DISSERTATION

ON
MARKET ACCEPTABILITY OF LG REFRIGERATOR

Submitted in partial fulfillment of the requirements for the Two Year Full Time Post
Graduate Diploma in Management

By:Ajay Bisth

Under the guidence

Enrolment No. 13158

Batch-2011-13

of
Prof. Gaurav Tanwar

PGDM (Marketing)

I.T.S Institute of Management

46, Knowledge Park-III, Greater Noida

CERTIFICATE OF ORIGINALITY

I hereby declare that this Dissertation is my own work and that, to the best of my knowledge
and belief, it reproduces no material previously published or written that has been accepted
for the award of any other degree of diploma, except where due acknowledgement has been
made in the text.
.

Ajay Bisht
Enrollment No. 13158
Date:

CERTIFICATE

This is to certify that Ajay Bisht PGDM (2011-13 Batch) a student of I.T.S- Institute of
Management, Greater Noida has undertaken

project on MARKET ACCEPTABILITY OF LG

REFRIGERATOR The survey, data collection, & analysis work for preparing the project has been

carried out by the student in partial fulfilment of the requirements for the award of PGDM,
under my guidance and supervision.

I am satisfied with the work of Ajay Bisht.

Prof. Gaurav Tanwar

Faculty Mentor
(Signature)

ACKNOWLEDGEMENT
I would like to take this opportunity and thank all those who assisted and coordinated me in the completion of this project.
I wish to place all my gratitude to my organizational mentor of LG for cooperating in
the completion of this project.
I would also like to acknowledge my sincer gratitude to my college mentor
Prof. Gaurav Tanwar for helping me in the project work.
I also convey my sincer gratitude to Director General sir, Director sir and all the faculty
members of ITS-IM.
Finally I am thankful to my family members and friends for their support and
encouragement.

EXECUTIVE SUMMARY

The dissertation was started on 19th of November 2012 to 19th January 2013 in LG pvt Ltd. After
knowing all the relevant information about the refrigerator varieties available in the market, under the
guidance of Mr. Tarun Singh (Area Sales Manager). Initially I use to know the customer perception and
satisfaction of LG .My work area started in South Delhi.
My main objective is to know the perception of the customers therefore I took up the total sales
responsibility of the idea telecom in South Delhi. For this I used the method of personal interviews and
questionnaires. Along with the distributors a study of retailers was conducted to better understand the
grievances and identify the gaps. For this I visited around 100 customers in the area and spoke to them.

CONTENTS

CHAPTER
1.

2.

3.

4.
5.

TITLE
INTRODUCTION

INTRODUCTION ABOUT THE COMPANY

INTRODUCTION ABOUT THE PRODUCT

PROBLEM ENVIRONMENT

PROBLEM DEFINATION

OBJECTIVES OF THE RESEARCH

PROBLEM AREA

COMPETIVE BRAND

RESEARCH DESIGN

RESEARCH PROCESS

DATA COLLECTION

SAMPELING PLAN

ANALYSIS AND FINDINGS

LIMITATION

6.

CONCLUTION AND RECOMMENDATION

7.

APPENDIX SAMPLE QUESTION

8.

BIBLIOGRAPHY

PAGE NO.

INTRODUCTION

INTRODUCTION ABOUT THE

COMPANY

The company was originally established in 1958 as GoldStar, producing radios, TVs,
refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which
the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym.
Before the corporate name change to LG, household products were sold under the brand
name of Lucky, while electronic products were sold under the brand name of GoldStar
the GoldStar brand is still perceived as a discount brand. 'In 1994 Goldstar gained
sponsorship from the 3DO Company to make the first 3DO Interactive multiplayer. It
was very pricey, but is examined to be the best out of all of the 3DO Systems.
In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the
United States.

Home Appliances

LG Electronics Digital Appliance Company is a global technology innovator, a trendsetter in style, and a pioneer in home appliance convergence, providing customers with
exceptional value and convenience.
LG Electronics has brought new life style choices to the home with a series of premium
products, including steam washing machines, the worlds first Internet and TV
refrigerator, and ARTCOOL air conditioners, Digital convergence, health conscious and
eco-friendly features, and innovative styles are major traits of LG Electronics premium
products.
As the worlds number one provider of air conditioners and with more than half a century
of expertise in the home appliance industry, LG Electronics is setting new standers for
home appliance innovation, style, and convergence to enhance peoples everyday lives.
Main Products

Residential Air Conditioners

LG Electronics holds the record for the greatest sales in air
conditioners in the world since 2000. What's more, the newly
launched, energy-saving, stylish ARTCOOL Gallery series, which
uses a new refrigerant, is set to boost LG Electronics' sales, helping it
to retain its number one position in the air conditioning industry.

Commercial Air Conditioners

LG provides a wide range of tailored commercial air
conditioning products suited to buildings in a variety of
types and sizes. Its Multi V Plus is one of the world's highest
capacity units, essential for high-rise buildings. LG's Multi
V Sync provides simultaneous heating and cooling with one
outdoor unit, ensuring optimal temperature conditions. LG's
Multi V Space is also well known for being economical,
aesthetically pleasing, and is ideal for sophisticated,
luxurious living spaces.

Washing Machines
LG is currently the bestselling brand for front-loading washers in the
United States and is stocked by major American distributors such as
Best Buy, Home Depot, and Sears. Their innovative and stylish frontloading STEAM washer was voted number one by several consumer
magazines (Consumer Reports, JD Power Magazine) for two
consecutive years (2006, 2007) achieving official recognition as the
best product on the market. LG Digital Appliance Company provides
the largest capacity washing machines, customized to each individual
market.

Refrigerators
LG Electronics analyzes the hidden needs of customers and reflects
these in its products. LG Electronics sells convenient, spacious, and
stylish refrigerators, e.g. the Icy Elegant Style refrigerator, which is
mostly sold in Europe, and the French Doors (side-by-side) SxS
refrigerators that are divided into three sections in the U.S.

Cooking Appliances
LG's compact, light wave oven SolarDOM, combines the functions
of a convection oven, grill, and microwave oven, allowing chefs to
cook a variety of food much faster than in conventional ovens. It also
helps to retain nutrients and flavour.
LG's Built-In Kitchen creates the most convenient and efficient
kitchen environment by seamlessly combining individual home
appliance products into well-designed packages. LG's built-in
packages include cooking appliances, dishwashers and refrigerators.
LG's Built-in Oven with e-Cookbook on its LCD panel helps anyone
become a world-class cook while saving time and effort.

Vacuum Cleaners
The LG Electronics Kompressor vacuum cleaner is a very unique
product. It compresses any dust that is collected into a mass that can
be easily removed. What's more, LG Electronics also offers a Steam
Vacuum Cleaner that can vacuum and steam clean a rug at the same
time and a robot cleaner that cleans your place while you are away.

Home Network Appliances

LG's Home Network is an intelligent home appliance
networking system that connects all home appliances,
enabling easy access and exchange of information via the
Internet or home server. One example of this is the
Interactive TV Refrigerator that offers real convenience. It
has a 15-inch TFT LCD touch-screen TV that can also
accommodate a DVD player. It provides useful information
such as weather information and pre-loaded cooking recipes

INTRODUCTION
ABOUT THE PRODUCT

Page 5 of 44

FRESH FOR LIFE

The fresh new range of LG Direct Cool Refrigerator with new extra features are the perfect range
since 2010.Health meets convenience and style in this abundantly spacious and technologically
superior range of LG Direct Cool Refrigerators .While advanced features like Vitamin Plus ensure
extra health, unique features like Beauty and Care Box & Freeze and Cook Box extend the realm
of our cooling requirements. Also, LG Direct Cool Refrigerators are, the fastest in Ice making. High
on energy efficiency, these refrigerators can work without a stabilizer too. And to top it all, this
beautifully crafted range adds extra style and elegance to our home with its splendidly stylish door
designs and exquisite floral patterns.

Without putting extra load on the compressor, LG Direct Cool Refrigerators make ice fastest.
Get ice up to 20% faster with specially designed patented ice try and that too without pressing a
button. So whenever you get an idea to surprise your loved one with a chilled drink, youll be
ready.

A technology that supplies vitamins to fruits which keep them fresh and extend this shelf life
longer than other ordinary refrigerator compartments. Its anti-oxidant properties preserve up to
70% more vitamin C.

The compressor has a better energy efficiency ratio and consumes less power. It can operate at
voltage as low as 135V and as high 290V, which means your refrigerator can work without
stabilizer.

The art finish enhances the style factor. It blends with your interiors and gives a fresh forever
look

.
A special airtight box is provided in the freezer section, that can be directly placed into the
microwave oven for defrosting.

A place to store all your medical and beauty products separately. So now no more looking
around at the time of need.

The deodorizer prevents mixing of smell and freshness inside the refrigerator.

The specially designed cover of vegetable box prevents excess moisture to ensure that
fruits and vegetables remain nutritious, healthy & fresh. So fill it with as much as you
want.

It restricts the entry of bacteria and moulds inside the refrigerator. It can be easily
removed and washed.

Now all Direct cool Refrigerators come with 5 star Rating, which allows you to save up
to Rs. 3033/- on your annual electricity bill.

An intelligent control system alarms you if the door remains open for a minute. Saving
cooling loss, it keeps food fresh and healthy.

No matter how big, the refrigerator is one part of your home that is always stuffed. Thats why,
the new direct cool range comes with the Unique Base Drawer. The drawer can be used to store
items that do not require cooling.

With a high capacity of 21 litters, the spacious Vegetable Box allows you to stock more
vegetables for your ever growing family and sets you free from visiting the market every now
and then.

On the clean top you can keep a vase, photo frame etc. to give your refrigerator a more stylish
look.

The soft Veg Basket stores green chilies, lemon, garlic etc. Separately.

Shelves made of toughened glass are capable of holding heavy utensils. These can also be
adjusted as per need and can take load as heavy as 175kg.^

MRP

9,800

MRP

10,600

MRP

12,400

MRP

14,650

MRP

16,550

MRP

16,300

MRP

15,500

MRP

16,750

MRP

13,000

MRP

13,750

The all new range of LG Direct Cool Refrigerators is available in an array of colours and
patterns. From a thrilling Peppy red to a serene Blue Lagoon, a scintillating cosmic inox to an
earthy wooden Tango, a mesmerizing Hazel Green to a delightful Pink Blossom; pick one that
matches your style the most.

PROBLEM ENVIRONMENT

Problem Background
The Project was to ascertain the standing condition of LG refrigerator in some
areas of Durgapur. Those areas are Bidhannagar and City Centre where the resident belongs
to upper and middle income group. It is also true that the resident did not co-operate with me
properly while answering the question. LG refrigerator being launched new in the market
compare to Whirlpool and others therefore a vast market is already captured by them. The
service centers of Whirlpool and others are reachable compare to the service centers of LG
refrigerator. Another reason is that majority people residing in this area have a perception that
Whirlpool is the best model for refrigerator with respect to durability, compressor, price,
service and other features compared to LG refrigerator.

OBJECTIVES OF THE RESEARCH

The objective was to find out the market share of LG refrigerator, advantages and
disadvantages from dealers as well as customers and to find out what problems they are
facing with the LG refrigerator so that the problems can be re solved to increase the sale.
Aim: Ascertain the position and scope in the Market Acceptability of LG direct cool
refrigerator compared to the competitive brands in the market based on the findings
that is Pie Chart, Bar Charts and SWOT analysis.
Objective of the project:
Primary Objective
To study the product profile of LG refrigerator.
The main objective of field survey during the project work was to find out the market
share of the LG refrigerator and also calculate the display share.
To find out the positional dealer who can sale the LG refrigerator in large volume.
To find out the problem faced by the dealer in sales and distribution.
To ascertain the position and scope in the market of LG refrigerator on the basis of Pie
Chart and Bar Chart for identifying and appointing probable reason for its position.
To suggest areas of improvements and ways to improve the performance of the brand
LG in the areas where the project and the related survey for the fulfillment of the
project.
To evaluate and measure the brand LGs competitors and rank the brands accordingly.
Secondary Objective
The objective was to find out the parameters which are important for the consumer
while purchasing the refrigerator.
To find out whether consumers prefer the financial facility for buying LG refrigerator.
To find out how frequently consumers change their refrigerator.
To enhance the knowledge of consumer preferences about durable products.
To increase the knowledge about LG refrigerator.
To enhance the knowledge about the marketing activity.

Competitive Brands
The competitive brands of LG refrigerator are :-

Whirlpool

Godrej

Samsung

Kelvinator

METHODOLOGY

RESEARCH METHODOLOGY
Research Methodology is considered as the nerve of the project. Without a proper
well-organized research plan, it 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 the market acceptability of a product by studying the buyers behavior, consumption
pattern, brand loyalty and by focusing 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.

Research Process
The research process involves identifying a management problem or opportunity,
translating that problem or opportunity into a research problem and collecting, analyzing
and reporting the informations specified in the research problem.

Data Collection Method

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:- The informations collected by me through survey are the primary
data. For primary data collection, we have to plan the following important aspects.
Sampling
Research Instruments
Data analysis and interpretation
1 Questionnaire,
2 Pie chart,
3. Bar chart.

Questionnaire:- This is the most popular tool for the data collection. A questionnaire
contains questions that the researcher wishes to ask his respondents which is always guided
by the objective of the survey.

Pie chart :- This is a useful diagram to represent data which are divided into a number of
categories. This diagram consists of a circle 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.

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 with equal
widths. The length of the bars is proportional to the value they represent.

Secondary Data:- The informations which are collected by the company for their
personal survey. The companies profile, journals and various literature studies are
important sources of secondary data. The secondary datas are collected from

 Information given by the company

World Wide Wave.
Preparation of Report:- The report was based on the analysis and presented with
the findings and suggestions. The sample of the basic questionnaire is attached with
the report itself.

Sampling Plan
Sampling plan consist of the random selection of customer with respect to the area
they live in. Information for sampling to these customers is done with the help of
questionnaire based on questions related to LG as well as other refrigerators and other
different supporting questions.
Sample Unit: Employees, Home makers, working women, Teen agers, Children,
Students, Retired citizens and others.

ANALYSIS
AND

FINDINGS

User and non user of refrigerator

Catagory
User
Non-user
Total

No. of respondent
44
6
50

Percentage (%) of respondent

88 %
12 %
100

12%

USER
NON-USER
88%

FINDINGS
Out of the total 50 customers

88 % of the respondents use refrigerator.

12 % of the respondents are non users of refrigerator.

BRAND ACCEPTENCE OF REFRIGERATOR

Brand
Kelvenator
Whirlpool
Samsung
Godrej
LG

No. of users
14
8
6
5
11

Percentage (%) of users

31.81 %
18.18 %
13.63 %
11.38 %
25

35
30
25
20
15
10
5
0

FINDINGS

Out of the total 44 users of refrigerator

31.81 % of the customers are users of Kelvenator
18.18 % of the customers are users of Whirlpool
13.63 % of the customers are users of Samsung
11.38 % of the customers are users of Godrej
25 % of the customers are users of LG

KELVENATOR
WHIRLPOOL
SAMSUNG
GODREJ
LG

TYPE OF REFRIGERATOR
Type
Single Door
Double Door

No. of respondents
35
9

Percentage (%) of respondent

79.54 %
20.46 %

20%

SINGLE DOOR
DOUBLE DOOR

80%

FINDINGS
Out of the total 44 users of refrigerator
79.45 % use single door
20.46 % use double door

OPINION REGRADING
REFRIGERATOR AS A SOCIAL STATUS
Opinion
Yes
No
Both
Total

No of respondent Percentage (%) of refrigerator

14
31.81%
25
56.81 %
5
11.38 %
44
100 %

11%
32%
YES
NO
57%

BOTH

FINDINGS
Out of the total 44 users of refrigerator
According to 31.81 % of the total respondent, refrigerator is
regarded as a social status.
According to 56.81 % of the total respondent, refrigerator serves the
purpose of need in daily life.
According to 11.38 % of the total respondent, refrigerator is
Regarded both as a social status as well as utility product solving the
purpose of need.

FUTURE PROSPECT of refrigerator

Opinion
Yes
No
Total

No. of respondent
16
34
50

Percentage (%) of respondent

32
68
100

32%

YES
68%

FINDINGS

NO

RANK the following brands

Brand
No. of
Kelvenator
Whirlpool
Samsung
Godrej
LG
Total

respondent
10
14
5
8
13
50

Percentage (%) of respondent

20 %
28 %
10 %
16 %
26 %
100 %

KELVENATOR
WHIRLPOOL
SAMSUNG
GODREJ
LG

BRAND AWARENESS OF LG REFRIGERATOR

Category
Aware
Non-aware
Total

No. of respondent
38
12
50

Percentage (%) of respondent

76 %
24 %
100 %

24%

AWARE
76%

NON-AWARE

OPINION ABOUT REFRIGERATOR

Brand
Kelvenator
Whirlpool
Samsung
Godrej
LG

Compressor
10
14
8
12
6

Durability
10
12
4
14
4

Colour
4
8
6
4
22

Design
7
7
10
8
18

25
20
15
10

KELVINATOR
WHIRPOOL
SAMSUNG

5
0

GODREJ
LG

Price
8
14
5
10
13

FACILITY DURIG PURCHASE

Mode of purchase No. of customers Percentage % of customers
Installment
15
34.09 %
Cash
29
65.91 %
Total
50
100 %

34%
INSTALLMENT
CASH
66%

PARAMETERS INFLUENCING IN PURCHASE

20
18
16
14
12
10
8
6
4
2
0

PARAMETERS

No. of respondent

Price

20

Product features

Brand

12

Service

Durability

PRICE
PRODUCT FEATURES
BRAND
SERVICE
DURABILITY

limitations

LIMITATIONS
Every study has certain limitations. In my study there is also certain limitation
which I am unable to solve.
1. The Market Analysis was conducted in a very small area.
2. My analysis work period witnessed many ups and downs in product sale of
different brands, which effected the perceptions of the customers. This was a drawback
of my study.
3. The time factor was also important for me. I had only six months to complete
my analysis, for which a full- fledged report was in sufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
5. The sample size is very small which represent my analysis on market
acceptability of LG refrigerator.
6. 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 analysis.

CONCLUSION
AND
RECOMMENDATIONS

Conclusion and Recommendations

To generate awareness regarding the LG refrigerator among customers , which
ultimately help in sales
Advertising of new product line of LG refrigerator would keep the existing
customers as well as prospects with up-to-date information.
Company should always focus on after sales service.
Display share should be increased where there is less than 50 % offer, as we
know, JO DIKTA HAI WO BIKTA HAI.
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.
Branding and promotions should be done effectively as it creates a long lasting
image in the mind of customers.
Customers consider quality as their first preference with respect to price, so the
company should give more stress on this.
As there is a tough competition between Whirlpool and LG, it is necessary to take
measure to overcome the area of down fall in LG with respect to Whirlpool.
The training to-in-shop demonstration should be given at frequent time interval
and feedback should be considered positively.
The dealer should be keep better relations with customers and insist
manufacturers to improve product service quality with updated technology.

APPENDIX

BIBLIOGRAPHY

www.lgindia .com
www.google.com
[email protected]
Times of India
Businss world