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“BRANDING & PROMOTION”
SUBMITTED BY ARUN . SINGH (PGDM) Department of Management & Social Research, Tirpude College of Social Work (BATCH 2010-2012)
Branding & Promotion
I, Mr. Arun Singh hereby declare that the project entitled “Branding & Promotion” carried out at LG Pvt. Ltd. is a genuine work of P.G.D.M. (Marketing) 2nd semester course. To the best of my knowledge any part of this context has not been submitted earlier for any Degree, Diploma or Certificate Examination.
Mr. Arun Singh
Branding & Promotion
I owe my gratitude to LG Pvt. Ltd., Nagpur for providing me the opportunity to undergo 4 months summer training, especially Mr Ashish Mathur, Regional Manager for allowing me to work on the project.
It is my foremost duty to express my deep sense of gratitude and respect to Branch Manager Mr.Milind Lende for his valuable guidance as well as for mentoring me, taking active interest throughout the project, sharing his insights on the topic and for being a constant source of inspiration.
I would like to give sincere thanks to everyone in LG Pvt. Ltd., for their extreme help, self guidance, cooperation and friendliness; they did it in one way or other for successful completion of the project. I am greatly acknowledged by their kind help.
Branding & Promotion
SR. No. 1. 2. 3. Executive Summary Objectives & Scope of the project Company Profile
PAGE NO. 05 07 08
Data Analysis & Interpretation
Conclusions & Suggestions
Limitations of the Project
Branding & Promotion
The rising income levels double-income families and consumer awareness are the main growth drivers of the industries.Executive summary Indian Consumer durables market used to be dominated by few domestic players like Godrej. Ltd (LGEIL) will invest nearly Rs 500 Cr in India this year in research and development. REFRIGRATOR. The company. Branding & Promotion Page 5 .500 Cr and market share of 26 per cent. SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market. having a turnover of Rs 9. AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG. is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development. besides launching new platforms in information technology and related areas. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV. Consumer durables major LG Electronics India Pvt. brand-building and other marketing initiatives.The CTV segment is expected to the largest contributing segment to the overall growth the industry. although the penetration level is much lower . Voltas Allwyn and Kelvinater.
The campaign. for which IT infrastructure has been set up.LG‟s innovative „211 campaign‟ to provide quality after-sales service. includes the company‟s response to customer complaint within two hours. The fixing time for complaints varies from one hour to a maximum of 24 hours. will also be expanded from the existing 22 to 40 cities by next month. Branding & Promotion Page 6 .
To enhances the knowledge about the marketing and branding activity. Find out the positional dealer who can sale the LG product in large volume.Objective of the project Primary objective The main objective of filed survey during the project was to find out the market share of the LG and also calculate the display share. The main objective of research was to identify potential dealer and development these dealer. So LG can make them their direct dealer. While purchasing the consumer durables which parameter is most important for the consumer? Do the consumers prefer the financial facility for buying consumer durable? How frequently consumers change the consumer durable? To enhances the knowledge of consumer durable market. Secondary objective The Objective was to find out that how far the exhibitions are helpful in branding. Find out the problem faced by the dealer in sales and the distribution. This will ease the dependence on the some big dealer like Maharashtra and Mahaveer electronics. Branding & Promotion Page 7 .
COMPANY PROFILE Branding & Promotion Page 8 .
Fun workplace Branding & Promotion Page 9 . Market leadership.VISION Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company GROWTH STRATEGY “Fast innovation. People leadership” CORPORATE CULTURE No excuse. “we” not “I”. Fast growth” CORE COMPETENCY “Product leadership.
The curving of the slogan reinforces LG's personality and uniqueness. seal. The LG Electronics Life's Good signature consists of the LG logo. "Life's Good" set in Charlotte sans typeface curved around the LG symbol. Branding & Promotion Page 10 . The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe. and the slogan.SLOGAN: "Life's Good" represents LG's determination to provide delightfully smart products that will make your life good.
Promises. The stylized image of a smiling face in the symbol conveys “Friendliness and Approachability”. Red color represents our friendliness and gives a strong impression of LG‟s commitment to deliver the best. The slogan of LG is “Life’s Good”. The logo in LG gray 2. Benefits. Focused & Confident”. Personality. The stylized image of human face in the unique LG red color.LG philosophy is based on humanity. The circle symbolizes The Globe. The letter “L” and “G” in a circle symbolizes world. The symbol consists of two elements. humanity & technology. It expresses “Brand’s Value. Branding & Promotion Page 11 .THE SYMBOL: The symbol of LG is the face of future. youth. The one eye on the symbol represents “Goal-oriented. future. It also represents LG‟s efforts to keep close relationship with our customers around the world. 1.
is of key significance in terms of strengthening the existing industry and creating a new one. Such a relationship is transformed into a value-creation relationship whereby both parties endeavor to address mutual problems and create new values together. Branding & Promotion Page 12 . This culture is necessary for LG Electronics as it strives to become one of the world's top companies. "Strategic association between corporations. but in a horizontal one." in which companies with different infrastructures cooperate in the fast-developing 21st century business field. STRATEGIC ALLIANCE LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies. This illustrates that management and workers are not in a vertical relationship. LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies.THE PARTNERSHIP LG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship.
INTRODUCTION Branding & Promotion Page 13 .
their well-acknowledged brands. the demand for consumer durables has increased significantly. there are still very few players in categories like vacuum cleaners. accounting for no less than 90% of the market. and Aiwa came into the picture. Allwyn. microwave ovens. and introduction of new models. Godrej. air conditioners. and hold over wide distribution network. color televisions (CTVs) are no longer considered luxury items. and Voltas were the major players in the consumer durables market. and dishwashers Consumer durables sector is characterized by the emergence of MNCs. Branding & Promotion Page 14 . Products like washing machines. only a few companies like Kelvinator. after the liberalization. Samsung. the penetration level of the consumer durables is still low in India. The market share of MNCs in consumer durables sector is 65%. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market. discounts. Consumer durables market is expected to grow at 10-15% in 2007-2008. Daewoo. foreign players like LG. easy availability of finance. MNC's major target is the growing middle class of India. Then. increase in consumer awareness. It is growing very fast because of rise in living standards. Whirlpool. Sony. However. exchange offers.Before the liberalization of the Indian economy. these players control the major share of the consumer durables market. and intense competition. Today. However. and wide range of choice. easy access to consumer finance. as many foreign players are entering in the market With the increase in income levels.
non-kitchen appliances. personal care product etc. 5. microwaves. vacuum cleaners. Branding & Promotion Page 15 . Consumer electronic include Vcd/Dvd. air conditioners. etc 2. kitchen appliances. In term of purchasing power parity (ppp).Classification of consumer durables sector 1. cameras. Indian consumer durable market is expected to reach $400 billion by on 2010 3. There are 56 million people in middle class. who are earning us$4. India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. Mobile phones Scope:1. White goods include dishwashers.800 a year. And there are 6 million rich household in India.2 million in 2007 as against 14. The upper-middle and high-income household in urban areas are expected to grew to 38. 2. Moulded luggage include plastics 4. Hi-Fi. heaters.6 million in 2000 . music player. 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. India has the youngest population amongst the major countries. home theatre.400US$21. built-in appliances. portable audio. Tumble dryer. camcorders. washing machines. refrigerators. Clocks and watches 5. color television (CTVs). 3. 4.
e. increase in purchasing power of consumers. Easy availability of finance. Unexploited rural market. 4. Cheap imports from Singapore. Increase in income level. Threats:Higher import duties on row materials. 5. 3. 2. Rapid urbanization. China and from other Asian countries. In India the penetration level of white goods is lower as compared to other developing countries. i.Opportunity:1. Branding & Promotion Page 16 .
exchange offers. discounts. MNCs offer superior technology to the LG. besides launching new platforms in information technology and related areas. The company. having a turnover of Rs 9. MNC's major target is the growing middle class of India.Brands in consumer electronics sector: MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS PANASONIC SHARP HITACHI SANSUI AKAI AIWA WHIRLPOOL ELECTROLUX NATIONAL ) ) ) ) ) ) KOREA ONIDA VIDEOCON BPL GODREJ VOLTAS IFB REGIONAL BUSH CROWN SALORA T-SERIES WESTON BELTAK OSKAR CHINA HOLLAND ) ) ) ) ) JAPAN ) TODAY Consumer durables sector is characterized by the emergence of MNCs. SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. Branding & Promotion Page 17 . and intense competition.500 Cr and market share of 26 per cent. is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development. The market share of MNCs in consumer durables sector is 65%.
LG Pune History of company:- The company was originally established in 1958 as Gold Star. Before briefing.LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. while electronic products were sold under the brand name of Gold Star. Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. Branding & Promotion Page 18 . from which the abbreviation of LG was derived.000 executive and employees. Gold Star was renamed LG Electronics. 1. The Gold Star brand is still perceived as a discount brand. As a result. The LG Group was a merger of two Korean companies. and acquired Zenith Electronics of the United States. household products were sold under the Brand name of Lucky. and air conditioners. The current "Life's good" slogan is a backronym. producing radios. In 1995. LG Electronics controls 110 local subsidiaries in the world with around 82. I have divided the introduction part into three main sub parts. refrigerators. washing machines. TVs. LG Global 2. . LG India 3. Before the corporate Name change to LG. Lucky and Gold Star.
LG Chemical 3. LG Twins 6. e) Vacuum Cleaners. LG Dacom Business areas and main products Mobile communications (a) CDMA Handsets. c) Microwave Ovens.LG Group 1. (b) GSM Handsets.Philips LCD 2. (d) Cellular Phones Digital appliance a) Air Conditioners. g) Compressors for Air Conditioners and Refrigerators Branding & Promotion Page 19 . LG Powercom 5. b) Refrigerators. LG Telecom 4. (c) 3G Handsets. f) Home Net. d) Washing Machines. LG.
b) LCD TVs. g) USB Memory. c) Micro Display Panel TVs. g) PDAs. j) New Karaoke Systems. b) DVD Recorders.Digital display a) Plasma TVs. d) CD±RW. e) PDP Modules. h) PDA Phones. h) Flat Panel Computer Monitors Digital media a) Home Theater Systems. i) MP3 Players. k) Car Infotainment Branding & Promotion Page 20 . d) Monitors. f) Desktop PCs. f) OLED Panels. c) Super Multi DVD Rewriters. e) Notebook PCs.
INTEL 11. 3M 2. MICROSOFT 7.TOSHIBA 16. PHILLIPS 5. GOOGLE 9.PRADA 14.HITACHI 13.RENESAS 15. SUN 3. HP 8.NORTEL 12. 1. YAHOO 4.LG Electronics will do its best to create new products and services with an open mind. GE 10. while developing new technologies and business fields through various associations with some of the world's most successful companies. TOYOTA 6.BESTBUY Branding & Promotion Page 21 .
and offer LG mobile phones with Google services (search engine. In Mar. 2007 LG Electronics and Yahoo formed a strategic alliance.And the number follows many more………………………….) LG BRAND IDENTITY:The brand of LG is delightfully smart. market. email. institutive functionality and exceptional performance. Value Promise Benefits Personality Branding & Promotion Page 22 . In Feb. The brand platform:The LG brand is composed of four basic elements – 1. Yahoo mobile services will be available from LG mobile. 2007 LG Electronics and Google formed a strategic alliance. Both companies will work together to release. 3. 2. 4. and blogs. map. LG strives to enhance the customer‟s life and lifestyle with intelligent features. This service is targeting 10 million LG mobile phones in over 70 countries..
a. Trust. Innovation.The Brands core Value that never changes. People Passion The benefits that are consistently delivered to the customer includes Reliable products Simple design Ease of use Extraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy. Friendly Branding & Promotion Page 23 . c. Considerate Practical. b. d.
The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth. Boundary less Environment means that there is no difference between the levels of employees. Learning Culture 2. Growth According to LG. Growth in LG is very high for those who are in the company and for those who want to join in LG. Boundary less Environment 3. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality. A Carrier 4. the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning.The Internal Culture of LG: LG practices four cultures 1. There is transparency between the work and mutual understanding between all the employees. Branding & Promotion Page 24 . A carrier is highly growing in LG and one who is the employee can develop their carrier largely.
The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. 5. 3. 4. 6. 2. Product Leadership We are focusing on six development areas to become the product leader. New Machine Reliability Conventional Installation Environment Friendly Product Low Noise & Vibration Energy Saving Branding & Promotion Page 25 .Mission The mission of LG is to provide the customers with utmost satisfaction through leadership. 1.
Creating value for customer Branding & Promotion Page 26 .Quality Innovation: The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.1 LG – is the VISION “Jeong-DO” Management is LG‟s unique application to ethics. From top to bottom: No. LG proceeds in a hierarchal manner. A) Honest with our customer b) Providing great values to customer through constant innovation & and development. LG will succeed through fair management practices and constantly developing our business skill. c) Equal opportunities d) Equal Treatment Management Principle . It is named as “LG WAY”.
Code of conduct of LG: 1. • • • • 2 • • 3 • • • 4 • • • • • 5 • • • Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value Fair competition Pursuit of Free Competition Compliance with Laws and Regulations Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity 6 Responsibilities to society and country • • • • Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation Branding & Promotion Page 27 .
India. The exercise will cost the company Rs 360 Cr. ''Company is setting up a chain of exclusive premium showrooms. in 1998. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. Kasna Road. LG set up a state-of-the art manufacturing facility at Greater Noida. AirConditioners and Microwave Ovens. Greater Noida. South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Ltd. Washing Machines. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. company will roll out a new marketing strategy. of which 45 are shoppes and 38 are exclusive stores. consumer durables leader with 27% market share. At present. a wholly owned subsidiary of LG Electronics.LG INDIA: LG Electronics India Pvt.. Udyog Vihar. Branding & Promotion Page 28 . LG has a total of 83 LG stores across the country. LG corporate office is located at Plot no. near Delhi. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings. To attract inspirational and young consumers across India. LG Electronics India Ltd (LGEIL). with an investment of Rs 500 Crs. is planning a brand new image. This facility manufactured Color Televisions.51.
Branding & Promotion Page 29 . LG Electronics is continually providing. The said money will be used to market as well as manufacture new products. As per Shin's estimate. a strong work culture and loyalty to the organization. LG Electronics.8 billion rupees for investment purpose in India this year.LG Electronics India is the fastest growing company in the consumer electronics. has said that it expects the sale of its products in India to up by 15 per cent in 2008. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. Prominent consumer electronic company. home appliances. LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea. informed that its sales of GSM mobile phones. and computer peripherals industry today. the sales in 2008 would be around 110 billion rupees. LG Electronics Inc. color televisions. Motivated by a passion for technology. Moon Bum Shin. We at LGSI focus on niche technology areas such as mobile application development. superior technology products & value for money to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this year. In order to achieve its target.4 billion) in 2007. digital video broadcast and biometrics software and support LG Electronics with our expertise. we are determined to see LG become one of the top three brands globally. managing director of LG Electronics India has said that the company has earmarked 4. which is originally a South Korean Company with branch in India. air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2.
CTV has “Golden eye technology” Air conditioner has “Health air system” and microwave ovens have the “Health wave system”. 2. by sponsoring the 1999 world cup followed it up in 2003 as well.Challenges in India The challenges faced by LG when entered in Indian market 1. Launch new technologies in consumer electronic and home appliances. Price sensitiveness of the Indian consumer LGEI over comes these challenges to emerge as Innovative marketing strategy 1. Panasonic entered in 1995 in India). 3. LG was the first brand to enter in cricket in big way a way. Branding & Promotion Page 30 . 3. Compitition from local market players and other MNCs in consumer durable segment. LG has differentiated its product using technology and health benefits. One of the last MNCs entered in India (Samsung. 4. Low brand awareness about LG in India. 5. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more then US$ 8 million on advertising and marketing in this sport. High import duty 4. 2.
Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product. C. LG also follows the stock rotation policy rather then dumping stock on channel partners. class market. Regional channel and wide distribution network 1. This has helped LGEI to reduce cost. R&D potential LG has the research and development facilities in Bangalore and Pune. LGEI implementing the “Digital manufacturing system” (DMS) as the cost cutting innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier.Local and efficient manufacturing to reduce the cost To overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and Pune. D. This has resulted in quicker rotation of the stock and better penetration into B. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. 2. Branding & Promotion Page 31 . LG has adopted the regional distribution channel in India. All the distributers work directly with the company.
The project involves Branding & Promotion Page 32 .To overcome high import duties. LG came out with Hindi and regional language menus on its TVs. It came out with Hindi and regional language menus on its TV.Product localization:- 1. Product localization is the key strategy used by the LG 2. 5. Regional distribution model . LG was the first brand to introduce gaming in TVs in continuations of its association with cricket LG introduce cricket game in CTVs MAJOR KEY SUCCESS FACTORS 1.Product localization is a key strategy used by LG. Delhi. Local and efficient manufacturing to reduce cost . Product localization . 4. Introduced the low-priced “Cineplus” and “sampooma” for the rural market. LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida. 3. Commissioned contract manufacturing at Mohali. 6. 3. Leveraging India‟s IT advantage . Innovative marketing . 2.LG was the first brand to enter cricket in a big way. by sponsoring the 1999 World Cup and followed it up in 2003 as well.LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI).This has resulted in quicker rotation of stocks and better penetration into the B. C and D class markets. 4. Kolkata and Bhopal for CTVs.
SCM. CRM and IT-enabled services for LG.development and support for ERP. Win –Win relationship with the trade partners 6. Transparent and fast communication-open communication 4. Foster working environment-5S Environment 2. 1. Be in touch with the market (70% Market. 30% Office). Customer is the king 7. Fast execution is key to success 3.Display share of 50% -to get 50% consumer share. Strategies adopted by the organization LG follows 10 commandments which are as follows. Update market -knowledge –Demographics 5. Even Billing –Road to ach supplier A 8. 9. Plan and Execute annual marketing Calendar-Time to market 10. Branding & Promotion Page 33 .
0% 60.LG market share of consumer appliances and consumer electronic:LG position of CTV in various states in India 90.0% 50.0% 20.0% 80.0% 10.0% 70.0% 80.0% 40.0% 40.0% 70.0% 30.0% 0.0% MADHYA PRADESH ANDHRA PRADESH MAHARASHTRA WEST BENGAL JHARKHAND RAJASTHAN BIHAR SAMSUNG LG SAMSUNG Branding & Promotion Page 34 .0% 50.0% 0.0% 20.0% KARNATAKA KERALA DELHI ORISSA LG ASSAM AND NORTH EAST UTTAR PRADESH (WEST) UTTAR PRADESH (EAST) GUJARAT HARYANA PUNJAB TAMIL NADU CHHATTISGARH LG position of REF in various states in India 90.0% 30.0% 60.0% 10.
0% 20.0% 50.0% 10.0% 30.0% 20.0% 50.0% 0.0% 40.LG position of WM in various states in India 80.0% KARNATAKA KERALA DELHI ORISSA UTTAR PRADESH (WEST) UTTAR PRADESH (EAST) LG SAMSUNG RAJASTHAN GUJARAT HARYANA PUNJAB TAMIL NADU ASSAM AND NORTH EAST CHHATTISGARH MADHYA PRADESH ANDHRA PRADESH MAHARASHTRA WEST BENGAL JHARKHAND BIHAR VOLTAS GODREJ Branding & Promotion Page 35 .0% 10.0% LG SAMSUNG LG position of AC in various States in India 70.0% 70.0% 60.0% 0.0% 60.0% 40.0% 30.
0% 0.0% 60.0% 0.0% 20.0% KERALA ORISSA KARNATAKA PUNJAB DELHI UTTAR PRADESH (WEST) UTTAR PRADESH (EAST) MADHYA PRADESH MAHARASHTRA GUJARAT CHHATTISGARH HARYANA TAMIL NADU ANDHRA PRADESH ASSAM AND NORTH EAST WEST BENGAL JHARKHAND RAJASTHAN BIHAR LG PHILIPS SAMSUNG VIDEOCON Branding & Promotion Page 36 .0% 50.0% 90.0% 80.0% 20.0% 40.0% 10.0% 40.0% 30.0% 30.0% PHILIPS LG SAMSUNG VIDEOCON LG position of DVD in various in India 70.LG position of Audio & Home Theater in various in India 100.0% 70.0% 10.0% 60.0% 50.
LG Electronics Inc. This analysis represents the LG market position during the period of March 2008. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable.0% 10.0% 20. It shows that LG has captured maximum market share almost in every category. I select different brand in different category as per the market share and the demand of product in market.0% 40.0% 0. Moon Bum Shin.0% 60. has said that it expects the sale of its products in India to up by 15 per cent in 2008. managing director of LG Electronics India has said that the company has Branding & Promotion Page 37 .0% KERALA ORISSA UTTAR PRADESH (WEST) LG SAMSUNG KENSTAR HARYANA DELHI KARNATAKA PUNJAB UTTAR PRADESH (EAST) GUJARAT TAMIL NADU CHHATTISGARH ASSAM AND NORTH EAST MADHYA PRADESH MAHARASHTRA ANDHRA PRADESH WEST BENGAL JHARKHAND RAJASTHAN BIHAR GODREJ This analysis is based on the ORG survey conducted by LG which represent the LG position of different consumer durables in various states in India.0% 50.LG position of MWO in various states in India 70. Prominent consumer electronic company.0% 30.
Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. informed that its sales of GSM mobile phones. color televisions.earmarked 4. the sales in 2008 would be around 110 billion rupees. The Indian branch of LG exports to 40 countries. air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2. In order to achieve its target. India churns out six (6) per cent of LG Electronics global revenues of $42 billion.4 billion) in 2007. . Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007.8 billion rupees for investment purpose in India this year. Branding & Promotion Page 38 . The said money will be used to market as well as manufacture new products. As per Shin's estimate. LG Electronics.
M Road. the second largest city in India. 2004 -. installs a new GSM handset production line in the new Pune plant and uses it as its second-largest global GSM handset production line after the Qingdao plant in China. The three strategies for the Indian market that the global electronics giant disclosed. It is located in J. LG India will become the export hub for LG Worldwide. Branding & Promotion Page 39 . This plant manufactures all product including DVD writers and GSM mobiles. The company aims to touch an export turnover of $3 billion by 2010 from India.LG PUNE LG Pune is the branch office of LGEIL. Under this strategy LGE has projected 2007 revenues in India will exceed US$10 billion. Middle East and Africa markets by 2007. In 2004 LGEIL opened second factory which is located in Ranjangaon. Thus it became first company to manufacture DVD writer in India. included: penetrates the south-western market of India through the new Pune plant near Mumbai. striving to develop premium products and export 30% of India-manufactured products to Asia. in addition to the existing northern plant. The ODP plant aims to reach a manpower base of 1500 people and an investment of Rs 300 Cr till 2010. October 6. catering to the Middle East and African markets. 10 times that of 2004.LGE announced 3 growth strategies aimed at the 1. which will contribute to 30 per cent of the Indian arm's turnover. India. Pune.1 billion people of India making the Indian market the second largest global production base following China.500 by 2007. and expands the current 750 R&D staff in India to 1.
LG Electronics will invest a total of US$150 million in establishing facilities and boosting R&D efforts in India by 2007. and the company expands it to become a global GSM handset production base with a capacity of an annual 10 million units by 2010. The Pune plant in addition to its current manufacturing facility at Greater Noida will enable the company to enhance its consumer reach and reiterate it‟s commitment towards providing superior technology products to the India consumer. This way. and electronic ovens. India covers a total area of 211. as its main production bases. LG Electronics aims to penetrate the global market by using China and India as its core production bases. and US$54 million in securing R&D manpower and boosting other efforts. Specifically. The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of the domestic markets. the company is pushing to penetrate the global home appliance market. washing machines. monitors. it will invest US$53 million in the Pune second plant. while operating its plants in Changwon and Gumi.200 square meters and is currently equipped with a production line to manufacture 600. Branding & Promotion Page 40 . The company is set to add production lines of air conditioners. Through these strategies. LG Electronics is poised to install a GSM handset production line in the new Pune plant by early next year. by 2005. another US$43 million in establishing the GSM line. In connection with its three growth strategies for the Indian market.5 lakh units a year in the near future.000 TVs and one million refrigerators a year. Also. LG plans to upscale its operations to a figure of 2. Korea.LG Electronics‟ second new plant in Pune. The Pune GSM handset line envisages a capacity of manufacturing 2 million handsets annually.
Gujarat and Madhya Pradesh. resulting in a significant increase in its mass media expenditure for better brand visibility. Next year. In addition. LG had a marketing budget of Rs 320 Cr in 2007 with a 60:40 split in favor of below-the-line activities. one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. Haryana & Rajasthan respectively. Maharashtra & Goa and Punjab. Branding & Promotion Page 41 . LG has split its southern regional office into two. The other four regional offices take care of East. it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 1015%. LG is also repositioning its marketing spends.The key strategies being implemented include increasing the number of its regional offices from six to eight. In the coming year.
M AM DPT CAC A.T.M L. one chief accountant.M AC AM M. HA separate for GSM.Z.G I.M Road. and area sales manager of CE.LG Pune is the branch office of LGEIL. B.M Account SR. It is located in J.BSI ASI M. The organization structure is –one branch manager. The Pune branch has warehouse at wagholi.H.T AMGSM BSI GSM BSI GSM Branding & Promotion Page 42 . HA and separate for GSM. Marketing manager for CE.D A.
For dealer relationship they arrange dealer meting at several time in the year 7. They have LG exclusive shopee. Hoarding. 8. 9. Society and college activities are conducted. For the marketing of the products a number of activities are followed 1. 6.Distribution and Marketing The company has number of dealers and warehouses. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product. Day to day advertisement in leading newspaper. Exhibitions are conducted from time to time. 10. 5. 4. Discount at festival time. LG also uses the radio FM for the promotion activities. Branding & Promotion Page 43 . 2. banners are used so as to grab the attention of the costumers. category to know the performance of the dealers. 3. LG divide dealer in gold silver etc.Also provide capon and scratch card for festive season. Posters.
The operating responsibility of logistics is the geographical repositioning of raw materials. effective forward and reverse flow and storage of goods. energy. Right Handling Branding & Promotion Page 44 . Right Cost 5. inventory. material handling. work in process. from the source of production to the marketplace. and people. information. Right Time 2. implements and controls the efficient. warehousing. services. 5R’s of Logistic followed by LG: 1. and packaging. It involves the integration of information. It is difficult to accomplish any marketing or manufacturing without logistical support. which plans. and other resources like products. transportation. Right Place 3.The logistics (Supply Chain Management) Visit to warehouse of LG Pune at Wagoli Logistics is the art and science of managing and controlling the flow of goods. and finished inventories where required at the lowest cost possible. services and related information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics Management is that part of the supply chain. Right Condition 4.
LG Pune Distribution LG Pune comes under the western Distribution Region. Branding & Promotion Page 45 . etc. wholesalers. They come equipped with loading docks to load and unload trucks. Spare part warehouse The mother warehouse is that where the products from the factory are kept and from that warehouse. Branch Warehouse 3. customs. They are usually large plain buildings in industrial areas of cities and towns. or seaports. They also often have cranes and forklifts for moving goods. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers. the products are sent to the branch warehouse. exporters. transport businesses. airports. There are three types of Warehouse1. which are usually placed on ISO standard pallets loaded into pallet racks. Kolapur 3. Mother Warehouse 2. Pune 2. This region has following 1. Sholapur 4 Satara 5 Sangli The LG Factory is located at NOIDA & PUNE. or sometimes are loaded directly from railways. importers.
write off material Loc 5 – destroy the item Loc 6 .for repair 5’s of warehouse. Loc 3. Sorting 3. Simplification 5. Systematic Arrangement 4. Loc 4. Loc 1. Sweeping 2. 1.insurance claim Loc 4 . Self. In warehouse 7 locations is set up for the products.court case material Loc 7 .discipline Branding & Promotion Page 46 .The Pune warehouse is located near Wagoli. Loc 7 Loc 1 – selling Loc 2 . Loc 2. feet in area. which the LG strictly follow. Loc6.second sale Loc 3 . It is 13670 sq. Loc 5.
The above distribution time is the time of delivery of products from warehouse to the market place. which is followed in logistic through ERP. the products are pinup with 3-color paper to get the knowledge about the delivery. Red Card – To stop the product going into market. In LG. – 24 hrs. we have the following process. Green card – To allow the product for delivery in market. 2. 1. • Upcountry delivery . which the logistic department follows to fulfill the demand in the market at right time. Yellow Card – After the product labeled with green. Order Processing Invoicing Indenting Report Order Processing Invoicing Indenting Report Branding & Promotion booking for dealers /distributors after billing process/bill generation requirement (Pdt Unit to branch unit) distributed to all Page 47 . allow this to move in market Distribution Time:• Local delivery • Within 200 km.In warehouse. • Beyond 200 km. – 48 hrs. – 4 hrs. 3.12 hrs.
2 .Follow standard pick – ship process religiously. 3 & 5. 10 – Apply physical FMFO. there are two mode of dispersion of product from one place to another within. 3 . 8 – No inter – branch transfer without HO clearance. One has to follow the rule of “NO Smoking” within the warehouse Logistics Ten Commandments – Golden Rules 1 . These fire extinguishers are valid up to year 2011. there are 35 fire extinguishers to prevent the accidental hazard within the warehouse due to fire. 9 – PSI feeding into system by 25th of every month. 7 – File insurance claim within 2 days. Branding & Promotion Page 48 .In warehouse. 5 – Nil 30+ for FG – 2. Ensure 90% accuracy. shortage or excess – monthly 100% physical stocktaking. 6 – Nil transit damage. a) Hydraulic b) Manual In addition.Warehouse 5S – to be strictly followed – FG – 2.100% Bar-coding for all inward & outward transaction. Settle all claim all within 30 days. 5 & 7 to be properly maintained. 4 – No inventory mismatch.
100% Bar code scanner.Cost target achievement.Pallets for safety of material. 2.In transit material damage checking. 3.Natural events tracking. Equipments 1. 4. 2. 3. Branding & Promotion Page 49 .ERP – Invoice Generation Process. WAREHOUSE WITH THE EQUIPMENT.Problem 1.Hydraulic Trolleys for material movement.
WAREHOUSE: REFRIGERATOR AND CTV SECTION Branding & Promotion Page 50 .
and speed of response. stockiest and dealers. so critical for its success and so taken for granted in developed markets! In India. for want of a better description. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint. Branding & Promotion Page 51 . So what‟s stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they don‟t really care. or service provider determines what is included in any warranty (or guarantee) package. the pits. Brand Equity fanned out to MNC as well as Indian consumer durable companies. Customers support following the purchase of a product or service. labor costs. after sales service is. speed of response. This will include the duration of the warranty traditionally one year from the date of purchase. retailer. The manufacturer. In some cases. analysts and market researchers to get a feel of what‟s really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories.CUSTOMER SERVICE The best and the biggest international brands are here in India –but the irony if it all: where is the after-sales-service? So integral to a brand. items included/excluded. after-sales service might include additional training or helpdesk availability. but increasingly two or more year‟s maintenance and/or replacement policy. after-sales service can be almost as important as the initial purchase. and action taken. In the case of a service provider.
Y V Verma. director HR and management system.LG also had a big problem of after sale service in India. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India." Branding & Promotion Page 52 . Because of this problem many dealer in Pune region were not ready to sale LG product. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. The company aims to recruit 10. Because it very important in competitive market to provide the best service. During my project I also came to know that after sale service becomes the big issue in Pune region. LG Electronics said. Customers as well as dealer were facing the problem of after sale service. So it becomes the big issue.000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting. But LG has taken some solid steps towards improving customer‟s perception and experience of after sales service. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the GSM mobiles and the personal computer segments. "The Company was trying to find a solution for effective after sales service since last two years.
some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. the Service Division in Korea reports to the Global CMO. 2. Assam. it shows the company is ready to put our money where our mouth is. Gujarat. "The company has offered a scholarship to the selected students for the last six months of their training programme. Punjab. has already recruited 300 students and plans to beef up the number to 10.000 by the year-end. 4. At the top. 1. While the sale size may also be a nice multiple from nearest. 5. The company will invest Rs 8 Cr (Rs 80 million) in employee development programme this year with an aim to attain a 8 per cent attrition rate. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand. LG has the widest service network across the country." 3. (as mentioned in Dermot‟s public interview in ET on Wednesday). L G Electronics. and leveraged thus. 6. This shows commitment that Service must be made into a marketing differentiator.In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra. Branding & Promotion Page 53 . Delhi. with 1200 service centers. and Karnataka and is in the last leg of signing with Uttar Pradesh.
Branding & Promotion Page 54 .once you register your complaint. and can even contribute as a revenue center.) A company-owned service centre tries that much harder. It‟s a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities. in LG‟s case they work exclusively for LG. 9. set up an appointment for the next convenient day for you (hence the first 1). If the next convenient day for you is the next day. (Service in India generally works through authorized service centers.7. we will call you back in 2 hours (hence 2). 8. The first LG-owned service centre opened in Gurgaon. both of which revolve around prompt response. probably the first time after-sales service is being communicated in this fashion by any product company. that‟s great too. and show up in the promised 1-hour slot (hence the second 1). and thus not leveraging any mileage from it. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters. The company is promoting 211 through ATL. The company has introduced a 211 service . knows things better.
The exhibition was sponsored by Sakal group in which number of companies participated.CONSUMER SURVEY DURING EXHIBITION From 16th to 25th May a consumer exhibition was organized at the college of Engineering ground. EXHIBITIONS PICTURES SHOWING THE PRODUCTS Branding & Promotion Page 55 .
Research Methodology Branding & Promotion Page 56 .
Research methodology is considered as the nerve of the project. The project was based on the survey plan. Without a proper well-organized research plan. brand loyalty. conceptual structure. “Research Design is a plan. and focus market changes. education level. consumption pattern. occupation or Branding & Promotion Page 57 . In fact. Types of research are: Descriptive Research The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age. which work as a base for drawing conclusion and getting result. According to Kerlinger. The main objective of survey was to collect appropriate data. and strategy of investigation conceived as to obtain answers to research questions and to control variance. It is an important tool to study buyer‟s behavior. Therefore. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. sex. A research design specifies the methods and procedures for conducting a particular study. it is the key to the evolution of successful marketing strategies and programmers. it is impossible to complete the project and reach to any conclusion. research methodology is the way to systematically solve the research problem.
A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner. This is not necessarily true. where and how” of the subject under investigation.income. The objective of such study is to answer the “who. when. the researcher give sufficient thought to framing research. demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. Descriptive study can be complex. what. There is a general feeling that descriptive studies are factual and very simple. Branding & Promotion Page 58 . An exploratory study needs to be flexible in its approach. making projections of a certain thing. or determining the relationship between two or more variables. It is therefore necessary.
Besides.Questions and deciding the types of data to be collected and the procedure to be used in this purpose. The main characteristic of this method is that the researcher has no control over the variables. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. schools. as it exists at present. which has been taken by me. The reason for using such needs to be flexile in its approach. A major strength of survey research is its wide scope. retail stores. Another type of cross sectional study is survey result. Cross sectional studies are of two types: Field study and Survey. which need different techniques and skills. it may deal with household. Branding & Promotion Page 59 . and organizations. factories. In addition. it is economical as more information can be collected per unit of cost. Such studies are done in live situations like communities. A cross sectional study is concerned with a sample of elements from a given population. Detail information can be obtained from a sample of large population . or other entities. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Thus. he can only report what has happened or what is happening. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then.cut . Data on a number of characteristics from sample elements are collected and analyzed. it is obvious that a sample survey needs less time than a census inquiry. Although the distinction between them is not clear. there are some practical differences. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. dealers. Descriptive research is description of the state of affairs.
PUNE -1 PUNE-2 PUNE-3 PUNE BRANCH PUNE 1 PUNE 2 PUNE 3 PUNE-1 Includes the modern trade and they have direct billing from the branch office. According to sales the branch has designated as gold and silver sub dealers.DEALER MANAGEMENT Mapping of Pune region dealers. They have high turnover and the company depends heavily on them PUNE-2 includes the distributors. They have direct billing from the branch office.They have direct billing from distributors or from the branch office. Their turnover is not so high. In Pune region there were total 180 dealers including the up country side They have been divided into three categories on the basis of their turnover and the selling capacity. Branding & Promotion Page 60 .Their turnover is also high. but there are few sub dealers whose potential is quite high. PUNE-3 Includes the sub dealers .
OBJECTIVE OF THE STUDY The objective was to find out the market share of LG products. advantages. and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale. PICTURE SHOWING THE PRODUCT OF LG IN ONE OF THE SHOP Branding & Promotion Page 61 .
we have to plan the following four important aspects. At this stage. One of the important tools for conducting market research is the availability of necessary and useful data. journals and various literature studies are important sources of secondary data. Sampling Research Instrument Secondary Data . Data analysis and interpretation 1.Data collection methods: After the research problem. we have to organize a field survey to collect the data. Primary data: For primary data collection. Questionnaires 2. Pie chart and Bar chart Branding & Promotion Page 62 . we have to identify and select which type of data is to research.The Company‟s profile.
This diagram consists of a circle of divided into a number of sectors. The one is Branding & Promotion Page 63 . which originate from a common base line and are equal widths. Bar chart: This is another way of representing data graphically. Pie chart: This is very useful diagram to represent data . which are divided into a number of categories. The diagram bar chart can make comparison among the various components or between a part and a whole of data. I have made made for the Customer. Sampling Methodology: Details of the sampling methodology. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The total value is represented by the full create. it consist of a number of whispered bar. The sample of the questionnaires is attached with the report itself. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.Questionnaires: This is the most popular tool for the data collection. questionnaire. As the name implies. The lengths of the bards are proportional to the value they represent. which are proportional to the values they represent.
Employees. of questions in questionnaires for customer: No. House wife. Students Branding & Promotion Page 64 . Business man. of people met during the research: No. of question related to LG product: No.No. of respondents during the research: 07 03 200 50 Sample unit Professionals. Working women.
DATA ANALYSIS & INTERPRETATION Branding & Promotion Page 65 .
So exhibitions are more useful to increases brand awareness. 5. Only 35 % people have purchased. People are less interested to purchase product from the exhibition. Consumer also want to compare to the different brand which are available in the exhibition. 2. 6. It shows that consumers are coming in the exhibition for knowledge of product and also they want to know that weather there is actual price difference in exhibition and shop or not. Have you purchased any consumer durable during Exhibitions? Yes No Inferences 1. 3.Q1. Branding & Promotion Page 66 . 65 % of Customer have not purchased any consumer durable from exhibitions. 4.
So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand.2While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability Inference 1. 2. So price and Brand matter a lots for the costumers. 3. Branding & Promotion Page 67 .Q. 26% give importance to brand. And they are also want best brand in best price. 19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability. 30% of customer gives importance to price.
From where you prefer buying consumer durables Exhibitions Co. A majority of customers prefer to buy from showrooms.shoppee Showroom Inference: 1. People are less interested to buy from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product. Branding & Promotion Page 68 .Q3. 3. 47% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts. 2. Very less proposition of customers buys from Exhibitions.
Branding & Promotion Page 69 . These are two main factors. Price also a factor that attract the customer in these showrooms. Customers buy from showrooms because of the service and convenience. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms.4. 4. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. 3.3 because of following reasons Attractive Price Service Demonstrations Offers Inference 1.You prefer to buy from the same as you have mentioned in Q.Q. 2.
in LCD Sony is the leader. Branding & Promotion Page 70 .Q. In plasma BPL is the leader. In Ref LG is the leader. MW LG is the leader.5. In WM there are companies and in AC also.Which consumer durable you have and of which brand? CTV LCD PLASMA REF WM MW AC Inference In CTV section maximum customers have Onida.
Q. Customers prefer to change consumer durables within 5-10 years. 23% customers do not change their consumer durable within 10 year. 2. It represent that Indian consumer do not prefer to change their consumer durable frequently. How frequently you change your consumer durables? 1-3 years 3-5 years 5-10 years More than 10 years Inference 1. 3.6. Branding & Promotion Page 71 . In India people do not change consumer durable frequently.
Q.7.Do you prefer any financing scheme to purchase consumer durables? Yes No
Majority of customers do not prefer any financial scheme.
Branding & Promotion
Dealer survey Findings
1. By calculating the display share we found that in most of store LG has 50% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG. 4. We also came to know while visiting the shops that there was big problem of after sale service. 5. Many dealers were facing the problem of after sale service because there is no follow up calls from LG. 6. Demo calls also not done properly. 7. The top competitor of LG product in Pune is SAMSUNG. 8. In Pune area the performance of LG is in better position but the competitor also hold closer margin. 9. There is high growth of sale in market due to booming in new technology and better service. 10.Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer.
Branding & Promotion
RECOMMENDATIONS AND SUGGESTIONS
1. LG should improve it‟s after sale service because its hits badly LGs market share in Pune region. 2. More detailed customaries service is to be provided. 3. The training to in shop demonstration should be given at frequent time interval and feed back should be considered positively. 4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person. 5. LG should try new dealer who have the potential. So they can target more market. 6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung. 7. The marketing managers should make better relations with dealers and reputation of the company. 8. Customer considers quality as their first preference, so the company should give more stress on this. 9. The switching of customer from LG product to other brand is due to the bed after sell service in shop. 10.The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology.
Branding & Promotion
CUSTOMER SURVEY FINDINGS
1. Secondary supports play an important role in the customers mind and create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors. 2. From the survey it was found out that the majority of customers don‟t buy consumer durables from exhibitions. They just visit the exhibitions to see the co. latest model. 3. They want to buy from the showrooms or from co. showrooms. For them service is important .Beside convenience and other factors service is key factor. 4. Also majority of customers do not want any financing scheme for purchasing the durables. 5. There was heavy rush on weekends so large numbers of ISD‟s were appointed that day. Also the live demo calls helps in selling. Exchange offers also generate sale. 6. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. 7. In survey we found that LG has captured maximum market share in every category. LG dominates CTV, LCD, and Refrigerator, and Washing machine, category. 8. LG and Samsung have bottle neck competition in TV and REF. category. 9. The product is well aware and it is on top of mind of customer. 10.Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand.
Branding & Promotion Page 75
6. Company should try to improve service. Branding & Promotion Page 76 . 3. Company should concentrate more on its major drivers LCD. 5. Also it is helps in advertising for the new products. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers. Like in this exhibition new LCD SCARLET was advertised. Company should also cater to the needs of sub dealers as some of the sub dealers have potential of high sales. This helps in generating awareness regarding the product in customers which ultimately helps in sales. Display share should be increased where there is less than 50% as LG also believes that “JO DIKHTA HAI WO BIKTA HAI”. Company should always focus on service. Exhibitions do not help to generate so much sells but they should be conducted regularly. 4. IT.RECOMMENDATIONS AND SUGGESTIONS 1. 2. and GSM. No doubt the company products have technically edge over competitors but in long run it may hamper the company‟s profit.
3. for which a full-fledged report was insufficient for me. 1. so it was difficult to make them hold for time. also there were certain limitations.LIMITATIONS Every study has certain limitations. Branding & Promotion Page 77 . The sample size is also very small which represent my research on consumer behavior My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage. 5. In my study. 2. I had only 60 days to complete my research. My research work period witness the biggest ups and downs in product sale of different brands. an average middle class family was required for the study. but generally. which I could not able to solve. which affected the perception of the customer. I had only found the upper-middle class family to fill up the questionnaire. The research was conducted in a very small area. Time factor was also important for me. The customer filled the questionnaire mostly in careless manner. This was biggest drawback of my study. 6. 4.
google.com www.BIBLIOGRAPHY www.com www.lgindia.com Business world Business today LG magazine Economics times News paper Times of India Branding & Promotion Page 78 .wikipedia.
Consumer survey Questionnaire Q1.4.2While purchasing consumer durable which parameter influences you? a) Price b) Product feature c) Brand d) Service e) Durability Q3. From where you prefer buying consumer durables a) Exhibitions b) Co.3 because of following reasons a) Attractive Price b) Service c) Demonstrations d) Offers e) Convenience Branding & Promotion Page 79 .You prefer to buy from the same as you have mentioned in Q. Have you purchased any consumer durable during Exhibitions? a) Yes b) No Q.shoppee c) Showroom Q.
Which consumer durable you have and of which brand? a) CTV b) LCD c) PLASMA D) REF E) WM F) MW G) AC ------------------------------------------------------------------------------------------------------------------------------- Q. How frequently you change your consumer durables? a) 1-3 years b) 3-5 years c) 5-10 years d) More than 10 years Q.7.Do you prefer any financing scheme to purchase consumer durables? a) Yes b) No Branding & Promotion Page 80 .6.5.Q.
I Area Service In charge A.D Logistics Head of department R.M Area sales manager B.E. L.S.S.S NET Customer Service Net D.S. Direct service centre.APPENDIX A.F Refrigerator Branding & Promotion Page 81 .I Branch Service In charge CAC Commercial Air Conditioning System C.H.S.C.
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