SWAMI VIVEKANAND

INSTITUTE OF TECHNOLOGY

PROJECT REPORT
ON
MARKETING STRATEGIES OF TOP FIVE
BRANDS OF MICROWAVE
Submitted in partial fulfilment for the Award of
degree of
Master in Management Studies

UNDER THE GUIDANCE OF

SUBMITTED BY

CERTIFICATE
Certified that the dissertation title MARKETING STRATEGIES OF TOP
BRANDS OF MICROWAVE is a bonafide work done Mr. ..
under my guidance in partial fulfilment of Master in Management
Studies programme . The views expressed in this dissertation is only of
that of the researcher and the need not be those of this institute. This
project work has been corrected by me.

PROJECT GUIDE
MS. AMRITA RAWAT

DATE::
PLACE:

STUDENT DECLARATION

I hereby declare that this project report titled A STUDY Of

MAEKETING STRATEGIES OF TOP BRANDS OF MICROWAVE

is

executed as per the course requirement for the post graduate program
in management. I have not been submitted by me or any other person
to any other university or institution for degree or diploma. Its my own
work.

Place:
Date:
NAME HERE.
MBA

ACKNOWLEDGEMENT

In this project I have made an honest and dedicated attempt to make

the research material as authentic as it could. And I earnestly hope
that it provides useful and workable information and knowledge to any
person reading it.
During this small time frame in which the project reached its
completion, there were a few people whom I would like to make a
mention of and without whose help the project would have never seen
the light of the day.
I also thank to my (HOD) PARMESH GOUTAM and internal
guide ms amrita rawat for his timely response via e-mail, which
immensely helped in giving the project the initial direction it needed.
I dedicate this project to the Dealers who were extremely
kind and who at times went out of the way to help me. Without their
co-operation it would have perhaps not been possible to research a few
places, which I did, within the stipulated time frame.

NAME HERE
MBA

PREFACE
It was a firsthand experience to get exposed to the professional set-up
and face the market, which was really a great experience. Training
period was a learning experience.
When business is involved, an experience counts a lot. experience are
an instrument, which leads towards success.
I take this opportunity to present the project report and sincerely hope
that it will be as much knowledge enhancing to the readers as it was to
use during the fieldwork and the compilation of the report.

CONTENT

PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
DECRATION

1. INTRODUCTION
About Product
In Insight of Company History
Mission & Vision
Objectives
Standing Position of Company
Brand Value
2.
3.
4.
5.
6.
7.

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY
MARKET ANALYSIS
CONSUMER GROUPS
PRODUCT PROFILE
MARKETING STRATEGY
Pricing
Positioning & Distribution
Promotion
8. ABOUT COMPETITOR
Competitor Product
Price up Competitor Profile
9. DATA ANALYSIS & ENTERPRETATION
10. LIMATATION
11. SUGGESTION
12. BIBLOGRAPHY
13. CONCLUSION

INTRODUCTION

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, Alwyn, 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 were 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 MICROWAVEs (C-TV) were no
longer considered luxury items. However, there were 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.

Indian Consumer durables market used to be dominated by few

domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post
liberalization many foreign companies have entered into Indian market
dethroning the Indian players and dominating Indian market the major
categories being CTV, REFRIGRATOR, MICROWAVE OVEN 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 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 faster than the urban market, although
the penetration level is much lower .The CTV segment is expected to
the largest contributing segment to the overall growth of the industry.
The rising income levels double-income families and consumer
awareness were the main growth drivers of the industries.

INDUSTRY PROFILE
The Consumer Durables industry consists of durable goods and
appliances for domestic use such as MICROWAVEs, refrigerators, air
conditioners and washing machines. Instruments such as cell phones
and kitchen appliances like microwave ovens were also included in this
category. The sector has been witnessing significant growth in recent
years, helped by several drivers such as the emerging retail boom, real
estate and housing demand, greater disposable income and an overall
increase in the level of affluence of a significant section of the
population. The industry is represented by major international and
local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics,
Titan, Whirlpool, etc.
The consumer durables industry can be broadly classified into two
segments: Consumer Electronics and Consumer Appliances. Consumer
Appliances can be further categorized into Brown Goods and White
Goods. The key product lines under each segment were as follows.

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around
US$ 5 billion in 2007-08. More than 7 million units of consumer durable
appliances

have

been

sold

in

the

year

2006-07

with

colour

MICROWAVEs (CTV) forming the bulk of the sales with 30 per cent
share of volumes. CTV, refrigerators and Air-conditioners together
constitute more than 60 per cent of the sales in terms of the number of
units sold.
In the refrigerators market, the frost-free category has grown by 8.3
per cent while direct cool segment has grown by 9 per cent.
Companies like LG, Whirlpool and Samsung have registered doubledigit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic category with a
higher base and fully-automatic categories have grown by 4 per cent
to 526,000 units and by 8 per cent to 229,000 units, respectively. In
the air-conditioners segment, the sales of window ACs have grown by
32 per cent and that of split ACs by 97 per cent.
Since the penetration in the urban areas for these products is already
quite high, the markets for both C-TV and refrigerators were shifting to
the semi-urban and rural areas. The growth across product categories
in different segments is assessed in the following sections.

Consumer Electronics
The CTV production was 15.10 million units in 2007-08 and is expected
to grow by at least 25 per cent. At the disaggregated level,
conventional CTV volumes have been falling while flat TVs have grown
strongly. Market sources indicate that most CTV majors have phased
out conventional TVs and have been instead focusing more on flat TVs.
The flat segment of CTVs now account for over60 per cent of the total
domestic TV production and is likely to be around 65 per cent in 200708.High-end products such as liquid crystal display (LCD)and plasma
display CTV grew by 400 per cent and 150 per
Cent respectively in 200910 following a sharp decline in prices of
these products and this trend is expected to continue. The audio/video
player market has seen significant growth rates in the domestic market
as prices have dropped. This trend is expected to continue through
2009- 2010, as competition is likely to intensify to scale and capture
the mass market.

COMPANY PROFILE
SAMSUNG Introduction

Our Vision
Samsung is guided by a singular vision: to lead the digital convergence
movement.
We believe that through technology innovation today, we will find the
solutions we need to address the challenges of tomorrow. From
technology comes opportunity for businesses to grow, for citizens in
emerging markets to prosper by tapping into the digital economy, and
for people to invent new possibilities.
Its our aim to develop innovative technologies and efficient processes
that create new markets, enrich peoples lives and continue to make
Samsung a trusted market leader

Our Mission
Everything we do at Samsung is guided by our mission: to be the best
digital-Company.

Samsung grew into a global corporation by facing challenges directly.

In the years ahead, our dedicated people will continue to embrace
many challenges and come up with creative ideas to develop products
and services that lead in their markets. Their ingenuity will continue to
chart Samsungs course as a profitable, responsible global corporation.

GROWING TO BE THE BEST

Samsung India aims to be the Best Company in India by the Year
2006. Best Company in terms of both the internal workplace
environment as well as the external context in which the Company
operates. Samsung aims to grow in India by contributing to the Indian
economy and making the lives of its consumers simpler, easier and
richer through its superior quality products.
Our aim is to gain technological leadership in the Indian marketplace
even as our goal is to earn the love and respect of more and more of

our Indian consumers. Mr. S.H. Oh, President & CEO Samsung SouthWest Asia Regional Headquarters.

STRATEGY IN INDIA
Samsung India is the hub for Samsungs South West Asia Regional
operations. The South West Asia Regional Headquarters looks after the
Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and
Bhutan besides India. Samsung India, which commenced its operations
in India in December 1995, today enjoys a sales turnover of over US$
1Bn in just a decade of operations in the country.
Headquartered in New Delhi, Samsung India has a network of 19
Branch

Offices

located

all

over

the

country.

The

Samsung

manufacturing complex housing manufacturing facilities for Colour

MICROWAVEs, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi.
Samsung Made in India products like Colour MICROWAVEs, Colour
Monitors and Refrigerators were being exported to Middle East, CIS and
SAARC countries from its Noida manufacturing complex. Samsung India
currently employs over 1600 employees, with around 18% of its
employees working in Research & Development.

The DNA of Digital Innovation

Samsung

Electronics

telecommunications,

is

global

leader

digital

media

and

in

semiconductors,

digital

convergence

technologies with 2004 parent company sales of US$55.2Bn and net

income of US$10.3Bn. Employing approx. 113,000 people in over 90
offices in 48 countries, the company has of 5 main business units:
Digital Appliance Business, Digital Media Business, LCD Business,
Semiconductor Business and Telecommunication Network Business.
Recognized as one of the fastest growing global brands, Samsung
Electronics Corporation is the worlds largest pro ducer of Colour
Monitors, Colour TVs, Memory Chips and TFT LCDs.

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its
products according to the Indian market. It has set up a usability lab
at the Indian Institute of Technology in New Delhi to customize
Samsung products to meet the specific needs of Indian consumers.
This industry-institute partnership is helping Samsung to study and
analyze consumer response in aspects of product design, including
aesthetics, ergonomics and interface.
Through its research done on consumer preferences in India,
Samsung has concluded that Indian consumers want more sound

oriented products. Thus, the Samsung MICROWAVEs for India have a

higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines,
Samsung has introduced for the first time in India a feature called
Super Dry. It is present in three of Samsungs semi automatic models
and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes
care of the local Indian wardrobes. They also have a memory re-start
that takes care of the frequent power failures in India.

PRODUCT PROFILE

650 Series Full HD LC D TV

Developed using our unique Crystal Design with a hint of
rose-red color accentuating a traditional piano-black
bezel frame, the 650 Series LCD TV features Auto Motion
Plus 120Hz, an Ultra Clear Panel, DNIe Pro and Wide

Color Enhancer Pro to provide perfect picture quality.

Wide Video MP3 Player (YP-P2)

Equipped with Bluetooth and a touch screen interface,
the YP-P2 lets consumers enjoy vivid videos on a 3-inch
wide LCD screen. Samsungs proprietary DNSe 2.0
technology with EmoTure UI enhances the ultimate multimedia
experience.

VRT Front Loading Washer

Designed with Vibration Reduction TechnologyTM (VRT),
our washer dramatically reduces barrel vibrationeven
at the highest speed. It also reduces energy and water
consumption to the worlds lowest levels. Further, weve
enhanced washing performance and eco-friendly performance
with a diamond-shaped embossing drum.

6-in-1 Steam Oven

Simple, yet stylish, our 6-in-1 steam oven combines all of
the features of a conventional oven with advanced steam
cooking technology to stimulate healthier eating.
Samsungs versatile steam cooking solution adds a
steam function to the conventional oven, grill and microwave,
as well as dry heat and fermenting.

Haptic Touch Screen Phones (SC H-W420/W4200)

Built with TouchWiz UI software, our Haptic model promises
a unique user experience, one that touches all of the
senses. The Samsung Haptic features one-touch access,
a widget for creating customized desktops and a G sensor
for automatic horizontal rotation of photos and videos.

It is designed for the innovative, on-the-go user who

demands cutting-edge multimedia features, including a web browser.

Ultra-messaging BlackJack II (SG H-i617)

Microsofts Windows Mobile software-enabled HSDPA
smart phone boasts a bigger screen than the BlackJack

ROYAL PHILIPS ELECTRONICS

Royal Philips Electronics of the Netherlands is a diversified Health and

Well-being company, focused on improving peoples lives through
timely innovations. As a world leader in healthcare, lifestyle and
lighting, Philips integrates technologies and design into people-centric
solutions, based on fundamental customer insights and the brand
promise of sense and simplicity.
Headquartered in the Netherlands, Philips employs approximately
116,000 employees in more than 60 countries worldwide. With sales of
EUR 23 billion in 2009, the company is a market leader in cardiac care,
acute care and home healthcare, energy efficient lighting solutions
and new lighting applications, as well as lifestyle products for personal
well-being and pleasure with strong leadership positions in flat TV,

male

shaving

and

grooming,

portable

entertainment

and

oral

healthcare.

Global Footprint Philips is a global leader across its healthcare,

lighting and lifestyle portfolio:

We are the worlds largest home healthcare company, being

number

one

in:

Monitoring

systems,

Automated

External

Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray.

We are number one in lamps in Europe, Latin America and Asia

Pacific and number two in North America; in Automotive lighting,
we are leading in Europe, Latin America, Japan and Asia Pacific.

We are number one in the electric shavers and male grooming

category globally.

Philips is one of the leading flat-TV brands globally.

Mission
"Improve the quality of peoples lives through timely introduction of
meaningful innovations."

Vision
In a world where complexity increasingly touches every aspect of our
daily lives, we will lead in bringing sense and simplicity to people.

Values
Our Values reflect the ambitions we have laid down in Vision 2010,
our recent strategy update. The Values, the four Ds, are like a
compass guiding us in how we behave every day, and reminding us
of the attitudes we should have towards our work, our customers and

our colleagues.
Delight Customers
We anticipate and exceed customer expectations

We demonstrate Passion for Philips and "sense and simplicity"

We create superior customer experiences, based on deep

insights

We act as One Philips ambassadors all the time

Deliver great results

We continually raise the bar

We play to win big and

always set ambitious targets

We challenge the status quo

and experiment with new
ways

We take clear decisions and

implement with speed and
discipline

Develop people
We get the best from ourselves and each other

We attract the best players to create strong and diverse teams

We take risks by giving people stretch assignments to accelerate

their development

We personally invest significant time to coach and recognize

people.

Depend on each other

We deliver more value by working as One Philips

We think as One Philips and act as owners

We trust and empower each other to contribute our best

We team up and allocate resources to the most promising

opportunities.

Philips Electronics India Limited

Philips Electronics India Limited, a subsidiary of the
Netherlands-based Royal Philips Electronics, is the leading Health and
Wellbeing company. Today, Philips is a simpler and more focused
company

with

global

leadership

positions

in

key

markets

of

Healthcare, Lighting and Consumer Lifestyle, addressing peoples

Health and wellbeing needs and aspirations as its overarching theme.

As one of the nation's most well-known and well-loved

brands, Philips is a part of practically every Indian's life. With recent
launch of Philips Respironics product categories in obstructive sleep
apnea management and home respiratory care, home decorative
lighting range and ALU range, Philips products find use in virtually
every aspect of an individuals daily life 24X7 - at home, at work, on
the move and at rest. Philips stands as a source of easy to use, trendy
and innovative internationally acclaimed products with superior design
and technology that enhance the quality of consumers' professional
and personal lives.

Philips has been operating in India for over 75 years and

employs over 4,500 employees around the country. The company has
an excellent pan India distribution and after-sales service network.

EVOLUTION OF PHILIPS AS A BRAND

Wherever encountered, the Philips brand is a familiar sight in millions

of households and buildings throughout the world with its instantly
recognizable word mark of seven blue capitalized letters. Although the
company has evolved and grown over more than hundred years,
Philips visual brand identity is rooted in its early years at the
beginning of the 20th century.

Philips Identity Trademarked: Origins of the Shield

Emblem

The now familiar Philips waves and

stars first appeared in 1926 on the packaging
of miniwatt radio valves, as well as on the
Philigraph, an early sound recording device.
The waves symbolized radio waves, while the
stars represented the ether of the evening sky through which the
radio waves would travel.
In 1930 it was the first time that the four stars flanking
the three waves were placed together in a circle. After that, the stars
and waves started appearing on radios and gramophones, featuring
this circle as part of their design. Gradually the use of the circle
emblem was then extended to advertising materials and other
products.
At this time Philips business activities were expanding
rapidly and the company wanted to find a trademark that would
uniquely represent Philips, but one that would also avoid legal
problems with the owners of other well-known circular emblems. This
wish resulted in the combination of the Philips circle and the word
mark within the shield emblem.
In 1938, the Philips shield made its first appearance.
Although modified over the years, the basic design has remained
constant ever since and, together with the word mark, gives Philips
the distinctive identity that is still embraced today.

Advertising Philips Brand Today

Whilst the logo of the company has
been consistent since the1930s the way in
which

Philips

communicated

has
to

the

advertised
outside

world

and
has

varied. In general, until the mid-1990s all

advertising and marketing campaigns were
carried out at product level on a local market
basis. This led to many different campaigns running simultaneously,
not giving a global representation of Philips as a global company.
To establish consistent global presence, in 1995 Philips
introduced the first global campaign in 1995 under the tagline Lets
make things better. This theme encapsulated the One Philips
thinking and was rolled out globally in all markets and on all Philips
products. This was also the first campaign that bought the whole
company together, giving the employees a sense of belonging and
providing a unified company look for an external audience.
In September 2004, Philips launched its sense and simplicity
brand promise, which marked a new way forward for the company.
Sense and simplicity reflects Philips commitment to be a marketdriven company that provides products and services that fulfill the
promise of being designed around you, easy to experience and
advanced.
In 2008, the total estimated value of Philips brand increased
by 8% to USD 8.3 billion and was ranked the 43rd most valuable
brand in Inter brands 2008 ranking of best global brands.

PHILIPS STRATEGY IN INDIA

Philips India, is in a bid to aggressively push its sales in the
rural/semi-urban segment and has designed an innovative strategy
for these regions. Called the `Philips Mahasangram Integrated
Marketing Programmes', the rural initiative will be taken across the
country from July 2, focusing on rural towns with a population of less
than 5,000 and semi-urban towns with a population between 5,000
and 50,000. , The Philips Mahasangram is aimed at taking Philips' new
products to the semi-urban and rural customers and increasing their
awareness where product knowledge, information and availability are
concerned. An indication of the size of this initiative can be obtained
from the fact that Philips will be spending about 4.5 per cent of its
turnover from the rural/semi-urban areas on the Mahasangram alone.
Meanwhile, the key reason behind this initiative lies in the

growing potential of the rural market. According to industry data,

while in 1997-98, rural sales formed about 25 per cent of the total
sales for CTVs, refrigerators and washing machines, it increased to 36
per cent in 2001-2002 and is expected to go up to as high as 41 per
cent in 2006-07. Apart from initiating new marketing and distribution
programmes, Philips will also be launching a range of new products
during the rural initiative. Meanwhile, Philips plans to implement an
innovative FMCG style marketing strategy to push its durables in the
rural segment. The Mahasangram Integrated Marketing Programme is
essentially about implementing a non-durables strategy marketing in
a consumer durable segment. The management is planning effective
use of a number of media vehicles to ensure efficient communication
of the message and maximum utilization of the money spent. The
advertising and marketing strategy will be a combination of abovethe-line and below-the-line/ on-ground activities.
Various promotional activities which Philips plans to initiate
during the Mahasangram include a series of on-ground activities such
as point of sale material at retailers' counters, road-shows, mobile
vans with Philips products on display and games, innovative tactics
like advertising on an inland letter form or postcard (a popular form of
communication in rural areas) and sponsorship of local events, among
other things.
On the distribution front, Philips claims to have the biggest
distribution network (as compared to other consumer electronics
companies) and a high degree of penetration even in the rural and
semi-urban areas. The company has carried out an extensive productwise mapping exercise over 540 districts across India. Keeping in mind
the objective of extensive physical reach of 80 per cent plus, where
portable audio is concerned, the company has developed a second

line of activity in the distribution set-up. Also, in order to cater to

volume drivers i.e., major retailers, company has identified the main
retailers

of

each

distributor

and

practice

the

Key

Account

Management Approach with them, so that there is a focus on

improving relations, trade with these retailers, and catering to their
needs. These steps have helped in developing their volume reach,
geographical reach and counter share significantly.
Philips is hoping that its innovative rural marketing initiative coupled
with the high growth in the rural market will boost its market share.
How Philips India doubled its sales
The company launched an aggressive new advertising
campaign in print, MICROWAVE and online. The new tagline "Sense
and

simplicity"

showcases

the

new

brand

promises

--

using

technology to make life simpler and easier. Company sources say

Philips is counting on the new campaign to help it grow by at least 25
per cent this year.
That's in the future, but how did Philips almost double its market
share in under four years? Interestingly, the company didn't adopt
radically different strategies.
It paid attention to what customers wanted; passed on cost benefits;
and brushed up its admittedly fuddy-duddy image. According to Mr. D
Shivkumar, executive director, consumer electronics, Philips, "We
have managed to grow the business by focusing on the price -- quality
equation."
The battle of perception
Philips has been a household name in India for 75 years, but
consumers associated the brand more with tube lights and transistors
than cutting-edge technology.

That's ironic, considering the company has made its mark globally as
a technology leader -- it invented the cassette recorder, the compact
disc and the DVD; the last in association with Sony.
But a survey by advertising agency JWT, which held the
Philips account from 2001 (it has recently moved to Mudra), revealed
that Philips technology was seen as reliable but not state-of-the-art.
Clearly, Philips needed an image makeover. It began by
taking the technology route. Post-2001, advertising campaigns
emphasised the company's technologically-advanced features.
Philips was the first audio company to launch an MP3 player
(May 2002), and it made sure its communication played that up:
"Don't buy a system if it doesn't have an MP3 player." Then there was
the October 2002 campaign, in which a little boy uses the power of
the music system to nudge the cookie jar off the top-most kitchen
shelf.
The company was constantly refining the image of the
company in the minds of the consumer, making it more modern. But
that wasn't enough. That's where in-store displays and promotions
that demonstrated the abilities of Philips products came in. In October
2003, JWT broke the "Ramu kaka" ad, where the manservant
inadvertently inserts a roti into the DVD player.
The tagline made the message clear: "The new Philips DVD
player plays anything". The campaign proved immensely popular - it
was used in other Asian countries as well -- and Philips wasn't slow in
leveraging its appeal. At live demos, customers would be invited to
slip rotis into the player, creating a buzz around the product and the
brand.

But that would probably appeal more to families and Philips

needed to reach out to the youth, its target customer base. So it went
to where the action was -colleges and rock festivals.
Philips set up stalls, complete with a professional DJ.
Youngsters were invited to man the console, while the DJ gave them
tips on mixing and spinning. And had huge walk-ins and could provide
an involvement and experience with the brand.
Clinch the dealer
Philips has successfully played the price card, but not all price
cuts have been due to better or cheaper technology. In some
segments like radios, it did away with trade discounts and passed on
the savings to the customer.
Two years ago, Philips' radios sold at Rs 600 -- a huge premium
compared to the Rs 200 or so that other brands cost. In mid-2003, the
company slashed the price to Rs 400 and even introduced new
models at the Rs 160 price point, especially targeting the non-urban
youth segment.
Not surprisingly, dealers were upset at their shrinking
margins. Some started stocking competing brands, only to return,
claim company officials, when they found volumes were increasing
exponentially.
They soon realized it was more profitable to sell Philips radios
because the turnover is much higher. To ensure the penetration and
distribution happens, Philips changed its distribution strategy around
two years ago. Distributors were now allocated smaller geographical
territories so they can concentrate on getting firmer footholds in their
areas.
Distributor in upcountry markets, who were earlier allotted five or six
districts are now given only two or three. And not all are given the

entire product range so that the focus is sharper.

Creating the value proposition
Philips realized early on that maintaining the price-quality
equation is critical. That's especially true of the minis (DVD and VCD
hi-fi systems) segment, which accounts for a quarter of the audio
market in value terms.
Even as Philips constantly raised the technology bar (MP3 players,
deeper bass, sleeker, more streamlined systems), it's kept its prices
competitive. The company prices its minis at Rs 8,000-25,000,
compared with the market range of Rs 7,500-30,000.
Moreover, prices have been falling by 10 per cent on average
every year. Of course, that's true for other brands as well but, Philips
"found the sweet spot at which youngsters could buy".
How did it do that? By ensuring that it was perceived neither
as a price warrior like Aiwa or Sansui nor prohibitively expensive -Sony products are on average 10 per cent more expensive.
Philips also brought in help from outside. In late 2002, it tied up with
Countrywide and Citibank to provide accessible finance schemes for
its products.
Compared to equal monthly installments of about Rs 1,000 earlier, the
new schemes let customers pick up state-of-the-art sound machines
for as little as Rs 333 a month - that too, without a down-payment.
Has that helped? Consider: Philips entered the minis segment
only in 2000, a year behind Sony. But it's now carved up the market
with Sony, with 45 per cent share each. The company also paid close
attention to customer feedback. It has ramped up the number of
service centres across the country to 190, from 125 two years ago.
Today, over 900 technicians now attend to complaints, up from 600 in
2002.

LG ELECTRONICS
VISION
Global Top 3 by 2010
Global Top 3 Electronic/Telecommunication
company

GROWTH STRATEGY
Fast innovation, Fast growth

CORE COMPETENCY
Product
leadership,
People leadership

Market

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 Life's Good signature consists of
the LG logo,
seal, and the slogan, "Life's Good" set in Charlotte
sans typeface
curved around the LG symbol. The curving of the
slogan reinforces LG's personality and uniqueness.
The consistent usage of this signature clearly
establishes the unique identity of the company and
unifies every division and product from LG
Electronics across the globe.

THE SYMBOL
The symbol of LG is the face of future. The letter L
and G in a circle symbolizes world, future, youth,
humanity & technology. LG philosophy is based on
humanity. It also represents LGs efforts to keep
close relationship with our customers around the
world.
The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique
LG red color.

Red color represents 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 Goaloriented, Focused & Confident.
The slogan of LG is Lifes Good. It expresses
Brands
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 for LG Electronics as it
strives to become one of the world's top companies.
Such a relationship is transformed into a valuecreation 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 fields
and making strategic alliances with world famous
companies.
"Strategic
association
between
corporations," in which companies with different
infrastructures cooperate in the fast-developing 21st
century business field, is of key significance in terms
of strengthening the existing industry and creating a
new one.
LG Electronics will do its best to create new
products and services with an open mind, while
developing new technologies and business fields
through various associations with some of the
world's most successful companies.
1. 3M

2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10.INTEL
11.NORTEL
12.HITACHI
13.PRADA
14.RENESAS
15.TOSHIBA
16.BESTBUY
And
the
number
follows
many
more..
In Feb. 2007 LG Electronics and Yahoo formed a
strategic alliance. Yahoo mobile services will be
available from LG mobile. This service is targeting
10 million LG mobile phones in over 70 countries.
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 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. Value
2. Promise
3. Benefits
4. Personality

The Brands
changes.
a. Trust,
b. Innovation,
c. People
d. Passion

core

Value

that

never

The benefits that are consistently delivered to the

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

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. This facility
manufactured
Color
MICROWAVEs,
Washing
Machines, Air-Conditioners 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 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 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 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 MICROWAVEs, 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).
3. High import duty
4. Compitition 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
electronic and home

in

consumer

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 then
US$ 8 million
on advertising and marketing in this sport.
4. LG has differentiated
technology and
health
benefits.
technology Air

CTV

its

product

has

Golden

using
eye

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 manufactures TV
refrigerator in India at manufacturing facility at
Noida and . 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
LG has the research and development facilities in
Bangalore and . 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
network
1. LG

channel

has

adopted

and

the

wide

regional

distribution

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 Hindi and regional language
menus on its TVs.
3. Introduced the low-priced Cineplus and
Sampooma for the rural market.
4. LG was the first brand to introduce gaming in TVs
in continuations of its association with cricket LG
introduce cricket game in CTVs

COMPANY PROFILE
Brief Profile
The Videocon group emerges as a USD 2.5 Billion global
conglomerate continuing to set trends in every sphere of its
activities from a conference room sized assembly line in
1979.
Today the group operates through 4 key sectors:
1. Consumer durable
2. Thomson CPT
3. CRT glass
4. Oil and gas
Consumer Electronics, Home Appliances &
Compressor manufacturing in India
We enjoy a pre-eminent position in terms of sales and
customer satisfaction in many of our consumer products like
Colour MICROWAVEs, Washing Machines, Air Conditioners,
Refrigerators, Microwave ovens and many other home
appliances, selling them through a Multi-Brand strategy with
the largest sales and service network in India. Our
compressor manufacturing technology in Bangalore further
supports refrigerator manufacturing.
Display industry and its components
With the Thomson acquisition Videocon has emerged as one
of the largest Colour Picture tube manufacturers in the world
operating in Mexico, Italy, Poland and China,continuing to
lead through new innovative technologies like slim CPT,
extra slim CPT and High Definition 16:9 format CPT.
Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in

the world with a high
level of experience and technical expertise operating
through Poland and India.
Videocon will leverage on this synergy after the Thomson
acquisition to internally
source glass for its CPT manufacturing increasing
efficiencies and lowering costs.

Vision & Mission

Videocons mission: a reflection of continuity and
change

Videocons mission expression has been crafted to

envelope both extant and emerging realities:
To delight and deliver beyond expectation through
ingenious strategy, intrepid entrepreneurship, improved
technology, innovative products, insightful marketing and
inspired thinking about the future.
A breakdown of the statement above reveals a means and
end approach, where the end is articulated at the beginning
with the means linked to it.
To delight and deliver beyond expectation: the
end
This segment not only underlines the importance of the
ultimate goal customer satisfaction (delight) and ultimate
target - the customer, but also of intermediate processes
and principals, which have contributed to building a robust,
dependable
Videocon value chain (deliver). As a result of its focus on
developing loyal
customers and reliable associates, Videocon is able to
exceed expectations.
Through ingenious strategy: the means
In the cutthroat world of today, it is only by taking recourse
to advance planning and strategy that a business can hope
to survive. Although textbook strategy has its uses,
reproducing it in verbatim for the real world would be foolish
because of the absence of textbook conditions. Thus, there is
a need for a bounded rationality, spontaneity and
improvisation that is flexible enough for scenarios both
imaginable and
unimaginable.
Videocons ingenious
manoeuvres are actually flexi-strategy that abstracts from
shifting ground conditions and decides game plans, or
sometimes changes the rules of the game.

STRATEGY IN INDIA
Intrepid entrepreneurship:
An enterprise with the odds stacked against it makes great
business sense. This is because higher the obstacles, lower
the number of players likely to be active in that field - thus,
fetching extraordinary returns. The only requirement is a
bold and confident attitude willing to brave the odds.
Videocons foray into oil and gas is a bold and intrepid
endeavour that arises from immense faith on the surefooted
competence of the companys in-house managerial talent.
Improved technology
Technology is no more a premium input; it has become the
bare minimum in recent years. Rapid advances have only
fuelled this phenomenon. Videocon is extremely vigilant in
shunting out dated technology and replacing it with the bestin-class offers of the times.
Innovative products
Product development, innovation and customisation are the
tools Videocon uses to stay ahead of the competition. This is
because a continuous stream of innovative products excites
the market and enhances brand recall. A strategy that
Videocon banks on a lot, especially on the domestic front

Insightful marketing
The market share battle scene has long shifted from
technology and processes to the psyche of the customer.
This means that those with deeper insights into the elusive
mind of the buyer are likely to dominate. Videocon is
reinforcing marketing strengths to read better the pulse of
the market and help create products that map perfectly into
customer preferences.
Inspired thinking about the future.
The future is unpredictable, but not doing anything about it
is fraught with grave risk. Videocon extrapolates future
trends on the basis of current changes in
technology and preferences as well as sheer gut feel

The Haier Group is Chinas largest home appliance brand and one of
the worlds leading white goods home appliance manufacturers. Haier
was founded in 1984 in Qingdao, Shandong Province, China and
manufactures home appliances in over 15,100 different specifications
under 96 categories. By April 2006, the Haier Group has obtained
6,189 patented technology certificates and 589 software intellectual
property rights. Haier products are sold in over 100 countries. Haier is
the official Home Appliances Sponsor of the Beijing 2008 Olympic
Games.
Headquarters: Qingdao, Shandong Province, China
Employees: Over 50,000 worldwide
Financial Information: Haiers global revenue in 2005 reached
RMB 103.4 billion
Average annual growth of 68% between 1984 and 2005
No. of Subsidiaries Over 240
Listed Subsidiaries: Haier Electronics Group Co., Ltd. listed on the
Hong Kong Stock Exchange
Qingdao Haier Co., Ltd. Listed on the Shanghai Stock Exchange
Business Scope: Technology research

o Product development and manufacturing Trade

o Financial services

Global Presence:

Trading Companies: 64
Design Centers: 8
Industrial Complexes: 15
Sales Network: Over 58,000

Board of Directors

Chairman and CEO: Mr. Zhang Ruimin

President: Ms. Yang Mianmian
Vice Chairman: Mr. Wu Kesong

Recognition:

Ranked 86th among the worlds 500 Most Influential Brands by

World Brand Lab in 2006. Only Chinese brand to be ranked in top
100 for three consecutive years

Ranked 1st among Chinese brands with the most potential by

Glebors Global Financial Reports of Canada, 2006

Ranked 1st among Chinas Top 10 Global Brands by the Financial

Times in 2005

Ranked 1st among Chinas Top 10 Global Brands by China State

Bureau

of

Quality

and

Technical

Supervision

refrigerators and washing machines in 2005

(CSBTS)

for

CEO Zhang Ruimin ranked 6th among Asias 25 Most Powerful

People in Business by Fortune magazine in 2004

The Haier Group was founded in 1984 with headquarters in Qingdao,

Shandong Province, PRC. In 1984, Haier produced only a single model
of refrigerator, today it is one of the worlds leading white goods home
appliance manufacturers. Under the leadership of Chairman and CEO
Zhang Ruimin, Haier manufactures home appliances in over 15,100
different specifications under 96 categories. Haier products are now
sold in over 100 countries around the globe.
Haier has over 240 subsidiary companies, over 110 design centers,
plants and trading companies and over 50,000 employees throughout
the world. Haiers focused industries include technology research,
manufacturing, trade and financial services.
The global revenue of Haier for 2005 was RMB 103.4 billion. Haier
Electronics Group Co., Ltd. (HKG: 1169), a subsidiary of Haier Group, is
listed on the Main Board of the Stock Exchange of Hong Kong. Qingdao
Haier Co., Ltd. (SHA: 600690), also a Haier subsidiary, is listed on the
Shanghai Stock Exchange. On 12 August, 2005, Haier signed an
agreement with Beijing Organizing Committee for the Olympic Games
(BOCOG) in Qingdao to become the official sponsor of the 2008 Beijing
Olympic Games for white goods home appliances.
Unmatched
categories

Home
range

Appliance
from

Product

refrigerators,

Offerings

Haiers

refrigerating

product

cabinets,

air

conditioners, washing machines, MICROWAVEs, mobile phones, home

theatre

systems,

computers,

water

heaters,

DVD

players

and

integrated furniture, among which 9 are ranked market leaders in

China, and 3 are ranked among the top 3 worldwide in their respective
industries. Haier is also a world leader in the technology domains of

intelligent integrated home furniture, networked home appliances,

digitalization and large scale integrated circuits.
By April 2006, the Haier Group has obtained 6,189 patented
technology certificates and 589 software intellectual property rights.
Haiers proposal for safe care water heater technology initiative was
accepted at the 66th IEC Conference in 2002 and Haier dual drive
washing machine technology was included in the 2006 IEC standard
proposal. This clearly demonstrates Haiers world-class innovation
capabilities in product R&D.

GLOBAL BRANDING STRATEGY

Haiers global branding strategy aims at positioning the company as a
local brand in different world markets in conjunction with enhanced
product competitiveness and strong corporate operations. Haiers
international business framework encompasses a global network of
design, procurement, production, distribution and after-sale services.
Today, Haier has established 15 industrial complexes, 30 overseas
production factories and bases, 8 design centers and over 58,000 sales
agents worldwide.
In

China,

Haiers

leading

product

categories

refrigerators,

refrigerating cabinets, air conditioners and washing machines - have

over 30% market share. In overseas markets, Haier products are
available in 12 of the top 15 chain stores in Europe and 10 leading
chain stores in the USA. Haier is now approaching its goal of being
local in American and European markets via localized design,
manufacturing and sales processes. In addition, Haier has set up
production facilities and plants in the USA, Italy, Pakistan, Jordan and
Nigeria.
Haiers innovative management principles, such as Haiers OEC
management model, market-chain management and individual goal
combination a system of assigning incentives-based responsibility to

staff to ensure the quality of products delivered to their customers

have gained high recognition among international management
institutes. Haier business case studies are included in the text books of
Harvard

University,

University

of

Southern

California,

Lausanne

Management College, European Business College and Kobe University.

Services
With the concept of customers as the foundation of growth, Haier
provides a one-stop star service to its customers. In a joint survey
conducted by the China Consumer Association and the China
Enterprise Research Centre of Tsinghua University on Chinas domestic
durable commodities for 2003 and 2004, 8 of Haiers product
categories were ranked No. 1 for customer satisfaction and overall
satisfaction.
In addition to high quality home appliances, Haier is also focused on
offering best-of-breed service solutions to its customers. Haiers
service system runs throughout the production process from product
design, production, manufacturing, to pre-sale, under sales and after
sales service. Since 2002, Haier has successfully established a network
of over 5,000 domestic professional service suppliers to deliver timely
customized service.

Partners
Haier has established an extensive sales network around the globe.
Key partners in perspective markets include:
China: Strategic alliance with Suning and Gome chain stores
America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's,
HOME DEPOT,

Best Buy, PC-Richard, Wal-Mart, Sam's, Costco,

BrandsMart and Target

Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and
JUSCO
Europe: Cooperation with KESA, Media Market and Carrefour

OBJECTIVES OF THE PROJECT

To find number of brands of consumer durable

To study brand preference of consumer for
consumer durable goods..

To find most important parameter for selection of

brand of MICROWAVE,
To study profit margin of major brands in
consumer durable.

RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project.
Without a proper well-organized research plan, it is impossible to
complete the project and reach to any conclusion. The project was
based on the survey plan. The main objective of survey was to collect
appropriate data, which work as a base for drawing conclusion and
getting result.

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.

Research

design

specifies

methods

and

procedures for study. In this study the company was interested to know
the demand of different consumer durable product, about competitors,
and potential for tv industry procedures to be used for the study
among retailers/dealer and. However it was exclusively personal
interview.

Data Collection:
This report was prepared after collecting data from the retailers/
dealers and past data was arranged from the various studies
conducted in last few years and various other records of company.

Primary Data:
These data were collected by personal interview with retailers/ dealer.
For this purpose questionnaires were prepared in such that all
necessary data would be collected.

Secondary Data:
Information regarding the project, secondary data was also required.
These data were collected from various past studies and other sources
of the company.

SAMPLING METHOD
Random Sampling method

SAMPLE SIZE
100 Dealers

Research tools:
Questionnaires

RESEARCH AREA

SAGAR DISTRICT-

SCOPE OF THE STUDY

This project gives us great exposure to the consumer durable market

because it includes product knowledge and field survey job in which we
visited the consumer durable stores in SAGAR district.

While visiting the shops we

1. Calculated the display share of the tv product in shop.
2. Collected the data of actual monthly sale of the tv product in few
shop.
3 Found out the problems that the dealer were facing while selling the
different product.
4. Found out the customer response for different products by asking
the owner of the shop.
5. Checked whether demo calls were attended or not

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 $450 billion by
on 2010
3. India has the youngest population amongst the major countries.
There were 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 were 56 million people in middle class, who were earning
us$4,400-US$21,800 a year. And there were 6 million rich household in
India.
5. The upper-middle and high-income household in urban areas were
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
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian
countries.

LIMITATION OF STUDY
Although I tried my best in preparation of this project, but this study
has some limitation:
1.The period of the project was not sufficient to study all the factors in
deep.
2.Visiting various places for the study consumed a lot of time.
3.We cannot say that what the consumer have revealed will be right for
each and every situation because their perception is influenced by
many factors.
4.Many consumer and dealers/retailers showed less interest in
providing information and havent cooperated.
5.Some of confidential information viz. credit period, schemes, policies
and sales figure were not disclosed by the competitors.

THEORETICAL BACKGROUND OF THE STUDY

Scope of market research in view of modern global business.
Research methods provide you with the knowledge and skills you
need to solve the problems and meet the challenges of a fast-paced
decision-making

environment.

Business

research

courses

are

recognition that students in business, not-for-profit, and public

organizations in all functional areas need training in the scientific
method and its application to decision making. Two factors stimulate
an interest in more scientific decision making: (1) the managers
increased need for more and better information and (2) the availability
of improved techniques and tools to meet this need.
During the last two decades, we have witnessed dramatic changes in
the business environment. Emerging from a historically economic role,
the business organization has evolved in response to the social and
political mandates of national public policy, explosive technology
growth, and continuing innovations in global communications. These
changes have created new knowledge needs for the manager. Other
knowledge demands have arisen from problems with mergers, trade

policies, protected markets, technology transfers, and macroeconomic

savings investment issues.
The trend toward complexity has increased the risks associated with
business decisions, making it more important to have a sound
information base. Increased complexity means

there are more

variables to consider. The competition is more vigorous, with many

business downsizing to make competitive gains. Workers, shareholders,
customers, and the public are better informed and more sensitive to
their self-interest. Government continues to show concern with all
aspects of society. Each of these factors demands that managers have
more and better information upon which to base decisions.
To do well in such an environment, you will need to be equipped with
an understanding of scientific methods and a means of incorporating
them into decision making. You will need to know how to identify good
research and how to conduct it. This book addresses these needs.
As the complexity of the business environment has increased, there
has been a commensurate, increase in the number and power of the
tools to conduct research. There is vastly more knowledge in all fields
of management. We have begun to build better theories. The computer
has given us a quantum leap in the ability to deal with problems. New
techniques of quantitative analysis take advantage of this power.
Communication

and

measurement

techniques

have

also

been

enhanced. These trends reinforce each other and are having a massive
impact on business management.
sources of collection of primary and secondary data for
market research.
ta sources may be classified as either internal (organizational) or
external sources of information.
Internal Sources
Internal sources of organizational data are so varied that it is difficult to
provide generalizations about their use. Accounting and management
information systems create and store much of the internal data.
Research and development, planning, and marketing functions also
contribute. Examples are departmental reports, production summaries,
financial and accounting reports, and marketing and sales studies. The
collection methods used are unique to the specific situation, and
collection success depends on knowing just where and how to look.
Sometimes the information may exist in central files (i.e., at
headquarters), in computer database, or in departmental chronological
files.
In other organizations, a central library keeps all relevant information.
Systematic searches should be made through exploratory interviews
with everyone who handles the information. Often company librarians,
MIS. PR/communications, or departmental secretaries can help in

pinpointing critical data sources. Internal data sources may be the only
source of information for many studies.

External Sources
External sources are created outside the organization and are more
varied than internal sources. There are also better defined methods for
finding them. This discussion is restricted to published sources,
although other sources of information may be useful.
Published sources of data can be classified into five categories. The
newest and fastest growing one is computerized database. They are
composed of interrelated data files. The files are sets of records
grouped together for storage on some medium. Access may be through
online search or CD-ROM. Online databases are often specialized and
focus on information about a particular field.
Major source of published information consists of diverse materials
from special collections. Within this category there are many reference
books, each a compendium of a range of information. A second group
includes university publications, of which there are masters theses,
doctoral dissertations, and research records. A third group includes
company publications such as financial reports, company policy
statements, speeches by prominent executives, sales literature,
product specifications, and many others. There are miscellaneous
information sources consisting of the productions of various trade,

professional and other associations. These organizations often publish

statistical compilation, research report, and proceeding of meeting.

DATA ANALYSIS AND

INTERPRETATION
Table No.1

Number of companys product sold by dealers.

Sr. No.
1
2
3
4

PRODUCT
SAMSUNG
PHILIPS
LG
ABOVE ALL
TOTAL

NO. OF RESPONDENTS
86
67
56
92
301
Source:Survey

Graph No. 1

NO. OF RESPONDENTS
100
90
80
70
60

NO. OF RESPONDENTS

50
40
30
20
10
0

INTERPRETATION:According to survey, 86 dealers were sold only SAMSUNG, 67 dealers

were sold PHILIPS and LG- 56 dealers were sold .and MOST OF THEM
SOLD ALL and 92 dealers were sold all product.

Table no. 2 shows no. of companys product sold from dealers shop.

Sr. NO.

NO. OF COMPANIES
PRODUCT
FIVE
FOUR
THREE
TWO
TOTAL

1
2
3
4

NO. OF
RESPONDENTS
33
24
9
34
100
Source:-

Survey
Graph No. 2

NO. OF COMPANIES PRODUCT

40
35
30
25

NO. OF RESPONDENTS

20
15
10
5
0
FIVE

FOUR

THREE

TWO

INTERPRETATIONAccording to survey, 33 dealers were sold 5 brands, 34 dealers were

sold only 2 brands from their shops.

Table No.3 Shows Major brand of C-TV sold by dealers.

Sr. NO.

BRAND

NO. OF

PERCENTAGE

1
2
3
4
5

RESPONDENT
S
39
23
18
11
9
100

LG
VIDEOCON
SAMSUNG
SANSUI
ONIDA
TOTAL

39
23
18
11
9
100
Source:-

Survey
Graph No. :- 3
MAJOR BRAND OF COLOUR TELEVISION
LG

VIDEOCON

SAMSUNG

SANSUI

ONIDA

9%
11%

39%

18%
23%

INTERPRETATIONAccording to dealers, in SAGAR district LG is leading in

C-TV with 39%, after that VIDEOCON is 2 nd with 23% and then
SAMSUNG is on 3rd with 18%.

Table No.4 Most important parameter for more sale of C-TV

Sr. NO.

REASONS FOR
MORE SALES

1
2
3
4
5

Price
Quality
Service
Advertisement
Schemes
TOTAL

NO. OF
RESPONDENT
S
28
30
17
15
10
100

PERCENTAGE
28
30
17
15
10
100
Source:-

Survey
Graph No.4

NO. OF RESPONDENTS

10%
15%

28%

17%
30%

INTERPRETATIONAccording to dealers, Price is most important parameter for more sale

of C-TV
and then Quality, Services, Advertisement and Schemes.

Table No. 5 shows the major brands of LCD TV sold by dealers.

Sr. NO
1
2
3
4

BRAND
LG
VIDEOCON
SAMSUNG
GODREJ

NO. OF
RESPONDENT
S
22
13
9
12

PERCENTAGE
22
13
9
12
Source:-

Survey
Graph No. 5
MAJOR BRANDS OF LCD TV

9%

22%

16%

13%

19%
12%

9%

INTERPRETATIONAccording to dealers, LG also leading in the LCD TV market in SAGAR

district with 22%,

Table No.6 shows

TV

most important parameter for more sale of LCD

Sr. NO.

REASONS FOR
MORE SALES

1
2
3
4
5

Price
Quality
Service
Advertisement
Schemes
TOTAL

NO. OF
RESPONDENT
S
27
32
19
13
9
100

PERCENTAGE
27
32
19
13
9
100
Source:Survey

Graph No. :- 6

NO. OF RESPONDENTS

9%
13%

27%

19%
32%

INTERPRETATIONAccording to dealers, most important parameter for more sale of LCD

TV
is Quality and then Price, Services, Advertisement and Schemes.

Table No.7 shows Major brands of DVD sold by dealers.

Sr. NO.
1
2
3
4
5
6
7
8

BRAND
LG
VIDEOCON
SAMSUNG
ONIDA
PHILIPS
SANSUI
SONY
INTEX
TOTAL

NO. OF
RESPONDENTS
11
13
10
15
22
12
8
9
100
Survey
Graph No. :- 9

INTERPRETATION-

PERCENTAGE
11
13
10
15
22
12
8
9
100
Source:-

According to dealers, PHILIPS is the most popular brand in DVD market

with 22%, after that ONIDA with 15% and VIDEOCON with 13% on 3 rd
position.

Table No.8 shows most important parameter for more sales of DVD
Sr. NO.

REASONS FOR
MORE SALES

1
2
3
4
5

Price
Quality
Service
Advertisement
Schemes
TOTAL

NO. OF
RESPONDENT
S
21
42
17
8
12
100
Survey

Graph No. 10

NO. OF RESPONDENTS

12%
8%

21%

17%
42%

INTERPRETATION-

PERCENTAGE
21
42
17
8
12
100
Source:-

According to dealers, Quality is major factor in respect of more sale of

DVD, and then Services and prices were to be considered.

Table NO.9 shows High Profit margin brands

Sr. No.
1
2
3
4
5
6
7
8

BRANDS
LG
SAMAUNG
WHIRLPOOL
VIDEOCON
SONY
GODREJ
PHILIPS
KENSTAR
TOTAL

NO. OF
RESPONDENTS
21
18
16
13
11
9
7
5
100

Graph No.13

PERCENTAGE
21
18
16
13
11
9
7
5
100
Source:Survey

INTERPRETATIONAccording to dealers, in Indian consumer durable industry

LG is leading company because of their low pricing policy and the
better quality of product. SAMSUNG is on 2 nd position, if SAMSUNG will
change their pricing policy like LG and VIDEOCON then SAMSUNG
should be on 1st position.
Table No.14 shows Suggestion from dealers for SAMSUNG to increase
the business

Sr. No.
1
2
3
4
5
6

SUGGESTION
FAST AND REGULAR
AFTER SALES SERVICE
REDUCE PRICES
INCREASE DEALER
MARGIN
ADVERTISMENT AT
RURAL AREA
IMPROVE QUALITY
REGULAR SCHEMES

NO. OF RESPONDENTS
31
21
15
13
10
9

TOTAL

100
Source:Survey

Graph No.14

INTERPRETATIONAccording to suggestion of dealers, AFTER SALES SERVICE is most

important factor which is helping to the SAMSUNG for increase the
sales.

After that PRICES OF THE PRODUCT should be economic.

DEALER MARGIN should increase for motivation of dealers.

FINDING
1. We came to know while visiting the shop most of the dealers sold
entire consumer tv product including C-TV, LCD ,LED,PLASMA ETC.

2. We know that during the survey in consumer durable industry in

SAGAR district and

rural area of SAGAR district LG is leading in

MICROWAVE,
3. Study shows that quality is most important parameter for more sale
of MICROWAVE and then price is considered by consumers.
4. Study shows that quality of the product is most important parameter
for tv then price is considered by consumers.
5. While visiting the shop we came to know that quality is most
important parameter which is affect on more sales of LED TVs.
6. According to Survey, Philips is most popular brand for DVD.
8. While visiting the shop we know that LG is gives high profit margin
as compare to other competitors.
9. While visiting the shop dealers suggested that after sales service is
most important factor which contributes towards the sales of
Consumer durables.
10. All the dealers were not satisfied with the profit margin.
11. SAMSUNG product is costly as compare to LG and VIDEOCON.
12. Maximum rural area is covered by the VIDEOCON because of their
low price products.

13. We came to know while visiting the shops that there was big
problem of after sales service.
14. Many dealers were facing the problem of after sale service because
there is no follow up calls from SAMSUNG.s
15. Demo calls also not done properly.

16. LG and Videocon is the main competitor of SAMSUNG.

17. Advertising of SAMSUNG CTV is more effective as compare to the
competitors.
18. Sales promotion scheme were sufficient.

SUGGESTIONS
&RECOMANDETION

 Company should improve the after sales service of products as it

is the main factor for the sales of consumer products.

If the SAMSUNG Ltd. reduces their product price like LG and

VIDEOCON then SAMSUNG will take over the LG in all categories.

Company should distribute free key chain, calendar,

t-shirts for

making brand popular among people.

Company should introduce low price and low power consumption

TVs for acquiring the middle income group.

Dealer desire more advertisement to be done through local

newspaper and cable TV ads. To make consumers aware about
the product.

Prompt of service in time.

Advertisements of the companys products should focus on

quality rather then price.

Company should target upper middle class or premium class

customers.

Company should introduce low cost products to satisfy the needs

of low or middle class.

Demo calls as well as follow up Help Company to maintain

customer relationship and hence the company should focus on
these aspects.

CONCLUSION

With respect to the above study and the findings thereby, the
company has definitely entrenched into the urban market.

With few more concerted efforts, the said organization needs to

enter the rural market in order to completely establish itself all
over.

ANNEXURE
A. Questionnaire

Study of Consumer Durable Market for SAMSUNG Electronics

Ltd. With
Special reference To SAGAR district.
Name of shop:
Address:
Contact no.:
1) Which is consumer durable product you sold from your shop?
C-TV
Refrigerator
Washing Machine
DVD
Microwave
2) How many no. of companys product you sold from your shop?
ONE_______________________________________________
TWO_______________________________________________
THREE_____________________________________________
FOUR______________________________________________
FIVE_______________________________________________
SIX________________________________________________
3) Which is major brand of Colour-MICROWAVE you sold from your
shop?
SAMSUNG
LG
Videocon
Onida
Sansui
4) What is the important parameter for more sales of ColourMICROWAVE brand?

Price
Schemes

Quality Services

Advertisement

5) Which is major brand of Refrigerator you sold from your shop?

Godrej
Whirlpool
Kenstar
LG
SAMSUNG
Videocon
Kelvinator
6) What is the important parameter for more sales of Refrigerator
brand?
Price
Quality
Services

Advertisement
Schemes
7) Which is major brand of Washing Machine you sold from your
shop?
IFB
Whirlpool
Kenstar
LG
SAMSUNG
Videocon

Kelvinator
Godrej
8) What is the important parameter for more sales of Washing
Machine brand?
Price
Quality
Services

Advertisement
Schemes
9) Which is major brand of DVD you sold from your shop?
SAMSUNG
LG
Videocon
Onida
Sansui
Philips
Intex
SONY
10)
What is the important parameter for more sales of DVD
brand?
Price
Quality
Services

Advertisement
Schemes
11)
Which is major brand of Microwave you sold from your
shop?
SAMSUNG
LG
Videocon
Kenstar
Godrej
Philips
Bajaj
SONY
12)
What is the important parameter for more sales of
Microwave brand?

Price
Schemes

Quality Services

Advertisement

13)
Which companys product you give high profit margin?
SAMSUNG
LG
VIDEOCON
SONY
WHIRLPOOL
GODREJ
PHILIPS
KENSTAR
14) What are your suggestions for SAMSUNG to increase the sales?
_________________________________________________________________
________________________________________________________________
__

BIBLIOGRAPHY
REFERENCES

BOOKS:Kottler Philip

Marketing Management

Chunawall S.A.

Essentials of Marketing Research

Kothari C.R.

Research Methodology

Sherlerkar S.A.

Marketing Management

Schiff man Leon. G.

Leslie Lazar Kaunk

Magazines
Business world
Companys Booklet

Websites
www.samsung.com
www.lgelectronics.com
www.videocon.com
www.google.com

Newspaper
Times of India
Economic Times