A Project report On Consumer Behavior regarding Washing Machine

Submitted to Asist,prof : Amrut Rabari Samarth Institute of Management Himmatnagar

Submitted By:Ekta S. Sharma Enrollment No-107530592007 Sem- III

GUJARAT TECHNOLOGICAL UNIVERSITY

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number of persons to whom I shall always remain grateful.

I would also like to thanks all the respondents for giving us their precious time and relevant information and experience, I also thankful to Mr. Amrut Rabari who guided me in my whole project.

1. INTRODUCTION OF LG COMPANY

GENERAL OVERVIEW OF COMPANY

Type Traded as Industry Founded Headquarters Area served

Public KRX: 003550 Conglomerate 1947 Seoul, South Korea Worldwide Koo Bon-Moo (Chairman & CEO) Yu Sig Kang (Vice Chairman & Co-CEO) Juno Cho (EVP & COO) Electronics Chemicals Telecommunications US$ 89.5 billion (2010)[1] US$ 5.8 billion (2010)[2] US$ 62.0 billion (2010)[2] 186,000 (2009) LG Electronics LG Display LG Telecom LG Chem LG Life Sciences LG Solar Energy lg.com

Key people

Products Revenue Net income Total assets Employees

Subsidiaries

Website

History of LG
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. In January 2009 LG was able to buy the domain name LG.com, for a price reportedly to be more than $100 million, placing it among the companies who own their two letter brand's domain name. In 1994 Gold Star gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem. to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its first dive into the solar-panelmanufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant. LG has produced camcorders called ARTCAM and DSLRs.

Development of company:
y
y y y y y y y

1958 Gold Star (todays LG Electronics) established 1959Koreas first radio produced 1965Koreas first refrigerator produced 1966Koreas first black & white TV produced 1968Koreas first air conditioner produced 1969Koreas first washing machine produced 1974GoldStar Communications went public 1977Color TV produced

y y y y y y y y

1978Exports surpassed US$100 million, a first for Koreas electronics industry 1980First EU sales subsidiary in Germany (LGEWG) established 1982Color TV plant established in the US in Huntsville, Alabama 1984Sales surpassed 1 trillion Won 1986European-standard VCR plant established in Germany 1989Sales subsidiary and a joint production subsidiary established in Thailand 1990Ireland-based design technology center established 1993With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing

y y

1995Company name changed to LG Electronics and US-based Zenith acquired 199740-inch Plasma TV and the worlds first IC set for DTVs developed India production subsidiary (LGEIL) established

y y y

1998Worlds first 60-inch Plasma TV developed 1999LG.Philips LCD established 2000LG Information & Communications merged The worlds first Internet-enabled refrigerator launched Global sales of refrigerators reached the number one position

2001Asynchronous

IMT-2000

equipment

commercialized

The

worlds

first

Internetenabled washing machine, air conditioner, and microwave oven launched LG.Philips Displays, a joint venture with Philips established
y

2002Under the LG Holding Company system, the Company spun off to LG Electronics (LGE)& LG Electronics Investment (LGEI) The first home network system commercialized in the global market

2003Worlds first synchronous-asynchronous IMT-2000 mobile phone developed The worlds first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the worlds first Super Multi DVD Rewriter

2004EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55-inch LCD TV, the worlds first and largest among LCD TVs, commercialized The worlds largest and first 71-inch Plasma TV commercialized The worlds first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System

2005The worlds first DMB notebook commercialized The worlds slimmest TV commercialized The worlds largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a joint venture for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market

2006Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world's first 100-inch LCD TV Launched the world's largest Full HD 102-inch Plasma TV (1080p) Developed the world's first dual-format high-definition Disc Player& Drive

2007Launches the industry's first dual-format, high-definition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE Won contract for GSMA's 3G campaign

2008Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives

Achievements of company:
y In 2008, LG won 11 red dot design awards, 11 iF product design awards, and 13 Innovation Awards at CES, where the 50-inch PG6000 1080p Plasma HDTV was Best of Video Display. y In 2009 LG has won 15 Design & Technology honors at CES including the CES 'Best of Innovations' in the Wireless Communications Category for LG Dare (VX9700) and Home Appliances Category for Steam Laundry Pair:SteamWasher with Allergiene Cycle and Steam Dryer(WM3001H). Seven 2009 products have been awarded with iF product design awards and another seven received red dot design awards. y Two LG washing machines have also achieved Asthma and Allergy

Friendly Certification based on the Allergiene Steam cycle. The Asthma and Allergy Friendly Certification Program is a science based Certification that is awarded to products that are proven to be more suitable for those suffering

from asthma and allergies. The Allergiene cycle of the LG washing machines has been

proven to be capable of reaching thermal killing temperatures for the house dust mite, and also that any allergen present will be removed following washing. y More recently LG's LUV300B Compressor vacuum cleaner has also been certified as Asthma and Allergy Friendly. Vacuum cleaners that are certified as Asthma and Allergy Friendly have been scientifically tested for their ability to remove allergen from carpets and have also been assessed for particle generation during vacuuming. y In 2010, LG Electronics got awards for Excellence in Design and Innovation in 7 categories and "Best of Innovations" award in the Video Display category for a dramatic new 55-inch class FULL LED HDTV with 3D capability and Internet.

Types of Product
y y y y Colour TV Refrigerator Washing machine Air Conditioner

Models & Range of Washing machine

Model: T1103TEE3 Capacity:11 kg MRP: Rs 38990 Model:WP-1262S Capacity: 7.2 kg MRP: Rs 9350 Model: WP-1022M Capacity: 7 Kg, MRP: Rs 9250 Model: WF-T7519RS Capacity:6.5kg MRP: Rs 16700 Model: WP-1020 Capacity: 7 kg MRP: Rs 8500

3. OBJECTIVES OF THIS STUDY

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To know consumer behavior while purchasing. To know what factor affect consumer behavior. To know the consumer view regarding service/after Sales service. To know various strategies used by companies to attract Consumers To know the consumer preference. An electronic product company differentiates its product on different grounds. So i study that, for which qualities company is advertising, those features that products have or not.

4. RESEARCH METHODOLOGY

4.1TYPE OF RESEARCH DESIGN

The projects will certain the drivers Consumer Behavior and to find the factor which affect purchase of Washing Machine

The Research divide into two parts: Exploratory research to find the various drives of consumer behavior Conclusive research to find the factor affecting the purchase. 1) EXPLORATORY RESEARCH The universe defines as comprising of people who had avail, purchase for Washing Machine & Refrigerator. Exploratory Research aimed at finding out the drivers of consumer behavior.

2) CONCLUSIVE RESEARCH Conclusive Research consisted of Administer Survey through questionnaire. The questionnaire mainly had closed end questions. The Final Questionnaire consisted of questions based on factors affecting the consumer behavior.

4.2 Sampling Method:

In this research, I have used convenience method because in this method the samples selected from the population are easily and conveniently available to the researcher. Such samples include friends, relatives and social group of our society.

Sample size: 30

4.3 Limitation of the study:

y y It was difficult to get correct secondary data from the internet. My sample size is very small as the population of Ahmedabad is very big and I have collected information from a small group of people. y No statistical techniques used in survey.

4.4 Data collection:

I have collected data from secondary sources and primary sources.

i)

Secondary sources: I have collected the information about the LG company and its washing machine from internet.

ii)

Primary data: IN primary data the instrument used by me for data collection is a questionnaire is structured and undisguised form.

5. DATA ANALYSIS
2. Which type of washing machine do you own?
35 30 25 20 15 10 5 0 Semi automatic washing machine Fully automatic washing machine Front load washing machine Front load washing machine 10 10 5 5 16.67 16.67 Total % 33.33 33.33

Interpretation: From this survey it was found that 33.33% people had semi automatic & fully automatic washing machine and 16.67% people have front load & top load washing machine.

3. What is the size of washing machine?

60 50 40 30 20 10 0 <5kg 5 7 kg >7kg 9 16 5 16.67 30 Total % 53.33

Interpretation:

From the graph it can be known that 30% had less than 5 kg, 53.33% of people had between 5 kg-7kg and 16.67% people had more than 7 kg of Washing machine.

4. On what basis you purchase that specific brand of Washing Machine?

40 35 30 25 20 15 10 5 0 Superior Quality/Technology Price/Value for Money Durability Brand Image 15 13 5 12.19 8 19.51 Total % 36.59 31.71

Interpretation: From above graph it can understood that majority of consumer purchase washing machine on the basis of superior quality and reasonable price and 12.9% & 19.51% consumer took the decision of purchasing on the basis of durability and brand image. 5. Which companys washing machine do you own?

60 50 50 40 30 30 20 20 10 0 Videocon LG Samsung Other specify 6 15 9 0 0 Total %

Interpretation: From the above graph it can see that majority of consumer i.e 50% prefer Lg Companys washing and 30% people prefer Samsung Companys washing machine and 20% prefer Videocon Companys washing machine.

6. What is its price?

35 30 25 20 15 16.67

33.33

33.33

16.67 10 10 5

Total %

10 5 5 0 7000-10000 10000-15000 15000-20000 ore than 20000 m

Interpretation: From this survey it can be known16.67% people had Rs 7000-10000 and more than 20000, 33.33% people had paid between Rs 10000-15000 and 15000-20000. 7. Why have you opted for this company?
50 45 40 35 30 25 20 15 10 5 0 46.67

33.33

14 5

16.67 10 1 3.33 0 0

Total %

Because of its Due to its best Good position Due to good Other specify reasonable quality it holds in the after sales price market services

Interpretation: From the above graph it is found that people preferred 46.67% because its products are reasonable.16.67% of people had due to its best quality; 3.33% i.e only 1 person preferred because company holds good position in the market, 33.335 people impressed due to good after sales service.

8. Are you satisfied with the product?

100 80 60 Total 40 20 0 Yes No 25 5 16.67 % 83.33

Interpretation: In this graph 83.33% of people were satisfied with their washing machine and 16.67% of people were not satisfied.

9. If not, than what kind of problems do you face?

70 60 50 40 30 20 10 0 3

60

40 Total % 2 Consumers more water/electricity 0 0 0 0

Wash quality not good

Design problems

Poor after sales service

Interpretation: From the above graph 60% people found problems with wash quality, 40% people problems with consumption of more electricity.

10. Would you buy the product from the same company in future?

80 70 70 60 50 40 30 21 20 10 0 Yes No Can't say 5 16.67 4 13.33 Total %

Interpretation:

From the above graph 70% of people like to purchase from the same company in future and 16.67% people did not purchase from the same company and other were not sure.

6. FINDINGS

At the time of survey I found that:  Most of the people preferred that washing machine which price is between Rs 1500020000.  Most of the consumer preferred LG companys Washing machine because according to them LG companys washing machines quality is good.  I also found that some middle class family took the decision of purchasing on the basis of price and preferred the Samsung Companys washing machine because Samsung Company provides the washing machine at reasonable price.  Most of the people said that Samsung Companys price is reasonable but its wash quality is not good and it consumes more electricity and only few percentage of people preferred Videocon because the price of this companys washing machine is high so middle class people cannot afford it.  At the time of comparison of these three companies I found that LG Companys washing machine is good according to its price, good after sales services, and also quality wise.

7. SUGGESTION
 In many questionnaires I have found that people didnt have LG Companys washing machine because of its costly price so my suggestion is to reduce the price so that middle class people can also afford it according to its standard quality.  Companies should also collect customer feedback regarding their complaints and views about their services, product quality etc.  Companies should bring more new and new technology which has been already introduced in foreign countries.  A few percentages of people using the washing machine had some dissatisfaction due to high power consumption, so companies should concentrate on producing in a way that it wouldnt Consume more electricity and satisfy.

8. CONCLUSION
The overall experience of my survey was good. I came to know regarding different views of people. At the time of this survey I came to know more how people perceived various companies and reasons which affected them and how it would benefit the company, if they can have their customers feedback regarding their product. On the basis of my survey I concluded that LG Company is strong leader in the market for its washing machine because most of the consumer prefers it because of its reasonable price and qualitative products so I think it would be strong company of market in future. In my project I have given some suggestion on the basis of survey, in which consumer shows the things which they want in their washing machine. So if company adopt this suggestion than I hope it may be beneficial for the company So as management student, if I have to pursue careers like marketing manager, or even to have manage a company of my own then this survey helped me lot to understand consumers, their likings and their wants which companies are not able to fulfill. I able to understand a common mans view point.

9. BIBLIOGRAPHY WEBSITES:

http://www.google.co.in http://www.samsung.com http://www.lg.com http://www.videcon.com

BOOKS:
y

Buyer Behavior of Home Appliances Indian Journal of Marketing by Dr.G.Sudarsna

Reddy& Rajarashmi Consumer Behavior & Marketing Indian Journal of Marketing by Swasti Soni

Questionnaire for consumer preference regarding washing machine

NAME: OCCUPATION: INCOME:

1. Did you recently purchase a new Washing Machine? Brand Name: ______________________________ Time: ______________________________________ 2. Which type of washing machine do you own? (a)Semi automatic washing machine (b) Fully automatic washing machine (c) Front load washing machine (d) Top load washing machine 3. What is the size of washing machine? (a)<5kg (b)5 7 kg (c)>7kg 4. On what basis you purchase that specific brand of Washing Machine? (a) Superior Quality/Technology (b)Price/Value for Money (c) Durability (d) Brand Image

s5. Which companys washing machine do you own?

(a) Videocon (b) LG (c) Whirlpool (d) Samsung (e) Other specify 6. What is its price? (a) 7000-10000 (b) 10000-15000 (c) 15000-20000 (d) More than 20000 7. Why have you opted for this company? (a) Because of its reasonable price (b) Due to its best quality (c) Good position it holds in the market (d) Due to good after sales services (e) Other specify 8. Are you satisfied with the product? (a) Yes (b) No 9. If not, than what kind of problems do you face? (a) Wash quality not good (b) Consumers more water/electricity (c) Design problems (d) Poor after sales service 10. Would you buy the product from the same company in future?

(a) Yes (b) No

(c)Cant say 11. If someone in your reference group and wants to purchase a new washing machine, would
you suggest your companys brands? (a) Yes (b) No (c) If No, then why: _______________________________