A

DISSERTATION PROJECT REPORT ON

MARKET ANALYSIS OF LG CONSUMER DURABLES

Guided by Mr. Prakash Chandra Dash Senior Faculty (Marketing)

Submitted By Abhiram Prasad Satapathy Regd. No. 0706275046
1

Acknowledgement
It is indeed of great moment to pleasure to express my senses of per found gratitude & indebtness to all the people who have been instrumental in making my tanning a rich experience. I got the opportunity to do a challenging project in LG ELECTRONIC (INDIA) The project is the important part of our study and gives us a real practical exposure to the corporate world and it is almost impossible to do the same without the guidance of peoples in and around us. Similarly while doing the topic “Market Survey on LG consumer durables as a dissertation trainee I took many my projects in help. It gives me immense pleasure to acknowledge LG

ELECTRONICS INDIA Ltd., which has been nice enough to give me a chance to do my dissertation project providing me wonderful support through out my training period and afterward.

Abhiram Prasad Satapathy Regd. No. 0706275046

2

Prakash Chandra Dash B.I.M.I.T, Bhubaneswar

FACULTY GUIDE CERTIFICATE
This is to certify that Abhiram Prasad Satapathy, a student of Bhubaneswar Institute of Management and Information Technology, Bhubaneswar pursuing his MBA (Marketing) has worked under my guidance and supervision on his Work entitled “Market Survey on LG consumer durables”. To the best of my knowledge this is an original piece of work.

(Prakash Chandra Dash) Faculty Marketing

3

DECLARATION
I will take pleasure in declaring that the dissertation project work that is undertaken by me is an original and authentic work done by me. This dissertation project is being submitted by me for the partial fulfillment for award of Master in Business Administration from Bhubaneswar Institute of Management & Information Technology under BPUT.

Abhiram Prasad Satapathy Regd. No. 0706275046

4

will also be expanded from the existing 22 to 40 cities by next month.500 crore and market share of 26 per cent. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV. The rural market is growing faster than the urban market. is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development. although the penetration level is much lower . brand-building and other marketing initiatives. REFRIGRATOR. besides launching new platforms in information technology and related areas. includes the company’s response to customer complaint within two hours. 5 . AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG. having a turnover of Rs 9.Executive summary Indian Consumer durables market used to be dominated by few domestic players like godrej Voltas allwyn and kalvinater. for which IT infrastructure has been set up. The rising income levels double-income families and consumer awareness are the main growth drivers of the industries. LG’s innovative ‘211 campaign’ to provide quality after-sales service. The company. The campaign.The CTV segment is expected to the largest contributing segment to the overall growth the industry. Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs 500 crore in India this year in research and development. The fixing time for complaints varies from one hour to a maximum of 24 hours. SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories.

6 . Many dealers were facing the problem of after sale service because there is no follow up calls from LG. Demo calls also not done properly. 5. We also came to know while visiting the shops that there was big problem of after sale service. 3. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. Key findings:1. By calculating the display share we found that in most of store LG has 50% display share almost all categories. During this project I also took part in the exhibition of LG which held for the purpose branding and awareness of LG product.Scope of project This project gives me great exposure to the consumer durable market because it includes product knowledge and the filed job in which I have visited the store comes under the region of Pune. 6. 4. LG always insist the 50% display share of LG product because LG believes that “JO DIKHTA HAI WO BIKTA HAI”. 2. My job was during this project to see the market share and also the display share of the LG product in the store. This project helps me to know the market practically. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG.

and Aiwa came into the picture. camcorders. and dishwashers Consumer durables sector is characterized by the emergence of MNCs. the penetration level of the consumer durables is still low in India. foreign players like LG. color television (CTVs). and Voltas were the major players in the consumer durables market. Daewoo. easy access to consumer finance. air conditioners. discounts. home theatre. microwave ovens. Sony. Consumer electronic include vcd/dvd. cameras. Samsung. Consumer durables market is expected to grow at 10-15% in 2007-2008. the demand for consumer durables has increased significantly. MNC's major target is the growing middle class of India. and hold over wide distribution network. and intense competition. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market. Then. Godrej. increase in consumer awareness. color televisions (CTVs) are no longer considered luxury items. accounting for no less than 90% of the market. exchange offers. their well-acknowledged brands. However. Products like washing machines. etc 7 . It is growing very fast because of rise in living standards. easy availability of finance. music player.INTRODUCTION Before the liberalization of the Indian economy. However. there are still very few players in categories like vacuum cleaners. as many foreign players are entering in the market With the increase in income levels. these players control the major share of the consumer durables market. and wide range of choice. Today. only a few companies like Kelvinator. Allwyn. Hi-Fi. portable audio. Classification of consumer durables sector 1. The market share of MNCs in consumer durables sector is 65%. after the liberalization. Whirlpool. and introduction of new models.

The upper-middle and high-income household in urban areas are expected to grew to 38. There are lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25. refrigerators. kitchen appliances. In term of purchasing power parity (ppp). non-kitchen appliances. 2. washing machines. 3. 4. 3. 8 . heaters. Unexploited rural market.e. Mobile phones Scope 1. Clocks and watches 5. built-in appliances. who are earning us$4. 5. personal care product etc.6 million in 2000. Increase in income level. 5. air conditioners. And there are 6 million rich household in India. There are 56 million people in middle class.400-US$21. microwaves.2 million in 2007 as against 14. White goods include dishwashers. 3. India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. In India the penetration level of white goods is lower as compared to other developing countries. 2. Easy availability of finance. i.2. vacuum cleaners. Opportunity 1.increase in purchasing power of consumers. Indian consumer durable market is expected to reach $400 billion by on 2010 India has the youngest population amongst the major countries. Rapid urbanization.800 a year. 4. Tumble dryer. Moulded luggage include plastics 4.

Cheap imports from Singapore. Brands in consumer electronic sector MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS PANASONIC SHARP HITACHI SANSUI AKAI AIWA WHIRLPOOL ELECTROLUX NATIONAL ) ) ) ) ) ) ) ) ) ) ) ) KOREA CHINA HOLLAND ONIDA VIDEOCON BPL GODREJ VOLTAS IFB REGIONAL BUSH CROWN SALORA T-SERIES WESTON BELTAK OSKAR JAPAN TODAY Consumer durables sector is characterized by the emergence of MNCs. MNC's major target is the growing middle class of India. is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 9 . The company.Threats Higher import duties on row materials. exchange offers. discounts.500 crore and market share of 26 per cent. China and from other Asian countries. and intense competition. SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The market share of MNCs in consumer durables sector is 65%. having a turnover of Rs 9. MNCs offer superior technology to the LG.

140 crore on research and development. Gold Star was renamed LG Electronics. The Gold Star brand is still perceived as a discount brand. The LG Group was a merger of two Korean companies. LG Global 2. Before the corporate Name change to LG. LG Electronics controls 110 local subsidiaries in the world with around 82. household products were sold under the Brand name of Lucky. and air conditioners. from which the abbreviation of LG was derived. while electronic products were sold under the brand name of Gold Star. producing radios. . refrigerators. The current "Life's good" slogan is a backronym. LG Pune History of company The company was originally established in 1958 as Gold Star. LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. Lucky and Gold Star. In 1995. TVs. Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. LG India 3. Before briefing. I have divided the introduction part into three main sub parts. and acquired Zenith Electronics of the United States. washing machines. 1. LG Group 10 .000 executive and employees. As a result. besides launching new platforms in information technology and related areas.

(b) GSM Handsets. e) Vacuum Cleaners. d) Washing Machines.Philips LCD LG Chemical LG Telecom LG Powercom LG Twins LG Dacom Business areas and main products Mobile communications (a) CDMA Handsets. (d) Cellular Phones Digital appliance a) Air Conditioners. 5. 6. (c) 3G Handsets. b) Refrigerators. g) Compressors for Air Conditioners and Refrigerators Digital display a) Plasma TVs. 3. d) Monitors. f) Home Net. b) LCD TVs. c) Micro Display Panel TVs. LG. 4. 2.1. 11 . e) PDP Modules. c) Microwave Ovens.

b) DVD Recorders. e) Notebook PCs. f) Desktop PCs. h) PDA Phones. c) Super Multi DVD Rewriters. j) New Karaoke Systems. g) USB Memory. h) Flat Panel Computer Monitors Digital media a) Home Theater Systems. i) MP3 Players. d) CD±RW. g) PDAs.f) OLED Panels. k) Car Infotainment LG BRAND IDENTITY:12 .

institutive functionality and exceptional performance. c. Personality The Brands core Value that never changes. Promise 3. The brand platform:The LG brand is composed of four basic elements – 1.The brand of LG is delightfully smart. Passion The benefits that are consistently delivered to the customer includes Reliable products Simple design Ease of use Extraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy. LG strives to enhance the customer’s life and lifestyle with intelligent features. a. Friendly The Internal Culture of LG: LG practices four cultures 13 . Considerate Practical. People d. Trust. Benefits 4. Value 2. b. Innovation.

Boundary less Environment 3. Product Leadership We are focusing on six development areas to become the product leader. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. A carrier is highly growing in LG and one who is the employee can develop their carrier largely. Mission The mission of LG is to provide the customers with utmost satisfaction through leadership. Reliability 3.1. Learning Culture 2. Growth According to LG. Conventional Installation 4. A Carrier 4. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality. Boundary less Environment means that there is no difference between the levels of employees. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth. New Machine 2. the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning. Growth in LG is very high for those who are in the company and for those who want to join in LG. 1. There is transparency between the work and mutual understanding between all the employees. Environment Friendly Product 14 .

LG will succeed through fair management practices and constantly developing our business skill. c) Equal opportunities d) Equal Treatment Management Principle . From top to bottom: No.Creating value for customer Code of conduct of LG: 15 .5. Energy Saving Quality Innovation The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.1 LG – is the VISION “Jeong-DO” Management is LG’s unique application to ethics. Low Noise & Vibration 6. a) Honest with our customer b) Providing great values to customer through constant innovation & and development. LG proceeds in a hierarchal manner. It is named as “LG WAY”.

• • • Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value 2 Fair competition • Pursuit of Free Competition • Compliance with Laws and Regulations Fair Transaction : Equal Opportunity • Fair Transaction Procedure • Support and Aid for Business Partners 3 • 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 LG INDIA: 16 .1.

LG Electronics India is the fastest growing company in the consumer electronics. and computer peripherals industry today. South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LGEIL is celebrating the 11th anniversary this year. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. Kasna Road. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. home appliances. 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. Washing Machines. Ltd. 17 . LG Electronics is continually providing. ''Company is setting up a chain of exclusive premium showrooms. LG has a total of 83 LG stores across the country. This facility manufactured Color Televisions.LG Electronics India Pvt. near Delhi. India. To attract inspirational and young consumers across India. is planning a brand new image. At present. The exercise will cost the company Rs 360 crore. in 1998.51. consumer durables leader with 27% market share. superior technology products & value for money to more than 50 lakh households in India. of which 45 are shoppes and 38 are exclusive stores. Greater Noida. company will roll out a new marketing strategy. LG set up a state-of-the art manufacturing facility at Greater Noida. a wholly owned subsidiary of LG Electronics. LG Electronics India Ltd (LGEIL). with an investment of Rs 500 Crores. LG corporate office is located at Plot no. Air-Conditioners and Microwave Ovens.. Udyog Vihar.

Panasonic entered in 1995 in India). One of the last MNCs entered in India (Samsung. Motivated by a passion for technology. the sales in 2008 would be around 110 billion rupees. managing director of LG Electronics India has said that the company has earmarked 4. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. Compitition from local market players and other MNCs in consumer durable segment. In order to achieve its target. digital video broadcast and biometrics software and support LG Electronics with our expertise. 2.LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea. Price sensitiveness of the Indian consumer 18 . We at LGSI focus on niche technology areas such as mobile application development. The said money will be used to market as well as manufacture new products. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. color televisions. 3. has said that it expects the sale of its products in India to up by 15 per cent in 2008.8 billion rupees for investment purpose in India this year. a strong work culture and loyalty to the organization. LG Electronics. Low brand awareness about LG in India. 5. which is originally a South Korean Company with branch in India. LG Electronics Inc. we are determined to see LG become one of the top three brands globally.4 billion) in 2007. India challenges The challenges faced by LG when entered in Indian market 1. Moon Bum Shin. As per Shin's estimate. High import duty 4. informed that its sales of GSM mobile phones. Prominent consumer electronic company. air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2.

2. LG brought in four captains of the Indian cricket team to endorse its products. Regional channel and wide distribution network 1. LG was the first brand to enter in cricket in big way a way.LGEI over comes these challenges to emerge as Innovative marketing strategy 1. R&D potential LG has the research and development facilities in Bangalore and Pune. CTV has “Golden eye technology” Air conditioner has “Health air system” and microwave ovens have the “Health wave system”. All the distributers work directly with the company. class market. by sponsoring the 1999 world cup followed it up in 2003 as well. 19 . This has helped LGEI to reduce cost. C. LG has adopted the regional distribution channel in India. LG also follows the stock rotation policy rather then dumping stock on channel partners. 4. Launch new technologies in consumer electronic and home appliances. 2. LG has differentiated its product using technology and health benefits. Local and efficient manufacturing to reduce the cost To overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and Pune. 3. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. D. Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product. LG invested more then US$ 8 million on advertising and marketing in this sport. This has resulted in quicker rotation of the stock and better penetration into B. LGEI implementing the “Digital manufacturing system” (DMS) as the cost cutting innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier.

20 . Innovative marketing .LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). Leveraging India’s IT advantage . LG came out with Hindi and regional language menus on its TVs. Introduced the low-priced “Cineplus” and “sampooma” for the rural market. SCM. Commissioned contract manufacturing at Mohali.Product localization:1.This has resulted in quicker rotation of stocks and better penetration into the B. Regional distribution model .Product localization is a key strategy used by LG.LG was the first brand to enter cricket in a big way. The project involves development and support for ERP. LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida. Local and efficient manufacturing to reduce cost . 6. It came out with Hindi and regional language menus on its TV. Product localization . 3. 3. 5. Delhi. CRM and IT-enabled services for LG. by sponsoring the 1999 World Cup and followed it up in 2003 as well. C and D class markets. Product localization is the key strategy used by the LG 2. association with cricket LG introduce cricket game in CTVs 4.To overcome high import duties. 4. 2. Kolkata and Bhopal for CTVs. LG was the first brand to introduce gaming in TVs in continuations of its MAJOR KEY SUCCESS FACTORS 1.

Strategies adopted by the organization LG follows 10 commandments which are as follows. Customer is the king 7.Display share of 50% -to get 50% consumer share. LG market share of consumer appliances and consumer electronic:- 21 . Fast execution is key to success 3. Transparent and fast communication-open communication 4. Foster working environment-5S Environment 2. Update market -knowledge –Demographics 5. 9. 30% Office). Be in touch with the market (70% Market. Win –Win relationship with the trade partners 6. 1. Even Billing –Road to ach supplier A 8. Plan and Execute annual marketing Calendar-Time to market 10.

LG position of CTV in various states in India LG position of AC in various States in India 22 .

LG position of Audio & Home Theater in various in India LG position of DVD in various in India 23 .

informed that its sales of GSM mobile phones. This analysis represents the LG market position during the period of March 2008. Prominent consumer electronic company. air conditioners and other household goods in the Indian market was to the tune of 95 billion 24 . The said money will be used to market as well as manufacture new products.8 billion rupees for investment purpose in India this year. LG Electronics. LG Electronics Inc.LG position of MWO in various states in India This analysis is based on the ORG survey conducted by LG which represent the LG position of different consumer durables in various states in India. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable. managing director of LG Electronics India has said that the company has earmarked 4. It shows that LG has captured maximum market share almost in every category. color televisions. Moon Bum Shin. I select different brand in different category as per the market share and the demand of product in market. has said that it expects the sale of its products in India to up by 15 per cent in 2008.

. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. LG has split its southern regional office into two. 4. the sales in 2008 would be around 110 billion rupees. The Indian branch of LG exports to 40 countries. For dealer relationship they arrange dealer meting at several time in the year 25 . Haryana & Rajasthan respectively. Day to day advertisement in leading newspaper.The key strategies being implemented include increasing the number of its regional offices from six to eight.4 billion) in 2007. resulting in a significant increase in its mass media expenditure for better brand visibility. 5. banners are used so as to grab the attention of the costumers. Posters. Maharashtra & Goa and Punjab. Hoarding. Discount at festival time. Exhibitions are conducted from time to time. 3. Society and college activities are conducted. For the marketing of the products a number of activities are followed 1. The other four regional offices take care of East. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. In the coming year. the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 10-15%. it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. LG had a marketing budget of Rs 320 crore in 2007 with a 60:40 split in favor of below-the-line activities. In order to achieve its target. 2. In addition. Distribution and Marketing The company has number of dealers and warehouses. LG is also repositioning its marketing spends. Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007. Next year. They have LG exclusive shopee.rupees ($2. As per Shin's estimate. one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. 6. Gujarat and Madhya Pradesh.

10. but increasingly two or more year’s maintenance and/or replacement policy. speed of response. or service provider determines what is included in any warranty (or guarantee) package. LG also uses the radio FM for the promotion activities. CUSTOMER SERVICE The best and the biggest international brands are here in India –but the irony if it all: where is the after-sales-service? So integral to a brand. and action taken. In the case of a service provider. LG divide dealer in gold silver etc. analysts and market researchers to get a feel of what’s really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories. LG also had a big problem of after sale service in India. items included/excluded. so critical for its success and so taken for granted in developed markets! In India. During my project I also came to know that after sale service becomes the big issue in Pune region. Customers support following the purchase of a product or service. This will include the duration of the warranty traditionally one year from the date of purchase. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product.7. 9. The manufacturer. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint. retailer.Also provide capon and scratch card for festive season. and speed of response. In some cases. stockiest and dealers. the pits. for want of a better description. after-sales service might include additional training or helpdesk availability. after sales service is. Brand Equity fanned out to MNC as well as Indian consumer durable companies. Customers as well as 26 . 8. So what’s stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they don’t really care. labor costs. aftersales service can be almost as important as the initial purchase. category to know the performance of the dealers.

with 1200 service centers. So it becomes the big issue. L G Electronics.000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting. Because of this problem many dealer in Pune region were not ready to sale LG product. 27 . 3." 1. But LG has taken some solid steps towards improving customer’s perception and experience of after sales service.dealer were facing the problem of after sale service. Punjab. The company will invest Rs 8 crore (Rs 80 million) in employee development programme this year with an aim to attain a 8 per cent attrition rate. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the GSM mobiles and the personal computer segments. Assam. The company aims to recruit 10. Y V Verma. "The company has offered a scholarship to the selected students for the last six months of their training programme. LG Electronics said.000 by the year-end." 4. Because it very important in competitive market to provide the best service. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. Gujarat. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. Delhi. "The Company was trying to find a solution for effective after sales service since last two years. 2. In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra. has already recruited 300 students and plans to beef up the number to 10. director HR and management system. and Karnataka and is in the last leg of signing with Uttar Pradesh.

and can even contribute as a revenue center. The company has introduced a 211 service . This shows commitment that Service must be made into a marketing differentiator. 8. (as mentioned in Dermot’s public interview in ET on Wednesday). You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand. we will call you back in 2 hours (hence 2). some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. (Service in India generally works through authorized service centers. and leveraged thus. knows things better. in LG’s case they work exclusively for LG. 6. 28 . and show up in the promised 1-hour slot (hence the second 1). both of which revolve around prompt response. set up an appointment for the next convenient day for you (hence the first 1). If the next convenient day for you is the next day. probably the first time after-sales service is being communicated in this fashion by any product company. LG has the widest service network across the country. and thus not leveraging any mileage from it. While the sale size may also be a nice multiple from nearest. The company is promoting 211 through ATL. The first LG-owned service centre opened in Gurgaon. 10. It’s a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities.once you register your complaint. At the top.5. 9. it shows the company is ready to put our money where our mouth is. the Service Division in Korea reports to the Global CMO. 7. that’s great too.) A company-owned service centre tries that much harder.

 Find out the problem faced by the dealer in sales and the distribution. The main objective of research was to identify potential dealer and development these dealer.  This will ease the dependence on the some big dealer like Maharashtra and Mahaveer electronics. To increases the knowledge consumer durable product of LG.   Find out the positional dealer who can sale the LG product in large volume.Objective of the project Primary objective  The main objective of filed survey during the project was to find out the market share of the LG and also calculate the display share.  While purchasing the consumer durables which parameter is most important for the consumer?  Do the consumers prefer the financial facility for buying consumer durable?    How frequently consumers change the consumer durable? To enhances the knowledge of consumer durable market. So LG can make them their direct dealer. 29 . Secondary objective  The Objective was to find out that how far the exhibitions are helpful in branding.  To enhances the knowledge about the marketing and branding activity.

According to Kerlinger. 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. There 30 . what. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age. it is the key to the evolution of successful marketing strategies and programmers. it is impossible to complete the project and reach to any conclusion. brand loyalty. conceptual structure. It is an important tool to study buyer’s behavior. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. The objective of such study is to answer the “who. sex.Research Methodology: Research methodology is considered as the nerve of the project. or determining the relationship between two or more variables. In fact. Without a proper well-organized research plan. The project was based on the survey plan. “Research Design is a plan. A research design specifies the methods and procedures for conducting a particular study. and strategy of investigation conceived as to obtain answers to research questions and to control variance. making projections of a certain thing. and focus market changes. education level. occupation or income. Therefore. where and how” of the subject under investigation. research methodology is the way to systematically solve the research problem. which work as a base for drawing conclusion and getting result. when. consumption pattern. Types of research is: • Descriptive Research The type of research adopted for study is descriptive. The main objective of survey was to collect appropriate data.

Cross sectional studies are of two types: Field study and Survey. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. demanding a high degree of scientific skill on part of the researcher. as it exists at present. The reason for using such 31 . dealers. or other entities.is a general feeling that descriptive studies are factual and very simple. Data on a number of characteristics from sample elements are collected and analyzed. the researcher give sufficient thought to framing research. Detail information can be obtained from a sample of large population . it is economical as more information can be collected per unit of cost. which need different techniques and skills. It is therefore necessary. A cross sectional study is concerned with a sample of elements from a given population. there are some practical differences. Thus. Descriptive research is description of the state of affairs. factories. it is obvious that a sample survey needs less time than a census inquiry. Descriptive studies are well structured. Another type of cross sectional study is survey result. A major strength of survey research is its wide scope.cut . This is not necessarily true. it may deal with household. and organizations.Besides. schools. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. 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. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. In addition. retail stores. but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. 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. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Although the distinction between them is not clear. which has been taken by me. Descriptive study can be complex. An exploratory study needs to be flexible in its approach.

The Company’s profile. One of the important tools for conducting market research is the availability of necessary and useful data.needs to be flexile in its approach. The total value is represented by the full create. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. This diagram consists of a circle of divided into a number of sectors. journals and various literature studies are important sources of secondary data. Pie chart: This is very useful diagram to represent data . Data collection methods: After the research problem. we have to organize a field survey to collect the data. which are divided into a number of categories. 32 . we have to identify and select which type of data is to research. Questionnaires 2. At this stage.  Sampling  Research Instrument  Secondary Data .  Data analysis and interpretation 1. The diagram bar chart can make comparison among the various components or between a part and a whole of data. Primary data: For primary data collection. but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then. we have to plan the following four important aspects. which are proportional to the values they represent. Pie chart and Bar chart Questionnaires: This is the most popular tool for the data collection.

Bar chart: This is another way of representing data graphically. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The lengths of the bards are proportional to the value they represent. The sample of the questionnaires is attached with the report itself. which originate from a common base line and are equal widths. Business man. of respondents during the research: Sample unit Professionals. I have made questionnaire. Sampling Methodology: Details of the sampling methodology. of questions in questionnaires for customer: No. Working women. of question related to LG product: No. of people met during the research: No. The one is made for the Customer. House wife. No. As the name implies. Employees. it consist of a number of whispered bar. Students 07 03 200 50 33 .

People are less interested to purchase product from the exhibition. So exhibitions are more useful to increases brand awareness. 3. 65 % of Customer have not purchased any consumer durable from exhibitions.Analysis: Q1. 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. 2. Consumer also want to compare to the different brand which are available in the exhibition. 6. 34 . 4. 5. Have you purchased any consumer durable during Exhibitions?  Yes  No Inferences 1. Only 35 % people have purchased.

35 .Q. 26% give importance to brand. So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand. 30% of customer gives importance to price. And they are also want best brand in best price.2While purchasing consumer durable which parameter influences you?  Price  Product feature  Brand  Service  Durability Inference 1. So price and Brand matter a lots for the costumers. 19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability. 2. 3.

Very less proposition of customers buys from Exhibitions. 3. 36 .Q3. 2. 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. From where you prefer buying consumer durables  Exhibitions  Co. A majority of customers prefer to buy from showrooms.shoppee  Showroom Inference: 1. 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.

Customers buy from showrooms because of the service and convenience.4. 37 . 4. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. 3.You prefer to buy from the same as you have mentioned in Q. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms.3 because of following reasons  Attractive Price  Service  Demonstrations  Offers Inference 1. Price also a factor that attract the customer in these showrooms. These are two main factors.Q. 2.

In plasma BPL is the leader. 38 . In Ref LG is the leader. MW LG is the leader. In WM there are companies and in AC also.Which consumer durable you have and of which brand?  CTV  LCD  PLASMA  REF  WM  MW  AC Inference In CTV section maximum customers have Onida.Q. in LCD Sony is the leader.5.

39 .Q. How frequently you change your consumer durables?  1-3 years  3-5 years  5-10 years  More than 10 years INFERENCE 1. It represent that Indian consumer do not prefer to change their consumer durable frequently.6. Customers prefer to change consumer durables within 5-10 years. 3. 23% customers do not change their consumer durable within 10 year. In India people do not change consumer durable frequently. 2.

In survey we found that LG has captured maximum market share in every category. LCD. 8.Beside convenience and other factors service is key factor. They want to buy from the showrooms or from co. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. category. and Washing machine. There was heavy rush on weekends so large numbers of ISD’s were appointed that day.CUSTOMER SURVEY FINDINGS 1. For them service is important . Secondary supports play an important role in the customers mind and create awareness among the customers. 10. From the survey it was found out that the majority of customers don’t buy consumer durables from exhibitions. The secondary support includes Demonstration. 4. category. 9. 3. 2.Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. LG and Samsung have bottle neck competition in TV and REF. Exchange offers also generate sale. RECOMMENDATIONS AND SUGGESTIONS 40 . Also majority of customers do not want any financing scheme for purchasing the durables. and Refrigerator. 7. The product is well aware and it is on top of mind of customer. latest model. showrooms. 5. 6. Exhibition & Even Sponsors. Also the live demo calls helps in selling. They just visit the exhibitions to see the co. LG dominates CTV.

IT. Display share should be increased where there is less than 50% as LG also believes that “JO DIKHTA HAI WO BIKTA HAI”. 3. and GSM. Exhibitions do not help to generate so much sells but they should be conducted regularly. 4. Company should try to improve service. Also it is helps in advertising for the new products. No doubt the company products have technically edge over competitors but in long run it may hamper the company’s profit. 2. LIMITATIONS 41 . 5. This helps in generating awareness regarding the product in customers which ultimately helps in sales. Company should concentrate more on its major drivers LCD.1. 6. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers. Like in this exhibition new LCD SCARLET was advertised. Company should also cater to the needs of sub dealers as some of the sub dealers have potential of high sales. Company should always focus on service.

My research work period witness the biggest ups and downs in product sale of different brands. 1. 6. This was biggest drawback of my study. which I could not able to solve. which affected the perception of the customer.Every study has certain limitations. an average middle class family was required for the study. The customer filled the questionnaire mostly in careless manner. so it was difficult to make them hold for time. Time factor was also important for me. 5. I had only 60 days to complete my research. The research was conducted in a very small area. In my study. The sample size is also very small which represent my research on consumer behavior My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage. BIBLIOGRAPHY 42 . 4. for which a full-fledged report was insufficient for me. I had only found the upper-middle class family to fill up the questionnaire. but generally. also there were certain limitations. 2. 3.

lgindia.com  www.com  www.wikipedia.google.com  Business world  Business today  LG magazine  Economics times News paper  Times of India 43 . www.

Sign up to vote on this title
UsefulNot useful