Beruflich Dokumente
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LG company in India
CHAPTER 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Indian consumer durables market used to be dominated by few domestic players like
Godrej ,Voltas Allwyn and Kelvinater .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 MACHINES.
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
Korean companies has been maintaining the lead in the industries with LG being leader in
most all the categories.
The rural market is growing faster than the urban market, although the penetration level is
much more. 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
Cr in India this year in research and development, brand-building and other
marketing initiatives.
The company having a turnover of Rs.9500 Cr. and market share of 26 percent, is
investing Rs. 360 Cr. on brand-building and other marketing initiatives and
around Rs. 140 Cr. on research and development, besides launching new
platforms in information technology and related areas
LGs innovative 211 campaign to provide quality after-sales service, will also
be expanded the existing 22 to 40 cities by next month,
The campaign, for which IT infrastructure has been set up, includes the
companys response to customer complaint within the two hours. The fixing time
for companies varies from one hour to a maximum of 24 hours.
CHAPTER 2
LITERATURE REVIEW
LITERATURE REVIEW
Competitive analysis
Competitor analysis is an important part of firms development of its strategy. Its
importance lies in understanding of competitors, their strategy, and resources and
capabilities. More specifically competitive analysis also allows a firm to access
its own firm verses competitors and plan for what competitors action may be as
a reactive to action the firm may take.
A competitor analysis provides a firm with the knowledge to leverage its strength
and address its weakness and, currently, take advantage of competitors consist
their strength. Finally, competitor analysis also gives a firm a better
understanding not only of the competitors but also their overall sector and where
the emerging opportunities may be.
CHAPTER 3
Primary Objective
The main 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.
The main objective of research was to identify 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 faced by dealer in sales and the distribution.
Secondary Objective
The objective was to find out that how far the exhibitions are helpful in
branding.
While purchasing the consumer durables which parameter is most
important for the consumer
Do the consumers prefer the financial facility for buying consumer
durable?
How frequently consumers change the consumer durable?
To enhances the knowledge of consumer durable market.
To enhances the knowledge about the marketing and branding activity.
CHAPTER 4
COMPANY PROFILE
VISION
GROWTH STRATEGY
Fast Innovation, Fast growth
CORE COMPETENCY
Product leadership, market leadership, people leadership
CORPORATE CULTURE
No excuse, we not I, fun workplace
SLOGAN
Lifes Good represents LGs determination to provide delightfully smart products
that will make your life good.
The LG Electronics Lifes Good consists of the LG logo, seal and the slogan.
Lifes Good set in charlotte sans typeface curved around the LG symbol. The
curving of the slogan reinforces LGs personality and uniqueness. The consistent
usage of this signature clearly establishes the company and unifies every division
and product from LG Electronics across the globe.
THE SYMBOL
10
Red colors represent our friendliness and gives a strong impression of LGs commitment to
deliver the best.
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
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STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying business
opportunities through various associative Relationships with some of the
worlds leading companies.
LG Electronics is striving to become number one in the world by mingling
in various business and technological fields and making strategic alliances with
world famous companies. Strategic association between corporation, in which
companies with different infrastructures cooperate in the fast developing 21 st
century business field, is of key significance in terms of strengthening the
existing industry and creating is new one.
12
CHAPTER 5
INTRODUCTION
13
INTRODUTION
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
durables market.
Consumers durables market is expected o grow at 10-15% in 2007-2008. It is
growing very fast because of rise in living standards, easy access to consumer
finance, and wide range of choice, as many foreign players are entering in the
market
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for consumer
durables has increased significantly. Products like washing machines, air
conditioners, microwave ovens, color television (CTVs) are no longer considered
luxury items. However, there are still very few players in categories like vacuum
cleaners, and dishwashers.
Consumer durable sector is characterized by the emergence of MNCs exchange
offers, discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNCs major target is the growing middle
class of India. MNCs offer superior technology to the consumers
Whereas the Indian companies complete on the basis of firm grasp of the local
market, their well-acknowledged brands, hold over wide distribution network.
However, the penetration level of the consumer durables is still low in India.
In 2004, LGEIL also up its second Greenfield manufacturing unit in pune,
Maharashtra that commences operations in October this year. Covering over 50
acres, the facility manufactures color television, Air Conditioners, Refrigerators,
Washing Machines, Microwave Ovens color Monitors and GSM phones.
LG has been able to craft out in eight years, a premium brand positioning in the
Indian market and is today the most preferred brand in the segment.
14
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$21800 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.
STRENGTHS
Premium Pricing, No Discount.
15
WEAKNESS
OPPORTUNITY
THREATS
Way behind market leader
Stagnant urban demand
Nothing unique about strategy
SAMSUNG
HYUNDAI
KOREA
16
HAIER
PHILIPS
PANASONIC
SHARP
HITACHI
SANSUI
AKAI
AIWA
CHINA
Holland
JAPAN
Rs. 360 Cr. on brand-building and other marketing initiatives and around Rs. 140 Cr. on
research and development, besides launching new platforms in information technology and
related areas.
LG Electronics is one of the leading companies in the field of electronics with a global
presence in many countries. Before briefing, I have divided the introduction part into three
main sub parts.
1. LG Global
17
18
CHAPTER 6
HISTORY OF THE COMPANY
19
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.
2.
3.
4.
5.
LG Philips LCD
LG Chemical
LG Powercom
LG Twins
LG Dacom
CDMA Handsets
GSM Handsets
3G Handsets
Cellular phones
Digital Appliance
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Air Conditioner
Refrigerators
Microwave Ovens
Washing Machines
Vacuum Cleaners
Home Net
Compressors for Air Conditioners and Refrigerators
Digital Display
1)
2)
3)
4)
5)
6)
7)
8)
Plasma TVs
LCD TVs
Micro Display Panel TVs
Monitors
PDP Modules
OLED Panels
USB Memory
Flat Panel Computer Monitors
Digital media
1) home theater system
2) Super Multi DVD Rewriters
3) CD+RW
4) Notebook PCs
5) Desktop PCs
6) PDAs
7) PDA Phones
8) MP3 Players
9) New Karaoke System
10) Car Infotainment
21
22
In Feb. 2007 LG Electronics and YAHOO formed a strategic alliance. Yahoo mobile services
will be available. This service is targeting 10 million LG mobile phones in over 70 countries.
In Mar. 2007 LG Electronics and Google formed a strategic alliance.
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
The brand of LG is delightfully smart. LG strives to enhance the consumers life and lifestyle
With intelligent features, institutive functionality and exceptional performance.
Trust
Innovation
People
Passion
Reliable products
Simple design
Ease of use
Extraordinary experience
Personality describes the human characteristic that are expressed to the customer
through
1. Trustworthy, considerate
2. Practical, Friendly
PRODUCT LEADERSHIP
We are focusing on six development areas to become the product leader.
1.
2.
3.
4.
5.
6.
New Machine
Reliability
Conventional Installation
Environment Friendly Product
Low Noise & Vibration
Energy Saving
24
QUALITY INNOVATION
The policy of quality assurance is to provide customers with utmost satisfaction by supplying
zero defects. LG proceeds in a hierarchal manner. It is named as LG WAY
VISION
JEONG-DO Management is LGs unique application to ethics. LG will succeed through
fair management practices and constantly developing our business skill.
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a.
b.
c.
d.
Providing great value to customer through constant innovation & and development
Equal opportunities
Equal Treatment
Honest with our customer.
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.
26
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 site-of-the manufacturing facility at Greater Noida, near Delhi, in 1998,
with an investment of Rs. 500 Crs.
LG Corporate office is located at Plot No. 51, Udyog Vihar, Kasna Road, Greater Noida,
India.
This facility manufactured Color Television, Washing Machines, Air Conditioners and
Microwave Ovens.
Company is setting up a chain of executive premium showrooms. LG plans to launch 60
premium brand shoppers by the end of the first quarter of this year. At present, LG has a total
of 83 LG stores across the country, of which 45 are shopper and 38 are exclusive stores.
Brand shoppers will be placed in the premium segment and the target audience will comprise
buyers interested in premium and high end product.
LG Brand shop 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 of LG product 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. Ta attract inspirational and young consumer across India,
company will roll out a new marketing strategy. The exercise will cost the company Rs. 360
Cr.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today.
LG Electronics is continually providing, superior technology product & value for more than
50 Lakh household in India. LGEIL is celebrating the 11th anniversary this year.
27
CHALLENGES IN INDIA
The challenges faced awareness by LG when entered in Indian market.
1.
2.
3.
4.
segment.
5. Price sensitiveness of the Indian consumer.
28
Product Localization
1.
2.
3.
4.
29
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 Cr. 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 per cent of the Indian arms turnover.
30
31
32
33
Logistics is the art and science of maintaining and controlling the flow of goods, energy,
Information, and other resources like products, services and people from the source of
production to the marketplace. It is difficult to accomplish any marketing or manufacturing
without logistical support. It involves the integration of information, transporting, inventory,
warehousing, material handling, and packaging. The operating responsibility of logistics is
the geographical repositioning of raw material, work in progress, and finished inventories
where required at the lowest cost possible.
Logistics Management is that part of the supply chain. Which chain, which plans, implements
and controls the efficient, effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the point of consumption in order to
meet customers requirements.
Right Time
Right Place
Right Condition
Right Cost
Right Handling
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Pune
Kolhapur
Sholapur
Satara
Sangali
The LG Factory is located at NOIDA & PUNE. There are three types of warehouse:1. Mother Warehouse
2. Branch Warehouse
3. Spare 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.
A warehouse is a commercial building for storage of goods. Warehouse are used by
manufactures, Importer, Exporters, Wholesalers, Transport Business, customs etc. they are
usually large plain building in industrial areas of cities towns. They come equipped with
loading docks to load and unload trucks; or sometimes are loaded directly from railways,
airport, or seaports. They also often have cranes and forklifts for moving goods, which are
usually placed on ISO standard pallets loaded into pallet racks.
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Sweeping
Sorting
Systematic Arrangement
Simplification
Self-Discipline
In warehouse, the products are pin up with 3-color paper to get the knowledge about the
delivery.
1. Red Card To stop the product going to market.
2. Green Card To allow the product for delivery in market.
3. Yellow Card After the product labeled with green, allow this to move in market.
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Distribution Time
Local Delivery - 4 hrs.
Upcoming Delivery - 12 hrs.
Within 200 km. 24 hrs.
Beyond 200 km 48 hrs.
The above distribution time is the time of delivery of product from warehouse to the market
place, which the logistic department follows to fulfill the demand in the market at the right. In
LG, we have the following process, which is followed process, which is followed in logistic
through ERP.
Order processing
Invoicing
Indenting
Report
Indenting
- Requirement
Report
- Distributed to all.
In warehouse, there are two mode of dispersion of product from one place to another within.
A) Hydraulic B) Manual
In addition, there are 35 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.
37
DELIMMA
1. In transit material damage checking.
2. Cost target achievement.
3. Natural events tracking.
Equipments
1.
2.
3.
4.
38
39
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 whats stopping the best companies from pulling out all the stops when it comes
to providing the best service? Do customer expect for too much? Or is it that in India they
dont 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 whats
really keeping after sales from being used as a cutting edge marketing tool in pushing
products across categories.
Customer support following the purchase of a product or service. In some cases, aftersales service can be almost as important as the initial purchase. The manufacturer, retailer, or
service provider determine what is included in any warranty traditionally one year from the
date of purchase, but increasingly two or more years maintenance and replacement policy,
items included, labor costs, and speed of response. In the case of a service provider, aftersales service might include additional training or helpdesk availability. Of equal importance
is the customer is the customers perception of the degree of willingness with which a
supplier deals with a question or complaint, speed of response, and action taken.
40
1. LG Electronics, with 1200 service centers, has already recruited 300 student and plans
to beef group the number to 10,000 by the year-end.
2. the company has offered a scholarship to the selected for the last six months of their
3.
training Programmer.
The will invest Rs. 8 Cr. (Rs 80 million) in employee development Programmers this
year.
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. 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 competitor.
42
ADVERTISING
Advertising plays an instrumental role in establishing a brand and its success. But in todays
environment, advertising should be molded looking at various other parameters such as the
growth or the performance of the concerned industry, the respective companys performance
and the brand pull.
For an example, in the earlier stages of establishing itself in the market, a company should
follows the strategy of imagery advertising, but after creating a strong foothold in the
consumers household, the brand should change its strategy for its marketing communication
to product centric communication and more interactive communication on the ground level.
Taking another example of LG Microwave ovens, they have always spoken about health
wave and the initiatives taken by them for the cookery classes. But in todays changed
environment, since the price points give us an opportunity to reach out to a greater audience,
they have changed the communication to? Garam Garam Khaana? Thereby addressing the
mass media.
In our first year of operations (97-98) the communication was focused on imagery advertising
and we leveraged its association with world cup cricket to get closer to the end consumers.
During 99-00, the marketing communication was focused on creating a superior image in
technology, thereby taking about digital LG and cyber LG with the advent of internet
enabled products.
Now, we are taking the brand closer to the consumer by taking an emotional route in our
advertising and marketing communication. We took the health platform and communication
the Health Benefits their media strategy revolves around using different media vehicles
depending on the product category must target segment for that particular product. For
instance in case of CTVs. We focused on the channels providing high reach opportunities.
Similarly for Air Conditioners, they focused on movie channels and niche magazine for their
media vehicles. The objective was to retain the premium image of this product category.
For Refrigerators, they focused on the family oriented channels as a strategic move to target
the right segment.
On the whole, LG tried to spread its investments across all channels.
43
LG was one of the few companies that recognized the emerging trend in consumer needs
towards health consciousness. Our advertising strategy has been to communicate what our
products actually deliver health, convenience, advanced features, and technological
superiority. LG communication, till date, was centered at the theme of protective health. It
was driven by LGs concern for the consumers health, and having technology that work
towards protecting them this platform gave LG the ability to cater to the benefits that
consumers were looking for and was focused on product and technology.
LG brand communication speaks the language of active health which is all about a vibrant
and colorful life. The active technology allows consumers to go ahead and explore the myriad
vignettes of their lives and free them from all worries and cares. It allows them to live their
dreams in full color and enjoy like to the fullest.
This is a positive step for the brand in connecting with consumers at a personal level, thereby
building bonds that further cement the LG brand in the consumers life. During the seven
years of existence in the country, LG has managed to capture a premium brand positing in the
market through its integrity, dynamism and innovation making it a symbol of trust and
quality.
LG WAS VERY ACTIVE IN ITS ADVERTISING CAMPAIGNS BUT LATELY
THERE HAS BEEN AN IN LULL PROMOTIONS.
LG is not so available in advertisements but they are very much visible in other areas. They
believe that marketing is beyond advertising and is beyond a 30-second. There are some
companies which have a visibility issue, awareness issue, top-of-mind recall issue but when
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45
CHAPTER 7
RESEARCH METHODOLOGY
46
RESEARCH METHOLOGY
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.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used
in the preference of the other methods.
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.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used
in the preference of the other methods.
Research Design
47
RESEARCH
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 knowledge the proportion of people in a
given population who have in particular manner, making projection 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.
Descriptive studies are well structured. An exploratory study needs to be Flexible in its
approach, but a descriptive study in contrast tends to be rigid and its cannot be changed every
now and then. It is therefore necessary, the researcher give sufficient thought to framing
research.
48
49
After the research problems, 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 Companys profile, journals and various literature studies are
important sources of secondary data.
50
QUESTIONNAIRES
This is the most popular tool for the data collection. A questionnaire 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.
Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value key represent.
Preparation of report:
The report was based on the analysis and represented with the findings and suggestions. The
sample of the questionnaires is achieved with the report itself.
51
SAMPLING METHODOLOGY
Details of the sampling methodology, I have made questionnaire. The one is made for the
customer.
07
03
200
50
Sample unit
Professional, business man,
Employees, house wife,
Working women, students.
52
CHAPTER 8
DATA ANALYSIS
53
DATA ANALYSIS
Q.1 Have you purchased any consumer durable during Exhibition.
Yes
No
35%
65%
Yes
No
1. 65% of Customer Have not purchased any consumer durables from Exhibitions
2. Only 35% people have purchased
3. Consumer also wants to compare to the different brand which are available in the
exhibition.
4. Exhibitions are more useful increase brand awareness
5. People are less interested to purchase product from exhibitions.
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Brand
Product feature
Brand
Service
Durability
9%
30%
16%
Price
Product feature
26%
Brand
19%
Service
Durablity
1. 30% of consumers give 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 for the consumers.
55
17%
47%
Exhibitions
36%
Co. shoppee
Showroom
Q.4 You prefer to buy from the same as you have mentioned in Q.3 because of following
reasons.
56
Attractive price
Service
Demonstrations
Offers
14%
14%
22%
Offers
Attractive price
Service
23%
convenience
22
Demonstration
14
27%
1. Customers buy from showroom because of the service and convenience. This are two
main factors.
2. Customer are preferred to buy from the showroom because of they think that these
convenient store may provide good after sell service.
3. Price also a factor that attract the customer in these showrooms.
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CTV
LCD
PLASMA
REF
WM
MW
AC
18
16
14
12
CTV
10
LCD
PLASMA
REF
MW
WM
AC
1. In CTV section maximum have Onida, in LCD Sony is the leader, In plasma BPL is
the leader, MW LG is the leader, In WM there are companies and in AC also.
1-3 years
3-5 years
5-10 years
More than 10 years
23%
4%
19%
1-3 years
3-5 years
54%
5-10 years
more than 10 years
1. Customer prefers to change consumer durable within 5-10 years. In India people do
not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
59
43%
57%
Yes
No
60
CHAPTER 9
FINDINGS
61
62
FINDINGS
1. Secondary supports play an important role in the customer 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 dont buy consumer
durables from exhibitions. They just visit the exhibitions to see co. latest model.
3. They want to buy from the showrooms. For them service is important. Beside
convenience and other factors service is key factor.
4. Also majority of customers do not want any financing scheme for purchasing the
durables.
5. There was heavy rush on weekends so large numbers of ISDs were appointed that
day. Also the live demo calls helps in selling. Exchange offers also generate sale.
6. Customers are also now very choosy in buying the product and it is important for the
company to make loyal consumer of their brand.
7. In survey we found that LG has captured maximum market share in every category.
LG dominates CTV, LCD. And refrigerator, 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 of mind of customer.
10. Customers are also now very choosy in buying the product and it is important for the
company to make loyal consumer of their brand.
63
CHAPTER 10
CONCLUSIONS
64
CONCLUSIONS
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 for the new products. Like in this exhibition new LCD
SCARLET was advertised. Company should always focus on service.
3. Display share should be increased where there is less than 50% as LG also believe
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 companys profit.
5. 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.
6. 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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CHAPTER 11
LIMITIONS
66
LIMITATION
Every study has certain limitations. In my study, also there were certain limitations,
which I could not able to solve.
1. The research was conducted in a very small area.
2. My research work period witness the biggest ups and downs in product sale of
different brands, which affected the perception of the customer. This was
biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete my
research; full-fledged report was insufficient for me.
4. The consumer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
5. I had only found the upper-middle class family was required for the study.
6. The sample size is also very small which represent my research on consumer
behavior.
67
CHAPTER 12
BIBLOGRAPHY
68
BIBLOGRAPHY
Sites
Www. LGindia.com
Www. Google.com
Www. Wikipedia.com
Www.LG.co.in
Books
Business today
LG magazine
Economic times News paper
Times of India.
Marketing Management Philip Kotler
Electronics For You - Magazine
69
CHAPTER 13
QUESTIONNAIRE
70
71
a)
b)
c)
d)
e)
f)
g)
CTV
LCD
PLASMA
REF
WM
MW
AC
1-3 years
3-5 years
5-10 years
More than 10 years
72