project of lg

7/25/2019 Project of Lg

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STUDENTS DECLARATION

This Marketing summer training Project is submitted to TUPLES, MEERUT for

MASTER OF BUSINESS ADMINISTRATION. The training work undergone in this

project is Authentic and Verifiable and has not been copied from any other source.

MANOJ KUMAR

M.B.A. IV SEM

Roll No. 720639124

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CONTENTS

1. ACK!"#$%&$M$T

2. 'T(!%)CT'!

3. C!MPA* P(!+'#$

4. P(!%)CT P(!+'#$ ,CTV-

. C!)M$( /)*'& /$0V'!)(

6. ($$A(C0 M*T0!#!&*

a. !bjecti1e

b. ample design

c. %ata collection

d. Tabulation of analysis

e. #imitation

7. TA/)#AT'! A% 'T$(P($TAT'! !+ %ATA

!. AA#*' A% +'%'&

10. ($C!MM$%AT'!

22. C!C#)'!

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23. )&$T'!

24. 5)$T'!A'($

26. /'/#'!&(AP0*

ACKNOWLEDGEMET

!ne of the most pleasant parts of writing report is that it gi1es an

opportunity to thank all those who ha1e contributed to it. 0ere by through

my report ' acknowledge my deep gratitude towards my institute7 which

ga1e me an opportunity to undergo summer training project. ' would like

to thank all my faculty members at T"#l$%, M$$&"' for ha1ing been a

source of constant inspiration and help. ' would like to thank my project

guide M&%. R"()*+ B+&-+/ .O.D. o M.B.A. his continuous

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guidance and support. Acknowledgement and sincere gratitude is gi1en to

all those who helped me directly and indirectly in completing my project.

0owe1er at times in spite of the best efforts this e8pression is incomplete

and this acknowledgement is no e8ception and ' deeply regret for it.

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INTRODUCTION

ELECTRONIC INDUSTRY PFOFILE IN INDIA

"ith the ad1ent of science and technology7 electronics has assumed an

added significance. $lectronics in 'ndia has all the ingredients for rapid

growth. 'ndia has the potential of becoming a major global player in

electronics. %uring the last few years7 the electronic industry has made

significant contribution to the national economy while substantial growth in

production has been achie1ed in the areas of consumer electronics9 the

growth trends in other areas are 1ery encouraging.

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CONSUMER ELECTRONICS

$lectronics plays a 1ital role not only in tackling the issues of national

importance7 but is also pro1ing ad1antageous in the field of

communications7 transportation7 health7 agriculture and industrial

production.

"ith the liberali:ation of in1estment7 licensing7 foreign collaboration7

import policies7 lowering of important tariffs in the country. The consumer

electronics sector witnessed a boom during the $ighth +i1e *ear Plan.

't is proposed to set a goal of electronics production of (s. ;3== 2 A% or (s. ?== billion for the terminal year of the ?th

Plan. This would represent a growth rate of about 4= to 4


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?th Plan and would be a mere 3@ of the world trade estimated at 24==

billion by 3==2. +urther7 goals suggested for electronics production for

3==B>3==; and 3=22>3=23 are < percent and 23@ respecti1ely of the

world market.

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COMPANY PFOFILE OF LG

L El$5'&o*)5% I*-)+ P'. L'-.7 a wholly owned subsidiary of #&

$lectronics7 outh Korea was established in anuary7 2??; after

clearance from the +oreign 'n1estment Promotion /oard ,+'P/-. The

trend of beating industry norms started with the fastest e1er>nationwide

launch by #& in a period of 6 and < months with the commencement of

operations in May 2??;. #& set up a state>of>the art manufacturing facility

at &$+'$& No)-+, *$+& D$l)7 in 2??D7 with an in1estment of (s


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commenced the home production for its eco>friendly (efrigerators and

established its assembly line for its PC Monitors at its &reater oida

manufacturing unit. The beginning of 3==4 will see roll out of the first

locally manufactured %irect Cool (efrigerator from the plant at &reater

oida.

The &reater oida manufacturing unit line has been designed with the

latest technologies at par with international standards at Ko&$+and is one

of the most $co>friendly units amongst all #& manufacturing plants in the

world.

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L TE BEST LOBAL 8OMPAN

#& $lectronics was established in 2?


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The management philosophy I

G "e create 1alue for our customers through management based on

esteem for human dignity.H

The product manufactured internationally co1er Multimedia Players7

VideoJAudio products7 0ome Appliances7 'nformation ystem products7

Communication %e1ices7 %isplay products7 Magnetic (ecording Media

and $lectricJ $lectronics Parts and Components. 0ea1y in1estments are

being made in the ne8t generation and en1ironment friendly product.

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T$ L &o"# Loo:)*; A(o$

The #& &roup is today7 one of the KoreaFs top 4 conglomerates7 'n fields

ranging from chemicals7 energy7 electronics7 semiconductors7 machinery

and metals of trade7 ser1ices and finance each of the #& member

companies is now working to rise to the highest le1el of global competition

in their respecti1e 'ndustries. The company is represented by ;3

subsidiaries around the world with o1er


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FINAN8IAL PERFORMAN8Econditioners ha1e

N0ealth Air ystemN7 which not just cools7 but keeps pollution out. imilarly7

microwa1e o1ens ha1e the N0ealth "a1e ystemN7 refrigerators ha1e the

NP ystemN7 which preser1e the nutrition in food and washing machines

ha1e N+abricare ystemN7 which takes the health factor down to ones

clothes. All the products offered by the company ha1e uniue

technologies7 de1eloped by its (% departments that gi1e customers a

healthier en1ironment to li1e>in.

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The year 3==2 witnessed #& becoming the fastest growing company in

the consumer electronics7 home appliances and computer peripherals

industry. The company had till the month of !ctober 3==2 achie1ed a

cumulati1e turno1er of (s


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This year7 #& has emerged as the leader in Colour Tele1isions7

emi Automatic "ashing Machines7 Air Conditioners7 +rost>+ree

(efrigerators and Microwa1es !1ens. 'n Colour Tele1isions ha1ing set the

sales target of one million units of Color Tele1isions for 3==37 #& has

already achie1ed the one million mark in the month ahead of its target.

#& $lectronics 'ndia is the fastest growing company in the consumer

electronics7 home appliances and computer peripherals industry today.

#& $lectronics is continually pro1iding superior technology products

1alue for money to o1er


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PRODUCT PROFILE

14= 8TV26%;?K!*MA

P#)26CA4=KC'$P#) 26%;?V$oyma8 %# ;7??=.== 7,000.00

(+>

26CC


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Mo-$l No D$%5&)#')o*MRP L)%'

(T>32+A3=K$ +latron 2676?=.== 13,200.00

C+>32%44K$&olden $ye

Magic2=7??=.== 10,300.00

(+>32CA4=K CinePlus D7??=.== !,400.00

C+>3263K

32O CTV

MA$T(!

&!#%

227??=.== 10,990.00

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http://www.lgindia.com/CatalogAction.do?callType=detail&modelid=RT-21FA20KE&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=CF-21D33KE&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=RF-21CA30K&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=CF-21S42KS&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=RT-21FA20KE&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=CF-21D33KE&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=RF-21CA30K&categorycode=CTV%2021&originURL=modelhttp://www.lgindia.com/CatalogAction.do?callType=detail&modelid=CF-21S42KS&categorycode=CTV%2021&originURL=model


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20CTV

2= 8TV

Mo-$l No D$%5&)#')o* MRP

(T>3


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(T>33?+CD=V$ +latron 4


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VISION

To be o. 2 company in 'ndia by 3==4

PILOSOP

Compete in the 'nternational market with a global Mindset..

Ma8imi:e 1alue for customers7 $mployees and shareholders.

Pursue the best in the class through Management by Principle.

Contribute to the society through good Hcorporate citi:enshipH.

INITIATIVES

(edesign business portfolio.

%e1elop new strategic business.

&lobali:ation

Acuire promising differentiated technology.

Culti1ate high performing leader

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STRENT > SPE8IALTIES

#&Fs strategies are more interested in e8panding the market than

wresting share away from other players.

#& decided to be a 1alue dri1er7 selling no1el product benefits.

#& applied uniue insight across product markets7 including

consumer electronics7 where people hadnFt imagined that health

had any rele1ance ,like offering ACFs with health Air system with anti

Ifungus7 electrostatic and deodori:ing and anti>bacteria filters>so

that AC which was pre1iously just a cooling machine7 is now wanted

by people to impro1e the aesthetics of the room7 gi1e them status7

be easy to operate and impro1e health.-

And this due to the accurate presentation by effecti1e

ad1ertisements the 'ndian consumer is beginning to judge all sort of

machines by what they mean for a healthful life style.

#& is a technological brand as compared to others which launched

a whole range of household products simultaneously and because

of the strategy the customers had been benefited with the

consciousness of concept of health who recei1e ' tin the form of

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ualityHhealthfulHproducts and also are new conscious enough to

judge their machines 1ide this parameter.

!perating with a consumers perspecti1e is a matter of routine at

#&>by keep on asking ridiculous uestion and then figuring out how

much to deli1er.

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ADVERTISIN ?ORLD OF LEIL

+rom the beginning7 the Ad1ertising Agency made responsible for

ad1ertising campaign of #& is #!"$>#'TA7 which is among the top

three ad1ertising agencies of the country.

The strategy of the company can be understood to be need>based which

recogni:ed the need of maintaining G#ifeFs goodH while using the 1arious

consumer electronics goods.

This health factor was until then not gi1en any air by any of the +MC&

companies although they knew the customers want to safeguard their

health in the way of utili:ing other benefits7 but was not pro1ided the

desired hype and fla1or

!n a large scale7 the ad1ertisements7 for #&Fs products7 promote the

consciousness of Ehealth factorF for 1arious machines including ACs which

were until then considered as cooling de1ices only. And perhaps this is

the probable reason that e8actly within 3 years of its launch7 #& displaced

carrier as 'ndiaFs o.2 seller for AC.F (arely has a new comer unseated

the o.2 so uickly.

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Q#&Fs Gwit:erland toh hai right hereH commercial effecti1ely con1eyed the

companyFs claim to purify the air7 a clear>cut benefit in pollution tormented

cities.R

Ad1ertisement for #&Fs refrigerators with concept like +rost +ree7 P

systems7 Multiplus etc. showcased the element of health for the entire

family.

Ad1ertisement for G%oor Cooling refrigeratorsF was a direct hit because of

its uniue concept effecti1e portrayal. The punch lines aired with

1arious models of electronics also cast a good repo for the products.

some of them are like>

GThe purest way to breathe.H

G+or cool healthy airH.

G$njoy a wrinkle free 1iew of the new millenniumH.

GKeeps your family healthy7 day after day7 after daySH

The ad1ertisements are also product based which7 instead of showcasing

other features7 highlights the uniue features of the products7 like golden

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eye7 +lat screen for TV9 %oor cooling system for (efrigerators7

+abricare7Punch wash for "ashing Machines9 etc.

The slogan changed time to time correctly reflects the actual positioning

of the strategies for technological inno1ations7 like

Cyber #& Ie8pand your life

%igitale: #&>technology that understands you

!ne of the most mandatory element of any companyFs efforts to cast and

e1erlasting and permanent image in the minds of the people through

which they seem to recall the company is the symbol or the logo of the

company which shows the companyFs name and philosophy .

The amount7 spent on ad1ertising in the first years i.e.2??; was 26 crores

which was subseuently raised in the year

2??D72???73===73==273==373==473==6 to 4376?7B;7D24D crores will be spent upon ad1ertising

with a share of o1er 6@ of the total projected turno1er.

!ut of the total share for ad1ertising7 about ;=@ is spent on pure

ad1ertising and about 4=@ on 1arious e1ents7 e8hibitions7 etc.

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As far as 1arious media for ad1ertisements are concerned7 about 6=@ are

spent on print and about B=@ on TV.

The company in1ol1ed itself with mass marketing by sponsoring 1arious

sports e1ents.

#& sponsored 'CC world Cup and also started its own #& Cup had

been sponsoring cricket e1ents since then for publicity promotion.

Currently Company also launched a countrywide promotional scheme for

its customers on this %iwali G Doo@ M+5+ D$ O$&H scheme. 'n this

scheme by a #& Products and get a uniue de1ice just twist it and get

an assured gift which will be re1ealed to you with a bang. 'n this scheme

customer ha1e a chance to win a 0yundai Accent free Airline tickets

and lots more #& Products like &M Phone7 Projection TV7 Micro !1en or

AC7 T>hirts7 or Clocks etc.

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L LOOTE FA8E OF TE FUTURE

This ymbol mark Ithe 1isual representation of #&>is composed of the

letter G# GandH &H in a circle symboli:e the world +uture7 *outh7 0umanity

and Technology7 This philosophy is based on humanity and represents

#&Fs efforts to keep close relationships with their customers in the world.

(ed7 the main color represents friendliness9 also gi1e a strong impression

of #&Fs commitment to the best.

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OBJE8TIVES OF LEIL

,Till #eap 3==


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can call for at any hour of the day for any sort of complaint or

suggestion.

GTarget marketingH that works like this recogni:ing segments which

a need for specific features7 and tapping it.

$1ery technician is gi1en world>class instructions on how to handle

complaints. Company is e1en sent to the global headuarters7 thus

in1ol1ing them closely with a corporation they can be proud of.

#& runs tight operations7 with strict sales forecast e8pected of all

parts of the chain. 'n1entory le1els are kept low this way. 'f demand

picks up7 the systems will become more efficient.

#& is Bthbest employer to work in 'ndiaH was awarded by business

today.

!nline shopping for consumer electronics can be done at the site

www. #ge:buy.com.

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CONSUMERS BUYING BEHAVIOR

)nderstanding the buying beha1ior of the target market is the essential

task of marketing management under the marketing concept.

The consumer market consists of all the indi1iduals and households who

buy or acuire goods and ser1ices for personal consumption.

Consumers 1ary tremendously in age7 income7 educational le1el7 mobility

patterns and taste.

MODEL OF CONSUMER BEHAVIOR

%ue to the growth in the si:e of firms and markets7 marketing decision

makers ha1e been remo1ed from direct contact with their customers.

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Managers ha1e had to turn to consumer research. They spend more

money in trying to learn L "ho buys 0ow do they buy "hen do they

buy "here do they buy "hy do they buy

0ow do consumers respond to 1arious marketing stimuli7 arranged by the

company7 is main uestion. Therefore7 business academic researchers

ha1e in1ested much energy in researching the relationship between

marketing stimuli and consumer response.

O"'%)-$ S')@"l) B"$&% Bl+5: (oC B"$& &$%#o*%$%

Marketing Other

Product

Price

Place

$conomic

Technological

Political

/uyer

Characteristics

/uyer

%ecision

Process

Product choice

/rand choice

%ealer choice

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Promotion Cultural Purchase choice

Purchase amount

MODEL OF BUER BEAVIOR

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Their starting point is the stimuli>response model. Abo1e figure shows

marketing and other stimuli entering the buyerFs Gblack bo8H and

producing certain responses. The stimuli are of two types. Marketing

stimuli consists of the 6 Ps L Product7 Price7 Place and Promotions. !ther

stimuli consist of major forces and e1ents in the buyerFs en1ironment

economic7 technological7 political and cultural. All these stimuli pass

through the buyerFs black bo8 and produce the set of buyer responses L

Product choice7 brand choice7 dealer choice7 purchase timing and

purchase amount.

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MA!( +ACT!( '+#)$C'& C!)M$( /$0AV'!(

ConsumerFs purchases are highly influenced by cultural7 social7 personal

and psychological factors.

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8"l'"&+l

8"l'"&$ So5)+l

ubculture

ocial class

(eference

groups

P$&%o*+l

+amily

(oles and

status

Age and life

Cycle

stage

!ccupation

P%5olo;)5+l

Moti1ation

Perception

#earning belief

attitude

B"$&

DETAILED MODEL OF FA8TORS INFLUEN8IN BEAVIOR

A 8ULTURAL FA8TORS


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Cultural factors e8ert the broadest and deepest influence on consumer

beha1ior.

8ULTUREof>mouth results in the desired objecti1e

of an ad1ertisement being fulfilled i.e. purchase of the product by the

target customer.

Therefore7 the more the company is heard of through its ad1ertisement

the more is the recall>1alue7 which is the ultimate parameter to assess the

effecti1eness.

The respondents in the sur1ey were 1ery uite well informed about the

company .$1en a major share of the rural population were familiar with

the name of the company and its logo7 as an increasing proportion of the

rural and semi>rural population ha1e come to trust in the companyFs

product for their uality and before this e1en price seems to be and

a1oidable consideration.

!ut of the sample of 2


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goodwill of the company is being gi1en an ear to and the name is

speaking of itself. Among the 1arious towns7 the highest percentage is ?class locality Meerut Cantt. and ?< for />class locality agriti Vihar.

'n addition7 the ad1ertisements are attracti1e enough to ha1e been seen

by ?3 @ of the sample. Again7 among locality>wise breakup the highest

percentage for ad1ertisement being seen is grabbed by %efense colony

and Meerut Cantt with D6@ and ;2@ respecti1ely.

!ut of the total sample7 4;@ respondents ha1e already usedJ are using

the products of #&. A Iclass locality7 %efence Jcolony has highest number

of the users ,B6@- and lowest for agriti 1ihar ,3


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This lead to the assessment of the effect and ad1ertisement ha1e o1er the

customer and finally achie1ement of the objecti1e of positi1e altering the

purchase beha1ior. This shows that ad1ertisements are attracti1e and

impressing enough to ha1e generated the feeling of buying the product

and least once7 in the minds of ;B@ of the respondents.

"hen enuired about the media7 upon analysis it was found that TV

seems to be the best choice with ?4@7 followed by nearly the same 1oting

for Print and bannerJ 0oarding QB


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PROBLEM AND LIMITATIONS

OF TE PROJE8T

T$&$ +&$ + l+&;$ *"@($& o %@+ll +*- (); lo5+l)')$% )* '$

+&$+ .)' +% + -))5"l' '+%: 'o 5o$& 'o @+ 'o*% +*- 5)')$%

)* %"5 + %o&' %#+* o ')@$ .

0ence 7only Bof them were selected namely defence colony

7agriti Vihar7hastri agar7haradhapuri7 Panda1 agar7Meerut

Cantt representing A>Class 7/>Class7 C>Class localities .

$8clusi1e dealer of the company7 were also inuired where

sometimes delays occurred and repeated 1isits were made on

account of concerned person una1ailable or busy.

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!nly a small fraction of customers reading national dailies is one

of the factors of their not coming across ad1ertisements and

without which ad1ertisement effecti1eness cannot be judge.

#ocating dealers selling brands other than #& was a difficult task.

Their 1iews seemed necessary in getting an o1erall picture.

Many of them out rightly refused to entertain the uestionnaire.

Contacting the 1arious eligible customers and probing in detail

about 1arious features of the ad1ertisements7 impro1ements in

it 7 ad1ertisement of the competitors7 their suggestions etc.

ometimes pro1ed a difficult job. Many times appointments were

taken and were cancelled at the last minute.

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CONCLUSION

The conclusion drawn are totally dependent on the response of the

respondents as they ha1e been analy:ed

2. according to our analysis in CTVs nearly 42.3@ of the respondents

owned #& CTVs. amsung seems not too far from #&7 it has 34.B@

share among respondents ony !nida ha1e 2=@ ?.B@

respecti1ely.

3. To find out the most influencing medium7 we consider many media.

After analysis we conclude that T.V. is the most influencing medium.

There are many other sources e8cept T.V. which influence the

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consumer in making purchase decision. !ther source may by

through friends7 own 1ision7 family members etc.

4. The introduction of a new brand7 by itself do not lead the customer

to change the brand but it may

6. "e include that BB@ of the total respondents ad1ice the other

person to purchase the same brand what they ha1e purchased.


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B. 't concludes that distributors ha1e much influence on the consumer

in making purchase decision.

;. (espondents of low income ,less than (s.


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SUGGESTIONS

The suggestions made as per the study and obser1ations of the sur1ey.

The scope of the study is a howe1er limited.

2. Fo5"% 'o ($ %)'$- 'o+&-% @+/o& &+5')o* o I*-)+* %o5)$' 9>

The company should stri1e to engross itself deeper into the li1es of

the major fraction of the 'ndian society.i.e. the rural and the semi>

urban population.

3. 8oo%$ $$5')$ M$-)+ T.V. ad1ertisement is the most

influencing medium. o the unpopular brand manufacturer should

adopt this to ad1ertisement in the market. !ther than T.V. medium7

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other media such as friends7 family member ha1e weighted

influence in making purchase decision. o here word>of>mouth

communication plays a 1ery important role. o the marketer should

try to present message to the audience so that they can percei1ed

as what they were ad1ertising.

4. P&o#$& 8"%'o@$& &$l+')o*%)#%uring the analysis we find that

44@ of total respondents ad1ice to purchase other brand when they

were asked to gi1e ad1ised in purchasing the CTVs. o the

marketers should persuade them to make positi1e attitude.

Marketers should contact directly

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6. B&+*- #&o@o')o* 'f we see o1erall analysis7 guarantee and

warrantee play some important role in making purchase decision.

Marketers of all brand should pro1ide such type promotion. They

feel some fear about the e8istence before purchasing the brand.

This type of fear can be abolished by such type promotional

facilities.


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B. S'&o*; R>D #o$&Company should ha1e (% department to

search the new de1elopment in the feature7 uality7 price le1el7 etc.

so that the consumer can not turn to new product.

;. Po%' P"&5+%$ B$+)o& Manufacturer should watch

continuously the consumerFs post purchase action what they are

ad1ising to the other people.

D. S5$@$ ++&$*$%%

Company ha1e to pro1ide all details related

to promotion7 company scheme and discount.

?. EC5l"%)$ D$@o company ha1e to ensure dealer and sales

personal are more willing and ready to pro1ide demonstration

impro1e sound output J 1olume.

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2=. N$ P&o-"5'% $nsure that the company is inno1ati1e and

introduces new products to meet new customers needs.

22. So"*- 8o@@"*)5+')o*Makes sure the sales staff shows

better ability to listen7 understand and answer uery.

QUESTIONNAIRE

2. "hich brand of CTVs do you ha1e

,i- /P# W X ,ii- Videocon W X

,iii- Philips W X ,i1- ony W X

,1- #& W X ,1i- amsung W X

,1ii- !nida W X ,1ii- !ther W X

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3. "hich factor influence you most in making CTVs purchase decision

,i- TV ad1ertisement W X

,ii- alesman W X

,iii- ewspaper W X

,i1- (adio W X

,1- !ther W X

4. 0a1e you e1er changed you brand

,i- *es W X

,ii- o W X

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6. 'f someone takes ad1ises from you purchasing a CTVs7 which brand

you would recommend

,i- ame brand that you ha1e purchased W X

,ii- !ther brand that you ha1e not purchased W X

,iii- o comment W X


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B. %o you think that guarantee and warrantee play some role in

purchasing you brand

,i- *es W X

,ii- o W X

;. %id you agree with the ad1ice gi1en by distributor at the time of

purchasing

,i- *es W X

,ii- o W X

D. "ere you satisfied after sales ser1ice

,i- atisfied W X

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,ii- Partially atisfied W X

,iii- Partially %issatisfied W X

,i1- %issatisfied W X

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?. 'n which range of income per month you lie

,i- /elow (s.


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,1- !thers W X

BIBLIOGRAPHY

Marketing (esearch ,Author> & C /eri-,Publish by Tata Mc&raw 0ill Publishing Co. #T%.7 ew %elhi-Third $dition ,3==3-

Marketing Management ,Author> (ajan e8ana-,Publish by Tata Mc&raw 0ill Publishing Co. #T%7 ew %elhi-econd $dition ,3==2-

Marketing Management ,Author> ( e8ana-,Publish by 0imalaya Publication7 ew %elhi-inth $dition ,3===-

Marketing Management ,Author> Philip Kotler-,Publish by Pren Tice>hall of 'ndia PVT. #T%.7 ew %elhi-inth $dition ,3==3-

(esearch Methodology ,Author> /handrai-Print 3==67 second edition

()" S*+),

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