Project Report on Formulation of Marketing Strategies to improve market share of LG microwave Owen

Submitted by RAJESH L. KAMBLE REG NO:-520951125 2010-2011 Sikkim Manipal University India.

karRox Technologies Ltd. Center code no:-02754 Project Report Formulation of marketing strategies to improve market share of LG microwave Owen Submitted in partial fulfillment of the requirement for the degree of masters of business administration [marketing] of Sikkim Manipal University. India By Rajesh L. kamble Reg no:-520951125 2010 - 2011. Sikkim Manipal University of Health, Medical & Technological sciences, Distance
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education wing syndicate house, manipal 576104 DECLARATION I hereby declare that the project report entitled Formulation of marketing strategies to improve market share of LG Microwave Owen submitted in partial fulfillment of the requirement for the degree of masters business of administration to Sikkim manipal university, India is my original work and not submitted for the award of any other degree, diploma, fellowship or any other similar title prize.

Place: - Mumbai Date: 520951125

Rajesh L. Kamble Reg no:-

Examiners Certification The project report of Mr. Rajesh L. Kamble entitled Formulation of marketing strategies to improve market share of LG microwave oven is approved and is acceptable in quality and form.

Internal Examiner Examiner Name: Designation: -

External Name:Designation:-

UNIVERSITY STUDY CENTER CERTIFICATION. This is to certify that the project report entitled Formulation of marketing strategies to improve market share of LG Microwave oven. Submitted in partial fulfillment of the requirements for the degree of masters of business administration of Sikkim Manipal University of health, medical and technological sciences. Mr. Rajesh L. Kamble has work under my supervision and guidance and that no part of this report has been submitted for the award of any title or prize and that the work has not been publish in any journal or magazine
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Reg no.520951125

Certified Guide name

Acknowledgement I cannot adequately express my sense of gratitude to my guide for his constant guidance encouragement and support throughout the project and giving me his valuable time. Also I would like to thank my classmate, my colleagues in office who are working in related industry and have provided me valuable information and help to complete the study.

Rajesh L. kamble
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Formulation of Marketing Strategies to Improve Market Share of LG Microwave Ovens.

Evolution..Trend...and Future..In India In partial fulfillment for the requirement for masters in business administration in marketing 2010-2011

Reg no.-520951125 MBA Sikkim Manipal University.

TABLE OF CONTENT
Sr.n o 01 02 03 04 05 06 07 08 Content EXECUTIVE SUMMARY SCOPE OF PROJECT INTRODUCTION HISTORY OF COMPANY LG GROUP LG BRAND IDENTITY CODE OF CONDUCT LG : CHALLENGES IN INDIA

Page.n o.

09 10 11 12 13 14 15 16 17 18 19

RESEARCH AND DEVELOPMENT STRATEGIES ADOPTED CUSTOMER SERVICE OBJECTIVE OF RESEARCH RESEARCH METHODOLOGY DATA COLLECTION SAMPLING METHDOOLOGY DATA ANALYSIS CUSTOMER SERVEY FINDINGS RECOMMENDATION AND SUGGESTION BIBILOGRAPHY

Executive summary
Indian Consumer durables market used to be dominated by few domestic players like godrej Voltas allwyn and kalvinater. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The Microwave oven 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.

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Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs 500 crore in India this year in research and development, brand-building and other marketing initiatives. The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas, LGs innovative 211 campaign to provide quality after-sales service, will also be expanded from 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 two hours. The fixing time for complaints varies from one hour to a maximum of 24 hours.

Scope of project
This project gives me great exposure to the consumer durable market because it includes product knowledge and the filed job in which I have visited the store comes under the region of Mumbai. During this project I also took part in the exhibition of LG which held for the purpose branding and awareness of LG product. This project helps me to know the market practically. My job was during this project to see the market share and also the display share of the LG product (Microwave oven) in the store. LG always insist the 50% display share of LG product (Microwave oven) because LG believes that JO DIKHTA HAI WO BIKTA HAI. Key findings:11

1. By calculating the display share we found that in most of store LG has 50% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale.
3.

It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG.

4.

We also came to know while visiting the shops that there was big problem of after sale service.

5.

Many dealers were facing the problem of after sale service because there is no follow up calls from LG.

6. Demo calls also not done properly.

INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to 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,
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the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables 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%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of 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, cameras, camcorders, portable audio, Hi-Fi, etc

2.

White goods include dishwashers, air conditioners, heaters, machines, refrigerators, vacuum cleaners, kitchen

washing

appliances, non-kitchen appliances, microwaves oven, built-in appliances, Tumble dryer, personal care product etc.
3.

Molded luggage include plastics

4. Clocks and watches 5. Mobile phones

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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. Indian consumer durable market is expected to reach $400 billion by on 2010 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.

2.

3.

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 of 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 of consumers.

5. Easy availability of finance. Threats

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Higher import duties on row materials. Cheap imports from Singapore, China and from other Asian countries.

Brands in consumer electronics sector

MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS PANASONIC HITACHI SANSUI WHIRLPOOL ELECTROLUX NATIONAL REGIONAL ) ) ) ) ) ) ) ) ) ) KOREA CHINA HOLLAND SAMSUNG VIDEOCON GODREJ VOLTAS SOLO VJ-SERIES GMC-30E WESTON HD 4495 ONE TOUCH SENSOR JAPAN MW8554W GR3345W

TODAY Consumer durables 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%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories.

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The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas, 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 2. LG India 3. LG Mumbai

History of company The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a acronym. Before the corporate Name change
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to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. 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. 6.

LG. Philips LG Chemical LG Telecom LG Powercom LG Twins LG Dacom

Business areas and main products

Mobile communications (a) (b) (c) (d) CDMA Handsets, GSM Handsets, 3G Handsets, Cellular Phones

Digital appliance
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a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners,

f) Home Net,
g)

Compressors for Air Conditioners and Refrigerators

Digital display
a) b)

Plasma TVs, LCD TVs, Micro Display Panel TVs, Monitors, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors

c) d) e) f) g)
h)

Digital media
a) Home Theater Systems, b) DVD Recorders,

c) Super Multi DVD Rewriters, d) CDRW, e) Notebook PCs, f) Desktop PCs, g) PDAs,
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h) PDA Phones,
i) MP3 Players,

j) New Karaoke Systems, k) Car Infotainment

LG BRAND IDENTITY:The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with intelligent features, institutive functionality and exceptional performance. The brand platform:The LG brand is composed of four basic elements 1. 2. 3. 4. Value Promise Benefits Personality

The Brands core Value that never changes. a. b. c. d. Trust, Innovation, People Passion

The benefits that are consistently delivered to the customer includes

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Reliable products Simple design Ease of use Extraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly

The Internal Culture of LG: LG practices four 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 of continuous learning. Boundary less Environment means that there is no difference between the levels of employees. There is transparency between the work and mutual understanding between all the employees. A carrier is highly growing in LG and one who is the employee can develop their carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality.
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Growth in LG is very high for those who are in the company and for those who want to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth.

Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. Product Leadership We are focusing 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 of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.

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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 LGs unique application to ethics. LG will succeed through fair 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 for customer

Code of conduct of LG:

1. Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value

2 Fair competition Pursuit of Free Competition Compliance with Laws and Regulations
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Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners
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4 Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest 5 Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity

6 Responsibilities to society and country Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation

LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India.

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This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens. ''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes 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 shoppes and 38 are exclusive stores. Brand shoppes 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 of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings. LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new image. To attract inspirational and young consumers across India, company will roll out a new marketing strategy. The exercise will cost the company Rs 360 crore. LG Electronics India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today. LG Electronics is continually providing, superior technology products & value for money to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this year. LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea. We at LGSI focus on niche technology areas such as mobile application development, digital video broadcast and biometrics software and support LG
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Electronics with our expertise. Motivated by a passion for technology, a strong work culture and loyalty to the organization, we are determined to see LG become one of the top three brands globally. Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 4.8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products. LG Electronics, which is originally a South Korean Company with branch in India, informed that its sales of GSM mobile phones, color televisions, air conditioners and other household goods in the Indian market was to the tune of 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 of LG Electronics global revenues of $42 billion. The Indian branch of 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 of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).
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3. High import duty

4.

Competition from local market players and other MNCs in consumer durable segment.

5. Price sensitiveness of 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 first brand to enter in cricket in big way a way, by sponsoring the 1999 world cup followed it up in 2003 as well.
3.

LG brought in four captains of the Indian cricket team to endorse its products. LG invested more than US$ 8 million on advertising and marketing in this sport. LG has differentiated its product using technology and health benefits. CTV has Golden eye technology Air conditioner has Health air system and microwave ovens have the Health wave system.

4.

Local and efficient manufacturing to reduce the cost To overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and Pune. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce cost. LGEI implementing the Digital manufacturing system (DMS) as the cost cutting innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier.

R&D potential
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LG has the research and development facilities in Bangalore and Mumbai. Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product. 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 of the stock and better penetration into B, C, D, class market.

2. LG also follows 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 TVs.

Hindi and regional language menus on its

3.

Introduced the low-priced Cineplus and sampooma for the rural market. to introduce gaming in TVs in

4. LG was the first brand game in CTVs

continuations of its association with cricket LG introduce cricket

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MAJOR KEY SUCCESS FACTORS 1. Innovative marketing - LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup and followed it up in 2003 as well. 2. Local and efficient manufacturing to reduce cost - To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. 3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for 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 of stocks and better penetration into the B, C and D class markets. 6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG.

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Strategies adopted by the organization

LG follows 10 commandments which are as follows. 1. Foster working environment-5S Environment 2. Fast execution is key to success 3. Transparent and fast 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% Office). 9. Plan and Execute annual marketing Calendar-Time to market 10. Display share of 50% -to get 50% consumer share.

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LG market share of LG Microwave ovens in its consumer segments:-

LG position of Microwave oven in various states in India

This analysis is based on the ORG survey conducted by LG which represent the LG position of different consumer durables in various
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states in India. I select different brand in different category as per the market share and the demand of product in market. This analysis represents the LG market position during the period of March 2008. It shows that LG has captured maximum market share almost in every category. LG and Samsung have the maximum market in Microwave oven 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 of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 4.8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products. LG Electronics, informed that its sales of Microwave oven and other household goods in the Indian market was to the tune of 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 of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007.
.The

key strategies being implemented include increasing the number

of its regional offices from six to eight. LG has split its southern regional office into two, one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. In
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addition, it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. The other four regional offices take care of East, Gujarat and Madhya Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan respectively. In the coming year, LG is also repositioning its marketing spends, resulting in a significant increase in its mass media expenditure for better brand visibility. LG had a marketing budget of Rs 320 crore in 2007 with a 60:40 split in favor of below-the-line activities. Next year, the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 10-15%. Distribution and Marketing The company has number of dealers and warehouses. They have LG exclusive shopee. For the marketing of the products a number of activities are followed 1. 2. 3. 4. 5.
6.

Exhibitions are conducted from time to time. Society and college activities are conducted. Hoarding, Posters, banners are used so as to grab the Day to day advertisement in leading newspaper. Discount at festival time. For dealer relationship they arrange dealer meeting at LG divide dealer in gold silver etc. category to know the They have their sales persons at various sub dealer store

attention of the costumers.

several time in the year 7. 8. performance of the dealers. and at mordent trade store for particularly for the promotion of the LG product.
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9.

LG also uses the radio FM for the promotion activities.

10. Also provide capon and scratch card for festive season.

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 customers 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. Customers support following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider,
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after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken. LG also had a big problem of after sale service in India. During my project I also came to know that after sale service becomes the big issue in Mumbai region. Customers as well as dealer were facing the problem of after sale service. Because of this problem many dealer in Mumbai region were not ready to sale LG product. So it becomes the big issue. But LG has taken some solid steps towards improving customers perception and experience of after sales service. Because it very important in competitive market to provide the best service. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. The company aims to recruit 10,000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. Y V Verma, director HR and management system, LG Electronics said, "The Company was trying to find a solution for effective after sales service since last two years. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the GSM mobiles and the personal computer segments."
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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 of signing with Uttar Pradesh.
2.

LG Microwave oven, with 1200 service centers, has already recruited 300 students and plans to beef up the number to 10,000 by the year-end.

3. "The company has offered a scholarship to the selected students for the last six months of their training programme,"
4.

The company will invest Rs 8 crore (Rs 80 million) in employee development programme this year with an aim to attain an 8 per cent attrition rate.

5.

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 Microwave oven.

6.

At the top, the Service Division in Korea reports to the Global CMO. (As mentioned in Dermots public interview in ET on Wednesday). This shows commitment that Service must be made into a marketing differentiator, and leveraged thus.

7. LG has the widest service network across the country; some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. While the sale size may also be a nice multiple from nearest, it shows the company is ready to put our money where our mouth is.

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8. The company has introduced a 211 service - once you register your complaint, we will call you back in 2 hours (hence 2), set up an appointment for the next convenient day for you (hence the first 1), and show up in the promised 1-hour slot (hence the second 1). If the next convenient day for you is the next day, thats great too. Its a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities, and thus not leveraging any mileage from it. 9. The company is promoting 211 through ATL, probably the first time after-sales service is being communicated in this fashion by any product company. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of which revolve around prompt response.
10. The

first LG-owned service centre opened in Gurgaon. (Service in

India generally works through authorized service centers, in LGs case they work exclusively for 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 of filed survey during the project was to find out the market share of the LG Microwave oven and also calculate the display share.

Find out the positional dealer who can sale the LG Microwave oven in large volume.

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The main objective of research was to identify potential dealer and development these dealer. direct dealer. So LG can make them their

This will ease the dependence on the some big dealer like Maharashtra and Mahaveer electronics.

Find out the problem faced by the 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 increases the knowledge consumer durable product of LG.

To enhances the knowledge about the marketing and branding activity.

Research Methodology:
Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to
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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 context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Types of research are:

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 Descriptive Research The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. 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 approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut , there are
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some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. Data collection methods: After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data.

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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.

Data analysis and interpretation 1. Questionnaires 2. Pie chart and Bar chart Questionnaires: This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart: This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data. 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
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a common base line and are equal widths. The lengths of the bards are proportional to the value they represent. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

Sampling Methodology: Details of the sampling methodology, I have made The one is made for the Customer. 06 03 200 50 questionnaire.

No. of questions in questionnaires for customer: No. of question related to LG product: No. of people met during the research: No. of respondents during the research: Sample unit Professionals, Business man, Employees, House wife, Working women, Students

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Analysis:
Q1. Have you purchased any consumer durable during Exhibitions? Yes No

Inferences
1.

65 % of Customer has not purchased any consumer durable from exhibitions.

2. 3.

Only 35 % people have purchased. It shows that consumers are coming in the exhibition for knowledge of product and also they want to know that weather there is actual price difference in exhibition and shop or not.

4.

Consumer also wants to compare to the different brand which are available in the exhibition.
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5. So exhibitions are more useful to increases brand awareness. 6. People are less interested to purchase product from the exhibition.

Q.2While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability

Inference
1.

30% of customer gives importance to price. So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand.

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2.

26% give importance to brand. So price and Brand matter a lots for the costumers. And they are also want best brand in best price.

3.

19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability.

Q3. From where you prefer buying consumer durables

Exhibitions Co. shoppe

Showroom

Inference:
1.

A majority of customers prefer to buy from showrooms. Very less proposition of customers buys from Exhibitions.
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2.

47% customers are prefer to buy from 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 from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product.

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons Attractive Price Service Demonstrations Offers

Inference
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1.

Customers buy from showrooms because of the service and convenience. These are two main factors.

2.

Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after 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 factor that attract the customer in these showrooms.

Q.6. How frequently you change your consumer durables? 1-3 years 3-5 years 5-10 years More than 10 years

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INFERENCE
1.

Customers prefer to change consumer durables 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. 3. It represent that Indian consumer do not prefer to change their consumer durable frequently.

CUSTOMER SURVEY FINDINGS 1. Secondary supports play an important role in the customers mind and create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors.
2.

From the survey it was found out that the majority of customers dont buy LG Microwave oven from exhibitions. They just visit the exhibitions to see the co. latest model.

3. They want to buy from the showrooms or from co. showrooms. For them service is important .Beside convenience and other factors service is key factor.
4.

Also majority of customers do not want any financing scheme for purchasing the LG Microwave oven.
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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 customer of their brand.
7.

In survey we found that LG Microwave oven has captured maximum market share in every category. LG Microwave oven dominates CTV, LCD, and Refrigerator, and Washing machine, category.

8.

LG and Samsung have bottle neck competition in Microwave oven 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 customer of 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 for the new products. Like in this exhibition new LG (LG LRM2060) was advertised. Company should always focus 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.
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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. 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.

LIMITATIONS 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, for which a full-fledged report was insufficient for me.
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4. The customer 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 to fill up the questionnaire, but generally, an average middle class family was required for the study.
6.

The sample size is also very small which represent my research on consumer behavior.

My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage.

BIBLIOGRAPHY www.lgindia.com www.google.com www.wikipedia.com Business world Business today LG magazine Economics times News paper
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 Times of India

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