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MARKET ANALYSIS OF LG CONSUMER DURABLES
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ACKNOWLEDGEMENT
We wish to express our sincere thanks to
Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATI
VIDYAPEETH UNIVERSITY’S INSTITUTE OF MANAGEMENT
AND RESEARCH for giving us the opportunity to work on the
marketing plan of a company. This has given us the insight of
how the various theoretical concepts are applied in an
organization. I got the opportunity to do a challenging project in
LG ELECTRONIC (INDIA) The project is the important part of our
study and gives us a real practical exposure to the corporate
world.
I also thank to Dr. Sachin S. Vernekar, Director, BHARATI
VIDYAPEETH UNIVERSITY INSTITUTE O MANAGEMENT &
RESEARCH for giving me chance to get such an experience and
giving me chance to get an industrial experience.
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INDEX
1) Executive Summary
2) Preface
3) Introduction
4) Classification of Consumer Durables
5) Scope
6) Opportunity & Threats
7) History of Company
8) Global Operations
9) Business Areas & Main Products
10)Slogan & Symbol
11)Partnership
12)Strategic Alliance
13)Internal Culture of L.G.
14)Mission
15)Product Leadership
16)Code of Conduct
17)L.G. India
18)R&D Potential
19)Major Key Success Factors
20)Marketing and Distribution
21)Customer Service
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22)Objective of the Project
23)Research Methodology
24)Analysis
25)Recommendations & Suggestions
26)Customer Survey Findings
27)Limitations
28)Sources of Data Collected
29)Questionnaire
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Executive Summary
Indian Consumer durables market used to be dominated by few domestic players
like godrej Voltas allwyn and kalvinater. But post liberalization much foreign
company have entered into Indian market dethroning the Indian player and
dominating Indian market the major categories in the market CTV,
REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE
India being the second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in India LG,
SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.
The rural market is growing faster than the urban market, although the penetration
level is much lower .The CTV segment is expected to the largest contributing
segment to the overall growth the industry. The rising income levels double-
income families and consumer awareness are the main growth drivers of the
industries.
Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest
nearly Rs 500 crore in India this year in research and development, brand-building
and other marketing initiatives.
The company, having a turnover of Rs 9,500 crore and market share of 26 per
cent, is investing Rs 360 crore on brand-building and other marketing initiatives
and around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas,
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LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be
expanded from the existing 22 to 40 cities.
The campaign, for which IT infrastructure has been set up, includes the
company’s response to customer complaint within two hours. The fixing time for
complaints varies from one hour to a maximum of 24 hours.
PREFACE
This project gives me great exposure to the consumer durable market because it
includes product knowledge and the filed job in which I have visited the stores of
Delhi. This project helps me to know the market practically. My job was during
this project to see the market share and also the display share of the LG product in
the store. LG always insist the 50% display share of LG product because LG
believes that “JO DIKHTA HAI WO BIKTA HAI”.
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INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo,
and Aiwa came into the picture. Today, these players control the major share of
the consumer durables market.
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Classification of consumer durables sector
1. Consumer electronic include vcd/dvd, home theatre, music player, color
television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc
5. Mobile phones
Scope
1. In term of purchasing power parity (ppp), India is the 4th largest economy
in the world and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on
2010
3. India has the youngest population amongst the major countries. There are
lot of people in the different income categories nearly the two third
population is below the age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400-
US$21,800 a year. And there are 6 million rich household in India.
5. The upper-middle and high-income household in urban areas grew to 38.2
million in 2007 as against 14.6 million in 2000.
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Opportunity
1. In India the penetration level of white goods is lower as compared to other
developing countries.
3. Rapid urbanization.
Threats
Higher import duties on row materials.
Cheap imports from Singapore, China and from other Asian countries.
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Brands in consumer electronic sector
MNCs NATIONAL REGIONAL
LG )
SAMSUNG ) KOREA ONIDA BUSH
HYUNDAI ) VIDEOCON CROWN
BPL SALORA
TCL ) CHINA GODREJ T-SERIES
HAIER ) VOLTAS WESTON
IFB BELTAK
PHILIPS ) HOLLAND OSKAR
PANASONIC )
SHARP )
HITACHI ) JAPAN
SANSUI )
AKAI )
AIWA
WHIRLPOOL )
ELECTROLUX )
exchange offers, discounts, and intense competition. The market share of MNCs
in consumer durables sector is 65%. MNC's major target is the growing middle
class of India. MNCs offer superior technology to the
LG, SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.
The company, having a turnover of Rs 9,500 crore and market share of 26 per
cent, is investing Rs 360 crore on brand-building and other marketing initiatives
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and around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas,
1. LG Global
2. LG India
3. LG Pune
History of company
The company was originally established in 1958 as Gold Star, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and Gold Star,
from which the abbreviation of LG was derived. The current "Life's good" slogan
is a backronym. Before the corporate Name change to LG, household products
were sold under the Brand name of Lucky, while electronic products were sold
under the brand name of Gold Star. The Gold Star brand is still perceived as a
discount brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics
of the United States.
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Global Operation
LG Electronics is playing an active role in the world market with its assertive
global business policy. As a result, LG Electronics controls 110 local subsidiaries
in the world with around 82,000 executive and employees.
LG Group
1. LG Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Mobile communications
Digital appliance
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a)
M icrowa
v e
Ovens,
b)
W ashing
Machines,
c) Vacuum Cleaners,
d) Home Net,
e) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
Digital media
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a) Home Theater Systems,
b) DVD Recorders,
d) CD±RW,
e) Notebook PCs,
f) DesktopPCs
g) PDAs,
h) PDA Phones,
i) MP3 Players,
SLOGAN
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"Life's Good" represents LG's determination to provide delightfully smart
products that will make your life good.
THE SYMBOL
The symbol of LG is the face of future. The letter “L” and “G” in a circle
symbolizes world, future, youth, humanity & technology. LG philosophy is based
on humanity. It also represents LG’s efforts to keep close relationship with our
customers around the world.
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The circle symbolizes The Globe. The stylized image of a smiling face in the
symbol conveys “Friendliness and Approachability”. The one eye on the
symbol represents “Goal-oriented, Focused & Confident”.
THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a labor-
management relationship rather than an employee-employer relationship. This
illustrates that management and workers are not in a vertical relationship, but in a
horizontal one.
STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying business
opportunities through various associative relationships with some of the
world's leading companies.
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world famous companies. "Strategic association between corporations," in which
companies with different infrastructures cooperate in the fast-developing 21st
century business field, is of key significance in terms of strengthening the existing
industry and creating a new one.
LG Electronics will do its best to create new products and services with an open
mind, while developing new technologies and business fields through various
associations with some of the world's most successful companies.
1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10.INTEL
11.NORTEL
12.HITACHI
13.PRADA
14.RENESAS
15.TOSHIBA
16.BESTBUY
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And the number follows many more…………………………..
In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile
services will be available from LG mobile. This service is targeting 10 million LG
mobile phones in over 70 countries.
Both companies will work together to release, market, and offer LG mobile
phones with Google services (search engine, map, email, and blogs.)
LG BRAND IDENTITY:-
1. Value
2. Promise
3. Benefits
4. Personality
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The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
Reliable products
Simple design
Ease of use
Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer
through
Trustworthy, Considerate
Practical, Friendly
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
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According to LG, the Learning Culture continuously helps the employee to
learn more and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels
of employees. There is transparency between the work and mutual understanding
between all the employees.
A carrier is highly growing in LG and one who is the employee can develop their
carrier largely. A new comer will feel fully comfortable in the company and for a
new comer the company is very helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who
want to join in LG. The company is growing with fast innovation and the BLUE
Ocean strategy is one of the examples of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through
leadership. The fundamental policy of development is to secure product
leadership that the Customers may have the utmost satisfaction.
Product Leadership
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
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Code of conduct of LG:
1. Responsibility and obligations to customers :
• Respect for Customers
• Creating Value
• Providing Value
2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations
3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
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LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 after clearance from the Foreign
Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing
facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500
Crores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater
Noida, India.
LG Brand Shoppe goes beyond the concept of a normal exclusive store by having
a more interactive environment and additional lifestyle orientation on display so
that the customer can actually experience the LG products in his or her own home
settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market
share, is planning a brand new image. To attract inspirational and young
consumers across India, company will roll out a new marketing strategy. The
exercise will cost the company Rs 360 crore.
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LG Electronics India is the fastest growing company in the consumer electronics,
home appliances, and computer peripherals industry today.
India challenges
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The challenges faced by LG when entered in Indian market
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LGEI implementing the “Digital manufacturing system” (DMS) as the cost
cutting innovation this system is follow-up to the six sigma exercise LGEI had
initiate earlier.
R&D potential
LG has the research and development facilities in Bangalore and Pune. Both the
unit carry out R&D department for the domestic as well as the parent company it
also dose customize R&D for the specific countries to which it export product.
Product localization:-
1. Product localization is the key strategy used by the LG
2. LG came out with Hindi and regional language menus on its TVs.
3. Introduced the low-priced “Cineplus” and “sampooma” for the rural
market.
4. LG was the first brand to introduce gaming in TVs in continuations of its
association with cricket LG introduce cricket game in CTVs
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1. Innovative marketing - LG was the first brand to enter cricket in a big way,
by sponsoring the 1999 World Cup and followed it up in 2003 as well.
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6. Customer is the king
LG PUNE
LG Pune is the branch office of LGEIL. It is located in J.M Road.
In 2004 LGEIL opened second factory which is located in Ranjangaon. This plant
manufactures all product including DVD writers and GSM mobiles. Thus it
became first company to manufacture DVD writer in India. The ODP plant aims
to reach a manpower base of 1500 people and an investment of Rs 300 crore till
2010.
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 $3
billion by 2010 from India, which will contribute to 30 per cent of the Indian
arm's turnover.
Production base following China. Under this strategy LGE has projected 2007
revenues in India will exceed US$10 billion, 10 times that of 2004.
The three strategies for the Indian market that the global electronics giant
disclosed. included: penetrates the south-western market of India through the
new Pune plant near Mumbai, the second largest city in India, in addition to the
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existing northern plant; installs a new GSM handset production line in the new
Pune plant and uses it as its second-largest global GSM handset production line
after the Qingdao plant in China; and expands the current 750 R&D staff in India
to 1,500 by 20010, striving to develop premium products and export 30% of
India-manufactured products to Asia, Middle East and Africa markets by 2010.
LG Electronics’ second new plant in Pune, India covers a total area of 211,200
square meters and is currently equipped with a production line to manufacture
600,000 TVs and one million refrigerators a year. The company is set to add
production lines of air conditioners, washing machines, monitors, and electronic
ovens, by 2010.
In connection with its three growth strategies for the Indian market, LG
Electronics will invest a total of US$150 million in establishing facilities and
boosting R&D efforts in India by 2010. Specifically, it will invest US$53 million
in the Pune second plant, another US$43 million in establishing the GSM line,
and US$54 million in securing R&D manpower and boosting other efforts.
Through these strategies, LG Electronics aims to penetrate the global market by
using China and India as its core production bases, while operating its plants in
Changwon and Gumi, Korea, as its main production bases. This way, the
company is pushing to penetrate the global home appliance market.
The present capacity of the facility is of 1 lakh unit per year and it shall cater to
the need of the domestic markets. LG plans to upscale its operations to a figure of
2.5 lakh units a year in the near future. The Pune plant in addition to its current
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manufacturing facility at Greater Noida will enable the company to enhance its
consumer reach and reiterate it’s commitment towards providing superior
technology products to the India consumer.
The key strategies being implemented include increasing the number of its
regional offices from six to eight. LG has split its southern regional office into
two, one comprising the states of Tamil Nadu and Kerala and the other consisting
of Andhra Pradesh and Karnataka. In addition, it has split one of its northern
regional offices by making Uttar Pradesh a separate region after spinning it out
from Delhi NCR. The other four regional offices take care of East, Gujarat and
Madhya Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan
respectively.
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4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meeting at several time in the
year
7. LG divide dealer in gold silver bronze etc. category to know the
performance of the dealers.
8. They have their sales persons at various sub dealer store and at mordent
trade store for particularly for the promotion of the LG product.
9. LG also uses the radio FM for the promotion activities.
10.Also provide capon and scratch card for festive season.
5R’s of Logistic
Followed by LG:
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
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LG Distribution
The LG Factory is located at NOIDA & PUNE. There are three types of
Warehouse-
1. Mother Warehouse
2. Branch Warehouse
The mother warehouse is that where the products from the factory are kept and
from that warehouse, the products are sent to the branch warehouse.
1. Sweeping
2. Sorting
3. Systematic Arrangement
4. Simplification
5. Self- discipline
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In warehouse, the products are pinup with 3-color paper to get the knowledge
about the delivery.
• Order Processing
• Invoicing
• Indenting
• Report
Order Processing booking for dealers /distributors
In warehouse, there are two mode of dispersion of product from one place to
another within. a) Hydraulic b) Manual
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In addition, there are 35 fire extinguishers to prevent the accidental hazard within
the warehouse due to fire. These fire extinguishers are valid up to year 2011. One
has to follow the rule of “NO Smoking” within the warehouse
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CUSTOMER SERVICE
The best and the biggest international brands are here in India –but the irony if it
all: where is the after-sales-service? So integral to a brand, so critical for its
success and so taken for granted in developed markets! In India, after sales
service is, for want of a better description, the pits. So what’s stopping the best
companies from pulling out all the stops when it comes to providing the best
service? Do customers expect for too much? Or is it that in India they don’t really
care. Brand Equity fanned out to MNC as well as Indian consumer durable
companies, stockiest and dealers, analysts and market researchers to get a feel of
what’s really keeping after sales from being used as a cutting edge marketing tool
in pushing products across categories.
LG also had a big problem of after sale service in India. During my project I
also came to know that after sale service becomes the big issue in Pune region.
Customers as well as dealer were facing the problem of after sale service. Because
of this problem many dealer in Pune region were not ready to sale LG product. So
it becomes the big issue.
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But LG has taken some solid steps towards improving customer’s perception and
experience of after sales service. Because it very important in competitive market
to provide the best service.
The company aims to recruit 10,000 people by the end of this year as a part of its
branding strategy to focus on service and move away from discounting.
LG Electronics has identified eight states with high after sales service call rates to
ink the deals with the ITI. Y V Verma, director HR and management system,
LG Electronics said, "The Company was trying to find a solution for effective
after sales service since last two years. There is a huge need of trained manpower
for the after sales service to align with the company's expansion and focus on the
GSM mobiles and the personal computer segments."
In the initial phase the company has entered into agreements with ITIs in the
states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and
is in the last leg of signing with Uttar Pradesh.
1. LG Electronics, with 1200 service centers, has already recruited 300 students
and plans to beef up the number to 10,000 by the year-end.
2. "The company has offered a scholarship to the selected students for the last
six months of their training programme,"
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4. The company moved away from the discounting strategy since last year and
is putting thrust on the quality and service in its brand communication to
position LG as a premium consumer electronics brand.
5. At the top, the Service Division in Korea reports to the Global CMO. (As
mentioned in Dermot’s public interview in ET on Wednesday). This shows
commitment that Service must be made into a marketing differentiator, and
leveraged thus.
6. LG has the widest service network across the country; some estimates put it
at a significant multiple of service-infrastructure from our nearest
7. Competitor. While the sale size may also be a nice multiple from nearest, it
shows the company is ready to put our money where our mouth is.
8. The company has introduced a 211 service - once you register your
complaint, we will call you back in 2 hours (hence 2), set up an appointment
for the next convenient day for you (hence the first 1), and show up in the
promised 1-hour slot (hence the second 1). If the next convenient day for you
is the next day, that’s great too. It’s a disruptive action in an industry
(including LG) having traditionally shied away from its service
responsibilities, and thus not leveraging any mileage from it.
9. The company is promoting 211 through ATL, probably the first time after-
sales service is being communicated in this fashion by any product company.
You may have seen the TV commercial or heard the radio advert or seen the
newspaper ad or in-shop posters, both of which revolve around prompt
response.
10. The first LG-owned service centre opened in Gurgaon. (Service in India
generally works through authorized service centers, in LG’s case they work
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exclusively for LG.) A company-owned service centre tries that much harder,
knows things better, and can even contribute as a revenue center.
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Objective of the project
Primary objective
The main objective of filed survey during the project was to find out the
market share of the LG and also calculate the display share.
Find out the positional dealer who can sale the LG product in large volume.
Find out the problem faced by the dealer in sales and the distribution.
Secondary objective
Do the consumers prefer the financial facility for buying consumer durable?
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Research Methodology:
Research methodology is considered as the nerve of the project. Without a proper
well-organized research plan, it is impossible to complete the project and reach to
any conclusion. The project was based on the survey plan. The main objective of
survey was to collect appropriate data, which work as a base for drawing
conclusion and getting result.
Research design:
• Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have in
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particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the “who, what, when, where and how” of the subject under investigation.
There is a general feeling that descriptive studies are factual and very simple. This
is not necessarily true. Descriptive study can be complex, demanding a high
degree of scientific skill on part of the researcher.
Questions and deciding the types of data to be collected and the procedure to be
used in this purpose. Descriptive studies can be divided into two broad categories:
Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned
with a sample of elements from a given population. Thus, it may deal with
household, dealers, retail stores, or other entities. Data on a number of
characteristics from sample elements are collected and analyzed. Cross sectional
studies are of two types: Field study and Survey. Although the distinction between
them is not clear- cut, there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific inquiries that aim
at finding the relations and interrelations among variables in a real setting. Such
studies are done in live situations like communities, schools, factories, and
organizations.
Another type of cross sectional study is survey result, which has been taken by
me. A major strength of survey research is its wide scope. Detail information can
be obtained from a sample of large population .Besides; it is economical as more
information can be collected per unit of cost. In addition, it is obvious that a
sample survey needs less time than a census inquiry. Descriptive research includes
survey and fact finding enquiries of different kinds of the major purpose.
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Descriptive research is description of the state of affairs, as it exists at present.
The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happened or what is happening. The
methods of research utilized in descriptive research are survey methods of all
kinds including comparative and co relational methods. The reason for using such
needs to be flexile in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed ever now and then.
The objective was to find out the market share of LG products, advantages, and
disadvantages of LG products from dealers and to find out what problems they are
facing with the LG products so that problems can be resolved to increase the sale.
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Data collection methods:
After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One
of the important tools for conducting market research is the availability of
necessary and useful data.
Primary data: For primary data collection, we have to plan the following four
important aspects.
Sampling
Research Instrument
Secondary Data - The Company’s profile, journals and various literature
studies are important sources of secondary data.
Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains
question that the researcher wishes to ask his respondents which is always guided
by the objective of the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is represented
by the full create. The diagram bar chart can make comparison among the various
components or between a part and a whole of data.
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Bar chart:
Preparation of report:
The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report itself.
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The one is made
for the Customer.
Sample unit
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Analysis
Q1. Have you ever purchased any consumer durable of L.G.?
Yes
15%
No
Yes
No
85%
Price
Product feature Price
15% 25%
Brand 10% Product Feature
Brand
Service Service
20%
30%
Durability Durability
Exhibitions
Co. Stores 15%
Showroom Showroom
Co. Stores
25% 60% Exhibition
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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
Attractive Price
Service
Demonstrations 30% Attractive Price
Service
Offers 55% Demonstration
5%
Offers
10%
CTV
CTV
LCD LCD
10% 5% 10%
REFRIDGERATOR 10% Refridgerators
A/C A/C
1-3 years
1-3 years
3-5 years 5% 15%
3-5 years
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Q.7.Do you prefer any financing scheme to purchase consumer durables?
Yes
No
10%
0%
Yes
No
Can't Say
90%
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RECOMMENDATIONS AND SUGGESTIONS
1. LG should improve it’s after sale service because its hits badly LGs market
share.
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CUSTOMER SURVEY FINDINGS
1. Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes
Demonstration, Exhibition & Even Sponsors.
2. From the survey it was found out that the majority of customers don’t buy
consumer durables from exhibitions. They just visit the exhibitions to see
the co. latest model.
3. They want to buy from the showrooms or from co. showrooms. For them
service is important .Beside convenience and other factors service is key
factor.
5. Customers are also now very choosy in buying the product and it is
important for the company to make loyal customer of their brand.
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RECOMMENDATIONS AND SUGGESTIONS
1. Display share should be increased where there is less than 50% as LG also
believes that “JO DIKHTA HAI WO BIKTA HAI”.
3. Company should concentrate more on its major drivers LCD, IT, and GSM.
Branding and promotions should be done effectively as it creates a long
lasting image in the mind of customers.
4. Company should also cater to the needs of sub dealers as some of the sub
dealers have potential of high sales.
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LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
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SOURCES OF DATA COLLECTED
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
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Consumer survey Questionnaire
a) Yes
b) No
a) Price
b) Product feature
c) Brand
d) Service
e) Durability
a) Exhibitions
b) Co. Stores
c) Showroom
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
a) Attractive Price
b) Service
c) Demonstrations
d) Offers
e) Convenience
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Q.5.Which consumer durable of L.G. you have?
A. CTV -------------------
B. LCD -------------------
C. REFRIDGERATORS -------------------
E. MICROWAVES -------------------
F. A/C -------------------
a) 1-3 years
b) 3-5 years
c) 5-10 years
a) Yes
b) No
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