Guided by Mr. Prakash Chandra Dash Senior Faculty (Marketing)

Submitted By Abhiram Prasad Satapathy Regd. No. 0706275046

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 (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. Similarly while doing the topic “Market Survey on LG consumer durables as a dissertation 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 dissertation project providing me wonderful support through out my training period and afterward.

Abhiram Prasad Satapathy Regd. No. 0706275046


Prakash Chandra Dash B.I.M.I.T, Bhubaneswar

This is to certify that Abhiram Prasad Satapathy, a student of Bhubaneswar Institute of Management and Information Technology, Bhubaneswar pursuing his MBA (Marketing) has worked under my guidance and supervision on his Work entitled “Market Survey on LG consumer durables”. To the best of my knowledge this is an original piece of work.

(Prakash Chandra Dash) Faculty Marketing


I will take pleasure in declaring that the dissertation project work that is undertaken by me is an original and authentic work done by me. This dissertation project is being submitted by me for the partial fulfillment for award of Master in Business Administration from Bhubaneswar Institute of Management & Information Technology under BPUT.

Abhiram Prasad Satapathy Regd. No. 0706275046


brand-building and other marketing initiatives. The company. will also be expanded from the existing 22 to 40 cities by next month. Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs 500 crore in India this year in research and development. SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development. 5 . LG’s innovative ‘211 campaign’ to provide quality after-sales service. for which IT infrastructure has been set up. includes the company’s response to customer complaint within two hours.500 crore and market share of 26 per cent.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. REFRIGRATOR. The campaign. The rural market is growing faster than the urban market. besides launching new platforms in information technology and related areas.Executive summary Indian Consumer durables market used to be dominated by few domestic players like godrej Voltas allwyn and kalvinater. having a turnover of Rs 9. 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. although the penetration level is much lower . 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. The fixing time for complaints varies from one hour to a maximum of 24 hours.

My job was during this project to see the market share and also the display share of the LG product in the store. 2. Key findings:1. 3. Many dealers were facing the problem of after sale service because there is no follow up calls from LG. 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. This project helps me to know the market practically. 4. LG always insist the 50% display share of LG product because LG believes that “JO DIKHTA HAI WO BIKTA HAI”. During this project I also took part in the exhibition of LG which held for the purpose branding and awareness of LG product.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. 6 . Demo calls also not done properly. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 6. 5. By calculating the display share we found that in most of store LG has 50% display share almost all categories. We also came to know while visiting the shops that there was big problem of after sale service.

and hold over wide distribution network. Products like washing machines. Allwyn. easy access to consumer finance. easy availability of finance. after the liberalization. the demand for consumer durables has increased significantly. and dishwashers Consumer durables sector is characterized by the emergence of MNCs. Godrej. as many foreign players are entering in the market With the increase in income levels. However. discounts. color televisions (CTVs) are no longer considered luxury items. microwave ovens. Samsung. only a few companies like Kelvinator. air conditioners. Today. accounting for no less than 90% of the market. and Voltas were the major players in the consumer durables market. these players control the major share of the consumer durables market. portable audio. the penetration level of the consumer durables is still low in India. Hi-Fi. Consumer durables market is expected to grow at 10-15% in 2007-2008. home theatre. and wide range of choice. Sony. their well-acknowledged brands. exchange offers. color television (CTVs). and intense competition. there are still very few players in categories like vacuum cleaners. MNC's major target is the growing middle class of India. Then. and Aiwa came into the picture. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market. The market share of MNCs in consumer durables sector is 65%. camcorders. Whirlpool. Daewoo. However. Consumer electronic include vcd/dvd. increase in consumer awareness. and introduction of new models. foreign players like LG. etc 7 .INTRODUCTION Before the liberalization of the Indian economy. music player. It is growing very fast because of rise in living standards. Classification of consumer durables sector 1. cameras.

e. built-in appliances. Indian consumer durable market is expected to reach $400 billion by on 2010 India has the youngest population amongst the major countries. 4. India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. microwaves. who are earning us$4. washing machines. heaters.2 million in 2007 as against 14. i. 8 . 4. non-kitchen appliances. Mobile phones Scope 1. vacuum cleaners. 3. 5. refrigerators. 5. In term of purchasing power parity (ppp). The upper-middle and high-income household in urban areas are expected to grew to 38. Increase in income level. Unexploited rural market. In India the penetration level of white goods is lower as compared to other developing countries. Tumble dryer. air conditioners. Rapid urbanization. There are 56 million people in middle class. Moulded luggage include plastics 4. And there are 6 million rich household in India. 3. Easy availability of finance. 3. 2. White goods include dishwashers. Clocks and watches 5.800 a year.increase in purchasing power of consumers. 2.6 million in 2000.2.400-US$21. Opportunity 1. kitchen appliances. personal care product etc. 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.

discounts. having a turnover of Rs 9. Brands in consumer electronic sector MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS PANASONIC SHARP HITACHI SANSUI AKAI AIWA WHIRLPOOL ELECTROLUX NATIONAL ) ) ) ) ) ) ) ) ) ) ) ) KOREA CHINA HOLLAND ONIDA VIDEOCON BPL GODREJ VOLTAS IFB REGIONAL BUSH CROWN SALORA T-SERIES WESTON BELTAK OSKAR JAPAN TODAY Consumer durables sector is characterized by the emergence of MNCs.500 crore and market share of 26 per cent. exchange offers. The company. 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.Threats Higher import duties on row materials. Cheap imports from Singapore. China and from other Asian countries. MNC's major target is the growing middle class of India. and intense competition. is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 9 . The market share of MNCs in consumer durables sector is 65%.

from which the abbreviation of LG was derived. Gold Star was renamed LG Electronics. LG Global 2. I have divided the introduction part into three main sub parts. Before briefing. 1. . Before the corporate Name change to LG.140 crore on research and development. and air conditioners. The Gold Star brand is still perceived as a discount brand.000 executive and employees. LG Group 10 . while electronic products were sold under the brand name of Gold Star. producing radios. and acquired Zenith Electronics of the United States. besides launching new platforms in information technology and related areas. Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. Lucky and Gold Star. As a result. The current "Life's good" slogan is a backronym. TVs. LG India 3. LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. household products were sold under the Brand name of Lucky. LG Electronics controls 110 local subsidiaries in the world with around 82. LG Pune History of company The company was originally established in 1958 as Gold Star. refrigerators. washing machines. The LG Group was a merger of two Korean companies. In 1995.

Philips LCD LG Chemical LG Telecom LG Powercom LG Twins LG Dacom Business areas and main products Mobile communications (a) CDMA Handsets. 4. Micro Display Panel TVs. e) Vacuum Cleaners. Monitors. 3. (c) 3G Handsets. g) Compressors for Air Conditioners and Refrigerators Digital display a) b) Plasma TVs. d) Washing Machines. LG. f) Home Net. 11 c) d) e) . b) Refrigerators. 6. (d) Cellular Phones Digital appliance a) Air Conditioners. c) Microwave Ovens. 2. PDP Modules. (b) GSM Handsets. 5. LCD TVs.1.

i) MP3 Players. e) Notebook PCs. h) PDA Phones. USB Memory. Flat Panel Computer Monitors Digital media a) Home Theater Systems. g) PDAs. j) New Karaoke Systems. f) Desktop PCs.f) g) h) OLED Panels. b) DVD Recorders. k) Car Infotainment LG BRAND IDENTITY:12 . c) Super Multi DVD Rewriters. d) CD±RW.

c. People 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. 4. 2. institutive functionality and exceptional performance. Innovation. The brand platform:The LG brand is composed of four basic elements – 1. b. Considerate Practical. 3. a. Friendly The Internal Culture of LG: LG practices four cultures 13 . Trust.The brand of LG is delightfully smart. Value Promise Benefits Personality The Brands core Value that never changes. d. LG strives to enhance the customer’s life and lifestyle with intelligent features.

The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. There is transparency between the work and mutual understanding between all the employees. Boundary less Environment means that there is no difference between the levels of employees.1. Mission The mission of LG is to provide the customers with utmost satisfaction through leadership. Product Leadership We are focusing on six development areas to become the product leader. Growth According to LG. 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. A Carrier 4. Learning Culture 2. the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning. Environment Friendly Product 14 . Reliability 3. 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. Conventional Installation 4. 1. Boundary less Environment 3. A carrier is highly growing in LG and one who is the employee can develop their carrier largely. New Machine 2.

LG will succeed through fair management practices and constantly developing our business skill. Energy Saving Quality Innovation The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects. c) Equal opportunities d) Equal Treatment Management Principle . From top to bottom: No. It is named as “LG WAY”. Low Noise & Vibration 6. a) Honest with our customer b) Providing great values to customer through constant innovation & and development.5. LG proceeds in a hierarchal manner.Creating value for customer Code of conduct of LG: 15 .1 LG – is the VISION “Jeong-DO” Management is LG’s unique application to ethics.

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 Fair Transaction : Equal Opportunity • Fair Transaction Procedure • Support and Aid for Business Partners 3 • 4 Basic Ethics for Employees • Basic Ethics • Completion of Duty • Self Development • Fairness in Performance • Avoidance of conflict with company interest 5 • • • Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity 6 Responsibilities to society and country • • • • Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation LG INDIA: 16 .

superior technology products & value for money to more than 50 lakh households in India. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. At present. Ltd. To attract inspirational and young consumers across India. with an investment of Rs 500 Crores.. Air-Conditioners and Microwave Ovens. Kasna Road. LGEIL is celebrating the 11th anniversary this year. consumer durables leader with 27% market share. The exercise will cost the company Rs 360 crore.LG Electronics India Pvt.51. LG corporate office is located at Plot no. home appliances. LG Electronics India Ltd (LGEIL). 17 . ''Company is setting up a chain of exclusive premium showrooms. in 1998. LG has a total of 83 LG stores across the country. of which 45 are shoppes and 38 are exclusive stores. LG set up a state-of-the art manufacturing facility at Greater Noida. company will roll out a new marketing strategy. South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Greater Noida. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. This facility manufactured Color Televisions. Washing Machines. near Delhi. LG Electronics India is the fastest growing company in the consumer electronics. 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 is continually providing. India. is planning a brand new image. and computer peripherals industry today. Udyog Vihar. a wholly owned subsidiary of LG Electronics.

air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2.8 billion rupees for investment purpose in India this year.LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea. Prominent consumer electronic company. we are determined to see LG become one of the top three brands globally. has said that it expects the sale of its products in India to up by 15 per cent in 2008. 3. 2. Motivated by a passion for technology. Moon Bum Shin. One of the last MNCs entered in India (Samsung. Panasonic entered in 1995 in India). Low brand awareness about LG in India. In order to achieve its target. India challenges The challenges faced by LG when entered in Indian market 1. the sales in 2008 would be around 110 billion rupees. Compitition from local market players and other MNCs in consumer durable segment. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. High import duty 4. Price sensitiveness of the Indian consumer 18 . Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. digital video broadcast and biometrics software and support LG Electronics with our expertise. LG Electronics. The Indian branch of LG exports to 40 countries. informed that its sales of GSM mobile phones. We at LGSI focus on niche technology areas such as mobile application development. 5. As per Shin's estimate. The said money will be used to market as well as manufacture new products. color televisions.4 billion) in 2007. a strong work culture and loyalty to the organization. managing director of LG Electronics India has said that the company has earmarked 4. which is originally a South Korean Company with branch in India. LG Electronics Inc.

LG has adopted the regional distribution channel in India. All the distributers work directly with the company. 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. LG has differentiated its product using technology and health benefits. D. CTV has “Golden eye technology” Air conditioner has “Health air system” and microwave ovens have the “Health wave system”. Launch new technologies in consumer electronic and home appliances. Regional channel and wide distribution network 1. 4. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. 2. R&D potential LG has the research and development facilities in Bangalore and Pune. LG also follows the stock rotation policy rather then dumping stock on channel partners. 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. 2. 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. This has helped LGEI to reduce cost. LG brought in four captains of the Indian cricket team to endorse its products. This has resulted in quicker rotation of the stock and better penetration into B. LG invested more then US$ 8 million on advertising and marketing in this sport. C.LGEI over comes these challenges to emerge as Innovative marketing strategy 1. 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. 19 . class market. 3.

The project involves development and support for ERP. by sponsoring the 1999 World Cup and followed it up in 2003 as well. Product localization is the key strategy used by the LG 2.LG was the first brand to enter cricket in a big way.LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI).To overcome high import duties. 5. association with cricket LG introduce cricket game in CTVs 4. 2. 6. CRM and IT-enabled services for LG. It came out with Hindi and regional language menus on its TV. 4. Delhi. LG was the first brand to introduce gaming in TVs in continuations of its MAJOR KEY SUCCESS FACTORS 1. LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida.Product localization:1. Kolkata and Bhopal for CTVs. Local and efficient manufacturing to reduce cost .This has resulted in quicker rotation of stocks and better penetration into the B. SCM. Innovative marketing . Product localization . 3. C and D class markets. Commissioned contract manufacturing at Mohali. Introduced the low-priced “Cineplus” and “sampooma” for the rural market.Product localization is a key strategy used by LG. Regional distribution model . 3. 20 . Leveraging India’s IT advantage . LG came out with Hindi and regional language menus on its TVs.

9.Strategies adopted by the organization LG follows 10 commandments which are as follows. Transparent and fast communication-open communication 4. Plan and Execute annual marketing Calendar-Time to market 10. Even Billing –Road to ach supplier A 8. Customer is the king 7. Fast execution is key to success 3. Foster working environment-5S Environment 2.Display share of 50% -to get 50% consumer share. LG market share of consumer appliances and consumer electronic:- 21 . 30% Office). 1. Win –Win relationship with the trade partners 6. Update market -knowledge –Demographics 5. Be in touch with the market (70% Market.

LG position of CTV in various states in India LG position of AC in various States in India 22 .

LG position of Audio & Home Theater in various in India LG position of DVD in various in India 23 .

informed that its sales of GSM mobile phones. LG Electronics. I select different brand in different category as per the market share and the demand of product in market. Prominent consumer electronic company. This analysis represents the LG market position during the period of March 2008. managing director of LG Electronics India has said that the company has earmarked 4. has said that it expects the sale of its products in India to up by 15 per cent in 2008.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. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable. LG Electronics Inc. Moon Bum Shin. air conditioners and other household goods in the Indian market was to the tune of 95 billion 24 . The said money will be used to market as well as manufacture new products. color televisions.8 billion rupees for investment purpose in India this year. It shows that LG has captured maximum market share almost in every category.

resulting in a significant increase in its mass media expenditure for better brand visibility. They have LG exclusive shopee. Hoarding. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. 2. Gujarat and Madhya Pradesh. In order to achieve its target. Maharashtra & Goa and Punjab. one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. Discount at festival time. Society and college activities are conducted. Distribution and Marketing The company has number of dealers and warehouses. Next year. it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. banners are used so as to grab the attention of the Day to day advertisement in leading newspaper. In addition. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. 5.The key strategies being implemented include increasing the number of its regional offices from six to eight. 4. 25 costumers. Exhibitions are conducted from time to time. The other four regional offices take care of East.4 billion) in 2007.rupees ($2. Haryana & Rajasthan respectively. The Indian branch of LG exports to 40 countries. LG is also repositioning its marketing spends. Posters. LG had a marketing budget of Rs 320 crore in 2007 with a 60:40 split in favor of below-the-line activities. 3. . the sales in 2008 would be around 110 billion rupees. As per Shin's estimate. the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 10-15%. For the marketing of the products a number of activities are followed 1. In the coming year. LG has split its southern regional office into two. . Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007.

10. LG also had a big problem of after sale service in India. store for particularly for the promotion of the LG product. In the case of a service provider. but increasingly two or more year’s maintenance and/or replacement policy. items included/excluded. and action taken. so critical for its success and so taken for granted in developed markets! In India. for want of a better description. and speed of response. category to know the performance of the They have their sales persons at various sub dealer store and at mordent trade LG also uses the radio FM for the promotion activities. Also provide capon and scratch card for festive season. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint. or service provider determines what is included in any warranty (or guarantee) package. Brand Equity fanned out to MNC as well as Indian consumer durable companies. Customers as well as 26 . 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. During my project I also came to know that after sale service becomes the big issue in Pune region.6. after sales service is. labor costs. aftersales service can be almost as important as the initial purchase. For dealer relationship they arrange dealer meting at several time in the year LG divide dealer in gold silver etc. Customers support following the purchase of a product or service. 9. dealers. The manufacturer. 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. the pits. 8. 7. speed of response. This will include the duration of the warranty traditionally one year from the date of purchase. retailer. 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. stockiest and dealers. after-sales service might include additional training or helpdesk availability. In some cases.

L G Electronics.000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting." 1.000 by the year-end. director HR and management system. In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra.dealer were facing the problem of after sale service. Y V Verma. Delhi. "The Company was trying to find a solution for effective after sales service since last two years. Gujarat. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. 2. with 1200 service centers. Punjab. "The company has offered a scholarship to the selected students for the last six months of their training programme. 3. 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. has already recruited 300 students and plans to beef up the number to 10. LG Electronics said. Assam. Because of this problem many dealer in Pune region were not ready to sale LG product. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. 27 . So it becomes the big issue. The company aims to recruit 10." 4. 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. Because it very important in competitive market to provide the best service. and Karnataka and is in the last leg of signing with Uttar Pradesh. But LG has taken some solid steps towards improving customer’s perception and experience of after sales service.

(as mentioned in Dermot’s public interview in ET on Wednesday). set up an appointment for the next convenient day for you (hence the first 1). and leveraged thus. 9. It’s a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities.) A company-owned service centre tries that much harder. the Service Division in Korea reports to the Global CMO. 28 . While the sale size may also be a nice multiple from nearest. probably the first time after-sales service is being communicated in this fashion by any product company. and thus not leveraging any mileage from it. 8. The company has introduced a 211 service . that’s great too. knows things better. At the top. The first LG-owned service centre opened in Gurgaon. and show up in the promised 1-hour slot (hence the second 1). both of which revolve around prompt response. This shows commitment that Service must be made into a marketing differentiator. LG has the widest service network across the country. in LG’s case they work exclusively for LG. 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. some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters. and can even contribute as a revenue center.once you register your complaint. If the next convenient day for you is the next day.5. The company is promoting 211 through ATL. 10. it shows the company is ready to put our money where our mouth is. (Service in India generally works through authorized service centers. 7. we will call you back in 2 hours (hence 2). 6.

 To enhances the knowledge about the marketing and branding activity.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.  This will ease the dependence on the some big dealer like Maharashtra and Mahaveer electronics. 29 .  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.  Find out the problem faced by the dealer in sales and the distribution. The main objective of research was to identify potential dealer and development these dealer.   Find out the positional dealer who can sale the LG product in large volume. Secondary objective  The Objective was to find out that how far the exhibitions are helpful in branding. So LG can make them their direct dealer.

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. The main objective of survey was to collect appropriate data. making projections of a certain thing. when. which work as a base for drawing conclusion and getting result. brand loyalty. Therefore. It is an important tool to study buyer’s behavior. A research design specifies the methods and procedures for conducting a particular study. conceptual structure. or determining the relationship between two or more variables. Types of research is: • Descriptive Research The type of research adopted for study is descriptive. it is impossible to complete the project and reach to any conclusion. what. 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. education level. Without a proper well-organized research plan. sex. The project was based on the survey plan. According to Kerlinger. The objective of such study is to answer the “who. and strategy of investigation conceived as to obtain answers to research questions and to control variance. There 30 . research methodology is the way to systematically solve the research problem. occupation or income. consumption pattern.Research Methodology: Research methodology is considered as the nerve of the project. “Research Design is a plan. where and how” of the subject under investigation. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age. and focus market changes. it is the key to the evolution of successful marketing strategies and programmers.

The main characteristic of this method is that the researcher has no control over the variables. it is economical as more information can be collected per unit of cost. Such studies are done in live situations like communities. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. he can only report what has happened or what is happening. which need different techniques and skills. This is not necessarily true. there are some practical differences. A cross sectional study is concerned with a sample of elements from a given population. Cross sectional studies are of two types: Field study and Survey. Descriptive research is description of the state of affairs. The reason for using such 31 . and organizations.cut . retail stores. demanding a high degree of scientific skill on part of the researcher. An exploratory study needs to be flexible in its approach. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. In addition.is a general feeling that descriptive studies are factual and very simple. Thus. Data on a number of characteristics from sample elements are collected and analyzed. Descriptive study can be complex. Another type of cross sectional study is survey result. A major strength of survey research is its wide scope. which has been taken by me. but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. schools.Besides. or other entities. Detail information can be obtained from a sample of large population . factories. as it exists at present. It is therefore necessary. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. dealers. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. it is obvious that a sample survey needs less time than a census inquiry. Although the distinction between them is not clear. it may deal with household. Descriptive studies are well structured. the researcher give sufficient thought to framing research.

32 . One of the important tools for conducting market research is the availability of necessary and useful data. The diagram bar chart can make comparison among the various components or between a part and a whole of data. Pie chart and Bar chart Questionnaires: This is the most popular tool for the data collection. which are divided into a number of categories. Primary data: For primary data collection. we have to organize a field survey to collect the data. which are proportional to the values they represent.  Data analysis and interpretation 1.The Company’s profile.  Sampling  Research Instrument  Secondary Data . we have to identify and select which type of data is to research. This diagram consists of a circle of divided into a number of sectors. we have to plan the following four important aspects. The total value is represented by the full create. At this stage. Pie chart: This is very useful diagram to represent data . A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then.needs to be flexile in its approach. Data collection methods: After the research problem. Questionnaires 2. journals and various literature studies are important sources of secondary data.

of question related to LG product: No. it consist of a number of whispered bar. which originate from a common base line and are equal widths. No.Bar chart: This is another way of representing data graphically. Working women. Employees. As the name implies. I have made questionnaire. House wife. of respondents during the research: Sample unit Professionals. of people met during the research: No. The one is made for the Customer. The sample of the questionnaires is attached with the report itself. The lengths of the bards are proportional to the value they represent. Business man. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. Students 07 03 200 50 33 . of questions in questionnaires for customer: No. Sampling Methodology: Details of the sampling methodology.

Have you purchased any consumer durable during Exhibitions?  Yes  No Inferences 1. 6. People are less interested to purchase product from the exhibition. 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. Only 35 % people have purchased. So exhibitions are more useful to increases brand awareness. Consumer also want to compare to the different brand which are available in the exhibition. 2.Analysis: Q1. 34 . 3. 5. 65 % of Customer have not purchased any consumer durable from exhibitions. 4.

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.Q. 2. They give more importance to price over the brand. And they are also want best brand in best price. 30% of customer gives importance to price. 35 . So it shows that Indian consumers are very price sensitive. 3.2While purchasing consumer durable which parameter influences you?  Price  Product feature  Brand  Service  Durability Inference 1. So price and Brand matter a lots for the costumers. 26% give importance to brand.

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. A majority of customers prefer to buy from showrooms. Very less proposition of customers buys from Exhibitions.shoppee  Showroom Inference: 1. 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. 2. 36 .Q3. From where you prefer buying consumer durables  Exhibitions  Co. 3.

Q. 2. Price also a factor that attract the customer in these showrooms. 3. 37 . 4.3 because of following reasons  Attractive Price  Service  Demonstrations  Offers Inference 1. Customers buy from showrooms because of the service and convenience. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service.You prefer to buy from the same as you have mentioned in Q. These are two main factors.4.

MW LG is the leader. In WM there are companies and in AC also. in LCD Sony is the leader.5. In Ref LG is the leader. In plasma BPL is the leader. 38 .Q.Which consumer durable you have and of which brand?  CTV  LCD  PLASMA  REF  WM  MW  AC Inference In CTV section maximum customers have Onida.

Customers prefer to change consumer durables within 5-10 years.6. 23% customers do not change their consumer durable within 10 year. How frequently you change your consumer durables?  1-3 years  3-5 years  5-10 years  More than 10 years INFERENCE 1. 2. 3. 39 . It represent that Indian consumer do not prefer to change their consumer durable frequently. In India people do not change consumer durable frequently.Q.

Also the live demo calls helps in selling. They just visit the exhibitions to see the co. 2. In survey we found that LG has captured maximum market share in every category. LCD. The secondary support includes Demonstration. 6. category. 8.CUSTOMER SURVEY FINDINGS 1.Beside convenience and other factors service is key factor. Exhibition & Even Sponsors. and Washing machine. latest model. 4. RECOMMENDATIONS AND SUGGESTIONS 40 . They want to buy from the showrooms or from co. category. Secondary supports play an important role in the customers mind and create awareness among the customers. Also majority of customers do not want any financing scheme for purchasing the durables. and Refrigerator. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. 3. For them service is important .Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. LG and Samsung have bottle neck competition in TV and REF. 7. 9. 5. showrooms. LG dominates CTV. 10. The product is well aware and it is on top of mind of customer. There was heavy rush on weekends so large numbers of ISD’s were appointed that day. Exchange offers also generate sale. From the survey it was found out that the majority of customers don’t buy consumer durables from exhibitions.

and GSM. 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. No doubt the company products have technically edge over competitors but in long run it may hamper the company’s profit. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers. Company should always focus on service. IT. Company should also cater to the needs of sub dealers as some of the sub dealers have potential of high sales. 6. Also it is helps in advertising for the new products. Company should try to improve service. Display share should be increased where there is less than 50% as LG also believes that “JO DIKHTA HAI WO BIKTA HAI”. 2. Company should concentrate more on its major drivers LCD. 3. 5. LIMITATIONS 41 .1. Like in this exhibition new LCD SCARLET was advertised. 4.

1. but generally. 3. In my study. I had only found the upper-middle class family to fill up the questionnaire. 6. The research was conducted in a very small area. 5. which I could not able to solve. I had only 60 days to complete my research. My research work period witness the biggest ups and downs in product sale of different brands. This was biggest drawback of my study. 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. 4. also there were certain limitations. for which a full-fledged report was insufficient for me. so it was difficult to make them hold for time. BIBLIOGRAPHY 42 . The customer filled the questionnaire mostly in careless manner. Time factor was also important for me.Every study has certain limitations. 2. an average middle class family was required for the study. which affected the perception of the customer.

 www.com  www.lgindia.com  Business world  Business today  LG magazine  Economics times News paper  Times of India 43 .com  www.google.wikipedia.

Sign up to vote on this title
UsefulNot useful