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“Consumer Buying Behavior & Brand Loyalty

In consumer Durable products
(Segment Colour T.V. )”

Submitted by

Thakur Mandar Dnyaneshwar

MMM – SEM V Roll No. 96

Under the Guidance of

Prof. Shri. Shailesh Kale

In Partial Fulfillment of

MMM course

University Of Mumbai

(2007-2010)

Executive Summery
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 appeared. Today, few of
these players control the major share of the consumer durables market.

Consumer durables market 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
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
Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of
MNCs in consumer durables sector is 65%. MNC's major target is the
growing middle class of India and increasing floating population. MNCs
offer superior technology to the Consumers whereas the Indian
companies compete on the basis of firm grasp of the local market, their
well-acknowledged brands, and hold over wide distribution network.
However, the penetration level of the consumer durables is still low in
India.

Strengths:
1. In term of purchasing power parity (ppp), India is the 4th largest
economy in the world and overtake Japan in the near future become
the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by
on 2010
3. India has the youngest population amongst the major countries. 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.
4. There are 56 million people in middle class, who are earning
us$4,400-US$21,800 a year. And there are 6 million rich household in
India.
5. The upper-middle and high-income household in urban areas are
expected to growing

Opportunity :

1. In India the penetration level of white goods is lower as compared to
other developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e.increase in purchasing power of
consumers.
5. Easy availability of finance.

Threats :
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian countries.

 Study the various marketing moves of the market leader for better understanding of the .  Understand the role of the Brand loyalty in Consumer Durables.  Address research findings based on theory of Consumer Buying Behaviorand Brand loyalty.  Collect primary data for more insight.  Derive conclusions based on the Primary and Secondary. project scoped down to understand the role of Consumer Buying Behaviorin this transformation in Consumer Durable Products. SCOPE OF THE PROJECT:  Taking in to consideration over all view of the situation.  Factors affecting consumer decision making.  Study the position of leader in the segment. Path Forward:  Study Secondary data for industry overview.

quality. • Modern consumer is conscious and awareness is high. Internet. Research Objective: • In this study more focus was to understand the Consumer Buying Behaviorwhile purchasing Colour Television. Peoples Interactions Sample Units : Individual Consumers. Literature Survey. • Being in the Indian context family plays a important role. Assumptions : • Samples collected are representative of the entire population. Sampling Method: Random Sampling. • He/ She is more curious about the product. Research Method Data type : Primary Data Research Tool : Questionnaire. Business Magazines. • Try to obtain maximum information before actual decision making. Family members. . price and features offered.

. But still the consumers electronics goods such as Colour T. refrigerator. Changing lifestyle. refrigerators are reaching saturation in the urban areas the markets for this products are shifting to the semi urban and rural area. refrigerators. The industry had been witnessing significant growth in recent year due to several factors such as retails boom. on the back of rapid economic growth. The Indian consumer durables industry has witnessed a considerable change in the past couple of years. representing vast room for growth . mobile phones etc. This is attracting many foreign players in country. Since the penetration of several products T. • In the changing market scenario. washing machines. This industry consists of durable goods used for domestic purposes such as televisions. emergence of the retail industry in a big way coupled with rising affluence levels of a considerable section of the population. . microwave ovens.V.V. The growth in the consumer durables sector has been driven primarily by factors such as the boom in the real estate & housing industry. has made the countries consumer electronics industry highly dynamic. higher disposable income. and washing machine have low penetration in the country. and post globalization do Brand Loyalty really exist? India has an increasingly affluent middle class population that. microwave. coupled with greater affordability and a surge in advertising has been instrumental in bringing about a sea change in the consumer behavior pattern. growing disposable income and availability of easy finance scheme.

it is the brand name. technology and product features that are important. • Product pricing: The consumer durables industry is highly price sensitive.As per the survey conducted by the FICCI on Indian consumer durables industry. Newer variants of a product will help a company in getting the attention of consumers who look for innovation in products. technologically advance branded products has been quite discernable. The key growth drivers for Indian consumer durables industry are : • Rise in disposable income: The demand for consumer electronics has been rising with the increase in disposable income coupled with more and more consumers falling under the double income families. • Availability of newer variants of a product: Consumers are spoilt for choice when it comes to choosing products. This shift can be explained by narrowing differentials between the prices of branded and unbranded products added with the high quality of after sales service provided by the branded players. . . For middle and upper range consumers. The shift has also been triggered by the availability of foreign branded products in India owing to lower import duties coupled with other liberal measures as introduced by the government. a shift in the consumer preferences towards higher end. at least for lower range consumers. making price the determining factor in increasing volumes. The growing Indian middle class is an attraction for companies who are out there to woo them.

The share will grow with bigger players entering the market. As a result most companies come out with offers during this period to cash in on the festive mood. especially from global ones who have technologically advanced products to offer. organised retail which constituted a mere four percent of the retail sector in FY07 is likely to grow at 45-50% per annum and quadruple its share in the total retail pie 16% by 2011-2012. Major hurdles and challenges plaguing the Indian consumer durables sector: • Threat from new entrants. free gifts and exchange offers help a company in distinguishing itself from others. • Availability of financing schemes: Availability of credit and the structure of the loan determine the affordability of the product. Sale of a particular product is determined by the cost of credit as much as the flexibility of the scheme. • Festive season sales: Demand for colour TVs usually pick up during the festive seasons. • Rise in the share of organised retail: Rise in organised retail will set the growth pace of the Indian consumer durables industry. • Innovative advertising and brand promotion: Sales promotion measures such as discounts. . especially global companies: The domestic consumer durables sector faces threat from newer companies. According to a working paper released by the Indian Council for Research on International Economic Relations (ICRIER). This period will continue to be the growth driver for consumer durable companies.

• Potential markets remaining yet untapped: A large segment of the domestic market.• Rivalry and competition: Presence of a large number of players in the domestic consumer durables industry leads to competition and rivalry among companies. poses a threat for companies operating in the consumer durables sector. . especially in urban areas has turned off the viewership from TV to a large extent. Threat from rivalry and competition poses a threat to domestic companies. • Threat from substitute products/services: The domestic consumer durables industry is plagued by threats from substitute products. Tapping this yet untapped and unorganised market is a major challenge for the Indian consumer durables sector. mostly the rural market is yet to be tapped. with similar features. radio sets have now substituted TVs. • Customer power with respect to availability of choice: The availability of a wide product line on account of most products being homogeneous. Customers have the choice of both domestically produced and imported goods. Easy accessibility to theatres/multiplexes. With the advent of a horde of FM radio stations.

Importance of studying this topic : This study will give an important insight of customer who goes to buy consumer durables mainly Colour TV in showrooms. A company gets to know from this research what factors influence the purchase decision of customer. Accordingly directs its marketing effort so that it can get maximum potential customer to purchase companies TV. Thus he can convert maximum of potential customer into buyers if he knows what exactly triggers the customer decision. What does he thinks while purchasing a Colour TV. Seller or company would get an insight to consumer behavior regarding purchases like what does consumer thinks while . What factors influence his decisions of purchasing TV? A seller in showroom does not know what all goes in mind of consumer when he enters his shop to purchase TV. They have to rely on trial and error basis this research will tell what factor consumer wants so that he comes to your shop.

purchasing a Colour TV?, What factors influence his decisions
of purchasing TV?

Industry Classification

The consumer durable industry can be broadly classified as consumer
electronics and consumer appliance. The consumer appliances category
can be further segmented as white goods and brown goods.

Classification of Consumer goods under following three category
Brown Goods / Kitchen Consumer
White Goods appliances Electronics
Refrigerators Mixers and grinders Mobile Phones
Washing
Machines Microwave oven, cooking range Televisions
A/C Irons MP3 Players
Audio
Equipments Electric fans DVD players
Etc Etc Etc

Industrial Growth

The industrial sector grew in moderation during FY08 at 8.5% on the
back of a comparatively higher growth of 11.5% during the previous
fiscal. The country’s real GDP grew by 9% during FY08; a tad lower
than 9.6% in the previous fiscal. The consumer durables segment

witnessed a fall in production particularly for items where consumer
preferences have shifted towards newer products. Shifting in the
consumption pattern coupled with rising input costs of steel, iron ore etc,
may further affect the production levels of these goods. On the supply
side newer variants of consumer durables on the back of technological
advancements have flooded the market, whereas on the demand side it is
the prospering middle class and consumerism which have led to changing
demand patterns.

Consumer durables: Industry size, growth and trends:
During FY 07, volume share of consumer durables was as follows…

C onsumer D urables Volum e S hare

C olour
Television, 30%
O thers, 34%

Refrigerators,
W ashing Air 18%
Mac hine , 5% C onditioners,
13%
C olour Television R efrigerators Air C onditioners
W ashing Mac hine O thers

The consumer durable market in India was estimated to be around US $
4.5 billion in 2006 – 07. More than 700 million units have been sold in
the year 06-07. Colour T.V. forming the bulk of the sales with 30% share

of volume. CTV, refrigerator and Air conditioner together constitute
more than 60 % of the sales in terms of the number of units sold.
The CTV production was 15.10 million units in 06-07 and is expected to
grow by at least 25 % . At the disaggregated level conventional CTV
volumes have been falling while flat TV’s have grown strongly. The flat
segment of the CTV now accounts for more than 60% of the total
domestic TV production.
High end products such as Liquid crystal display ( LCD), and plasma
display TV grew by 400 % and 150 % respectively in 06-07 with sharp
decline in the price of these products.

Now lets see who all are the market players in this colour T.V. segment.

TV company and relative market share table and pie chart… .

it was decided to conduct market survey and interpret the results. Based on the findings the various consumer behavioral aspects will be explained and studied.V. MARKET SHARE SHARE OTHERS VEDIOCON 2% 16% LG 36% ONIDA 18% SAMSUNG 28% From the market share analysis it is clear that LG India is market leader in the Colour TV segment. To get the insight of the consumer buying Behaviorin a better way. To interact with the consumer on-line survey as well as interviews were conducted. Indian Colour T. . But in today’s competitive market which is dominated by consumers. For any company getting the chunk of this market will always be delightful. industry comprises of 30 % of total market share in consumer durable industry. understanding the consumer buying Behaviorwill always be important.

Questioner was prepared and mailed across various recipients. Live interviews were taken for better understanding of the consumer psychic. . Various consumers from different strata were selected.

1 What is your age group? Age Group Option % of Respondent . DATA ANALYSIS AND INTERPRETATION Q.

00% 0.00% 40. Gender Gender Option % Respondent Male 85 Female 15 . product should be attractive towards young generation.5%) who responds to the survey are between age group 25 – 30 yrs. We can interpret based on this that maximum consumer for this category is young in age.00% 25.50% Age Group V/S % of Respondent 50.25 yrs 27.50% 40 yrs . 20 yrs .00% 10.45 yrs 8% 45 yrs and above 4. Targeting and positioning should be done by keeping in mind this age group.30 yrs 47.35 yrs 12.00% 35. Q2.00% 45. So.00% 5.50% 30 yrs .00% 15.00% e s s s s ov yr yr yr yr ab 5 0 5 5 2 3 3 4 d - - - - an s s s s yr yr yr yr s yr 20 25 30 40 45 Age Group Interpretation : From the above findings it is clear that maximum no of respondent (47.50% 25 yrs .00% 30.00% 20.

Or other way it can be interpreted that male counter parts are given liberty to take such high involvement decision. So. Gender V/S % Respondent 90 80 70 60 50 40 30 20 10 0 Male Female Gender Interpretation : During survey and interviews it was observed that most of the respondent (85%) are male. . male dominance can not be ignored. Electronic industry is male dominated decision making industry. Even after globalization and many changes which had occurred in the country’s social structure.

Rs.00% 10. monthly income of almost 50% respondent lies between Rs. 50K 20.00% 0.Rs. 40K 22. .00% ve K K K K 20 30 40 50 bo a s.00% Rs 20K .Rs. 20K – Rs.00% 15. s. Companies should take this in to account while fixing price for the Colour T. 30K 27. 20K 15.50% Rs 30K .40 K.00% 5. s.Q3.00% 25.50% Rs 40K . d -R R R R an - - - K K K K K 50 10 20 30 40 s.00% 20.00% Monthly Income V/S % respondent 30.Rs. s.00% Rs. Monthly Income : Monthly Income Option % respondent Rs 10K . s s s s R R R R R Interpretation : From the collected data. 50K and above 15.V.

66% Sony 18.00% 18.24% Sharp 1.43% Samsung 12.00% 16.00% p a j on LG l ng ny s c s L re oo ar d ni er ilip BP oc So od ni su so r lp Sh th Ph O de G m O na hi Sa W Ve Pa .00% 6. Which brand of electronics are you currently using? .05% Whirlpool 6.00% 4.81% Onida 4.00% 8.00% 12. Brand of Electronics Option % respondent BPL 3.81% Vedeocon 8.63% Godrej 9.00% 0.00% 2.23% Brand of Electronics % respondent 20.61% LG 15.64% Philips 10.07% Panasonic 1.00% 14.Q 4.00% 10.82% Others 7.

V.V.Q 4. Which brand of electronics are you currently using? Brand Of Colour T. % Respondent 30% 25% 20% 15% 10% 5% 0% p da n LG s ng ny ic L co ar er BP on So ni su Sh th o O s de m O na Sa Ve Pa . Option % Respondent BPL 8% LG 28% Sony 23% Panasonic 4% Vedeocon 16% Samsung 10% Sharp 2% Onida 4% Others 5% Brand Of Colour T.

. SAMSUNG.5% But .02% . Also. ONIDA. LG is dominating market by 28% followed by SONY 23%. SONY. post globalization are more attracted toward the International Brands. VEDEOCON. Which brand of electronics are you currently using? This question was used to check the various brands which have entered in the consumers home through various appliances. Vedeocon is on IIIrd position with 16% market share.Q 4.V. They are ready to experiment by leaving age old Brands if proper quality and value for money is offered. when we see colour T. this gives the fair idea about which brand of colour T. Where as Domestic big shot players like GODREJ. hardly comprises of 26. Indian consumer market is dominated by these International players. industry. Which are comprising of 56. instead of Domestic Brands. BPL. electronic brands which have strong foot hold in the consumers house hold are LG.V. This clearly indicate that Indian consumers. PHILIPS. consumer is currently using Interpretation : As the data suggest.

V. Option % Respondent BPL 2% LG 16% Sony 16% Panasonic 6% Vedeocon 12% Samsung 16% Sharp 3% Onida 11% Philips 4% Sharp 3% Others 11% .V. When you think of colour T.Q5. which brand name strikes to your mind ? Brand Of Colour T.

Advertising impact.V. recall 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% p a p on LG ng s ny ic L s d ar ar er ilip BP on oc So ni su Sh Sh th Ph O s de m O na Sa Ve Pa Interpretation: Recall value in the consumers mind plays a very important role in purchase decision. as even though being a market leader in the industry the recall value for the SONY is high compare to LG. . Data interpretation shows that international brands like LG. is having a immediate threat from SONY and SAMSUNG in near future. More the recall. plays a major role in creating a recall. Various factors such as brand image. Samsung is almost on the same ground as that of LG. Samsung are having more recall value. Where as in domestic segment Vedeocan is followed by Onida. Sony. Brand Of Colour T. more are the chances that the prospective customer will get converted in to a active buyer. LG should think of this. LG.

LCD TV. there are still considerable consumers (35%) who are still using . Which type of colour TV are you having? Type of colour TV Option % Respondent Conventional TV 35% Flat TV 48% LCD TV 10% Plasma TV 8% Ultra slim TV 0% Type of colour TV 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Conventional Flat TV LCD TV Plasma TV Ultra slim TV TV Interpretation: Even though the companies are more concentrating on flat screen TV.Q 6.

Q7. This means.V. these consumers can be aspiring consumers for the Flat screen or LCD TV. Sets Option % Respondent YES 12.18 No of T.82 NO 87. Do you own multiple TV units? (for bedroom. This means still Indian consumer perceive the Colour TV to be a .V. Reason could be high price line or target consumers (Top of the pyramid). Sets % Respondent 90 80 70 60 50 40 30 20 10 0 YES NO Interpretation : Only 12.conventional TV. living room etc) No of T. But market is not that much responding to the Plasma or Ultra slim TV.82 % respondent says that they are having multiple TV units in the house hold.

So.above 17. Q8. while customizing the product company should keep in mind this family factor value in mind.00 25.00 10. How old is your current TV set? No of years Option % Respondent 0 .63 10 Yrs .07 No of years % Respondent 30.09 Yrs 14.03 Yrs 29.00 15.06 Yrs.12 Yrs 12. Yr Yr Yr Yr bo 3 9 2 -a 6 -0 -0 -1 -0 s 0 s s Yr s Yr Yr Yr 13 07 10 04 Interpretation : .20 13 Yrs . There is still scope for improvement for companies to introduce some variant which will fulfill the room specific requirement at affordable price.27 04 Yrs .00 ve s s s s.family using item and not for individual usage. 26.00 0.00 5.83 07 Yrs .00 20.

Q9. Do you intent to buy colour TV in near future? And within how much time frame? Intent to buy Option % Respondent YES 60 NO 40 Time period Option % Respondent with in three months 5.00 with in next Three yrs 15.00 with in next Six yrs 52. Hence.50 Within a year 25. 5 years purchase cycle can be considered by companies for future strategies. almost 56.50 . If we see the data.00 Next six months 2. Respondent where subjected to this question to know the purchase cycle of the Colour TV. Purchasing cycle of the product is very important.10 % consumers had changed there colour TV in last 6 years.

Following are the expectations of the consumer from a good colour TV. Q10. • Affordable price • Good clarity • Good sound quality .00 with in three Next six Within a year with in next with in next months months Three yrs Six yrs Interpretation: This findings also support to the earlier suggestion. Time period %Respondent 60.00 20. What features would you like to have in your TV? This was a descriptive question asked to respondent. Idea behind this question was to know about the consumers perception about the GOOD FEATURES in the colour TV.00 30.5% consumers intent to buy CTV in next 6 years. they were grouped based on the characteristics. All the expectations of the consumers were jotted down and to bring the uniformality among the suggestions.00 10. Almost 52.00 40.00 50.00 0.

The results for the same are as follows. every Brand has some USP’s to which the consumers always associate the brand with. Respondent were asked to name brand against the feature mentioned. • Long term durability • Good Performance • Over all features • After sales service. As a part of consumer behaviour. Q10 A) Which Brand of colour TV is best in terms of PRICE? Price Option % Respondent Samsung 24 LG 20 Onida 20 Vediocon 25 Sony 11 .

Price % Respondent 25 20 15 10 5 0 Samsung LG Onida Vediocon Sony Interpretation: Consumers are having a perception of Vediocon and SAmsung among the top brand based on the pricing. Q 10 B) Which brand of colour TV is best in terms of clarity? Clarity Option % Respondent Samsung 19 LG 27 Onida 16 Vediocon 10 Sony 28 .

Clarity % Respondent 30 25 20 15 10 5 0 Samsung LG Onida Vediocon Sony Interpritation As per the consumer perception Clarity of Sony Colour TV is good. followed by LG and Samsung Q 10 C) Which Brand of colour TV is good in terms of sound quality? Sound Quality Option % Respondent Samsung 22 LG 28 Onida 10 Vediocon 12 Sony 28 .

Q 10 D ) Which brand is best in terms of Durability? Durability Option % Respondent Samsung 28 LG 34 Vediocon 14 Sony 24 . Sound Quality % Respondent 30 25 20 15 10 5 0 Samsung LG Onida Vediocon Sony Interpretation: Again the survey findings are in favor of the LG and Sony for sound clarity.

Consumers perceive LG products more durable compare to competition. Q10 E) Which brand of colour TV is best in terms of performance? Performance Option % Respondent Samsung 24 LG 30 Vediocon 18 . Durability % Respondent 35 30 25 20 15 10 5 0 Samsung LG Vediocon Sony Interpretation : Taking in to consideration the consumer perception. LG again lead the competition.

Sony 28 Performance % Respondent 30 25 20 15 10 5 0 Samsung LG Vediocon Sony Interpretation: Consumers rate LG ahead of all the brands in case of performance. Q 10 F) Which brand of the colour TV is best in terms of the after sales service? Performance Option % Respondent Samsung 22 LG 29 Vediocon 16 .

Q 11. Will you buy the same company which you are currently owning? Same company Option % Respondent YES 42.5 .5 NO 57. Sony 33 After Sales Service % Respondent 35 30 25 20 15 10 5 0 Samsung LG Vediocon Sony Interpretation: Sony provides best after sales service through the CRM of the company.

11% . From where would you collect data / information about new colour TV set? Information Processing Option % Respondent Friends 22. Reason for this could be consumers are unsatisfied with current brand.83% News paper/ magazine 18.05% Showroom Survey 22. Q12. or they are eager to try out some new product from different brand. Same company % Respondent 60 50 40 30 20 10 0 YES NO Interpretation: There is not much difference in the consumers response.

46 Gifts Offered 3. Sh T.96% Information Processing % Respondent 25. Commercials 15.00% et ey ne s s s nd er al rn rv i az ci th ie te Su er ag O Fr In m om m m r/ ro Co pe ow pa V.9 Quality 18.V.32% T. Internet information gathering is also on the raising side.00% 10.46 Aftersale service 13.25 Latest Technology 13.00% 20. ws Ne Interpretation: Consumers like to acquire required information from traditional methods of information processing and that is friends.27 Features Offered 15. magazines.00% 0.75% Others 3. Q 13)What would you take in to consideration while making buying decision? Factors Options % Response Price 14. Internet 17. Due to retail growth in India the showroom survey is more comfortable for consumers.00% 5.87 Style 6.85 .00% 15.

Quality. Now to understand the consumer decision making process in a better way. Brand 13. features and price are on the top of the mind while making buying decision. Q14. Would you take in to consideration your family members opinion? Family members Opinion Option Response Yes 85 No 15 . it is important to know what are the factors which consumer take in to account while making decision making.94 Factors % Response 20 18 16 14 12 10 8 6 4 2 0 d gy e d re ic d y re e le lo rv lit n ffe ric ffe ty o ra ua se hn O P S B O Q e ec s s re al ift T rs tu G st fte ea te A F La In previous few questions we have seen that how consumer perceive various Brands with various features. As listed above various factors are taken in to account by the consumers.

As expected 85% of the respondent replied that they will take in to consideration the family members opinion. Q15. One of the influencing factor in this process is FAMILY MEMBERS. In Indian context . Various external factors influences consumers decision making process.16 Salesman 4 . In such a complex market consumer do lot of information processing . Family members Opinion Response 90 80 70 60 50 40 30 20 10 0 Yes No Interpretation: Consumer electronics market is considered to be a complex decision making market.68 Parents 25 Spouse 25 Children 13. Consumer’s family plays a very important role. To check the influence of the family members above question was asked to respondent. Whose opinion will matter you most ? Opinion Option Response Friends 23.

But apart from family members what all are the factors which influence the consumers in buying decision? Friends. ? Purchase Point Option Response Company Showroom 42. There opinion is count by the purchaser before making buying decision.5 Electrical mall 26. Q16. spouse . salesman. brand ambassadors) are influencers. parent. From where would you prefer to buy your colour TV set. Others 9.5 Local Vendor 12. children.5 Exhibitions 0 Multi Branded Showroom 18. others (office colleague . word of mouth.16 Opinion Response 25 20 15 10 5 0 Friends Parents Spouse Children Salesman Others Interpretation : As discussed earlier.5 . consumer’s family plays a very important role in decision making.

? Interpretation: Understanding the consumers need.5% respondent want to buy product from the companies showroom. Various exhibitions which company get in to do not form part of the favorite consumer purchase ponit. adding a desire in that need. consumers want to buy the product from the reputed and trustworthy purchase point. Being a high involvement product.V.5% share. Q17. When response from the respondent was analyzed it can be seen that almost 42. converting the same in to want and providing the product to fulfill the . and multi branded showroom comprise of 44. As a future product what features would you like to add in to colour T. Purchase Point Response 45 40 35 30 25 20 15 10 5 0 Company Electrical mall Local Vendor Exhibitions Multi Branded Showroom Showroom Interpretation: Point of purchase is another important factor which always come to buyers mind. Electronic mall.

3.  Can be converted in to proxima when needed for theatre like experience (actual Home Theatre). Following are the few key expectations of the consumers from the product : 1.  Good Resolution. Quality Picture. by this survey I tried get insight of what consumer is expecting form the product in near future? What are the needs of the consumers? What future development do the consumer want in the product? If we study and try to understand what need the colour TV basically address then the question would be need for entertainment. Additional features:  Ergonomic view. for better sound quality.  Surround Sound  No of speakers. need to experience the LIFE by visual and hearing senses. new expectation. But is this all that a consumer want from the colour TV? Survey findings gave a total new insights about the consumers changing lifestyle patterns. creative demands and lot more possibility to bring the totally innovative products. . Quality Sound.  Screen at both the side !!! 2.  Big Screen. need for pleasure.want is the main key for any marketer. For this purpose .  3D Picture.  Natural sound reproduction.

Expectations from future product are more on this features.  Wire less connectivity.  Touch screen menu and remote control. computer.  Artificial intelligence. we will come to know that the preferences of the consumer had changed.  WI FI enabled device. compatible inter phase between various instrument.  Wireless communication.  User friendly interaction.  Additional features like inbuilt games. music system. 4.  Artificial intelligence (to change the program as per the mood of user). Techno savvy features:  Blue tooth connectivity with other devices such as mobile. Today consumer had become more demanding in terms of creative factors.  Less power consumption when in use.  Ready Set Top Box inside the TV. Now days consumers not only want entertainment but far more than that. Quality Sound are considered as the in built features in the product. Techno savvy had become need for time. Connectivity. In a glance at the features expected by the consumers.  USB connect. camcorder. music system. During interaction with consumers it was observed that Quality Picture. Those are no more product differentiation factors. camera. If we study the features required by the consumers then it is very much clear that they are more of .

in this. So. concept talks about what primary need those are fulfilled by the core product. USB connection. wire less connectivity are all in more hype.technology oriented. TOTAL PRODUCT CONCEPT Following is the diagram of total product concept. blue tooth. Connectivity. Then comes the augmented product. while developing the future products any organization should keep this thing in mind. Total product concept talks about the basic. core product. Followed by formal product. .

buy. and dispose of goods. which tells what all are the other benefits the product is offering which will attract consumer to buy the product. Ergonomic view Great resolution Wireless Big Screen connectivity Customer relationship management Big Screen Ready set top CORE Free installment box Product Picture clarity Any time help Inbuilt proxima Call centre Sound clarity Video out put Formal Less power Tube. use. ideas. services. The field of consumer Behaviorstudies how individuals. or experiences to satisfy their needs and desires. screen consumption Product type Warranty Screen at both Guarantee Colour The side Various TV brands Augmented No of channels Inbuilt games Product Gift vouchers Features offered Exchange offer Surround Audio out put Artificial intelligence Future sound Product O % finance Dealer reputation Natural sound Reproduction After sales service Blue tooth connectivity Touch screen menu 3 D view and remote User friendly control WI FI interactions CONSUMER BEHAVIOR The aim of marketing is to meet and satisfy target customers’ needs and wants. The consumer buyer . Then followed by the future product. groups. consumers idea or the expectations from the future product. and organizations select.

But the growth of companies and markets has removed many marketing managers from direct contact with customers.Behavioris the buying Behaviorof final consumer–individuals and households who buys goods and services for personal consumption. Increasingly. marketers must study their target customers’ wants. channels. They may respond to influences that change their mind at the last minute. product features. Understanding consumer Behaviorand “knowing customers” are never simple. They may not be in touch with their deeper motivations. prices. Customers may state their needs and wants but act otherwise. marketers could understand consumers through the daily experience of selling to them. and shopping and buying behavior: Studying consumers provides clues for developing new products. Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s characteristics and decision process lead to . perceptions. messages. A Model of Consumer Behavior At one time. preferences. and other marketing-mix elements. managers have had to rely on the 7 O’s framework for consumer research to answer the following key questions about any market: Who constitutes the market? Occupants What does the market buy? Objects Why does the market buy? Objectives Who participates in the buying? Organizations How does the market buy? Operations When does the market buy? Occasions Where does the market buy? Outlets The starting point for understanding buyer behavior is stimulus-response model shown below. Nevertheless.

Following figure presents a typology of consumer purchasing decisions based on two dimensions: • Extent of decision making . Consumer decision making is not a simple process. They must answer two questions: How do the buyer’s characteristics-cultural. and psychological-influence buying behavior? How does the buyer make purchasing decisions? Marketing Other stimuli Buyer’s Buyer’s decision Buyer’s stimuli characteristics process decision Product Economic Cultural Problem Product choice Price Technological Social Recognition Brand choice Place Political Personal Information search Dealer choice Promotion Cultural Psychological Evaluation Purchase Timing Decision Purchase amount Post Purchase Behavior TYPES OF CONSUMER PURCHASING DECISION : The process by which the consumers make purchasing decision must be understood in order to develop a strategic application. social. personal.certain purchase decisions. The Marketer’s task is to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the buyer’s purchase decisions. Deciding to buy a car is different than the deciding to buy a tooth paste.

High Involvement Low Involvement Purchase Decision Purchase Decision Decision Making Complex Decision Variety seeking (Information Search. only one brand) (Cigarettes. consideration of Making (Cereals) (Autos. • The degree of involvement in purchase. Electronics Appliances) brand alternatives) Habit (Little or no Information Inertia Search. Perfumes) Paper Towels) . consideration of Brand Loyalty (canned Vegetables.

Such a Brand loyalty is the result of repeated satisfaction and strong commitment to a particular brand. The first process is called as Complex decision making. durability. Consumers can base their decision on a cognitive process of information search and evaluation of brand alternatives. it takes place when involvement is high and decision making occurs. That is the degree of involvement and decision making depend more on the consumer’s attitude . In such a types of cases consumers have the time for active information search and process it in more details. little or no decision making may take place when consumer is satisfied with a particular brand and purchase it consistently. In such cases purchase is important for the consumers. High involvement purchase are those that are important to the consumers. and service.The first dimension represent a continuum from decision making to habit. Low involvement purchase are not important to consumer and risk involve is less. Also it should be noted that decision process are consumer specific rather than product specific. In such cases it worth consumer’s time and energy for information search. Decision making versus habit and low versus high involvement produces four types of consumer purchase processes. When choice is repetitive the consumers learns from the past experience and with little or no decision making buys the brand that is most satisfactory. social. They use this information to evaluate and consider the alternate brand by applying specific criteria such as economy. Such a purchases are closely tied to the consumers ego and self image and involve some financial. On the other hand. The second dimension depicts a continuum from high to low involvement product. Complex decision making will not occur every time the consumer purchase a brand. personal risk.

In some cases consumer may be involved with product and consider only one brand (refer fig). Even when decision making does take place. And consider . a high level of involvement does not always lead to complex decision making. Another might not give importance to these characteristics and switch brand in search of variety. generally. we will first consider the nature of the consumer involvement and then describe the nature of the consumer decision process. CONSUMER INVOLVEMENT AND COMPLEX DECISION MAKING: As seen earlier two conditions for complex decision making are • Decision process require extensive information processing. One consumer might be involved with the product because of some specific characteristics. • High degree of consumer involvement with the product. Therefore to understand the complex decision making. Also. Such a brand loyal consumers are satisfied with a brand based on repeat purchase and do not feel the need to engage in extensive information processing.toward the product than on the product’s characteristics. INVOLVEMENT AND INFORMATION PROCESSING : The reason that involvement is link to complex decision making is. higher level of involvement the greater the search for the information (refer fig ). involve consumers are likely to vary greatly in the extent of information processing. Such a information processing defines complex decision making.

alternative brand in the next purchase. Some may evaluate just few brands on one or more attribute. Where as enduring involvement is continues and is more permanent. The only choice may be model and option. This means that extent of information processing should be regarded as continuum from high to low and the degree of decision making should be regarded on a continuum from low to complex. Even when decision making takes place. Others may evaluate a larger no of brands on many attributes. involve consumers are Complex Decision Extensive Making Information processing High level of involvement Little or no Information processing Brand Loyalty likely to vary greatly in the extent of information processing. Both these are likely to result in the complex decision making. namely Situational involvement occurs only in specific situation and is temporary. There are two types of involvement with the products. .

In targeting the situational involvement more specific appeals to particular context of purchase will be made. • High priced product. Complex decision making will not occur if a decision must be made quickly. More information is sought and more brands are evaluated than in the other types of decision making situations. • Products associated with the performance risk. (medical products. automobiles) • Complex products ( Electronic gadgets. Certain facilitating conditions need to exist. Also consumers may not have time to devote to extensive information processing because of business and social obligations may have higher priority.A different approach is needed in targeting those with enduring versus situational involvement. COMPLEX DECISION MAKING : In complex decision making consumers evaluate brands in details and comprehensive manner. The most important is adequate time for extensive information search and processing. Second condition for complex decision making is the availability of adequate information to evaluate alternative brands. personal computers) • Products associated with ones ego. The nature of the product is not the only conditions for complex decision making. Conditions for complex decision making are as follows. Consumers some times . The deep seated nature of enduring involvement means that symbol and images are likely to used to connect the consumer with the product.

INFORMATION SEARCH. • Purchase decision. Clearly the buying process starts long before actual purchase and continues long after.delay in decision making because of insufficient and inaccurate information. the consumer may simply have heightened attention or may go into active information search.The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Marketer need to focus on the entire buying process rather than on just the purchase decision. • Information search. EVALUATION OF ALTERNATIVES . Decision making is delayed when there are too many products characteristics and features to consider. 1.The first stage of the buyer decision process in which the consumer recognizes a problem or need. 2. NEED RECOGNITION. 3. THE BUYER DECISION PROCESS The buyer decision process consist of Five Stages-: • Need recognition. The stage of the buyer decision process in which the consumer is aroused to search for more information. . • Evaluation of alternatives. and • Post purchase behaviour.

It is an on going process. PURCHASE DECISION. POST PURCHASE BEHAVIOUR-The stage of the buyer decision process in which the consumer take further action after purchase based their satisfaction or dissatisfaction. This process starts with need recognition and completes it’s loop with post purchase evaluation feedback to the consumer.The stage of the buyer decision process in which the consumer actually buys the product. 4. Consumers feedback may initiate the purchase decision of the other buyer. Hence it becomes very important for the company to make the entire experience of the buying a memorable one for . 5. Consumer Need Information Arousal Processing Feedback Post Brand Purchase purchase Evaluation Evaluation As seen in the above figure and as explained in the above points consumer buying Behavior is a five step process. It never stops even after the purchase is happened.

So. Consumers don’t mind doing a show room surveys. As the survey finding suggest. going through various news papers. Still for majority of the house hold buying a colour TV is a buying luxuries thing. it is a COMPLEX DECISION MAKING process. that he/she become self impose Brand ambassador for the product and endorse the product in the market. consumers involvement is very high. about the information processing. But is it so easy for any consumer to buy the product? How does the decision making happens in various products? Is it same complexities in all products? For colour TV as a product. Because in the buying process of the color TV purchasing. active search for information is also involved from Internet.V.05% consumers will take in to consideration the family members opinion.the consumer. In Indian context still the buying of colour T. Consumer him self . . family members all get involved in the entire process. Now. magazines. if we see the survey findings then it can be seen that consumer take in to account various factors such as . is considered as the high risk and high emotional and economical involvement procedure. many consumers would like to do lot of information processing from various information sources. Survey findings also suggest that 86. This clearly indicates that the there is high involvement of the family members.

Consumers used to be very much Brand loyal with the particular brand for years. Brand 8. But changing globalization and market environment is shifting the Consumer’s focus from being Brand Loyal. slowly Brand loyalty is getting diluted from this segment of the market. Now what does this means? Consumers are not very sure about their association with a particular Brand. Consumers are not very much sure about the decision. After sales service. MARKETING MIX . Gifts offered.Quality Features offered. Price Consumer takes in to account so many factors while evaluating the Product !!! It clearly shows how complex the decision making process is. Which was not the case earlier. slowly. If we see the survey findings for buying the same product or from same company to that matter. Probably Consumers want to try different Brand next time. Style Latest technology. Only 44. So.19 % consumers responded positively where as remaining things otherwise.

sales promotion. It includes list price.It is the amount of money the customer have to pay to obtain the product (CTV). quality.Marketing mix can be defined as the set of controllable tactical marketing tools – product. transportation. packaging. PRICE. personal. In case of color television it includes variety. various promotional activities are advertising. services that are offered along with the television. place. inventory. promotion-that the firm may blend to produce the response it wants in the target market. For most marketer cannot control such factors. allowances. price.Promotion means activities that communicate the merits of the product and persuade target consumer to buy it. assortments. locations. design feature. payment period. Channels.It includes company activities that make the product available to target consumers. logistics becomes the part of place PROMOTION. coverage. PRODUCT-Product means the goods and services combination the company offers to the target market. credit terms. and psychological characteristics. FACTORS AFFECTING CONSUMER BEHAVIOR Consumer purchases are influenced strongly by cultural. but they must take them into account. brand name. . PLACE. social. discount. personal selling. public relations.

wife. o Family. family and social roles and status o Group. (b) SOCIAL FACTORS A consumer’s behavior is influenced by social factors. (a) CULTURAL FACTORS Cultural factors exert the broadest and deepest influence on the consumer behavior the marketer needs to understand the role played by the buyer’s culture. wants and behavior learned by the member of the society from family and other important institutions. Status reflect the general esteem given to it by the society. • Culture.a group of people with shared values system based on common life experiences and situations. • Social class. interests. subculture. such as the consumer’s small group.Two or more people who interact to accomplish individual or mutual goals. perception.the set of basic values. and behavior. people often choose the products that show their status in the society. (c) PERSONAL FACTOR .The family members (husband. and social class.relatively permanent and division in a society house members share a similar values.Role consist of the activities people are expected to perform according to the persons around them. children) can strongly influence buyer behavior o Role and Status. • Subculture.

o Age and Life cycle stage. lifestyle . and interpret information to form a meaningful picture of the world.A person’s pattern of living as expressed in his/her activities. interest. and opinion. (iii) Learning. (d) PSYCHOLOGICAL FACTORS A person’s buying choices are influenced by four major psychological factors: motivation. A buyer decision also are influenced by personal characteristics such as the buyer’s age life style. o Family life cycle.  Occupation – A person’s occupation also affect the goods and services they bought  Life Style. and life cycle stage.the stages through which families might pass as they mature over time.  Personality-A person’s distinguishing psychological characterstics that lead to relatively consistent and lasting responses to his or her own environment. (i) Motivation. . organize.The process by which people select.Changes in the individual’s behavior arising from experience. learning. (ii) Perception.economic situation . and beliefs and attitudes. People change the goods and services they buy over their lifetime. Tastes of the people undergo change with their age. perception.A need that is sufficiently pressing to direct the person to seek satisfaction of the need. occupation . and personality and self concept.

and tendencies towards an object or idea. For most of the consumers LG is having maximum recall value.Belief is a descriptive thought a person hold about something. feelings. LG India had out performed in all segment of consumer durable and consumer electronic market. L India was studied for the understanding of the success of the leader. . Attitude is a person’s consistently favorable or unfavorable evaluation. FOLLOWING THE MARKET LEADER During the entire Survey and study one thing was observed that even after being the late entry in the market and being a MNC.(iv) Beliefs and Attitude. Hence in the ending up sessions of the project.

discounts.TODAY Consumer durables sector is characterized by the emergence of MNCs. MNC's major target is the growing middle class of India. MNCs offer superior technology to the consumers. exchange offers. The market share of MNCs in consumer durables sector is 65%. LG. SAMSUNG the two Korean companies has been . and intense competition.

is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development. have divided the introduction part into three main sub parts. .500 crore and market share of 26 per cent. TVs. LG Global 2. having a turnover of Rs 9. besides launching new platforms in information technology and related areas.maintaining the lead in the industries with LG being leader in almost all the categories. refrigerators. 1. LG India 3. Before briefing. and air conditioners. The company. LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. LG History of company: The company was originally established in 1958 as Gold Star. producing radios. washing machines.

1958-1969-GoldStar The Electronics Industry Dream .

1970-79 GoldStar symbol of The Technolgoy 1980-88 :.INTERNATIONALIZATION 1989-94 INOVATION .

1995-98 GLOBAL LEADERS LG ELECTRONICS 1999-2003-DIGITAL MANAGEMENT .

2004-2006 GREAT PEOPLE GREAT DESIGN 2007-THE PEOPLE COMPANY .

from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. LG Powercom 5. and acquired Zenith Electronics of the United States. LG Chemical 3.000 executive and employees. As a result.The LG Group was a merger of two Korean companies. In 1995. household products were sold under the Brand name of Lucky.Philips LCD 2. Before the corporate Name change to LG. Global Operation: LG Electronics is playing an active role in the world market with its assertive global business policy. LG. Lucky and Gold Star. Gold Star was renamed LG Electronics. LG Twins . The Gold Star brand is still perceived as a discount brand. LG Electronics controls 110 local subsidiaries in the world with around 82. while electronic products were sold under the brand name of Gold Star. LG Group 1. LG Telecom 4.

c) Microwave Ovens. g) USB Memory. f) Home Net. c) Micro Display Panel TVs. e) PDP Modules. (d) Cellular Phones Digital appliance a) Air Conditioners. f) OLED Panels. . (b)GSM Handsets. g) Compressors for Air Conditioners and Refrigerators Digital display a) Plasma TVs. b) DVD Recorders. b) LCD TVs. e) Vacuum Cleaners. (c) 3G Handsets. b) Refrigerators.6. d) Washing Machines. d) Monitors. h) Flat Panel Computer Monitors Digital media a) Home Theater Systems. LG Dacom Business areas and main products Mobile communications (a) CDMA Handsets.

Fast growth” CORE COMPETENCY “Product leadership. f) Desktop PCs. j) New Karaoke Systems. e) Notebook PCs. i) MP3 Players. h) PDA Phones. k) Car Infotainment VISION Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company GROWTH STRATEGY “Fast innovation. d) CD±RW. People leadership” .c) Super Multi DVD Rewriters. Market leadership. g) PDAs.

The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe. "Life's Good" set in Charlotte sans typeface curved around the LG symbol. seal. Fun workplace SLOGAN "Life's Good" represents LG's determination to provide delightfully smart products that will make your life good. CORPORATE CULTURE No excuse. and the slogan. The curving of the slogan reinforces LG's personality and uniqueness. “we” not “I”. . The LG Electronics Life's Good signature consists of the LG logo.

The symbol consists of two elements. Promises. The stylized image of human face in the unique LG red color. Benefits . The letter “L” and “G” in a circle symbolizes world. It also represents LG’s efforts to keep close relationship with our customers around the world. LG philosophy is based on humanity. Focused & Confident”. THE SYMBOL The symbol of LG is the face of future. The one eye on the symbol represents “Goal-oriented. The stylized image of a smiling face in the symbol conveys “Friendliness and Approachability”. It expresses“ Brand’s Value . Personality . youth. The circle symbolizes The Globe. future. . Red color represents friendliness and gives a strong impression of LG’s commitment to deliver the best. 1. The logo in LG gray 2. The slogan of LG is “Life’s Good”. humanity & technology.

This culture is necessary for LG Electronics as it strives to become one of the world's top companies. Such a relationship is transformed into a value- creation relationship whereby both parties endeavor to address mutual problems and create new values together. . STRATEGIC ALLIANCE LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies. "Strategic association between corporations. but in a horizontal one. This illustrates that management and workers are not in a vertical relationship. THE PARTNERSHIP LG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship. is of key significance in terms of strengthening the existing industry and creating a new one. LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies." in which companies with different infrastructures cooperate in the fast-developing 21st century business field.

while developing new technologies and business fields through various associations with some of the world's most successful companies. TOYOTA 6.RENESAS 15.BESTBUY .HITACHI 13. 1. YAHOO 4.NORTEL 12.INTEL 11. 3M 2. GE 10. SUN 3. MICROSOFT 7.PRADA 14.TOSHIBA 16. PHILLIPS 5. HP 8. GOOGLE 9.LG Electronics will do its best to create new products and services with an open mind.

The brand platform:- The LG brand is composed of four basic elements – 1. LG strives to enhance the customer’s life and lifestyle with intelligent features. Personality . email. 2007 LG Electronics and Yahoo formed a strategic alliance. In Mar. and blogs). Yahoo mobile services will be available from LG mobile. Benefits 4. market. Promise 3. Value 2.. institutive functionality and exceptional performance. Both companies will work together to release. This service is targeting 10 million LG mobile phones in over 70 countries.And the number follows many more…………………………. and offer LG mobile phones with Google services (search engine. LG BRAND IDENTITY:- The brand of LG is delightfully smart. 2007 LG Electronics and Google formed a strategic alliance. In Feb. map.

The Brands core Value that never changes.
a. Trust,

b. Innovation,

c. People

d. Passion

The benefits that are consistently delivered to the customer includes

a) Reliable products

b) Simple design

c) Ease of use

d) Extraordinary Experience

Personality describes the human characteristic that are expressed to the
customer through

Trustworthy, Considerate
Practical, Friendly

The Internal Culture of LG:

LG practices four cultures

1. Learning Culture

2. Boundary less Environment

3. A Carrier

4. Growth

According to LG, the Learning Culture continuously helps the employee to
learn more and more to develop the habit of continuous learning.

Boundary less Environment means that there is no difference between the
levels of employees. There is transparency between the work and mutual
understanding between all the employees.

A carrier is highly growing in LG and one who is the employee can develop
their carrier largely. 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.

Growth in LG is very high for those who are in the company and for those
who want to join in LG. The company is growing with fast innovation and
the BLUE Ocean strategy is one of the examples of growth.

Mission

The mission of LG is to provide the customers with utmost satisfaction
through leadership. The fundamental policy of development is to secure
product leadership that the Customers may have the utmost satisfaction.

Product Leadership
We are focusing on six development areas to become the product leader.

1. New Machine

2. Reliability

3. Conventional Installation

4. Environment Friendly Product

5. Low Noise & Vibration

6. Energy Saving

From top to bottom: No. LG proceeds in a hierarchal manner. It is named as “LG WAY”.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. Quality Innovation The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.

Responsibility and obligations to customers : • Respect for Customers • Creating Value • Providing Value . c) Equal opportunities d) Equal Treatment Management Principle .Creating value for customer Code of conduct of LG 1.A) Honest with our customer b) Providing great values to customer through constant innovation & and development.

Fair Transaction : • Equal Opportunity • Fair Transaction Procedure • Support and Aid for Business Partners 4.2. Fair competition • Pursuit of Free Competition • Compliance with Laws and Regulations 3. Corporate Responsibilities to employees • Respect for human dignity • Fair Treatment • Promoting Creativity . Basic Ethics for Employees • Basic Ethics • Completion of Duty • Self Development • Fairness in Performance • Avoidance of conflict with company interest 5.

LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. near Delhi. India. LG set up a state-of- the art manufacturing facility at Greater Noida. a wholly owned subsidiary of LG Electronics. Air-Conditioners and Microwave Ovens. Kasna Road. Brand shops will be placed in the . with an investment of Rs 500 Crores. of which 45 are shops and 38 are exclusive stores.51. This facility manufactured Color Televisions. in 1998. Washing Machines. 6. ''Company is setting up a chain of exclusive premium showrooms. At present. LG has a total of 83 LG stores across the country. LG corporate office is located at Plot no. Responsibilities to society and country • Rational Business Development • Protection of stock holder interest • Contribution to social development • Environmental Conservation LG INDIA LG Electronics India Pvt. Udyog Vihar. Ltd. Greater Noida. South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)..

company will roll out a new marketing strategy. Moon . a strong work culture and loyalty to the organization. LG Electronics is continually providing. consumer durables leader with 27% market share. LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea.premium segment and the target audience will comprise buyers interested in premium and high end products. Motivated by a passion for technology. and computer peripherals industry today. we are determined to see LG become one of the top three brands globally. LG Electronics India Ltd (LGEIL). superior technology products & value for money to more than 50 lakh households in India. digital video broadcast and biometrics software and support LG Electronics with our expertise. LG Electronics India is the fastest growing company in the consumer electronics. home appliances. Prominent consumer electronic company. To attract inspirational and young consumers across India. The exercise will cost the company Rs 360 crore. LG Electronics Inc. We at LGSI focus on niche technology areas such as mobile application development. has said that it expects the sale of its products in India to up by 15 per cent in 2008. 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. is planning a brand new image.

India churns out six (6) per cent of LG Electronics global revenues of $42 billion. the sales in 2008 would be around 110 billion rupees. The said money will be used to market as well as manufacture new products. Price sensitiveness of the Indian consumer . 5.Bum Shin.4 billion) in 2007. air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2. Compitition from local market players and other MNCs in consumer durable segment. LG Electronics. which is originally a South Korean Company with branch in India. In order to achieve its target. color televisions. 2. Low brand awareness about LG in India. managing director of LG Electronics India has said that the company has earmarked 4. informed that its sales of GSM mobile phones. 3. Panasonic entered in 1995 in India). As per Shin's estimate. The Indian branch of LG exports to 40 countries. India challenges The challenges faced by LG when entered in Indian market 1. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year.8 billion rupees for investment purpose in India. High import duty 4. One of the last MNCs entered in India (Samsung.

. LG has differentiated its product using technology and health benefits. LG invested more then US$ 8 million on advertising and marketing in this sport. 2.LGEI over comes these challenges to emerge as Innovative marketing strategy 1. LG was the first brand to enter in cricket in big way. 3. a way by sponsoring the 1999 world cup followed it up in 2003 as well. 4. Launch new technologies in consumer electronic and home appliances. CTV has “Golden eye technology” Air conditioner has “Health air system” and microwave ovens have the “Health wave system”. LG brought in four captains of the Indian cricket team to endorse its products.

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 . Regional channel and wide distribution network 1. 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. All the distributers work directly with the company. LG also follows the stock rotation policy rather then dumping stock on channel partners. R&D potential LG has the research and development facilities in Bangalore and Pune. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. LG has adopted the regional distribution channel in India. 2. This has helped LGEI to reduce cost. This has resulted in quicker rotation of the stock and better penetration into B. class market. D. . C. 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.

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

CRM and IT-enabled services for LG. Update market -knowledge –Demographics 5. Customer is the king 7. . Strategies adopted by the organization: LG follows 10 commandments which are as follows. Leveraging India’s IT advantage .6.Display share of 50% -to get 50% consumer share. Transparent and fast communication-open communication 4. Even Billing –Road to ach supplier A 8.LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). 9. Plan and Execute annual marketing Calendar-Time to market 10. Fast execution is key to success 3. Foster working environment-5S Environment 2. 30% Office). Win –Win relationship with the trade partners 6. 1. SCM. Be in touch with the market (70% Market. The project involves development and support for ERP.

LG market share of consumer appliances and consumer electronic:- LG position of CTV in various states in INDIA LG position of REF in various states in INDIA LG position of washing machine in various states in INDIA .

LG position of AC in various states in INDIA LG position of Audio & Home Theatre in various states INDIA .

has said that it expects the sale of its products in India to up by 15 per cent in 2008. This analysis represents the LG market position during the period of March 2008. managing director of LG Electronics India has said that the company has earmarked 4. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable.8 billion rupees for investment purpose in India this year. Prominent consumer electronic company. The said money will be . It shows that LG has captured maximum market share almost in every category. Moon Bum Shin. We selected different brand in different category as per the market share and the demand of product in market. LG Electronics Inc.LG position of DVD 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.

color televisions. the sales in 2008 would be around 110 billion rupees. This plant manufactures all product including DVD writers and GSM mobiles. As per Shin's estimate. Thus it became first company to manufacture DVD writers in India. air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2. informed that its sales of GSM mobile phones. It is located in J. India. Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007. 2004 -. catering to the Middle East and African markets. October 6. In 2004 LGEIL opened second factory which is located in Ranjangaon. LG India will become the export hub for LG Worldwide. The company aims to touch an export turnover of $3 billion by 2010 from India. LG Electronics. which will contribute to 30 per cent of the Indian arm's turnover. India churns out six (6) per cent of LG Electronics global revenues of $42 billion.LGE announced 3 growth strategies aimed at the 1.1 billion people of India making the Indian market the second largest global production base .used to market as well as manufacture new products. LG PUNE LG Pune is the branch office of LGEIL. The ODP plant aims to reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010. . The Indian branch of LG exports to 40 countries.4 billion) in 2007. Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. In order to achieve its target.M Road.

200 square meters and is currently equipped with a production line to manufacture 600. and the company expands it to become a global GSM handset production base with a capacity of an annual 10 million units by 2010. monitors. Specifically. The three strategies for the Indian market that the global electronics giant disclosed included: penetrate the south-western market of India through the new plant near Mumbai.500 by 2007. Middle East and Africa markets by 2007. another US$43 million in establishing the GSM line. LG Electronics’ second new plant in Pune. striving to develop premium products and export 30% of India-manufactured products to Asia. and expand the current 750 R&D staff in India to 1. while operating its plants in Changwon and Gumi. LG Electronics will invest a total of US$150 million in establishing facilities and boosting R&D efforts in India by 2007. In connection with its three growth strategies for the Indian market.following China. and US$54 million in securing R&D manpower and boosting other efforts. Through these strategies. The company is set to add production lines of air conditioners. India covers a total area of 211. 10 times that of 2004. in addition to the existing northern plant. installs a new GSM handset production line in the new plant and use it as its second-largest global GSM handset production line after the Qingdao plant in China. Under this strategy LGE has projected 2007 revenues in India will exceed US$10 billion. Korea. the second largest city in India. The GSM handset line envisages a capacity of manufacturing 2 million handsets annually. it will invest US$53 million in the second plant. LG Electronics is poised to install a GSM handset production line in the new plant by early next year. and electronic ovens. washing machines. LG Electronics aims to penetrate the global market by using China and India as its core production bases.000 TVs and one million refrigerators a year. as its main production . Also. by 2005.

For the marketing of the products a number of activities are followed: 1. 5. This way. They have LG exclusive shops. the company is pushing to penetrate the global home appliance market. The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of the domestic markets. Hoarding. 4. . Discount at festival time.5 lakh units a year in the near future. Posters.bases. banners are used so as to grab the attention of the costumers. Society and college activities are conducted. Distribution and Marketing: The company has number of dealers and warehouses. Exhibitions are conducted from time to time. The plant in addition to its current manufacturing facility at Greater Noida will enable the company to enhance its consumer reach and reiterate it’s commitment towards providing superior technology products to the India consumer. LG plans to upscale its operations to a figure of 2. Day to day advertisement in leading newspaper. 3. 2.

and people. The operating responsibility of logistics is the geographical repositioning of raw materials. information. inventory. It involves the integration of information. 10. from the source of production to the marketplace. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product. services. LG divide dealer in gold silver etc. and other resources like products. category to know the performance of the dealers. The logistics (Supply Chain Management):- Logistics is the art and science of managing and controlling the flow of goods. transportation. work in process. 9. warehousing. energy. material handling.6.Also provide capon and scratch card for festive season. LG also uses the radio FM for the promotion activities. 8. For dealer relationship they arrange dealer meeting at several time in the year 7. . and packaging. and finished inventories where required at the lowest cost possible. It is difficult to accomplish any marketing or manufacturing without logistical support.

Logistics Management is that part of the supply chain. Brand Equity fanned out to MNC as well as Indian consumer durable companies. 5R’s of Logistic followed by LG: 1. 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. after sales service is. the pits. Right Cost 5. analysts and market researchers to get feel of what’s really keeping after sales from being used . for want of a better description. stockiest and dealers. Right Condition 4. services and related information between the point of origin and the point of consumption in order to meet customers' requirements. Right Place 3. effective forward and reverse flow and storage of goods. which plans. so critical for its success and so taken for granted in developed markets! In India. implements and controls the efficient. Right Handling 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. Right Time 2.

But LG has taken some solid steps towards improving customer’s perception and experience of after sales service. speed of response. LG also had a big problem of after sale service in India. labor costs. retailer. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint. Y V Verma. items included/excluded. There is a huge need of trained manpower for the after sales service to align with the company's . but increasingly two or more year’s maintenance and/or replacement policy. after-sales service might include additional training or helpdesk availability. after-sales service can be almost as important as the initial purchase. The manufacturer. The company aims to recruit 10. In the case of a service provider. LG Electronics said. So it becomes the big issue. This will include the duration of the warranty traditionally one year from the date of purchase. director HR and management system. and speed of response. In some cases. and action taken.as a cutting edge marketing tool in pushing products across categories.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 the region were not ready to sell LG product. or service provider determines what is included in any warranty (or guarantee) package. Customers support following the purchase of a product or service. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. Customers as well as dealer were facing the problem of after sales service. Because it very important in competitive market to provide the best service. "The Company was trying to find a solution for effective after sales service since last two years. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI.

If the next convenient day for . 3. it shows the company is ready to put our money where our mouth is." 4. and Karnataka and is in the last leg of signing with Uttar Pradesh. 7. The company has introduced a 211 service . LG has the widest service network across the country.expansion and focus on the GSM mobiles and the personal computer segments. with 1200 service centers. L G Electronics. This shows commitment that Service must be made into a marketing differentiator. Delhi. Punjab. 5. Gujarat.once you register your complaint. 6. Assam. In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra. 2. has already recruited 300 students and plans to beef up the number to 10. some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. 8. (as mentioned in Dermot’s public interview in ET). The company will invest Rs 8 crore (Rs 80 million) in employee development program this year with an aim to attain a 8 per cent attrition rate. set up an appointment for the next convenient day for you (hence the first 1). At the top. and show up in the promised 1-hour slot (hence the second 1). 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. "The company has offered a scholarship to the selected students for the last six months of their training program. we will call you back in 2 hours (hence 2). and leveraged thus." 1. the Service Division in Korea reports to the Global CMO. While the sale size may also be a nice multiple from nearest.000 by the year-end.

10. both of which revolve around prompt response. 2. (Service in India generally works through authorized service centers. 4. 3. and can even contribute as a revenue center. probably the first time after sales service is being communicated in this fashion by any product company. and thus not leveraging any mileage from it. 9. knows things better. The company is promoting 211 through ATL. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters.The first LG-owned service centre opened in Gurgaon. A big LG showroom should have at least 2 such kind of person. LG should improve it’s after sale service because its hits badly LGs market share. It’s a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities. that’s great too. More detailed customaries service is to be provided.) A company-owned service centre tries that much harder.you is the next day. The training to in shop demonstration should be given at frequent time interval and feed back should be considered positively. The company should look into the matter of person hiring for in shop demonstration. RECOMMENDATIONS AND SUGGESTIONS 1. in LG’s case they work exclusively for LG. .

8. LIMITATIONS Every study has certain limitations. 10. . So company should always improve services and update their technology. it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung. This was biggest drawback of my study. The marketing managers should make better relations with dealers and reputation of the company. 9. The switching of customer from LG product to other brand is due to the bed after sell service in shop. 1. Customer considers quality as their first preference. so the company should give more stress on this. 7. 5. In my study. also there were certain limitations. which affected the perception of the customer. LG should try new dealer who have the potential. My research work period witness the ups and downs in product sale of different brands. 2. So they can target more market. The research was conducted in a small area. which I could not able to solve. As there is a bottle neck competition between Samsung and LG.The product is well aware and it is on top of mind of customer. 6.

5. consumers buying Behavior could not be studied in great details while actual buying.com  www. Rural area coverage was limited due to the consumers passiveness towards the survey. The sample size is also very which represent my research on consumer behavior.wikipedia.lgindia. 4. 3. Due to passiveness and Geographic limitations of showroom owners. Showroom owners is highly appreciable.com  www. Never the less whatever support I have got from consumers. BIBLIOGRAPHY  www.com  Business world .google. survey respondent.

. Navi Mumbai). Business today  Economics times News paper  Times of India  “ Consumer Behavior and Marketing Action” … by Henry Assael  Show Room Survey: o Vijay Sales ( Karghar. Navi Mumbai) o Shri Shakti Electronics ( Dhule). o Madhu Electronics (Nasik). o Kings Electronics ( Kharghar.