A survey was undertaken to analyze the market of fully automatic washing machines in Ludhiana city with the special reference to LG Electronics India Pvt. Ltd. This research was done in order to find out the consumer perception regarding fully automatic washing machines and regarding the different washing machine manufactures. This research has been done on the present customers to ascertain the brand loyalty among customers. The other objective of the research is to find out the display share of different companies in Ludhiana and to ascertain the market share in the present consumer durable industry. This report provides an overview of the industry in the current scenario and the future opportunities available with the different companies manufacturing and selling goods in Indian market. Also, this report provides information regarding the market share of different companies present in the Indian consumer durable market. For this purpose survey was conducted among the present customers in Ludhiana city. On the basis of research data, findings were drawn which provides the clear idea

of the perception of customer and dealers regarding the different manufacturers. Findings are that the customer walk in is mainly from rural sector and the customer mind set is already there that they want to purchase semi automatic washing machine because fully automatic machines are difficult to use and they are costly as compared to semi automatic washing machines. Other reasons given by customers are that servants usually handle machines and it is difficult for them to understand the working of the fully automatic washing machine. Other findings according to the dealers that they prefer to sell semi automatic because of customer demand that is mainly due to the lower price of semi automatic machines. Dealers said that customers are more brand cautious now they purchase only those products which appeals to them more. There is no pre set platform available for any company to sell there is wider competition in the market, so it is not easy to sell whatever they want.

washing machines. This industry consists of those goods which are used for the daily routine purpose or we can say for the domestic purposes such as televisions. microwave ovens. These products are hard goods that cannot be used up at once. etc. refrigerators. One major constraint that is time has changed the consumer durable demand more than any other factor. Now the consumer purchases these goods and even they change their older variants with the new variants available in the market. music players. such as. growth and trends The volume share of the single largest consumer durable was color TVs at 30%. refrigerators. higher income makes the goods affordable and with the increase in the advertisement the consumer behavior has changed a lot towards consumer durable goods. VCD/DVD. mobile phones. home theatre. etc. such as. higher disposable income. etc The Indian consumer durables industry has changed a lot in the last couple of years.Introduction Consumer durables are the products whose life expectancy is at least 3 years. The consumer durables sector can be segmented into consumer electronics. washing machines. emergence of the retail industry in a big way coupled with rising affluence levels of a considerable section of the population. Today the consumers have less time than before because they are busier with their day to day activities. and white goods. . air conditioners. music systems. color televisions (CTVs). There is change in a life style. Industry size. Washing machines and other assorted consumer durables captured a share in the total volume by 5% and 34% respectively. The growth in the consumer durables sector has been driven primarily by factors such as the boom in the real estate & housing industry. dish washers. water heaters. followed by refrigerators and air conditioners at 18% and 13% respectively. decrease in the availability of time with the consumers.

Projected Growth rate Consumer Durables Air Conditioner Refrigerator Microwave Ovens Washing Machines Color Televisions (CTVs) Black & Televisions Consumer Electronics (Overall) Growth Rate 15-20% 5-10% 25% 5-10% 15-20% White -20% 15% The top 5 players in consumer durables sector are • • • • • Nokia India LG Electronics India Ltd. Philips India Titan Industries Samsung India Electronics Literature Review .

35 million units in 2003-04 to 1. Frost Free Refrigerators (13. the demand for Electronic .3 per cent).A washing machine or a clothes washer is a machine manufactured and used to wash the laundry that is cloths. These companies import their premium end products from manufacturing facilities that are located outside India. such as Samsung.1 per cent from 1. thermal energy. and chemical action. Thermal energy is supplied by the temperature of the wash bath. • In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association (ISA).6 per cent) Micro Wave Woven (27. The reduction on import duty in the year 2005-06 has benefited many companies. and Sony. • According Corporation” Intelligence).) The sectors which have recorded high growth rates between 10 and 20 per cent in April-March 2004-05 over the corresponding previous period are Colour Television (12%). consumer electronic industry.6 million units in 2004-05. DVDS (25 per cent) VCD/MP3 (20per cent). Also Isuppli predicts that market will grow to US$ 6. Washing Machines is estimated to have grown by 18. Window Air Conditioners (18.8 per cent ).09 billion Indian durables market in 2009. Mechanical energy is supplied to the clothes load by the rotation of the agitator in the top load washing machines. policy has to (Applied Country's encouraged “Isuppli Market fiscal Indian • Appliances is projected to grow exponentially at a compounded annual growth rate (CAGR) of 30%. The sectors which have recorded excellent growth rates of more than 20 per cent in terms of quantity produced are Air Conditioners (25 per cent). or by the tumbling feature of the drum in front load washing machine. Split Air Conditioners (42.59 billion by 2011.1 per cent Watch (10%). Colour Picture Tube (23 per cent.8%). Washing Machines (18. LG. towels and sheets.Hi-technology durables are expected to introduce US$ 4. According to FICCI. All the washing machines work by using mechanical energy.

LG has maintained an overall leadership in washers with a 27 per cent share.4 was semi- Research Objective . sold. followed closely by Videocon which bagged 17.8 lakh washers automatic.6 per cent).95-2 million units and constitutes 33 per cent of the durables market. knocking Whirlpool out of the top three. Of the 1.• According to a recent research conducted by the Business Standard. while Samsung bagged 17. 1.8 per cent. the washing machine market in India is estimated to be about 1. IFB has replaced Whirlpool as the marked automatic leader in the fullywashing machine category and LG clocked leading sales in semi-automatic washers (28.3 per cent.

UNIVERSE OF STUDY The research was conducted in the Ludhiana city in Punjab.  To know how much customer is aware of different functions available in different variants. To study the market to find out the different reasons for the less sale of the fully as automatic compared Washing to the machine UNIT OF STUDY The sample or target customers mainly comprise of the washing machine owners those who have purchased semi automatic washing machines and full automatic washing machines. METHODOLOGY RESEARCH DESIGN USED: This study is based on the exploratory research followed by descriptive research.  To study why the market share of LG electronics is less in fully automatic segment as compared to semiautomatic washing machine segment. Also the sample or the target includes the dealers and distributors who full automatic washing machine.  To analyze consumers perception regarding LG electronics. SAMPLING DESIGN Convenient Non Probability Sampling was used to choose sample out of the target population SAMPLE SIZE: A total of 160 people have been targeted for the purpose of obtaining questionnaires. why the sales of fully automatic washing machine is less as compared to the semi automatic washing machine. Exploratory research is done in order to find the problem with fully automatic segment in Ludhiana region. Descriptive research is done in order to get the exact reasons from the customers why they prefer more semiautomatic than fully washing automatic machine Customer Type Customers Number customers of 100 of washing machine . semiautomatic washing machine.

Based on the information obtained from the above sources concepts were developed on which analysis was made.Semiautomatic washing machine Customers of Fully 50 automatic machine Dealers Distributors Total washing & 10 160 DATA COLLECTION: Primary Data The primary data collection comprises of questionnaire understand which the is mainly to customer perception regarding LG products and to know the different reason for their preference of semi automatic washing machine. Economic Times. Secondary Sources  Internet  Company data  Newspaper Articles from – Times of India. ANALYSIS & DISCUSSIONS .

2% 5. 26%.4% 15. REASONS FOR THE PREFERENCE OF FULLY AUTOMATIC WASHING MACHINE MARKET SHARE Product C. Microwave Oven.2% 14.2% Other 40.1% 22.8% 7. 29. And in the segment of Fully automatic Front Load LG is on the second position with market share of 27%.4% 16.4% 18.6% 24.9% respectively. Air Conditioners.9% 5% This table shows that LG is on the top in the category of Color television.1% 15. Air Conditioners.20%. Micro wave oven. Refrigerator (DC). Washing machine (SAWM) and in Top Load with 25.9% 5. silk.7%. Refrigerator (DC).8% and 18.7% 23% 3.L F.2% respectively.3% 18. synthetic) The main reasons for the preference of fully automatic washing machine are following • Comfort: it provides comfort you can just start the machine and can do your work or you can rest you need not to stand their waiting for cloth to get washed. wool.7%. 30.L LG 25.8% 17. Refrigerator (FF). Washing Machine (SAWM).7% 22.6%.TV Ref (FF) Ref (DC) A.C MWO SAWM T. 25%. . In the Top Load segment main competitors • Different preset programs (jeans.7% Whirlpool 0% 22. IFB which is considered as the most trusted brand in this segment is on the top with almost 45% market share. and 24. Refrigerator (FF).Following table shows the market share of different companies with respect to their volume size in the last year. Top Load and Front Load of LG Electronics is Samsung and Whirlpool with market share of 22. Different segments are studied as shown color television.7% 30.4% 15% 16. 25.9% 27% Samsung 16.7% 25.8% 26% 37% 31.2% 25% 26% 29.

22 respondents said they purchased the fully automatic washing machine because of its function known as Tumble wash. 26 customers interviewed said cloth. 33 respondents told that they The main reasons for the preference of semiautomatic following washing machine are . 24 customers said they prefer fully automatic because of its delicate cloth wash. 34 said that it has different preset programs which make their cleaning process easier than the semi automatic washing machine. REASONS FOR THE PREFERENCE OF SEMI AUTOMATIC WASHING MACHINE they purchased fully automatic washing machine for deep cleaning of Out of 50 customers 36 said that fully automatic washing machine provides more comfort as compared to semi automatic washing machine.• Delays start function. today designs are attractive and good enough that it can be placed in common room also in home. 36 customers replied that delay start function makes their washing process more effective even if there is any power cut they need not to set the machine again. purchased fully automatic because of its new and attractive looks. 29 customers told that fully automatic washing machine provides them the best wash function ever experienced with hot wash function. Other reasons for the preference of semi automatic washing machine as compared to fully are following: • • • • • • New technology Delicate cloth wash New designs/ Attractive looks Hot wash function Tumble wash Deep cleaning Total 32 respondents agreed that they have purchased fully automatic because of its new technology which will provide them more results than semi automatic washing machine.

52 said that it has lesser price than fully automatic that’s why they prefer semi automatic washing machine. Does the following factor plays an important role in buying decision? O Band name O Promotion Y Y N N N N N N • • Less price than fully automatic Not willing to change/ handy with semi automatic washing machine Out of 100 customers 67 said that it is difficult to operate fully automatic washing machine as compared to semi automatic washing machine. 26 replied that semi automatic takes less time than fully automatic to wash the cloths. 30 said because servants handle machine that’s why they have purchased semi automatic washing machine. 31 said they took the opinion from their friends and relatives for the purchase of washing machine.• IT is difficult to operate full automatic washing machine. 62 said that they are using semiautomatic washing machine from long time and they do not want to shift. dealer or what they have told by sales person. Other reasons for the preference of semi automatic washing machine as compared to fully are following: • Dealers / Sales person influence on semi automatic • • Friends/Relatives opinion Takes less time to wash the cloths than the fully automatic machine • • Servants handle machine Can wash more cloths with same water and detergent Total 18 respondents told that they purchased what they have shown by the O Washing Capacity Y O Aesthetics/ looks Y O Friends opinion Y O Prior knowledge Y Above diagram shows that the main factor that plays the important role in the buying . 42 said that fully automatic use more detergent and water it comes out to be costly that’s why they prefer semi automatic washing machine.

promotion and Opinion of friends and relatives considered to be the important factors with the positive response of 104. This shows that customer is more brand cautious and they consider the main constraint washing capacity as the main factor that plays the important role in the buying decision.decision of the customer are Brand name and Washing capacity. 8 dealers gave the reason that the price of product is also important different customers have different budget for the . 97 and 91. Nearly 93 % customers of semi gave the reason for selling different brand is customer demand of different brands. After that Looks. About 7% of the customers of semi automatic washing machine and 25% of fully automatic washing machine customer are not satisfied from the product and after sale service. SATISFIED CUSTOMERS WITH THEIR PRODUCT automatic washing machine and 75% customers of fully automatic washing machine customers are satisfied from the products and after sale service of the LG Electronics. Limited. 116 customers said yes the brand name affects the buying decision and 115 customers said yes the washing capacity affects the buying decision. Prior Knowledge is considered to be the least important as compared to the factors. Reasons for selling other Brands O Customer demand/ Awareness O Price of product O Unique Features O Brand cautious O After sale service O Other please specify………………… This pie chart shows that all the dealers Objective of the above question is to obtain the information that whether the customers of LG Electronics India Pvt.

They have . 5 dealers agreed that after sale service of different companies also considered as one of the reason for selling different brand. every customer has different family size.purchase so different price range should be available according to their demand. 7 dealers said customer is brand cautious now they prefer specific brands. Brand name is important that’s why they sell different brands. 3 dealers said different unique features of every company is important factor. different family size. NUMBER OF FAMILY MEMBERS The above diagram shows that the normal distribution curve is negatively skewed in nature with .140 values this is because the number of respondents vary in the family size.

promotion the and buying washing capacity of the washing affects decision.CONCLUSIONS According to the survey conducted following findings are drawn:  From the above research the main thing which came out is that the customer is still focused on the traditional methods of washing. They sell the products of different brands in order to attract different customers. Their prior knowledge of the brand today does not affect much because today the market is changing day by day now nothing is pre determined any one can sell their product in highly volatile market.  Most important factor which came out is that the customers do not have the proper knowledge of different brands and the functions different companies provide. its easiness to use the product and they are not willing to change their preference.  Customers than fully still prefer semi  Customers still thinks that the brand machine name.  According to the dealers customers are brand cautious and also they prefer quality product that can give value to their money invested.  The customers are satisfied with the products of LG and most of them do not want to change their product that means the customers of LG are brand loyal. Mainly the customer walk in is from rural segment. companies can grow more by focusing on the rural market. and servants handle washing machines. automatic washing machine more automatic of washing different machine because reason but the main reason for that was the price of the product. many research organizations also said that rural market is still open to all the company . .  Other reasons for the preference of semi automatic washing machine over fully automatic washing machine are that fully automatic washing machines are difficult to operate.

should encourage the dealers and distributor to focus on the fully automatic washing machine segment more. This segment needs more attention. . because some companies offer their fully automatic washing machine at low prices.  The customers do not have the proper knowledge for that the company should organize exhibitions or display on the most crowded places like the recently organized in the Flames.  More promotion is required for this segment. Customer feedback should be taken at regular interval. There customers should be given proper knowledge regarding the product. For this purpose they need to have complete knowledge of each and every function of the washing machine. Advertisements should be given in the newspapers and on TV so that customer gets aware of the product. Ltd. Customers can be easily converted from semi automatic to top load if given proper knowledge of machines. this will build a healthy relationship between company and customer.  To promote the selling of fully automatic be given washing to machines and different promotional schemes can Distributors Dealers.  Needs more display on multi brand showrooms and focus is required to cover the untapped rural market. automatic. This will make their work easy to convert the customer to fully automatic. RECOMMENDATIONS  To compete with the other big brand LG Electronics India Pvt.  ISD on the various locations should be told to convert the customers washing of semi automatic to fully machines  Company should revise the price of their washing machines with respect to other brand.

Consumer-Electronics-Market-inIndia.com/news/200812/12307223 20.com/Market -Research-Reports/Booming- release.Malhotra  Magazine.html.co m/forums/business-environment-be/29377-industry-analysis-washingmachines-onida.com/marketi ng-advertising/marketingtechniques/10511031-1. .free-press-  www.com  http://www.K.bharatbook.wikipedia.html. BIBLIOGRAPHY  www.com  Articles by org-gfk  www.  Company Sources  Market Research Report Preparation by N.  http://www.Business Today  www.ficci.org  Economic Times  Business Standard  Ficci survey on consumer durable: http://www.html.com/surveys/consu mer-durable.com  http://www.html.pdf.  http://www.allbusiness.org-marg.lgindia.managementparadise.naukarihub.

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