lg company project

7/27/2019 LG COMPANY PROJECT

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EXECUTIVE SUMMARY

Indian Consumer durables market used to be dominated by few domestic players like

godrej Voltas allwyn and kalvinater. But post liberalization much foreign company

have entered into Indian market dethroning the Indian player and dominating Indian

market the major categories in the market CTV, REFRIGRATOR, AIR

CONDTIONERS AND WASHING MACHINE

India being the second largest growing economy with huge consumer class

has resulted in consumer durables as the fastest growing industries in India LG,

SAMSUNG the two Korean companies has been maintaining the lead in the

industries with LG being leader in almost all the categories.

The rural market is growing faster than the urban market, although the penetration

level is much lower .The CTV segment is expected to the largest contributing

segment to the overall growth the industry. The rising income levels double-income

families and consumer awareness are the main growth drivers of the industries.

Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly

Rs 500 crore in India this year in research and development, brand-building and

other marketing initiatives.

The company, having a turnover of Rs 9,500 crore and market share of 26 per cent,

is investing Rs 360 crore on brand-building and other marketing initiatives and

around Rs 140 crore on research and development, besides launching new platforms

in information technology and related areas,

LGs innovative 211 campaign to provide quality after-sales service, will also be

expanded from the existing 22 to 40 cities by next month, The campaign, for which

IT infrastructure has been set up, includes the companys response to customer

complaint within two hours. The fixing time for complaints varies from one hour to a

maximum of 24 hours.

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SCOPE OF PROJECT

This project gives me great exposure to the consumer durable market because it

includes product knowledge and the filed job in which I have visited the store comes

under the region of Pune. During this project I also took part in the exhibition of LG

which held for the purpose branding and awareness of LG product. This project helps

me to know the market practically. My job was during this project to see the market

share and also the display share of the LG product in the store. LG always insist the

50% display share of LG product because LG believes that JO DIKHTA HAI WO

BIKTA HAI.

Key findings:-

1. By calculating the display share we found that in most of store LG has 50%

display share almost all categories.

2. By the actual monthly sale of particular store we came to know the capacity

of the store and how much product can they sale.

3. It helps us to know that weather dealer is capable of being a direct dealer of

LG or not and it also helps to find out the new dealer who are capable of

being the dealer of LG.

4. We also came to know while visiting the shops that there was big problem of

after sale service.

5. Many dealers were facing the problem of after sale service because there is

no follow up calls from LG.

6. Demo calls also not done properly.

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INTRODUCTION

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in

the consumer durables market, accounting for no less than 90% of the market.

Then, after the liberalization, foreign players like LG, Sony, Samsung,

Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players

control the major share of the consumer durables market.

Consumer durables market is expected to grow at 10-15% in 2007-2008. It is

growing very fast because of rise in living standards, easy access to consumer

finance, and wide range of choice, as many foreign players are entering in the

market

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. 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.

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CLASSIFICATION OF CONSUMER DURABLES SECTOR

1. Consumer electronic include vcd/dvd, home theatre, music player, color

television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc

2. White goods include dishwashers, air conditioners, heaters, washing machines,

refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,

microwaves, built-in appliances, Tumble dryer, personal care product etc.

3. Moulded luggage include plastics

4. Clocks and watches

5. Mobile phones

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Scope

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

grew to 38.2 million in 2007 as against 14.6 million in 2000.

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

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Higher import duties on row materials.

Cheap imports from Singapore, China and from other Asian countries.

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BRANDS IN CONSUMER ELECTRONICS SECTOR

MNCs NATIONAL REGIONAL

LG )

SAMSUNG ) KOREA ONIDA BUSH

HYUNDAI ) VIDEOCON CROWN

BPL SALORA

TCL ) CHINA GODREJ T-

SERIES

HAIER ) VOLTAS WESTON

IFB BELTAK

PHILIPS ) HOLLAND OSKAR

PANASONIC )

SHARP )

HITACHI )

SANSUI ) JAPAN

AKAI )

AIWA

WHIRLPOOL)

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ELECTROLUX

TODAY 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. MNCs offer superior technology to the

LG, SAMSUNG the two Korean companies has been maintaining the lead in

the industries with LG being leader in almost all the categories.

The company, having a turnover of Rs 9,500 crore and market share of 26 per cent,is investing Rs 360 crore on brand-building and other marketing initiatives and

around Rs 140 crore on research and development, besides launching new platforms

in information technology and related areas,

LG Electronics is one of the leading companies in the field of electronics with a

global presence in many countries. . Before briefing, I have divided the introduction

part into three main sub parts.

1. LG Global

2. LG India

3. LG Pune

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HISTORY OF COMPANY

The company was originally established in 1958 as Gold Star, producing

radios, TVs, refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star,

from which the abbreviation ofLG was derived. The current "Life's good" slogan is a

backronym. Before the corporate Name change toLG, household products were sold

under the Brand name ofLucky, while electronic products were sold under the brand

name ofGold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith

Electronics of the United States.

Global Operation

LG Electronics is playing an active role in the world market with its assertive global

business policy. As a result, LG Electronics controls 110 local subsidiaries in the

world with around 82,000 executive and employees.

LG Group

1. LG.Philips LCD

2. LG Chemical

3. LG Telecom

4. LG Powercom

5. LG Twins

6. LG Dacom

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http://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacomhttp://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacom


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BUSINESS AREAS AND MAIN PRODUCTS

Mobile communications

(a) CDMA Handsets,

(b) GSM Handsets,

(c) 3G Handsets,

(d) Cellular Phones

Digital appliance

a) Air Conditioners,

b) Refrigerators,

c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) Home Net,

g) Compressors for Air Conditioners and Refrigerators

Digital display

a) Plasma TVs,

b) LCD TVs,

c) Micro Display Panel TVs,

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http://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigeratorhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Compressorshttp://en.wikipedia.org/wiki/Plasma_displayhttp://en.wikipedia.org/wiki/Liquid_crystal_display_televisionhttp://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigeratorhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Compressorshttp://en.wikipedia.org/wiki/Plasma_displayhttp://en.wikipedia.org/wiki/Liquid_crystal_display_television


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d) Monitors,

e) PDP Modules,

f) OLED Panels,

g) USB Memory,

h) Flat Panel Computer Monitors

Digital media

a) Home TheaterSystems,

b) DVD Recorders,

c) Super Multi DVD Rewriters,

d) CDRW,

e) Notebook PCs,

f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players,

j) New Karaoke Systems,

k) Car Infotainment

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http://en.wikipedia.org/wiki/Computer_Monitorshttp://en.wikipedia.org/wiki/Home_cinemahttp://en.wikipedia.org/wiki/DVD_recorderhttp://en.wikipedia.org/wiki/Digital_audio_playerhttp://en.wikipedia.org/wiki/Computer_Monitorshttp://en.wikipedia.org/wiki/Home_cinemahttp://en.wikipedia.org/wiki/DVD_recorderhttp://en.wikipedia.org/wiki/Digital_audio_player


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LG BRAND IDENTITY

The brand of LG is delightfully smart. LG strives to enhance the customers

life and lifestyle with intelligent features, institutive functionality and exceptional

performance.

The brand platform:-

The LG brand is composed of four basic elements

1. Value

2. Promise

3. Benefits

4. Personality

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

Reliable products

Simple design

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Ease of use

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.

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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.

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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

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QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost satisfaction by

supplying zero defects.

LG proceeds in a hierarchal manner. It is named as LG WAY.

From top to bottom:

No.1 LG is the VISION

Jeong-DO Management is LGs unique application to ethics. LG will succeed

through fair management practices and constantly developing our business skill.

a) Honest with our customer

b) Providing great values to customer through constant innovation & and

development.

c) Equal opportunities

d) Equal Treatment

Management Principle - Creating value for customer

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CODE OF CONDUCT OF LG:

1. Responsibility and obligations to customers :

Respect for Customers

Creating Value

Providing Value

2 Fair competition

Pursuit of Free Competition

Compliance with Laws and Regulations

3 Fair Transaction :

Equal Opportunity

Fair Transaction Procedure

Support and Aid for Business Partners

4 Basic Ethics for Employees

Basic Ethics

Completion of Duty

Self Development

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Fairness in Performance

Avoidance of conflict with company interest

5 Corporate Responsibilities to employees

Respect for human dignity

Fair Treatment

Promoting Creativity

6 Responsibilities to society and country

Rational Business Development

Protection of stock holder interest

Contribution to social development

Environmental Conservation

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LG INDIA:

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,

South Korea was established in January 1997 after clearance from the Foreign

Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing

facility at GreaterNoida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater

Noida, India.

This facility manufactured Color Televisions, Washing Machines, Air-Conditioners

and Microwave Ovens.

''Company is setting up a chain of exclusive premium showrooms. LG plans

to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At

present, LG has a total of 83 LG stores across the country, of which 45 are shoppes

and 38 are exclusive stores. Brand shoppes will be placed in the premium segment

and the target audience will comprise buyers interested in premium and high end

products.

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.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27%

market share, is planning a brand new image. To attract inspirational and young

consumers across India, company will roll out a new marketing strategy. The

exercise will cost the company Rs 360 crore.

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 more than 50 lakh households in India. LGEIL is celebrating

the 11th anniversary this year.

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LG Soft India the innovation wing of LG Electronics in Bangalore is LG

Electronics' largest R&D centre outside Korea. We at LGSI focus on niche

technology areas such as mobile application development, digital video broadcast

and biometrics software and support LG Electronics with our expertise. Motivated bya passion for technology, a strong work culture and loyalty to the organization, we

are determined to see LG become one of the top three brands globally.

Prominent consumer electronic company, LG Electronics Inc. has said that it

expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum

Shin, managing director of LG Electronics India has said that the company has

earmarked 4.8 billion rupees for investment purpose in India this year. The said

money will be used to market as well as manufacture new products.

LG Electronics, which is originally a South Korean Company with branch in India,

informed that its sales of GSM mobile phones, color televisions, air conditioners and

other household goods in the Indian market was to the tune of 95 billion rupees ($2.4

billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110

billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on

catering to the high-end consumer market which will help boost sales this year. India

churns out six (6) per cent of LG Electronics global revenues of $42 billion. The

Indian branch of LG exports to 40 countries.

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INDIA CHALLENGES

The challenges faced by LG when entered in Indian market

1. Low brand awareness about LG in India.

2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995

in India).

3. High import duty

4. Compitition from local market players and other MNCs in consumer durable

segment.

5. Price sensitiveness of the Indian consumer

LGEI over comes these challenges to emerge as

Innovative marketing strategy

1. Launch new technologies in consumer electronic and home appliances.

2. LG was the first brand to enter in cricket in big way a way, by sponsoring the

1999 world cup followed it up in 2003 as well.

3. LG brought in four captains of the Indian cricket team to endorse its products.

LG invested more then US$ 8 million on advertising and marketing in this

sport.

4. LG has differentiated its product using technology and health benefits. CTV

has Golden eye technology Air conditioner has Health air system and

microwave ovens have the Health wave system.

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Local and efficient manufacturing to reduce the cost

To overcome high import duties LG manufactures TV refrigerator in India at

manufacturing facility at Noida and Pune. LGEI had already commissioned contract

manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to

reduce cost. 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.

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R&D potential

LG has the research and development facilities in Bangalore and Pune. 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.

Regional channel and wide distribution network

1. LG has adopted the regional distribution channel in India. All the distributers

work directly with the company. This has resulted in quicker rotation of the

stock and better penetration into B, C, D, class market.

2. LG also follows the stock rotation policy rather then dumping stock on

channel partners.

Product localization:-

1. Product localization is the key strategy used by the LG

2. LG came out with Hindi and regional language menus on its TVs.

3. Introduced the low-priced Cineplus and sampooma for the rural market.

4. LG was the first brand to introduce gaming in TVs in continuations of its

association with cricket LG introduce cricket game in CTVs

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MAJOR KEY SUCCESS FACTORS

1. Innovative marketing - LG was the first brand to enter cricket in a big way,

by sponsoring the 1999 World Cup and followed it up in 2003 as well.

2. Local and efficient manufacturing to reduce cost - To overcome high import

duties, LG manufactures PC monitors and refrigerators in India at its

manufacturing facility at Noida, Delhi.

3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for

CTVs.

4. Product localization - Product localization is a key strategy used by LG. It

came out with Hindi and regional language menus on its TV.

5. Regional distribution model - This has resulted in quicker rotation of stocks

and better penetration into the B, C and D class markets.

6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to

develop IT solutions to LG Soft India (LGSI). The project involves

development and support for ERP, SCM, CRM and IT-enabled services for

LG.

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STRATEGIES ADOPTED BY THE ORGANIZATION

LG follows 10 commandments which are as follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success

3. Transparent and fast communication-open communication

4. Update market -knowledge Demographics

5. Win Win relationship with the trade partners

6. Customer is the king

7. Even Billing Road to ach supplier A

8. Be in touch with the market (70% Market, 30% Office).

9. Plan and Execute annual marketing Calendar-Time to market

10. Display share of 50% -to get 50% consumer share.

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LG market share of consumer appliances and consumer electronic:-

LG position of CTV in various states in India

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LG position of AC in various States in India

LG position of Audio & Home Theater in various in India

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LG position of DVD in various in India

LG position of MWO in various states in India

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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. I

select different brand in different category as per the market share and the demand of

product in market. This analysis represents the LG market position during the period

of March 2008. It shows that LG has captured maximum market share almost in

every category. LG and Samsung have the maximum market in consumer durable

market but LG dominate the almost all the category in consumer durable.

Prominent consumer electronic company, LG Electronics Inc. has said that it

expects the sale of its products in India to up by 15 per cent in 2008. Moon BumShin, managing director of LG Electronics India has said that the company has

earmarked 4.8 billion rupees for investment purpose in India this year. The said

money will be used to market as well as manufacture new products.

LG Electronics, informed that its sales of GSM mobile phones, color

televisions, air conditioners and other household goods in the Indian market was to

the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales

in 2008 would be around 110 billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on

catering to the high-end consumer market which will help boost sales this year. India

churns out six (6) per cent of LG Electronics global revenues of $42 billion. The

Indian branch of LG exports to 40 countries. Shin remarked that the company was

targeting an increase of exports to $300 million in 2008 from $230 million in 2007.

The key strategies being implemented include increasing the number of its

regional offices from six to eight. LG has split its southern regional office into two,

one comprising the states of Tamil Nadu and Kerala and the other consisting of

Andhra Pradesh and Karnataka. In addition, it has split one of its northern regional

offices by making Uttar Pradesh a separate region after spinning it out from Delhi

NCR. The other four regional offices take care of East, Gujarat and Madhya Pradesh,

Maharashtra & Goa and Punjab, Haryana & Rajasthan respectively.

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In the coming year, LG is also repositioning its marketing spends, resulting in

a significant increase in its mass media expenditure for better brand visibility. LG

had a marketing budget of Rs 320 crore in 2007 with a 60:40 split in favor of below-

the-line activities. Next year, the company plans to increase the share of mass mediaeven as overall marketing spends would be raised by just about 10-15%.

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DISTRIBUTION AND MARKETING

The company has number of dealers and warehouses. They have LG exclusive

shopee. For the marketing of the products a number of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.

3. Hoarding, Posters, banners are used so as to grab the attention of the

costumers.

4. Day to day advertisement in leading newspaper.

5. Discount at festival time.

6. For dealer relationship they arrange dealer meting at several time in the year

7. LG divide dealer in gold silver etc. category to know the performance of the

dealers.

8. They have their sales persons at various sub dealer store and at mordent trade

store for particularly for the promotion of the LG product.

9. LG also uses the radio FM for the promotion activities.

10. Also provide capon and scratch card for festive season.

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CUSTOMERSERVICE

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, so critical for its

success and so taken for granted in developed markets! In India, after sales service is,

for want of a better description, the pits. So whats 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 dont really care. Brand Equity fanned

out to MNC as well as Indian consumer durable companies, stockiest and dealers,

analysts and market researchers to get a feel of whats really keeping after sales from

being used as a cutting edge marketing tool in pushing products across categories.

Customers support following the purchase of a product or service. In some

cases, after-sales service can be almost as important as the initial purchase. The

manufacturer, retailer, or service provider determines what is included in any

warranty (or guarantee) package. This will include the duration of the warranty

traditionally one year from the date of purchase, but increasingly two or more years

maintenance and/or replacement policy, items included/excluded, labor costs, and

speed of response. In the case of a service provider, after-sales service might include

additional training or helpdesk availability. Of equal importance is the customer's

perception of the degree of willingness with which a supplier deals with a question or

complaint, speed of response, and action taken.

LG also had a big problem of after saleservice in India. During my project

I also came to know that after sale service becomes the big issue in Pune region.

Customers as well as dealer were facing the problem of after sale service. Because ofthis problem many dealer in Pune region were not ready to sale LG product. So it

becomes the big issue.

But LG has taken some solid steps towards improving customers

perception and experience of after sales service. Because it very important in

competitive market to provide the best service.

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L G Electronics has signed a memorandum of understanding with 23

Industrial Training Institutes to strengthen its after sales service in India.

The company aims to recruit 10,000 people by the end of this year as a part

of its branding strategy to focus on service and move away from discounting.

L G Electronics has identified eight states with high after sales service call

rates to ink the deals with the ITI. Y V Verma, director HR and management system,

LG Electronics said, "The Company was trying to find a solution for effective after

sales service since last two years. There is a huge need of trained manpower for the

after sales service to align with the company's expansion and focus on the GSM

mobiles and the personal computer segments."

1. In the initial phase the company has entered into agreements with ITIs in the

states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka

and is in the last leg of signing with Uttar Pradesh.

2. L G Electronics, with 1200 service centers, has already recruited 300 students

and plans to beef up the number to 10,000 by the year-end.

3. "The company has offered a scholarship to the selected students for the last

six months of their training programme,"

4. The company will invest Rs 8 crore (Rs 80 million) in employee development

programme this year with an aim to attain a 8 per cent attrition rate.

5. 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.

6. At the top, the Service Division in Korea reports to the Global CMO. (as

mentioned in Dermots public interview in ET on Wednesday). This shows

commitment that Service must be made into a marketing differentiator, and

leveraged thus.

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7. LG has the widest service network across the country; some estimates put it

at a significant multiple of service-infrastructure from our nearest competitor.

While the sale size may also be a nice multiple from nearest, it shows the

company is ready to put our money where our mouth is.

8. The company has introduced a 211 service - once you register your

complaint, we will call you back in 2 hours (hence 2), set up an appointment

for the next convenient day for you (hence the first 1), and show up in the

promised 1-hour slot (hence the second 1). If the next convenient day for you

is the next day, thats great too. Its a disruptive action in an industry

(including LG) having traditionally shied away from its service

responsibilities, and thus not leveraging any mileage from it.

9. The company is promoting 211 through ATL, probably the first time after-

sales service is being communicated in this fashion by any product company.

You may have seen the TV commercial or heard the radio advert or seen the

newspaper ad or in-shop posters, both of which revolve around prompt

response.

10. The first LG-owned service centre opened in Gurgaon. (Service in India

generally works through authorized service centers, in LGs case they work

exclusively for LG.) A company-owned service centre tries that much harder,

knows things better, and can even contribute as a revenue center.

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OBJECTIVE OF THE PROJECT

Primary objective

The main objective of filed survey during the project was to find out the

market share of the LG and also calculate the display share.

Find out the positional dealer who can sale the LG product in large volume.

The main objective of research was to identify potential dealer and

development these dealer. So LG can make them their direct dealer.

This will ease the dependence on the some big dealer like Maharashtra and

Mahaveer electronics.

Find out the problem faced by the dealer in sales and the distribution.

Secondary objective

The Objective was to find out that how far the exhibitions are helpful in

branding,

While purchasing the consumer durables which parameter is most important

for the consumer?

Do the consumers prefer the financial facility for buying consumer durable?

How frequently consumers change the consumer durable?

To enhances the knowledge of consumer durable market.

To increases the knowledge consumer durable product of LG.

To enhances the knowledge about the marketing and branding activity.

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RESEARCH METHODOLOGY:

Research methodology is considered as the nerve of the project. Without a proper

well-organized research plan, it is impossible to complete the project and reach to

any conclusion. The project was based on the survey plan. The main objective of

survey was to collect appropriate data, which work as a base for drawing conclusion

and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind

the methods used in the context of a research study and it explains why a particular

method has been used in the preference of the other methods

Research design:

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers. In fact, it is the

key to the evolution of successful marketing strategies and programmers. It is an

important tool to study buyers behavior, consumption pattern, brand loyalty, and

focus market changes. A research design specifies the methods and procedures for

conducting a particular study. According to Kerlinger, Research Design is a plan,

conceptual structure, and strategy of investigation conceived as to obtain answers to

research questions and to control variance.

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Types of research is:

Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are

undertaken in many circumstances when the researches is interested to know the

characteristic of certain group such as age, sex, education level, occupation or

income. A descriptive study may be necessary in cases when a researcher is

interested in knowing the proportion of people in a given population who have in

particular manner, making projections of a certain thing, or determining the

relationship between two or more variables. The objective of such study is to answer

the who, what, when, where and how of the subject under investigation. There is a

general feeling that descriptive studies are factual and very simple. This is not

necessarily true. Descriptive study can be complex, demanding a high degree of

scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in

its approach, but a descriptive study in contrast tends to be rigid and its approach

cannot be changed every now and then. It is therefore necessary, the researcher givesufficient thought to framing research.

Questions and deciding the types of data to be collected and the procedure

to be used in this purpose. Descriptive studies can be divided into two broad

categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is

concerned with a sample of elements from a given population. Thus, it may deal with

household, dealers, retail stores, or other entities. Data on a number of characteristics

from sample elements are collected and analyzed. Cross sectional studies are of two

types: Field study and Survey. Although the distinction between them is not clear-

cut , there are some practical differences, which need different techniques and skills.

Field studies are ex-post-factor scientific inquiries that aim at finding the relations

and interrelations among variables in a real setting. Such studies are done in live

situations like communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has been taken by me. A

major strength of survey research is its wide scope. Detail information can be

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obtained from a sample of large population .Besides; it is economical as more

information can be collected per unit of cost. In addition, it is obvious that a sample

survey needs less time than a census inquiry. Descriptive research includes survey

and fact finding enquiries of different kinds of the major purpose. Descriptiveresearch is description of the state of affairs, as it exists at present. The main

characteristic of this method is that the researcher has no control over the variables;

he can only report what has happened or what is happening. The methods of research

utilized in descriptive research are survey methods of all kinds including

comparative and co relational methods. The reason for using such needs to be flexile

in its approach, but a descriptive study in contrast tends to be rigid and its approach

cannot be changed ever now and then.

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Data collection methods:

After the research problem, we have to identify and select which type of data is to

research. At this stage; we have to organize a field survey to collect the data. One of

the important tools for conducting market research is the availability of necessary

and useful data.

Primary data: For primary data collection, we have to plan the following four

important aspects.

Sampling

Research Instrument

Secondary Data - The Companys profile, journals and various literature

studies are important sources of secondary data.

Data analysis and interpretation

1. Questionnaires

2. Pie chart and Bar chart

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains

question that the researcher wishes to ask his respondents which is always guided by

the objective of the survey.

Pie chart:

This is very useful diagram to represent data , which are divided into a number of

categories. This diagram consists of a circle of divided into a number of sectors,

which are proportional to the values they represent. The total value is represented by

the full create. The diagram bar chart can make comparison among the various

components or between a part and a whole of data.

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Bar chart:

This is another way of representing data graphically. As the name implies, it consist

of a number of whispered bar, which originate from a common base line and are

equal widths. The lengths of the bards are proportional to the value they represent.

Preparation of report:

The report was based on the analysis and presented with the findings and

suggestions. The sample of the questionnaires is attached with the report itself.

Sampling Methodology:

Details of the sampling methodology, I have made questionnaire. The one is made

for the Customer.

No. of questions in questionnaires for customer: 07

No. of question related to LG product: 03

No. of people met during the research: 200

No. of respondents during the research: 50

Sample unit

Professionals, Business man,

Employees, House wife,

Working women, Students

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Analysis:

Q1. Have you purchased any consumer durable during Exhibitions?

Yes

No

Inferences

1. 65 % of Customer have not purchased any consumer durable from

exhibitions.

2. Only 35 % people have purchased.

3. It shows that consumers are coming in the exhibition for knowledge of

product and also they want to know that weather there is actual price

difference in exhibition and shop or not.

4. Consumer also want to compare to the different brand which are available in

the exhibition.

5. So exhibitions are more useful to increases brand awareness.

6. People are less interested to purchase product from the exhibition.

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Q.2While purchasing consumer durable which parameter influences you?

Price

Product feature

Brand

Service

Durability

Inference

1. 30% of customer gives importance to price. So it shows that Indian

consumers are very price sensitive. They give more importance to price over

the brand.

2. 26% give importance to brand. So price and Brand matter a lots for the

costumers. And they are also want best brand in best price.

3. 19% to product feature Service 16% and durability 9% Service is also a big

factor for the customer they are less interested in the durability.

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Q3. From where you prefer buying consumer durables

Exhibitions

Co.shoppee

Showroom

Inference:

1. A majority of customers prefer to buy from showrooms. Very less

proposition of customers buys from Exhibitions.

2. 47% customers are prefer to by from the showrooms because the showrooms

are more convenient to customers they also think that these shops give more

discounts.

3. People are less interested to buy from the exhibition they only visit the

exhibition for price quotation of the product and the comparison of the

product.

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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of

following reasons

Attractive Price

Service

Demonstrations

Offers

Inference

1. Customers buy from showrooms because of the service and convenience.

These are two main factors.

2. Customers are preferred to buy from the showroom because of they think that

these convenient store may provide good after sell service.

3. Customer also thinks that there is more chance to bargain and they can get

more discounts in these showrooms.

4. Price also a factor that attract the customer in these showrooms.

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Q.5.Which consumer durable you have and of which brand?

CTV

LCD

PLASMA

REF

WM

MW

AC

Inference

In CTV section maximum customers have Onida, in LCD Sony is the leader, In

plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM

there are companies and in AC also.

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Q.6. How frequently you change your consumer durables?

1-3 years

3-5 years

5-10 years

More than 10 years

INFERENCE

1. Customers prefer to change consumer durables within 5-10 years. In India

people do not change consumer durable frequently.

2. 23% customers do not change their consumer durable within 10 year.

3. It represent that Indian consumer do not prefer to change their consumer

durable frequently.

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CUSTOMER SURVEY FINDINGS

1. Secondary supports play an important role in the customers mind and create

awareness among the customers. The secondary support includes

Demonstration, Exhibition & Even Sponsors.

2. From the survey it was found out that the majority of customers dont buy

consumer durables from exhibitions. They just visit the exhibitions to see the

co. latest model.

3. They want to buy from the showrooms or from co. showrooms. For them

service is important .Beside convenience and other factors service is key

factor.

4. Also majority of customers do not want any financing scheme for purchasing

the durables.

5. There was heavy rush on weekends so large numbers of ISDs were

appointed that day. Also the live demo calls helps in selling. Exchange offers

also generate sale.

6. Customers are also now very choosy in buying the product and it is important

for the company to make loyal customer of their brand.

7. In survey we found that LG has captured maximum market share in every

category. LG dominates CTV, LCD, and Refrigerator, and Washing machine,

category.

8. LG and Samsung have bottle neck competition in TV and REF. category.

9. The product is well aware and it is on top of mind of customer.

10. Customers are also now very choosy in buying the product and it is important

for the company to make loyal customer of their brand.

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RECOMMENDATIONS AND SUGGESTIONS

1. Exhibitions do not help to generate so much sells but they should be

conducted regularly. This helps in generating awareness regarding the

product in customers which ultimately helps in sales.

2. Also it is helps in advertising for the new products. Like in this exhibition

new LCD SCARLET was advertised. Company should always focus on

service.

3. Display share should be increased where there is less than 50% as LG also

believes that JO DIKHTA HAI WO BIKTA HAI.

4. Company should try to improve service. No doubt the company products

have technically edge over competitors but in long run it may hamper the

companys profit.

5. Company should concentrate more on its major drivers LCD, IT, and GSM.

Branding and promotions should be done effectively as it creates a long

lasting image in the mind of customers.

6. Company should also cater to the needs of sub dealers as some of the sub

dealers have potential of high sales.

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LIMITATIONS

Every study has certain limitations. In my study, also there were certain limitations,

which I could not able to solve.

1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product sale

of different brands, which affected the perception of the customer. This was

biggest drawback of my study.

3. Time factor was also important for me. I had only 60 days to complete myresearch, for which a full-fledged report was insufficient for me.

4. The customer filled the questionnaire mostly in careless manner, so it was

difficult to make them hold for time.

5. I had only found the upper-middle class family to fill up the questionnaire,

but generally, an average middle class family was required for the study.

6. The sample size is also very small which represent my research on consumer

behavior

My study is not recognizable in whole INDIA as well as outside Ranchi due to

the above limitations and less area coverage.

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BIBLIOGRAPHY

www.lgindia.com

www.google.com

www.wikipedia.com

Business world

Business today

LG magazine

Economics times News paper

Times of India

lg company project

Documents