CHAPTER-I

INTRODUCTION

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 INTRODUCTION
CUSTOMER SATISFACTION:

Satisfaction is the level of a person’s felt state resulting from comparing a

product’s performance in relation to the person’s expectations.
The satisfaction level is a function of the difference between perceived
performance and expectations. A customer could experience one of three broad levels of
satisfactions. If the performance falls short of expectation, the customer is dissatisfied. If
the performance matches the expectations, the customer is satisfied. If the performance
exceeds expectations, the customer is highly satisfied, pleased, or delighted.
Companies are aiming high because customers who are just satisfied will still
find it easy to switch suppliers when a better offer comes along. In one consumer
packaged-goods category, 44% of those reporting satisfaction subsequently switched
brands. Those who are highly satisfied are much less ready to switch. One study showed
that 75% of Toyota buyers were highly satisfied and about 75% said they intended to buy
a Toyota again. The fact is that high satisfaction or delight creates and emotional affinity
with the brand, not just a rational preference, and this creates high customer loyalty.

The challenge is to create a company culture such that everyone within the
company aims to delight the customer. Unisys, the computer company, recently
introduced the term “ customize” in its ads, and defined it as follows : “ To make a
company more responsive to its customers and better able to attract new ones.” Unisys
sees this as a matter of extending information’s system capabilities to field locations and
other points of customer contact and support. But “customizing” a company calls for
more than providing good information to customer contact employees. The company’s
staff must be “converted” to practicing a strong customer orientation. Company’s staff
must be “converted” to practicing a strong customer orientation. Anita Roddick, founder

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of the Body Shop, wisely observes : “ Our people ( employees) are my first line of
customers.

Companies seeking to win to today’s markets must track their customer’s

expectations, perceived company performance, and customer satisfaction. They need to
monitor this for their competitors as well. Consider the following.
For customer-centered companies, customer satisfaction is both a goal and a
marketing tool. Companies that achieve high customer satisfaction ratings make sure that
their target market knows it.
Although the customer-centered firm seeks to create high customer satisfaction, it
is not out to maximize customer satisfaction. First, the company can increase customer
satisfaction by lowering its price or increasing its services, but this may result in lower
profits. Second, the company might be able to increase its profitability in other ways,
such as by improving its manufacturing or investing more in R & D. Third, the company
has many stakeholders including employees, dealers, suppliers, and stockholders.
Spending more to increase customer satisfaction would divert funds from increasing the
satisfaction of other “ partners” Ultimately, the company must operate on the philosophy
that it is trying to deliver a high level of customer satisfaction subject to delivering at
least acceptable levels of satisfaction to the other stakeholders within the constraints of
its total resources.

IMPORTANCE OF THE CUSTOMER SATISFACTION

Company’s primary task is “ to crate customers” But today’s customers face a
vast array of product and brand choices, prices and suppliers. How do customers make
their choices.
We believe that customers estimate which offer will deliver the most value.
Customers are value- maximizes, within the bounds of search costs and limited
knowledge, mobility, and income. They form and expectation of value and act on it. Then
they learn whether the offer lived up to the value expectation and this affects their
satisfaction and their repurchase probability.
CUSTOMER VALUE:

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 Customer delivered value is the difference between total customer value and total
customer cost. And total customer value is the bundle of benefits customers expects from
a given product or service.

COMPLAINT AND SUGGESTION SYSTEMS:

A customer – centered organization would make it easy for its customer to deliver
suggestions and complaints. Many restaurants and hotels provide forms for guests to
report their like and dislikes. A hospital could place suggestion boxes in the corridors,
supply comment bikes ads to existing patients, and hire a patient advocate to handle
patient grievances. Some customer-centered companies- P & G, general Electric,
Whirlpool-establish “ customer hot lines” to maximize the ease with which customers can
inquire, make suggestions or complain.

CUSTOMER SATISFACTION SURVEYS:

A company must not conclude that it can get a full picture of customer
satisfaction and is satisfaction by simply running a complaint and suggestion system.
Studies show that customers are dissatisfied with one out of every four purchases and less
than 5% of dissatisfied customers will complain. Customers may feel that their
complaints are minor, or that they will be made to feel stupid, or that no remedy will be
offered. Most customers will buy less or switch suppliers rather than complain. The result
is that the company has needlessly lost customers.
GHOST SHOPPING:
Another useful way to gather a picture of customer satisfaction is to hire persons
to pose as potential buyers to report their findings on strong and weak points they
experienced in buying the company’s and competitor’s products. These ghost shoppers
can even pose certain problems to test whether the company’s sales personnel handle the
situation well.
LOST CUSTOMER ANALYSIS:
Companies should contact customers who have stopped buying or who have
switched to another supplier to learn why this happened. When IBM losses a customer,

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they mount a thorough effort to learn where they failed- is their price too high, their
service deficient, their products unreliable, and so on. Not only is it important to conduct
exist interviews but also to monitor the customer loss rate, which if it is increasing,
clearly indicates that the company is failing to satisfy its customers.

SOME CAUTIONS IN MEASURING CUSTOMERS SATISFACTION:

When customers rate their satisfaction with an element of the company’s performance,
say delivery, we need to recognize that customers will vary in how they define good
delivery. It could mean early delivery, on-time delivery, order competence’s, and so on.
Yet if the company had to spell our every element in detail, customers would face a huge
questionnaire. We must also recognize that two customers can report being “ highly
satisfied” for different reasons. One may be easily satisfied most of the time and the other
might he hared to pleasure but was pleased on this occasion.

OBSERVATIONS ON CUSTOMER SATISFACTION:

Customer satisfaction will be lower in industries where the industry offers a
homogeneous product to a heterogeneous market. On the other hand, industries that
supply a high- quality homogeneous product to a homogeneous market will register high
satisfaction.
Customer satisfaction is lower in industries where repeat buyers face high
switching costs. They have to buy from the supplier even though their satisfaction is low.
Industries which depend upon repeat business generally create a higher level of
customer satisfaction.
As a company increases its market share, customer satisfaction can fall. This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogeneous product.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

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 Given the importance of customer value and satisfaction, what does it take to
produce and deliver it? To answer this, we need to introduce the concepts of a value
chain and value-delivery systems.
VALUE CHAIN:
New product realization process: all the activities involved in identifying,
researching, developing, and successfully laughing new products with speed, high
quality, and target cost attainment.
Inventory management process: all the activities involved in developing and
managing the right inventory locations of raw materials, semi finished materials, and
finished goods so that adequate supplies are available while avoiding the costs of high
overstocks.
Order-to-remittance process: all the activities involved in receiving orders,
approving them, shipping the goods on time, and collecting payment.
Customer service process : all the activities involved in receiving orders,
approving them, shipping the goods on time, and collecting payment.
Customer service process: all the activities involved in making it easy for
customers to reach the right parties within the company and receive quick and
satisfactory service, answers, and resolutions of problems.

RETAINING CUSTOMERS:
Companies are not only seeking to improve their relations with their partners in
the supply chain. Today they are intent on developing stronger bonds and loyalty with
their ultimate customers. In the past, many alternative suppliers were just as deficient in
quality and service, or the market was growing so facts that the company did not worry
about fully satisfying its customers. The company could lose 100 customers a week and
gain another 100 customers and a consider its sales to be satisfactory. But this is a
condition of high customer churn and it involves a higher cost than if the company
retained all 100 customers and acquired no new ones. Such a company is operating on a “
leaky bucket” theory of its business, namely that there will always be enough customers
to replace the defecting ones.

THE NEED FOR CUSTOMER RETENTION:

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 Today’s companies are going all out to retain customers. They are struck by the
fact that the cost of attracting a new customer may be five times the cost of keeping a
current customer happy. Offensive marketing typically costs more than defensive
marketing because it requires much effort and cost to induce satisfied customers to switch
away from their current suppliers.
The global BUSINESS ENVIRONMENT is buzzing with the single most
important issue of building a competitive edge by creating and retaining a larger number
of customers than their competitors by offering them the necessary satisfaction through
their services. Every organization is therefore seized of the task of establishing and
sustaining its growth to the customer who has been rendered unpredictable by
competition.

Therefore, every business is engaged in making a continuous effort for achieving

customer loyalty, which however, has not been achieved by any one in absolute terms.
But the customer is not compromising mood to relax in his pursuit of advantages and to
realize value for his money. Organizations are devoting their attention to prove their
customer worthiness.
In short, it is the total organizations culture and brand equity, which face
challenges of other organizations so that there is perennial struggle amongst organization
to sustain their existence in the market place.

Bharathi Communication, is such organization that is the authorized dealer of

Airtel in the city of Hyderabad, and the identification of the customer’s opinion lurking
behind on the dealer service, and has taken its significance.

The study is concerned primarily to know the customer opinion towards services
offered by Bharathi Communication and find out the basic reasons as to why customers
are feeling cognitive dissonance survey research method is adopted to collect primary
data from the respondents and due to time constraint only 100 respondents are randomly
selected from the city of Hyderabad. A predefined questionnaire is used as an instrument
in collecting information from the respondents. Various web sites related to the
Telecommunication industry is used for gathering secondary data.

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 The main findings of the study are, most of the respondent are suggesting the
brand Airtel but are dissatisfied with their Services on the factors like signal and other
services provided by the dealer. They are willingly to switch to other brands.
Respondents are satisfied with availability of schemes.
The various views from the respondents to improve the service in totality are
dealers has to run some HRD and technical programs for the staff to develop soft skill
and upgrade their technical skill sets according to the requirements. Dealers have to
frame strategies to target the employees. The dealer has to work as the ambassador of
Airtel.
The questionnaire used for collection of the data is predefined questionnaire, so
the intentions of respondents might not be clear. The study being restricted only to the
city of Hyderabad and the views drawn out of the study may not be applied to all the
geographical areas. All the views of the respondents cannot be drawn descriptively so the
views which arose from majority of the respondents are considered.

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OBJECTIVES OF THE STUDY

The study is undertaken to analyze the customer perception of the LGEIL with
respect to Television.

 To know the customer behaviour of LG Colour Television.

 To know the most influencing factors in decision making to purchase a
CTV’s
 To ascertain the customers level of satisfaction with the product of LGEIL
 To know the problems faced by the customer from the LG Colour
Television.
 To know the customer satisfaction with the sound system of LG Colour
Televisions.

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NEED OF THE STUDY
Organizations having be competitive environment with satisfaction of
customer and they are attracting the customer with some effective sale promotions. But
some organizations need to evaluate the purpose, utility, effectiveness of customer
satisfaction. They are fails to evaluate this customer satisfaction. So these study has
been undertaken to asses the customer satisfaction In the organization.

METHODOLOGY
Proper study is undertaken with the help of the primary data and secondary data
collected from people who having a colour Television and related companies dealers
and sales offices.

PRIMARY DATA:
Primary data is an evolution data, which do not exist prior to initiating an
evolution study.
The scheduled questionnaire was administered to a sample of 200 people who are
having colour Televisions and their responses have been collected personally for
analyzing the customer satisfaction of LGEIL Colour Televisions cities and villages.

SECONDARY DATA:
Secondary data is the data maintained by and organized for use in its normal cource
or operation and which can be used for evaluate purposes.
The data such as address of consumers who has purchased the colour Television
and other data from dealers of the brands.
For analyzing the classification and tabulation were used. And graphs were also
used.

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LIMITATOINS OF THE STUDY

1.The sample survey was not universal due to time and cost constraints.
2.As the duration of the study was only 45 days it was not possible to cover a large
sample size.
3.Only in Rangareddy district (Hyderabad, secundrabad) selected for the survey. This
sample may not be considered as the true study of the whole market.
4.Considering me as a representative of LG consumers did not disclose the negative of
LG consumers did not disclose the negative aspects of the product.

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 CHAPTER-II
REVIEW LITERATURE

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 REVIEW OF LITERATURE

Colour television constitutes the core of the LGEIL product portfolio in India/
The company drops to gain more than 20.9% market share in India in colour
television.

AUDIO VIDEO
The LG India product portfolio comprises of audio video and white good
products. The audio video range comprises of colour televisions audio systems and
video cd.

LG has different range of varieties in colour television. The vision plus se4ries
represent the break through in technology achieved by LG on home theater on the
individual room for CTV’S. And also provided by this company 14”, 21”, 29”
colour televisions are produced. And best competitor in the in the market place.
And also 21” colour television give a 22” viewing experience while a 29” colour
television give a 30” viewing experience.

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MARKETING STRATEGIES
To achieve the desired target, the companies have formulated various
marketing strategies to meet their specific targets. Each player may have a unique
set of strengths and weaknesses. The company will have to check different
marketing strategies based on a systemic study of the underlying opportunities in
the light of exiting strengths and barriers.

While some have concentrated on the price cutting brand building, some
have looked at improving distribution, Quality, perception, product
competitiveness etc., LG electronics rightly understood the consumer motivation to
create magnetic products, price them strategically position them sharply and keep
making the magnetism more potent. Having understood the finer differences in
consumer motivations it opted for sharp arrow ‘reasons to buy’ differentiation over
the ‘blanket- all approach’ taken by most of the other players LG’s strategy is to
make their dealers its partners. The company believes that its future lies in e-
commerce the objective is to have at least one million hits on their website in 2001
and develop 4000 internet dealers in FY2003 in additions to the exiting 3000
dealers nationwide. LG is the first company to offer consumers electronics on its
Webster; LG offers attractive online financing options. The company’s AD spent
has increased from Rs. 240mn (FY1997) to Rs.700mn year (FY2003) and this year
Rs. 800mn (FY2004). The companies to extend their reach.

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 RURAL MARKETING STRATEGIES

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

BUSINESS STRATEGY:

MARKETING:
Marketing strategies are largely shaped by number of factors that include:
 Penetration levels of products
 Position of market share of company
 Competitor’s strategies
 Changes in the consumer buying behavior
 Changes in consum4er perceived needs
 Changes in technology

A company used and highly successful marketing strategy is to make available to

consumers such products and services features that mark them as different from the
rest. LG strategy includes developing non-traditional channels of selling even while it
continues to strength then it retail sales net work.

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 Lg plans for F.y 2021 are :
The year 2021 witnessed LG becoming the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry. The company had till
the month of October 2021 achieved a cumulative turnover of Rs 5000 Crores in India
since its inception in 2021, making it the fastest ever Rs 5000 Crores clocked by any
company in the Indian consumer electronics and home appliances industry. Having
achieved this milestone, LG achieved another benchmark with the first ever sales of
One Lakh ACs (Windows and Splits) in a calendar year

LG’
s: Sport marketing and advertising

LG spiced out three new contests to create world cup excitement. In an initive aimed
at enhancing the consumer involvement with the brand LG during the world cup 2004
LG electronics India pvt.

In April. LG was the official supplier of consumer electronics and home appliances,
CD-ROM’s handheld PC’s and monitors for the world cup 2004, and ICC
championship trophy is also sponsored by LG. it also sponsored the recent ICC world
2004 in south Africa. And also recent India and Pakistan cricket matches also
sponsored by in this company.

2. Customers services:
LG electronics has decided to give a strong push to strengthing it service network.
It intends to increase the number of service points from 65 to 100. a string of consumer
promos like free service weeks. Annual maintenance plan, loyality programs, special
offers to previous buyers and honeymoon packages for newly wedded couples are in
the pipeline.

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3.PRICING:

With prices touching an all time low in FY 2021 and with new capacities coming up
the trend is expected to continue penetration pricing has been adopted by LG.The
strategy is to keep entry-level prices in order to active demand.

DISTRIBUTION:

The trend of beating industry norms started with the fastest ever-nationwide launch by
LG in a period of 4 and 1/2 months with the commencement of operations in May
1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi,
in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the
year 2002, LG also commenced the home production for its eco-friendly Refrigerators
and established its assembly line for its PC Monitors at its Greater Noida
manufacturing unit. The beginning of 2004 saw the roll out of the first locally
manufactured Direct Cool Refrigerator from the plant at Greater Noida.

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18
19
NanoCell TVs

UHD 4K TVs

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Smart TVs

LED TVs

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 Ultra Large TVs

QNED MiniLED TVs

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OLED evo

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Ultra HD TVs: From Big To Small

Ultra HD, or 4K, TVs make up a full two thirds of LG’s 2015 TV line-up. There’s 19 in
total, ranging from 43 to 98 inches and with varying levels of quality and integrated
features. Here’s a hint — look at the first two number of the TV’s model number to find
its screen size, while everything after that denotes where it sits in LG’s entire range.

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 CHAPTER-III
COMPANY PROFILE

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 COMPANY PROFILE
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 after clearance from the Foreign
Investment promotion Board 9FIPB). The tried of beating industry norms start4ed
with the fastest ever-nationwide launch buy LG in a period of 4 and by months
with the commencement of operations in may 1997. LG set up a state-of-the art
manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of
Rs 500 Cores. This facility manufactured colour Televisions, Washing Machines.
Air-conditioners and Microwave ovens. During the year 2002, LG also
commenced the

Home production for its eco-friendly Refrigerators and established its assembly
line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of
2004 will see roll out of the first locally manufactured Direct Cool Refrigerator
from the plant at Greater Noida.

The greater Noida manufacturing unit line has been designed with the
latest technology at par with international standards at Korea and is one of the most
Eco-friendly units amongst all LG manufacturing plants in the world.
LG has been able to craft out in five years, a premium brand positioning in the
Indian market and is today the most preferred brand in the segment

Various studies have shown that the consumer is well informed on the
health awareness front. LG was one if the first companies who recognized the
emerging change in consumer needs to differentiate their products on the basis of
technology which appealed to the consumer on the basis of health benefits. Its
vision was to become a ‘Health partner’ for its consumer worldwide and therefore
formulated its corporate philosophy to make people ‘lives better, conveniented and
healthier.

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 The CTV range offered by LG has ‘Golden eye’ technology; which senses
the light levels in the room and adjusts the picture to make it more comfortable for
the eyes. The entire range of LG air-conditioners have ‘Health Air System’, which
preserve the nutrition in food and washing machines have ‘Fabric are System’,
which takes the health factor down to ones clothes. All the products offered by the
company have unique technologies, developed by its R&D d4epartments that give
customers a healthier environment to live-in.

The year 2002 witnessed LG becoming the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry. The
company had till the month of October 2002 achieved a cumulativ4e turnover of
Rs 5000 Crores in India since its inception in 1997, making it the fastest ever Rs
5000 Crores clocked by any company in the Indian consumer electronics and
appliances industry. Having achieved this milestone, LG achieved another
benchmark with the first ever sales of One Lakh ACs (Windows and splits in a
calendar year. LG is poised to surpass its turnover target of Rs 2700 Crores this
year and clock a turnover of Rs 3000 Crores.

This year, LG has emerged as the leader in Colour Televisions having set the
sales target of one million units of color Television for 2003; LG has already
achieved the one million mark in the month ahead of its target.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances and computer peripherals industry today. LG
Electronics’ is continually providing superior technology products & value for
money to over 50 lakh households in India.

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LGEIL NO1 HOME ELECTRONICS IN INDIA

Armed with fully localized marketing activities and had been operated for only 3
years. LG surpassed all local. Well known Foreign brands as SONY and succeed ed in
securing leading positioning the market holding to the top market 5 share in four products
such as Refrigerators (37%), large volume washing machines (35%), hone air
Conditioners (35%), golden eye model color televisions (45%) and Has recorded us $ 228
million in local sales. An ordinary profit of US
$ 13 million.

LGEIL has also announced an accelerated thrust on IT line of Products for the year,
including monitors in India and note bookcase, LCD TV monitors and finger print
monitors etc. sales Contribution from IT line is expected to get doubled from current
10%To 20%.

FINANCIAL PERFORMANCE:

LG electronics achieved turnover of 19.03 billion for the year 2001 against
Rs.10.56 billion in the fiscal year of 1999. The company has also outlined an initial
target turnover of Rs 25 billion for 2002. The company has achieved a profit before tax
of Rs 750 million, up from Rs 570 million last year.

‘IT’ INITIATIVES FOR 2004:

LG electronics has achieve its targeted turnover of Rs 2 billion from its IT range of
products in 2001 and Rs 5 billion in 2002.

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Compared to an industry LGAR of 45%, LG has a growth of 100% over last year. It
may increase its market share in the PC monitor segment from 24% in 2001 to 31% in
2002.

% CONTRIBUTION BY PRODUCT CATEGORY TO TOTAL TURNOVER:

PRODUCT 2016 2017 2018 2019 2020 2021 2022

CATEGORY
Consumer electronics 40% 38% 37% 39% 40% 42% 39%
Home appliances 40% 39% 35% 42% 39% 42% 44%
IT port folio 20% 25% 30% 20% 30% 40% 45%

GLOBALISATION:
70% of its total revenues are from overseas. 54 subsidiaries carry out manufacturing.
Sales and marketing, R&D, customers servicing in key geographical sites all over the
world.

CREATING VALUE FOR THE CUSTOMERS

Our purpose is to create value for the customers in everything we do. In doing so,
LGEIL will naturally innovate and develop the products and services to meet our goals
of providing the outmost value for the customers.

CREATING VALUE FOR THE PEOPLE

LGEIL extends a warm hand to contribute to the world community to touch the hearts
of the customers, friends, shareholders employess, partner and subsidiaries at home and
abroad. We create value and help people realize their dreams of a better life.

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LGEIL-STATUS
Started in 1997
Factory Established in APRIL, 1998
GROWTH
2001: Rs 125 crores
2002: Rs 485 crores
2003: Rs 1056 crores
2004: Rs 1903 crores
2005: Rs 3000 crores
2006: Rs 4500 crores
2007: Rs 6500 crores
2008: Rs 7500 crores
2009: Rs 8300 crores
2010: Rs 8326 crores
2011: Rs 9012 crores

ORGANIZATION CHART:
LG electronics managing director-Mr. K.R. KIM (kwang-ro Kim)
Rajiv karwal-vice president (sales and marketing)

Mr. Ajay kapil has spent 7 years with gold star in several companies in marketing
and sales division. He was also a prominent member of the LG-birla joint venture
The LG electronics man of the year 1999, Ajay kapila. 36, has been with LGEIL
since its inception in 1997. He was an integral part in the development of the strategy
framework for LG electronics in India even before the company received its FIPB
approval. He began with lags the deputy general manager-sales and with in a very short
time. He moved on from being a sales manager to the vice president. Mr. kapila bring
with him 14 years of rich experience of which he has spent 10 years with the consumer
electronics and home appliances industry.

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Mr. yasho.v.verma- (voice president-HR)

Ganesh mahalingam- GM (marketing)

In his role at LG electronics India, mahalingam oversees all aspects of LG’s
marketing and efforts in India. He is responsible for the planning and development of
the marketing and promotion strategy for LGEIL across all product categories. He
brings with him extensive knowledge on communication management, product
management and direct marketing from his rich and varied experience of 19 years
across consumer durable FMCG, IT and the service industries.

Mr. Pradeep Tognatta-VP (sales and marketing)

Arindam Bose, Head-IT.

SALES AND MARKET SHARE:

 LG achieved CTV growth of 38 percent in the CTV segment for the year
2002 and has emerged amongst the top three CTV brands in the industry. It
has enhanced its market share in the CTV category from 8 percent last year
to 10 percent in the current year.
 In the air conditioner segment, LGis the market leader with 30 percent
share in the market. The company recorded a growth of 110 percent for the
year.
 LG is also the marked leader in the Microwave category, cocking a
growth of 114 percent for the said period
 In the frost free Refrigerator segment LG recorded a growth of 57 percent
over the last year while ion fully automatic washing machine segment, LG
recorded a growth of 72 percent.
 While the consumer electronics and home appliances industry growth rate
has been approximately 8-10 percent in 2002. LG electron has grown by a
phenomenal 80 percent.

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PRODUCTS RANGE AND MARKET SHARE COLOUR TV:

As per ASCON (Association council of confederation of Indian industry), 100 out of

125 industries surveyed posted moderate growth rate to high growth rate during FY
2002, while the consumer durable industry registered over 20% growth.

The sales of CTV from 1988 to 1999has increased from 1.3mn units to 4.4mn units
and the market share of LG CTV in comparing with other brands is 11% (FY 2001).

When first launched in India, did not get enthusiastic response. Because it’s not
Indian industry. Basically Korean industry in Korea But after one year sales is
increased and also best competitor to the market. In this LG co products to introducer
mainly electronic goods. In that special brand is CTV. In this company CTV is very
good features and also very good clarity, sound and so on.

REFRIGFERATOR:
As per ASCON (Association council of confederation of Indian industry), the
refrigerator production showed a 55 YOY while the exports during the said period grew
by 10% YOY.
The market share of LG refrigerators in comparing with other companies is 7%
(FY2002).

WASHING MACHINES:
As per ASCON (Association council of confederation of Indian industry), the washing
machine production for FY01 increased buy 2.5 while sales rose by 2%. The washing
machine market consists of two broad segments-semis automatic and fully automatic.

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 The market share of LG washing machines in comparing with other companies is
10 %( 1999).

MICROWOVENS:
The microwave oven market is in nascent stage of development in the
country. However with consumers in the past few months. And in consonance with the
demand supply theory. Prices have come down demand however, is likely to remain
confined to the urban segment of the population with the phenomenon of nuclear
families becoming a reality and with women moving out of their households in order to
augment their family income, a microwave comes in handy to share the burden of
household chores.
In terms of volumes, the market has grown to 111000 units in 2020 and is
expected grow to 1150000 units in the current year. Sales have shown robust growth in
the past two years with and estimated 29 percent spurt in sales recorded in 2020. The
microwave market is likely to grow to 1150000 units in the year 2003, out of total sales
only 70 percent are slated or domestic consumption.

LG CO. SALES AND MARKET SHARE COMPARE TO OTHERS

COMPANY SALES UNITS
MARKET SHARE
LG 23000
20.9%
SONY 21000
19.9&
ONIDA 20010
18.2%
SAMSUNG 20010
18.2%
AKAI 10000
9.1%
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OTHERS 16000
14.5%

It has planed to gold KG health wave’s scholarship in collaboration with

Delhi pusa institute of hotel management. it will award a scholarship.

DATA ANALYSIS AND

INTERPRETATION

34
35
 1. When asked about various brands of colour televisions that are in their mind the
replied in the following way. The results were given in the following table.

TABLE # 1
BRANDS RESPONDENTS PERCENTAGE
LG 34 56.66
BPL 8 13.33
SAMSUNG 11 18.33
ONIDA 6 10.33
OTHERS 1 1.66

60 100.00

INTERPRETATION:
It can be inferred from the above table that 56.66 percent respondent recall LG colour
televisions when asked to recall various brands of televisions. This is followed by
Samsung with 18.33% percent and BPL with 13.33 and it is followed by onida
With 10 percent and others with 1.66 percent.

36
GRAPH SHOWING VARIOUS BRAND PERFORMANCE
BY THE RESPONENTS

TABLE #1

60

50

40
RESPONDENTS%

RESPONDENTS
30
PERCENTAGE

20

10

0
LG BPL SAMSUNG ONIDA OTHERS
PRODUCTS

37
 2. when they were asked about do you like mostly like product in the LG company
products in the given table;

TABLE # 2
PRODUCTS RESPONDENT PERCENTAGE
TV 03 50.00
REFRIGIRATER 25 41.66
WASHING MACHINE 4 6.67
OVEN 1 1.66

60 100.00

INTERPRETATION;
We can conclude from the above the table that out of 60 represents 50 percent of people
likes TV;S and followed by refrigerator is 41.66 percent, washing machines are 6.67
percent and oven’s are used 1.66 percent people.

38
GRAPH SHOWING VARIOUS BRAND PERFORMANCE
BY THE RESPONCENTS

TABLE #2

60

50

40
RESPONDENTS(%)

30

20

10

0
TV REFRIGIRATER WASHING MACHINE OVEN
PRODUCTS

RESPONDENTS PERCENTAGE

39
 3. When they were asked about opinion on price of LG colour televisions. the
respondents are given in that opinion following table

TABLE # 3

OPENIONS RESPONDENTS PERCENTAGE

Very high 6 10.00
High 10 16.00
No difference 27 45.00
Low 17 28.33

60 100.00

INTERPRETATION:
The above table shows the opinion on price in that way many of the respondents (45%)
are told that no difference to other company televisions. And next followed by low
price (28.33) to compare to other company colour televisions.

40
GRAPH GIVING VARIOUS PRODUCTS OWNED BY THE
RESPONDENTS

TABLE #3

50

45

40

35
RESPONDENTS%

30

RESPONDENTS
25
PERCENTAGE

20

15

10

0
Very high High No difference low
PRODUCTS

41
 4. Factors to the survey the purchase of LG colour television set below table

TABLE # 4
Reasons respondents percentage
Model 14 23.33
Price 12 20.00
Publicity 7 11.66
features 27 45.00
60 100.00

INTERPRETATION;
According to the survey the main factor influencing to purchase of LG colour
television. And followed by model is 23.33 percentage, price is 20.00 percentage and
after that follows publicity is 11.33% as follows.

42
THE GRAPH SHOWING RESPONDENTS OPINION ON
PRICE BASIS

TABLE #4

50

45

40

35

30

RESPONDENTS
25
PERCENTAGE

20

15

10

0
Model Price Publicity features
REASONS

43
 5. When asked to opinion of the respondents to who is influenced to purchase this
brand given below table?

TABLE # 5
OPINION ON RESPONDENTS PERCENTAGE
Dealers 12 20.00
Friends 7 11.66
Relationships 6 10.00
Self interst 35 58.33
60 100.00

INTERPRETATION:
Those consumers who purchased LG CTV’s suggested that are self interest are 58.33
percent and then those consumers who are known as suggested by dealers are 20.00
percent and followed by friends and relations.

44
WHO INFLUENCED YOU TO PURCHASE THE LG
COLOUR TV

TABLE 3 5

70

60

50

40

30

20

10

0
Dealers Friends relatiopnships self interst

RESPONDENTS PERCENTAGE

45
 6.When they were asked about the purpose in this LG ctv going below

TABLE # 6
Opinion on respondents percentage
Entertainment 48 80.00
Education 3 5.00
Sports 9 15.00
Others 0 0.00
60 100.00

INTERPRETATION;

When they asked to the consumers to sell about opinions on the selecting only in this
brand. That are declared to many of the consumers are told that entertainment (80%) to
use. and follows sports (15%). Education (5%).

46
THE GRAPH SHOWING RESPONDENTS OPINION ON
PRICE BASIS

TABLE #6

90

80

70

60

50

40

30

20

10

0
Entertainment Education Sports Others

RESPONDENTS PERCENTAGE

47
7.How is LG colour television clarity and sound system compared to other. The
followed data is declared;

TABLE #7
Opinions respondents percentage
Very good 19 31.66
Good 36 60.00
Not so good 5 8.33

60 100.00

INTERPRETATION:
After purchase to the LG CTV opinions on also sound system to asked that compare to
other. The consumer are said above table is displayed. And many of the consumers are
good (60%). And following 31.66% members are told that system is very good (60%).
And following 31.66% members are told that system is very good. Some members are
not so good (8.33%)

48
FOLLOWING GRAPH SHOWING INFORMATION OF
OPINION ON CLARITY AND SOUND SYSTEM

TABLE #7

70

60

50

40

30

20

10

0
Very good Good Not so good

RESPONDENTS PERCENTAGE

49
8. What is the reason for choosing particularly of the brand? As follows

TABLE # 8
REASON RESPONDENTS PERCENTAGE
Quality 12 20.00
Price 12 20.00
Features 36 60.00
others 0 0.00
60 100.00

INTERPRETATION:
The above table displayed on particularly in this brand select as on many of the
consumers are tell about features is 60%. Quality. Price as 20% as on.

50
FOLLOWING GRAPH SHOWING INFORMATION
ON QUALITY PRICE FEATURE AND OTHERS

TABLE # 8

70

60

50

40

30

20

10

0
Quality Price Features others

RESPONDENTS PERCENTAGE

51
 9.Which particular media do you think is effectively spreading the television
market; as following table is display?

TABLE #9
OPINIONS RESPONDENTS PERCENTAGE
Electronics 26 43.33
Print media 22 36.33
Sales persons 8 13.33
dealers 4 6.66
60 100.00

INTERPRETATION;
The above table displays many of the consumers are said to use electronic media is
43.33%. And after print media is 36.66, after that used sales person and dealers.

52
FOLLOWING GRAPH SHOWING INFORMATION OF
OPINIONS RESPONDENTS AND PERCENTAGE

TABLE #9

50

45

40

35

30

25

20

15

10

0
Electronics Print media Sales persons dealers

RESPONDENTS PERCENTAGE

53
10.They were asked to say that when face any problem with the product. Whom do
they contact the following results were drawn.

TABLE #10
OPINION ON RESPONDENTS PERCENTAGE
Dealers 25 36.66
Service centers 38 63.33
60 100.00

INTERPRETATION;

By seeing the above table we can conclude that 36.66 percent of the people have meet
dealers when they faced problems with the product and 63.33 percent of people have
meet service centers when they faced problems.

54
IF YOU FACED ANY PROBLEMS WHOM DO YOU
CONTACT

TABLE # 10

70

60

50

40

30

20

10

0
Dealers Service centers

RESPONDENTS PERCENTAGE

55
 11.When collected the opinion to the consumers to ask how do you state in this LG
colour television set. As following below table

TABLE # 11
REASONS RESPONDENTS PERCENTAGE
Technically superior 34 56.66
Reliable 8 13.33
Value of money
18 30.00
60 100.00

INTERPRETATION;

By absorving the data collected from the 60 consumers of LG colour televisions

owners , we are coming to know that 56.66 percent of the consumers said technically
superior and remain consumers are value of money of money is 30% and reliable is
13.33 percent consumers.

56
STATEMENT ON LG COLOUR TELEVISION

TABLE # 11

60

50

40

30

20

10

0
Technically superior Reliable Value of money

RESPONDENTS PERCENTAGE

57
TABLE # 12
12.Recommendation of LG colour televisions to others; as follows;

OPINIONS RESPONDENTS PERCENTAGE

YES 48 80.00
NO 12 20.00
60 100.00

INTERPRETATION;
Survey reports reveals that 80% of consumers are recommending motivating to buy
LG CTV. In addition 20% consumers are not recommending to others.

GRAPH
58
RECOMONDATION OF LG COLOUR TELEVISION TO
OTHERS:

TABLE # 12

90

80

70

60

50

40

30

20

10

0
YES NO

RESPONDENTS PERCENTAGE

59
13.When they were asked that they are satisfied with the finance option provided by
KG towards the television the following drawn and tabulated below.

TABLE # 13
OPINION RESPONDENTS PERCENTAGE
YES 21 35.00
NO 39 65.00
60 100.00

INTERPRETATION;

By the above table we can conclude that 35.00 percent of people have satisfied with
financial options provided for the colour television and 65 percent of people have not

satisfied with financial options provided for the colour television.

60
GRAPH
FINANCE SERVICES PROVIDED AT BELOW LEVEL

table# 13

70

60

50

40

30

20

10

0
YES NO

RESPONDENTS PERCENTAGE

61
14.When they were asked to the satisfaction on the warranty period of in this product in
the company. As follows

TABLE # 14
OPINION RESPONDENTS PERCENTAGE
YES 20 33.33
NO 40 66.66
60 100.00

INTERPRETATION:

According to the survey reports, the satisfied consumers by warranty period are 33.33
percent and UN satisfied consumers by the warranty period is 66.66 percent.

62
THE BELOW GRAPH SHOWING WARANTY PERIOD
GIVEN BY THE COMPANY

TABLE 3 14

70

60

50

40

30

20

10

0
YES NO

RESPONDENTS PERCENTAGE

63
15. When were asked to the opinions on the models on this company colour televisions.
They results as follows;

TABLE # 15
OPINIONS RESPONDENTS PERCENTAGE
Good models 51 85.00
Average models 9 15.00
60 100.00

INTERPRETATION;
The above tables displayed on on the models on the LG colour televisions are most of
the consumers are told that is 85% of consumers are good models and another 15%
consumers said average models.

64
GRAPH
CUSTOMERS OPINIONS ON LG COLOUR TELEVISION
MODELS

TABLE # 15

90

80

70

60

50

40

30

20

10

0
Good models Average models

RESPONDENTS PERCENTAGE

65
16.When they were asked about the satisfaction about the satisfaction level by the
product that they owned. The results were given in below table;

TABLE # 16
LEVEL OF RESPONDENTS PERCENTAGE
SATISFACTION
Very much satisfied 36 60.00
Satisfied 14 23.33
Not satisfied 10 16.66

60 100.00

INTERPRETATION;

From the above table we can inferred that 60.00 percent of respondents are very much
satisfied with the model they owed and 23.33 percent of the people are satisfied by the
product and 16.66 percent of people are not satisfied by the owned product

66
GRAPH SHOWING THE FEELING OF
RESPONDENTS TOWARDS LG COLOUR
TELEVISOIN PERFORMANCE:

TABLE # 16

70

60

50

40

30

20

10

0
Very much satisfied satisfied Not satisfied

RESPONDENTS PERCENTAGE

67
CONCLUSIONS AND
SUGGESTIONS

68
CONCLUSIONS

1. Nearly half of the respondents are satisfied by the features

2. 85% of respondents are satisfied to the models in the LG colour

televisions

3. many of the respondents are LG CTV;s recommended to other

4. Most of the respondents are said to develop the dealerships and

media.

5. many of the consumers said to increase the warranty time period

6. Most of the respondents are said that develop the print media and

also sales persons.

69
SUGGESTIONS

1. Adjust to the sound systems. (base is high)

2. It is better to increase the warranty period.

3. Develop the dealership qualities.

4. And all electronic goods are produced.

5. Mainly features are good except sound systems.

6. To offer the coupons system and schemes are to be developed.

7. Create a transmit to rural areas.

8. They should improve after sales services in order to facilitate the

customers.

70
FINDINGS

 LG electronics Pvt Ltd occupies the incomparable highest market

share.
 The distribution channel is effective in LG Electronics products
 Majority of the retailers are satisfied with supply
 Majority of the retailers are not satisfied with replacement policy and
promotion schemes of LG Electronics
 Majority of the retailers preferring for offers.
 We have identified and created 100 new outlets for LG Electronics

71
BIBLOGRAPHY

72
1). CONSUMER BEHAVIOUR
(Schiffman & kanuak)

2). MARKETING MANAGEMENT

(Philip kotler)

3). MARKETING MANAGEMENT Indian context

(Ramaswamy & ramakumar)

4). MARKETING REASEARCH

(G.C.Berry)

Website: www.lgindia.com
www.lgelectronics.com
www.lgctvs.com
www.lgindiapvtltd.com

73
APPENDIX

74
QUESTIONNAIRE

Particulars about respondents

Name :
Occupation :
Address :
Gender ;

1)When you think of colour television which brands come to your mind?
a) LG b) BPL c) SAMSUNG d) ONIDA d) OTHERS

2). Which product of LG do you like mostly?

a) TV b) Refrigerator c) washing machine d) Oven

3). what is your opinion on price of LG TV’s compared to

Others.
a) Very high b) high c) no difference d) low

4). who has infleenced to you to purchase LG CTV

a) Model b) price c) publicity d) self interst

5). who has influenced you to purchase that particular brand.

a) Dealers b) friends c) relationship d) self interst

6). what is the purpose of purchasing LG CTV

a) Entertainment b) education c) sports d) others

75
 7). How is LG CTV; s clarity and sound compared to other.
a) Very good b) good c) not so good

8). what is the reason for choosing particularly of this brand.

a) Quality b) price c) features d) others

9). which particular media do you think is effectively spreading the

Televison market
a) Electronic media b) print media c) sales persons d) dealers

10). If you faced any problems whom do you contact.

a) Technically superior b) reliable c) value of money

11), do you recommend LG CTV to others

a) Yes b) no

12) Are you satisfied with the finance services provided?

a) Yes b) no

13) Are you satisfied the warranty period provided by the company?
a) Yes b) no

14) LG CTV models are

a) Good models b) average models
15) What do you want from the LG Co...?
a) Produced less price products
b) All electronic goods are to be produced
c) Develop the dealerships
16). Are you satisfied with the performance of LG CTV
a) Very much satisfied b) satisfied c) not satisfied

76