PROJECT REPORT ON MARKET ANALYSIS OF LG CONSUMER DURABLES

ACKNOWLEDGEMENT
We wish to express our sincere thanks to Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATI VIDYAPEETH UNIVERSITYS INSTITUTE OF MANAGEMENT AND RESEARCH for giving us the opportunity to work on the marketing plan of a company. This has given us the insight of how the various theoretical concepts are applied in an organization. I got the opportunity to do a challenging project in LG L !T"#$I! %I$&I'( The project is the important part of our study and gives us a real practical exposure to the corporate world. I also thank to Dr. Sac !" S. V#r"#$ar, D!r#c%or, BHARATI VIDYAPEETH UNIVERSITY INSTITUTE O MANAGEMENT & RESEARCH for giving me chance to get such an experience and giving me chance to get an industrial experience.

INDEX
1) Executive Summary 2) Preface 3) Introduction 4) Classification of Consumer Durables 5) Sco e !) " ortunity # $%reats

&) 'istory of Com any () )lobal " erations *) +usiness ,reas # -ain Products 1.)Slo/an # Symbol 11)Partners%i 12)Strate/ic ,lliance 13)Internal Culture of 01)1 14)-ission 15)Product 0eaders%i 1!)Code of Conduct 1&)01)1 India 1()2#D Potential 1*)-a3or 4ey Success 5actors 2.)-ar6etin/ and Distribution 21)Customer Service
3

22)"b3ective of t%e Pro3ect 23)2esearc% -et%odolo/y 24),nalysis 25)2ecommendations # Su//estions 2!)Customer Survey 5indin/s 2&)0imitations 2()Sources of Data Collected 2*)7uestionnaire

Executive Summ !"

Indian Consumer durables mar6et used to be dominated by fe8 domestic layers li6e /odre3 9oltas all8yn and 6alvinater1 +ut ost liberali:ation muc% forei/n com any %ave entered into Indian mar6et det%ronin/ t%e Indian 2E52I)2,$"2; ,I2 C"<D$I"<E2S ,<D =,S'I<) -,C'I<E India bein/ t%e second lar/est /ro8in/ economy 8it% %u/e consumer class %as resulted in consumer durables as t%e fastest /ro8in/ industries in India 0); S,-S><) t%e t8o 4orean com anies %as been maintainin/ t%e lead in t%e industries 8it% 0) bein/ leader in almost all t%e cate/ories1 $%e rural mar6et is /ro8in/ faster t%an t%e urban mar6et; alt%ou/% t%e enetration level is muc% lo8er 1$%e C$9 se/ment is ex ected to t%e lar/est contributin/ se/ment to t%e overall /ro8t% t%e industry1 $%e risin/ income levels double? income families and consumer a8areness are t%e main /ro8t% drivers of t%e industries1 Consumer durables ma3or 0) Electronics India Pvt 0td @0)EI0) 8ill invest nearly 2s 5.. crore in India t%is year in researc% and develo ment; brand?buildin/ and ot%er mar6etin/ initiatives1 $%e com any; %avin/ a turnover of 2s *;5.. crore and mar6et s%are of 2! er cent; is investin/ 2s 3!. crore on brand?buildin/ and ot%er mar6etin/ initiatives and around 2s 14. crore on researc% and develo ment; besides launc%in/ ne8 latforms in information tec%nolo/y and related areas; layer and dominatin/ Indian mar6et t%e ma3or cate/ories in t%e mar6et C$9;

0)As innovative B211 cam ai/nA to rovide Cuality after?sales service; 8ill also be ex anded from t%e existin/ 22 to 4. cities1 $%e cam ai/n; for 8%ic% I$ infrastructure %as been set u ; includes t%e com anyAs res onse to customer com laint 8it%in t8o %ours1 $%e fixin/ time for com laints varies from one %our to a maximum of 24 %ours1

PREFACE
$%is ro3ect /ives me /reat ex osure to t%e consumer durable mar6et because it includes roduct 6no8led/e and t%e filed 3ob in 8%ic% I %ave visited t%e stores of Del%i1 $%is ro3ect %el s me to 6no8 t%e mar6et ractically1 -y 3ob 8as durin/ t%is ro3ect to see t%e mar6et s%are and also t%e dis lay s%are of t%e 0) roduct in t%e store1 0) al8ays insist t%e 5.D dis lay s%are of 0) roduct because 0) believes t%at #JO DIK$TA $AI WO BIKTA $AI%1

INTRODUCTION
+efore t%e liberali:ation of t%e Indian economy; only a fe8 com anies li6e 4elvinator; )odre3; ,ll8yn; and 9oltas 8ere t%e ma3or layers in t%e consumer durables mar6et; accountin/ for no less t%an *.D of t%e mar6et1 $%en; after t%e liberali:ation; forei/n layers li6e 0); Sony; Samsun/; =%irl ool; Dae8oo; and ,i8a came into t%e icture1 $oday; t%ese layers control t%e ma3or s%are of t%e consumer durables mar6et1 Consumer durables mar6et is ex ected to /ro8 at 1.?15D in 2..*?2.1.1 It is /ro8in/ very fast because of rise in livin/ standards; easy access to consumer finance; and 8ide ran/e of c%oice; as many forei/n layers are enterin/ in t%e mar6et =it% t%e increase in income levels; easy availability of finance; increase in consumer a8areness; and introduction of ne8 models; t%e demand for consumer durables %as increased si/nificantly1 Products li6e 8as%in/ mac%ines; air conditioners; micro8ave ovens; color televisions @C$9s) are no lon/er considered luxury items1 'o8ever; t%ere are still very fe8 layers in cate/ories li6e vacuum cleaners; and dis%8as%ers Consumer durables sector is c%aracteri:ed by t%e emer/ence of -<Cs; exc%an/e offers; discounts; and intense com etition1 $%e mar6et s%are of -<Cs in consumer durables sector is !5D1 -<CEs ma3or tar/et is t%e /ro8in/ middle class of India1 -<Cs offer su erior tec%nolo/y to t%e Consumers 8%ereas t%e Indian com anies com ete on t%e basis of firm /ras of t%e local mar6et; t%eir 8ell? ac6no8led/ed brands; and %old over 8ide distribution net8or61 'o8ever; t%e enetration level of t%e consumer durables is still lo8 in India 1
7

C& ''i(ic ti)* )( c)*'ume! +u! ,&e' 'ect)!

1.

Consumer electronic include vcdFdvd; %ome t%eatre; music television @C$9s); cameras; camcorders; ortable audio; 'i?5i; etc

layer; color

2.

=%ite /oods include dis%8as%ers; air conditioners; %eaters; 8as%in/ mac%ines; refri/erators; vacuum cleaners; 6itc%en a micro8aves; built?in a liances; non?6itc%en a liances; liances; $umble dryer; ersonal care roduct etc1

3.

-oulded lu//a/e include lastics

41 Cloc6s and 8atc%es 51 -obile %ones

Sc)-e
1.

In term of urc%asin/ o8er arity @ ); India is t%e 4t% lar/est economy in t%e 8orld and overta6e Ga an in t%e near future become t%e 3rd lar/est1 Indian consumer durable mar6et is ex ected to reac% H4.. billion by on 2.1. India %as t%e youn/est o ulation amon/st t%e ma3or countries1 $%ere are lot of eo le in t%e different income cate/ories nearly t%e t8o t%ird o ulation is belo8 t%e a/e of 35 and nearly 5.D is belo8 251

2.

3.

41 $%ere are 5! million eo le in middle class; 8%o are earnin/ usH4;4..? >SH21;(.. a year1 ,nd t%ere are ! million ric% %ouse%old in India1
5.

$%e u

er?middle and %i/%?income %ouse%old in urban areas /re8 to 3(12

million in 2..& as a/ainst 141! million in 2....

O--)!tu*it"
11 In India t%e enetration level of 8%ite /oods is lo8er as com ared to ot%er develo in/ countries1 21 >nex loited rural mar6et1 31 2a id urbani:ation1 41 Increase in income level; i1e1increase in urc%asin/ o8er of consumers1 51 Easy availability of finance1

T.!e t'
'i/%er im ort duties on ro8 materials1 C%ea im orts from Sin/a ore; C%ina and from ot%er ,sian countries1

B! *+' i* c)*'ume! e&ect!)*ic 'ect)!

MNC' 0) S,-S><) 'I><D,I $C0 ',IE2 P'I0IPS P,<,S"<IC S',2P 'I$,C'I S,<S>I ,4,I ,I=, ='I20P""0 E0EC$2"0>J NATIONAL ) ) ) ) ) ) ) ) ) ) ) ) ) 4"2E, C'I<, '"00,<D "<ID, 9IDE"C"< +P0 )"D2EG 9"0$,S I5+ REGIONAL +>S' C2"=< S,0"2, $?SE2IES =ES$"< +E0$,4 "S4,2

G,P,<

TODAY Consumer durables sector is c%aracteri:ed by t%e emer/ence of -<Cs;

exc%an/e offers; discounts; and intense com etition1 $%e mar6et s%are of -<Cs in consumer durables sector is !5D1 -<CEs ma3or tar/et is t%e /ro8in/ middle class of India1 -<Cs offer su erior tec%nolo/y to t%e 0); S,-S><) t%e t8o 4orean com anies %as been maintainin/ t%e lead in t%e industries 8it% 0) bein/ leader in almost all t%e cate/ories1 $%e com any; %avin/ a turnover of 2s *;5.. crore and mar6et s%are of 2! er cent; is investin/ 2s 3!. crore on brand?buildin/ and ot%er mar6etin/ initiatives

10

and around 2s 14. crore on researc% and develo ment; besides launc%in/ ne8 latforms in information tec%nolo/y and related areas;

LG E&ect!)*ic' is one of t%e leadin/ com anies in t%e field of electronics 8it% a /lobal resence in many countries1 +efore briefin/; I %ave divided t%e introduction art into t%ree main sub arts1 11 0) )lobal 21 0) India 31 0) Pune

$i't)!" )( c)m- *"

$%e com any 8as ori/inally establis%ed in 1*5( as )old Star; roducin/ radios; $9s; refri/erators; 8as%in/ mac%ines; and air conditioners1 $%e 0) )rou 8as a mer/er of t8o 4orean com anies; 0uc6y and )old Star; from 8%ic% t%e abbreviation of LG 8as derived1 $%e current K0ifeEs /oodK slo/an is a bac6ronym1 +efore t%e cor orate <ame c%an/e to LG; %ouse%old roducts 8ere sold under t%e +rand name of Lucky; 8%ile electronic roducts 8ere sold under t%e brand name of Gold Star1 $%e )old Star brand is still erceived as a discount brand1 In 1**5; )old Star 8as renamed 0) Electronics; and acCuired Lenit% Electronics of t%e >nited States1

11

G&), & O-e! ti)*

0) Electronics is layin/ an active role in t%e 8orld mar6et 8it% its assertive /lobal business olicy1 ,s a result; 0) Electronics controls 11. local subsidiaries in t%e 8orld 8it% around (2;... executive and em loyees1

LG G!)u1. 2. 3. 4. 5. 6.

0) P%ili s 0CD 0) C%emical 0) $elecom 0) Po8ercom 0) $8ins 0) Dacom

Bu'i*e'' !e ' *+ m i* -!)+uct'

M),i&e c)mmu*ic ti)*'

@a) CD-, 'andsets; @b) )S- 'andsets; @c) 3) 'andsets; @d) Cellular P%ones

Di/it & --&i *ce

12

a)

v
b)

icro8a e "vens;

as%in/

-ac%ines;
c) 9acuum Cleaners;

d) 'ome <et;
e)

Com ressors for ,ir Conditioners and 2efri/erators

Di/it & +i'-& "

a) Plasma $9s; b) 0CD $9s; c) -icro Dis lay Panel $9s;

d) -onitors; e) PDP -odules; f) "0ED Panels; /) >S+ -emory;

%) 5lat Panel Com uter -onitors

Di/it & me+i

13

a) 'ome $%eater Systems; b) D9D 2ecorders; c) Su er -ulti D9D 2e8riters; d) CDM2=;

e) <oteboo6 PCs;
f) Des6to PCs

/) PD,s; %) PD, P%ones;

i) -P3 Players;

3) <e8 4arao6e Systems; 6) Car Infotainment

SLOGAN

14

0Li(e1' G))+0 !e-!e'e*t' LG1' +ete!mi* ti)* t) -!)vi+e +e&i/.t(u&&" 'm !t -!)+uct' t. t 2i&& m 3e ")u! &i(e /))+4

$%e 0) Electronics 0ifeEs )ood si/nature consists of t%e 0) lo/o; seal; and t%e slo/an; K0ifeEs )oodK set in C%arlotte sans ty eface curved around t%e 0) symbol1 $%e curvin/ of t%e slo/an reinforces 0)Es ersonality and uniCueness1 $%e consistent usa/e of t%is si/nature clearly establis%es t%e uniCue identity of t%e com any and unifies every division and roduct from 0) Electronics across t%e /lobe1

T$E SYMBOL
$%e symbol of 0) is t%e face of future1 $%e letter N0O and N)O in a circle symboli:es 8orld; future; yout%; %umanity # tec%nolo/y1 0) %iloso %y is based on %umanity1 It also re resents 0)As efforts to 6ee close relations%i 8it% our customers around t%e 8orld1

T.e '"m,)& c)*'i't' )( t2) e&eme*t'4

11 $%e lo/o in 0) /ray 21 $%e styli:ed ima/e of %uman face in t%e uniCue 0) red color1 Re+ c)&)! re resents our friendliness and /ives a stron/ im ression of 0)As commitment to deliver t%e best1

15

$%e circle symboli:es T.e G&),e1 $%e styli:ed ima/e of a smilin/ face in t%e symbol conveys #F!ie*+&i*e'' *+ A--!) c. ,i&it"O1 $%e one eye on t%e symbol re resents #G) &5)!ie*te+6 F)cu'e+ 7 C)*(i+e*tO1

$%e slo/an of 0) is #Li(e8' G))+O1 It ex resses NB! *+8' 9 &ue6 P!)mi'e'6 Be*e(it'; Pe!')* &it"4

T$E PARTNERS$IP
0) Electronics c%ooses to romote %armony and build constructively on a labor? mana/ement relations%i %ori:ontal one1 $%is culture is necessary for 0) Electronics as it strives to become one of t%e 8orldEs to com anies1 Suc% a relations%i is transformed into a value?creation relations%i 8%ereby bot% arties endeavor to address mutual roblems and create ne8 values to/et%er1 rat%er t%an an em loyee?em loyer relations%i 1 $%is illustrates t%at mana/ement and 8or6ers are not in a vertical relations%i ; but in a

STRATEGIC ALLIANCE
LG E&ect!)*ic' i' m 3i*/ tec.*ic & +v *ce' *+ i+e*ti("i*/ ,u'i*e'' )--)!tu*itie' t.!)u/. v !i)u' '')ci tive !e& ti)*'.i-' 2it. ')me )( t.e 2)!&+1' &e +i*/ c)m- *ie'4 0) Electronics is strivin/ to become number one in t%e 8orld by min/lin/ in various business and tec%nolo/ical fields and ma6in/ strate/ic alliances 8it%
16

8orld famous com anies1 KStrate/ic association bet8een cor orations;K in 8%ic% com anies 8it% different infrastructures coo erate in t%e fast?develo in/ 21st century business field; is of 6ey si/nificance in terms of stren/t%enin/ t%e existin/ industry and creatin/ a ne8 one1 LG E&ect!)*ic' 8ill do its best to create ne8 roducts and services 8it% an o en mind; 8%ile develo in/ ne8 tec%nolo/ies and business fields t%rou/% various associations 8it% some of t%e 8orldEs most successful com anies1 11 321 S>< 31 I,'"" 41 P'I00IPS 51 $"I"$, !1 -IC2"S"5$ &1 'P (1 )"")0E *1 )E 1.1I<$E0 111<"2$E0 121'I$,C'I 131P2,D, 1412E<ES,S 151$"S'I+, 1!1+ES$+>I

17

A*+ t.e *um,e! ()&&)2' m *" m)!e::PPPPPPPP11 In 5eb1 2..& 0) Electronics and Ia%oo formed a strate/ic alliance1 Ia%oo mobile services 8ill be available from 0) mobile1 $%is service is tar/etin/ 1. million 0) mobile %ones in over &. countries1 In -ar1 2..& 0) Electronics and )oo/le formed a strate/ic alliance1 +ot% com anies 8ill 8or6 to/et%er to release; mar6et; and offer 0) mobile %ones 8it% )oo/le services @searc% en/ine; ma ; email; and blo/s1)

LG BRAND IDENTITY;5
$%e brand of 0) is deli/%tfully smart1 0) strives to en%ance t%e customerAs life and lifestyle 8it% intelli/ent features; institutive functionality and exce tional erformance1

T.e ,! *+ -& t()!m;5

$%e 0) brand is com osed of four basic elements Q 11 9alue 21 Promise 31 +enefits 41 Personality

18

T.e B! *+' c)!e 9 &ue t. t *eve! c. */e'4

a1 $rust; b1 Innovation; c1 Peo le d1 Passion $%e benefits t%at are consistently delivered to t%e customer includes 2eliable roducts Sim le desi/n Ease of use Extraordinary Ex erience Personality describes t%e %uman c%aracteristic t%at are ex ressed to t%e customer t%rou/% $rust8ort%y; Considerate Practical; 5riendly

T.e I*te!* & Cu&tu!e )( LG;

0) ractices four cultures 11 0earnin/ Culture 21 +oundary less Environment 31 , Carrier 41 )ro8t%

19

,ccordin/ to 0); t.e Le !*i*/ Cu&tu!e continuously %el s t%e em loyee to learn more and more to develo t%e %abit of continuous learnin/1 B)u*+ !" &e'' E*vi!)*me*t means t%at t%ere is no difference bet8een t%e levels of em loyees1 $%ere is trans arency bet8een t%e 8or6 and mutual understandin/ bet8een all t%e em loyees1 A c !!ie! is %i/%ly /ro8in/ in 0) and one 8%o is t%e em loyee can develo t%eir carrier lar/ely1 , ne8 comer 8ill feel fully comfortable in t%e com any and for a ne8 comer t%e com any is very %el ful in t%e overall /ro8t% of ersonality1 G!)2t. in 0) is very %i/% for t%ose 8%o are in t%e com any and for t%ose 8%o 8ant to 3oin in 0)1 $%e com any is /ro8in/ 8it% fast innovation and t%e +0>E "cean strate/y is one of t%e exam les of /ro8t%1

Mi''i)*
$%e mission of 0) is to rovide t%e customers 8it% utmost satisfaction t%rou/% leaders%i 1 $%e fundamental olicy of develo ment is to secure roduct leaders%i t%at t%e Customers may %ave t%e utmost satisfaction1

P!)+uct Le +e!'.i=e are focusin/ on six develo ment areas to become t%e roduct leader1 11 <e8 -ac%ine 21 2eliability 31 Conventional Installation 41 Environment 5riendly Product 51 0o8 <oise # 9ibration !1 Ener/y Savin/

20

C)+e )( c)*+uct )( LG;

11 2es onsibility and obli/ations to customers R 2es ect for Customers Creatin/ 9alue Providin/ 9alue

2 5air com etition Pursuit of 5ree Com etition Com liance 8it% 0a8s and 2e/ulations 5air $ransaction R ECual " ortunity 5air $ransaction Procedure Su ort and ,id for +usiness Partners
3

4 +asic Et%ics for Em loyees +asic Et%ics Com letion of Duty Self Develo ment 5airness in Performance ,voidance of conflict 8it% com any interest 5 ! Cor orate 2es onsibilities to em loyees 2es ect for %uman di/nity 5air $reatment Promotin/ Creativity 2es onsibilities to society and country 2ational +usiness Develo ment Protection of stoc6 %older interest Contribution to social develo ment Environmental Conservation

21

LG INDIA:
0) Electronics India Pvt1 0td1; a 8%olly o8ned subsidiary of 0) Electronics; Sout% 4orea 8as e't ,&i'.e+ i* J *u !" <==> after clearance from t%e 5orei/n Investment Promotion +oard @5IP+)1 0) set u a 't te5)(5t.e !t m *u( ctu!i*/ facility at G!e te! N)i+ 6 *e ! De&.i6 i* <==?; 8it% an investment of 2s 5.. Crores1 0) cor orate office is located at Plot no151; >dyo/ 9i%ar; 4asna 2oad; )reater <oida; India1 $%is facility manufactured Color $elevisions; =as%in/ -ac%ines; ,ir? Conditioners and -icro8ave "vens1 Com any is settin/ u a c%ain of exclusive remium s%o8rooms1 0) lans to launc% !. remium +rand S%o es by t%e end of t%e first Cuarter of t%is year1 ,t es 8ill be laced in t%e remium se/ment resent; 0) %as a total of (3 0) stores across t%e country; of 8%ic% 45 are s%o s and 3( are exclusive stores1 +rand s%o roducts1 0) +rand S%o e /oes beyond t%e conce t of a normal exclusive store by %avin/ and t%e tar/et audience 8ill com rise buyers interested in remium and %i/% end

a more interactive environment and additional lifestyle orientation on dis lay so t%at t%e customer can actually ex erience t%e 0) roducts in %is or %er o8n %ome settin/s1 0) Electronics India 0td @0)EI0); consumer durables leader 8it% 2&D mar6et s%are; is lannin/ a brand ne8 ima/e1 $o attract ins irational and youn/ consumers across India; com any 8ill roll out a ne8 mar6etin/ strate/y1 $%e exercise 8ill cost t%e com any 2s 3!. crore1

22

LG E&ect!)*ic' India is t%e fastest /ro8in/ com any in t%e consumer electronics; %ome a liances; and com uter eri %erals industry today1

0) Electronics is continually rovidin/; su erior tec%nolo/y roducts # value for money to more t%an 5. la6% %ouse%olds in India1 LGEIL i' ce&e,! ti*/ t.e <<t. **ive!' !" t.i' "e !1 LG S)(t I*+i t%e innovation 8in/ of 0) Electronics in +an/alore is 0) lication develo ment; di/ital video broadcast

ElectronicsE & !/e't R7D ce*t!e )ut'i+e K)!e 1 =e at 0)SI focus on nic%e $ec%nolo/y areas suc% as mobile a and biometrics soft8are and su ort 0) Electronics 8it% our ex ertise1 -otivated

by a assion for tec%nolo/y; a stron/ 8or6 culture and loyalty to t%e or/ani:ation; 8e are determined to see 0) become one of t%e t)- t.!ee brands /lobally1 Prominent consumer electronic com any; 0) Electronics Inc1 %as said t%at it ex ects t%e sale of its roducts in India to u by 15 er cent in 2.1.1 -oon +um S%in; mana/in/ director of 0) Electronics India %as said t%at t%e com any %as earmar6ed 41( billion ru ees for investment ur ose in India t%is year1 $%e said money 8ill be used to mar6et as 8ell as manufacture ne8 roducts1 In order to ac%ieve its tar/et; S%in said 0) Electronics 8ill concentrate on caterin/ to t%e %i/%?end consumer mar6et 8%ic% 8ill %el boost sales t%is year1 India c%urns out six @!) er cent of 0) Electronics /lobal revenues of H42 billion1 $%e Indian branc% of 0) ex orts to 4. countries1

I*+i c. &&e*/e'
23

T.e c. &&e*/e' ( ce+ ," LG 2.e* e*te!e+ i* I*+i * m !3et

11 0o8 brand a8areness about 0) in India1 21 "ne of t%e last -<Cs entered in India @Samsun/; Panasonic entered in 1**5 in India)1
3. 4.

'i/% im ort duty Com etition from local mar6et durable se/ment1 layers and ot%er -<Cs in consumer

51 Price sensitiveness of t%e Indian consumer

LGEI )ve! c)me' t.e'e c. &&e*/e' t) eme!/e ' I**)v tive m !3eti*/ 't! te/"
11 0aunc% ne8 tec%nolo/ies in consumer electronic and %ome a t%e 1*** 8orld cu follo8ed it u in 2..3 as 8ell1 31 0) brou/%t in four ca tains of t%e Indian cric6et team to endorse its roducts1 0) invested more t%en >SH ( million on advertisin/ and mar6etin/ in t%is s ort1
4.

liances1

21 0) 8as t%e first brand to enter in cric6et in bi/ 8ay a 8ay; by s onsorin/

0) %as differentiated its roduct usin/ tec%nolo/y and %ealt% benefits1 C$9 %as #G)&+e* e"e tec.*)&)/"% ,ir conditioner %as #$e &t. i! '"'tem% and micro8ave ovens %ave t%e #$e &t. 2 ve '"'tem%4

L)c & *+ e((icie*t m *u( ctu!i*/ t) !e+uce t.e c)'t

$o overcome %i/% im ort duties 0) manufactures $9 refri/erator in India at manufacturin/ facility at <oida and Pune1 0)EI %ad already commissioned contract manufacturin/ at -o%ali 4ol6ata and +%o al for C$9s1 $%is %as %el ed 0)EI to reduce cost1

24

0)EI im lementin/ t%e NDi/ital manufacturin/ systemO @D-S) as t%e cost cuttin/ innovation t%is system is follo8?u to t%e six si/ma exercise 0)EI %ad initiate earlier1

R7D -)te*ti &

0) %as t%e researc% and develo ment facilities in +an/alore and Pune1 +ot% t%e unit carry out 2#D de artment for t%e domestic as 8ell as t%e arent com any it also dose customi:e 2#D for t%e s ecific countries to 8%ic% it ex ort roduct1

Re/i)* & c. **e& *+ 2i+e +i't!i,uti)* *et2)!3

1. 0) %as ado ted t%e re/ional distribution c%annel in India1 ,ll t%e distributers 8or6 directly 8it% t%e com any1 $%is %as resulted in Cuic6er rotation of t%e stoc6 and better enetration into +; C; D; class mar6et1 21 0) also follo8s t%e stoc6 rotation olicy rat%er t%en dum in/ stoc6 on c%annel artners1

P!)+uct &)c &i@ ti)*;5

11 Product locali:ation is t%e 6ey strate/y used by t%e 0)
2. 3.

0) came out 8it% 'indi and re/ional lan/ua/e menus on its $9s1 Introduced t%e lo8? riced NCine lusO and Nsam oomaO for t%e rural mar6et1

41 0) 8as t%e first brand to introduce /amin/ in $9s in continuations of its association 8it% cric6et 0) introduce cric6et /ame in C$9s

MAJOR KEY SUCCESS FACTORS

25

11 Innovative mar6etin/ ? 0) 8as t%e first brand to enter cric6et in a bi/ 8ay; by s onsorin/ t%e 1*** =orld Cu and follo8ed it u in 2..3 as 8ell1 21 0ocal and efficient manufacturin/ to reduce cost ? $o overcome %i/% im ort duties; 0) manufactures PC monitors and refri/erators in India at its manufacturin/ facility at <oida; Del%i1 31 Commissioned contract manufacturin/ at -o%ali; 4ol6ata and +%o al for C$9s1 41 Product locali:ation ? Product locali:ation is a 6ey strate/y used by 0)1 It came out 8it% 'indi and re/ional lan/ua/e menus on its $91 51 2e/ional distribution model ? $%is %as resulted in Cuic6er rotation of stoc6s and better enetration into t%e +; C and D class mar6ets1 !1 0evera/in/ IndiaAs I$ advanta/e ? 0) Electronics %as a8arded a contract to develo 0)1 I$ solutions to 0) Soft India @0)SI)1 $%e ro3ect involves develo ment and su ort for E2P; SC-; C2- and I$?enabled services for

St! te/ie' +)-te+ ," t.e )!/ *i@ ti)*

0) follo8s 1. commandments 8%ic% are as follo8s1 11 5oster 8or6in/ environment?5S Environment 21 5ast execution is 6ey to success 31 $rans arent and fast communication?o en communication 41 > date mar6et ?6no8led/e QDemo/ra %ics 51 =in Q=in relations%i 8it% t%e trade artners

26

!1 Customer is t%e 6in/ &1 Even +illin/ Q2oad to ac% su lier ,

(1 +e in touc% 8it% t%e mar6et @&.D -ar6et; 3.D "ffice)1 *1 Plan and Execute annual mar6etin/ Calendar?$ime to mar6et 1.1Dis lay s%are of 5.D ?to /et 5.D consumer s%are1

LG PUNE
0) Pune is t%e branc% office of 0)EI04 It is located in G1- 2oad1 In 2..4 0)EI0 o ened second factory 8%ic% is located in 2an3an/aon1 $%is lant manufactures all roduct includin/ D9D 8riters and )S- mobiles1 $%us it became first com any to manufacture D9D 8riter in India1 $%e "DP lant aims to reac% a man o8er base of 15.. eo le and an investment of 2s 3.. crore till 2.1.1 0) India 8ill become t%e ex ort %ub for 0) =orld8ide; caterin/ to t%e -iddle East and ,frican mar6ets1 $%e com any aims to touc% an ex ort turnover of H3 billion by 2.1. from India; 8%ic% 8ill contribute to 3. er cent of t%e Indian armEs turnover1 Pune; India; "ctober !; 2..4 ?? 0) announced 3 /ro8t% strate/ies aimed at t%e 111 billion eo le of India ma6in/ t%e Indian mar6et t%e second lar/est /lobal Production base follo8in/ C%ina1 >nder t%is strate/y 0)E %as ro3ected 2..& revenues in India 8ill exceed >SH1. billion; 1. times t%at of 2..41 $%e t%ree strate/ies for t%e Indian mar6et t%at t%e /lobal electronics /iant disclosed1 includedR enetrates t%e sout%?8estern mar6et of India t%rou/% t%e ne8 Pune lant near -umbai; t%e second lar/est city in India; in addition to t%e
27

existin/ nort%ern lantS installs a ne8 )S- %andset roduction line in t%e ne8 Pune lant and uses it as its second?lar/est /lobal )S- %andset roduction line after t%e 7in/dao lant in C%inaS and ex ands t%e current &5. 2#D staff in India to 1;5.. by 2..1.; strivin/ to develo remium roducts and ex ort 3.D of India?manufactured roducts to ,sia; -iddle East and ,frica mar6ets by 2.1.1 0) ElectronicsA second ne8 lant in Pune; India covers a total area of 211;2.. sCuare meters and is currently eCui ed 8it% a roduction line to manufacture !..;... $9s and one million refri/erators a year1 $%e com any is set to add roduction lines of air conditioners; 8as%in/ mac%ines; monitors; and electronic ovens; by 2.1.1 A&')6 0) Electronics is oised to install a )S- %andset roduction line in t%e ne8 Pune lant by early next year1 $%e Pune )S- %andset line envisa/es a ca acity of manufacturin/ 2 million %andsets annually; and t%e com any ex ands it to become a /lobal )S- %andset roduction base 8it% a ca acity of an annual 1. million units by 2.1.1 In connection 8it% its t%ree /ro8t% strate/ies for t%e Indian mar6et; 0) Electronics 8ill invest a total of >SH15. million in establis%in/ facilities and boostin/ 2#D efforts in India by 2.1.1 S ecifically; it 8ill invest >SH53 million in t%e Pune second lant; anot%er >SH43 million in establis%in/ t%e )S- line; and >SH54 million in securin/ 2#D man o8er and boostin/ ot%er efforts1 $%rou/% t%ese strate/ies; 0) Electronics aims to enetrate t%e /lobal mar6et by usin/ C%ina and India as its core roduction bases; 8%ile o eratin/ its lants in C%an/8on and )umi; 4orea; as its main roduction bases1 $%is 8ay; t%e liance mar6et1 com any is us%in/ to enetrate t%e /lobal %ome a

$%e resent ca acity of t%e facility is of 1 la6% unit er year and it s%all cater to t%e need of t%e domestic mar6ets1 0) lans to u scale its o erations to a fi/ure of 215 la6% units a year in t%e near future1 $%e Pune lant in addition to its current
28

manufacturin/ facility at )reater <oida 8ill enable t%e com any to en%ance its consumer reac% and reiterate itAs commitment to8ards tec%nolo/y roducts to t%e India consumer1 T.e 3e" 't! te/ie' bein/ im lemented include increasin/ t%e number of its re/ional offices from six to ei/%t1 0) %as s lit its sout%ern re/ional office into t8o; one com risin/ t%e states of $amil <adu and 4erala and t%e ot%er consistin/ of ,nd%ra Prades% and 4arnata6a1 In addition; it %as s lit one of its nort%ern re/ional offices by ma6in/ >ttar Prades% a se arate re/ion after s innin/ it out from Del%i <C21 $%e ot%er four re/ional offices ta6e care of East; )u3arat and -ad%ya Prades%; -a%aras%tra # )oa and Pun3ab; 'aryana # 2a3ast%an res ectively1 In t%e comin/ year; 0) is also re ositionin/ its mar6etin/ s ends; resultin/ in a si/nificant increase in its mass media ex enditure for better brand visibility1 0) %ad a mar6etin/ bud/et of 2s 32. crore in 2..& 8it% a !.R4. s lit in favor of belo8?t%e?line activities1 <ext year; t%e com any lans to increase t%e s%are of mass media even as overall mar6etin/ s ends 8ould be raised by 3ust about 1.? 15D1 rovidin/ su erior

Di't!i,uti)* *+ M !3eti*/
$%e com any %as number of dealers and 8are%ouses1 $%ey %ave 0) exclusive s%o ee1 5or t%e mar6etin/ of t%e roducts a number of activities are follo8ed 11 Ex%ibitions are conducted from time to time1 21 Society and colle/e activities are conducted1 31 'oardin/; Posters; banners are used so as to /rab t%e attention of t%e costumers1
29

41 Day to day advertisement in leadin/ ne8s a er1 51 Discount at festival time1

6.

5or dealer relations%i t%ey arran/e dealer meetin/ at several time in t%e year 0) divide dealer in /old silver bron:e etc1 cate/ory to 6no8 t%e erformance of t%e dealers1

7.

(1 $%ey %ave t%eir sales ersons at various sub dealer store and at mordent trade store for articularly for t%e romotion of t%e 0) roduct1 *1 0) also uses t%e radio 5- for t%e romotion activities1 1.1,lso rovide ca on and scratc% card for festive season1

AR8' )( L)/i'tic
5ollo8ed by 0)R 11 2i/%t $ime 21 2i/%t Place 31 2i/%t Condition 41 2i/%t Cost 51 2i/%t 'andlin/

30

LG Di't!i,uti)*
T.e LG F ct)!" i' &)c te+ =are%ouse? 11 -ot%er =are%ouse 21 +ranc% =are%ouse 31 S are art 8are%ouse $%e mot%er 8are%ouse is t%at 8%ere t%e roducts from t%e factory are 6e t and from t%at 8are%ouse; t%e roducts are sent to t%e branc% 8are%ouse1 , 2 !e.)u'e is a commercial buildin/ for stora/e of /oods1 =are%ouses are used by manufacturers; im orters; ex orters; 8%olesalers; trans ort businesses; customs; etc1 $%ey are usually lar/e lain buildin/s in industrial areas of cities and to8ns1 $%ey come eCui ed 8it% loadin/ doc6s to load and unload truc6sS or sometimes are loaded directly from rail8ays; air orts; or sea orts1 $%ey also often %ave cranes and for6lifts for movin/ /oods; 8%ic% are usually laced on IS" standard allets loaded into allet rac6s1 t <"ID, # P><E1 $%ere are t%ree ty es of

A S )( W !e.)u'e; 8%ic% t%e 0) strictly follo81

11 S8ee in/ 21 Sortin/ 31 Systematic ,rran/ement 41 Sim lification 51 Self? disci line

31

I* 2 !e.)u'e; t%e roducts are inu 8it% 3?color a er to /et t%e 6no8led/e about t%e delivery1
1.

2ed Card Q $o sto t%e roduct /oin/ into mar6et;

21 )reen card Q $o allo8 t%e roduct for delivery in mar6et; 31 Iello8 Card Q ,fter t%e roduct labeled 8it% /reen; allo8 t%is to move in mar6et

Di't!i,uti)* Time;?

0ocal delivery

Q 4 %rs1

> country delivery ? 12 %rs1 =it%in 2.. 6m1

Q 24 %rs1

+eyond 2.. 6m1 Q 4( %rs4

$%e above distribution time is t%e time of delivery of roducts from 8are%ouse to t%e mar6et lace; 8%ic% t%e lo/istic de artment follo8s to fulfill t%e demand in t%e mar6et at ri/%t time1 In 0); 8e %ave t%e follo8in/ rocess; 8%ic% is follo8ed in lo/istic t%rou/% E2P1 "rder Processin/ Invoicin/ Indentin/ 2e ort "rder Processin/ Invoicin/ Indentin/ 2e ort boo6in/ for dealers Fdistributors after billin/ rocessFbill /eneration reCuirement @Pdt >nit to branc% unit) distributed to all

I* 2 !e.)u'e6 t%ere are t8o mode of dis ersion of roduct from one lace to anot%er 8it%in1 a) 'ydraulic b) -anual
32

In addition; t%ere are 35 fire extin/uis%ers to revent t%e accidental %a:ard 8it%in t%e 8are%ouse due to fire1 $%ese fire extin/uis%ers are valid u to year 2.111 "ne %as to follo8 t%e rule of N<" Smo6in/O 8it%in t%e 8are%ouse

WARE$OUSE WIT$ T$E EBUIPMENT4

WARE$OUSE; REFRIGERATOR AND CT9 SECTION

33

CUSTOMER SER9ICE
$%e best and t%e bi//est international brands are %ere in India Qbut t%e irony if it allR 8%ere is t%e after?sales?serviceT So inte/ral to a brand; so critical for its success and so ta6en for /ranted in develo ed mar6etsU In India; after sales service is; for 8ant of a better descri tion; t%e its1 So 8%atAs sto in/ t%e best com anies from ullin/ out all t%e sto s 8%en it comes to rovidin/ t%e best serviceT Do customers ex ect for too muc%T "r is it t%at in India t%ey donAt really care1 +rand ECuity fanned out to -<C as 8ell as Indian consumer durable com anies; stoc6iest and dealers; analysts and mar6et researc%ers to /et a feel of 8%atAs really 6ee in/ after sales from bein/ used as a cuttin/ ed/e mar6etin/ tool in us%in/ roducts across cate/ories1 Customers su ort follo8in/ t%e urc%ase of a roduct or service1 In some cases; urc%ase1 $%e

after?sales service can be almost as im ortant as t%e initial

manufacturer; retailer; or service rovider determines 8%at is included in any 8arranty @or /uarantee) ac6a/e1 $%is 8ill include t%e duration of t%e 8arranty traditionally one year from t%e date of urc%ase; but increasin/ly t8o or more yearAs maintenance andFor re lacement olicy; items includedFexcluded; labor costs; and s eed of res onse1 In t%e case of a service rovider; after?sales service mi/%t include additional trainin/ or %el des6 availability1 "f eCual im ortance is t%e customerEs erce tion of t%e de/ree of 8illin/ness 8it% 8%ic% a su 8it% a Cuestion or com laint; s eed of res onse; and action ta6en1 LG &') . + ,i/ -!),&em )( (te! ' &e 'e!vice in India1 Durin/ my ro3ect I lier deals

also came to 6no8 t%at after sale service becomes t%e bi/ issue in Pune re/ion1 Customers as 8ell as dealer 8ere facin/ t%e roblem of after sale service1 +ecause of t%is roblem many dealer in Pune re/ion 8ere not ready to sale 0) roduct1 So it becomes t%e bi/ issue1

34

But LG . ' t 3e* some solid ste s to8ards im rovin/ customerAs erce tion and ex erience of after sales service1 +ecause it very im ortant in com etitive mar6et to rovide t%e best service1 0) Electronics %as si/ned a memorandum of understandin/ 8it% 23 Industrial $rainin/ Institutes to stren/t%en its after sales service in India1 $%e com any aims to recruit 1.;... eo le by t%e end of t%is year as a art of its brandin/ strate/y to focus on service and move a8ay from discountin/1 0) Electronics %as identified ei/%t states 8it% %i/% after sales service call rates to in6 t%e deals 8it% t%e I$I1 I 9 9erma; director '2 and mana/ement system; 0) Electronics said; K$%e Com any 8as tryin/ to find a solution for effective after sales service since last t8o years1 $%ere is a %u/e need of trained man o8er for t%e after sales service to ali/n 8it% t%e com anyEs ex ansion and focus on t%e )S- mobiles and t%e ersonal com uter se/ments1K

In t%e initial %ase t%e com any %as entered into a/reements 8it% I$Is in t%e states li6e M . ! '.t! 6 GuC ! t6 De&.i6 Pu*C ,6 A'' m6 *+ K !* t 3 and is in t%e last le/ of si/nin/ 8it% Utt ! P! +e'.4
1.

0) Electronics; 8it% <DEE service centers; %as already recruited FEE students and lans to beef u t%e number to <E6EEE by t%e year?end1

21 K$%e com any %as offered a sc%olars%i to t%e selected students for t%e last six mont%s of t%eir trainin/ ro/ramme;K 31 $%e com any 8ill invest 2s ( crore @2s (. million) in em loyee develo ment ro/ramme t%is year 8it% an aim to attain a ( er cent attrition rate1
35

41 $%e com any moved a8ay from t%e discountin/ strate/y since last year and is uttin/ t%rust on t%e Cuality and service in its brand communication to osition 0) as a remium consumer electronics brand1
5.

,t t%e to ; t%e Service Division in 4orea re orts to t%e )lobal C-"1 @,s mentioned in DermotAs ublic intervie8 in E$ on =ednesday)1 $%is s%o8s commitment t%at Service must be made into a mar6etin/ differentiator; and levera/ed t%us1

!1 0) %as t%e 8idest service net8or6 across t%e countryS some estimates ut it at a si/nificant multi le of service?infrastructure from our nearest
7.

Com etitor1 =%ile t%e sale si:e may also be a nice multi le from nearest; it s%o8s t%e com any is ready to ut our money 8%ere our mout% is1

(1 $%e com any %as introduced a 211 service ? once you re/ister your com laint; 8e 8ill call you bac6 in 2 %ours @%ence 2); set u an a ointment for t%e next convenient day for you @%ence t%e first 1); and s%o8 u in t%e romised 1?%our slot @%ence t%e second 1)1 If t%e next convenient day for you is t%e next day; t%atAs /reat too1 ItAs a disru tive action in an industry @includin/ 0)) %avin/ traditionally s%ied a8ay from its service res onsibilities; and t%us not levera/in/ any milea/e from it1 *1 $%e com any is romotin/ 211 t%rou/% ,$0; robably t%e first time after? sales service is bein/ communicated in t%is fas%ion by any roduct com any1 Iou may %ave seen t%e $9 commercial or %eard t%e radio advert or seen t%e ne8s a er ad or in?s%o res onse1
10. $%e

osters; bot% of 8%ic% revolve around

rom t

first 0)?o8ned service centre o ened in )ur/aon1 @Service in India

/enerally 8or6s t%rou/% aut%ori:ed service centers; in 0)As case t%ey 8or6

36

exclusively for 0)1) , com any?o8ned service centre tries t%at muc% %arder; 6no8s t%in/s better; and can even contribute as a revenue center1

37

O,Cective )( t.e -!)Cect

P!im !" ),Cective

$%e main ob3ective of filed survey durin/ t%e ro3ect 8as to find out t%e mar6et s%are of t%e 0) and also calculate t%e dis lay s%are1

5ind out t%e ositional dealer 8%o can sale t%e 0) roduct in lar/e volume1 $%e main ob3ective of researc% 8as to identify otential dealer and

develo ment t%ese dealer1 So 0) can ma6e t%em t%eir direct dealer1 5ind out t%e roblem faced by t%e dealer in sales and t%e distribution1

Sec)*+ !" ),Cective

=%ile urc%asin/ t%e consumer durables 8%ic% arameter is most

im ortant for t%e consumerT Do t%e consumers refer t%e financial facility for buyin/ consumer durableT

'o8 freCuently consumers c%an/e t%e consumer durableT $o en%ances t%e 6no8led/e of consumer durable mar6et1 $o increases t%e 6no8led/e consumer durable roduct of 0)1

$o en%ances t%e 6no8led/e about t%e mar6etin/ and brandin/ activity1

38

Research Methodology:
2esearc% met%odolo/y is considered as t%e nerve of t%e ro3ect1 =it%out a ro er 8ell?or/ani:ed researc% lan; it is im ossible to com lete t%e ro3ect and reac% to any conclusion1 $%e ro3ect 8as based on t%e survey lan1 $%e main ob3ective of survey 8as to collect a ro riate data; 8%ic% 8or6 as a base for dra8in/ conclusion and /ettin/ result1 T.e!e()!e6 researc% met%odolo/y is t%e 8ay to systematically solve t%e researc% roblem1 2esearc% met%odolo/y not only tal6s of t%e met%ods but also lo/ic be%ind t%e met%ods used in t%e context of a researc% study and it ex lains 8%y a articular met%od %as been used in t%e reference of t%e ot%er met%ods Re'e !c. +e'i/*; 2esearc% desi/n is im ortant rimarily because of t%e increased com lexity in t%e mar6et as 8ell as mar6etin/ a roac%es available to t%e researc%ers1 In fact; it is t%e 6ey to t%e evolution of successful mar6etin/ strate/ies and ro/rammers1 It is an im ortant tool to study buyerAs be%avior; consum tion attern; brand loyalty; and focus mar6et c%an/es1 , researc% desi/n s ecifies t%e met%ods and rocedures for conductin/ a articular study1 ,ccordin/ to 4erlin/er; N2esearc% Desi/n is a lan; conce tual structure; and strate/y of investi/ation conceived as to obtain ans8ers to researc% Cuestions and to control variance1 T"-e' )( !e'e !c. i'; De'c!i-tive Re'e !c. $%e ty e of researc% ado ted for study is descri tive1 Descri tive studies are underta6en in many circumstances 8%en t%e researc%es is interested to 6no8 t%e c%aracteristic of certain /rou suc% as a/e; sex; education level; occu ation or income1 , descri tive study may be necessary in cases 8%en a researc%er is interested in 6no8in/ t%e ro ortion of eo le in a /iven o ulation 8%o %ave in
39

articular manner; ma6in/

ro3ections of a certain t%in/; or determinin/ t%e

relations%i bet8een t8o or more variables1 $%e ob3ective of suc% study is to ans8er t%e N8%o; 8%at; 8%en; 8%ere and %o8O of t%e sub3ect under investi/ation1 $%ere is a /eneral feelin/ t%at descri tive studies are factual and very sim le1 $%is is not necessarily true1 Descri tive study can be com lex; demandin/ a %i/% de/ree of scientific s6ill on art of t%e researc%er1 Descri tive studies are 8ell structured1 ,n ex loratory study needs to be flexible in its a roac%; but a descri tive study in contrast tends to be ri/id and its a roac% cannot be c%an/ed every no8 and t%en1 It is t%erefore necessary; t%e researc%er /ive sufficient t%ou/%t to framin/ researc%1 Bue'ti)*' *+ +eci+i*/ t.e t"-e' of data to be collected and t%e rocedure to be used in t%is ur ose1 Descri tive studies can be divided into t8o broad cate/oriesR Cross Sectional and 0on/itudinal Sectional1 , cross sectional study is concerned 8it% a sam le of elements from a /iven o ulation1 $%us; it may deal 8it% %ouse%old; dealers; retail stores; or ot%er entities1 Data on a number of c%aracteristics from sam le elements are collected and analy:ed1 Cross sectional studies are of t8o ty esR 5ield study and Survey1 ,lt%ou/% t%e distinction bet8een t%em is not clear? cut; t%ere are some ractical differences; 8%ic% need different tec%niCues and s6ills1 5ield studies are ex? ost?factor scientific inCuiries t%at aim at findin/ t%e relations and interrelations amon/ variables in a real settin/1 Suc% studies are done in live situations li6e communities; sc%ools; factories; and or/ani:ations1 ,not%er ty e of cross sectional study is survey result; 8%ic% %as been ta6en by me1 , ma3or stren/t% of survey researc% is its 8ide sco e1 Detail information can be obtained from a sam le of lar/e o ulation 1+esidesS it is economical as more information can be collected er unit of cost1 In addition; it is obvious t%at a sam le survey needs less time t%an a census inCuiry1 Descri tive researc% includes survey and fact findin/ enCuiries of different 6inds of t%e ma3or
40

ur ose1

Descri tive researc% is descri tion of t%e state of affairs; as it exists at resent1 $%e main c%aracteristic of t%is met%od is t%at t%e researc%er %as no control over t%e variablesS %e can only re ort 8%at %as %a ened or 8%at is %a enin/1 $%e met%ods of researc% utili:ed in descri tive researc% are survey met%ods of all 6inds includin/ com arative and co relational met%ods1 $%e reason for usin/ suc% needs to be flexile in its a ri/id and its a roac%; but a descri tive study in contrast tends to be roac% cannot be c%an/ed ever no8 and t%en1

OBJECTI9E OF T$E STUDY $%e ob3ective 8as to find out t%e mar6et s%are of 0) roducts; advanta/es; and disadvanta/es of 0) roducts from dealers and to find out 8%at roblems t%ey are facin/ 8it% t%e 0) roducts so t%at roblems can be resolved to increase t%e sale1

PICTURE S$OWING T$E PRODUCT OF LG IN ONE OF T$E S$OP

41

D t c)&&ecti)* met.)+'; ,fter t%e researc% roblem; 8e %ave to identify and select 8%ic% ty e of data is to researc%1 ,t t%is sta/eS 8e %ave to or/ani:e a field survey to collect t%e data1 "ne of t%e im ortant tools for conductin/ mar6et researc% is t%e availability of necessary and useful data1 P!im !" + t R 5or rimary data collection; 8e %ave to lan t%e follo8in/ four im ortant as ects1 S m-&i*/ Re'e !c. I*'t!ume*t

Sec)*+ !" D t ? $%e Com anyAs rofile; 3ournals and various literature studies are im ortant sources of secondary data1 * &"'i' *+ i*te!-!et ti)*

D t

11 7uestionnaires 21 Pie c%art and +ar c%art Bue'ti)** i!e'; $%is is t%e most o ular tool for t%e data collection1 , Cuestionnaire contains Cuestion t%at t%e researc%er 8is%es to as6 %is res ondents 8%ic% is al8ays /uided by t%e ob3ective of t%e survey1 Pie c. !t; $%is is very useful dia/ram to re resent data; 8%ic% are divided into a number of cate/ories1 $%is dia/ram consists of a circle of divided into a number of sectors; 8%ic% are ro ortional to t%e values t%ey re resent1 $%e total value is re resented by t%e full create1 $%e dia/ram bar c%art can ma6e com arison amon/ t%e various com onents or bet8een a art and a 8%ole of data1

42

B ! c. !t; $%is is anot%er 8ay of re resentin/ data /ra %ically1 ,s t%e name im lies; it consist of a number of 8%is ered bar; 8%ic% ori/inate from a common base line and are eCual 8idt%s1 $%e len/t%s of t%e bards are ro ortional to t%e value t%ey re resent1 P!e- ! ti)* )( !e-)!t; $%e re ort 8as based on t%e analysis and resented 8it% t%e findin/s and

su//estions1 $%e sam le of t%e Cuestionnaires is attac%ed 8it% t%e re ort itself1 S m-&i*/ Met.)+)&)/"; Details of t%e sam lin/ met%odolo/y; I %ave made Cuestionnaire1 $%e one is made for t%e Customer1 <o1 of Cuestions in Cuestionnaires for customerR <o1 of Cuestion related to 0) roductR <o1 of eo le met durin/ t%e researc%R <o1 of res ondents durin/ t%e researc%R S m-&e u*it Professionals; +usiness man; Em loyees; 'ouse 8ife; =or6in/ 8omen; Students .& .3 5. 2.

43

A* &"'i'
711 'ave you ever urc%ased any consumer durable of 01)1T

Ies
.-+ 6es $o 5-+

<o

712=%ile urc%asin/ consumer durable 8%ic% arameter influences youT

Price
.-+ .*+ ,-+ 2rice 2roduct 3eature 4rand 1*+ ,*+ /ervice &ura0ility

Product feature +rand Service

Durability

731 5rom 8%ere you refer buyin/ consumer durables

Ex%ibitions Co1 Stores

.-+ /howroom !o. /tores ,-+ )*+ xhi0ition

S%o8room

44

7141Iou refer to buy from t%e same as you %ave mentioned in 713 because of follo8in/ reasons

,ttractive Price
'ttractive 2rice /ervice -+ .*+ --+ &emonstration #ffers

Service Demonstrations "ffers

1*+

7151=%ic% consumer durable of 01)1 you %aveT

C$9

!T: L!& .*+ -+ .*+ .*+ "efridgerators Washing 9achines 9icroWaves ';!

0CD

2E52ID)E2,$"2
,*+

=,S'I<) -,C'I<E -IC2"=,9E

7-+

,FC

71!1 'o8 freCuently you c%an/e your consumer durablesT 1?3 years
.81 years

3?5 years 5?1. years -ore t%an 1. years

45
7-+

-+

.-+

18- years -8.* years 1-+ 9ore than .* years

71&1Do you refer any financin/ sc%eme to urc%ase consumer durablesT Ies

<o
.*+ *+ 6es $o !an=t /ay <*+

46

RECOMMENDATIONS AND SUGGESTIONS

1.

0) s%ould im rove itAs after sale service because its %its badly 0)s mar6et s%are1

21 -ore detailed customaries service is to be rovided1 31 $%e trainin/ to in s%o demonstration s%ould be /iven at freCuent time interval and feed bac6 s%ould be considered ositively1 41 $%e com any s%ould loo6 into t%e matter of erson %irin/ for in s%o demonstration1 , bi/ 0) s%o8room s%ould %ave at least 2 suc% 6ind of erson1
5.

0) s%ould try ne8 dealer 8%o %ave t%e otential1 So t%ey can tar/et more mar6et1

!1 ,s t%ere is a bottle nec6 com etition bet8een Samsun/ and 0); it is necessary to ta6e measure ste s to overcome t%e area of do8nfall in 0) 8it% res ect to Samsun/1 &1 $%e mar6etin/ mana/ers s%ould ma6e better relations 8it% dealers and re utation of t%e com any1 (1 Customer considers Cuality as t%eir first reference; so t%e com any s%ould /ive more stress on t%is1 *1 $%e s8itc%in/ of customer from 0) roduct to ot%er brand is due to t%e bed after sell service in s%o 1 1.1$%e roduct is 8ell a8are and it is on to of mind of customer1 So com any s%ould al8ays im rove services and u date t%eir tec%nolo/y1

47

CUSTOMER SUR9EY FINDINGS

11 Secondary su orts lay an im ortant role in t%e customers mind and create ort includes a8areness amon/ t%e customers1 $%e secondary su Demonstration; Ex%ibition # Even S onsors1
2.

5rom t%e survey it 8as found out t%at t%e ma3ority of customers donAt buy consumer durables from ex%ibitions1 $%ey 3ust visit t%e ex%ibitions to see t%e co1 latest model1

31 $%ey 8ant to buy from t%e s%o8rooms or from co1 s%o8rooms1 5or t%em service is im ortant 1+eside convenience and ot%er factors service is 6ey factor1 41 ,lso ma3ority of customers do not 8ant any financin/ sc%eme for urc%asin/ t%e durables1 51 Customers are also no8 very c%oosy in buyin/ t%e roduct and it is

im ortant for t%e com any to ma6e loyal customer of t%eir brand1 !1 In survey 8e found t%at 0) %as ca tured maximum mar6et s%are in every cate/ory1 0) dominates C$9; 0CD; and 2efri/erator; and =as%in/ mac%ine; cate/ory1 &1 0) and Samsun/ %ave bottle nec6 com etition in $9 and 2E51 cate/ory1 (1 $%e roduct is 8ell a8are and it is on to of mind of customer1 *1 Customers are also no8 very c%oosy in buyin/ t%e roduct and it is im ortant for t%e com any to ma6e loyal customer of t%eir brand1

48

RECOMMENDATIONS AND SUGGESTIONS

1.

Dis lay s%are s%ould be increased 8%ere t%ere is less t%an 5.D as 0) also believes t%at #JO DIK$TA $AI WO BIKTA $AI%4

21 Com any s%ould try to im rove service1 <o doubt t%e com any roducts %ave tec%nically ed/e over com etitors but in lon/ run it may %am er t%e com anyAs rofit1 31 Com any s%ould concentrate more on its ma3or drivers 0CD; I$; and )S-1 +randin/ and romotions s%ould be done effectively as it creates a lon/ lastin/ ima/e in t%e mind of customers1 41 Com any s%ould also cater to t%e needs of sub dealers as some of t%e sub dealers %ave otential of %i/% sales1

49

LIMITATIONS
Every study %as certain limitations1 In my study; also t%ere 8ere certain limitations; 8%ic% I could not able to solve1

11 $%e researc% 8as conducted in a very small area1 21 -y researc% 8or6 eriod 8itness t%e bi//est u s and do8ns in roduct sale of different brands; 8%ic% affected t%e erce tion of t%e customer1 $%is 8as bi//est dra8bac6 of my study1 31 $ime factor 8as also im ortant for me1 41 I %ad only found t%e u 51 er?middle class family to fill u t%e Cuestionnaire; but /enerally; an avera/e middle class family 8as reCuired for t%e study1 $%e sam le si:e is also very small 8%ic% re resent my researc% on consumer be%avior

50

SOURCES OF DATA COLLECTED

8881l/india1com 8881/oo/le1com 88818i6i edia1com +usiness 8orld +usiness today 0) ma/a:ine Economics times <e8s a er $imes of India

51

C)*'ume! 'u!ve" Bue'ti)** i!e

711 'ave you ever urc%ased any 0) consumer durableT
a)

Ies

b) <o

712=%ile urc%asin/ consumer durable 8%ic% arameter influences youT a) Price b) Product feature c) +rand d) Service e) Durability 731 5rom 8%ere you refer buyin/ consumer durables a) Ex%ibitions
b)

Co1 Stores

c) S%o8room

7141Iou refer to buy from t%e same as you %ave mentioned in 713 because of follo8in/ reasons a) ,ttractive Price b) Service c) Demonstrations d) "ffers e) Convenience
52

7151=%ic% consumer durable of 01)1 you %aveT ,1 C$9 +1 0CD

C. D. E. F.

??????????????????? ??????????????????? ??????????????????? ??????????????????? ??????????????????? ???????????????????

2E52ID)E2,$"2S =,S'I<) -,C'I<E -IC2"=,9ES ,FC

71!1 'o8 freCuently you c%an/e your consumer durablesT a) 1?3 years b) 3?5 years c) 5?1. years d) -ore t%an 1. years

71&1Do you refer any financin/ sc%eme to urc%ase consumer durablesT a) Ies b) <o

53