INTRODUCTION OF BRANDING

Consumers expect electrical household appliances to be safe, for themselves, their

children and the older members of their families.

Individual consumption expenditure by households covers the actual and imputed final
consumption expenditure incurred by households on the goods and services they require
to satisfy their individual needs and wants.

The White Goods organization is part of a major group of companies that sells electrical
appliances in industrial, commercial and domestic markets. At the time the events in this
case took place, it was not a company in its own right but a division of a larger
organization called Complete Energy Systems. The division dealt only with the domestic
market (households) and two other divisions dealt respectively with industrial and
commercial markets. The case appears in two parts, both dealing with a proposed
reorganization. The first part sets the scene by describing the situation that led up to the
proposed reorganization and part two describes management proposals for the
reorganization itself and the reactions of groups of staff and individuals to the proposals.

It is important to stress that while a trade union plays a prominent part in events, this is
not a case study in industrial relations. Therefore, while reactions to managements
proposals largely surfaced through the trade union, it is the reactions themselves on
which you should focus your attention, rather than the industrial relations aspects. Like
most industrial relations issues involving negotiation, management’s motives and
considerations were largely unknown to the trade union, which had to deal with the
information provided by management at face value. Nor was management privy to a great
deal of what went on behind the scenes between the trade union and its members.
Therefore, unless the case explicitly states that something was revealed by one party to
the other, you should assume that it was known only to the party concerned.

Heavy consumer durables such as air conditioners, refrigerators, stoves, etc., which used
to be painted only in white enamel finish. Despite their availability in varied colors now,
they are still called white goods. See also brown goods.

[1]
 INTRODUCTION OF LG

LG Electronics. LG Electronics Inc. (Korean: LG) is a South Korean multinational electronics

company headquartered in Yeouido-dong, Seoul, South Korea, and is part of the LG Group,
employing 82,000 people working in 119 local subsidiaries worldwide. In 1995, to compete
better in the Western market, the Lucky-GoldStar Corporation was renamed "LG". The company
also associates the letters LG with the company's tagline "Life's Good".

On 30 November 2012, comScore released a report of the October 2012 U.S. Mobile Subscriber
Market Share that found LG lost its place as second in the U.S. mobile market share to Apple
Inc.

On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to become
second largest in U.S. market share.

On 7 August 2013, comScore released a report of the June 2013 U.S. Smartphone Subscriber
Market Share that found LG fell to fifth place in the U.S mobile market share. LG Electronics
India is the fastest growing company in the consumer electronics, home appliances and computer
peripherals industry today. LG Electronics is continually providing superior technology products
& value for money to more than 50 lakh households in India.
LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and design. The companys goal is to rank
among the top 3 consumer electronics and telecommunications companies in the world by 2010.
To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing that
only great people can create a great company.

[2]
 OBJECTIVE OF STUDY

• The research will provide an invaluable opportunity to conduct a research and

practicing the theoretical knowledge while pursuing and examining them against the
ground realities.

• I am concentrating on developing questionnaire and retrieving information. Apart

from it I also collect secondary data, mainly taken from journals, newspapers and
Internet will also be taken into account for this research.

• This Dissertation project is a study of consumer satisfaction in white goods products

of LG and Samsung will be based on the comparison between LG and Samsung
consumer satisfaction.

i. What are the factors that affect the consumer satisfaction?

ii. Determining the factors affecting the consumer satisfaction.

iii. What is the magnitude of those factors regarding the consumer

satisfaction?

PERSONAL OBJECTIVE:

Personal objectives in this project are to gain experience of working in the market and
interacting with people and knowing their views as consumer. Enhancing the indirect
learning about the market and consumer behaviour is another objective which will be
helpful further in future in the field of marketing.

[3]
 METHODOLOGY

The various methodology used in this project are collected through:

1) Primary data- through providing a Questionnaire to the people at a sample size of
about 50 members.

2) Secondary data- through collecting the information about the company from various
resources like text books , magazines ,advertisement wall-posters , TV ads, and
Internet.

3) In addition to these collections of the data , we have also used some traditional
methods of study regarding our concern, like, motivating the customers, making them
convenient in the way they express their opinion, their shopping of LG products by
brand value.

4) This project had selected these traditional methods of the data collection in order to
maintain a true and trusted coordination in between the modern , as well as these
traditional formalities to maintain standards of the data , provided in this project.

5) In order to collect some data directly from the public users (customers) of LG, we had
prepared a questionnaire to collect their feedback. A sample questionnaire is
displayed in the upcoming pages. That sample questionnaire has been distribute to the
people living near to us residence.

[4]
 CHAPTERISATION

CHAPTER-1: Introduction, Objectives, Methodology, and Chapterisation of the project

on the whole.

CHAPTER-2: Company Profile i.e. General Profile (mission, origin & history,
objectives, SWOT, Unique Achievements, Future plans) Industrial Profile

CHAPTER-3: Theoretical framework

CHAPTER-4: Findings and Analysis

CHAPTER-5: Summary & Conclusion

Annexure

Bibliography

[5]
 2. COMPANY PROFILE OF LG

GENERALAL PROFILE

BRIEF HISTORY OF LG

LG Corp. established as Rak-Hui Chemical Industrial Corp. in 1947. In 1952, Rak-Hui

(pronounced "Lucky", currently LG Chem) became the first South Korean company to
enter the plastics industry. As the company expanded its plastics business, it
established GoldStar Co. Ltd. (currently LG Electronics Inc.) In 1958, both companies
Lucky and GoldStar merged and formed Lucky-Goldstar.
GoldStar produced South Korea's first radio. Many consumer electronics were sold under
the brand name GoldStar, while some other household products (not available outside
South Korea) were sold under the brand name of Lucky. The Lucky brand was famous
for hygiene products such as soaps and HiTi laundry detergents, but the brand was mostly
associated with its Lucky and Perioe toothpaste. Even today, LG continues to
manufacture some of these products for the South Korean market, such as laundry
detergent.
In 1995, to compete better in the Western market, the Lucky-Goldstar Corporation was
renamed "LG". The company also associates the letters LG with the company's tagline
"Life's Good". Since 2009, LG has owned thedomain name LG.com.
INTERNATIONAL MARKETS :
On 30 November 2012, comScore released a report of the October 2012 U.S. Mobile
Subscriber Market Share that found LG lost its place as second in the U.S. mobile market
share to Apple Inc.
On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to
become second largest in U.S. market share.
On 7 August 2013, comScore released a report of the June 2013 U.S. Smartphone
Subscriber Market Share that found LG fell to fifth place in the U.S mobile market share.
Group families
Electronics industries

• LG Electronics
• LG Appliances
• LG Display
• LG Innotek
• Silicon Works
• Lusem

[6]
Chemical industries

• LG Chem
• SEETEC
• LG Household & Health Care
• Ĭsa Knox
• Haitai HTB
• The Face Shop
• Beyond
• Coca-Cola Beverage Company (South Korea)
• LG Hausys
• LG Tostem BM
• LG Life Sciences
• LG MMA
• LG Lever Korea
• Food & Bevarges
• Home Care
• Personal Care
Telecommunications

• LG U+
• CS Leader
• A•IN
• LG Dacom
• LG Powercom
• DACOM Crossing
• DACOM Multimedia Internet
• CS ONE Partner
• LG CNS
• LG N-Sys
• V-ENS
• BIZTECH & EKTIMO
• Ucess Partners
• SERVEONE
• LG International
• monkey house
• pixdix
• Korea Commercial Vehicle
• LG Solar Energy
• G2R
• HS Ad
[7]
 INDUSTRY SIZE, GROWTH, TRENDS:

• The consumer durables market in India was estimated to be around US$ 5 billion
in 2007-08. More than 7 million units of consumer durable appliances have been
sold in the year 2006-07 with colour televisions (CTV) forming the bulk of the
sales with 30 per cent share of volumes. CTV, refrigerators and Air-conditioners
together constitute more than 60 per cent of the sales in terms of the number of
units sold.

• In the refrigerators market, the frost-free category has grown by 8.3 per cent while
direct cool segment has grown by 9 per cent. Companies like LG,
•
• Whirlpool and Samsung have registered double-digit growth in the direct cool
refrigerator market.

• In the case of washing machines, the semi-automatic category with a higher base
and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8
per cent to 229,000 units, respectively. In the air-conditioners segment, the sales
of window ACs have grown by 32 per cent and that of split ACs by 97 per cent.

• Since the penetration in the urban areas for these products is already quite high,
the markets for both C-TV and refrigerators were shifting to the semi-urban and
rural areas. The growth across product categories in different segments is assessed
in the following sections.

• Consumer appliances are electronically operated machines that are used primarily
in domestic activities like cooling, heating, cooking, cleaning, refrigerating,
entertainment etc. Based on the tasks performed by them they are classified as
entertainment products, cooling products, heating products, photographic
products, household etc.

• Appliances which are required for fulfilling daily needs of a household come
under kitchen appliances. Consumer appliances are electronically operated
machines that are used primarily in domestic activities like cooling, heating,
cooking, cleaning, refrigerating, entertainment etc. Based on the tasks performed
by them they are classified as entertainment products, cooling products, heating
products, photographic products, household appliances etc.

• Appliances which are required for fulfilling daily needs of a household, come
under kitchen appliances like refrigerator, water purifier, air purifier, toaster,
microwave ovens etc. Entertainment products are further divided into two sectors-
audio & video. The audio sector consists of hi-fi systems, cassette, CD, MP3
players, stereos, wireless headphone. While the video
[8]
• sector consists of television, plasma TV, LCD TV etc. Another industry which is on a
boom is gaming industry consisting of video games, game consoles etc.

• The growing needs of the consumers are driving the latest technological innovations
in the consumer appliances industry. A look at today's consumer appliances market,
there are consumer electronics products with features like ultra thin designs, function
convergence, environmental protection, energy saving and lower prices. New
products, which are easy to use and provide a lot of facilities, are being launched by
the consumer appliance manufactures, which provide a wide choice to the consumers.
With so many selections and so many different technologies, products have increased
considerable market demands and giving a hard time to manufacturers & suppliers of
consumer electronics appliances.

• China, Taiwan and Italy are the largest manufacturers of consumer appliances. Global
consumer appliances industry's sales revenues reached US$950 billion in
2006.According to an estimate the consumer appliances industry in China will be the
strongest by 2010, as the demand for consumer appliances is rising because of the
rapid pace of economic development taking place in China and low cost of
manufacturing of these appliances. China is expected to become the second largest
market for consumer appliances in the world after US.

• One of the biggest working parts of any household is home appliances for the kitchen,
and without a solid line up, could be difficult to manage home cooking. When
choosing any set of appliances, it's important to look at several key features, prices,
and warranty information. Making an educated decision about these things can help
save time and money.

• First and foremost, before buying anything in regards to home appliances for the
kitchen, it's important to measure the space that you have free. This is a crucial thing
to remember no matter what you're purchasing in the near future. By measuring the
free space that you have, you can make sure that you will be utilizing your appliance
without any major complications. The second step is to set a budget. Setting a budget
might seem trivial, but it will save you energy when you're ready to purchase your
items, and are faced with a purchasing decision.

[9]
• After measuring your space and setting a budget, consider looking at the various color
options that are available to you. Many people want to match their kitchen décor with
their appliances. It's important to consider what style and décor you want to go with,
especially if you're buying home appliances for the kitchen, separately. If you
purchase a limited edition color, or a color that isn't necessarily the norm, you might
have a hard time matching everything in your kitchen. Consider something standard
like black, white, or stainless steel if you're purchasing items one by one. If you're
buying sets, you might be able to match everything with relative ease, but it might
cost more up front.

• Energy star rated options are gaining popularity amongst all different walks of life.
Look for highly efficient, energy saving appliances, and you'll ensure money is saved
over time. Highly efficient machines run better and faster, and consume at least 30%
less energy than other options. You'll be amazed at the low cost of use, and definitely
be happy to own one. It is true that they cost more up front, but you will save money
over time. Traditional options still abound, so if you're not ready to take the energy
saver leap, do not fret, there are still other options available for the consumer

• Another key point to looking at home appliances for the kitchen is warranty
information. Never forget to read the fine print on any warranty information that
comes coupled with your investment. Some manufacturers offer a limited time;
limited warranty and that could end up costing you down the road. To make sure you
have peace of mind, always look for extended warranty options, or make sure you
understand the terms of your limited warranty. Making sure your appliance works for
the longevity you desire from your home is vital to picking out the right appliance.

• There is a plethora of options to explore in regards to ovens, sinks, refrigerators, and

so much more. Always shop around for the best price, and make sure you look at
several key points before investing in anything. You can ensure peace of mind by
doing some preliminary thinking, and investing in the right option that fits your
needs.

[10]
CONSUMER DURABLE PRODUCTS

REFRIGERATOR

WASHING MACHINE

[11]
LCD TV

[12]
SWOT ANALYSIS: CONSUMER DURABLE HISTORY
STRENGTH
o “Accessory to Necessary” Air-
conditioners are no longer perceived
to be a item of luxury.
o Advancement of technology which
gives the companies ability to
introduce new products and new
product features.
o High Growth. Key drivers being
Urban and Rural.
o Government Policies in favour of
Industry includes infrastructure
development, reduction in excise duty
and so on.
OPPORTUNITY
o Diversification. Developing new
products for new markets.
o Easy availability of finance has
stimulated consumers to buy
durables.
o Changes in Consumer Outlook
from spend now-save later mentality
leading to high disposable income.
[13]
WEAKNESS
o Supply continues to outstrip
Demand. Demand Cyclical and
seasonal.
o Volatile performance of the
agricultural sector have a negative
impact on demand. The sector's
performance is highly dependent on
monsoon and reforms, which has
failed often.
THREAT
o Dozen companies operating in the
white goods segment. Prices would
continue to remain depressed and
margins will be under pressure.
o Threats of cheaper imports from
China and other South East Asian
countries
 LG INDIA PVT.LTD
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South
Korea was established in January, 1997 after clearance from the Foreign Investment
Promotion Board (FIPB).

The trend of beating industry norms started with the fastest ever-nationwide launch by
LG in a period of 4 and 1/2 months with the commencement of operations in May 1997.
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998,
with an investment of Rs 500 Crores. This facility manufactured Colour Televisions,
Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG
also commenced the home production for its eco-friendly Refrigerators and established
its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The
beginning of 2003 saw the roll out of the first locally manufactured Direct Cool
Refrigerator from the plant at Greater Noida.

[14]
In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra
that commences operations in October this year. Covering over 50 acres, the facility
manufactures Color Televisions, Air Conditioners, Refrigerators, Washing Machines
Microwave Ovens Color Monitors and GSM phone. The Greater Noida manufacturing
unit line has been designed with the latest technologies at par with international standards
at Korea and is one of the most Eco-friendly units amongst all LG manufacturing plants
in the world. LG has been able to craft out in eight years, a premium brand positioning in
the Indian market and is today the most preferred brand in the segment. Various studies
have shown that the consumer is well informed on the health awareness front.

LG was one of the first companies who recognized the emerging change in consumer
needs and decided to differentiate their products on the basis of technology which
appealed to the consumer on the basis of health benefits.

Its vision was to become a 'Health Partner' for its consumers worldwide and therefore
formulated its corporate philosophy to make peoples' lives better, convenient and
healthier. The CTV range offered by LG has 'Golden Eye' technology, which senses the
light levels in the room and adjusts the picture to make it more comfortable for the eyes.
The entire range of LG air-conditioners have 'Health Air System', which not just cools,
but keeps pollution out. Similarly, microwave ovens have the 'Health Wave System',

Refrigerators have the 'PN System', which preserve the nutrition in food and washing
machines have 'Fabricare System', which takes the health factor down to ones clothes. All
the products offered by the company have unique technologies, developed by its R&D
departments that give consumers a healthier environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry. The company had till the
month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since
its inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any company
in the Indian consumer electronics and home appliances industry. Having achieved this
milestone, LG achieved another benchmark with the first ever sales of One lakh ACs
(Windows and Splits) in a calendar year.

In Colour Televisions having set the sales target of one million units of Color Televisions
for 2002, LG has already achieved the one million mark in the month ahead of its target.
In 2003, LG has emerged as the leader in Colour Televisions, Semi Automatic Washing
Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In the year
2004, LGEIL achieved unprecedented sales efficiency both in Direct Cool and Frost Free
segment and sold more than 1 million units of refrigerators outperforming industry
expectations.

[15]
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances and computer peripherals industry today. LG Electronics is continually
providing superior technology products & value for money to more than 50 lakh
households in India.
The company has achieved a turnover of Rs 6500 crore in 2004 and aims to touch a
turnover of 10 Billion US Dollars by 2010 and commands an enviable position in the
GSM mobile phone market. It has already started manufacturing of GSM phones in its
plant at Pune.

LG India has also been taking on a slew of initiatives as a part of Corporate Social
Responsibility. LGEIL is proud to have adopted about 24 villages around our Greater
Noida facility. LG extends Free Medical Care, which comprises of free checkups and a
free distribution of medicines on a daily basis. LGEIL is also generating self-employment
opportunities for the people in the form of tailoring, knitting etc. in addition to all this,
LG also sends veterinary doctors regularly to these villages. Besides all this, LG India is
one of the very few companies in the country that has an internal Energy, Environment,
Safety and Health Department. This function caters to activities like Energy
Conservation, Environmental Issues, Work Place Fire and Safety as well as Occupational
Health for the benefit of the employees.

VISION OF LG INDIA PVT.LTD.

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and design. The companys goal is
to rank among the top 3 consumer electronics and telecommunications companies in the
world by 2010. To achieve this, we have embraced the idea of “Great Company, Great
People,” recognizing that only great people can create a great company.

[16]
[17]
 AWARDS:

New Delhi, October 24th October, 2007: LG Electronics India Pvt. Ltd. today achieved
another landmark by bagging the award for excellence in Exports of Electronic Hardware
by the Electronics and Computer Software Export promotion Council of India (ESC)
.This achievement is another feather in the cap for the company after achieving a
milestone of USD 186 million in exports for calendar year 2006. This milestone has
reiterated LG‟s prime position not only in the domestic but the international markets as
well.

The award was received by Mr. Ajay Sapra, DGM, Corporate Exim,

LGEIL and Mr.Jatin Madan, AGM, Exports, LGEIL, on behalf of LG

on 24th October, 2007 at a function held at Hall Kamal Mahal, Hotel Maurya Sheraton,
Sardar Patel Marg, New Delhi. Shri A. Raja, Union Minister for IT and Communications
presented the Awards.

LG has emerged as top player in Consumer Electronics Exports and is exporting a range
of products primarily to the highly competitive markets of Middle East, Asia and Africa.
The award was given to LG for its excellent exports performance in Consumer
Electronics (CTV, Monitors, GSM, Personal Computers and ODD) during the financial
year 2005-2006. During this period, LG achieved exports worth USD 133 Million
defined product categories.

[18]
 QUALITY INNOVATION
The policy of quality assurance is to provide customers with utmost satisfaction by
supplying zero defects.

LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:
No.1 LG – is the VISION

“Jeong-DO” Management is LG‟s unique application to ethics. LG will succeed through

fair management practices and constantly developing our business skill.
a) Honest with our customer
b) Providing great values to customer through constant innovation & and
development.
c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer

[19]
 CODE OF CONDUCT LG

1. Responsibility and obligations to customers :

• Respect for Customers
• Creating Value
• Providing Value

2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations

3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners

4 Basic Ethics for Employees

• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest

5.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

[20]
LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South
Korea was established in January 1997 after clearance from the Foreign Investment
Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater
Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna, Road, Greater Noida,
India.

This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and

Microwave Ovens.

''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60

premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a
total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive
stores. Brand shoppes will be placed in the premium segment and the target audience will
comprise buyers interested in premium and high end products.

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.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is
planning a brand new image. To attract inspirational and young consumers across India,
company will roll out a new marketing strategy. The exercise will cost the company Rs
360 crore.

[21]
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today.

LG Electronics is continually providing, superior technology products & value for money
to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary
this year.

LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics'

largest R&D centre outside Korea. We at LGSI focus on niche technology areas such
as mobile application development, digital video broadcast and biometrics software and
support LG Electronics with our expertise. Motivated by a passion for technology, a
strong work culture and loyalty to the organization, we are determined to see LG become
one of the top three brands globally.

Prominent consumer electronic company, LG Electronics Inc. has said that it expects the
sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing
director of LG Electronics India has said that the company has earmarked 4.8 billion
rupees for investment purpose in India this year. The said money will be used to market
as well as manufacture new products.

LG Electronics, which is originally a South Korean Company with branch in India,

informed that its sales of GSM mobile phones, color televisions, air conditioners and
other household goods in the Indian market was to the tune of 95 billion rupees ($2.4
billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion
rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on catering to the
high-end consumer market which will help boost sales this year. India churns out six (6)
per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG
exports to 40 countries.

[22]
 Fields of activity Companies
Holding company LG Corp.
LG Electronics
LG Display
Electronic industry LG Innotek
LG Siltron
Lusem
LG Chem
LG Household & Health Care
Chemical industry LG Hausys
LG Life Sciences
LG MMA
LG Uplus
LG International Corp.
Telecommunication and Services LG CNS
SERVEONE
LG N-Sys

COMMUNICATION STRATEGY OF LG

• Tag line “Life‟s Good”.

• LG positioned itself as an Indian brand. They are hitting the emotional
attributes of Indian consumer .
• The warmth and affection that a brand showers upon its target audience
will be reciprocated .
• For Television market they are using child, because child plays the role
of influencer in purchase of TV sets.
• LG home appliances communication message is totally based on health
message like “Golden eye technology” and “Intello”.

[23]
[24]
 3.THEORETICAL FRAMEWORK

DEFINITION:

A brand can be defined as a set of tangible and intangible attributes designed to create
aware-ness and identity, and to build the reputation of a product, service, person, place,
or organization. The holistic perspective of branding as a long-term strategy includes a
wide set of activities ranging from product innovation to marketing communications.

The objective of branding strategy is to create brands that are differentiated from the
competi-tion, thereby reducing the number of substitutes in the marketplace. When high
brand equity is achieved through brand differentiation, the price elasticity of demand
becomes low, allowing the company to increase price and improve profitability.

Branding strategies are built on the inter-dependent frameworks of competitive brand

positioning, value chain development, and brand equity management.

Competitive brand positioning requires the identification of a distinct market space and a
cognitive location as perceived by consumers. Effective brand positioning helps strategists
determine what the brand stands for, its unique selling points, how it overlaps with competing
brands, and the value derived from the usage of the brand. A competitive position is attained
through strong brand recognition, which can be developed by differentiating product
attributes such as product features, quality, selection, price, and availability. Competitive
brand posi-tioning can be developed by addressing each stage in the value chain from
production to the point of sale.

Value chain development is based primarily on product innovation and market development
. Product innovation includes strategic initiatives on product design and the ability to
introduce new product categories and line extensions. Market development revolves around
pricing strategy, distribution strategy, and marketing communications. Communi-cations are
designed to create a consumer mindset where brand awareness, associations, and attitudes are
formed. Brand names, logos, advertising, and product packaging constitute the visual
component of market development.

Major competitors in the food manufacturing industry include Nestlé, PepsiCo, Unilever,
and Kraft. The corporations strive to improve their product offering giving particular atten-
tion to the freshness of the product, health, nutrition, and cost considerations. Over and above,
they have to differentiate their brands within their own categories and within the wider
market space. Nestlé owns 17 brand categories, with 23 separate brands in the cereal category
alone. Each brand is developed with a sepa-rate identity created through distinct product
content, packaging, and product line extensions. Pricing scales add to the distinction of high
value and low value brands in the same cereal category.
[25]
 Branding is all of the ways you establish an image of your company in your customers’ eyes.

By building a website that describes what you offer, designing ads that promote your goods
and services, selecting specific corporate colors that will be associated with your company,
creating a logo, and featuring it across all your social media accounts, you are branding your
company. That is, you are shaping how and what people’s perceptions of your business are.

And what your customers say about your brand is the reality (not what you’d like them to
think). It’s the impression that pops into their minds when they hear your business’ name. It’s
based on a feeling they have that is based on their experiences they’ve had with you, good or
bad.

The purpose of branding is to simply and easily help your customers understand what you offer
and how you’re different. But it’s not only a USP (unique selling proposition), it is the
combination of all the ways you communicate what you stand for.

In addition to your logo and corporate colors, you can communicate your brand message
through:

• Your store environment and atmosphere

• How your staff members treat customers
• How your staff members dress
• The products you carry
• The price you charge
• Product packaging
• Public relations
• Public speaking
• Direct mail
• Sponsorships
• Advertising
• Nonprofit partnerships

[26]
Types Of Brands:

We often talk about “brand” as if it is one thing. It’s not of course – in fact, the meaning and the
use of the term differs, quite markedly, depending on the context. By my reckoning, brand is
categorized in at least 21 different ways. (So much for the single minded proposition!). In no
particular order:

1. Personal brand – Otherwise known as individual brand. The brand a person builds around
themselves, normally to enhance their career opportunities. Often associated with how people
portray and market themselves via media. The jury’s out on whether this should be called a form
of brand because whilst it may be a way to add value, it often lacks a business model to
commercialize the strategy.

2. Product brand – Elevating the perceptions of commodities/goods so that they are associated
with ideas and emotions that exceed functional capability. Consumer packaged goods brands
(CPG), otherwise known as fast moving consumer goods brands (FMCG), are a specific
application.

3. Service brand – Similar to product brands, but involves adding perceived value to services.
More difficult in some ways than developing a product brand, because the offering itself is less
tangible. Useful in areas like professional services. Enables marketers to avoid competing skill
vs skill (which is hard to prove and often devolves to a price argument) by associating their
brand with emotions. New online models, such as subscription brands, where people pay small
amounts for ongoing access to products/services, are rapidly changing the loyalty and technology
expectations for both product and service brands – for example, increasingly products come with
apps that are integral to the experience and the perceived value.

4. Corporate brand – Otherwise known as the organizational brand. David Aaker puts it very
well: “The corporate brand defines the firm that will deliver and stand behind the offering that
the customer will buy and use.” The reassurance that provides for customers comes from the fact
that “a corporate brand will potentially have a rich heritage, assets and capabilities, people,
values and priorities, a local or global frame of reference, citizenship programs, and a
performance record”.

5. Investor brand – Normally applied to publicly listed brands and to the investor relations
function. Positions the listed entity as an investment and as a performance stock, blending
financials and strategy with aspects such as value proposition, purpose and, increasingly, wider
reputation via CSR. As Mike Tisdall will tell you, done well, a strong investor brand delivers
share price resilience and an informed understanding of value.

[27]
6. NGO (Non Governmental Organization) or Non Profit brand – An area of transition, as
the sector shifts gear looking for value models beyond just fundraising to drive social missions.
Not accepted by some in the non profit community because it’s seen as selling out. Necessary in
my view because of the sheer volume of competition for the philanthropic dollar. This paper is
worth reading.

7. Public brand – Otherwise known as government branding. Contentious. Many, including

myself, would argue that you can’t brand something that doesn’t have consumer choice and a
competitive model attached to it. That’s not to say that you can’t use the disciplines and
methodologies of brand strategy to add to stakeholders’ understanding and trust of government
entities. That’s why I talk about the need for public entities to develop trustmarks rather than
brands. Jill Caldwell takes this idea of how we consider and discuss infrastructure further and
says we now have private-sector brands that are so much a part of our lives that we assume their
presence in much the same way as we assume public services. Caldwell refers to brands like
Google and Facebook as “embedded brands”.

8. Activist brand – Also known as a purpose brand. The brand is synonymous with a cause or
purpose to the point where that alignment defines its distinctiveness in the minds of consumers.
Classic examples: Body Shop, which has been heavily defined by its anti-animal-cruelty stance;
and Benetton, which confronts bigotry and global issues with a vehemence that has made it both
hated and admired.

9. Place brand – Also known as destination or city brands. This is the brand that a region or city
builds around itself in order to associate its location with ideas rather than facilities. Often used
to attract tourists, investors, businesses and residents. Recognizes that these groups all have
significant choices as to where they choose to locate. A critical success factor is getting both
citizens and service providers on board, since they in effect become responsible for the
experiences delivered. Most famous example is probably “What happens in Vegas stays in
Vegas”. Other place brand examples here.

10. Nation brand – Whereas place brands are about specific areas, nation brands relate, as per
their name, to the perceptions and reputations of countries. Simon Anholt is a pioneer in this
area. Some good models comparing nation and place branding here.

11. Ethical brand – Used in two ways. The first is as a description of how brands work,
specifically the practices they use and the commitments they demonstrate in areas such as worker
safety, CSR and more – i.e. a brand is ethical or it is not?. Secondly, denotes the quality marques
that consumers look for in terms of reassurance that the brands they choose are responsible.
Perhaps the most successful and well known example of such a brand is Fairtrade. These types of
ethical brands are often run by NGOs – e.g. WWF’s Global Forest and Trade Network.

[28]
12. Celebrity brand – How the famous commercialize their high profile using combinations of
social media delivered content, appearances, products and gossip/notoriety to retain interest and
followers. The business model for this has evolved from appearances in ads and now takes a
range of forms: licensing; endorsements; brand ambassador roles; and increasingly brand
association through placement (think red carpet).

13. Ingredient brand – The component brand that adds to the value of another brand because of
what it brings. Well known examples include Intel, Gore-Tex and Teflon. Compared with OEM
offerings in manufacturing, where componentry is white label and simply forms part of the
supply chain, ingredient brands are the featured elements that add to the overall value
proposition. A key reason for this is that they market themselves to consumers as elements to
look for and consider when purchasing. In this interesting piece, Jason Cieslak wonders
though whether the days of the ingredient brand are drawing to a close. His reasons? Increased
fragmentation in the manufacturing sector, lack of space as devices shrink, stronger need for
integration and lack of interest amongst consumers in what goes into what they buy.

14. Global brand – The behemoths. These brands are easily recognized and widely dispersed.
They epitomize “household names”. Their business model is based on familiarity, availability
and stability – although the consistency that once characterized their offerings, and ruled their
operating models, is increasingly under threat as they find themselves making changes, subtle
and otherwise, to meet the cultural tastes and expectations of people in different regions.

15. Challenger brand – The change makers, the brands that are determined to upset the
dominant player. While these brands tend to face off against the incumbents and to do so in
specific markets, “Being a challenger is not about a state of market; being number two or three or
four doesn’t in itself make you a challenger,” says Adam Morgan of Eat Big Fish. “ … It is a
brand, and a group of people behind that brand, whose business ambitions exceed its
conventional marketing resources, and needs to change the category decision making criteria in
its favor to close the implications of that gap.”

16. Generic brand – The brand you become when you lose distinctiveness. Takes three forms.
The first is specific to healthcare and alludes to those brands that have fallen out of patent
protection and now face competition from a raft of same-ingredient imitators known as generics.
The second form of generic brand is the brand where the name has become ubiquitous and in so
doing has passed into common language as a verb – Google, Xerox, Sellotape. The third form is
the unbranded, unlabelled product that has a functional description for a name but no brand value
at all. This last form is the ultimate in commoditization.

[29]
17. Luxury brand – Prestige brands that deliver social status and endorsement to the consumer.
Luxury brands must negotiate the fine line between exclusivity and reality. They do this through
quality, association and story. These brands have perfected the delivery of image and aspiration
to their markets, yet they remain vulnerable to shifts in perception and consumer confidence and
they are under increasing pressure from “affordable luxury” brands. Coach for example struggled
with revenues in 2014 because of declining sales growth in China and Japan, two of the world’s
key luxury markets.

18. Cult brand – The brands that revolve around communities of fierce advocates. Like the
challenger brands, these brands often pick fights with “enemies” that can range from other
companies to ideas, but pure-play cult brands take their cues from their own passions and
obsessions rather than the market or their rivals. They tend to have followers rather than
customers, set the rules and ask people to comply and, if they market at all, do so in ways where
people come to them rather than the other way around.

19. Clean slate brand – The pop-ups of brand. Fast moving, unproven, even unknown brands
that don’t rely on the heritage and history that are so much a part of mainstream brand strategy.
These brands feed consumers’ wish for the new and the timely. Read more about them here.

20. Private brand – Otherwise known as private label. Traditionally, these are value-based,
OEM-sourced retail offerings that seek to under-cut the asking price of name brands. They focus
on price. There is significant potential though in my view for these brands to become more
valuable and to play a more significant role at the ‘affordable premium’ end of the market. For
that to happen, private brands will need to broaden their appeal and loyalty through a wider
range of consideration factors.

21. Employer brand – The ability of a company to attract high quality staff in much-touted
competitive markets. Often tied to an Employee Value Proposition. Focuses on the recruiting
process though it is sometimes expanded to include the development of a healthy and productive
culture. Sadly, given the process obsession of too many HR staff and the lack of interest from a
lot of marketing people to venture into people-issues, this tends to be a brand in name rather than
a brand by nature. Great potential – but, given the very low satisfaction rates across corporate
cultures globally, a lot more work is needed to realize the full potential of this idea.

[30]
 Building a Brand
If your business does not yet have a consistent brand, or you don’t like what your brand currently
stands for, it’s time to rebrand. Here are some steps to take to shape public perception for the
better:

• Identify what your customers love most about your business. What makes yours stand out?
What are your strengths?
• Create a brand message that conveys what your business aims to do for its customers what
you’re best at. Geico promises to save you 15% in 15 minutes. That’s its brand promise.
Marriott promises quiet luxury. What are you promising your customers? And are you
delivering?
• Make sure your visual elements match your message, and your brand. If you’re promising
innovation, don’t use greys and boring images.
• Develop standards for employee dress and behavior that support your brand promise. Make
sure they understand what your brand is and can support it.
• Apply your visuals across every marketing tool you use, from advertising to signage to store
displays to mailings to shopping bags.
Branding is a complex process, mainly because its success or failure is determined by your
customers’ reactions to the act of doing business with you.

Why branding is Important

In 1975, marketers at PepsiCo started a campaign that would become a legend in the world of
advertising, and would fire the first shot in the Cola Wars. The experiment was simple and
effective: booths appeared in malls and supermarkets, sports arenas and state fairs; participants
drank two sips of cola from unmarked cups and were asked which beverage they liked better.
Overwhelmingly, the choice was clear: consumers favored Pepsi. In almost every venue, in
almost every demographic, Pepsi was the winner.

But there arose the paradox: Coca-Cola was destroying Pepsi in market share. Even now, forty
years later, Coke controls the largest piece of the carbonated beverage market share seventeen
percent. Diet Coke comes in second place at nine percent. And Pepsi the clear taste favorite
languishes in third place at eight percent

Now, there have been some attempts to explain the disparity. In his 2005 book Blink, Malcolm
Gladwell suggested that the reason is due to the small amounts: that, when only drinking a sip,
people prefer a sweeter drink which Pepsi is. But studies haven't always proven that to be true,
nor has it been studied nearly as much as competing taste tests.

So what explains it? Well, a research professor at the Baylor College of Medicine decided to
really put the claims to the test—to figure out, physiologically, why consumers made that choice.

[31]
He put test subjects into an fMRI, a machine that tests brain activity by watching the flow of
blood from one region to another. In the first phase of the test, he had subjects drink cola while
their brains were being scanned. Once again, Pepsi was chosen as the favorite. It was the ventral
putamen that lit up on the scan part of the brain that makes up the reward system. In essence, the
brain was saying "I like this. It makes me happy."

But in the next phase of the experiment, researchers altered a key component of the test: this
time, they told participants what they were drinking. It changed everything. No longer was the
reward system lighting up: instead, it was the cerebral cortex, the higher-level decision-making
part of the brain. When people drank, their brain wasn't evaluating flavor; it was evaluating
memories and experience. And when this higher-level cognitive part of the brain was working,
Coke soundly beat out Pepsi.

This, according to the researchers, was the effect of branding. When a consumer has previous
impressions of a product or company, it will actually change the way their brain evaluates such
straightforward decisions as "which tastes better?" Coke has a long history of standout marketing
efforts. Collectors buy up old ads and bottles dating all the way back to the 1880s. People buy
clothes depicting the famous Coca-Cola logo. There is even a Coke museum in Atlanta, where
tourists pay $16 for the chance to view exhibits about how great Coke is. And when they look to
make their purchase decisions in-store, all of that material makes for a powerful brand.

This is the strength of a good brand management strategy. Granted, Coke has more than a
century behind them, and the love of the brand has been passed down from generation to
generation. But while becoming the next Coke is daunting (at best), this does serve as a good
aspirational lesson on why branding matters.

• A brand exists only in the mind of your customers. It is the sum total of all impressions
that your customer gets from all interactions with you, your product and your company.
• Every interaction sends a message—it is your job, as brand manager, to make sure all of
those messages are pointing the right direction to support your brand strategy.
• Proper branding elevates your product to be more than just a sum of its parts. People
make purchasing decisions based on more than just product features.

Branding is absolutely critical to a business because of the overall impact it makes on your
company. Branding can change how people percept your brand, it can drive new business
and increase brand awareness.

Branding Gets Recognition

The most important reason branding is important to a business is because it is how a

company gets recognition and becomes known to the consumers. The logo is the most
important element of branding, especially where this factor is concerned, as it is essentially
the face of the company. This is why a professional logo design should be powerful and
easily memorable, making an impression on a person at first glance. Printed promotional
products are a way of getting this across.

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Branding Increases Business Value

Branding is important when trying to generate future business, and a strongly established
brand can increase a business’ value by giving the company more leverage in the industry.
This makes it a more appealing investment opportunity because of its firmly established
place in the marketplace.

Branding Generates New Customers

A good brand will have no trouble drumming up referral business. Strong branding generally
means there is a positive impression of the company amongst consumers, and they are likely
to do business with you because of the familiarity and assumed dependability of using a
name they can trust. Once a brand has been well-established, word of mouth will be the
company’s best and most effective advertising technique.

Improves Employee Pride And Satisfaction

When an employee works for a strongly branded company and truly stands behind the brand,
they will be more satisfied with their job and have a higher degree of pride in the work that
they do. Working for a brand that is reputable and help in high regard amongst the public
makes working for that company more enjoyable and fulfilling. Having a branded office,
which can often help employees feel more satisfied and have a sense of belonging to the
company, can be achieved through using promotional merchandise for your desktop.

Creates Trust Within The Marketplace

A professional appearance and well-strategised branding will help the company build trust
with consumers, potential clients and customers. People are more likely to do business with a
company that has a polished and professional portrayal. Being properly branded gives the
impression of being industry experts and makes the public feel as though they can trust your
company, the products and services it offers and the way it handles its business.

Branding Supports Advertising

Advertising is another component to branding, and advertising strategies will directly reflect
the brand and its desired portrayal. Advertising techniques such as the use of promotional
products from trusted companies such as Outstanding Branding make it easy to create a
cohesive and appealing advertising strategy that plays well into your branding goals.

[33]
FOUR CORE STEPS OF BRANDING:

Branding is a company’s way of life that has a greater purpose than being just the “visual face”
of an organization.

When practiced to its full vision, branding performs four specific core functions:

1. To differentiate your organization from those in your field

2. To show the authenticity of your product or service
3. To reinforce the values that your company places at the forefront of each action
4. To unify each department within your organization.

1. DIFFERENTIATION

Each day, there are more and more companies rising to the surface in their fields.

It’s safe to say that within your industry particularly, you’ll be going up against competitors both
big and small. The innovation of product and services is moving far too fast for businesses to
solely rely on out-innovating the competition to gain market share and momentum.

With this being said, it’s important to stand out in the sea of other organizations in your niche
with the power of your brand.

“I believe with every part of my being that brand is going to be the last great currency in
marketing,” said Tiffany Sauder from Element Three.

Preach it Tiffany. We agree 100-percent.

Here are some questions to evaluate as you work on leveraging your brand to stand out:

• Who are you trying to reach?

• What is it that makes you unique from the people who have the same ideal audience?
• Why should someone buy your product or use your service?

Hone in on what distinguishes you from everyone else. Leverage your unique story to build
something unique—from name to slogan to visual identity to culture to store front to website.

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2. AUTHENTICITY

You have a past. Whether that history is good or bad, it brought you to where you are today.
Your failures and successes are all a part of what makes you unique so it’s important to share
them with your audience in a way that makes sense.

That’s just part one though. Your storytelling should be authentic to the bone. Nothing should be
half felt. Nothing should be said just because it’s trending. It must be real. If the story isn’t real
then you’d best not share it.

We live in a world where the end-user is better than ever at sniffing out fake people and brands.
If a brand starts at its core not from a place of authenticity, everything else the brand does will be
effected.It’s important to attribute your success with where you’ve been, how you want to make
a difference and why you believe strongly in your product or service.

AN EXAMPLE
A good example of a company that knows how to share their story would be a brand that sells
acne clearing ointment. If the founder struggled with acne as a teenager, telling that story is
authentic and compelling to the audience.

This shows the target audience that they have a drive to make things better for others who are in
the same situation that they were faced with in their adolescence. It shows passion and
understanding—two things that are qualities often underrated.

Be authentic by staying true to who you are. Don’t try to be something you are not. Many
companies run into issues when they desperately try to reach everyone when they should be
placing their efforts in the direction of their target audience.

When this reach is done incorrectly, it wastes both time and money. In the end it ends up making
an organization look desperate and unorganized.

That authenticity oozes out through every message, blog and marketing piece. Check out this
video and you’ll see what I mean:

[35]
3. VALUE SETTING AND CENTERING

Branding is a way of life that uncovers and formalizes the core values of an organization. The
storytelling step is one of the best ways to bring a companies mission to the forefront, but first
you have to set your values.

Again, the common misconception is that branding is all about visual identity and some witty
slogans. As you’ve already seen, it reaches far beyond that. The branding process should uncover
the values that an organization truly believes in. Once it does this, it’s up to the power of
branding to weave that into the story in a compelling way. Also at this time, an organization
should center itself on these values as an operating procedure.

AN EXAMPLE
For example, an earth-friendly company would have a moral obligation to make sure their
products are produced responsibly. This organization would center their brand on the values that
they hold dear.

If they believe in being good stewards of the earth, then they would support causes and engage in
practices that are of most importance to their cause. Branding acts as a framework that guides an
organization in the right direction.

4. UNIFICATION

Each department in your organization should know it’s role in the branding process.

Everyone should be on the same page as far as the general rules that go into making everything
work. Branding, as stated earlier, is a way of life. It’s not meant to be dealt with in one
department. Simple day to day tasks are all part of a companies brand.

A brand isn’t a vertical department. It’s a horizontal force that should span across all
departments, actions and practices.

[36]
Benefits Of Branding :

There are endless benefits of building and maintaining a strong brand. Here are five of the major
benefits you can expect to see when you have a strong brand:

1. Customer recognition. Having a strong brand works to build customer recognition. This
means when a customer is shopping for a particular product or considering a company to
perform a service, they recognize your company in the running. Consumers are far more
likely to choose a brand that they recognize over something unfamiliar, even if they don’t
know a great deal about your company at the time.

2. Competitive edge in market. Your brand is what differentiates you in the marketplace.
When customers recognize and back your brand, it helps lend a competitive edge to your
company. The more recognition you receive and the more you build your brand, the more
you will find that your brand elevates and is competitive with other well-known brands.

3. Easy introduction of new products. When you already have a strong brand and loyal
customers, it is often easier and less expensive to introduce new products or test them out
before you further invest in them. If you have a loyal brand following, your customers
will often be interested in your new products and even anticipate them being released.

4. Customer loyalty and shared values. The recognition and elevation that a strong brand
builds upon all lend to greater customer loyalty. Customers are attracted to brands that
they share values with. When you build a strong brand, you need to convey these values
to build an emotional connection with customers. Brand loyalty often lasts a lifetime and
even transfers to future generations.

5. Enhanced credibility and ease of purchase. Having a strong, well-known brand enhances
your credibility with customers, your industry, and the marketplace as a whole. As you
build your credibility, you also build recognition, loyalty, and competitiveness.
Everything goes hand-in-hand, and you’ll find that your credibility has a direct
connection to customers ease of purchase. We want to buy from companies we like,
know, and trust. If you’re brand is credible, you’re far more likely to get the sale.

What is Brand Strategy?

To understand brand strategy, one must first understand branding.

In simple terms, branding is the process of quantifying the value and authenticity of an
organization, product, or service. It is a clear set of characteristics, benefits, and attributes that
define a particular brand. Many people are often confused about branding and marketing.

[37]
 Why You Need A Brand Strategy

We live in a world that is driven by perception and brands represent customers’ opinion of a
company’s credibility, products, reputation and customer experience. A brand strategy is
essential because it provides clarity about the competitive landscape, market position and
customer expectations. This information is critical to develop effective marketing strategies and
to fine-tune marketing messages to maximize your competitiveness and build strong brands.
Branding significantly enhances the brand’s market performance and profitability by improving
name recognition, building credibility and trust, increasing advertising effectiveness and
inspiring employees.

How to Build a Brand

Building your own brand essentially boils down to 7 steps:

1. Research your target audience and your competitors.

2. Pick your focus and personality.
3. Choose your business name.
4. Write your slogan.
5. Choose the look of your brand (colors and font).
6. Design your logo.
7. Apply your branding across your business and evolve it as you grow.

The Difference Between Marketing and Branding

Branding should both precede and underlie any marketing effort. Branding is not push, but pull.
Branding is the expression of the essential truth or value of an organization, product, or service.
It is communication of characteristics, values, and attributes that clarify what this particular
brand is and is not.

A brand will help encourage someone to buy a product, and it directly supports whatever sales or
marketing activities are in play, but the brand does not explicitly say “buy me Instead, it says
This is what I am. This is why I exist. If you agree, if you like me, you can buy me, support me,
and recommend me to you friends.”

[38]
 Branding is strategic. Marketing is tactical.

Marketing may contribute to a brand, but the brand is bigger than any particular marketing effort.
The brand is what remains after the marketing has swept through the room. It’s what sticks in
your mind associated with a product, service, or organization—whether or not, at that particular
moment, you bought or did not buy.

The brand is ultimately what determines if you will become a loyal customer or not. The
marketing may convince you to buy a particular Toyota, and maybe it’s the first foreign car you
ever owned, but it is the brand that will determine if you will only buy Toyotas for the rest of
your life.

The brand is built from many things. Very important among these things is the lived experience
of the brand. Did that car deliver on its brand promise of reliability? Did the maker continue to
uphold the quality standards that made them what they are? Did the sales guy or the service
center mechanic know what they were talking about?

Marketing unearths and activates buyers. Branding makes loyal customers, advocates,
even evangelists, out of those who buy.

This works the same way for all types of businesses and organizations. All organizations must
sell (including nonprofits). How they sell may differ, and everyone in an organization is, with
their every action, either constructing or deconstructing the brand. Every thought, every action,
every policy, every ad, every marketing promotion has the effect of either inspiring or deterring
brand loyalty in whomever is exposed to it. All of this affects sales.

Back to our financial expert. Is marketing a cost center? Poorly researched and executed
marketing activities can certainly be a cost center, but well-researched and well-executed
marketing is an investment that pays for itself in sales and brand reinforcement.

Is branding a cost center? On the surface, yes, but the return is loyalty. The return is salespeople
whose jobs are easier and more effective, employees who stay longer and work harder,
customers who become ambassadors and advocates for the organization.

[39]
Branding is as vital to the success of a business or nonprofit as having financial coherence,
having a vision for the future, or having quality employees.

It is the essential foundation for a successful operation. So yes, it’s a cost center, like good
employees, financial experts, and business or organizational innovators are. They are cost
centers, but what is REALLY costly is not to have them, or to have substandard ones.

Brand is not branding

The difference between brand and branding is that one is a marketing tool and the other is an
action.

Perhaps the biggest mixerupper I hear in business is the use of brand and branding as
interchangeable words. Some people also call advertising branding (it’s not even close).
Branding is about defining, while advertising is about promoting.

The fact that many graphic designers don’t know what branding is or how to accurately describe
it, makes matters worse, particularly because businesspeople expect them to know. Some
designers use brand and branding interchangeably, reinforcing confusion instead of providing
clarity.

A brand is a thing (noun). Branding is an action (verb). This is more than just persnickety
semantics—it’s about fundamental understanding of a core marketing tool.

[40]
 DATA ANALYSIS & INTERPRETATION

Q1.Which brand are you using?

INFERENCE

This depiction shows 55 respondents to the survey conducted and the number of
respondents who use specific brands.

[41]
Q2. Have you purchased any consumer durable during Exhibitions?

Yes
No

INFERENCES

1. 65 % of Customers have not purchased any consumer durable from exhibitions.

Only 35 % people have purchased.

2. 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.

3. Consumer also wants to compare to the different brand which are available in the
exhibition.

4. So exhibitions are more useful to increase brand awareness.

5. People are less interested to purchase product from exhibitions.

[42]
Q3. While purchasing consumer durable which parameter influences you?
Price
Product feature
Brand
Service
Durability

INFERENCES

1. 30% of customer gives importance to price. So it shows that Indian consumers are
very price sensitive. They give more importance to price over the brand.

2. 26% give importance to brand. So price and Brand matter a lots for the costumers.
And they are also want best brand in best price.

3. 19% give importance to product feature Service 16% and durability 9%. Service
is also a big factor for the customer they are less interested in the durability.

[43]
Q4. From where you prefer buying consumer durables.

Exhibition
Co.shoppee
Showroom

INFERENCES

1. A majority of customers prefer to buy from showrooms. Very less proposition of

customers buys from Exhibitions.

2. 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.

3. People are less interested to buy from the exhibition they only visit the exhibition
for price quotation of the product and the comparison of the product.

[44]
Q 5. You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons

▪
Attractive Price

▪
Service

▪
Demonstrations

▪
Offers

INFERENCES

1. Customers buy from showrooms because of the service and convenience. These
are two main factors.

2. Customers are preferred to buy from the showroom because of they think that
these convenient store may provide good after sell service.

3. Customer also thinks that there is more chance to bargain and they can get more
discounts in these showrooms.

4. Price also a factor that attract the customer in these showrooms.

[45]
Q6. Which consumer durable you have and of which brand?

CTV

LCD
PLASMA
REF
WM
MW
AC

INFERENCE

In CTV section maximum customers have Onida, in LCD Sony is the leader,
In plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader.
In WM there are companies and in AC also.

[46]
Q7. How frequently you change your consumer durables?

1-3 years

3-5 years
5-10 years
More than 10 years

INFERENCES

1. Customers prefer to change consumer durables within 5-10 years. In India people
do not change consumer durable frequently.

2. 23% customers do not change their consumer durable within 10 year.

3. It represent that Indian consumer do not prefer to change their consumer durable
frequently.

[47]
Q8. Complaint handling of the brand.

18

16

14

Excellent
12

very
good
10
Good
8
Fair

6
Poor

0
LG SAMSUNG

INFERENCE

By the above bar diagram it is clear that the complaint handling of both the brand is quite
satisfactory. Most of the consumers using Samsung consider that the brand‟s complaint
handling is excellent & very good. On the other hand LG consumers are also quite
satisfied with the service provided.

[48]
Q9. Did the consumers find in product what they were looking for?

12

10

8
LG
6 SAMSUNG

0
1 2 3 4 5
EXACTLY ALL

INFERENCE

Most of the consumers of both the brand have responded positively but consumers of
Samsung are more satisfied with the features of their white goods product they are using.

Few consumers of LG are not satisfied with features of the product they are using.

[49]
Q10. Number of white goods product consumers are using.

SAMSUNG

One
Two
3 or more

LG

0 5 10 15 20

INFERENCE

From the above graph we can say that most of the respondents were using on one to two
products of Samsung but these is still LG which is used by the consumer and they are two
to three white goods product of LG.

So on an average most of the consumers are having LG products.

[50]
Q11. Perception of consumers regarding „white goods products of this brand as
value for money‟.

12

10

6 LG
SAMSUNG
4

0
1 Exactly 2 3 4 5 Not at
all

INFERENCE

From the above graph, we can say that most of the LG white goods , consumers are of
the perception that the product is worth of the money. But it is not in the case of
Samsung.

So LG is having the more positive response then the Samsung.

[51]
Q12. Consumers‟ experience with the brand.

12

10

6 SAMSUNG
LG

0
Excellent Very Good Fair Poor
good

INFERENCE

If we see the Bar diagram it is evident that the overall experience of LG and Samsung‟s
consumers satisfaction is average or more than average but Samsungs consumers
experience with the product is excellent while the none LG consumer has responded as
excellence experience.

[52]
 FINDINGS

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.

[53]
8. LG 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.

[54]
 RECOMMENDATIONS AND SUGGESTIONS

1. Exhibitions do not help to generate so much sells but they should be conducted
regularly. This helps in generating awareness regarding the product in customers
which ultimately helps in sales.

2. Also it is helps in advertising for the new products. Like in this exhibition new
LCD SCARLET was advertised. Company should always focus on service.

3. Display share should be increased where there is less than 50% as LG also
believes that “JO DIKHTA HAI WO BIKTA HAI”

4. Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the company‟s
profit.

5. Company should concentrate more on its major drivers LCD, IT, and GSM.
Branding and promotions should be done effectively as it creates a long lasting
image in the mind of customers.

6. Company should also cater to the needs of sub dealers as some of the sub dealers
have potential of high sales.

7. Company should understand the special needs of the people at their special
occasions, not by giving offers to new customers but also wishes to the old
customers .

8. After the sale of the product ,follow up about the performance of the product is
important .
[55]
9. Immediate and quick response is very essential for the improvement in this
competitive world.

10. Increase of warranty period for electronic goods must be done.

[56]
 CONCLUSION

Before conclusion, it would be prudent to share the key learning derived from this
project. This has been enumerated below as follows: -
➢
The learning specific to this project has been that it provided us with a real
exposure to the market of white goods and its consumers level of satisfaction.

➢
People have different personalities and different attitudes and therefore good
communication is required to approach the consumers.

➢
Gaining in-depth knowledge about the consumer‟s behaviour and white
goods business in India as-well-as consumer loyalty.

➢
LG Electronics Digital Appliances Company is a global leader in the
home appliance industry.

➢
Dedicated to enhancing consumer lifestyles through its stylish and advanced
products by offering creative solutions for consumers‟ everyday lives.

[57]
QUESTIONNAIRE FOR THE STUDY OF CONSUMER
SATISFACTION IN WHITE GOODS
Name of the researcher: ___________________________

Brands concerned: LG

1. Are you using any electronic appliances?

Yes No

2. Which brand are you using?

LG Samsung other,

Please specify: -----------------------------------

3. Why do you prefer LG ?

Durability Reasonable price better service

Quality other
4. Have you purchased any consumer durable during exhibitions?
Yes NO

5. While purchasing consumer durable which parameters influence you?

Price Product feature Brand

Services Durability

[58]
5. From where do you prefer buying consumer durables?

Exhibitions company shop showroom

6. You preferred to buy form the same as you have mentioned in Q.3 Because of
following reason

Attractive price services demonstration

Offers convenience

8. Which consumer durable you have and of which brand?

CTV LCD PLASMA REF

WM MW AC

10. How frequently you change your consumer durables?

1-3 years 3-5 years

5-10 ears More than 10 years

[59]
10. How do you see the compliant handling of the brand? Excellent

Excellent very good good average poor

1 2 3 4 5

11. Did you find what you were looking for?

Exactly Not at all

1 2 3 4 5

12. Why have you chosen this brand?

Price packaging availability others

13. Since when have you been using this brand?

Last 5 years Last 3 years Last 2 years Last 1 year Last 6 months

Or above or above or above or above or above

1 2 3 4 5

[60]
14. How many white goods product of this brand you are using?

Three or more Two One

15. Do you intend to buy a new white goods product of this brand within next six
months?

Definitely Probably Undecided Probably will Definitely will

Will buy will buy not buy not buy

1 2 3 4 5

16. Do you think the products of this brand are value for money?

Exactly Not at all

1 2 3 4 5

17. How is your experience with this brand?

Excellent Very good Good Fair Poor

1 2 3
4 5

[61]
 ANNEXURE

1) Which consumer durable product you sell?

□C-TV

□Refrigerator

□Washing Machine

□DVD

□Microwave

□All of the above

2. How many no. of company‟s product you sell?

□ONE_______________________________________________

□TWO______________________________________________

□THREE____________________________________________

□FOUR______________________________________________

□FIVE_______________________________________________

□SIX________________________________________________

[62]
3) Which is major brand of Colour-Television you sell from your shop?

□LG

□ Videocon

□ Onida

□ Sansui

□Any other, please spacify------------------------

4) What is the important parameter for more sales of Colour-Television

brand?

□Price

□ Quality

□ Services

□ Advertisement

□ Schemes

□All of the above

[63]
5) Which is major brand of Refrigerator you sell from your shop?

□ LG

□ Godrej

□ Whirlpool

□ Ken star

□ SAMSUNG

□ Videocon

□ Kelvinator

6) What is the important parameter for more sales of Refrigerator brand?

□ Price

□ Quality

□ Services

□ Advertisement

□Schemes

7) What is the important parameter for more sales of Washing Machine

brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes
[64]
8) What is the important parameter for more sales of DVD brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes

9) What is the important parameter for more sales of Microwave

brand? □Price

□ Quality

□ Services

□ Advertisement

□ Schemes

10) Which product you give high profit margin?

□ Refrigerator

□ Air conditioner

□Television

[65]
11) What are your suggestions for LG to increase the sales?

_____________________________________________________________

_____________________________________________________________

[66]