CHAPTER-1

INTRODUCTION
1.1.1 Overview of the organization
LG Electronics is a South Korean multi-national electronics company headquartered in Yeouido-dong, Seoul,
and a member of the LG Group . 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 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.
The company operates its business through five divisions: Mobile Communications, Home Entertainment,
Home Appliances, Air Conditioning, and Energy Solutions. It is the world's second-largest television
manufacturer and the world's fifth-largest mobile phone maker by unit sales in the second quarter of 2012.
LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, mobile
communications and home appliances. With 117 operations around the world, LG achieved global sales of KRW
54.26 trillion (USD 49 billion) in 2011. LG is comprised of four business units Home Entertainment, Mobile
Communications, Home Appliance, and Air Conditioning & Energy Solutions and is one of the worlds
leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators LG
Electronics (LGE) makes the products that have tech-savvy consumers chomping at the bit in the kitchen, in the
media room, and on the go. A leader in consumer electronics, mobile communications, and home appliances,
LGE operates through more than 80 subsidiaries worldwide that design and make flat panel TVs, audio and
video products, mobile handsets, air conditioners, washing machines, refrigerators, and more. Asia and North
America are its two largest markets, each contributing about 30% of sales. LGE owns Zenith Electronics
(acquired in 1995) and LG Display. Founded in 1958 as Goldstar, LGE established a North American
headquarters in 2004. South Korea's LG Corp. owns about one-third of LGE.
1

1.1.2 Global operations

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

ASIA & PACIFIC

Australia

India

Indonesia

Japan

Korea(Headquarters)

Korea(Headquarters)

Korea(Headquarters)

Korea(Headquarters)

Korea(Headquarters)

Malaysia

Philippines

Singapore

Taiwan

Thailand

Vietnam

1.1.3 Business areas and main products

1.

2.

Mobile communications

CDMA Handsets

GSM Handsets

3G Handsets

Cellular Phones

Digital appliance

Air Conditioners

Refrigerators

Microwave Ovens

Washing Machines

3.

4.

Vacuum Cleaners

Home Net

Compressors for Air Conditioners and Refrigerators

Digital display

Plasma TVs

LCD TVs

Micro Display Panel TVs

Monitors

PDP Modules

OLED Panels

USB Memory

Flat Panel Computer Monitors

Digital media

Home Theater Systems

DVD Recorders

Super Multi DVD Rewriters

CDRW

Notebook PCs

Desktop PCs

PDAs

PDA Phones

MP3 PlayersNew

Karaoke Systems

Car Infotainment

HOME ENTERTAINMENT
LG has become a top global player in home entertainment by blending stylish design and cutting-edge 3D
and Smart TV technology in their flat-panel TVs, audio players, monitors, PC and other products.

LG Home Entertainment Company is a major manufacturer of high-tech electronics with an ongoing

commitment to developing next-generation displays. This gives LG a distinct advantage in this fastmoving

industry.

LG will continue to invest in future technology and redefine expectations for the future of entertainment,
thus positioning itself as the No. 1 global player in the home entertainment market.
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MOBILE COMMUNICATIONS
A global leader and innovator in the global mobile communications industry, LG Electronics Mobile
Communications Company (LG) provides consumers with superior mobile experiences through its smart
technology and stylish design, while creating new trends based on consumer insights and demands.

Increasingly emerging as a leader in smart devices, LG produces a full line-up of smartphones from
premium to mass-tier, which deliver exceptional value and a singular user experience to consumers all
around the world. LG aggressively focuses on setting new standards in mobile technologies and
developing market-leading smartphones and tablet PCs with superb hardware functionality, innovative
design and outstanding displays. With strong technology leadership in the mobile industry, LG is at the
forefront of new trends in smart devices with innovative features such as multi-core processors, 3D,
bright and clear displays, and 4G LTE (Long Term Evolution). With innovations and features such as
these, LG continues to roll out an array of market-leading smart devices, raising the bar for consumer
satisfaction. LG is also increasingly helping to shape the course of smartphone platforms, and increase
customer choice, through its close relationship with Google and Microsoft. Through innovations that
enhance users everyday lives, LG will continue to set trends and shape the future of mobile phones.
AIR CONDITIONING & ENERGY SOLUTION
The LG Electronics Air Conditioning and Energy Solution Company is an industry leading complete
heating, ventilation and air conditioning (HVAC) and energy solution company trusted around the world,

which provides Residential Air Conditioning (RAC), Commercial Air Conditioning (CAC) and Lighting
solutions around the world.

Based on technological leadership and combining a full line-up of HVAC system, lighting solutions and
high technology, LG AE has been providing comprehensive, energy efficient and environmentally
responsible solutions to customers with diverse needs across the globe. Recently, LG AE is increasingly
expanding into specialized B2B solutions with a central focus on eco-friendliness and energy efficiency.
Through its innovative technology, heavy investments in R&D and effective marketing strategies, LG
AE has broken its own sales records every year since 2000. Through a comprehensive solution, LG AE
Company is aiming to reach USD 10 billion in global sales by 2015.
HOME APPLIANCES

LG Home Appliance Company has always provided leading-edge technology with stylish designs. LG is
committed to preserving our natural environment and creating consumer-optimized products. In particular,
LG has long been a top brand in washing machines, delivering innovation, durability and exceptional
performance.
9

Through their enhanced connectivity, LGs smart appliances enabled by THINQ technology provide our
customers with the ultimate benefits of empowerment and convenience, delivering a fully integrated smart
solution today.
Underpinning all LGs achievements are its four core technologies the Linear Compressor, Inverter Direct
Drive, Lightwave and KOMPRESSOR. LG is also making homes smarter and more connected with its
THINQ technology: the Smart Grid, Smart Diagnosis, Smart Access, Smart Adapt and Smart Manager. LGs
smart appliances enrich consumers lives, making their homes greener, more reliable and more efficient.
Building on its outstanding range of existing products, LG is taking a proactive approach to energy and
environmental issues as it looks to minimize greenhouse gas emissions and increase energy efficiency. LG also
cares about hygiene in the home, creating products with health-conscious features. In addition, to help our
customers lead healthier, more convenient lives, LG is planning to expand its healthcare business with new
health-conscious products based on CoreCare

1.1.4 Management of LG electronics

10

KEY EXECUTIVES

11

Name

Title

Bon-Joon Koo

Vice Chairman and Chief Executive Officer

Jong-Sik Kim

President and Chief Operating Officer

Young-Ha Lee

President and Business Support Officer

Moon-Bum Shin

President and Head of China Operations

Seung-Kwon Skott Ahn

President and Chief Technology Officer

BOARD MEMBERS

Name

Primary Company

Bon-Joon Koo

LG Electronics Inc.

David Jung

LG Electronics Inc.

Yu-Sig Kang

LG Corp.

Bon Moo Koo

LG Corp.

In-Ki Joo

LG Electronics Inc.

1.1.5 MANAGEMENT BY PRINCIPLES

The starting point for LG Electronics' business pursuits lies in the company's commitment to society and to
developing new ideas. LG Electronics' "Management by Principles" embodies our high ethical standards of
doing business in a transparent and honest manner.

12

As LG continues to develop as a global leader, its strength will continue to be derived through this pursuit of a
greater good, while upholding the fundamentals of cooperation, mutual trust, and respect for the free market
economy.

1.1.6 THE LG WAY

"Management by Principle" ("Jeong-do" Management) is the ethical code LG abides by in all its affairs-aiming
to succeed through fair management practices, and constantly striving to better our business skills.

1.1.7 SUSTAINABILITY MANAGEMENT SYSTEM

"Creating value for customers" and "respect-based management" have long been the principles behind LG
Electronics' management activities-aiming, in sum, to promote the basics of sustainable corporate management.
Moving forward, these two philosophies will continue to provide a framework for our corporate style.
LG Electronics has established four basic methods to achieve corporate sustainable management.
Firstly, LG Electronics continually assesses new ways to develop its organization and systems-and to strengthen
its internal competencies-so that the three focal points of sustainable management: economic profitability, ecofriendliness, and social responsibility, can be assured.

1.1.8 History of LG company

The trajectory of LG Electronics, its growth and diversification, has always been grounded in the company
ethos of making our customers' lives ever better and easier-happier, even-through increased functionality and
fun. Since its founding in 1958, LG Electronics has led the way to an ever-more advanced digital era. Along the
way, our constantly evolving technological expertise has lent itself to many new products and applied
13

technologies. Moving forward into the 21st century, LG continues to on its path to becoming the finest global
electronics company, bar none

The company was originally established in 1958 as Gold Star

1958-1969-GoldStar The Electronics Industry Dream

14

1970-79 GoldStar symbol of The Technolgoy

1980-88 :- INTERNATIONALIZATION

1989-94 INOVATION

1995-98 GLOBAL LEADERS LG ELECTRONICS

15

1999-2003-DIGITAL MANAGEMENT

2004-2006 GREAT PEOPLE GREAT DESIGN

2007-THE PEOPLE COMPANY

16

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of
LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG,
household products were sold under the Brand name of Lucky, while electronic products were sold under the
brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

1.1.9 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 Televisions, 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.

17

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.

1.1.10 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 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
18

8. GOOGLE

1.1.11 Market Share & Position of LG

LG Electronics Inc for the first time has climbed up the sales ladder and positioned itself on number three after
Apple Inc and Samsung Electronics Co Ltd. As per data LG has acquired this position in a $ 223 billion market.
LG saw its smart phone market share rise to 3.2 percent in the fourth quarter by sales, propelling it to the third
spot for the first time, while rival HTC Corp slid to fourth, data from research firm Strategy Analytics showed.
Together, Samsung and Apple has acquired 71.4 percent of the market and rest is split among firms such as LG,
HTC, Sony Corp and Blackberry, the data showed.
Reflecting growing optimism that LGs smart phone business will recover, LG Electronics shares have gained
54 percent from their 2012 low hit in late July. LG is betting high-end models that boast powerful hardware and
software features and a fast 4G connection will help it rebuild its tarnished handset brand quality and increase
its market share of the lower-end segment as well.
The South Korean company announced its software upgrades for its flagship Optimus G Pro model that will
allow consumers access to features that Samsung touted as major selling points of its upcoming Galaxy S4. The
move is its latest attempt to boost appeal to up market consumers before rival products hit the market.
The features LG is adding include motion detecting technology that stops and starts videos depending on
whether someone is looking at the screen and snapping pictures.

19

The 5-inch Optimus Pro debuted in South Korea in late February and in Japan this month. It is LGs fastestselling smart phone with sales hitting 500,000 in the first 40 days of the launch, LG said.
If unit shipment is considered, LG occupies the seventh position with 4.0 percent share, following Huawei,
Lenovo Group Ltd, Sony and ZTE Corp which have market share of between 4 and 5 percent.
Analysts expect LGs smart phone shipments will rise by 16 percent to a record 10 million after 8.6 million
phones sold in the fourth quarter, a strong performance as the overall market is seen contracting by 6 percent
from the strong year-end holiday quarter.

1.1.12 BRAND IDENTITY

LG strives to enhance its customers life and lifestyle with intelligent product features, intuitive functionality,
and exceptional performance. Choosing LG is a form of self-expression and a promise of satisfaction. Our
customers take pride in owning an object of excellence and take comfort in knowing theyve made a smart,
informed purchase, every time.

1.1.13 BRAND PLATFORM

The LG brand is comprised of four basic elements: values, promise, benefits, and personality.

1.1.14 The Slogan

LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic logo are a great representation of
what we stand for.

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Global, Tomorrow, Energy, Humanity and Technology are the pillars that
this corporation is founded on; with the capital letters L and G positioned
inside a circle to center our ideals above all else, humanity. The symbol
mark stands for our resolve to establish a lasting relationship with, and to
achieve the highest satisfaction for our customers.
The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and technology. Our
philosophy is based on Humanity. Also, it represents LG's efforts to keep close relationships with our customers
around the world. The symbol mark consists of two elements: the LG logo in LG Grey and the stylized image of
a human face in the unique LG Red color. Red, the main color, represents our friendliness, and also gives a
strong impression of LG's commitment to deliver the best. Therefore, the shape or the color of this symbol mark
must never be changed.
Our logo is the fundamental visual expression used to identify LG. It expresses the quality and sophistication
that is the hallmark of our products. It is simple, modern and distinctive. Consistent and proper usage of the logo
is absolutely essential. The logo is symbolic of our steadfast reputation for excellence; therefore, any variation
of the logo diminishes the visual identity of LG Electronics and its products.

1.1.15 CORPORATE LOGO

Applicable Items :
- Stationery
(Business Card, Letterhead, Envelope)
- Office templates (Fax, Memo)
- Awards
21

- ID badges
- Corporate signs
3D LOGO

Applicable Items :
- Advertising
(Print, Online, TV and Outdoor)
- Websites and microsites
- Promotional literature
(Leaflet, Brochures, etc)
- Packaging
- Retail signs and POPs- Shopping bags
- Service vehicle

FACE
The stylized image of a smiling face is meant to convey company friendliness and approachability. That the
portrait is one-eyed conveys LGs profile as goal-oriented, focused, and confident.
CIRCLE
The circle represents the globe, symbolizing the world and all of humanity, as well as youth and the future.
SHAPE
The upper-right corner of the LG logo, intentionally left blank, makes the design distinctly asymmetrica nod
to LGs creativity and adaptability to change.

22

COLORS
LG Red, the main color, symbolizes friendliness, and is also meant to convey LGs commitment to delivering
the best. LG Gray represents technology and reliability.

1.1.13 The Face of the Future: The meaning and inspiration behind LGs logo design.
The letters L and G in a circle symbolize the world, future, youth, humanity, and technology. Our
philosophy is based on Humanity. Also, it represents LGs efforts to keep close relationships with our customers
around the world.
The symbol consists of two elements: the LG logo in LG Grey and the stylized image of a human face in the
unique LG Red color. Red, the main color, represents our friendliness, and also gives a strong impression of
LGs commitment to deliver the best. Therefore, the shape or the color of this symbol must never be changed.

23

1.1.16 Vision & Mission of the company

VISION
LG Electronics continues to pursue its 21
St century vision of becoming a worldwide leader in digitalensuring customer satisfaction through innovative
products and superior service while aiming to rank among the worlds top three electronics, information, and
telecommunications firms by2013.On their way, they hold tight to a philosophy of Great Company , Great
People, underscoring their belief that only great people can create a great company. LG strives for greatness in
what weve identified as our three core capabilities: Product Leadership, Market Leadership, and People
Leadershipeach strength a key part of realizing our growth strategies for fast innovation and fast growth.
Global Top 3 by 2013 Global Top 3 Electronic/Telecommunication company

MISSION
The mission of LG is to provide the customers with utmost with utmost satisfaction through leadership
The fundamental policy of development is to secure product leadership that the customer may have utmost
satisfaction.

1.1.17 Code of conduct of LG

Responsibility and obligations to customers

Respect for Customers

Creating Value

Providing Value

Fair competition
24

Pursuit of Free Competition

Compliance with Laws and Regulations

Fair Transaction

Equal Opportunity

Fair Transaction Procedure

Support and Aid for Business Partners

Basic Ethics for Employees

Basic Ethics

Completion of Duty

Self Development

Fairness in Performance

Avoidance of conflict with company interest

Corporate Responsibilities to employees

Respect for human dignity

Fair Treatment

Promoting Creativity

Responsibilities to society and country

25

Rational Business Development

Protection of stock holder interest

Contribution to social development

Environmental Conservation

1.1.18 SWOT Analysis

26

Strength
1. Wide range of products to serve all categories and a strong focus on technology and quality
2. Effective localization of product offerings for growth markets like India, Brazil, and China
3. Brand offers sound rational appeal good product features and good value for money
4. Good after sales service and wide distribution network
5. Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the local market
6. Sponsorship of sports and entertainment events enhances visibility
7. It has nearly 100,000 employees and is one of the top mobile manufacturers.
Weakness

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1. Brand lacks influence in the opinionated segment of early adopters especially in the social media environment
2. Brand has limited market share compared to market leaders
Opportunity
1. Fast growth of home appliances, electronics goods market in emerging economies
2. Convert improved brand image and awareness in to market share
3. Increase the already Wide product portfolio.
Threat
1. Price war with close Korean competitors like Samsung can disrupt growth in price sensitive markets
2. Highly competitive industry dynamics
3. Stagnant urban demand
4. Instances of false green claims can erode brand value and consumer trust

1.1.13 Competitors
1. Nokia
2. Samsung
3. Blackberry
4. Apple

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Theoretical design
1.2.1 Meaning of Market potential:It is the intensity of possible contacts with markets. If a plant could be located in a number of locations, it is
useful to be able to estimate the probable volume of sales which could be achieved at each possible site. This is
the market potential, which is expressed as the sum of the ratios of the market to distances to each of the points
under consideration. Thus:

where the market potential (Pi) at point i is the summation () of n markets (j), accessible to the point i divided
by their distance (dij) from that point. M is usually a measure of actual retail sales, and transport costs may be
substituted for d.

29

Once Pi has been calculated for all the possible locations, the site with the highest market potential may be
found, but in practice the prediction of likely sales rarely reflects the true situation.
Benefits of Market Potential

Understand market potential for a single store, network of stores or a new market

Deploy resources effectively by ranking markets in priority order

Forecast total opportunity in terms of number of customers and revenue potential

Estimate your market share

Market potential analysis

Market potential analysis is a primary analytic service performed by Mapping Analytics. We have the people,
experience, tools, and data required to perform sophisticated and accurate market sizing.
A market potential analysis from Mapping Analytics may include:

A customer profile to understand where to find more like them

Market penetration and market share reports showing performance in existing markets
and expected performance in new markets

Market ranking reports allowing you to prioritize resource deployment into new
markets

A geographic view of market opportunity on detailed maps

1.2.2 Strategic alliance

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A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to
meet a critical business need while remaining independent organizations. This form of cooperation lies
between M&A and organic growth.
Partners may provide the strategic alliance with resources such as products, distribution channels,
manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The
alliance is a cooperation or collaboration which aims for synergy where each partner hopes that the benefits
from the alliance will be greater than those from individual efforts. The alliance often involves technology
transfer (access to knowledge and expertise), specialization, shared expenses and shared risk.

Stages of strategic alliance formulation

A typical strategic alliance formation process involves these steps:

Strategy Development: Strategy development involves studying the alliances feasibility, objectives and
rationale, focusing on the major issues and challenges and development of resource strategies for
production, technology, and people. It requires aligning alliance objectives with the overall corporate
strategy.

Partner Assessment: Partner assessment involves analyzing a potential partners strengths and
weaknesses, creating strategies for accommodating all partners management styles, preparing appropriate
partner selection criteria, understanding a partners motives for joining the alliance and addressing resource
capability gaps that may exist for a partner.

Contract Negotiation: Contract negotiations involves determining whether all parties have realistic
objectives, forming high caliber negotiating teams, defining each partners contributions and rewards as
31

well as protect any proprietary information, addressing termination clauses, penalties for poor performance,
and highlighting the degree to which arbitration procedures are clearly stated and understood.

Alliance Operation: Alliance operations involves addressing senior managements commitment, finding
the caliber of resources devoted to the alliance, linking of budgets and resources with strategic priorities,
measuring and rewarding alliance performance, and assessing the performance and results of the alliance.

Alliance Termination: Alliance termination involves winding down the alliance, for instance when its
objectives have been met or cannot be met, or when a partner adjusts priorities or re-allocates resources
elsewhere.

The advantages of strategic alliance include:

1. Allowing each partner to concentrate on activities that best match their capabilities.
2. Learning from partners & developing competences that may be more widely exploited elsewhere.
3. Adequate suitability of the resources & competencies of an organization for it to survive.
There are four types of strategic alliances: joint venture, equity strategic alliance, non-equity strategic alliance,
and global strategic alliances.

Joint venture is a strategic alliance in which two or more firms create a legally independent company to
share some of their resources and capabilities to develop a competitive advantage.

Equity strategic alliance is an alliance in which two or more firms own different percentages of the
company they have formed by combining some of their resources and capabilities to create a competitive
advantage.

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Non-equity strategic alliance is an alliance in which two or more firms develop a contractual-

relationship to share some of their unique resources and capabilities to create a competitive advantage.
Global Strategic Alliances working partnerships between companies (often more than two) across

national boundaries and increasingly across industries, sometimes formed between company and a foreign
government, or among companies and governments.

1.3 Objective of study:

To know the consumer awareness about LG mobile phones

To know the market potential of the LG mobile phones

1.4 Scope of Study

The geographical scope of the study is restricted to Delhi only with sample size of 100 people.
All the analysis and suggestions are based on the analysis of the both primary and secondary data.
Therefore the scope of the study revolves around the following aspects:

Consumer awareness about LG phones .

Factors influencing the choice of customer.

Market potential of LG ph

CHAPTER-2
METHODOLOGY
2.1 Research methodology
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject
in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology
includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure.
The methodology used in the study consistent of sample survey using both primary & secondary data. The
33

primary data has been collected with the help of questionnaire as well as personal observation book, magazine;
journals have been referred for secondary data. The questionnaire has been drafted & presented by the
researcher himself.

2.2 Methodology used for Data Collection:

DATA: - Data are values of qualitative or quantitative variables, belonging to a set of items. Data are
typically the results of measurements and can be visualized using graphs or images. Data as an abstract
concept can be viewed as the lowest level of abstraction from which information and then knowledge are
derived.
DATA COLLECTION:- It refers to collection of information .for a research to succeed raw facts must be
collected in a form which helps in effective production of result and meeting the objective of study.
SOURCES OF DATA COLLECTION:
-

PRIMARY DATA:- Primary data is the data which is collected by the researcher directly from his own
observations and experiences. For example, if the researcher conducts a survey for the collected of data
then it is known as primary data.

SECONDARY DATA:- Secondary data is data that has already been collected and collated by
somebody for some reason other than the current study. It can be used to get a new perspective on the
current study, to supplement or compare the work or to use parts of it, as another study may prove costly
and time consuming e.g. the census.

2.3 Methodology used for Data Analysis:

Sample Size
Sample of 100 people was taken into study, and their data was collected
Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.
Data Collection:
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Collection of data is done by

Secondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.

Data Analysis:
After data collection, Im able to analyze customers views, ideas and opinions related to Auto LG mobile
phones and from this, LG will come to know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative
techniques (by using these techniques) accurate information is obtained.
Classification & tabulation of data:
The data thus collected were classified according to the categories, counting sheets & the summary tables were
prepared. The resultant tables were one dimensional, two dimensional.
Statistical tools used for analysis:
Out of the total respondents, the respondents who responded logically were taken into account while going into
statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are
mainly statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from different people. According to
their responses I analyze the findings and draw certain remarks.

35

36

CHAPTER- 3
DATA ANALYSIS & INTERPRETATION

Q1. Which of the following mobile phone brands do you own?

LG

Nokia

40

Samsung

15

HTC

13

Blackberry

15

Motorola

Sony

Micromax

Lava

1
37

Apple

LG

Nokia

Samsung

HTC

Blackberry

Motorola

Sony

Micromax

Lava

Apple

3% 2% 1%
15% 1%

3% 5%

41%
13%
15%

Figure:-1
It has been observed that nokia is the most familiar among the people with 40%.. Percentage of people owning
LG mobile phones is very less i.e. 5%.
Q2. If you had to buy a new mobile today, which brand would you prefer?
LG

Nokia

45

Samsung

10

HTC

19

Blackberry

15

Motorola

Sony

Micromax

Lava

Apple

38

LG

Nokia

Samsung

HTC

Blackberry

Motorola

Sony

Micromax

Lava

Apple

2%
2%

8% 3%

14% 1%
43%
18%
10%

Figure:- 2
It has been observed that the people want to purchase nokia instead of any other phone brands with 45%. LG
has neglible amount of demand in the market catering only 3% of future demand.

Q3. What makes you give up using the previous brand?

Out of order easily
Other brands more advanced
Outlook not attractive

39

18
72
10

10%

18%
Out of order easily
Other brands more
advanced

72%

Outlook not attractive

Figure:-3
It has been observed that 72% of the people give up their previous brand due to other brands being more
attractive. 10% of people give up due to outlook not attractive and 18% due to out of order easily

Q4. What is your current income per annum?

Less than 1 lakh
1 lakh- 3 lakh
3 lakh 6 lakh
6 lakh- 9 lakh
More than 9 lakh

40

19
11
24
26
20

Less than 1 lakh

1 lakh- 3 lakh

6 lakh- 9 lakh

More than 9 lakh

20%

3 lakh 6 lakh

19%
11%

26%
24%

Figure:-4
The income of 24% respondents is between 3 lakh-6lakh. 26% of them are in the 6lakh-9lakh income
bracket.19% have income less than 1 lakh and 11% have income between 1 lakh- 3lakh

Q5. Which of the following LG phones you are aware of?

Name
LG Optimus
LG Quad core
LG L3
LG T375
LG A290
LG C660

41

Have seen or heard

57
21
26
11
12
38

Have not seen nor heard

43
79
74
89
88
62

Have seen or heard

Have not seen nor heard

43
79

74

21

26

62
89

88

57

LG Optimus LG Quad core

LG L3

38
11

12

LG T375

LG a290

LG C660

Figure:- 5
It has been observed that LG optimus and LG C660 is most familiar between the respondents.

Q6. What would you consider most important when choosing a mobile phone?
Functionality

48

Look & feel

Applications store
Connectivity
Pricing
Battery backup

8
15
7
2
20

42

Functionality

Look & feel

Applications store

Connectivity

Pricing

Battery backup

20%
2%
7%

48%

15%
8%

Figure:- 6
It has been observed that 48% of the respondents consider functionality to be the most important factor while
choosing mobile phones and only 2% consider pricing to be the most important factor.

Q7. What functionality would you mark as most important to have on your phone?
Send/receive calls& sms
Camera
Mp3 player
Bluetooth
Email application
Games
Calendar/organizer
Google maps
Applications store
Battery
Document reader(PDF,WORD)

43

58
3
2
2
1
1
5
2
2
19
5

Bluetooth

Email application

Games

Calendar/organizer

Google maps

Applications store

Battery

Document reader(PDF,WORD)

14% 5% 3%
3%
14%
5%
51%
5%

Figure:-7
It has been observed that 51% of the people consider battery backup to be the most important functionality and
only 3% consider gaming and email application to be important

Q8. Have you seen any advertising for LG phones over the last few weeks?
Yes
No

28
72

Yes

No

28%

72%

44

Figure:-8
It has been observed that only 28% of the respondents have seen advertisement of lg mobile phone and 72%
have not seen.

Q9. Which of the following reasons you want to choose LG?

User friendly
Competitive price
Attractive outlook
Modern & stylish

User friendly

28
24
38
10

Competitive price

Attractive outlook

10%
28%

38%
24%

Figure:-9
45

Modern & stylish

It has been observes that 24% of respondents who choose LG make their choice because of its competitive
price. 38% choose because of attractive outlook, 10% choose because of modern & stylish and 28% choose
because they find LG mobile phones user friendly.

Q10. Do you think LG mobile phone have any improvements over the past years?
Yes
No

88
12

Yes

No

12%

88%

Figure:-10
It has been observed that 88% of the respondents believe that there has been an improvement in the LG mobile
phone during past few years whereas 12% believe that there has been no improvements.

46

CHAPTER-4
CONCLUSIONS
4.1 Results of study

It has been observed that nokia is the market leader with 40% of respondents presently
owning it and 45% of them want to purchase it.

LG mobile phone is owned by only 5% of the respondents and only 3% are willing to
purchase in future

Due to development of new technology every day 72% of the respondents believe they would
give up their existing brands due to other brands being more attractive.

LG optimus and LG C660 have been most likely seen or observed mobile phones by the
respondents.

Functionality is considered the most important while choosing a mobile with 48% of the
respondents responding to that option.

The most important functionality is the battery backup of the mobile phone

72% of the respondents have not seen any advertisement of LG phones during past few
weeks.

47

38% of the respondents would choose LG mobile phones for its attractive outlook.

88% of the respondents believe that there has been improvements in the LG mobile phones
during past 2-3 years.

4.2 Limitations of the study

Time was the major limiting factor. Time allotted to conduct the survey was not enough.
Due to time constraint and other supporting factors the study has been limited.
Method of data collection was through personal and therefore bias becomes a major limitation.
The sample size is 100, therefore may not be precise.

4.3 Suggestions and recommendations

LG is pursuing the vision of becoming a true global digital leader to achieve this, they need to
improve the quality of its products.
LG should focus on formulation of strategies like advertisements and sales promotion measures can
be an effective tool to cut down competitor.
Benchmarking with the leader and following its way of approach towards the customer can be an
effective way to improve the companys current position in the market.
The customers are not satisfied by the after sales service provided by the company due to delay in
the after sales services provided by the company.
LG should focus on introduction of more number of mobile phone models in all catergories.

48

4.4 Conclusions
In the market of mobile phone there has been a drastic change in the past two years. The company should
take advantage in improving their current position in this time. While considering LG mobile phones there
has always been a formidable growth while comparing with its competitors. Mobile technology is on the run
for money in the future. Further enhancements in the technology, marketing, logistics can flush in huge
number of sales and thus improving in profits.

49