Professional Documents
Culture Documents
Offiwiz File
Offiwiz File
Chapter I : Introduction…………………………………04-13
Introduction
Scope of the study
Importance of the study
Objective of the study
Chapter II : About the company…………………………14-44
Brief history of LG
Brief history of Samsung
Chapter III : Research Methodology…………………….45-65
Research Design
Sampling
Data collection methods
Limitation
Chapter IV : Data Analysis & Interpretation…………...66-81
Suggestion
Conclusion
Bibliography……………………………………………………88-89
Annexure…………………………………………………........90-102
1
ABSTRACT
Korean brands, LG and Samsung, have cornered nearly half of the Rs 10,000
crore (Rs 100 billion) Indian home appliances market for the first time in the
later half of this year. While the LG leads the market with around 35 per
cent of the overall market, Samsung improved its position from around 13 to
around 16 per cent now.
In fact, except in the refrigerator segment, the two now have combined
turnovers greater than the rest of the brands in all the major segments of the
market. In the refrigerator market, which accounts for the biggest chunk of
the market at around Rs 4,000 crore (Rs 40 billion) this year, Samsung
emerged as the biggest gainer since the close of last financial year. Since
April, it has not only overtaken Godrej to become the number three after LG
and Whirlpool, but has also seen a steady increase in its market share since
then from around 12.5 percent of the total value to around 17 per cent now.
In the washing machine segment too, estimated to be worth around Rs 1,500
crore (Rs 15 billion) this year, the company was able to increase its presence
from 13.3 per cent share to 19.2 per cent share while its share in the
microwave market too improved from 18.5 to 24.6 per cent.
2
The company, which had a 15 per cent share in the retail-consumer AC
market, was also able to improved its position by around 1.5 per cent over
the last seven months.
However LG continued to be the dominant player in the market. Leading in
all the four product segments, it has around 50 per cent more market share
than its closest competitor in each segment. By value, the company has
around 30 per cent of the refrigerator market, 34 per cent of the washing
machine segment, 40 per cent in the home AC segment and 38.7 per cent of
the microwave market.
3
4
INTRODUCTION
5
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.
Major appliances are differentiated from small appliances because they are
large, difficult to move, and generally fixed in place to some extent. They
6
are often considered fixtures and part of real estate and as such they are
often supplied to tenants as part of otherwise unfurnished rental properties.
Another frequent characteristic of major appliances is that they may have
substantial electricity requirements that necessitate special electrical wiring
to supply higher current than standard electrical outlets can deliver. This
limits where they can be placed in a home.
Major appliances have become more technically complex from the control
side recently with the introduction of the various Energy Labelling rules
across the world. This has meant that the appliances have been forced to
become more and more efficient leading to more accurate controllers in
order to meet the regulations.
7
. SCOPE OF THE STUDY
The electrical goods are those goods which already exist in the market.
Because without it, it is not possible that anybody can survive with his/her
life. We define scope of Mathura region. Scope is a very broad term. The
customers purchase the electrical appliances through market, exhibition, and
showroom for fulfillment of needs.
This report is prepared in Mathura region with the help of owner and
customer. It defines the marketing strategy (product, price, place, promotion)
of LG with Samsung.
8
LIMITATIONS OF THE STUDY:
Subjective nature of the study may affect its interpretation by different
individuals.
9
IMPORTANCE OF THE STUDY
To know the position of LG and Samsung in the market and to gauge the
impact of market strategy vis-à-vis consumer durables in Mathura region.
Till the early nineties in the area of marketing whole effort was focused on
fine – tuning the four „P‟s: product, price, place and promotion. It was only
in the early nineties that a few marketers began realizing that companies
basically existed to serve consumers - and that the consumer did not exist
merely to buy a company's products.
ISSUES TO BE ADDRESSED:
10
RESEARCH PROJECT AIMS:
11
OBJECTIVE OF STUDY
The research will provide an invaluable opportunity to conduct a research
and practicing the theoretical knowledge while pursuing BBA and
examining them against the ground realities.
PROFESSIONAL OBJECTIVE:
12
PERSONAL OBJECTIVE:
13
\
14
CONSUMER DURABLE HISTORY
The Consumer Durables industry consists of durable goods and appliances
for domestic use such as televisions, refrigerators, air conditioners and
washing machines. Instruments such as cell phones and kitchen appliances
like microwave ovens were also included in this category. The sector has
been witnessing significant growth in recent years, helped by several drivers
such as the emerging retail boom, real estate and housing demand, greater
disposable income and an overall increase in the level of affluence of a
significant section of the population. The industry is represented by major
international and local players such as BPL, Videocon, Voltas, Blue Star,
MIRC Electronics, Titan, Whirlpool, etc.
The consumer durables industry can be broadly classified into two segments:
Consumer Electronics and Consumer Appliances. Consumer Appliances can
be further categorized into Brown Goods and White Goods. The key product
lines under each segment were as follows.
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the
consumer durables market, accounting for no less than 90% of the market.
Then, after the liberalization, foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players
control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is
growing very fast because of rise in living standards, easy access to
consumer finance, and wide range of choice, as many foreign players are
entering in the market
15
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for
consumer durables has increased significantly. Products like washing
machines, air conditioners, microwave ovens, color televisions (CTVs) are
no longer considered luxury items. However, there are still very few players
in categories like vacuum cleaners, and dishwashers
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,
16
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
17
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.
18
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.
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.
19
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.
20
CONSUMER DURABLE PRODUCTS
REFRIGERATOR
WASHING MACHINE
21
LCD TV
22
SWOT ANALYSIS: CONSUMER DURABLE HISTORY
STRENGTH WEAKNESS
o “Accessory to Necessary” Air- o Supply continues to outstrip
conditioners are no longer perceived Demand. Demand Cyclical and
to be a item of luxury. seasonal.
o Advancement of technology which o Volatile performance of the
OPPORTUNITY THREAT
o Diversification. Developing new o Dozen companies operating in the
products for new markets. white goods segment. Prices would
continue to remain depressed and
margins will be under pressure.
o Easy availability of finance has
23
BRIEF HISTORY OF LG
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
24
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.
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',
25
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.
26
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.
27
28
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.
29
QUALITY INNOVATION
The policy of quality assurance is to provide customers with utmost
satisfaction by supplying zero defects.
30
CODE OF CONDUCT LG
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
31
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.
32
LG Electronics India is the fastest growing company in the consumer
electronics, home appliances, and computer peripherals industry today.
33
year. India churns out six (6) per cent of LG Electronics global revenues of
$42 billion. The Indian branch of LG exports to 40 countries.
34
BRIEF HISTORY OF SAMSUNG
INDIA
Samsung India is the hub for Samsung‟s South West Asia Regional
operations. The South West Asia Regional Headquarters looks after the
Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan
besides India. Samsung India which commenced its operations in India in
December 1995, today enjoys a sales turnover of over US$ 1Bn in just a
decade of operations in the country.
35
employs over 1600 employees, with around 18% of its employees working
in Research & Development.
MANUFACTURING:
36
PRODUCT
CAPACITY DETAILS
CTV 1.5 million Curved & Flat TVs
37
VISION OF SAMSUNG INDIA PVT. LTD.
There are two requirements for being "Digital-ε Company", and the first is
clearly about being "Digital" producing not just digital products, but
products that inspire digital integration across our entire company. The
second part of being a "ε" is to use ε- Processes connecting R&D,
production, and marketing to customers, partners, and the market-disciplined
approach is the way we bring value to every part of our supply chain,
including products data and customer relationship through Enterprise
Resource Planning (ERP).
AWARDS
Manufacturing Value Innovation – Gold Award for Productivity,
Cost, Speed at the Visual Display Plant – November 2004.
Management Innovation Award – December 2004
Samsung Quality Award – November 2004 for Colour Television &
Colour Monitor Plants
Samsung Innovation Award – November 2004 for Refrigerator Plants.
38
LG V/S SAMSUNG
COMMUNICATION STRATEGY OF LG
For Television market they are using child, because child plays
the role of influencer in purchase of TV sets.
39
LG home appliances communication message is totally based on
health message like “Golden eye technology” and “Intello”.
They want to position the brand as being young, vibrant and
premium. So they picked Abhishek as he portrays Indian values.
COMMUNICATIONSTRATEGY OF
SAMSUNG
40
- They positioned themselves as a brand which offers freshness
and technology strong.
- Samsung in India signed seven cricket celebrities to cash the
image and popularity of cricket.
41
OTHER MAJOR PLAYERS
42
Onida was started by G.L. Mirchandani and Vijay Mansukhani in 1981 in
ONIDA TODAY
43
100000 marks in CTV exports to Russia in a span of just 2 years and plans
to grow in these markets at a much faster pace.
Apart from Television Exports to Russia, Onida also exports DVD Players
and High end LCD Televisions.
Ranked 34th most trusted brands in India according to The Brand Trust
Report published by Trust Research Advisory.
44
45
RESEARCH METHODOLOGY
HYPOTHESIS:
This project has been structured in the following manner. This is followed
by scope of research and sample design, which encompasses the following:
RESEARCH METHODOLOGY
46
RESEARCH DESIGN
Research design specifies methods and procedures for study. In this study
the company was interested to know the demand of different consumer
durable product, about competitors, and potential for LG and SAMSUNG
procedures to be used for the study among retailers/dealer and. However it
was exclusively personal interview.
47
TYPES OF RESEARCH
DESCRIPTIVE RESEARCH
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know
the characteristic of certain group such as age, sex, education level,
occupation or income. A descriptive study may be necessary in cases when a
researcher is interested in knowing the proportion of people in a given
population who have in particular manner, making projections of a certain
thing, or determining the relationship between two or more variables. The
objective of such study is to answer the “who, what, when, where and how”
of the subject under investigation. There is a general feeling that descriptive
studies are factual and very simple. This is not necessarily true. Descriptive
study can be complex, demanding a high degree of scientific skill on part of
the researcher.
Questions and deciding the types of data to be collected and the procedure
to be used in this purpose. Descriptive studies can be divided into two broad
categories: Cross Sectional and Longitudinal Sectional. A cross sectional
study is concerned with a sample of elements from a given population. Thus,
it may deal with household, dealers, retail stores, or other entities. Data on a
number of characteristics from sample elements are collected and analyzed.
Cross sectional studies are of two types: Field study and Survey. Although
48
the distinction between them is not clear- cut, there are some practical
differences, which need different techniques and skills. Field studies are ex-
post-factor scientific inquiries that aim at finding the relations and
interrelations among variables in a real setting. Such studies are done in live
situations like communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been taken
by me. A major strength of survey research is its wide scope. Detail
information can be obtained from a sample of large population .Besides; it is
economical as more information can be collected per unit of cost. In
addition, it is obvious that a sample survey needs less time than a census
inquiry. Descriptive research includes survey and fact finding enquiries of
different kinds of the major purpose. Descriptive research is description of
the state of affairs, as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables; he can only
report what has happened or what is happening. The methods of research
utilized in descriptive research are survey methods of all kinds including
comparative and co relational methods. The reason for using such needs to
be flexible in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed ever now and then.
49
DATA COLLECTION METHOD
After the research problem, we have to identify and select which type of data
is to research. At this stage; we have to organize a field survey to collect the
data. One of the important tools for conducting market research is the
availability of necessary and useful data.
This report was prepared after collecting data from the retailers/ dealers and
past data was arranged from the various studies conducted in last few years
PRIMARY DATA:
These data were collected by personal interview with retailers/ dealer. For
this purpose questionnaires were prepared in such that all necessary data
would be collected.
: For primary data collection, we have to plan the following four important
aspects.
Sampling
Research Instrument
50
SECONDARY DATA:
Information regarding the project, secondary data was also required. These
data were collected from various past studies and other sources of the
company.
Questionnaires:
This is the most popular tool for the data collection. A questionnaire
contains question that the researcher wishes to ask his respondents
which is always guided by the objective of the survey.
Pie chart:
This is very useful diagram to represent data , which are divided into a
number of categories. This diagram consists of a circle of divided into
a number of sectors, which are proportional to the values they
represent. The total value is represented by the full create. The
diagram bar chart can make comparison among the various
components or between a part and a whole of data.
51
Bar chart:
This is another way of representing data graphically. As the name
implies, it consist of a number of whispered bar, which originate from
a common base line and are equal widths. The lengths of the bards are
proportional to the value they represent.
Preparation of report:
The report was based on the analysis and presented with the findings
and suggestions. The sample of the questionnaires is attached with the
report itself.
52
SAMPLING METHODOLOGY
SAMPLE UNIT
Professionals, Business man,
Employees, House wife,
Working women, Students
SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
10 Dealers
RESEARCH TOOL
Questionnaires
RESEARCH AREA
Mathura District-
53
Mathura city
Holi Gate
Krishna Gate
Dampier Nagar
54
SCOPE OF RESEARCH AND SAMPLE DESIGN
1. SCOPE OF RESEARCH
The Study is restricted to the Mathura region. Target region is one of the
industrialized locations and densely populated with middle class family.
The Study is focused to the owner‟s of the white goods products of LG and
Samsung.
2. SAMPLE DESIGN
Universe: Mathura.
Population: consumer of white goods movers across Mathura in Uttar
Pradesh.
Sample Size: A sample size of 40 has been taken for this study. 20
consumers for LG and 20 consumers for Samsung.
The key determinants of the sampling universe are:
o Consumers feedback
o Self Generated responses
o Existing and well informed Universe
55
3. METHOD OF HYPOTHESIS TESTING
My sample size was small (n < 30), independent and equally populated
mean. For the hypothesis testing t-test was used as statistical tool. A t-test
can be used for comparison of two population means in order to establish
whether there is any significant difference between two population means,
provided the following conditions are met:
POTENTIAL PROBLEMS
56
LIMITATIONS
Every study has certain limitations. In this study, also there were certain
limitations, which could not able to solve.
1. The research was conducted in a very small area.
2. This research work period witness the biggest ups and downs in
product sale of different brands, which affected the perception of the
customer. This was biggest drawback of my study.
3. Time factor was also important for me. I had only 25 days to complete
my research, for which a full-fledged report was insufficient for me.
57
DESCRIPTIVE WORK OF SUBTOPIC
SAMPLING PROCEDURE
58
Sample size taken from each population is small (n < 30), but sample
do not have to be equal in size.
First step was the literature review about the research topic and
then the preliminary proposal was prepared. For all this
internet, news paper was explored.
Then, all data gathered was sorted, compiled and arranged for
analysis.
59
CONSUMER ELECTRONICS
OVERVIEW
The consumer electronics market is valued at $25 billion in 2006 and is
growing at a rate of 20% per annum.
PRODUCT COVERED
The consumer electronics sector can be segmented into VCD/DVD, home
theatre, music players, and color televisions (CTVs), MP3, digital cameras,
laptop etc. and white goods, such as, dish washers, air conditioners, water
heaters, washing machines, refrigerators, etc.
MAJOR PLAYERS
Before economic liberalization, there were only a few players like
Kelvinator, Godrej, Allwyn, and Voltas in the consumer durable market.
90% of the market was captured by these companies alone.
Then, after the liberalization, foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo and Aiwa came into the picture. And today, these
players control major share of the consumer durable market.
60
Consumer electronics market is projected as shown in the graph
Growth
Refrigerator 5-10%
61
GROWTH DRIVERS
Electronic market is growing very fast because rising living standards of
individuals, easy access to consumer finance, growing consumerism,
increase in disposable income, and large variety of choice as many foreign
players are entering in the market. But, sometimes due to the presence of
large number of players in the consumer electronics market, over-supply
situation arises.
62
LEADERSHIP
LG LEADERSHIP
Source: ORG-GFK
63
SAMSUNG PROFILE 2010
Wherever you are... in the hustle of the streets or the comfort of the
home...Samsung is part of the fabric of your life. As a global leader we are at
the forefront of change, anticipating today what our customers around the
world will want tomorrow.
64
FINANCIAL HIGHLIGHTS
AMOUNTS IN BILLIONS WON DOLLARS EUROS
65
66
DATA ANALYSIS & INTERPRETATION
INFERENCE
67
Q2. Have you purchased any consumer durable during Exhibitions?
Yes
No
INFERENCES
68
Q3. While purchasing consumer durable which parameter influences
you?
Price
Product feature
Brand
Service
Durability
INFERENCES
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.
69
Q4. From where you prefer buying consumer durables.
Exhibitions
Co.shoppee
Showroom
INFERENCES
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.
70
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
3. Customer also thinks that there is more chance to bargain and they can
get more discounts in these showrooms.
71
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.
72
Q7. How frequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
INFERENCES
73
Q8. Complaint handling of the brand.
18
16
14
12 Excellent
10 very good
8 Good
6 Fair
4 Poor
2
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.
74
Q9. Did the consumers find in product what they were looking for?
12
10
6
LG
4 SAMSUNG
1 2 3 4 5 NOT AT
EXECTLY 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.
75
Q10. Consumers using the brand since.
9
8
7
6
5
LG
4 SAMSUNG
3
2
1
0
5 Yr.or 3 Yr. or 2 yr. or 1 Yr. or 6 months
above above above above or above
INFERENCE
Customer uses LG and SAMSUNG brands last some time. After using
given his preference.
76
Q11. 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.
77
Q12. Consumers‟ buying intention in next six month regarding the
brands.
14
12
10
LG SAMSUNG
INFERENCE
If we see the bar diagram it is clear that there is very less consumer loyalty
in the white goods product and the consumers are supposed to analyze
every possible option and they are indecisive about their further buying. A
bunch of consumer is definitely not going to buy the Samsung and LG
products. On the other hand a substantial bunch of consumer is definitely
going to purchase the LG product.
78
Q13. Perception of consumers regarding „white goods products of this
brand as value for money‟.
12
10
6
LG
4 SAMSUNG
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.
79
Q14. Consumers‟ experience with the brand.
12
10
6
SAMSUNG
4
LG
2
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.
80
Q15. Sales of LG and SAMSUNG in Monthly basis at Mathura region.
Users LG
SAMSUNG
INFERENCE
REASON:
81
82
FINDINGS
CUSTOMER SURVEY FINDINGS
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.
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.
83
8. LG and Samsung have bottle neck competition in TV and REF.
category.
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.
84
RECOMMENDATIONS AND SUGGESTIONS
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.
85
CONCLUSION
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 & SAMSUNG 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.
86
LIMITATION
The sample size chosen for interview was small in size (10). If the
sample size would have been large, the study will be more accurate and
near to reality as the confidence limit will be more.
Another limitation was the scope of research is limited to Mathura only,
as personal interview couldn‟t be conducted in more areas due to
inconvenience.
The questionnaire prepared for interviews has limitations also; the
questionnaire can‟t cover the whole complexity of the topic. The
questionnaire covers some important points only.
87
BIBLIOGRAPHY
88
BIBLIOGRAPHY
The majority of the project has been primarily our own research, findings
and endeavor. Wherever the support of the Internet and books has been
taken, the name of sites and books used are as mentioned below: -
www.1gindia.com
www.LG.com
www.samsung.com
www.google.co.in
89
ANNEXURE
90
QUESTIONNAIRE FOR THE STUDY OF CONSUMER
SATISFACTION IN WHITE GOODS
Name of the researcher: ___________________________
Location: ------Mathura-------------------------------------------------------
Services Durability
91
6. From where do you prefer buying consumer durables?
Exhibitions company shop showroom
7. You preferred to buy form the same as you have mentioned in Q.3
Because of following reason
Attractive price services demonstration
Offers convenience
WM MW AC
1 2 3 4 5
92
11. Did you find what you were looking for?
Last 5 years Last 3 years Last 2 years Last 1 year Last 6 months
1 2 3 4 5
14. How many white goods product of this brand you are using?
15. Do you intend to buy a new white goods product of this brand within
next six months?
93
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?
4 5
94
Questionnaire
1) Study of Consumer Durable Market for SAMSUNG Electronics Ltd.
With
Name of shop:
Address:
Contact no.:
□C-TV
□Refrigerator
□Washing Machine
□DVD
□Microwave
□THREE____________________________________________
□FOUR______________________________________________
□FIVE_______________________________________________
□SIX________________________________________________
95
3) Which is major brand of Colour-Television you sell from your shop?
□SAMSUNG
□LG
□ Videocon
□ Onida
□ Sansui
□Price
□ Quality
□ Services
□ Advertisement
□ Schemes
□ Godrej
□ Whirlpool
□ Ken star
□ LG
96
□ SAMSUNG
□ Videocon
□ Kelvinator
□ Price
□ Quality
□ Services
□ Advertisement
□Schemes
□ Price
□ Quality
□ Services
□ Advertisement
□ Schemes
□ Price
□ Quality
97
□ Services
□ Advertisement
□ Schemes
brand? □Price
□ Quality
□ Services
□ Advertisement
□ Schemes
□ Refrigerator
□ Air conditioner
□Television
11) What are your suggestions for SAMSUNG to increase the sales?
_____________________________________________________________
_____________________________________________________________
98
ANNEXURE
A. Questionnaire
Name of shop:
Address:
Contact no.:
□C-TV
□Refrigerator
□Washing Machine
□DVD
□Microwave
□THREE____________________________________________
□FOUR______________________________________________
99
□FIVE_______________________________________________
□SIX________________________________________________
□SAMSUNG
□LG
□ Videocon
□ Onida
□ Sansui
□Price
□ Quality
□ Services
□ Advertisement
□ Schemes
□ Godrej
□ Whirlpool
100
□ Ken star
□ LG
□ SAMSUNG
□ Videocon
□ Kelvinator
□ Price
□ Quality
□ Services
□ Advertisement
□Schemes
□ Price
□ Quality
□ Services
□ Advertisement
□ Schemes
101
□ Price
□ Quality
□ Services
□ Advertisement
□ Schemes
brand? □Price
□ Quality
□ Services
□ Advertisement
□ Schemes
□ Refrigerator
□ Air conditioner
□Television
_____________________________________________________________
____________________________________________________________
102
103