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ON COMPARATIVE STUDY OF SELECTED HOME APPLIANCES OF SELECTED COMPANIES (SAMSUNG & LG)
In partial fulfillment for requirement of Research Methodology course in two years full time Masters of Business Administration
INTRODUCTION TO HOME APPLIANCES
MARKETING STRATEGIES INDUSTRY PROFILE
The Japanese threatened to take over the world twice in the last century: first with their military strength and later with their electronic goods. This century, it is the South Koreans' turn - at least so it seems in India. The South Korean companies - Samsung Corp and LG Electronics Corp - have proved that with their innovative and aggressive strategies, Korean products, which even until the 1990s were considered low-end mass-manufactured stuff, cannot only rule markets in India but can also push multinationals and their Indian competitors. In mid-1990s. India had just opened to foreign competition, and consumers were yet to get a taste of relatively high-technology products. The Japanese majors were undecided about India's potential, and other multinationals such as Whirlpool, GE, and Electrolux were yet to get a foothold. Indian brands, which included BPL, Videocon, Kelvinator and Godrej, had the market all to themselves. It was against this backdrop that the Koreans grabbed the opportunity India's liberalizing economy offered, and they entered the country with a simple message: we mean business and never before have Indian consumers been exposed to the price performance of the products we have to offer. And seven years down the track, while the cautious Japanese and quite a few foreign brands in the home durables sector are still struggling and some of the Indian brands - such as BPL and Kelvinator - are almost going into oblivion, Korean brands are storming in and taking over the markets in each of their product categories. Korean products are now all-pervasive in Indian homes; they are everywhere from cars, TVs, washing machines and microwave ovens to computer accessories and, ultra high-tech home networking products that can enable a refrigerator to order supplies over the Internet and control room air-conditioners and even record a DVD movie from a TV through a mobile phone. Their growth rates are stunning. For instance, in five years Hyundai has sold more than 350,000 cars - nudging the 400,000 mark - to become the fastest-growing and second-largest car manufacturer in India. Samsung and LG clocked the second and third positions in the home appliances and electronic products market, and right now they are the fastest growing home appliance companies in country.
India wasn‘t exactly virgin territory for the Koreans entered-consumer electronics. There was a clutch of players, both Indian and multinational, those were already present. But the Koreans grew and now they are bigger than a whole generation of ‗FERA‘ companies such as GlaxoSmithKline, Phillips India, Colgate-Palmolive, Cadbury, Nestle and Castrol. If we look at market domination as an indicator; L G is the clear leader in the electronic products business,
followed by Samsung. Between the two, they dominate the consumer electronics business, which includes a 30% share in colour televisions (CTVs). And companies of all nationalities – Indian (BPL, Videocon), European (Electrolux, Philips), American (Whirlpool) and Japanese (Matsushita,Sony)- have collapsed before their onslaught and Koreans have emergedas winners.
The timing of their entry into India was more propitious. They came after industrial licensing made its exit. It was after imports controls on inputs and equipment had largely ended. So they were able to produce in India what was cheaper to produce here, and did not have to follow a preconceived plan of import substitution. And cheaper production meant that they had a fighting chance in competition, both in India and abroad. But timing was not everything; the Koreans have also brought with them certain gifts of great value in the Indian environment. One is the way these companies set their objectives. India is a price sensitive country and they have not neglected that. They have derived price targets from the local market; they have aimed to be competitive, not necessarily cheap. But within those price objectives they have achieved reliable quality and sought to be a step ahead in product technology. Their greatest asset has been the trust of consumers they have gained. Their next biggest advantage is their nimbleness. They have set up subsidiaries that are large by our standards; but their speed of reaction to market changes, speed of correction of course, speed of execution of strategic initiatives are too good. The working conditions in the office are also different from the others. Like European and Anglo-Saxon model has been focused on results, their approach to work place has been reasonably laissez-faire. For Koreans, it‘s different. The work place is pretty hierarchical and seniors are given tremendous respect.
The Americans and Japanese took their brand equity for granted. They are huge buyers of advertising so they exude through a lot of visible brand building. Such high voltage advertising has made the Koreans the biggest spenders in their businesses. They practice this shibboleth with unusual vigor. They studied closely and picked up the salient features of the Japanese manufacturing and made themselves an expert in that. They hedged bets by buying existing brands 5 . Both L. Dabur and Hindustan Lever. These spends have placed the Koreans in the class of some of the highest spenders in India such as Colgate.G spent Rs 225 crore and Samsung Rs 100 Crore. which is now bearing the fruits. They figure out quickly and very well what the consumer wants. That‘s why they have infused so investment.G and Samsung have consistently launched contemporary models-be it fuzzy logic washing machines. That means even the higher officials roam about the market to give boost to dealers and also to gather the first hand information on the current market conditions.G spent Rs 110 crore in advertising while Samsung spent Rs 80 crore in 2001. The Koreans have also started making a name for their ability to understand what customers want. The Koreans did not. But the important part is they quickly adapt their strategies accordingly. Unlike U. and they outspend competition by a factor of at least two. This way they got their brand noticed. L. In 2003 L. ITC. The Koreans always think big and take risks. Players like Whirlpool and Electrolux that made a foray into consumer electronics around the same time that L.S companies following the office marketing strategy the Koreans follow the principle of ‗Feet marketing‘. This helps in knowing the ground realities better which results in a better strategy. o Further power was added to this strategy of dazzling Indians with global products was their high advertising spends. Their planning is very meticulous on the execution of the job in hand. flat screen TVs or microwave ovens-in step with their launch globally. As a result of this they didn‘t make any value judgments of the Indian customers and introduced contemporary products. The Koreans never shown any bias against India.G and Samsung did.
All Korean managers bring on board a monk like devotion to their task at hand. This ensures quick execution of the work. The Koreans believe that manufacturing is a key strength and that‘s why they eschew contract manufacturing and invest in their own manufacturing facilities around the globe. Allwyn. This research gives useful inputs to the Korean players and also times to adapt themselves for the new situation. Many business like chip manufacturing. acquisition of their country in the past tends them to form a marketing strategy that requires best of them. and the like) while the Koreans built capacity from scratch and gives them an edge over the competitors.R.and capacities here (Kelvinator. The reason being the instability and lack of infrastructure of India to support these businesses. 6 . energy business etc. Though the Koreans are making huge profits in India they have not fully presented themselves in India. When they take up a job they take it very seriously. According to prof.R. which they are operating in other countries has not found its way to India. humungous chemicals. They bundle one product with another so as to promote the weaker one backed by the established product. They don‘t start on a hunch. They have culture sensitive workshops to ensure that the Koreans and Indians work well together. Maharaja. The Koreans want to outdo the Japanese. Their planning is meticulous. The Koreans always do a prelaunch market survey unlike its Japanese or U.Krishnan at center for East Asian Studies of Jawaharlal Nehru University the insecurity element in the history of Korean comprising colonization.S counterparts who take their brand equity for granted. This shows their marketing tactics and their inclination towards the prelaunch test that they conduct before induction of each product in India. They have well-entrenched the consumers in India by sponsoring a number of premier events like cricket matches and others with a high TRP ratings.
OVERVIEW OF CONSUMER DURABLE INDUSTRY DEFINITION OF THE CONSUMER DURABLE INDUSTRY SIZE OF THE MARKET BACKGROUND MAJOR PLAYERS 7 .
Most consumer goods are durables to some degree.Industry profile OVERVIEW OF THE CONSUMER DURABLE INDUSTRY Definition of the Consumer Durable Industry: Consumer goods like washing machines. motorcars. though it is equivalent to $600 on PPP (Purchasing Power Parity) basis and expected to see a consistent growth of over 6% over the next years to come. Over the years demand for consumer durables has increased with the rising level of incomes. price wars. double income families. VCRs/VCPs and audio systems) and consumer appliances (also known as white goods) like refrigerators. air conditioners (ACs). branding and promotional strategies. and the term is often used in a more restricted sense to denote relatively expensive. In India. The consumer durables segment can be segregated into consumer electronics (TVs. Most of the segments in this sector are characterized by intense competition. technologically sophisticated goods ‗consumer durables‘ such as the examples given above which implies high involvement at the time of purchase. price discounts and exchange schemes. audio-video systems etc. microwave ovens. and introduction of state-of-the-art models. TV sets. the PCI is low at $370. which yield services or utility over time rather than being completely used up at the moment of consumption can be termed as the consumer durables. availability of credit. Also it is widely accepted that consumer durable penetration increases rapidly after per capita income (PCI) crosses a threshold limit of $2000. the concept has melted down to the masses and has become a part of the household‘s necessities even in the lower-middle class and rural part of the countries. Despite of that MNCs are entering in to Indian market because growing Indian middle class of around 250 millions. 8 . Consumer durable industry was once considered to be luxury item with targeting the uppermiddle class for consumption. With increasing competition. increasing consumer awareness and the introduction of new models by the Indian as well as multinational companies. emergence of new companies (especially MNCs). vacuum cleaners and dishwashers. washing machines. changing lifestyles.
NCAER estimates point to the fact that the number of households with monthly incomes above Rs 10.02 in 1993-94. In the future. the number of households in the higher and middle-income categories will rise rapidly. The Indian middle class market of 250 million is the biggest attraction for the MNCs along with the level of the penetration of consumer durables in the India has more attracted Multinationals to the India. This market is characterized with low penetration levels.7 million in 1995-96 to a huge 57. earnings will be driven by rising demand for consumer durables in general. the per capita total expenditure on durable goods increased from Rs112. As per the National Sample Survey Organization project of "Use of durable goods by Indian households". while domestic companies compete on the basis of their well-acknowledged brands. This will mean that firstly.89 in 198788 to Rs148. in the case of consumer durables penetration levels of TV is believed to the highest. any reduction in the duties will leads to lower down of the values and this will bring more customers for the durable products.000 in metros and Rs 5.000 in non-metros is expected to rise from 22. The biggest attraction for MNCs is the growing Indian middle class (approx. This will lift large number of households to income levels at which they can become purchasers of consumer durable products. the level of aspiration buying will increase. there will be a perceptible shift towards branded products and secondly. Continuous economic growth and higher income levels will drive growth in volumes. an extensive distribution network and an insight in local market conditions.2 million in 2005-06. MNCs hold an edge over their Indian counterparts in terms of superior technology combined with a steady flow of capital. 9 .According to NCEAR survey estimates. Similarly. There will also absolute reduction in the number of households in the low incomes. and after that the penetration of the refrigerator comes. 250 m).
Audio Systems. The competition is dependent upon the brand strength and distribution network. Now considering consumer durables industry in general. The brand image of the product as perceived by the consumer. The ability of the company to introduce newer products and newer product features. Washing Machines. The advertising and marketing strategy adopted by the players in the industry. the advertising and marketing expenses play a vital role in competition.Size of the Market: The total Rs. The capability of the company to service its products. state-of-the art technology or and older version. Vacuum Cleaners. Air-conditioners. The financial strength of the players.4 percent in 1993 to 6. The discount schemes and consumer finance facility available. the advertising and marketing costs as a percentage of operating income have increased over the years. 10 . Refrigerators. However. This ratio for the industry has increased from 4. 15500 crore consumer durables industry consists of Colour Televisions. In other words. The technology used by the company viz. Microwave Ovens. The competition in the industry has intensified after the liberalization and more and more MNC are coming to India to target the huge middle class of the country. As a result of the increased competitive activity. The market positioning of the product. There are even constraints like transportation due to poor infrastructure and relatively under developed markets in the neighbouring countries. The table below shows the ‗Estimated industry size‘ and the competition in the various segments. Electronic Appliances and Water Purifiers. Black and White Televisions.7 percentage in 2000. the drivers that will leads to the growth of the industry in general will be: The degree of distribution network in the market. The cost competitiveness and pricing strategy of the company. the export prospects are least or minimal because indigenous manufacturers do not possess adequate brand equity or excellent product quality.
the marketing game has become a vital factor for driving sales as against the manufacturing process of the products in the past. the ratio for the industry has increased from 4. The brand building is very critical in the industry and constant advertising is necessary. The advertising expenses of the companies operating in this segment are going high every year and the returns are diminishing still the brand will play a major role in selling of the product. Videocon and Electrolux are acting as OEM manufacturers for manufacturing refrigerators of Samsung and LG.Changes in the Strategies: There is a shift in trend as the emphasis has moved from the manufacturing process to marketing and advertising strategies. 11 . players have increased the percentage of their advertising and marketing costs as a percentage to operating income over the years. Players are now concentrating on the creation of brand image in order to economize their scale of operations and to increase their brand strength. In other words. most of the manufacturers like. Even. Because of this.6% in 1993 to around 7% in 2000.
they controlled nearly 90% of the market. audio systems. electric hot plates. But this has also resulted in an over-supply situation in recent times as growth levels have tapered off. Honda (Siel) Power Products Ltd (portable electric generators). high pressure water jet cleaners and electronic security systems. stainless steel blender and more. especially in urban India. MAJOR PLAYERS: The major players in the consumer durables industry.Manufacturer and exporter of portable blender and home appliances includes hand held mixers. washing machines. lighting. juicer-mixer-grinder. Sansui . and digital cameras. ceiling fans. components. projection TVs. Then.Dealers for Carrier Aircon Ltd (airconditioningequipment). Kelvin Systems . operating in different sectors such as air conditioners. the entry of a large number of foreign players means the consumer is no longer starved for choice. with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa. home theatres. printers.Details on consumer products include vacuum cleaners. PICASSO Home Products .Manufacturers of gas stoves. juice makers. oven toaster griller.Provide an online showroom to purchase the entire range of Onida products.BACKGROUND: Prior to liberalization. oven-toaster-griller. Both rising living standards. washing machines. enabling technologies. Padmini Appliances . Philips . video CDs and home appliances. floor care equipment. domestic appliances.Manufactures black-and-white & colour television sets. Non Stick Appliances and more. 12 . Together. and Eureka Forbes Ltd Onida.India . They were first superseded by players like BPL and Videocon in the early 1990s. who invested in brand-building and in enhancing distribution and service channels. mixer grinder. semi conductors. freez& television include: BOSS Portable Blenders.Manufacturer and Exporter of various home appliances like roti maker. the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej.Details for consumer electronics. Kelvinator and Voltas. sandwich maker. colour monitors and cordless phones. and easy access to consumer finance have fuelled the demand for consumer durables in the country. Eureka Forbes . Salora. multi media projectors etc. Also.Manufacturer of electronic products. Panasonic fax machines. Allwyn.
digital cameras. refrigerators. LD. Sony India . video CDs. Usha International .Manufacturer of electronic products.V etc. televisions. Usha Lexus . LD. video CDs and home appliances. audios. and auto products. fans. video CDs.Details of product ranges from colour TVs. handy cams. includes machine tools.Details of product ranges from colour TVs. DVD players. RMEG products. digital cameras. DVDs.Makers of room ac and refrigeration equipment. television sets etc. Sony World .Manufacturer of sewing machines. electric irons etc. Walkman. cranes. DVDs. Sansui . LD. and Televisions. handy cams. T. ventilating fans. Sun flame Appliances .Makers of home appliances like sandwich toasters. ovens.India . projection TVs.G India . hi-fi music systems. RMEG products. VCD. portable audio systems.Manufacturers of sewing machines. DVD players. home appliances and electrical appliances in India. digital cameras. air conditioners. cordless phones.Singer . ACs. TVs. home theatre systems. agricultural and domestic pumpsets. refrigerators. hi-fi music systems. portable audio systems. Sony India . Singer . home theatre systems. L. Wega T. Voltas Limited .M.Manufacturers of sewing machines.V etc. Sony World . water coolers. air conditioners. digital cameras. Features wide ranges of products: car audios. colour monitors. VCD. digital organizer‘s. oven. washing machines. hi-fi music systems. RMEG products. walkman. C. industrial chemicals etc Videocon . food processors. portable audio systems. food processors.Details of product ranges from color TVs. DVD players.Manufacturers of kitchen appliances. mixer grinders. oven. Wega T.A mobiles. home theatre systems. juicer. pumps and office furniture. irons and room coolers. walkman. digital cameras.Features wide ranges of products: car audios.Suppliers of home appliances.Features wide ranges of products: car audios. and Televisions. tape recorder. VCD. disc mans. 13 . electric irons etc. home theatres. home appliances. cordless phones. toasters. televisions. handy cams. DVDs. disc mans. and disc mans. refrigerators. digital cameras. washing machines. and Televisions.D. video CDs. audio systems.V etc. toasters. water coolers. Kenwood digital hi-fi systems.
Details of product ranges from colour TVs.V etc. VCD. disc mans.Samsung Electronics India Ltd . DVDs. RMEG products. home theatre systems. LD. T. hi-fi music systems. video CDs. handy cams. digital cameras. digital cameras. portable audio systems. Features wide ranges of products: car audios. DVD players. and Televisions. mobiles. walkman. 14 .
LG CONCEPT AND DEFINITION COMPANY PROFILE MARKETING MIX 15 .
there are five competing concepts under which organizations conduct marketing activities: the production concept. puts it this way: There will always. keeping & growing customers through creating. Coping with exchange processes calls for a considerable amount of work and skill. be need for some selling. Peter Drucker. marketing should result a customer who is ready to buy. One marketer said that marketing‘s role is to ―deliver a higher standard of living‖. THE PRODUCTION CONCEPT: The production concept holds that customers will prefer products that are Widely available inexpensive. 16 .‘ But people are surprised when they hear that the most important part of marketing is not selling! Selling is only a tip of the marketing iceberg. & socially responsible marketing. low cost. It is used when a company wants to expand the market. one can assume. & mass distribution. CONCEPT AND DEFINETION A social definition shows the role marketing plays in society. where consumers are more interested in obtaining the product than in its feature. marketing has often been described as ‗the art of selling products. A social definition that serves our purpose follows: ―Marketing is a societal process by which individual & groups obtain what they need and want through creating. However. a leading management theorist. This orientation makes sense in developing countries. But the aim of marketing is to make selling superfluous. marketing concept & societal marketing concept. Ideally.Marketing management as the art & science of choosing target market & getting. Managers of production based business concentrate on achieving high production efficiency. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties‘ . They assume that consumers are primarily interested in product availability and low prices. effective. delivering and communicating superior customer value EVOLUTION THROUGH THE CHANGES: Marketing activities should be carried out under well – through – out philosophy of efficient. and freely exchanging products & services of value with others.‖ For a managerial definition. selling concept. All that should be needed than is to make the product available. The aim of marketing is to know & and understand the customer so well that the product & service fits him & sell itself. product concept.
The societal marketing concept calls upon the marketers to build social & ethical consideration into their marketing practices. THE PRODUCT CONCEPT :- The product concept holds that consumers will prefer those products that offer the most quality. This concept assumes that consumers typically show buying inertia or resistance & must be coaxed into buying. They must balance & juggle the often-conflicting criteria of company profit. will ordinarily not buy enough of the organization‘s products. Integrated marketing. and profitability. these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. THE MARKETING CONCEPT: - The marketing concept is a business philosophy that challenges the three. customer needs. When they have over capacity. performance. & political parties. wants & interests of the target market & to deliver the desired satisfaction more effectively & efficiently than competitors in a way that preserves & enhances the consumer‘s & the society well being. Their aim is to sell what they make rather than make what the market wants. if left alone. consumer want satisfaction. Most firms practice the selling concept. The marketing concept has been expressed in many colorful ways: ―Meeting needs carefully‖ ―Putting people first‖(British Airways) ―Partners for profits‖ (Milliken & company) The marketing concept rests on four pillars: target market. However. THE SELLING CONCEPT:- The selling concept holds that consumers and businesses. and public interest. The organization must therefore. 17 . college admission offices.business orientation. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating. undertake an aggressive selling and promotion effort. They assume that buyers admire well-made products and can appraise quality and performance. The selling concept is also practiced in the nonprofit area by fundraisers. THE SOCIETAL MARKETING CONCEPT: - The societal marketing concept holds that the organization‘s task is to determine the needs. delivering & communicating customer value to its chosen target market. Managers in these organizations focus on making superior products & improving them over time. It also assumes that the company as a whole battery of effective selling & promotion tools to stimulate more buying. or innovative features.
Monitor Digital Media Company CD-ROM Drives. Microwave Oven. LG Electronics is comprised of four main business companies including Mobile Communications. CD Rewritable Recorder. Compressor for Refrigerator Digital Display Company Digital TV.COMPANY PROFILE LG Electronics Inc.614(31. DVD Player. PDP. The company is a global force in electronics. Security System. 3G(WCDMA / cdma2000) Digital Appliance Company Air Conditioner. was established in 1958 as the pioneer in the Korean consumer electronics market. PCB Number of Employees 66.LGE. DVD-ROM Drives. Refrigerator. Video Phone. With more than 66. Vacuum Cleaner. Recording Media.com Vice Chairman & CEO S. Digital Display.000 employees working in 76 subsidiaries in 39 countries around the world.000 overseas) : October 1. and Digital Media. Corporate Name : LG Electronics Inc. Audio. Inc.S. Yoido-dong. Korea 150-721 Tel: 82-2-3777-1114 URL: http: / / www. LG Electronics.Kim Business Area and Main Product Mobile Communications Company Wired -wireless handsets and network services. information and communications products with 2004 annual sales of US $38 billion (consolidated). 1958 (As a private Company) 18 . VCR. Digital Appliance. GSM. Banking Automatic System. CDMA.614 in Korea/ 35. Compressor for Air Conditioner. PC Camera. Youngdungpo-gu Seoul. Washing Machine. Established Corporate Office LG Twin Towers 20.
In the short span of eight years. near Delhi. In 2004. The beginning of 2003 will see roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.In India LG Electronics India Pvt. Ltd. Microwave Ovens.1056 Crores Rs.3000 Crores Rs. The LG manufactures Color Televisions (CTVs). LG wants its Indian unit to generate US$10bn in annual revenue by 2010. Around 30% of these revenue will come from exports.. AirConditioners (ACs). Refrigerators PCs and Monitors.1903 Crores Rs.485 Crores Rs. a wholly owned subsidiary of LG Electronics. 2216 Crores Rs. LG also commenced the home production for its Ecofriendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.125 Crores RS. During the year 2001. the company's turnover touched Rs65bn. The company has set a target of achieving a turnover of Rs90bn in 2005. The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and Financial Performance: Turnover for1997 Turnover for 1998 Turnover for 1999 Turnover for 2000 Turnover for 2001 Turnover for 2002 Turnover for 2003 Turnover for 2004 RS.6500 Crores 19 . with an investment of Rs500 Crores. South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Washing Machines. The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 months with the commencement of operations in May 1997. the highest among any company in this segment in the country. in 1998. LG has achieved the position of a premium brand in the Indian market and is today the most preferred brand in the consumer durable and home appliance segments. LG set up a state-of-the art manufacturing facility at Greater Noida.4500 Crores Rs.
IT Rs67. it has manpower strength of 2. Production Capacity: CTVs .New Manufacturing Plant: Encouraged by this stupendous growth. Out of this. The plant commenced commercial production in June 2004.1 lakh units per annum Refrigerators . The company aims to pump in Rs5bn in the plant over the next five years. Exports will constitute 30% of total revenue at Rs140bn. three months ahead of schedule.000 people.2 lakh units per annum Microwave Ovens -0. LG Electronics India started building another manufacturing facility at Ranjangaon. At present.5bn. It aims to double this every year and plans to increase it to 30% by the end of 2007. will enable LG to expand its consumer reach and ensure better supply chain management that would translate into a faster response time. Refrigerators.5bn and Mobile Phones Rs157. Consumer Electronics will account for Rs112. Spread over an area of 50 acres.5bn (US$32mn). The Ranjangaon facility is in line with LG's vision of making India the global export hub. the sprawling new facility is designed to manufacture CTVs. Home Appliances Rs12. it manufactures CTVs and Refrigerators besides assembling of a couple of GSM mobile handsets. some 50 km away from Pune in Maharashtra at an initial investment of Rs1. The new plant will contribute 10% of LG's total projected revenue of Rs90bn in 2005. At present. The new plant. and can go up to 5. in addition to the Noida factory.5bn.000 by the year 2010.5 lakh units perannum ACs . Vision 2011 LG Electronics India aims to become Rs450bn Company in India. Washing Machines.10 lakh units per annum Monitors -1 lakh unit. Microwave Ovens and Color Monitors.5 lakh units per annum Mobile phone handsets .5bn. 20 .5 lakh units per annum Washing Machines . ACs.
1. It came out With Hindi and regional language menus on its TV. Transparent and fast communication-open communication 4. Innovative marketing . Kolkata and Bhopal for CTVs. C and D class markets. MAJOR KEY SUCCESS FACTORS 1. Customer is the king 6. Relationship with the trade partners 21 . 6. Be in touch with the market (70% Market. 5.LG was the first brand to enter cricket in a big way. Local and efficient manufacturing to reduce cost . CRM and IT-enabled services for LG. Regional distribution model . Delhi.Product localization is a key strategy used by LG. Product localization .To overcome high import duties. Commissioned contract manufacturing at Mohali. SCM. 2. Update market -knowledge –Demographics 5. Fast execution is key to success 3. by Sponsoring the 1999 World Cup and followed it up in 2003 as well. LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida. 8. Plan and Execute annual marketing Calendar-Time to market 9.This has resulted in quicker rotation of stocks and better penetration into the B. Foster working environment-5S Environment 2. 4. Display share of 50% -to get 50% consumer share. 30% Office). The project involves development and support for ERP. 3. Even Billing –Road to ach supplier A 7.LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). Strategies adopted by the organization LG follows 10 commandments which are as follows. Leveraging India‘s IT advantage . Win –Win Customer is the king6.
but LG has fought well to get where it has today. No sooner did the company enter India than it found this to be a large market for its IT products as well. claims Manikandan It hasn‘t been very long since this Korean electronics and home appliance giant came to India to sell color TVs and other white goods. Sales revenues went up by 44 percent. WHAT‘S NEXT? The company is believed to be toying with the idea of introducing two new products for the Indian market—the LG laptop and LG home-based PC server for the small office. but the company is now successful in terms of both market penetration and presence. we see that it grew by about 200 percent this year as compared to the corresponding period last year." is all he‘ll say. The company has also recorded nearly 30 percent growth in the optical storage devices (OSD) segment in 2002-03 as compared to the last fiscal. against 138 crore a year ago. The company as a whole posted a 45 percent jump in sales revenue for the same period. In the IT division OSD posted a growth of 30 percent in sales revenues. compared to 2001-02. The total sales turnover for the IT division touched Rs 199 crore. But when Manikandan asked evasive: "It‘s too early to give any information. The high growth for the company in the latter segment came from the CD-Writer sub-segment.LG‘s going places in Indian market And. Year-on-year LG is registering tremendous growth in its PC components business. home office environment. and the company achieved 43 percent growth in volume terms. says RAHUL NEEL MAN LG is the only company to successfully introduce and run a regional distribution model in India. luck has nothing to do with the way the Korean giant is striking gold. If we take this sub-segment in isolation. LG has grown by about 73 percent in monitors this year. How has this been possible? Not that the company didn‘t face any competition when it came here. LG‘s experiments may have resulted in someinitial snarls. while the monitor division registered a growth of 60 percent in revenue and 73 percent in volumes. 22 .
Gold Fin Condenser LG L. 4 Way Swing. Air conditioners Split AC It has Jet Cool. The 4 way swing ensures uniform cooling which gives you maximum comfort.Arctic offers Jet Cool with which you can experience high speed cooling. services mix & quality & price appropriateness. Place.‖ McCarthy classified these tools into four broad groups called 4P‘s of marketing: Product. The sweet Dreamz mode switches off the light off the display panel to give you a peaceful sleep. Dreamz Mode. It gives you maximum comfort and convenience and designed for absolute perfection 23 . Price. These marketing variables are shown in the following figure: Marketing Mix Product Promotion Price Place The First P—‗PRODUCT‘ Product is a key element in the market offering.features & quality. & Promotion.MARKETING MIX ―Marketing mix is the set of marketing tools that the firm uses to pursue its Marketing objectives in the target market. Marketing mix planning being with formulating to meet target customer‘s need & wants. The customer will judge the offering by three basic elements. 3 Eva. Products Name: 1.
L. 24 .C. crisper and more color accurate image in an economical solution. 001 millisecond refresh rate between frames delivers ultra smooth image transition with zero motion blur.1500 cd/m2 brightness and 1365 x 768p resolution. No action sequence is too fast for the new lg pq30 lcdtv. It comes with a superior 600 Hz sub-field driving technology that brings you 12 sub-fields per frame rather than the conventional 8. reduced electricity bills can be taken for granted.00. The anti bacterial filter ensures every ounce of air you breathe is clean for sure. And sporting therepute of being star rated. Anti Bacteria Filter. VFO Deodorizer. Jet Cool Smart outside. expert inside is the core objective of formulating this LG Air Conditioner.Window A/C Gold Fin Condenser. it cools the room instantly. Equipped with jet cool.D MONITOR This LG 43 Series monitor is a perfect combination of superior technology and convenient features that provide a clearer.G PLASMA TV Lg plasma TV 42pq30r with 20. L. Moreover it's superior 0.000:1 dynamic contrast ration.
Promotion persuades and convinces the buyer & enters into this consumer behavior. Moreover. these refrigerators are masterpieces made for you to indulge in and designed to fit seamlessly into your home with eight digital sensors and the wine rack. Cell Fresh crisper & Anti Bacterial Gasket helps in keeping the freshness of food intact.‖ It is a non-price competition. ―Nothing until somebody promotes something‖ Promotion can create & stimulate demand. few buyers purchase and if the price is low many buyers purchase. This LG Frost Free refrigerator features door cooling technology with internal (Micom). Promotional efforts act as powerful tools of competition providing of cutting edge of its entire marketing programmed. The communication & promotion mix includes four ingredients viz. Promotion has three specific purposes. users & retailers. ―money of the product or service agreed upon in a market transaction‖. capture demand from rivals and maintain the demand of your products even against keen competition. or the acceptance of ideas of points of view. It communicates marketing information to the customers. So. persuasion and influence.REFRIGERATOR This LG side-by-side refrigerator features tasteful exterior Red Floral art finish with Home Bar and Water and Ice Dispenser. If the price is high. Promotion has been defined as ―the coordinated self initiated effort to establish channel of information & persuasion to facilitate or faster the saleof goods or services.‗PRICE‘ Sales are only income fore any business concern. Therefore a sound pricing policy must be adopted to have maximum sale revenue. which affects the sale of the market. THE SECOND P. Humidity Controller. But price is the main factor. it is only through proper pricing policy the already laid down marketing objective and corporate goals could be achieved. 25 . Price in money = physical product + bundle of expectations THE THIRD P – ‗PROMOTION‘ Promotion is the process of making communication involving information. It is true that nothing can be sold & nothing can make money (except mint) Without means of promotion.
Rapid urbanization. India is the 4th largest economy in theworld and overtake Japan in the near future become the 3rd largest. 2. 26 . 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. 2. Opportunity 1.6 million in 2000.2 million in 2007 as against 14. In India the penetration level of white goods is lower as compared to other developing countries. 4. Scope 1. increase in purchasing power of consumers. 4. 3. China and from other Asian countries. THE FORTH P – ‗PLACE‘ Place represents the location where a product can be purchased.400-US$21.India has the youngest population amongst the major countries.Indian consumer durable market is expected to reach $400 billion by on 2010 3. Distribution Channels of LG Electronics India Pvt. who are earning us$4. It can include any physical store as well as virtual stores on the Internet. And there are 6 million rich household in India.The upper-middle and high-income household in urban areas are expected to grew to 38. 5. It depends upon the perception of customers.In term of purchasing power parity (ppp). i. Cheap imports from Singapore. Easy availability of finance Threats Higher import duties on row materials. There are 56 million people in middle class.800 a year. Ltd. 5. Unexploited rural market.e. It is often referred to as the distribution channel. Increase in income level. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers.
SAMSUNG COMPANY PROFILE RESEARCH & DEVELOPMENT AT SAMSUNG HOME APPLIANCES SECTOR IN INDIA SWOT ANALYSIS OF SAMSUNG FUTURE PLANS 4 P‘s 27 .
Digital information systems are manufactured in the Gumi Complex. information systems are manufactured in the Gumi Complex. The Suwon Complex produces digital products. In Korea. two distribution centers.‖ Samsung Electronics aims to be a true leader in the era of digital convergence. Vision & Mission 1) Vision The vision of Samsung Electronics is ―Leading the Digital Convergence Revolution. Hwaseong. and 52. Cheonan.800 work in domestic worksites. 10. and Onyang Plants. We are developing innovative technologies and efficient processes to enrich people‘s lives and build Samsung Electronics into a trusted and respected company. products and services by shaping new lifestyles through product and technology innovations World-class production and management processes Maximize management efficiency based on cost competitiveness and efficient processes resulting from process and marketing innovations Company: Preferred and trusted company Build a preferred and trusted company that has a dynamic culture and attracts customers worldwide through global management and organizational innovation 2. global operations included 27 production subsidiaries. while semiconductors are produced at Giheung. the Company operates eight plants. innovative services Create new businesses.900 in our domestic subsidiaries. 2) Mission Our mission to carry out the vision is ―Digital-εCompany. and Tangjeong Plants produce LCDs. 85. 40 sales subsidiaries. and 15 R&D centers. Company Profile 1. The Giheung. As of the end of 2006.300 in overseas subsidiaries. 28 . Samsung Electronics employs 149.000 people worldwide.‖ Digital: Market leading products. Of the total. Profile 1) Overview Samsung Electronics has continued to demonstrate rapid growth since its founding in 1969.
416. ltd. 3) Digital Appliance Business The Digital Appliance Business makes premium refrigerators.. Semiconductor. ovens.January 13. notebook PCs.Jong –Yong Yun Date established:. next-generation mobile phone technologies and led the HSDPA market. A premium brand image and distinctive designs have elevated Samsung into one of the world market leaders. DVD and Bluray disc players.156 subsidiaries and branches 1) Digital Media Business The Digital Media Business has the largest share of the world digital TV market.Samsung electronics co. 2 ) Telecommunication Network Business The Telecommunication Network Business includes mobile phones and telecommunication systems.000 Domestic worksites:-Eight plants Overseas network: . Headquarters address :. washers. air conditioners.korea. The Company has built a well balanced business portfolio which has made earnings less vulnerable to cyclical fluctuations in the IT sector 29 .Maetan 3 –dong.1969 Number of employees:-149.suwon.Company profile Company name: .eongtong-gu. Performance by Business Samsung Electronics produces a wide range of products which are categorized into five businesses: Digital Media. CEO: . printers and portable devices such as digital camcorders and MP3 players entertainment. vacuum cleaners and other appliances that are indispensible for modern homes. We have also led the standardization of Mobile WiMAX. and LCD. The unit also produces color monitors.gyeonggi-do. Standout designs and innovative technologies are leveraged to create new kinds of added value and offer products that meet customer needs to make Samsung a market leader 2. Telecommunication Network. Digital Appliance.
3) Digital Appliance Business The Digital Appliance Business makes premium refrigerators. People One of Samsung's strongest assets is our team of talented researchers and engineers.000 by 2010. and a strong commitment to ongoing investment. ovens. they collaborate on strategic technologies for the future and original technologies designed to forge new market trends and set new standards for excellence. At and among our 42 research facilities around the world. vacuum cleaners and other appliances that are indispensible for modern homes. 4) Brand Value Samsung Electronics has engaged in diverse marketing activities to elevate brand value. and new markets have to be pioneered continuously. As new technologies are being constantly introduced to the market. speed is essential for remain-ing competitive in today's digital era. We have also led the standardization of Mobile WiMAX. the Samsung Electronics brand value continued to increase. next-generation mobile phone technologies and led the HSDPA market. According to the survey. DVD and Bluray disc players.2 billion in 2006 from US$15. imaginative people. A brand value survey jointly conducted by Business Week and Inter brand in 2006 ranked Samsung Electronics in 20th place among all corporations in the world and 7th in the IT sector.0 in 2005 and US$12. a global R&D network. and we expect that number to surpass 50. air conditioners.1)Digital Media Business The Digital Media Business has the largest share of the world digital TV market. Through the interplay of creative.6 billion in 2004 Research & Development at Samsung Innovation is crucial to Samsung's business. washers. notebook PCs. an organization that encourages collaboration and cooperation among business partners all along the supply chain. 30 .000 people work every day in research and development. rising to US$16. A premium brand image and distinctive designs have elevated Samsung into one of the world market leaders.2) Telecommunication Network Business The Telecommunication Network Business includes mobile phones and telecommunication systems. The unit also produces color monitors. More than a quarter of all Samsung employees 42. Samsung has put R&D at the heart of everything we do. printers and portable entertainment devices such as digital camcorders and MP3 players . Standout designs and innovative technologies are leveraged to create new kinds of added value and offer products that meet customer needs to make kinds of added value and offer products that meet customer needs to make Samsung a market leader.
near Delhi. President & CEO. including the United States. Maldives and Bhutan besides India. Closely linked. Refrigerators and Washing Machines is located at Noida. CIS and SAARC countries from its Noida manufacturing complex. Mobile phones. these centers are tasked with hiring top-notch local talent. Japan and China. as well as other research centres and universities. Our research and development network spans six Samsung centers in Korea and 18 more in nine other countries. Mobile phones and Refrigerators are being exported to Middle East. Sri Lanka. J S Shin. looks after the Samsung business in Nepal. Samsung 'Made in India' products like Colour Televisions. and oversees the securing and management of technology. The Company is also manufacturing fully automatic front loading washing machines at its Sriperumbudur facility. Investment A critical way that Samsung responds to the highly uncertain business environment and the increasingly competitive marketplace is through our commitment to R&D. The R&D centers of each business focus on technology that is expected to deliver the most promising long-term results. Headquartered in New Delhi. The South West Asia Headquarters. the United Kingdom. Samsung is committed to leading technology standardization and securing intellectual property rights. Samsung's technology competitiveness in core business areas. Samsung India has widespread network of sales offices all over the country. Organization Samsung's R&D organization has three layers. Division product development teams are responsible for commercializing products scheduled to hit the market within one or two years. Samsung commenced the manufacture of Colour televisions and LCD televisions at its state–of-the-art manufacturing facility at Sriperumbudur. The Samsung Advanced Institute of Technology (SAIT). India. The Samsung manufacturing complex housing manufacturing facilities for Colour Televisions. Russia. Bangladesh. and bringing to life those technologies that offer the greatest benefits. under the leadership of Mr. Samsung home appliance sector in India Samsung India is the hub for Samsung's South West Asia Regional operations. Each year we invest at least 9% of our sales revenue in R&D activities. Tamil Nadu. Israel. investigating the latest local technology trends. identifies growth engines for the future. Global R&D Network Innovation is a global enterprise at Samsung. Samsung India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. 31 . In November 2007.
so Samsung products perceive as low quality as compared to competitors‘ products. because for the success of every organization human resource plays a major role. It is strong corporate brand and known for its quality products and advanced technology use. it can attract its target market and can get more market share. It also lacks in product differentiation. product design and human resource. Swot analysis of Samsung Vision Leading the digital convergence revolution growing to be the best. Samsung caters mass market instead of niche market so for this purpose it sets low prices of products and low price products seem as low quality products. STRENGTHS Samsung is technologically very advanced. Samsung focuses more towards the innovations and try to keep improving the products to attract more customers and capture more market share. The SWOT analysis of Samsung make it understand that where Samsung stand in the market. OPPORTUNITIES Through make itself distinctive from competitors. by introducing unique products and existing products with variety. without human resource no product can be made that‘s why Samsung gives more important to the human resource. Another opportunity is product variation. It attracts customers by offering new and innovative design through understanding the customers that which type of designs are suitable to customers and what they want or asked about. 32 . WEAKNESSES Although Samsung focuses innovation but it is not proactive to introducing new products. it has heavy assets of technology. By providing distinguish services it can increase its customer base. it can gain more market share. Mission Digital-e Company SWOT analysis is the tool which helps the organization to understand where it stands. It is known for its technologically advanced products. it waits to attack the competitors. Samsung crushed new product concepts in five months. It heavily invest in technology.
Future plans Samsung plans to create an apparitional digital lifestyle for the average Indian consumer with the introduction of innovative digital products that represent the absolute high end of technology and design. THREATS Samsung competitors in electronic market are more dominant e.g.As the demand for the cell phone is increasing as compared to other electronic market. Indian consumers today can experience the finest in technology in a world class environment. 33 . The emphasis is clearly on providing customers a richer and more informed buying. Samsung has the great chance to introduce user friendly mobile phones at affordable price. LG etc in home appliances and Nokia. The company believes that with an increasing footprint of Samsung Digital Worlds and Samsung Digital Homes. feel and experience the same Samsung is also investing in setting up the Samsung Marketing Academy to train sales personnel to engage in lifestyle selling. rim. It would help to beat customers and also to lead market share. Panasonic. The company also plans to set up 600 technology retail counters to bring technology closer to the consumers. Samsung advertisement is not excessive while the competitors advertise their products excessively which can take away the existing customers of Samsung. Sony. competitors also increasing so it is difficult for Samsung to establish in that industry.Digital World. 3G. etc in mobile phones market so it has to struggle a lot to be the market leader. Telecommunication industry is growing day by day so the no. The company also plans to revolutionist retail in the country by launching a massive retail rollout of its exclusive outlets . Digital Homes and Digital Plaza. it is more behind in this industry as compared to other electronic items. allowing them to touch.
Four P‘s:- 34 .
The Indian Home appliances industry is growing at the fastest pace in the world. The project provides a detailed account of the evolution of the Indian Home appliances industry and current trends in the locality of Gandhinagar. as a result of increasing competition in the Indian Home appliances industry.RESEARCH METHODOLOGY INTRODUCTION This project examines the emergence of innovation and value creation for enhancing customers' experience. SAMSUNG Home appliances Ltd. India adopted a phased approach for reforming the Home appliances sector right from the beginning. etc. It traces various developments in the industry before. The fast track growth of the Indian Home appliances industry has made it a key contributor to India‘s progress. during and after the liberalization of the Indian Home appliances sector. It also provides information about the increasing popularity of Home appliances which led to the emergence of several private Home appliances Companies like LG. 35 .
Why has this topic been selected: Because electronics product are used for daily usage. METHODOLOGY : - 1. People are loyal in used of electronics products Electronic product makes the work easier and faster. Method of data collection: Simple random (Questionnaire) 3. Satisfaction of customers . Understanding the buying behavior. Sources of the data: Primary data : By Questionnaire Secondary data: Net or company‘s sites. 36 . OBJECTIVES: Finding out the popularity of different company‘s products. Target population and sample size to be covered:Gandhinagar Households. Sample size: 100 2.
1 TO 13 QEUESTION‘S...
CHATS SORCE INTERPRITETION
QUESTIONNAIRE ANALYSIS Gender:
Gender Cumulative Frequency Valid Male Female Total 87 13 100 Percent 87.0 13.0 100.0 Valid Percent 87.0 13.0 100.0 Percent 87.0 100.0
It graphs shows that there are more male respondent than female respondent.
Cumulative Frequency Valid 10-20 21-30 30 and more Total 8 58 34 100 Percent 8.0 58.0 34.0 100.0 Valid Percent 8.0 58.0 34.0 100.0 Percent 8.0 66.0 100.0
There is more respondent‘s age between 21 to 30 year.
Profession Cumulative Frequency Valid service student privet others Total 38 34 12 16 100 Percent 38.0 34.0 12.0 16.0 100.0 Valid Percent 38.0 34.0 12.0 16.0 100.0 Percent 38.0 72.0 84.0 100.0
This chart shows that, respondents are more in no. of service men and students than private business holder and other.
0 16.0 16.0 100.0 This chart shows that.0 2. most of the family members are 1 to 5.0 98.0 100.0 Valid Percent 82.0 100.0 2. 41 . Of family member: No_of_family_members Cumulative Frequency Valid 1-5 6-10 11 and more Total 82 16 2 100 Percent 82.0 Percent 82. No.
42 . there more respondent‘s income is above 20000.0 50.0 Valid Percent 25.0 25.0 50.0 This chart shows that.0 100.0 100.0 100. Income: Income Cumulative Frequency Valid below 5000 10000-20000 21000 nd above Total 25 25 50 100 Percent 25.0 Percent 25.0 25. Below 10000 and 10000 to 20000 income group respondents are similar.0 50.
0 100.0 29.0 29.0 100.0 71.0 100.0 Percent 39.0 32. we found that more people prefer the TV of LG company TV than other company.0 32.Q.0 As per our survey in market.0 Valid Percent 39.1 Statistics Which product do you use from the following list?_tv N Valid Missing 100 0 Freeze 100 0 Which company do you prefer for TV from the following list? Cumulative Frequency Valid lg-tv samsung-tv other-tv Total 39 32 29 100 Percent 39. 43 .
44 .Frequency lg-freeze samsungfreeze otherfreeze Total 31 41 25 100 Percent 31 41 25 100 Valid Percent 31 41 25 100 Cumulative Percent 31 74 100 Frequency lg-freeze samsung-freeze other-freeze As per our survey in market. we found that more people prefer the FREEZE of Samsung Company FREEZE than other company.
45 .0 11.0 89.Q.0 49.0 Valid Percent 40.0 11.0 Percent 40.0 49.0 As per our survey.0 100. Samsung Company passes the correct message more effectively than LG and other company. we found that according to respondents.0 100.2 Which company's advertisements pass the correct message more effectively? Cumulative Frequency Valid lg samsung others Total 40 49 11 100 Percent 40.0 100.
0 According to respondents.0 66.0 100. Q.0 100. Samsung company provide the attractive massage but not quality product than LG company and other.0 Percent 24.0 42.0 Valid Percent 24.0 42.0 34. 46 .0 100.3 According to ypu which company provide atractive advertisement but not quality products? Cumulative Frequency Valid lg samsung others Total 24 42 34 100 Percent 24.0 34.
47 .0 Cumulative Percent 19. Q.0 20.4 How do you decide to purchase the product? Frequency Valid tv adv.0 23. There are less people who purchase the product with reference of internet data and seller‘s help.0 97.0 12.0 23.0 77.0 20.0 23.0 Valid Percent 19.0 42.0 23. they decide purchase the products with reference of newspaper advertisement. Newspaper friends & relatives internet data family discussion seller help Total 19 23 23 12 20 3 100 Percent 19.0 100. friends and relatives views and family discussion.0 100.0 3.0 3.0 12.0 According to respondents.0 100.0 65.
0 37.0 100.0 100.0 Valid Percent 63.0 Mostly TV advertisements attract the customer to buy the products than FREEZE advertisements. 48 .0 Percent 63. attract you to buy products? Cumulative Frequency Valid tv freeze Total 63 37 100 Percent 63.0 37.5 Does company's adver.0 100. Q.
49 .0 100. Q.0 Percent 39.0 Valid Percent 39.0 100.0 100.0 17.0 83.0 44.6 According to you which company provide best quality at moderate price? Cumulative Frequency Valid lg samsung others Total 39 44 17 100 Percent 39.0 17.0 According to respondents Samsung provide best quality at moderate price than LG and others.0 44.
After that they give preference to electric showroom and malls.0 64.0 100.0 9.0 Cumulative Percent 37.7 From which source do you purchase? Frequency Valid company showroom Elec.0 2.0 89.0 9.0 Valid Percent 37. 50 .0 25.0 2.0 100.0 According to our respondents.0 100.0 25.showroom Mall Road show Other Total 37 27 25 9 2 100 Percent 37. Q.0 98.0 27.0 27. mostly people prefer to purchase the products from company showroom. They give less preference to road shows and others.
Q.For LG.quality of product 100 responce to consumer need 100 commitment to protecting environment 100 product/service are reasonably priced 100 Truthfulness of adverticement 100 Emotional connection/appeal 100 overall perception of the company 100 51 .8_LG sheare views on the following elements of the company.
5 16.0 Cumulative Percent 8.For LG.0 45.0 Valid Percent 8.quality of product Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 8 17 45 22 8 100 6 106 Percent 7.5 94.3 5.0 70.0 100.0 25. according to respondents LG‘s quality of product and services are average 52 .0 8.0 22.0 92.8 7.7 100.0 100.0 17.0 42.sheare views on the following elements of the company.0 As per our survey.5 20.
7 29.0 31.0 Valid Percent 8.0 23.0 100.7 .2 29.0 99. LG give response to consumer need is average.5 21.0 31.00 Total Missing Total System 8 23 31 31 6 1 100 6 106 Percent 7.0 31.0 93.0 According more respondents.2 5.9 94. 53 .7 100.0 6.0 62.0 Percent 8.responce to consumer need Cumulative Frequency Valid poor below average average above aveg excellent 53.3 5.0 1.0 100.
0 27.0 100.4 94.0 Percent 6.0 Valid Percent 6.9 33. 54 .0 89. LG‘s commitment to protecting environment is average.7 100.0 11.commitment to protecting environment Cumulative Frequency Valid Poor below average average above aveg excellent Total Missing Total System 6 19 35 29 11 100 6 106 Percent 5.0 25.0 60.0 100.0 According more respondents.0 29.3 5.7 17.0 35.0 19.4 10.
0 22.0 12.0 27.0 According more respondents.0 100.0 66.0 Percent 3. LG‘s products and services reasonably price are average 55 .6 36.product/service are reasonably priced Cumulative Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 3 24 39 22 12 100 6 106 Percent 2.8 11.8 20.8 22.3 94.0 24.7 100.3 5.0 Valid Percent 3.0 100.0 88.0 39.
0 23.0 100.7 100.0 Percent 6.0 92.0 100.0 29.7 21.0 28.0 64. LG‘s truthfulness of advertisement is average 56 .0 26.0 35.3 5.Truthfulness of advertisement Cumulative Frequency Valid poor below average average above aveg excellent Total Missing Total System 6 23 35 28 8 100 6 106 Percent 5.7 33.0 8.5 94.0 According more respondents.0 Valid Percent 6.4 7.
0 100.0 65.9 35.0 Percent 7.8 21.3 5.0 100.7 11.0 20.Emotional connection/appeal Cumulative Frequency Valid poor below average average above aveg excellent Total Missing Total System 7 20 38 23 12 100 6 106 Percent 6.0 Valid Percent 7.0 12.6 18.0 88.0 27.3 94.7 100.0 According more respondents.0 23.0 38. people‘s emotional connection with LG is average 57 .
0 100.0 15.0 16.0 25.0 60. 58 .0 100.1 38.0 85.6 14.0 19.7 100.0 Percent 3.0 Valid Percent 3.0 According more respondents.2 94.0 41. people‘s overall perception towards the LG is average.3 5.overall perception of the company Cumulative Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 3 16 41 25 15 100 6 106 Percent 2.7 23.8 15.
8_ samsung Statistics sheare views on the following elements of the company.For Samsung.quality of product N Valid Missing 100 0 responce to consumer need 100 0 commitment to protecting environment 100 0 product/service are reasonably priced 100 0 Truthfulness of adverticement 100 0 Emotional overall perception of the connection/appeal company 100 0 100 0 59 .Q.
0 100.0 33.sheare views on the following elements of the company.0 100.0 35.0 100.0 Valid Percent 7. 60 .0 26.0 According more respondents.0 28.0 4. SAMSUNG provide average quality of product and services.0 35.0 28.quality of product Cumulative Frequency Valid poor below average average above aveg excellent Total 7 26 35 28 4 100 Percent 7.0 Percent 7.0 26.For Samsung.0 68.0 4.0 96.
0 10.0 29.responce to consumer need Cumulative Frequency Valid Poor below average Average above aveg Excellent Total 13 20 28 29 10 100 Percent 13.0 61.0 10.0 33. SAMSUNG give response to consumer need is average.0 100.0 28.0 100.0 29.0 90.0 100.0 According more respondents.0 Percent 13.0 28.0 20. 61 .0 Valid Percent 13.0 20.
0 38.0 19. 62 .0 38.0 Percent 3.0 7.0 100.0 60.0 100.commitment to protecting environment Cumulative Frequency Valid poor below average average above aveg excellent Total 3 19 38 33 7 100 Percent 3.0 Valid Percent 3.0 19.0 22.0 According more respondents.0 93. SAMSUNG‘s commitment to protecting environment is above average.0 33.0 7.0 33.0 100.
0 100.0 1.0 28.0 13.0 Valid Percent 4.0 58.0 100.0 13.0 99.0 23.0 1.0 According more respondents. SAMSUNG‘s product and services prices are average. 63 .0 Percent 4.product/service are reasonably priced Cumulative Frequency Valid poor below average average above aveg excellent 13.0 100.0 28.0 23.0 86.0 31.0 31.0 27.00 Total 4 23 31 28 13 1 100 Percent 4.
0 23.0 100.0 14.Truthfulness of adverticement Cumulative Frequency Valid Poor below average Average above aveg Excellent Total 9 28 26 23 14 100 Percent 9.0 26.0 28.0 14.0 100.0 26.0 37.0 23.0 Valid Percent 9.0 63.0 Percent 9.0 28.0 86. SAMSUNG‘s truthfulness of advertisement is below average 64 .0 100.0 According more respondents.
0 8.0 33.0 Percent 4.0 Valid Percent 4.0 33.0 According more respondents.0 31.Emotional connection/appeal Cumulative Frequency Valid poor below average average above aveg excellent Total 4 24 31 33 8 100 Percent 4.0 100.0 100.0 100.0 92.0 28.0 8.0 59.0 24.0 24. people‘s emotional connection with SAMSUNG is above average. 65 .0 31.
0 84.0 Valid Percent 6.0 100.0 16.0 Percent 6.0 100.overall perception of the company Cumulative Frequency Valid poor below average average above aveg excellent Total 6 19 27 32 16 100 Percent 6.0 32.0 100.0 16.0 27.0 According more respondents. 66 . people‘s overall perception towards the SAMSUNG is average.0 19.0 19.0 32.0 25.0 27.0 52.
0 Percent 77.0 100. 67 .0 100.9 Do you wait for special festival offers? Cumulative Frequency Valid Yes No 77 23 Percent 77. Q.0 Valid Percent 77.0 23.0 As per our survey.0 Total 100 100. more people are wait for the special offer in festival for purchase products.0 23.
0 Valid Percent 24. 68 . Q.0 75.0 31.0 31.0 Cumulative Percent 24.0 16.0 20.0 9.0 44.0 100. Company less provide facility of future purchase discount.0 20.10 which is the after sales service provided by the company /dealer? Frequency Valid after sales service free service maintenance free home delivery free instillation & replacement Future purchase discount Total 24 20 31 16 9 100 Percent 24.0 91.0 As per our survey.0 100. company provides more extra facility of free home delivery. and also they provide after sales service and free service maintenance.0 9.0 16.0 100.
5 Percent 51.0 15.0 99.3 84.0 100. 69 . How will you dispose old TV? Cumulative Frequency Valid tv-exchange with the same company tv-exchange with the same other company tv-scrap Total Missing Total System 15 99 1 100 15.5 As per our survey.2 100.0 1.8 51 Percent 51.0 100. more than 50 % people like to dispose old TV exchange TV with same company.11 TV.0 33 33. Q.0 Valid Percent 51.0 33.
0 100.0 100. more than 50 % people like to dispose old TV exchange TV with other company.0 51.Freeze: How will you dispose old freeze? Cumulative Frequency Valid freeze-exchange with the same company freeze-exchange with the same other company freeze-scrap Total Missing Total System 19 99 1 100 19.3 As per our survey.8 29 Percent 29. 70 .0 19.2 100.3 Percent 29.0 Valid Percent 29.0 1.5 80.0 51 51.0 99.
6 10. more people like to exchange their LG Company‘s TV after 2 year.0 Valid Percent 33.0 15.12 LG Will you exchange recently bought LG TV for new scheme offered by the company? Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 19 16 6 15 56 44 100 Percent 19.0 Percent 33.0 44. 71 .0 16.9 62.5 73. Q.0 100.0 Frequency after 2 yr after 4 yr after 5 yr more than 5 yrs According to respondents.0 6.0 56.7 26.8 100.9 28.2 100.
0 61.0 100.LG_freeze Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 5 15 13 6 39 61 100 Percent 5.3 15.0 15.6 100.4 100.0 Frequency after 2 yr after 4 yr after 5 yr more than 5 yrs According to respondents.8 38.0 6.5 33. more people like to exchange their LG Company‘s FREEZE after 4 year.0 Percent 12.0 39.3 84. 72 .8 51.0 13.0 Valid Percent 12.
0 Valid Percent 13. more people like to exchange their SAMSUNG Company‘s TV after 4 year.6 24.0 11.0 16.4 100.3 40.6 100.0 100.0 45.0 55.0 Percent 13.0 Frequency after 2 yr after 4 yr after 5 yr more than 5 yrs According to respondents.7 35.0 12.0 75.SAMSUNG: Samsung_TV Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 6 12 16 11 45 55 100 Percent 6.3 26. 73 .
3 20.0 Percent 11.0 100.0 11.0 Valid Percent 11. 74 . more people like to exchange their SAMSUNG Company‘s FREEZE after 5 year.0 47.3 32.7 100.8 30.3 100.Samsung_freeze Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 6 11 16 20 53 47 100 Percent 6.0 Frequency after 2 yr after 4 yr after 5 yr more than 5 yrs According to respondents.0 53.0 20.2 37.0 16.1 62.
75 .13 As per your view which product is best of LG company? Frequency lg-tv lg-freeze Total 55 45 100 Percent 55 45 100 Frequency 60 50 40 30 20 10 0 lg-tv lg-freeze Frequency According to respondents TV is best product of LG Company than freeze. Q.
76 .SAMSUNG: Frequency samsungtv samsungfreeze Total 46 52 100 Percent 46 52 100 Frequency 53 52 51 50 49 48 47 46 45 44 43 samsung-tv samsung-freeze Frequency According to respondents FREEZE is best product of SAMSUNG Company than TV.
77 .HYPOTHESIS Chi-square method.
540 100 df 4 4 1 sided) . (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.025a 5.0% N 0 Missing Percent . 2 cells (22. 78 .285 .267 2.261 .0% N 100 Total Percent 100.0% Chi-Square Tests Asymp. The minimum expected count is 4.25.111 a.2%) have expected count less than 5.HYPOTHESIS Chi-square table of income and customer preference of moderate price and satisfaction [question-6] income * According to you which company provide best quality at modrete price? Crosstabulation Count According to you which company provide best quality at modrete price? Lg Income below 5000 10000-20000 21000 nd above Total 7 11 21 39 samsung 12 8 24 44 others 6 6 5 17 Total 25 25 50 100 Case Processing Summary Cases Valid N income * According to you which company provide best quality at modrete price? 100 Percent 100. Sig.
00 Total 0 0 43 1 1 47 0 0 2 1 1 92 lg-tv lg-freeze 14 29 samsung-freeze 36 9 3.586a 27.080 5.000 . 79 .7%) have expected count less than 5.00 4.000 . Chi square table for customers view which company provide best product for LG and SAMSUNG Case Processing Summary Cases Valid N As per your view which company's and product is best?_lg * samsung 92 Percent 92. Sig.0% As per your view which company's and product is best?_lg * samsung Crosstabulation Count Samsung samsung-tv As per your view which company's and product is best?_lg 3. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 24. 8 cells (66.300 92 df 6 6 1 sided) . The minimum expected count is .0% N 8 Missing Percent 8.02.021 a.00 0 2 Total 50 40 Chi-Square Tests Asymp.0% N 100 Total Percent 100.
489 Elec.0% N 0 Missing Percent .058a 36.480 100 df 20 20 1 sided) .013 . newspaper friends & relatives internet data family discussion seller help Total Chi-Square Tests Asymp.showr oom 9 4 7 8 4 0 6 2 27 mall 2 8 7 1 7 0 25 Road show 1 3 1 4 0 0 9 other 0 0 0 1 1 0 2 Total 19 23 23 12 20 3 100 11 6 6 1 37 80 .0% How do you decide to purchase the product? * From which source do you purchase? Crosstabulation Count From which source do you purchase? company showroom How do you decide to purchase the product? tv adv.033 . Sig. Chi square table for customers from which source they came to know about product and from which source they purchase. Case Processing Summary Cases Valid N How do you decide to purchase the product? * From which source do you purchase? 100 Percent 100. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33.657 .0% N 100 Total Percent 100.
058a 36. Sig.108 .480 100 df 20 20 1 sided) .0% N 100 Total Percent 100.553 100 df 4 4 1 sided) . Sig.0% income * Do you wait for special festival offers? Crosstabulation Count Do you wait for special festival offers? yes income below 5000 10000-20000 21000 nd above Total 21 23 33 77 no 4 2 16 22 3.584a 8.076 .450 4.3%) have expected count less than 5.Chi-Square Tests Asymp.00 0 0 1 1 Total 25 25 50 100 Chi-Square Tests Asymp.033 81 .013 .657 .0% N 0 Missing Percent .033 . (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7. Chi square table shows the relation between people‘s income and their preference for special festival offer Case Processing Summary Cases Valid N income * Do you wait for special festival offers? 100 Percent 100. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33. The minimum expected count is .06. 19 cells (63.489 a.
450 4.108 .584a 8. 3 cells (33. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.033 a. 82 .553 100 df 4 4 1 sided) . The minimum expected count is .25.3%) have expected count less than 5.Chi-Square Tests Asymp.076 .
Bibliography Annexure 83 .
Bibliography 84 .
As a part of are project research on ―Home appliance comparative study on select home appliance LG and Samsung‖ under the guidance of Professor Amish Soni.R.GLS Ahmedabad. we request you to spare a few minutes and share your views on the Home appliance comparative study of the company whose product/services you are consuming.000 Above 20. Name: Age: Education: _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ Female 10. We assure you that the information disclosed will be used only for academic purpose.000-20.Institute of Business Management .000 No. N.Annexure Questionnaire Dear Respondent. Of members: Profession: Gender: Male Income: Below 5000 1) Which Product do you use from the following list? Company TV LG Samsung Others Product Refrigerator 2) Which Company‘s Advertisement Pass the correct Message more effectively? LG Samsung Others 3) According to you which company provide attractive Advertisement but not quality products? 85 .
LG Samsung Others 4) How do you decide to purchase the product? TV Advertisement Newspaper Advertisement Friends & Relatives Internet Data Family Discussion Seller Help 5) Does company‘s Advertisement attract you to buy the Products? Product Please Tick Mark TV Refrigerator 6) According to you which company provide best quality at moderate price? LG Samsung Others 7) From which source do you purchase? Company Showroom Electric Showroom Mall Road Show Others 86 .
LG :Extremely Poor Quality of products/service Response to consumer needs Commitment to protecting environment Products/Services are reasonably priced Truthfulness of advertisement Emotional connection/appeal Overall perception of the company Below Average Average Above Average Excellent Samsung:Extremely Poor Quality of products/service Response to consumer needs Commitment to protecting environment Products/Services are reasonably priced Truthfulness of advertisement Emotional connection/appeal Overall perception of the company Below Average Average Above Average Excellent 9) Do you wait for special festival offers? Yes No 87 .8) Share your views on the following elements of the company. Please put a tick mark (√) against each of these elements.
Thank you for your time.10) Which is the after sales service provided by the company/company dealer? After sales service Free service maintenance Free home delivery Free instillation & replacement Future purchase discount 11) How will you dispose old product? Product Exchange with the company same Exchange with the same other Scrap TV Refrigerator 12) Will you exchange recently bought product for new scheme offered by the company? Company LG Product TV Freeze Samsung TV Freeze After 2 year After 4 year After 5 year More than 5 yrs 13) As per your view which company‘s and product is best? LG Samsung ::TV TV Freeze Freeze 14) Give your suggestion it‘ll help us. 88 .
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