining specific information about a defined problem so that data, after analysis and interpretation, results in a better appreciation of the problem.

43

In order to motivate respondents and to get best of the information from them, it was tried to build questionnaire that is interesting, serve our objective, unambiguous and easy to complete and is not burden someone. The aim was to enable ease in analysis and facilitate easy classification of response to get meaningful outcome within acceptable limits. A few questions were in disguised, where the true purpose was hidden but was sufficient to bring in the right information from respondents. Depending on the requirement, the questions were kept open ended and closed ended. The sequence of question in questionnaire was kept in a logical order. It included question based on Linkert Scale, where attitude was to be studied and rank order scale where ranking was required. After following a series of trial and changes the finally evolved questionnaire was being used for survey work. I used the following types of Questionnaires for LG Products: Air Conditioners Questionnaire Refrigerator Questionnaire

EXECUTION OF SURVEY WORK: The survey work is that was done to collect primary data. In this phase we conducted Consumer Survey by using questionnaires. I individually approached to individuals and got the questionnaire filled by them. The individuals were randomly chosen. For collecting data I focused divided the consumers in six categories: Consumers of Air Conditioners Consumers of Refrigerator For first five categories I take the sample of 100 consumers in each category, for last one I take the sample of 78 consumers. As a results customer survey, I was able to pool 578 records in our database. For database, I take the lists of buyers of LG Products of previous 3 years. With it, I also take the list from Service Centre of those consumers who complaint about product performance and problems. For

44

survey about online shopping, I take the list from Noida of those consumers who bought product as well as who inquiry about products but not bought through it Online Shopping in Delhi NCR region. ANALYSIS AND INTERPRETATION: After collecting the questionnaire filled, I scanned each of entry ensuring that all relevant information required for analysis is available and is in the form through which we can analyze. Adjusting was made where required keeping in mind that it does not hampers the outcomes of our objectives. Editing of data collected was done to detect errors and omissions and such corrections were made where required. Further, coding of responses to assign numerated or symbols was done for easy and fast analysis. Adopting suitable classes like Poor, Fair, Good, Very Good, Excellent helped in grouping and categorization of responses. The data after collection, correction and classification was processed and analyzed and compared in accordance with the outline made for the purpose at the time of developing research plan. The classified data was finally subjected to cross tabulation analysis and represented graphically for easy interpretation of results.

Findings
Findings are the results of the study. To know about consumers satisfaction about LG products like Air Conditioners,Refrigerators, 2 questionnaires designed on following ground: Quality of Product Features Quality of Product Performance Quality of the Dealership Quality of Dealer Salesman Quality of the Delivery Process Quality of after Sales Service & Repairs Quality of Complaint Management & Resolution

45

Value for Money

The following analysis was done to obtain the findings in accordance with our objectives determined during the course of study.

AIR CONDITIONERS
To know about Consumer Satisfaction about LG Air Conditioners following Questions asked in the Air Conditioners Questionnaire: Quality of Product Features Quality of Product Performance Quality of the Dealership Quality of Dealer Salesman Quality of the Delivery Process Quality of after Sales Service & Repairs Quality of Complaint Management & Resolution

According to Questions of Air Conditioners Questionnaire following facts were revealed: Sample Size: 100 Consumers Poor Fair Good Very Good Excellent

Quality of Product Features Quality of Product Performance Quality of the Dealership Quality of the Dealer Salesman Quality of the Delivery Process Quality of after Sales

33

47

15

38

43

15

30

49

18

43

42

13

0 2

1 2

38 35

50 48

11 13

46

Service & Repairs Quality of Complaint Management & Resolution 2 2 36 44 16

Figures are shown in Percentages

INTERPRETATIONS:
According to obtained Data, I divided the Consumers in three categories to judge the overall performance of the Air Conditioners: Below Expectation: It is the Mean of those Consumers who rated Air Conditioner Poor and Fair. Those consumers fall into the category of Dissatisfied Consumers. Meeting Expectations: It is the Mean of those Consumers who rated Air Conditioner Good. Exceeding Expectation: It is the Mean of those Consumers who rated Air Conditioner Very Good and Excellent. Those consumers fall into the category of Delight / Satisfied Consumers.

ONS INTERPRETATIONS OVERALL PERFORMANCE

Below Expectations Meeting Expectations Exceeding Expectations

3.26

36.14

60.60
Figures are in Percentages

Following is the result of Consumer Satisfaction about LG Air Conditioners: Dissatisfied Consumers Delight Consumers : : 3.26% 60.60%

47

REFRIGERATORS
To know about Consumer Satisfaction about LG Refrigerators following Questions asked in the Refrigerators Questionnaire: Quality of Product Features Quality of Product Performance Quality of the Dealership Quality of Dealer Salesman Quality of the Delivery Process Quality of after Sales Service & Repairs Quality of Complaint Management & Resolution

According to Questions of Refrigerators Questionnaire following facts were revealed: Sample Size: 100 Consumers Poor Fair Good Very Good Excellent

Quality of Product Features Quality of Product Performance Quality of the Dealership Quality of the Dealer Salesman Quality of the Delivery Process Quality of after Sales Service & Repairs Quality of Complaint Management & Resolution

39

48

11

36

51

11

42

49

38

51

40

47

10

48

35

11

45

39

Figures are shown in Percentages

48

INTERPRETATIONS:
According to obtained Data, I divided the Consumers in three categories to judge the overall performance of the Refrigerators: Below Expectation: It is the Mean of those Consumers who rated Refrigerator Poor and Fair. Those consumers fall into the category of Dissatisfied Consumers. Meeting Expectations: It is the Mean of those Consumers who rated Refrigerator Good. Exceeding Expectation: It is the Mean of those Consumers who rated Refrigerator Very Good and Excellent. Those consumers fall into the category of Delight / Satisfied Consumers.

ONS INTERPRETATIONS OVERALL PERFORMANCE

Below Expectations Meeting Expectations Exceeding Expectations

3.71

41.14

55.15
Figures are in Percentages

Following is the result of Consumer Satisfaction about LG Refrigerators: Dissatisfied Consumers Delight Consumers : : 3.71% 55.15%

49

Recommendations
1. LG Electronics should give more attention on its Quality of After Sales Services because it helps the company to increase customers satisfaction and retain the customers.

2.

LG Electronics should give more advertisement in Magazines & Newspapers to remind the people about their new ranges of products.

3.

LG Electronics should maintain the communication through feedback. They should take time-to-time feedback from dealer about customer satisfaction to know about the customer perception about durable products.

4.

LG Electronics Consumer Durable Products should be economical in price.

50

5.

LG Electronics should find out the factors are being looked for which the customers are buying the brand. This will help in making appropriate message in advertisement so that that advertisement will much focused and targeted.

6.

LG Electronics should prefer the rural areas also for selling its consumer durables products.

7.

LG Electronics should make the provision for exchange offer time-to-time, it may generate sale.

8.

LG Electronics should increase knowledge and ability of Dealers to explain finance options if requested.

9.

LG Electronics should provide all details related to any promotions, company schemes or discount applicable at the time of purchase.

10. LG

Electronics

should

provide

more

information

about

features

and

specifications of consumer durables such as size, maintenance, usage and warranty etc.

11. LG Electronics should make sure that Salesman show better ability to listen, understand and answer queries.

12. LG Electronics should ensure that the company is innovative and introduces new products to meet new customers needs.

51

13. LG Electronics provide quality and latest products which help company to face the challenges made by competitors.

14. Direct appeal to end-users should be made, the primary sale become very easy.

15. Word-of-mouth can be generated by keeping the existing customers.

Limitations
1. As per the project involved the marketing research using questionnaires, views expressed by the respondents are confined to elements of questionnaire. But I tried to get more information through general question so that I could reach at the clear picture of the situation.

2.

Between

the

customer

and

interviewer,

due

to

differing

perceptions,

communications errors in the form of miscomprehension, selective perception creeps in. In this case, errors were unavoidable and thus might have added to slight inaccuracy in my results.

52

3.

When the dealers were interviewed regarding customers feedback, it is quite possible that the personal biases of dealers might have crept in.

4.

All consumers are not alike. Thus the results may not hold true for every individual.

5.

In some instances respondents may not have revealed the truth.

SWOT Analysis
With the help of this analysis we are able to know the strength, weakness, opportunity and threats of LG Electronics Consumer Durables Products for research work and study.

STRENGTH

1. LG Electronics is wholly own subsidiary.

2. LG Electronics is driving comfortably on its global brand image and technology.

53

3. LG Electronics has well-established Research & Development Centre.

4. LG Electronics is flexible in their strategy and adjusts accordingly to the demand.

5. LG Electronics market share across the globe is high hence funding is not a problem. 6. LG Electronics appointed the Indian as Product Heads because they have better understanding Indian values.

WEAKNESS
1. LG Electronics has launched number of new ranges in consumer durables product at a time and thus has unequal success rate of its products.

2. LG Electronics not able to utilize efficiently the image they have created at pace rate.

3. LG Electronics could not improve their sales services up to the expectations of customers.

4. LG Electronics left the lower segment unexplored.

OPPORTUNITY
1. The buying capacity of Indian consumer is continuously increasing.

2. India is a fast developing market, and remained unexplored fully.

3. A competitive market helped LG Electronics to create a niche for itself.

54

4. India can be made a base for export to other countries due to its favorable policies and regulations.

THREATS
1. A large number of companies is already presenting the market, so a though competitions prevails. 2. The new innovative consumer durables might not fulfill the expectations and may be rejected.

3. Political destabilizations may also occur.

4. Always needs to be alert to keep an eye on changing environment.

Questionnaire for Air Conditioners

Name: . Address: Telephone Number: Mobile: . Model: . . 1. Overall Quality of Product Features:
Simplicity of understanding and applying operational instructions given in manual Ease of using remote Location and design of control panel Usefulness of auto air swing, fan and speed regulator Quality and usefulness of Dehumidifier, Temperature display Quality of anti-bacteria filter/dust filter Usefulness of Auto-off/ Memory/Sleep function Ease of using Air Conditioner Availability of Power saving options

Poor

Fair

Good

Very Good

Excellent

2. Overall Quality of Product Performance:

Durability of Air Conditioner

55

Reliability of Air Conditioner (ability to work with low maintenance requirement) Ability to work with minimum sound Air throw speed and power of cooling of the room

Poor

Fair

Good

Very Good

Excellent

3. Overall Quality of Dealership:

Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer showrooms

Poor

Fair

Good

Very Good

Excellent

4. Overall Quality of the Dealer Salesman:

Availability of sales person to attend to you Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance, usage and warranty etc Knowledge of salesman about all Air conditioners Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product

Poor

Fair

Good

Very Good

Excellent

5. Overall Quality of the Delivery Process:

Time taken for delivery of the product to your required destination Ability to deliver the Air Conditioner at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Air Conditioner Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems

Poor

Fair

Good

Very Good

Excellent

6. Overall Quality Of After Sales Service and Repairs:

Ease of access to authorized service/repair engineer Time taken to respond to customer requests for service/repair Convenience of time fixed for servicing /repairs Ability of the service/repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service/repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract

Poor

Fair

Good

Very Good

Excellent

56

7. Overall Quality of Complaint Management and Resolution:

Ease of contacting dealer in case of problems Availability of Helpline/FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.

Poor

Fair

Good

Very Good

Excellent

8. Value for Money: Poor Fair Good Very Good Excellent

Date: ..

Signature: ..

Questionnaire for Refrigerators

Name: . Address: Telephone Number: Mobile: . Model: . . 1. Overall Quality of Product Features:
Simplicity of understanding and applying operational instructions given in the manual Ease of operating various features of the Refrigerator Overall exterior aesthetics / styling of refrigerator and door interior Capacity of freezer cabinet Design of the storage cabinet Compartmentalization of the storage cabinet, vegetable tray design, egg tray etc Provision and location of deodorizer, the lamp, freezer thermostat, storage cabinet thermostat etc Provision of moisture controller, door cooling system, water dispenser etc

Poor

Fair

Good

Very Good

Excellent

57

2. Overall Quality of Product Performance:

Durability of the product Reliability of the product (ability to function with low maintenance requirement) Ability to work with minimum sound Extent of cooling in refrigerators (including freezer) Durability of vegetable tray, egg tray and other internal parts of the refrigerators

Poor

Fair

Good

Very Good

Excellent

3. Overall Quality of Dealership:

Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer showrooms

Poor

Fair

Good

Very Good

Excellent

4. Overall Quality of the Dealer Salesman:

Availability of sales person to attend to you Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance, usage and warranty etc Knowledge of salesman about all Refrigerators Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product

Poor

Fair

Good

Very Good

Excellent

5. Overall Quality of the Delivery Process:

Time taken for delivery of the product to your required destination Ability to deliver the Refrigerator at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Refrigerator Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems

Poor

Fair

Good

Very Good

Excellent

6. Overall Quality Of After Sales Service and Repairs:

Ease of access to authorized service / repair engineer Time taken to respond to customer requests for service / repair Convenience of time fixed for servicing / repairs Ability of the service / repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service / repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract

58

Poor

Fair

Good

Very Good

Excellent

7. Overall Quality of Complaint Management And Resolution:

Ease of contacting dealer in case of problems Availability of Helpline / FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.

Poor

Fair

Good

Very Good

Excellent

8. Value for Money: Poor Fair Good Very Good Excellent

Date: ..

Signature: .

59

Bibliography
BOOKS
Kotle r, Philip a nd Armstro ng, Graw - Principles of Marketing, Pearson Education, New Delhi 2004. Kotler, Philip Marketing Management: Analysis, Planning, Impleme ntations and Control, Pea rson Education, New Delhi. 2003, 11th ed. Sharma J K - Business Statistics (Pearson Education) Beri - Marketing Resea rch (Tata McGraw-Hill), 1993, 2nd ed. Kalakota R - Electronic Commerce: A Ma nagers Guide (Pearson Education) 2000

DAILYS & J OURNALS

LG Sa nsar Business World Business Today The Economic Times

INTERNET
www. lgezbuy.com www. wowlg.com www. lgserv ice.com www.google.com

60