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PROJECT REPORT
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MARKET ANALYSIS OF LG CONSUMER DURABLES &

DEALER DEVELOPMENT
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PREFACE PREFACE
This document is an attempt of an outsider to build perspective to the insiders. lts seen so very
often that an outsider sees and appreciate things which the insider cannot. Like the Chinese
traveler l have made an attempt to capture the current picture of. LG PRODUCTS
This Document explain the industrial activities of
MARKET ANALYSIS OF LG CONSUMER DURABLES &
DEALER DEVELOPMEN like it's strategy, team working, growth speed and working
environment.
ARPAN BHARDWAJ
BBA 4
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SEM
9945515
Acknowledgement
It is indeed oI great moment to pleasure to express our senses oI
proIound gratitude & indebtedness to all the people who have
been instrumental in making it a rich experience. We Iound it to
be a challenging project that gave us a real practical exposure to
the corporate world and it is almost impossible to do the same
without the guidance oI peoples around us. It gives us immense
pleasure to acknowledge LG ELECTRONICS INDIA Ltd.
dealers, who have been nice enough to give us a chance to do
our project and providing us wonderIul support throughout our
project.
INDEX

EXECUTIVE SUMMARY
SCOPE OF PRO1ECT
INTRODUCTION
HISTORY OF THE COMPANY
THE SYMBOLS--- STRATEGIC ALLIANCE----THE INTERNAL CULTURE OF LG
MISSION ----- QUALITY INNOVATION
LG INDIA----CHALLENGES--- CUSTOMER SERVICE
OB1ECTIVE OF THE PRO1ECT
RESEARCH METHODOLOGY
LIMITATION OF THE STUDY

DISTRIBUTING & MARKETING
DATA COLLECTION METHOD

SUGGESTION
CONCLUSION
SURVEY FINDINGS
BIBLOGRAPHY
QUESTIONNAIRE
APPENDIXX

Executive summary
Indian Consumer durables market used to be dominated by Iew domestic
players like Godrej Voltas Allwyn and Kelvinator. But post
liberalization many Ioreign companies have entered into Indian market
dethroning the Indian players and dominating Indian market the major
categories being CTV, REFRIGRATOR, AIR CONDTIONERS and
WASHING MACHINES.
India being the second largest growing economy with huge consumer
class has resulted in consumer durables as the Iastest growing industries
in India. LG, SAMSUNG the two Korean companies have been
maintaining the lead in the market with LG being leader in almost all the
categories. The rural market is growing Iaster 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 oI the
industry. The rising income levels double-income Iamilies and consumer
awareness are the main growth drivers oI 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 oI Rs 9,500 crore and market share oI
26 percent, is investing Rs 360 crore on brand-building and other
marketing initiatives and around Rs 140 crore on research and
development, besides launching new platIorms in inIormation
technology and related areas, LG`s innovative 211 campaign` to
provide quality aIter-sales service, will also be expanded Irom the
existing 22 to 40 cities by next month, the campaign, Ior which IT
inIrastructure has been set up, includes the company`s response to
customer complaint within two hours. The Iixing time Ior complaints
varies Irom one hour to a maximum oI 24 hours.
Scope oI project
This project gives us great exposure to the consumer durable market
because it includes product knowledge and Iield survey job in which we
visited the LG stores in Delhi. Incidentally Diwali time was nearing
during our survey period which exposed us to another aspect oI product
promotion. LG always insist the 50 display share oI LG product
because LG believes that 1O DIKHTA HAI WO BIKTA HAI.
While visiting the shops we
1. Calculated the display share oI the LG product in every shop.
2. Collected the data oI actual monthly sale oI the LG products in
Iew shops.
3. Checked the availability oI LG catalogue and the POPs in the
store.
4. Found out the problems that the dealer are Iacing while selling
the LG products.
5. Found out the customer response Ior LG products by asking
the owner oI the shop.
6. Found out the distributor name Irom who they were
purchasing their products and also whether they have direct
dealership and which brand.
7. Checked whether demo calls are attended or not
Key Iindings:-
1. By calculating the display share we Iound that in most oI store
LG has 50 display share almost all categories.
2. By the actual monthly sale oI particular store we came to know
the capacity oI the store and how much product can they sell.
3. It helps us to know that weather dealer is capable oI being a
direct dealer oI LG or not and it also helps to Iind out the new
dealers who are capable oI being an LG dealer.
4. We also came to know while visiting the shops that there was
big problem oI aIter sales service.
5. Many dealers were Iacing the problem oI aIter sale service
because there is no Iollow up calls Irom LG.
6. Demo calls also not done properly.
INTRODUCTION
BeIore the liberalization oI the Indian economy, only a Iew companies
like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the
consumer durables market, accounting Ior no less than 90 oI the
market. Then, aIter the liberalization, Ioreign players like LG, Sony,
Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today,
these players control the major share oI the consumer durables market.
Consumer durables market is expected to grow at 10-15 in 2007-2008.
It is growing very Iast because oI rise in living standards, easy access to
consumer Iinance, and wide range oI choice, as many Ioreign players are
entering in the market With the increase in income levels, easy
availability oI Iinance, increase in consumer awareness, and introduction
oI new models, the demand Ior consumer durables has increased
signiIicantly. Products like washing machines, air conditioners,
microwave ovens, color televisions (CTVs) are no longer considered
luxury items. However, there are still very Iew players in categories like
vacuum cleaners, and dishwashers Consumer durables sector is
characterized by the emergence oI MNCs, exchange oIIers, discounts,
and intense competition. The market share oI MNCs in consumer
durables sector is 65. MNC's major target is the growing middle class
oI India. MNCs oIIer superior technology to the Consumers whereas the
Indian companies compete on the basis oI Iirm grasp oI the local market,
their well-acknowledged brands, and hold over wide distribution
network. However, the penetration level oI the consumer durables is still
low in India.
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
2. White goods include dishwashers, air conditioners, heaters,
washing machines, reIrigerators, vacuum cleaners, kitchen
appliances, non-kitchen appliances, microwaves, built-in
appliances, Tumble dryer, personal care product etc.
3. Moulded luggage include plastics
4. Clocks and watches
5. Mobile phones
Scope
1. In term oI purchasing power parity (PPP), India is the 4th
largest economy in the world and overtake Japan in the near
Iuture 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 oI people in the diIIerent income
categories nearly the two third population is below the age oI
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
are expected to grew to 38.2 million in 2007 as against 14.6
million in 2000.
Opportunity
1. In India the penetration level oI white goods is lower as
compared to other developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power oI
consumers.
5. Easy availability oI Iinance.
Threats
1. Higher import duties on row materials.
2. Cheap imports Irom Singapore, China and Irom other Asian
countries.
Brands in consumer electronics sector
MNCs NATIONAL REGIONAL
LG ) ONIDA BUSH
SAMSUNG ) KOREA VIDEOCON CROWN
HYUNDAI ) BPL SALORA
TCL ) CHINA GODREJ T-SERIES
HAIER ) VOLTAS WESTON
IFB BELTAK
PHILIPS ) HOLLAND OSKAR
PANASONIC )
SHARP )
HITACHI )
SANSUI ) JAPAN
AKAI )
AIWA
WHIRLPOOL )
ELECTROLUX
TODAY Consumer durables sector is characterized by the emergence oI
MNCs, exchange oIIers, discounts, and intense competition. The market
share oI MNCs in consumer durables sector is 65. MNC's major target
is the growing middle class oI India. MNCs oIIer 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 oI Rs 9,500 crore and market share oI
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 platIorms in inIormation
technology and related areas.
LG Electronics is one oI the leading companies in the Iield oI
electronics with a global presence in many countries.BeIore brieIing, we
have divided the introduction part into three main sub parts.
1. LG Global
2. LG India
3. LG
History of company:
The company was originally established in 1958 as Gold Star, producing
radios, TVs, reIrigerators, washing machines, and air conditioners.
1958-1969-GoldStar The Electronics Industry Dream

1970-79 GoldStar symbol oI The Technolgoy
1980-88 :- INTERNATIONALIZATION
1989-94 INOVATION
1995-98 GLOBAL LEADERS LG ELECTRONICS
1999-2003-DIGITAL MANAGEMENT
2004-2006 GREAT PEOPLE GREAT DESIGN
2007-THE PEOPLE COMPANY
The LG Group was a merger oI two Korean companies, Lucky and Gold
Star, Irom which the abbreviation oI LG was derived. The current "LiIe's
good" slogan is a backronym. BeIore the corporate Name change to LG,
household products were sold under the Brand name oI Lucky, while
electronic products were sold under the brand name oI 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 oI the United States.
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
Business areas and main products
Mobile communications
(a) CDMA Handsets,
(b)GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones
Digital appliance
a) Air Conditioners,
b) ReIrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
I) Home Net,
g) Compressors Ior Air Conditioners and ReIrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
I) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
Digital media
a) Home Theater Systems,
b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CD+RW,
e) Notebook PCs,
I) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car InIotainment
VISION
Global Top 3 by 2010
Global Top 3 Electronic/Telecommunication company
GROWTH STRATEGY
Fast innovation, Fast growth
CORE COMPETENCY
Product leadership, Market leadership, People leadership
CORPORATE CULTURE
No excuse, we not I, Fun workplace
SLOGAN
"Life's Good" represents LG's determination to provide delightfully
smart products that will make your life good.
The LG Electronics LiIe's Good signature consists oI the LG logo,
seal, and the slogan, "LiIe's Good" set in Charlotte sans typeIace
curved around the LG symbol. The curving oI the slogan reinIorces LG's
personality and uniqueness. The consistent usage oI this signature
clearly establishes the unique identity oI the company and uniIies every
division and product Irom LG Electronics across the globe.
THE SYMBOL
The symbol oI LG is the Iace oI Iuture. The letter 'L and 'G in a
circle symbolizes world, Iuture, youth, humanity & technology. LG
philosophy is based on humanity. It also represents LG`s eIIorts to keep
close relationship with our customers around the world.
The symbol consists oI two elements.
1. The logo in LG gray
2. The stylized image oI human Iace in the unique LG red color.
Red color represents our Iriendliness and gives a strong impression oI
LG`s commitment to deliver the best.
The circle symbolizes The Globe. The stylized image oI a smiling Iace
in the symbol conveys Friendliness and Approachability.
The one eye on the symbol represents Goal-oriented, Focused &
Confident.
The slogan oI LG is Life`s Good. It expresses' Brand`s Value ,
Promises, Benefits , Personality .
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.
This culture is necessary Ior LG Electronics as it strives to become one
oI the world's top companies. Such a relationship is transIormed into a
value-creation relationship whereby both parties endeavor to address
mutual problems and
create new values together.
STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying
business opportunities through various associative relationships
with some of the world's leading companies.
LG Electronics is striving to become number one in the world by
mingling in various business and technological Iields and making
strategic alliances with world Iamous companies. "Strategic association
between corporations," in which companies with diIIerent inIrastructures
cooperate in the Iast-developing 21st century business Iield, is oI key
signiIicance in terms oI 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 Iields
through various associations with some oI the world's most successIul
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
And the number follows many more............
In Feb. 2007 LG Electronics and Yahoo Iormed a strategic alliance.
Yahoo mobile services will be available Irom LG mobile. This service is
targeting 10 million LG mobile phones in over 70 countries.
In Mar. 2007 LG Electronics and Google Iormed a strategic alliance.
Both companies will work together to release, market, and oIIer LG
mobile phones with Google services (search engine, map, email, and
blogs).
LG BRAND IDENTITY:-
The brand oI LG is delightIully smart. LG strives to enhance the
customer`s liIe and liIestyle with intelligent Ieatures, institutive
Iunctionality and exceptional perIormance.
The brand platform:-
The LG brand is composed oI Iour basic elements
1. Value
2. Promise
3. BeneIits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The beneIits that are consistently delivered to the customer includes
a) Reliable products
b) Simple design
c) Ease oI use
d) Extraordinary Experience
Personality describes the human characteristic that are expressed to the
customer through
Trustworthy, Considerate
Practical, Friendly
The Internal Culture of LG:
LG practices Iour cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee
to learn more and more to develop the habit oI continuous learning.
Boundary less Environment means that there is no diIIerence between
the levels oI 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 Ieel Iully comIortable in
the company and Ior a new comer the company is very helpIul in the
overall growth oI personality.
Growth in LG is very high Ior those who are in the company and Ior
those who want to join in LG. The company is growing with Iast
innovation and the BLUE Ocean strategy is one oI the examples oI
growth.
Mission
The mission oI LG is to provide the customers with utmost satisIaction
through leadership. The Iundamental policy oI development is to secure
product leadership that the Customers may have the utmost satisIaction.
Product Leadership
We are Iocusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
Quality Innovation
The policy oI quality assurance is to provide customers with utmost
satisIaction by supplying zero deIects.

LG proceeds in a hierarchal manner. It is named as LG WAY.
From top to bottom:
No.1 LG is the VISION
'Jeong-DO Management is LG`s unique application to ethics. LG will
succeed through Iair management practices and constantly developing
our business skill.
A) Honest with our customer
b) Providing great values to customer through constant
innovation & and development.
c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value Ior customer
Code of conduct of LG
1. Responsibility and obligations to customers :
Respect Ior Customers
Creating Value
Providing Value
2. Fair competition
Pursuit oI Free Competition
Compliance with Laws and Regulations
3. Fair Transaction :
Equal Opportunity
Fair Transaction Procedure
Support and Aid Ior Business Partners
4. Basic Ethics Ior Employees
Basic Ethics
Completion oI Duty
SelI Development
Fairness in PerIormance
Avoidance oI conIlict with company interest
5. Corporate Responsibilities to employees
Respect Ior human dignity
Fair Treatment
Promoting Creativity
6. Responsibilities to society and country
Rational Business Development
Protection oI stock holder interest
Contribution to social development
Environmental Conservation
LG INDIA
LG Electronics India Pvt. Ltd., a wholly owned subsidiary oI LG
Electronics, South Korea was established in 1anuary 1997 aIter
clearance Irom the Foreign Investment Promotion Board (FIPB). LG set
up a state-oI-the art manuIacturing Iacility at Greater Noida, near
Delhi, in 1998, with an investment oI Rs 500 Crores.
LG corporate oIIice is located at Plot no.51, Udyog Vihar, Kasna Road,
Greater Noida, India. This Iacility manuIactured Color Televisions,
Washing Machines, Air-Conditioners and Microwave Ovens.
''Company is setting up a chain oI exclusive premium showrooms. LG
plans to launch 60 premium Brand Shoppes by the end oI the Iirst
quarter oI this year. At present, LG has a total oI 83 LG stores across the
country, oI which 45 are shops and 38 are exclusive stores. Brand shops
will be placed in the premium segment and the target audience will
comprise buyers interested in premium and high end products.
LG Brand Shoppe goes beyond the concept oI a normal exclusive store
by having a more interactive environment and additional liIestyle
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.
LG Electronics India is the Iastest growing company in the consumer
electronics, home appliances, and computer peripherals industry today.
LG Electronics is continually providing, superior technology products &
value Ior money to more than 50 lakh households in India. LGEIL is
celebrating the 11th anniversary this year.
LG Soft India the innovation wing oI LG Electronics in Bangalore is
LG Electronics' largest R&D centre outside Korea. We at LGSI Iocus
on niche technology areas such as mobile application development,
digital video broadcast and biometrics soItware and support LG
Electronics with our expertise. Motivated by a passion Ior technology, a
strong work culture and loyalty to the organization, we are determined to
see LG become one oI the top three brands globally.
Prominent consumer electronic company, LG Electronics Inc. has said
that it expects the sale oI its products in India to up by 15 per cent in
2008. Moon Bum Shin, managing director oI LG Electronics India has
said that the company has earmarked 4.8 billion rupees Ior investment
purpose in India this year. The said money will be used to market as well
as manuIacture new products.
LG Electronics, which is originally a South Korean Company with
branch in India, inIormed that its sales oI GSM mobile phones, color
televisions, air conditioners and other household goods in the Indian
market was to the tune oI 95 billion rupees ($2.4 billion) in 2007. As per
Shin's estimate, the sales in 2008 would be around 110 billion rupees. In
order to achieve its target, Shin said LG Electronics will concentrate on
catering to the high-end consumer market which will help boost sales
this year. India churns out six (6) per cent oI LG Electronics global
revenues oI $42 billion. The Indian branch oI LG exports to 40
countries.
India challenges
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One oI the last MNCs entered in India (Samsung, Panasonic
entered in 1995 in India).
3. High import duty
4. Compitition Irom local market players and other MNCs in
consumer durable segment.
5. Price sensitiveness oI the Indian consumer
LGEI over comes these challenges to emerge as
Innovative marketing strategy
1. Launch new technologies in consumer electronic and home
appliances.
2. LG was the Iirst brand to enter in cricket in big way a way,
by sponsoring the 1999 world cup Iollowed it up in 2003 as
well.
3. LG brought in Iour captains oI the Indian cricket team to
endorse its products. LG invested more then US$ 8 million
on advertising and marketing in this sport.
4. LG has diIIerentiated its product using technology and
health beneIits. CTV has Golden eye technology Air
conditioner has Health air system and microwave ovens
have the Health wave system.
Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manuIactures TV reIrigerator in
India at manuIacturing Iacility at Noida and . LGEI had already
commissioned contract manuIacturing at Mohali Kolkata and Bhopal Ior
CTVs. This has helped LGEI to reduce cost. LGEI implementing the
'Digital manuIacturing system (DMS) as the cost cutting innovation
this system is Iollow-up to the six sigma exercise LGEI had initiate
earlier.
R&D potential
LG has the research and development Iacilities in Bangalore and . Both
the unit carry out R&D department Ior the domestic as well as the parent
company it also dose customize R&D Ior the speciIic countries to which
it export product.
Regional channel and wide distribution network
1. LG has adopted the regional distribution channel in India.
All the distributers work directly with the company. This
has resulted in quicker rotation oI the stock and better
penetration into B, C, D, class market.
2. LG also Iollows the stock rotation policy rather then
dumping stock on channel partners.
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 Ior the rural
market.
4. LG was the Iirst brand to introduce gaming in TVs in continuations oI
its association with cricket LG introduce cricket game in CTVs
MA1OR KEY SUCCESS FACTORS:
1. Innovative marketing - LG was the Iirst brand to enter cricket
in a big way, by sponsoring the 1999 World Cup and Iollowed
it up in 2003 as well.
2. Local and eIIicient manuIacturing to reduce cost - To overcome
high import duties, LG manuIactures PC monitors and
reIrigerators in India at its manuIacturing Iacility at Noida,
Delhi.
3. Commissioned contract manuIacturing at Mohali, Kolkata and
Bhopal Ior CTVs.
4. Product localization - Product localization is a key strategy
used by LG. It came out with Hindi and regional language
menus on its TV.
5. Regional distribution model - This has resulted in quicker
rotation oI stocks and better penetration into the B, C and D
class markets.
6. Leveraging India`s IT advantage - LG Electronics has awarded
a contract to develop IT solutions to LG SoIt India (LGSI). The
project involves development and support Ior ERP, SCM, CRM
and IT-enabled services Ior LG.
Strategies adopted by the organization:
LG Iollows 10 commandments which are as Iollows.
1. Foster working environment-5S Environment
2. Fast execution is key to success
3. Transparent and Iast communication-open communication
4. Update market -knowledge Demographics
5. Win Win relationship with the trade partners
6. Customer is the king
7. Even Billing Road to ach supplier A
8. Be in touch with the market (70 Market, 30 OIIice).
9. Plan and Execute annual marketing Calendar-Time to market
10.Display share oI 50 -to get 50 consumer share.
LG market share of consumer appliances and consumer
electronic:-
LG position oI CTV in various states in India
LG position oI REF in various states in India
LG position oI WM in various states in India
LG position oI AC in various States in India
LG position oI Audio & Home Theater in various in India
LG position oI DVD in various in India
LG position oI MWO in various states in India
This analysis is based on the ORG survey conducted by LG which
represent the LG position oI diIIerent consumer durables in various
states in India. We selected diIIerent brand in diIIerent category as per
the market share and the demand oI product in market. This analysis
represents the LG market position during the period oI March 2008. It
shows that LG has captured maximum market share almost in every
category. LG and Samsung have the maximum market in consumer
durable market but LG dominate the almost all the category in consumer
durable. Prominent consumer electronic company, LG Electronics Inc.
has said that it expects the sale oI its products in India to up by 15 per
cent in 2008. Moon Bum Shin, managing director oI LG Electronics
India has said that the company has earmarked 4.8 billion rupees Ior
investment purpose in India this year. The said money will be used to
market as well as manuIacture new products. LG Electronics, inIormed
that its sales oI GSM mobile phones, color televisions, air conditioners
and other household goods in the Indian market was to the tune oI 95
billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in
2008 would be around 110 billion rupees. In order to achieve its target,
Shin said LG Electronics will concentrate on catering to the high-end
consumer market which will help boost sales this year. India churns out
six (6) per cent oI LG Electronics global revenues oI $42 billion. The
Indian branch oI LG exports to 40 countries. Shin remarked that the
company was targeting an increase oI exports to $300 million in 2008
Irom $230 million in 2007.
LG PUNE
LG Pune is the branch oIIice oI LGEIL. It is located in J.M Road. In
2004 LGEIL opened second Iactory which is located in Ranjangaon.
This plant manuIactures all product including DVD writers and GSM
mobiles. Thus it became Iirst company to manuIacture DVD writers in
India. The ODP plant aims to reach a manpower base oI 1500 people
and an investment oI Rs 300 crore till 2010. LG India will become the
export hub Ior LG Worldwide, catering to the Middle East and AIrican
markets. The company aims to touch an export turnover oI $3 billion by
2010 Irom India, which will contribute to 30 per cent oI the Indian arm's
turnover. , India, October 6, 2004 -- LGE announced 3 growth strategies
aimed at the 1.1 billion people oI India making the Indian market the
second largest global production base Iollowing China. Under this
strategy LGE has projected 2007 revenues in India will exceed US$10
billion, 10 times that oI 2004.
The three strategies Ior the Indian market that the global electronics
giant disclosed included: penetrate the south-western market oI India
through the new plant near Mumbai, the second largest city in India, in
addition to the existing northern plant; installs a new GSM handset
production line in the new plant and use it as its second-largest global
GSM handset production line aIter the Qingdao plant in China; and
expand the current 750 R&D staII in India to 1,500 by 2007, striving to
develop premium products and export 30 oI India-manuIactured
products to Asia, Middle East and AIrica markets by 2007. LG
Electronics` second new plant in Pune, India covers a total area oI
211,200 square meters and is currently equipped with a production line
to manuIacture 600,000 TVs and one million reIrigerators a year. The
company is set to add production lines oI air conditioners, washing
machines, monitors, and electronic ovens, by 2005. Also, LG
Electronics is poised to install a GSM handset production line in the new
plant by early next year. The GSM handset line envisages a capacity oI
manuIacturing 2 million handsets annually, and the company expands it
to become a global GSM handset production base with a capacity oI an
annual 10 million units by 2010. In connection with its three growth
strategies Ior the Indian market, LG Electronics will invest a total oI
US$150 million in establishing Iacilities and boosting R&D eIIorts in
India by 2007. SpeciIically, it will invest US$53 million in the second
plant, another US$43 million in establishing the GSM line, and US$54
million in securing R&D manpower and boosting other eIIorts. 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 oI the Iacility is oI 1 lakh unit per year and
it shall cater to the need oI the domestic markets. LG plans to upscale its
operations to a Iigure oI 2.5 lakh units a year in the near Iuture. The
plant in addition to its current manuIacturing Iacility 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 oI its regional oIIices
Irom six to eight. LG has split its southern regional oIIice into two, one
comprising the states oI Tamil Nadu
and Kerala and the other consisting oI Andhra Pradesh and Karnataka.
In addition, it has split one oI its northern regional oIIices by making
Uttar Pradesh a separate region aIter spinning it out Irom Delhi NCR.
The other Iour regional oIIices take care oI East, Gujarat and Madhya
Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan
respectively. In the coming year, LG is also repositioning its marketing
spends, resulting in a signiIicant increase in its mass media expenditure
Ior better brand visibility. LG had a marketing budget oI Rs 320 crore in
2007 with a 60:40 split in Iavor oI below-the-line activities. Next year,
the company plans to increase the share oI mass media even as overall
marketing spends would be raised by just about 10-15.
Distribution and Marketing:
The company has number oI dealers and warehouses. They have LG
exclusive shops. For the marketing oI the products a number oI activities
are Iollowed:
1. Exhibitions are conducted Irom time to time.
2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the attention oI the
costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at Iestival time.
6. For dealer relationship they arrange dealer meeting at several time in
the year
7. LG divide dealer in gold silver etc. category to know the perIormance
oI the dealers.
8. They have their sales persons at various sub dealer store and at
mordent trade store Ior particularly Ior the promotion oI the LG product.
9. LG also uses the radio FM Ior the promotion activities.
10.Also provide capon and scratch card Ior Iestive season.
The logistics (Supply Chain Management):-
Logistics is the art and science oI managing and controlling the Ilow oI
goods, energy, inIormation, and other resources like products, services,
and people, Irom the source oI production to the marketplace. It is
diIIicult to accomplish any marketing or manuIacturing without
logistical support. It involves the integration oI inIormation,
transportation, inventory, warehousing, material handling, and
packaging. The operating responsibility oI logistics is the geographical
repositioning oI raw materials, work in process, and Iinished inventories
where required at the lowest cost possible.
Logistics Management is that part oI the supply chain, which plans,
implements and controls the eIIicient, eIIective Iorward and reverse Ilow
and storage oI goods, services and related inIormation between the point
oI origin and the point oI consumption in order to meet customers'
requirements.
5R`s oI Logistic Iollowed by LG:
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
The LG Factory is located at NOIDA & . There are three types oI
Warehouse-
1. Mother Warehouse
2. Branch Warehouse
3. Spare part warehouse
The mother warehouse is that where the products Irom the Iactory are
kept and Irom that warehouse, the products are sent to the branch
warehouse. A warehouse is a commercial building Ior storage oI goods.
Warehouses are used by manuIacturers, importers, exporters,
wholesalers, transport businesses, customs, etc. They are usually large
plain buildings in industrial areas oI cities and towns. They come
equipped with loading docks to load and unload trucks; or sometimes are
loaded directly Irom railways, airports, or seaports. They also oIten have
cranes and IorkliIts Ior moving goods, which are usually placed on ISO
standard pallets loaded into pallet racks.
In warehouse 7 locations is set up Ior the products.
Loc 1, Loc 2, Loc 3, Loc 4 , Loc 5 ,Loc6, Loc 7
Loc 1 selling
Loc 2 - second sale
Loc 3 - insurance claim
Loc 4 - write oII material
Loc 5 destroy the item
Loc 6 - court case material
Loc 7 - Ior repair
5`s oI warehouse, which the LG strictly Iollow.
1. Sweeping
2. Sorting
3. Systematic Arrangement
4. SimpliIication
5. SelI- discipline
In warehouse, the products are pinup with 3-color paper to get the
knowledge about the delivery.
1. Red Card To stop the product going into market,
2. Green card To allow the product Ior delivery in market,
3. Yellow Card AIter the product labeled with green, allow this
to move in market
Distribution Time:-
Local delivery 4 hrs.
Upcountry delivery - 12 hrs.
Within 200 km. 24 hrs.
Beyond 200 km. 48 hrs.
The above distribution time is the time oI delivery oI products Irom
warehouse to the market place, which the logistic department Iollows to
IulIill the demand in the market at right time. In LG, we have the
Iollowing process, which is Iollowed in logistic through ERP.
Order Processing
Invoicing
Indenting
Report
Order Processing booking Ior dealers /distributors
Invoicing aIter billing process/bill generation
Indenting requirement (Production Unit to branch unit)
Report distributed to all
In warehouse, there are two mode oI dispersion oI product Irom one
place to another within.
a) Hydraulic
b) Manual
In addition, there are 35 Iire extinguishers to prevent the accidental
hazard within the warehouse due to Iire. These Iire extinguishers are
valid up to year 2011. One has to Iollow the rule oI 'NO Smoking
within the warehouse
Logistics Ten Commandments - Golden Rules
1 - Warehouse 5S to be strictly Iollowed FG 2, 5 & 7 to be
properly maintained.
2 - 100 Bar-coding Ior all inward & outward transaction.
3 - Follow standard pick ship process religiously.
4 No inventory mismatch, shortage or excess monthly 100
physical stocktaking.
5 Nil 30 Ior FG 2, 3 & 5.
6 Nil transit damage.
7 File insurance claim within 2 days. Settle all claim all within 30
days.
8 No inter branch transIer without HO clearance.
9 PSI Ieeding into system by 25th oI every month. Ensure 90
accuracy.
10 Apply physical FMFO.
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply Equipments
1- 100 Bar code scanner.
2- ERP Invoice Generation Process.
3- Hydraulic Trolleys Ior material movement.
4- Pallets Ior saIety oI material.
CUSTOMER SERVICE:
The best and the biggest international brands are here in India but the
irony iI it all: where is the aIter-sales-service? So integral to a brand, so
critical Ior its success and so taken Ior granted in developed markets! In
India, aIter sales service is, Ior want oI a better description, the pits. So
what`s stopping the best companies Irom pulling out all the stops when
it comes to providing the best service? Do customers expect Ior too
much? Or is it that in India they don`t really care. Brand Equity Ianned
out to MNC as well as Indian consumer durable companies, stockiest
and dealers, analysts and market researchers to get Ieel oI what`s really
keeping aIter sales Irom being used as a cutting edge marketing tool in
pushing products across categories. Customers support Iollowing the
purchase oI a product or service. In some cases, aIter-sales service can
be almost as important as the initial purchase. The manuIacturer, retailer,
or service provider determines what is included in any warranty (or
guarantee) package. This will include the duration oI the warranty
traditionally one year Irom the date oI purchase, but increasingly two or
more year`s maintenance and/or replacement policy, items
included/excluded, labor costs, and speed oI response. In the case oI a
service provider, aIter-sales service might include additional training or
helpdesk availability. OI equal importance is the customer's perception
oI the degree oI willingness with which a supplier deals with a question
or complaint, speed oI response, and action taken.
LG also had a big problem oI aIter sale service in India. During the
project we also came to know that aIter sale service becomes the big
issue in the region. Customers as well as dealer were Iacing the problem
oI aIter sales service. Because oI this problem many dealer in the region
were not ready to sell LG product. So it becomes the big issue. But LG
has taken some solid steps towards improving customer`s perception and
experience oI aIter sales service. Because it very important in
competitive market to provide the best service. L G Electronics has
signed a memorandum oI understanding with 23 Industrial Training
Institutes to strengthen its aIter sales service in India. The company aims
to recruit 10,000 people by the end oI this year as a part oI its branding
strategy to Iocus on service and move away Irom discounting. L G
Electronics has identiIied eight states with high aIter 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
Iind a solution Ior eIIective aIter sales service since last two years. There
is a huge need oI trained manpower Ior the aIter sales service to align
with the company's expansion and Iocus on the GSM mobiles and the
personal computer segments."
1. 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 oI signing with Uttar Pradesh.
2. L G Electronics, with 1200 service centers, has already recruited 300
students and plans to beeI up the number to 10,000 by the year-end.
3. "The company has oIIered a scholarship to the selected students Ior
the last six months oI their training program,"
4. The company will invest Rs 8 crore (Rs 80 million) in employee
development program this year with an aim to attain a 8 per cent attrition
rate.
5. The company moved away Irom 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.
6. 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
diIIerentiator, and leveraged thus.
7. LG has the widest service network across the country; some estimates
put it at a signiIicant multiple oI service-inIrastructure Irom our nearest
competitor. While the sale size may also be a nice multiple Irom 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 Ior the next convenient day Ior you (hence the Iirst 1), and
show up in the promised 1-hour slot (hence the second 1). II the next
convenient day Ior you is the next day, that`s great too. It`s a disruptive
action in an industry (including LG) having traditionally shied away
Irom
its service responsibilities, and thus not leveraging any mileage Irom it.
9. The company is promoting 211 through ATL, probably the Iirst time
aIter sales service is being communicated in this Iashion 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 oI which
revolve around prompt response.
10.The Iirst LG-owned service centre opened in Gurgaon. (Service in
India generally works through authorized service centers, in LG`s case
they work exclusively Ior LG.) A company-owned service centre tries
that much harder, knows things better, and can even contribute as a
revenue center.
Objective of the project
Primary objective
The main objective oI Iiled survey during the project was to Iind out
the market share oI the LG and also calculate the display share.
Find out the positional dealer who can sale the LG product in large
volume.
The main objective oI research was to identiIy potential dealer and
development these dealer. So LG can make them their direct dealer.
This will ease the dependence on the some big dealer like
Maharashtra and Mahaveer electronics.
Find out the problem Iaced by the dealer in sales and the distribution.
Secondary objective
The Objective was to Iind out that how Iar the exhibitions are helpIul
in branding,
While purchasing the consumer durables which parameter is most
important Ior the consumer?
Do the consumers preIer the Iinancial Iacility Ior buying consumer
durable?
How Irequently consumers change the consumer durable?
To enhances the knowledge oI consumer durable market.
To increases the knowledge consumer durable product oI LG.
To enhances the knowledge about the marketing and branding
activity.
Research Methodology:
Research methodology is considered as the nerve oI 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 oI survey was to collect appropriate data,
which work as a base Ior drawing conclusion and getting result.
ThereIore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks oI the methods
but also logic behind the methods used in the context oI a research study
and it explains why a particular method has been used in the preIerence
oI the other methods
Research design
Research design is important primarily because oI the increased
complexity in the market as well as marketing approaches available to
the researchers. In Iact, it is the key to the evolution oI successIul
marketing strategies and programmers. It is an important tool to study
buyer`s behavior, consumption pattern, brand loyalty, and Iocus market
changes. A research design speciIies the methods and procedures Ior
conducting a particular study. According to Kerlinger, 'Research Design
is a plan, conceptual structure, and strategy oI investigation conceived as
to obtain answers to research questions and to control variance.
Type of research is Descriptive Research
The type oI research adopted Ior study is descriptive. Descriptive studies
are undertaken in many circumstances when the researches is interested
to know the characteristic oI 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 oI people in a given population
who have in particular manner, making projections oI a certain thing, or
determining the relationship between two or more variables. The
objective oI such study is to answer the 'who, what, when, where and
how oI the subject under investigation. There is a general Ieeling that
descriptive studies are Iactual and
very simple. This is not necessarily true. Descriptive study can be
complex, demanding a high degree oI scientiIic skill on part oI the
researcher.
Descriptive studies are well structured. An exploratory study needs to be
Ilexible in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed every now and then. It is
thereIore necessary, the researcher give suIIicient thought to Iraming
research.
Questions and deciding the types oI 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 oI elements Irom a
given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number oI characteristics Irom sample
elements are collected and analyzed. Cross sectional studies are oI two
types: Field study and Survey. Although the distinction between them is
not clear- cut , there are some practical diIIerences, which need diIIerent
techniques and skills. Field studies are ex-post-Iactor scientiIic
inquiries that aim at Iinding the relations and interrelations among
variables in a real setting. Such studies are done in live situations like
communities, schools, Iactories, and organizations.
Another type oI cross sectional study is survey result, which has been
taken by me. A major strength oI survey research is its wide scope.
Detail inIormation can be obtained Irom a sample oI large population
.Besides; it is economical as more inIormation can be collected per unit
oI cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research
includes survey and Iact Iinding enquiries oI diIIerent kinds oI the major
purpose. Descriptive research is description oI the state oI aIIairs, as it
exists at present. The main characteristic oI 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 oI research utilized in
descriptive research are survey
methods oI all kinds including comparative and co relational methods.
The reason Ior using such needs to be Ilexile in its approach, but a
descriptive study
BRANCH
1 2 3 in contrast tends to be rigid and its approach cannot be changed
ever now and then.
DEALER MANAGEMENT
Mapping oI regional dealers.
They have been divided into three categories on the basis oI their
turnover and the selling capacity.
-1
-2
-3
-1 Includes the modern trade and they have direct billing Irom the
branch oIIice. They have high turnover and the company depends
heavily on them-2 includes the distributors. They have direct billing
Irom the branch oIIice. Their turnover is also high.
-3 Includes the sub dealers .They have direct billing Irom distributors or
Irom the branch oIIice. Their turnover is not so high, but there are Iew
sub dealers whose potential is quite high. According to sales the branch
has designated as gold and silver sub dealers.
OBJECTIVE OF THE STUDY
The objective was to Iind out the market share oI LG products,
advantages and disadvantages oI LG products Irom dealers and to Iind
out what problems they are Iacing with the LG products so that
problems can be resolved to increase the sale.
Data collection methods:
AIter the research problem, we have to identiIy and select which type oI
data is to research. At this stage; we have to organize a Iield survey to
collect the data.
One oI the important tools Ior conducting market research is the
availability oI necessary and useIul data.
Primary data: For primary data collection, we have to plan the Iollowing
Iour important aspects.
Sampling
Research Instrument
Secondary Data - The Company`s proIile, journals and various
literature studies are important sources oI secondary data.
Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
Questionnaires:
This is the most popular tool Ior the data collection. A questionnaire
contains question that the researcher wishes to ask his respondents
which is always guided by the objective oI the survey.
Pie chart:
This is very useIul diagram to represent data , which are divided into a
number oI categories. This diagram consists oI a circle oI divided into a
number oI sectors, which are proportional to the values they represent.
The total value is represented by the Iull create. The diagram bar chart
can make comparison among the various components or between a part
and a whole oI data.
Bar chart:
This is another way oI representing data graphically. As the name
implies, it consist oI a number oI whispered bar, which originate Irom a
common base line and are equal widths. The lengths oI the bards are
proportional to the value they represent.
Preparation oI report:
The report was based on the analysis and presented with the Iindings and
suggestions. The sample oI the questionnaires is attached with the report
itselI.
Sampling Methodology:
Details oI the sampling methodology, I have made questionnaire. The
one is made Ior the Customer.
No. oI questions in questionnaires Ior customer: 07
No. oI question related to LG product: 03
No. oI people met during the research: 200
No. oI respondents during the research: 50
Sample unit ProIessionals, Business man,
Employees, House wiIe, Working women, Students
Analysis:
Q1. Have you purchased any consumer durable during Exhibitions?
Yes
No
InIerences
1. 65 oI Customers have not purchased any consumer durable Irom
exhibitions.
2. Only 35 people have purchased.
3. It shows that consumers are coming in the exhibition Ior knowledge
oI product and also they want to know that weather there is actual price
diIIerence in exhibition and shop or not.
4. Consumers also want to compare to the diIIerent brand which are
available in the exhibition.
5. So exhibitions are more useIul to increases brand awareness.
6. People are less interested to purchase product Irom the exhibition.
Q.2While purchasing consumer durable which parameter inIluences
you?
Price
Product Ieature
Brand
Service
Durability
InIerence
1. 30 oI customer gives importance to price. So it shows that Indian
consumers are very price sensitive. They give more importance to price
over the brand.
2. 26 give importance to brand. So price and Brand matter a lots Ior
the costumers. And they are also want best brand in best price.
3. 19 to product Ieature Service 16 and durability 9 Service is also
a big Iactor Ior the customer they are less interested in the durability.
Q3. From where you preIer buying consumer durables
Exhibitions
Co.shoppee
Showroom
InIerence:
1. A majority oI customers preIer to buy Irom showrooms. Very less
proposition oI customers buys Irom Exhibitions.
2. 47 customers are preIer to by Irom the showrooms because the
showrooms are more convenient to customers they also think that these
shops give more discounts.
3. People are less interested to buy Irom the exhibition they only visit
the exhibition Ior price quotation oI the product and the comparison oI
the product.
Q.4.You preIer to buy Irom the same as you have mentioned in Q.3
because oI Iollowing reasons
Attractive Price
Service
Demonstrations
OIIers
InIerence
1. Customers buy Irom showrooms because oI the service and
convenience.
These are two main Iactors.
2. Customers are preIerred to buy Irom the showroom because oI they
think that these convenient store may provide good aIter sell service.
3. Customer also thinks that there is more chance to bargain and they
can get more discounts in these showrooms.
4. Price also a Iactor that attract the customer in these showrooms.
Q.5.Which consumer durable you have and oI which brand?
CTV
LCD
PLASMA
REF
WM
MW
AC
InIerence
In CTV section maximum customers have Onida, in LCD Sony is the
leader, In plasma BPL is the leader, In ReI LG is the leader, MW LG is
the leader. In WM there are companies and in AC also.
Q.6. How Irequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
More than 10 years
InIerence
1. Customers preIer to change consumer durables within 5-10 years. In
India people do not change consumer durable Irequently.
2. 23 customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not preIer to change their
consumer durable Irequently.
Q.7.Do you preIer any Iinancing scheme to purchase consumer
durables?
Yes
No
InIerence
Majority oI customers do not preIer any Iinancial scheme.
Dealer survey Findings
1. By calculating the display share we Iound that in most oI store LG has
50 display share almost all categories.
2. By the actual monthly sale oI particular store we came to know the
capacity oI the store and how much product can they sale.
3. It helps us to know that weather dealer is capable oI being a direct
dealer
oI LG or not and it also helps to Iind out the new dealer who are capable
oI being the dealer oI LG.
4. We also came to know while visiting the shops that there was big
problem
oI aIter sale service.
5. Many dealers were Iacing the problem oI aIter sale service because
there
is no Iollow up calls Irom LG.
6. Demo calls also not done properly.
7. The top competitor oI LG product in is SAMSUNG.
8. In area the perIormance oI LG is in better position but the
competitor also hold closer margin.
9. There is high growth oI sale in market due to booming in new
technology and better service.
10.Word oI mouth plays a vital role in awareness among customer. This
is one Iactor, which can play a good role in promotion oI products as
well as demonstration given by the shopkeeper also plays a vital role Ior
customer.
RECOMMENDATIONS AND SUGGESTIONS:
1. LG should improve it`s aIter sale service because its hits badly LGs
market share in region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at Irequent time
interval and Ieed back should be considered positively.
4. The company should look into the matter oI person hiring Ior in shop
demonstration. A big LG showroom should have at least 2 such kind oI
person.
5. LG should try new dealer who have the potential. So they can target
more market.
6. As there is a bottle neck competition between Samsung and LG, it is
necessary to take measure steps to overcome the area oI downIall in LG
with respect to Samsung.
7. The marketing managers should make better relations with dealers
and reputation oI the company.
8. Customer considers quality as their Iirst preIerence, so the company
should give more stress on this.
9. The switching oI customer Irom LG product to other brand is due to
the bed aIter sell service in shop.
10.The product is well aware and it is on top oI mind oI customer.
So company should always improve services and update their
technology.
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 Iound out that the majority oI customers don`t
buy consumer durables Irom exhibitions. They just visit the exhibitions
to see the co. latest model.
3. They want to buy Irom the showrooms or Irom co. showrooms. For
them service is important .Beside convenience and other Iactors service
is key Iactor.
4. Also majority oI customers do not want any Iinancing scheme Ior
purchasing the durables.
5. There was heavy rush on weekends so large numbers oI ISD`s were
appointed that day. Also the live demo calls helps in selling. Exchange
oIIers also generate sale.
6. Customers are also now very choosy in buying the product and it is
important Ior the company to make loyal customer oI their brand.
7. In survey we Iound that LG has captured maximum market share in
every category. LG dominates CTV, LCD, and ReIrigerator, and
Washing machine, category.
8. LG and Samsung have bottle neck competition in TV and REF.
category.
9. The product is well aware and it is on top oI mind oI customer.
10.Customers are also now very choosy in buying the product and it is
important Ior the company to make loyal customer oI their brand.
RECOMMENDATIONS AND SUGGESTIONS
1. Exhibitions do not help to generate so much sells but they should be
conducted regularly. This helps in generating awareness regarding the
product in customers which ultimately helps in sales.
2. Also it is helps in advertising Ior the new products. Like in this
exhibition new LCD SCARLET was advertised. Company should
always Iocus on service.
3. Display share should be increased where there is less than 50 as LG
also believes that 'JO DIKHTA HAI WO BIKTA HAI.
4. Company should try to improve service. No doubt the company
products have technically edge over competitors but in long run it may
hamper the company`s proIit.
5. Company should concentrate more on its major drivers LCD, IT, and
GSM. Branding and promotions should be done eIIectively as it creates
a long lasting image in the mind oI customers.
6. Company should also cater to the needs oI sub dealers as some oI the
sub dealers have potential oI high sales.
LIMITATIONS
Every study has certain limitations. In our study, also there were certain
limitations, which I could not able to solve.
1. The research was conducted in a very small area.
2. Our research work period witness the biggest ups and downs in
product sale oI diIIerent brands, which aIIected the perception oI the
customer.
This was biggest drawback oI my study.
3. Time Iactor was also important Ior us. We had limited time Ior the
research, Ior which a Iull-Iledged report was insuIIicient Ior me.
4. The customer Iilled the questionnaire mostly in careless manner, so it
was diIIicult to make them hold Ior time.
5. We had only Iound the upper-middle class Iamily to Iill up the
questionnaire, but generally, an average middle class Iamily was
required Ior the study.
6. The sample size is also very small which represent my research on
consumer behavior
BIBLIOGRAPHY
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times oI India
Consumer survey Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions?
a) Yes
b) No
Q.2While purchasing consumer durable which parameter inIluences
you?
a) Price
b) Product Ieature
c) Brand
d) Service
e) Durability
Q3. From where you preIer buying consumer durables
a) Exhibitions
b) Co.shoppee
c) Showroom
76
Q.4.You preIer to buy Irom the same as you have mentioned in Q.3
because oI Iollowing reasons
a) Attractive Price
b) Service
c) Demonstrations
d) OIIers
e) Convenience
Q.5.Which consumer durable you have and oI which brand?
a) CTV -------------------
b) LCD -------------------
c) PLASMA -------------------
D) REF -------------------
E) WM -------------------
F) MW -------------------
G) AC -------------------
Q.6. How Irequently you change your consumer durables?
a) 1-3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
77
Q.7.Do you preIer any Iinancing scheme to purchase consumer
durables?
a) Yes
b) No
APPENDIX
A.S.I Area Service In charge
A.S.M Area sales manager
B.S.I Branch Service In charge
CAC Commercial Air Conditioning System
C.S NET Customer Service Net
D.S.C. Direct service centre.
L.H.D Logistics Head oI department
R.E.F ReIrigerator