Professional Documents
Culture Documents
PROJECT REPORT
ON
MARKET ANALYSIS OF LG CONSUMER DURABLES &
DEALER DEVELOPMENT
For
LG Electronic Pune Limited
Submitted By
1
Acknowledgement
gratitude & indebtness to all the people who have been instrumental in making
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
ELECTRONICS INDIA Ltd., which has been nice enough to give me a chance
2
I am grateful for his exceptional support for my study throughout these eight
weeks. I have learned the meaning of marketing and professionalism from this
great personality.
I also thank to
I am also grateful to the Asmita Sawant, RSO, Shop manager, and the
Distributor I worked with. The entire experience has been very encouraging and
will certainly help me stand in good stead throughout my Career in Future.
I also thanks to my project guide Mr. M.K. GANDHI for his guidance during
my project. I also thank to my college director Mr. DIVAKARAN for giving
me chance to get such an experience and giving me chance to get an industrial
experience.
3
DECLARATION
I will take pleasure in declaring that the project work that is undertaken by me is
an original and authentic work done by me. This project is being submitted I
partial fulfillment for award of degree of Post Graduate Diploma in
Management from INDIRA SCHCOOL OF CAREER STUDUES.
tenure at LG Electronics Ltd. at PUNE for two months of training from 2nd of
4
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 9,500 crore and market share of 26 per
cent, is investing Rs 360 crore on brand-building and other marketing initiatives
and around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas,
5
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.
6
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”.
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.
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
Key findings:-
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.
8
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.
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.
9
Classification of consumer durables sector
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.
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Opportunity
3. Rapid urbanization.
Threats
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Brands in consumer electronic sector
PANASONIC )
SHARP )
HITACHI )
SANSUI ) JAPAN
AKAI )
AIWA
WHIRLPOOL )
ELECTROLUX
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 9,500 crore and market share of 26 per
cent, is investing Rs 360 crore on brand-building and other marketing initiatives
and around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas,
12
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
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.
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.
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LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Mobile communications
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
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Digital display
a) Plasma TVs,
b) LCD TVs,
Digital media
b) DVD Recorders,
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VISION
GROWTH STRATEGY
CORE COMPETENCY
CORPORATE CULTURE
16
SLOGAN
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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.
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”.
18
THE PARTNERSHIP
STRATEGIC ALLIANCE
19
LG Electronics will do its best to create new products and services with an
open mind, while developing new technologies and business fields through
various associations with some of the world's most successful companies.
1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10.INTEL
11.NORTEL
12.HITACHI
13.PRADA
14.RENESAS
15.TOSHIBA
16.BESTBUY
20
And the number follows many more…………………………..
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:-
1. Value
2. Promise
3. Benefits
4. Personality
21
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
Reliable products
Simple design
Ease of use
Extraordinary Experience
Trustworthy, Considerate
Practical, Friendly
22
The Internal Culture of LG:
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
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.
Mission
23
The mission of LG is to provide the customers with utmost satisfaction through
leadership.
Product Leadership
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
Quality Innovation
24
The policy of quality assurance is to provide customers with utmost
satisfaction by supplying zero defects.
25
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
26
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.
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.
27
LG Electronics India is the fastest growing company in the
consumer electronics, home appliances, and computer peripherals industry
today.
28
India challenges
The challenges faced by LG when entered in Indian market
29
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.
Product localization:-
30
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
31
Strategies adopted by the organization
32
LG market share of consumer appliances and consumer electronic:-
33
LG position of WM in various states in India
34
LG position of Audio & Home Theater in various in India
35
LG position of MWO in various states in India
36
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.
37
LG PUNE
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.
38
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.
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.
39
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.
40
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
Account SR.BSI
ASI
M.G I.T.Z.M L.H.D A.M CAC A.M AC AM M.T AMGSM BSI GSM BSI GSM
AM
DPT
41
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
42
The logistics (Supply Chain Management)
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.
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
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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
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.
44
The Pune warehouse is located near Wagoli. It is 13670 sq. feet
in area.
Loc 1 – selling
1. Sweeping
2. Sorting
3. Systematic Arrangement
4. Simplification
5. Self- discipline
45
In warehouse, the products are pinup with 3-color paper to get the
knowledge about the delivery.
• Order Processing
• Invoicing
• Indenting
• Report
Order Processing booking for dealers /distributors
46
In warehouse, there are two mode of dispersion of product from one place to
another within. a) Hydraulic b) Manual
7 – File insurance claim within 2 days. Settle all claim all within 30 days.
9 – PSI feeding into system by 25th of every month. Ensure 90% accuracy.
47
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply
Equipments
48
WAREHOUSE WITH THE EQUIPMENT.
49
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.
50
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.
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."
51
1. In the initial phase the company has entered into agreements with ITIs in
the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and
Karnataka and is in the last leg of signing with Uttar Pradesh.
3. "The company has offered a scholarship to the selected students for the
last six months of their training programme,"
5. The company moved away from the discounting strategy since last year
and is putting thrust on the quality and service in its brand communication
to position LG as a premium consumer electronics brand.
6. 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.
7. LG has the widest service network across the country; some estimates put
it at a significant multiple of service-infrastructure from our nearest
competitor. While the sale size may also be a nice multiple from nearest,
it shows the company is ready to put our money where our mouth is.
52
8. The company has introduced a 211 service - once you register your
complaint, we will call you back in 2 hours (hence 2), set up an
appointment for the next convenient day for you (hence the first 1), and
show up in the promised 1-hour slot (hence the second 1). If the next
convenient day for you is the next day, 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.
9. The company is promoting 211 through ATL, probably the first time after-
sales service is being communicated in this fashion by any product
company. You may have seen the TV commercial or heard the radio
advert or seen the newspaper ad or in-shop posters, both of which revolve
around prompt response.
10. The first LG-owned service centre opened in Gurgaon. (Service in India
generally works through authorized service centers, in 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.
53
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.
54
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.
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,
55
To enhances the knowledge about the marketing and branding
activity.
Research Methodology:
Research methodology is considered as the nerve of the project. Without a
proper well-organized research plan, it is impossible to 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.
Research design:
56
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 true. Descriptive study can be complex,
demanding a high degree of scientific skill on part of the researcher.
57
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
58
in contrast tends to be rigid and its approach cannot be changed ever
now and then.
DEALER MANAGEMENT
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 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
59
dealers whose potential is quite high. According to sales the branch
has designated as gold and silver sub dealers.
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.
60
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.
61
Bar chart:
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:
Sample unit
62
Analysis:
Yes
No
Inferences
4. Consumer also want to compare to the different brand which are available
in the exhibition.
63
Q.2While purchasing consumer durable which parameter influences you?
Price
Product feature
Brand
Service
Durability
Inference
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.
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Q3. From where you prefer buying consumer durables
Exhibitions
Co.shoppee
Showroom
Inference:
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.
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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
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.
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Q.5.Which consumer durable you have and of which brand?
CTV
LCD
PLASMA
REF
WM
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.
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Q.6. How frequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
INFERENCE
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Q.7.Do you prefer any financing scheme to purchase consumer durables?
Yes
No
INFERENCE
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Dealer survey Findings
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.
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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.
1. LG should improve it’s after sale service because its hits badly LGs
market share in Pune region.
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CUSTOMER SURVEY FINDINGS
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.
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.
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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.
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.
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.
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LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
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My study is not recognizable in whole INDIA as well as outside
Ranchi due to the above limitations and less area coverage.
BIBLIOGRAPHY
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
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Consumer survey Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions?
a) Yes
b) No
a) Price
b) Product feature
c) Brand
d) Service
e) Durability
a) Exhibitions
b) Co.shoppee
c) Showroom
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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
a) CTV -------------------
b) LCD -------------------
c) PLASMA -------------------
D) REF -------------------
E) WM -------------------
F) MW -------------------
G) AC -------------------
a) 1-3 years
b) 3-5 years
c) 5-10 years
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Q.7.Do you prefer any financing scheme to purchase consumer durables?
a) Yes
b) No
APPENDIX
A.S.I Area Service In charge
R.E.F Refrigerator
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