A

PROJECT REPORT

ON

MARKET ANALYSIS OF LG CONSUMER DURABLES & DEALER

DEVELOPMENT

For

LG Electronic Pune Limited

Submitted By

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 Acknowledgement
It is indeed of great moment to pleasure to express my senses of per found gratitude &
indebtness to all the people who have been instrumental in making my tanning a rich
experience. I got the opportunity to do a challenging project in LG ELECTRONIC PUNE
(INDIA) The project is the important part of our study and gives us a real practical exposure to
the corporate world and it is almost impossible to do the same without the guidance of peoples
in and around us. Specifically the summer training of from 2nd of May to 2nd of July that is
generally termed as the partial fulfillment of our pgp program holds extreme importance for our
whole career. Similarly while doing the topic “Market Survey on LG consumer durables &
dealer development as a summer trainee I took many my projects in help.

It gives me immense pleasure to acknowledge LG

ELECTRONICS INDIA Ltd., which has been nice enough to give me a chance to do my
summer training and providing me wonderful support through out my training period and
afterward.

Xxxxxxxxxxxxx

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 Executive summary

Indian Consumer durables market used to be dominated by few domestic players like Godrej
Voltas allwyn and kalvinater. But post liberalization much foreign company have entered into
Indian market dethroning the Indian player and dominating Indian market the major
categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING
MACHINE

India being the second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG the
two Korean companies has been maintaining the lead in the industries with LG being leader
in almost all the categories.

The rural market is growing faster than the urban market, although the penetration level is
much lower .The CTV segment is expected to the largest contributing segment to the overall
growth the industry. The rising income levels double-income families and consumer
awareness are the main growth drivers of the industries.

Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs 500
crore in India this year in research and development, brand-building and other marketing
initiatives.

The company, having a turnover of Rs 10700 crore and market share of 26 per cent, is
investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140
crore on research and development, besides launching new platforms in information
technology and related areas,

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LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be expanded
from the existing 22 to 40 cities by next month,

The campaign, for which IT infrastructure has been set up, includes the company’s response
to customer complaint within two hours. The fixing time for complaints varies from one hour
to a maximum of 24 hours.

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Scope of project

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

My job include while visiting the shops

1. Calculate the display share of the LG product in every shop which comes under Pune
region.
2. Collect the data of actual monthly sale of the LG product in every shop.
3. Check the availability of LG catalogue and the POPs in the store.
4. Find out the problems that the dealer are facing while sailing the LG product.
5. Find out the costumer response for the LG product by asking the owner of the shop.
6. Find out the distributer name from whom they purchasing their product and also
weather they have direct dealership and which brand.
7. Check that demo calls are attended or not

Key findings:-

1. By calculating the display share we found that in most of store LG has 50% display
share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of the
store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not
and it also helps to find out the new dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there was big problem of after
sale service.
5. Many dealers were facing the problem of after sale service because there is no follow
up calls from LG.
6. Demo calls also not done properly.

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 INTRODUCTION

Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign
players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.
Today, these players control the major share of the consumer durables market.

Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing

very fast because of rise in living standards, easy access to consumer finance, and wide
range of choice, as many foreign players are entering in the market

With the increase in income levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for consumer durables has
increased significantly. Products like washing machines, air conditioners, microwave
ovens, color televisions (CTVs) are no longer considered luxury items. However, there
are still very few players in categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the emergence of MNCs, exchange offers,

discounts, and intense competition. The market share of MNCs in consumer durables
sector is 65%. MNC's major target is the growing middle class of India. MNCs offer
superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of the local
market, their well-acknowledged brands, and hold over wide distribution network.
However, the penetration level of the consumer durables is still low in India.

Classification of consumer durables sector

1. Consumer electronic include vcd/dvd, home theatre, music player, color television
(CTVs), cameras, camcorders, portable audio, Hi-Fi, etc
2. White goods include dishwashers, air conditioners, heaters, washing machines,
refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves,
built-in appliances, Tumble dryer, personal care product etc.
3. Moulded luggage include plastics

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 4. Clocks and watches
5. Mobile phones

Scope

1. In term of purchasing power parity (ppp), India is the 4th largest economy in the
world and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on 2010
3. India has the youngest population amongst the major countries. There are lot of
people in the different income categories nearly the two third population is below the
age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a
year. And there are 6 million rich household in India.
5. The upper-middle and high-income household in urban areas are expected to grew to
38.2 million in 2007 as against 14.6 million in 2010.

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

Higher import duties on row materials.

Cheap imports from Singapore, China and from other Asian countries.

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 Brands in consumer electronic sector

MNCs NATIONAL REGIONAL

LG )

SAMSUNG ) KOREA ONIDA BUSH

HYUNDAI ) VIDEOCON CROWN

BPL SALORA

TCL ) CHINA GODREJ T-SERIES

HAIER ) VOLTAS WESTON

IFB BELTAK

PHILIPS ) HOLLAND OSKAR

PANASONIC )

SHARP )

HITACHI )

SANSUI ) JAPAN

AKAI )

AIWA

WHIRLPOOL )

ELECTROLUX

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TODAY Consumer durables sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share of MNCs in consumer durables
sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior
technology to the

LG, SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.

The company, having a turnover of Rs 10700 crore and market share of 26 per cent, is
investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140
crore on research and development, besides launching new platforms in information
technology and related areas,

LG Electronics is one of the leading companies in the field of electronics with a global
presence in many countries. . Before briefing, I have divided the introduction part into three
main sub parts.

1. LG Global
2. LG India
3. LG Pune

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History of company

The company was originally established in 1958 as Gold Star, producing radios, TVs,
refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the
abbreviation of LG was derived. The current "Life's good" slogan is a 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.

Global Operation

LG Electronics is playing an active role in the world market with its assertive global business
policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around
82,000 executive and employees.

LG Group

1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom

Business areas and main products

Mobile communications

(a) CDMA Handsets,

(b) GSM Handsets,
(c) 3G Handsets,

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 (d) Cellular Phones

Digital appliance

a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators

Digital display

a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors

Digital media

a) Home Theater Systems,

b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CD±RW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
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 VISION

Global Top 3 by 2010

Global Top 3 Electronic/Telecommunication company

GROWTH STRATEGY

“Fast innovation, Fast growth”

CORE COMPETENCY

“Product leadership, Market leadership, People leadership”

CORPORATE CULTURE

No excuse, “we” not “I”, Fun workplace

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 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.

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 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 LG’s 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 LG’s commitment to
deliver the best.

The circle symbolizes The Globe. The stylized image of a smiling face in the symbol
conveys “Friendliness and Approachability”. The one eye on the symbol represents “Goal-
oriented, Focused & Confident”.

The slogan of LG is “Life’s Good”. It expresses “Brand’s Value, Promises, Benefits,

Personality.

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 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 value-creation relationship whereby both
parties endeavor to address mutual problems and create new values together.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying business opportunities

through various associative relationships with some of the world's leading companies.

LG Electronics is striving to become number one in the world by mingling in various

business and technological 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

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 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 customer’s 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

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The Brands core Value that never changes.

a. Trust,
b. Innovation,
c. People
d. Passion

The benefits that are consistently delivered to the customer includes

Reliable products

Simple design

Ease of use

Extraordinary Experience

Personality describes the human characteristic that are expressed to the customer through

Trustworthy, Considerate

Practical, Friendly

The Internal Culture of LG:

LG practices four cultures

1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth

According to LG, the Learning Culture continuously helps the employee to learn more and
more to develop the habit of continuous learning.

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Boundary less Environment means that there is no difference between the levels of
employees. There is transparency between the work and mutual understanding between all the
employees.

A carrier is highly growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a new comer the
company is very helpful in the overall growth of personality.

Growth in LG is very high for those who are in the company and for those who want to join
in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of
the examples of growth.

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Mission

The mission of LG is to provide the customers with utmost satisfaction through leadership.

The fundamental policy of development is to secure product leadership that the

Customers may have the utmost satisfaction.

Product Leadership

We are focusing on six development areas to become the product leader.

1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving

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 Quality Innovation

The policy of quality assurance is to provide customers with utmost satisfaction by supplying
zero defects.

LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed through fair
management practices and constantly developing our business skill.

A) Honest with our customer

b) Providing great values to customer through constant innovation & and development.

c) Equal opportunities
d) Equal Treatment

Management Principle - Creating value for customer

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 Code of conduct of LG:

1. Responsibility and obligations to customers :

• Respect for Customers

• Creating Value
• Providing Value

2 Fair competition

• Pursuit of Free Competition

• Compliance with Laws and Regulations

3 Fair Transaction :

• Equal Opportunity

• Fair Transaction Procedure

• Support and Aid for Business Partners

4 Basic Ethics for Employees

• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest

5 Corporate Responsibilities to employees

• Respect for human dignity

• Fair Treatment
• Promoting Creativity

6 Responsibilities to society and country

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• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation

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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 shoppes and 38 are exclusive stores.
Brand shoppes will be placed in the premium segment and the target audience will comprise
buyers interested in premium and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more
interactive environment and additional lifestyle orientation on display so that the customer
can actually experience the LG products in his or her own home settings.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is
planning a brand new image. To attract inspirational and young consumers across India,
company will roll out a new marketing strategy. The exercise will cost the company Rs 360
crore.

LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today.

LG Electronics is continually providing, superior technology products & value for money to
more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this
year.

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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 televisions, air conditioners and other household
goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per
Shin's estimate, the sales in 2008 would be around 110 billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on catering to the
high-end consumer market which will help boost sales this year. India churns out six (6) per
cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40
countries.

India challenges

The challenges faced by LG when entered in Indian market

1. Low brand awareness about LG in India.

2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).
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

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 1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring the 1999
world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its products. LG
invested more then US$ 8 million on advertising and marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTV has
“Golden eye technology” Air conditioner has “Health air system” and microwave
ovens have the “Health wave system”.

Local and efficient manufacturing to reduce the cost

To overcome high import duties LG manufactures TV refrigerator in India at manufacturing

facility at Noida and Pune. LGEI had already commissioned contract manufacturing at
Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce cost.

LGEI implementing the “Digital manufacturing system” (DMS) as the cost cutting innovation
this system is follow-up to the six sigma exercise LGEI had initiate earlier.

R&D potential

LG has the research and development facilities in Bangalore and Pune. Both the unit carry out
R&D department for the domestic as well as the parent company it also dose customize R&D
for the specific countries to which it export product.

Regional channel and wide distribution network

1. LG has adopted the regional distribution channel in India. All the distributers work
directly with the company. This has resulted in quicker rotation of the stock and better
penetration into B, C, D, class market.
2. LG also follows the stock rotation policy rather then dumping stock on channel
partners.

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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

MAJOR KEY SUCCESS FACTORS

1. Innovative marketing - LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup and followed it up in 2003 as well.
2. Local and efficient manufacturing to reduce cost - To overcome high import duties,
LG manufactures PC monitors and refrigerators in India at its manufacturing facility
at Noida, Delhi.
3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.
4. Product localization - Product localization is a key strategy used by LG. It came out
with Hindi and regional language menus on its TV.
5. Regional distribution model - This has resulted in quicker rotation of stocks and better
penetration into the B, C and D class markets.
6. Leveraging India’s IT advantage - LG Electronics has awarded a contract to develop
IT solutions to LG Soft India (LGSI). The project involves development and support
for ERP, SCM, CRM and IT-enabled services for LG.

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 Strategies adopted by the organization

LG follows 10 commandments which are as follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success
3. Transparent and fast communication-open communication
4. Update market -knowledge –Demographics
5. Win –Win relationship with the trade partners
6. Customer is the king
7. Even Billing –Road to ach supplier A
8. Be in touch with the market (70% Market, 30% Office).
9. Plan and Execute annual marketing Calendar-Time to market
10. Display share of 50% -to get 50% consumer share.

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LG market share of consumer appliances and consumer electronic:-

LG position of CTV in various states in India

LG position of REF in various states in India

LG position of WM in various states in India

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LG position of AC in various States in India

29
LG position of Audio & Home Theater in various in India

LG position of DVD in various in India

30
LG position of MWO in various states in India

This analysis is based on the ORG survey conducted by LG which represent the LG
position of different consumer durables in various states in India. I select different brand in
different category as per the market share and the demand of product in market. This analysis
represents the LG market position during the period of March 2009. It shows that LG has
captured maximum market share almost in every category. LG and Samsung have the
maximum market in consumer durable market but LG dominate the almost all the category in
consumer durable.

Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale
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.

31
LG Electronics, informed that its sales of GSM mobile phones, color televisions, air
conditioners and other household goods in the Indian market was to the tune of 95 billion
rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110
billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on catering to the
high-end consumer market which will help boost sales this year. India churns out six (6) per
cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40
countries. Shin remarked that the company was targeting an increase of exports to $300
million in 2008 from $230 million in 2007.

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 LG PUNE

LG Pune is the branch office of LGEIL. It is located in J.M Road.

In 2004 LGEIL opened second factory which is located in Ranjangaon. This plant
manufactures all product including DVD writers and GSM mobiles. Thus it became first
company to manufacture DVD writer in India. The ODP plant aims to reach a manpower base
of 1500 people and an investment of Rs 300 crore till 2010.

LG India will become the export hub for LG Worldwide, catering to the Middle East and
African markets. The company aims to touch an export turnover of $3 billion by 2010 from
India, which will contribute to 30 per cent of the Indian arm's turnover.

Pune, India, October 6, 2004 -- LGE announced 3 growth strategies aimed at the 1.1 billion
people of India making the Indian market the second largest global production base following
China. Under this strategy LGE has projected 2007 revenues in India will exceed US$10
billion, 10 times that of 2004.

The three strategies for the Indian market that the global electronics giant disclosed.
included: penetrates the south-western market of India through the new Pune plant near
Mumbai, the second largest city in India, in addition to the existing northern plant; installs a
new GSM handset production line in the new Pune plant and uses it as its second-largest
global GSM handset production line after the Qingdao plant in China; and expands the
current 750 R&D staff in India to 1,500 by 2007, striving to develop premium products and
export 30% of India-manufactured products to Asia, Middle East and Africa markets by
2007.

LG Electronics’ second new plant in Pune, India covers a total area of 211,200 square meters
and is currently equipped with a production line to manufacture 600,000 TVs and one million
refrigerators a year. The company is set to add production lines of air conditioners, washing
machines, monitors, and electronic ovens, by 2005.

33
Also, LG Electronics is poised to install a GSM handset production line in the new Pune plant
by early next year. The Pune GSM handset line envisages a capacity of manufacturing 2
million handsets annually, and the company expands it to become a global GSM handset
production base with a capacity of an annual 10 million units by 2010.

In connection with its three growth strategies for the Indian market, LG Electronics will
invest a total of US$150 million in establishing facilities and boosting R&D efforts in India
by 2007. Specifically, it will invest US$53 million in the Pune second plant, another US$43
million in establishing the GSM line, and US$54 million in securing R&D manpower and
boosting other efforts. Through these strategies, LG Electronics aims to penetrate the global
market by using China and India as its core production bases, while operating its plants in
Changwon and Gumi, Korea, as its main production bases. This way, the company is pushing
to penetrate the global home appliance market.

The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of
the domestic markets. LG plans to upscale its operations to a figure of 2.5 lakh units a year in
the near future. The Pune plant in addition to its current manufacturing facility at Greater
Noida will enable the company to enhance its consumer reach and reiterate it’s commitment
towards providing superior technology products to the India consumer.

The key strategies being implemented include increasing the number of its regional offices
from six to eight. LG has split its southern regional office into two, one comprising the states
of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. In
addition, it has split one of its northern regional offices by making Uttar Pradesh a separate
region after spinning it out from Delhi NCR. The other four regional offices take care of East,
Gujarat and Madhya Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan
respectively.

In the coming year, LG is also repositioning its marketing spends, resulting in a significant
increase in its mass media expenditure for better brand visibility. LG had a marketing budget
of Rs 320 crore in 2007 with a 60:40 split in favor of below-the-line activities. Next year, the
company plans to increase the share of mass media even as overall marketing spends would
be raised by just about 10-15%.

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LG Pune is the branch office of LGEIL.It is located in J.M Road.

The organization structure is –one branch manager, one chief accountant, and area sales
manager of CE, HA separate for GSM, Marketing manager for CE, HA and separate for
GSM.The Pune branch has warehouse at wagoli.

B.M

A c c ou nt S R .B S I

ASI

M . G I. T.Z .ML .H .D A .M C A C A .M A CA M M . AT M G S MB S I G S MB S I G S M

AM

D PT

35
Distribution and Marketing

The company has number of dealers and warehouses. They have LG exclusive shopee. For
the marketing of the products a number of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the attention of the
costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meting at several time in the year
7. LG divide dealer in gold silver etc. category to know the performance of the
dealers.
8. They have their sales persons at various sub dealer store and at mordent trade
store for particularly for the promotion of the LG product.
9. LG also uses the radio FM for the promotion activities.
10. Also provide capon and scratch card for festive season.

The logistics (Supply Chain Management)

Visit to warehouse of LG Pune at Wagoli

Logistics is the art and science of managing and controlling the flow of goods, energy,
information, and other resources like products, services, and people, from the source of
production to the marketplace. It is difficult to accomplish any marketing or manufacturing
without logistical support. It involves the integration of information, transportation,
inventory, warehousing, material handling, and packaging. The operating responsibility of
logistics is the geographical repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible.

Logistics Management is that part of the supply chain, which plans, implements and controls
the efficient, effective forward and reverse flow and storage of goods, services and related

36
information between the point of origin and the point of consumption in order to meet
customers' requirements.

37
R’s of Logistic followed by LG:

1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling

LG Pune Distribution

LG Pune comes under the western Distribution Region. This region has following

1. Pune
2. Kolapur
3. Sholapur

4 Satara
5 Sangli

The LG Factory is located at NOIDA & PUNE. There are three types of Warehouse-

1. Mother Warehouse

2. Branch Warehouse

3. Spare part warehouse

The mother warehouse is that where the products from the factory are kept and from that
warehouse, the products are sent to the branch warehouse.

A warehouse is a commercial building for storage of goods. Warehouses are used by

manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial areas of cities and towns. They come equipped with
loading docks to load and unload trucks; or sometimes are loaded directly from railways,
airports, or seaports. They also often have cranes and forklifts for moving goods, which are
usually placed on ISO standard pallets loaded into pallet racks.

38
The Pune warehouse is located near Wagoli. It is 13670 sq. feet in area.

In warehouse 7 locations is set up for the product

Loc 1, Loc 2, Loc 3, Loc 4 , Loc 5 ,Loc6, Loc 7

Loc 1 – selling

Loc 2 - second sale

Loc 3 - insurance claim

Loc 4 - write off material

Loc 5 – destroy the item

Loc 6 - court case material

Loc 7 - for repair

5’s of warehouse, which the LG strictly follow.

1. Sweeping
2. Sorting
3. Systematic Arrangement
4. Simplification
5. Self- discipline

39
In warehouse, the products are pinup with 3-color paper to get the knowledge about the
delivery.

1. Red Card – To stop the product going into market,

2. Green card – To allow the product for delivery in market,
3. Yellow Card – After the product labeled with green, allow this to move in market

Distribution Time:-

• Local delivery – 4 hrs.

• Upcountry delivery - 12 hrs.
• Within 200 km. – 24 hrs.
• Beyond 200 km. – 48 hrs.

The above distribution time is the time of delivery of products from warehouse to the market
place, which the logistic department follows to fulfill the demand in the market at right time.
In LG, we have the following process, which is followed in logistic through ERP.

• Order Processing
• Invoicing
• Indenting
• Report

Order Processing booking for dealers /distributors

Invoicing after billing process/bill generation

Indenting requirement (Pdt Unit to branch unit)

Report distributed to all

In warehouse, there are two mode of dispersion of product from one place to another within.
a) Hydraulic b) Manual

In addition, there are 35 fire extinguishers to prevent the accidental hazard within the
warehouse due to fire. These fire extinguishers are valid up to year 2011. One has to follow
the rule of “NO Smoking” within the warehouse

40
Logistics Ten Commandments – Golden Rules

1 - Warehouse 5S – to be strictly followed – FG – 2, 5 & 7 to be properly maintained.

2 - 100% Bar-coding for all inward & outward transaction.

3 - Follow standard pick – ship process religiously.

4 – No inventory mismatch, shortage or excess – monthly 100% physical stocktaking.

5 – Nil 30+ for FG – 2, 3 & 5.

6 – Nil transit damage.

7 – File insurance claim within 2 days. Settle all claim all within 30 days.

8 – No inter – branch transfer without HO clearance.

9 – PSI feeding into system by 25th of every month. Ensure 90% accuracy.

10 – Apply physical FMFO.

41
 Problem

1- In transit material damage checking.

2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply

Equipments

1- 100% Bar code scanner.

2- ERP – Invoice Generation Process.
3- Hydraulic Trolleys for material movement.
4- Pallets for safety of material.

42
 WAREHOUSE WITH THE EQUIPMENT.

WAREHOUSE: REFRIGERATOR AND CTV SECTION

43
 CUSTOMER SERVICE

The best and the biggest international brands are here in India –but the irony if it all: where is
the after-sales-service? So integral to a brand, so critical for its success and so taken for
granted in developed markets! In India, after sales service is, for want of a better description,
the pits. So what’s stopping the best companies from pulling out all the stops when it comes
to providing the best service? Do customers expect for too much? Or is it that in India they
don’t really care. Brand Equity fanned out to MNC as well as Indian consumer durable
companies, stockiest and dealers, analysts and market researchers to get a feel of what’s
really keeping after sales from being used as a cutting edge marketing tool in pushing
products across categories.

Customers support following the purchase of a product or service. In some cases, after-sales
service can be almost as important as the initial purchase. The manufacturer, retailer, or
service provider determines what is included in any warranty (or guarantee) package. This
will include the duration of the warranty traditionally one year from the date of purchase, but
increasingly two or more year’s maintenance and/or replacement policy, items
included/excluded, labor costs, and speed of response. In the case of a service provider, after-
sales service might include additional training or helpdesk availability. Of equal importance is
the customer's perception of the degree of willingness with which a supplier deals with a
question or complaint, speed of response, and action taken.

LG also had a big problem of after sale service in India. During my project I also came to
know that after sale service becomes the big issue in Pune region. Customers as well as dealer
were facing the problem of after sale service. Because of this problem many dealer in Pune
region were not ready to sale LG product. So it becomes the big issue.

But LG has taken some solid steps towards improving customer’s perception and experience
of after sales service. Because it very important in competitive market to provide the best
service.

44
L G Electronics has signed a memorandum of understanding with 23 Industrial Training
Institutes to strengthen its after sales service in India.

The company aims to recruit 10,000 people by the end of this year as a part of its branding
strategy to focus on service and move away from discounting.

L G Electronics has identified eight states with high after sales service call rates to ink the
deals with the ITI. Y V Verma, director HR and management system, LG Electronics said,
"The Company was trying to find a solution for effective after sales service since last two
years. There is a huge need of trained manpower for the after sales service to align with the
company's expansion and focus on the GSM mobiles and the personal computer segments."

In the initial phase the company has entered into agreements with ITIs in the states like
Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of
signing with Uttar Pradesh.

1. L G Electronics, with 1200 service centers, has already recruited 300 students and
plans to beef up the number to 10,000 by the year-end.
2. "The company has offered a scholarship to the selected students for the last six
months of their training programme,"
3. The company will invest Rs 8 crore (Rs 80 million) in employee development
programme this year with an aim to attain a 8 per cent attrition rate.
4. The company moved away from the discounting strategy since last year and is putting
thrust on the quality and service in its brand communication to position LG as a
premium consumer electronics brand.
5. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in
Dermot’s public interview in ET on Wednesday). This shows commitment that
Service must be made into a marketing differentiator, and leveraged thus.
6. LG has the widest service network across the country; some estimates put it at a
significant multiple of service-infrastructure from our nearest competitor. While the
sale size may also be a nice multiple from nearest, it shows the company is ready to
put our money where our mouth is.
7. The company has introduced a 211 service - once you register your complaint, we will
call you back in 2 hours (hence 2), set up an appointment for the next convenient day
for you (hence the first 1), and show up in the promised 1-hour slot (hence the second

45
 1). If the next convenient day for you is the next day, that’s great too. It’s a disruptive
action in an industry (including LG) having traditionally shied away from its service
responsibilities, and thus not leveraging any mileage from it.
8. The company is promoting 211 through ATL, probably the first time after-sales
service is being communicated in this fashion by any product company. You may
have seen the TV commercial or heard the radio advert or seen the newspaper ad or
in-shop posters, both of which revolve around prompt response.
9. The first LG-owned service centre opened in Gurgaon. (Service in India generally
works through authorized service centers, in LG’s case they work exclusively for LG.)
A company-owned service centre tries that much harder, knows things better, and can
even contribute as a revenue center.

46
CONSUMER SURVEY DURING EXHIBITION

From 16th to 25th May a consumer exhibition was organized at the college of Engineering
ground. The exhibition was sponsored by Sakal group in which number of companies
participated.

47
 Objective of the project

Primary objective

 The main objective of filed survey during the project was to find out the market share
of the LG and also calculate the display share.
 Find out the positional dealer who can sale the LG product in large volume.
 The main objective of research was to identify potential dealer and development these
dealer. So LG can make them their direct dealer.
 This will ease the dependence on the some big dealer like Maharashtra and Mahaveer
electronics.
 Find out the problem faced by the dealer in sales and the distribution.

Secondary objective

 The Objective was to find out that how far the exhibitions are helpful in branding,
 While purchasing the consumer durables which parameter is most important for the
consumer?
 Do the consumers prefer the financial facility for buying consumer durable?
 How frequently consumers change the consumer durable?
 To enhances the knowledge of consumer durable market.
 To increases the knowledge consumer durable product of LG.
 To enhances the knowledge about the marketing and branding activity.

48
 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
buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A research
design specifies the methods and procedures for conducting a particular study. According to
Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation
conceived as to obtain answers to research questions and to control variance.

Types of research is:

• Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are undertaken in
many circumstances when the researches is interested to know the characteristic of certain
group such as age, sex, education level, occupation or income. A descriptive study may be
necessary in cases when a researcher is interested in knowing the proportion of people in a
given population who have in particular manner, making projections of a certain thing, or
determining the relationship between two or more variables. The objective of such study is to
answer the “who, what, when, where and how” of the subject under investigation. There is a
general feeling that descriptive studies are factual and very simple. This is not necessarily

49
true. Descriptive study can be complex, demanding a high degree of scientific skill on part of
the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher give sufficient thought
to framing research.

Questions and deciding the types of data to be collected and the procedure to be used in this
purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and
Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from
a given population. Thus, it may deal with household, dealers, retail stores, or other entities.
Data on a number of characteristics from sample elements are collected and analyzed. Cross
sectional studies are of two types: Field study and Survey. Although the distinction between
them is not clear- cut , there are some practical differences, which need different techniques
and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations
and interrelations among variables in a real setting. Such studies are done in live situations
like communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has been taken by me. A major
strength of survey research is its wide scope. Detail information can be obtained from a
sample of large population .Besides; it is economical as more information can be collected
per unit of cost. In addition, it is obvious that a sample survey needs less time than a census
inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of
the major purpose. Descriptive research is description of the state of affairs, as it exists at
present. The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. The methods of
research utilized in descriptive research are survey methods of all kinds including
comparative and co relational methods. The reason for using such needs to be flexile in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed ever now and then.

50
DEALER MANAGEMENT

Mapping of Pune region dealers.

In Pune region there were total 180 dealers including the up country side They have been
divided into three categories on the basis of their turnover and the selling capacity.

 PUNE -1
 PUNE-2
 PUNE-3

PUNE

BRANCH

PUNE 1 PUNE 2 PUNE 3

PUNE-1 Includes the modern trade and they have direct billing from the branch office. They
have high turnover and the company depends heavily on them

PUNE-2 includes the distributors. They have direct billing from the branch office.Their
turnover is also high.

PUNE-3 Includes the sub dealers .They have direct billing from distributors or from the
branch office. Their turnover is not so high, but there are few sub dealers whose potential is
quite high. According to sales the branch has designated as gold and silver sub dealers.

51
OBJECTIVE OF THE STUDY

The objective was to find out the market share of LG products, advantages, and
disadvantages of LG products from dealers and to find out what problems they are facing
with the LG products so that problems can be resolved to increase the sale.

PICTURE SHOWING THE PRODUCT OF LG IN ONE OF THE SHOP

52
Data collection methods:

After the research problem, we have to identify and select which type of data is to research.
At this stage; we have to organize a field survey to collect the data. One of the important tools
for conducting market research is the availability of necessary and useful data.

Primary data: For primary data collection, we have to plan the following four important
aspects.

 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature studies are
important sources of secondary data.
 Data analysis and interpretation

1. Questionnaires
2. Pie chart and Bar chart

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question that
the researcher wishes to ask his respondents which is always guided by the objective of the
survey.

Pie chart:

This is very useful diagram to represent data , which are divided into a number of categories.
This diagram consists of a circle of divided into a number of sectors, which are proportional
to the values they represent. The total value is represented by the full create. The diagram bar
chart can make comparison among the various components or between a part and a whole of
data.

Bar chart:

53
This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value they represent.

Preparation of report:

The report was based on the analysis and presented with the findings and suggestions. The
sample of the questionnaires is attached with the report itself.

Sampling Methodology:

Details of the sampling methodology, I have made questionnaire. The one is made for the
Customer.

No. of questions in questionnaires for customer: 07

No. of question related to LG product: 03

No. of people met during the research: 200

No. of respondents during the research: 50

Sample unit

Professionals, Business man,

Employees, House wife,

Working women, Students

54
 Analysis:

Q1. Have you purchased any consumer durable during Exhibitions?

 Yes
 No

Inferences

1. 65 % of Customer have not purchased any consumer durable from exhibitions.

2. Only 35 % people have purchased.
3. It shows that consumers are coming in the exhibition for knowledge of product and
also they want to know that weather there is actual price difference in exhibition and
shop or not.
4. Consumer also want to compare to the different brand which are available in the
exhibition.
5. So exhibitions are more useful to increases brand awareness.
6. People are less interested to purchase product from the exhibition.

55
Q.2While purchasing consumer durable which parameter influences you?

 Price
 Product feature
 Brand
 Service
 Durability

Inference

1. 30% of customer gives importance to price. So it shows that Indian consumers are
very price sensitive. They give more importance to price over the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the costumers.
And they are also want best brand in best price.
3. 19% to product feature Service 16% and durability 9% Service is also a big factor for
the customer they are less interested in the durability.

56
Q3. From where you prefer buying consumer durables

 Exhibitions
 Co.shoppee
 Showroom

Inference:

1. A majority of customers prefer to buy from showrooms. Very less proposition of

customers buys from Exhibitions.
2. 47% customers are prefer to by from the showrooms because the showrooms are more
convenient to customers they also think that these shops give more discounts.
3. People are less interested to buy from the exhibition they only visit the exhibition for
price quotation of the product and the comparison of the product.

57
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following
reasons

 Attractive Price
 Service
 Demonstrations
 Offers

Inference

1. Customers buy from showrooms because of the service and convenience. These are
two main factors.
2. Customers are preferred to buy from the showroom because of they think that these
convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can get more
discounts in these showrooms.
4. Price also a factor that attract the customer in these showrooms.

Q.5.Which consumer durable you have and of which brand?

 CTV
 LCD
 PLASMA
 REF
 WM

58
  MW
 AC

Inference

In CTV section maximum customers have Onida, in LCD Sony is the leader, In plasma BPL
is the leader, In Ref LG is the leader, MW LG is the leader. In WM there are companies and
in AC also.

Q.6. How frequently you change your consumer durables?

 1-3 years
 3-5 years
 5-10 years
 More than 10 years

59
INFERENCE

1. Customers prefer to change consumer durables within 5-10 years. In India people do
not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not prefer to change their consumer durable
frequently.

60
Q.7.Do you prefer any financing scheme to purchase consumer durables?

 Yes
 No

INFERENCE

Majority of customers do not prefer any financial scheme.

61
Dealer survey Findings

1. By calculating the display share we found that in most of store LG has 50% display
share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of the
store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not
and it also helps to find out the new dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there was big problem of after
sale service.
5. Many dealers were facing the problem of after sale service because there is no follow
up calls from LG.
6. Demo calls also not done properly.
7. The top competitor of LG product in Pune is SAMSUNG.
8. In Pune area the performance of LG is in better position but the competitor also hold
closer margin.
9. There is high growth of sale in market due to booming in new technology and better
service.
10. Word of mouth plays a vital role in awareness among customer. This is one factor,
which can play a good role in promotion of products as well as demonstration given
by the shopkeeper also plays a vital role for customer.

RECOMMENDATIONS AND SUGGESTIONS

1. LG should improve it’s after sale service because its hits badly LGs market share in
Pune region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at frequent time interval and
feed back should be considered positively.
4. The company should look into the matter of person hiring for in shop demonstration.
A big LG showroom should have at least 2 such kind of person.

62
5. LG should try new dealer who have the potential. So they can target more market.
6. As there is a bottle neck competition between Samsung and LG, it is necessary to take
measure steps to overcome the area of downfall in LG with respect to Samsung.
7. The marketing managers should make better relations with dealers and reputation of
the company.
8. Customer considers quality as their first preference, so the company should give more
stress on this.
9. The switching of customer from LG product to other brand is due to the bed after sell
service in shop.
10. The product is well aware and it is on top of mind of customer. So company should
always improve services and update their technology.

CUSTOMER SURVEY FINDINGS

1. Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes Demonstration,
Exhibition & Even Sponsors.
2. From the survey it was found out that the majority of customers don’t buy consumer
durables from exhibitions. They just visit the exhibitions to see the co. latest model.
3. They want to buy from the showrooms or from co. showrooms. For them service is
important .Beside convenience and other factors service is key factor.
4. Also majority of customers do not want any financing scheme for purchasing the
durables.
5. There was heavy rush on weekends so large numbers of ISD’s were appointed that
day. Also the live demo calls helps in selling. Exchange offers also generate sale.
6. Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.
7. In survey we found that LG has captured maximum market share in every category.
LG dominates CTV, LCD, and Refrigerator, and Washing machine, category.
8. LG and Samsung have bottle neck competition in TV and REF. category.
9. The product is well aware and it is on top of mind of customer.
10. Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.

63
RECOMMENDATIONS AND SUGGESTIONS

1. Exhibitions do not help to generate so much sells but they should be conducted
regularly. This helps in generating awareness regarding the product in customers
which ultimately helps in sales.
2. Also it is helps in advertising for the new products. Like in this exhibition new LCD
SCARLET was advertised. Company should always focus on service.
3. Display share should be increased where there is less than 50% as LG also believes
that “JO DIKHTA HAI WO BIKTA HAI”.
4. Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the company’s profit.
5. Company should concentrate more on its major drivers LCD, IT, and GSM. Branding
and promotions should be done effectively as it creates a long lasting image in the
mind of customers.
6. Company should also cater to the needs of sub dealers as some of the sub dealers have
potential of high sales.

64
 LIMITATIONS

Every study has certain limitations. In my study, also there were certain limitations, which I
could not able to solve.

1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product sale of
different brands, which affected the perception of the customer. This was biggest
drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete my research,
for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was difficult to
make them hold for time.
5. I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
6. The sample size is also very small which represent my research on consumer
behavior

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

65
BIBLIOGRAPHY

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

66
 Consumer survey Questionnaire

Q1. Have you purchased any consumer durable during Exhibitions?

a) Yes
b) No

Q.2While purchasing consumer durable which parameter influences you?

a) Price
b) Product feature
c) Brand
d) Service
e) Durability

Q3. From where you prefer buying consumer durables

a) Exhibitions
b) Co.shoppee
c) Showroom

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

a) Attractive Price
b) Service
c) Demonstrations
d) Offers
e) Convenience

67
Q.5.Which consumer durable you have and of which brand?

a) CTV -------------------
b) LCD -------------------
c) PLASMA -------------------
D) REF -------------------
E) WM -------------------
F) MW -------------------
G) AC -------------------

Q.6. How frequently you change your consumer durables?

a) 1-3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years

Q.7.Do you prefer any financing scheme to purchase consumer durables?

a) Yes
b) No

68
 APPENDIX

A.S.I Area Service In charge

A.S.M Area sales manager

B.S.I Branch Service In charge

CAC Commercial Air Conditioning System

C.S NET Customer Service Net

D.S.C. Direct service centre.

L.H.D Logistics Head of department

R.E.F Refrigerator

69