A

PROJECT REPORT
ON

CONSUMER PERCEPTION
TOWARDS
LG ELECTRONICS BRANDS

Submitted towards the partial fulfillment for the award of Degree in

BACHELOR OF BUSINESS ADMINISTRATION of
C.C.S UNIVERSITY, MEERUT
(2012-15)
SUBMITTED BY
SADDAM HUSEN
BBA (VI SEM.)
ROLL NO.- 6486540
Enrol No.M12542887
BATCH: (2012-2015)
UNDER THE SUPERVISION OF
(MR. BHARAT BHUSHAN SHARMA)

DEPARTMENT OF BBA

SHRI DRONACHARYA PG COLLEGE,

DANKOUR, GREATER NOIDA

DECLARATION
I, SADDAM HUSEN a student of Shri Dronacharya Pg College, Dankour,
Greater Noida, hereby declare that this project is the record of authentic work carried
out by me during the academic year 2012-15 and has not been submitted to any other
university or Institute towards the award of any degree.
An attempt has been made by me to provide all relevant and important details
regarding the topic to support the theoretical edifice with concrete research evidence.
This will be helpful to clean the fog surrounding the various aspect of the topic.
I hope that this project will be beneficial for the Organization.

SADDAM HUSEN
BBA (VI SEM.)
ROLL NO.- 6486540

ACKNOWLEDGEMENT
I am deeply thankful to my project guide Mr. Bharat Bhushan Sharma for his
valuable guidance and support at all time.

Lastly, I am very thankful to all those people who has supported me directly or
indirectly, and provided me all the necessary information throughout this project
report comple

SADDAM HUSEN
BBA (VI SEM.)
ROLL NO.- 6486540

CONTENTS

PREFACE

INTRODUCTION

OBJECTIVES

LITERATURE REVIEW

INDUSTRY OVERVIEW

10-14

SCOPE

15

COMPANY PROFILE

16-30

AN OVERVIEW

31-35

HISTORY

36-43

SWOT ANALYSIS

44-48

RESEARCH METHODOLOGY

49-51

GRAPHICAL DATA ANALYSIS & FINDINGS

52-86

NEW PRODUCTS LAUNCH IN MARKET

87-92

CONCLUSION

93

RECOMMENDATIONS

94

BIBLIOGRAPHY

95

ANNEXURE QUESTIONNAIRE

96-99

PREFACE
To maintain and cope up with the growing competition where a customer perception
towards LG Electronics today has an appetite for different needs. The consumer
durable Industry today has to broaden the horizon of their products and services so
that their comes a broad scope in front of a customer to choose their product on which
they can relied upon. And it is the responsibility of the company to provide their
customers with better quality of product and after sales service.
The Broad objective of the project is to know the consumer preference and its
satisfaction and opinion and their attitudes towards buying consumer durable products
in the present competitive scenario.
This project will accomplish to understand how the people are attract with factors
like technology, price, after sales service and it will also help to understand the
customers perception about the different companies & their products.

SADDAM HUSEN
BBA (VI SEM.)
ROLL NO.- 6486540

INTRODUCTION
LG Electronics India Pvt. Ltd. (LGEIL), a 100% subsidiary of LG Electronics Korea
is the largest consumer durable company in terms of market share. Since
commencement of operations in 1997, within a period of 10 years LGEIL has attained
market leadership across all product categories in the consumer durable sector. The
pace of growth is so phenomenal that to ensure smooth functioning of all the dealers
and departments have to work at the best of their ability always. LG's quest for market
leadership has been possible due to products portfolio, which caters to all segments
and more importantly its brand loyal consumers. To ensure the growth, LGEIL has
been implementing a number a programs like providing schemes, trips, gifts etc
To achieved these objectives, I had done a questionnaire survey of 300 random
customers in different areas of Delhi and on the basis of study the findings is, LG
product sale and after sale services are best as compare to other brands. The
consumers are more willing to go for finance option as compared to cash down
payment if they are provided an option. There is a less effect of brand ambassadors on
the purchase of LG products. In conclusion Samsung is future threat to LG. About
recommendation LG should adopt new promotional strategy (like assured gifts and
concentrate on after sale services as a key success factor and LG must satisfy the
needs (like margin, services, schemes).

OBJECTIVES OF THE STUDY

1) To study about the consumer perception and fully satisfaction towards LG
Electronics India Ltd.
2) To study about an identification of a companies which future threat to LGIL.
3) To study about effect of brand ambassadors on buying decision
4) To study about an effect of finance options on consumers purchase

LITERATURE REVIEW
(A) CONSUMER DURABLE INDUSTRY
Consumer: Consumers refers to individuals or households that use goods and
services generated within the economy.
Industry: An industry is the manufacturing of a good or service within a category.
Classification
Consumer durables Sector can be classified as follows:
1. Consumer Electronics includes VCD/DVD, home theatre, music players, colour
televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.
2. White Goods include dishwashers, air conditioners, water heaters, washing
machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,
microwaves, built-in appliances, tumble dryer, personal care products, etc.
3. Moulded Luggage includes plastics.
4. Clocks and Watches
5. Mobile

INDUSTRY OVERVIEW
The consumer durables market in India is valued at US $ 4.5 billions currently. In
2006, microwave ovens and air conditioners registered a growth of about 25%. Frostfree refrigerators have registered significant growth as many urban families are
replacing their old refrigerators. Refrigerator sales amounted to 4.2 millions in 2006,
whereas the production of the refrigerators went up by 17% as compared to the
preceding year. Washing machines, which have always seen poor growth, have seen
reasonable growth in 2006. More and more Indians are now buying electrical
appliances due to change in electricity scenario. The penetration level of colour
televisions (CTVs) was expected to increase 3 times by 2007.

Demand and Penetration Level of White Goods in India

Demand

1996-1997

2006-2007

2011-2012

3.43 million

8.72 million

13.14 million

149

per

1,000 319

per

1,000 451

per

1,000

Penetration level
households

households

households

In a study conducted by Frost & Sullivan and commissioned by India Semiconductor

Association (ISA), the demand for Electronic Appliances is projected to grow
exponentially at a compounded annual growth rate (CAGR) of 30%.

In billions

Source:-http://www.naukrihub.com/india/consumer-durables/scope/future

Rural sector offers huge scope for consumer durables industry, as it accounts for 70%
of the Indian population. Rural areas have the penetration level of only 2% and 0.5%
for refrigerators and washing machines respectively. The urban market and the rural
market are growing at the annual rates of 7%-10%and 25% respectively. The rural
market is growing faster than the urban market. The urban market has now largely
become a product replacement market. The bottom line is that Indian market is
changing rapidly and is showing unprecedented business opportunity.

10

INDUSTRY OUTLOOK:There has been strong competition between the major MNCs like Samsung, LG, and
Sony.
LG Electronics India Ltd. has announced its extension plan in 2006. The company is
going to invest $250 million in India by 2011.
TCL Corporation is also planning to establish a $22 million manufacturing facility in
India.
The Indian companies like Videocon Industries and Onida are also planning to
expand. Videocon has acquired Electrolux brand in India. Also, with the acquisition of
Thomson Displays by Videocon in Poland, China, and Mexico, the company is
marking its international presence.

According to isuppli Corporation (Applied Market Intelligence), country's fiscal

policy has encouraged Indian consumer electronic industry. The reduction on import
duty in the year 2005-06 has benefited many companies, such as Samsung, LG, and
Sony. These companies import their premium end products from manufacturing
facilities that are located outside India.
Indian consumers are now replacing their existing appliances with frost-free
refrigerators, split air conditioners, fully automatic washing machines, and colour
televisions (CTVs), which are boosting the sales in these categories.
Some companies like Samsung Electronics Co. Ltd. and LG Electronics India Ltd. are
now focusing on rural areas also. These companies are introducing gift schemes and
providing easy finance to capture the consumer base in rural areas.

11

INDUSTRY FINANCIALS
In Rs (million)
31/03/2005

31/03/2006

31/03/2007

Sales

37,331m

30,100m

43,096m

Sales Growth

-19.4%

43.2%

Gross Profit Margin

10.7%

6.6%

4.3%

Profit After Tax (PAT)

1,019m

940m

-1,202m

PAT Growth

-4.3%

-209.5%

Market Capitalization

1,787m

2,392m

2,359m

P/E Ratio

7.0

7.6

-7.9

13.9%

23.1%

6.9%

Return

on

Capital

Employed (ROCE)

Source:- NaukriHub, consumer-durables http://www.naukrihub.com/india/consumerdurables/overview/sector-outlook

12

Growth in 2008-09
Up-to-date data required
Consumer Durables

Growth

Air Conditioner

20-25%

Refrigerator

5-10%

Microwave Ovens

25%

Washing Machines

5-10%

Colour Televisions (CTVs)

15-20%

Black & White Televisions

-20%

Clock

10%

Watch

10%

VCDs

30%

Consumer Electronics (Overall)

9%

Source: - NaukriHub, consumer-durables http://www.naukrihub.com/india/consumer-durables/overview/sectoroutlook

13

SCOPE
In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the
world and is expected to overtake Japan in the near future to become the 3rd largest.
Indian consumer goods market is expected to reach $400 billion by 2010. India has
the youngest population amongst the major countries. There are a lot of young people
in India in different income categories. Nearly two- thirds of its population is below
the age of 35, and nearly 50 % is below 25. There are 56 million people in middle
class, who are earning US$ 4,400- US$ 21,800 a year. And there are 6 million rich
households in India. The upper-middle and high-income households in urban areas are
expected to grow to 38.2 million in 2007 as against 14.6 million in 2000.

Information regarding socioeconomic growth should be latest

14

COMPANY PROFILE
Overview
LG- Lifes Good, LG Electronics India (Pvt.) Ltd. is a wholly owned subsidiary of LG
Electronics, South Korea. It was established in 1997. In India for a decade now, LG is
the market leader in consumer electronics and is recognized as trendsetter in the
industry. The company has an impressive portfolio of consumer electronics, home
appliances, GSM/mobiles and IT products.

The MD of the company is Mr. Moon B Shin.

The company under the leadership of the MD has become a leading manufacturer of
the consumer electronics and home appliances and aspires to become the true global
digital leader and rank among top 3 consumer electronics and telecommunications
companies in the world by 2010. The basic idea that the company follows is- Great
company, Great people, which says that only great people can create a great
company.
It started as a big dream in small town of the north Indian state of Utter Pradesh -----a
township by the name of Greater Noida.
Back in 1997, it was just a piece of wilderness. Nobody, least of all the owner of a
fortune 500 company would have dared to choose it as a canvas to script a
transnational corporations success story in India, but, then, LG, if you go into the
history of the seoul-based company that has footprints in nearly all parts of the glove,
is a different kind of an entity altogether.

15

LGIL has competition yet it has managed to become one of the most admired
companies in India though innovation.
(The economic times 12 Jan 2001)
LGEIL-THE NEXT INDUSTRIAL GIANT:

LGIL is youngest

and fastest

growing consumer durable brand. LG at the no. one slot is targeted to end the year
with a turnover of us$ 1.5 billion. After China, LG plans to make India its second
largest manufacturing hub. Today, LGIL is an US$ 1456 million behemouth, with a
sprawling product range, and market leadership in all product categories. The Indian
operation of LG Electronics in fact rank among the best three in LG Electronics
world-wide.
To be sure, life was not always this good for LGEIL. The mud trail that led us to plot
no.51,Uydyog Vihar, Surajpur Kasna Road in Greater Noida was strewn with massive
potholes and road blocks.
Before 1997, LG had made two concerted attempts at penetrating the Indian market.
Unfortunately, both met with miserable failure. The first was in the form of a joint
Venture with Best vision and second a JV with a Birla Group company. For several
unaccountable reasons, both the attempts came to a naught and talks petered off as
quickly as they had started.
They came a vital policy shift. The Government of India liberalized its economic
policy and allowed transnational corporations to set up shop in India. One of the first
to respond to this invitation was LG-Korea, a corporation that strait took the dive and
this time made the strategic decision of setting up a 100 per cent subsidiary of the
Korean company in India. This time, it did not need the support of any partners.
In March 1997, K R Kim who was the serving in panama was called to India to
spearhead the Indian operations. However no sooner was the announcement made that
16

the business magazine and newspapers in India started to write us off predicting a
bleak future for the company. Some went started to write us off predicting a bleak
future for the company. Some went so far as to forecast our premature demise mainly
because of our earlier, failed attempts at breaching the Indian turf. A few industry
watchers also felt that our timing was bad, as the consumer durable market in India
was already saturated with indigenous and global players, leaving no room for another
entity; worst a foreign one at that.
LGEIL-OF, BY AND FOR INDIANS: The unchallenged trend those days at most
transnational corporations was that expatriates manned all crucial functions. All the
policies were formulated at the headquarter and then unquestioningly executed at the
various branch office. This left very little belbow room for local managers to
manoeuvre things at their end In contrast, the LGIL story in India got scripted very
differently from this, as it bore a strong local imprint. In retrospect, I think, it must
have made for a bold, cultural strategy implemented with lot of internal conviction.
The strategy got vested in three crucial decisions, which have now entered into the
very fabric of our organizational cultural. Briefly, the three decision were:
1. Indian employees would be appointed as the key decision makers at LGEIL. The
role of the Foreign Service Employees (FESs) would at best remain limited to that of
facilitators, which implied that they would co-ordinate with LG korea and provide
expertise, where needed.
2. The head of Human Resources division and the head of Sales & Marketing
division would always be Indians.
3. The Head of Manufacturing and the Head of Finance and Accounts would be FSEs
but even they would be assisted by Indian managers: who would provide key support
to these functions.
These decision became the cornerstone of LGs operational strength in India the
evident of which can be found in the following statistics :
From a turnover of US$ 31 million in 1997, it went to US$ 583 million in
2002 and further to US$ 1456 million in the last financial year 2005
Our headcount, meanwhile has grown from 402 in 1997 to 2900 in 2005

17

 In just over five-six years, we have shot to NO#1 in the refrigerators (29,4 per
cent market share); and No#1 in washing machine (30% market share) No#1
in microwave oven(36.7%market share ) products category and No#1 in the
air conditioner (34% market share )
LGEIL POLICIES:
SETTING PRECISE TARGETS: How a Korean company managed to
outsmart its foreign and Indian rivals is a story about culture change. Like the
other Korean companies that have been successful in India- Samsung and
Hyundai, Indias no -2 car producer. LG had good products and smart
marketing. But LG went further by challenging Indian work habits
negative management traits, such as ducking challenges and

tolerating

excuses, Indian work habits.. negative management traits such as duckling

challenges and tolerating excuses, are overcome with bonus schemes that can
add 80% to salaries Employee are assessed against precise targets.
BENCHMARKING AGAINST THE BEST: Around this time, we had also
begun to realize that any exercise at setting up a KPI system was incomplete
without benchmarking our parameters against the best in the industry. We also
discovered that most companies hired external(read foreign ) consultant to
handle this job that not just charged an exorbitant fee, but also took six-seven
months timeframe to accomplish y task, next year, use X/2 resources to
accomplish y, or better still 2y tasks. Sounds impossible? But we know the
system works.
THE PUSH AND THE PULL STRATEGY: from the word go, LGIL
has had a very strong customer and sales-driven ideology. Dub is as a strategic
balance of the push and pull factors. The push came from the loyal customers.
To reinforce this vision, we made it a customary practice that any LGEIL
executive, visiting any city or branch had to first do field visit of the local
market and experience the market first hand. There were no two ways about it.
The feedback had to come straight, honest and delivered direct to each one of
us. This requires that every LG brands ambassador had to meet a few local
dealers/distributors and sell one or two products over a direct interface with
the customers. Later at the corporate managers meeting, they had to make a
presentation and be quizzed on what values customers looked for in LGEIL
products could be sent back to the R&D.
18

 POLICY ON PRICE CUT: LG has also shaken things up on the marketing

side. It has driven prices down by 18% to 20%. Over the past two years LG
has steadily increased distribution outlets and the breadth of products ranges
STRONG AND SPEEDY EXECUTION: Strategy planning, as reiterated
above, has always been a dynamic process at LGEIL, and, Prompt execution
our hallmark. This brings prompt execution our hallmark. At LGEIL,execution
also became strong because we genuinely empowered our employees and held
them accountable for their, as well as the company eventual progress. This
also generated a strong sense of ownership in them. And secondly passion and
positive energy kept their emotional involvement high at all times. They were
experiencing a start-up environment, which always bring out the best in
everybody while simultaneously honing their survival instincts.
PRODUCT DIVERSITY : LGEIL had a strong portfolio of products, viz CTV, air
conditioners, washing machines, refrigerators and microwave ovens, to name just a
few , from the very beginning, we were among the few , front- running consumer
durable companies in India to command such a vast array of products. The benefits is
that even if one or two are not performing very well in the market there are others to
tide us through. In fact, there is always one product that remains on at any point of
time in the year, so there was never a rainy season.

RURAL MARKETING: By the year 2000-2001, LGEIL had a strong presence

through the length and breadth of the country. We were dong well in almost all
metropolitan cities, especially in the northern and eastern belts of the country although
we still had some catching up to do in the south and west
This was achieved in 2002-2003, when LGEIL emerged as the undisputed market
leader. Yet, it was hardly the reason to sit on our laurels. The problem of further
growth had to be addressed and there was this pressing need to explore and find new
markets. In the metros, although we were doing pretty well the cost of selling was too
steep to enable us to cut good profits as our competitors were also focused on
developing just these markets.
DUAL MARKETING: As would be clear from the preceding discussion, so far, we
had only incurred cost and made little profit in executing all these expansion plans so
19

now was the time to reap the fruits of our earlier labour and the only acceptable way
of doing that was without compromising on the quality factor. That left just one option
nip corner at the cost end.
Since this was also the only route that would not have diluted the perception of the
premium of the premium brand, the corporation started making serious efforts at
cutting cost through product innovation. A portion of even these saving we intended to
pass on to the Indian customer.
In short, our endeavour was to try and improve our market share without denting our
profitability. We had already reduced our overheads by increase capacity. Now the
next logical steps was to attack the cost end of our production.
This LGEIL concept that was later lauded by McKinsey as Premium marketing to the
masses and was communicated to the customers in the form of a strong marketing
campaign more value at much less than the price!
With this done, the affordability of our products became the bulwark of all our
marketing campaigns. This strategy caught our competitors in the form of a strong
marketing campaign. A few reacted by announcing price cuts of their own their own,
not realizing that LGEIL was not just cutting prices we were also focusing strongly on
cost innovation at our end. So while their price cuts led to more losses and pressures
on cost, ours led us to more customers and increased profitability in the end, with this
simple strategy, we managed to kill two birds with one stone.
Some of our competitors later saw through our game plan, but by then it was too late
for them to follow suit and in any case, they still had not unravelled the full strategy,
which was not to cut prices uniformly across the country, but stagger them across
different segments
Very cleverly while we were launching premium products in different categories we
were also varying our pricing strategy from state to state that kept competition
guessing and on tenterhooks all the while. I remember how one MNC sought to hike
its subsidy from the parent company simply to counter our prices strategy, at the core
of which lay simple fiscal discipline measure that they too could have followed but
probably could not because of lack of focus or strong execution.
Time and efforts were both in our favour. And the rest as they say is history.
20

LGEIL-ORGANISATIONAL STRUCTURE

CEO
Expatriate- Korean

VP
(Human Resource)

VP
(Sales & Marketing)

VP
(Manufacturing
Expatriate- Korean)

VP
(Finance & Accounts
Expatriate-Korean)

GM
Manufacturing

GM
Manufacturing

As it is clear from the figure Except for the CEO, VP-Manufacturing and VP-finance
& Accounts, all other position were held by the Indians.
This kind of people planning was deliberate and the result of a carefully 1thought-out
strategic intent, initially, when we recruited people, we took them in their respective
area of expertise, but onse the company stabilized, we started rotating them as per
their request, inclination, acquired skills and expertise.
STRONG EMPLOYEE FOUNDATION : the enormous speed at which LGEIL
grew in those days would possible without logical and rational system. The
management knew they had to do something remarkable different from competition.
So we set about recruiting people, who among other things, were perceived to be high
on:
Physical energy
Emotional energy
Next, they were provided with:
21

1. a big vision
2. Melt-ins so that all decisions could be made by consensus and nothing got
unilaterally imposed on any one
3. each was given absolute freedom within certain pre-defined parameters and
held accountable for results.
Meanwhile, the tools that the employees were encouraged to use mainly comprised of;
1.

creating total transparency relating

to the companys performance

including a discussion of sensitive issue , such as profitability

2.

Sharing with them news and details of the future line-up of our products

3.

Showing genuine respect and acceptance of everybody ideas and

suggestions

4.

Reposing total trust and faith in their intention endeavours and capabilities

5.

Building strong communication links (these details are discussed in a later

chapter )

Proactively sorting out employee grievances, even when immediate solutions were not
within as issue went beyond the scope and policies of the originations
LGEIL: LOGO

Any attempts at understanding LG would be incomplete ,without

understanding LG Logo: Life is Good. Our vision, our corporate philosophy and our
core values are all encapsulated in this simple logo. The circle in the logo represents
the globe, i.e. the full reach or our aspiration to emerge as a global company. It also
implies the face of a smiling customer, conveying that we are extremely customerfocused, or that we represent a world that is futuristic youthful and humane.

The bulls eye on the circle represent the organizations single minded focus on goals
and determination to achieve results with a smile. The white space deliberately left at
the upper right end stand for of creativity. The red colour conveys friendliness and
LGs commitment to quality, while the gray stands for technology and reliability.

Products or other exterior manifestations of a company to my mind do not reveal its

true character which is manifest in its value system, practiced philosophies and
accepted norms. Products people system is all outcome of this core value system and
this is what the LG logo conveys.
22

LGEIL is like a gushing, turbulent river, cascading at full length and speed from a
rugged mountain. A powerhouse of raw energy, it resounds unilaterally but at times
collide head on with each other but that is ok,so strong bulwarks on either direction to
contain all the roaring action of mightly river.

23

LG ELECTRONICS: VISION
LG Electronics vision for the 21st century is to become a true global digital leader
through fast growth and fast innovation and to be known as a company who can make
its worldwide customers happy through its innovative digital products and services.
LG Electronics has set its mid-term and long-term goal to rank among the top 3
electronics, information, and telecommunication firms in the world by 2010. We aim
to utilize our core capabilities of product leadership, market leadership and people
leadership and enhance our corporate culture of team work and fun workplace to
achieve our mission of becoming "2 by 10", that is, double our sales volume and
profit by year 2010.
LGEIL Product Portfolio

Flat

Panel

Display

Air

GSM

Microwave

Conditioner Ovens

IT Products

Televisions

Vacuum

Digital Audio /

Cleaner

Video

24

Refrigerators

Washing
Machine

INTERNAL CULTURE
As we all know requirement of trained and experienced Professional with the desired
mindset is the need of the hour for any Organization to Survive and Grow in this
competitive environment.
To cope with the growing expectations of business and in order to give the
organization a competitive edge to the business we in LG have streamlined the whole
system by integrating the HR fundamentals with Information Technology and have
adopted some practices unique to LG.
LG as a brand and a market leader in India attracts candidates in hordes and its
Industry leadership status serves as a major factor in attracting employees. Therefore
LG has the ability to hire the best in the industry.
Once these candidates are hired, they undergo and exhaustive induction programmed
for duration of 14 days under which the candidate is acquainted which each and every
aspect of the organization. A thorough integration with HR & Business Processes
takes place and the formulation of a KPI is done within three days of taking the
candidate onboard. Customer Department/Vendor Department interaction also takes
place.

LG as an organization takes pride in the fact that they have the highest manpower
productivity and the lowest manpower cost in comparison to the industry. Infect LG is
benchmarked in terms of manpower costing.
Employees are given a chance to visit Korea on completion of...years in LG. Apart
from
this LG also has a family ambassador programme where a dedicated mentor goes to
the workers house and talks to his family, their problems etc. and tries to make their
25

Situation better. All workers are served lunch along with the other senior employees
so that no demarcation is made. Infect lunch is first served to workers and then to the
white collar employees. On the first Monday of every month the workers meet the
MD and 50 workers amongst of them get awards for outstanding performance.

26

CORPORATE SOCIAL RESPONSIBILITY (CSR):

With the advent of globalization in India, the concept of Corporate Social
Responsibility has emerged as one of the most important aspects of corporate
behaviour. Acknowledging this responsibility is crucial for an organization's
sustainable development and future access to the global market. A definite corporate
social responsibility(CSR) plan has therefore not only become an integral part of an
organization's brand building strategy, but has also emerged as an important tool to
enhance the organization's credibility, attract potential investors and clients and
employ the best of industry talent.

As a leading corporate in India, we at LG believe that corporate contribution to

society when guided by self-interest results in long term goodwill building, and have
therefore endeavoured to assume responsibility for the needs of its people, the
environment and the society. We have consistently looked beyond its immediate
business environment to address larger societal issues. This concern springs from the
belief that a true corporate vision must embrace the wider community rather than just
shareholders, customers and suppliers. At the same time, there is nothing idealistic
about LG's CSR vision, nor is it in conflict with hard-headed business sense. It is
purely an understanding on LG's part that the time, resources and in-house
professional expertise invested in social development projects pay rich dividends to
the company and the communities in which it operates. Therefore at LG the message
is clear: creating profits can and should go hand-in-hand with generating goodwill.

27

A slew of numerous initiatives have been undertaken by LG ever since its inception in
India. The company has been actively involved in providing social benefits to the
disadvantaged sections of the society. We also have a focused plan for providing
health services to the under privileged children, undertake animal health care and
enhance professional skills of the unemployed youth.
LG India has worked jointly with Pray as, a Delhi-based NGO by undertaking
campaigns / activities for the welfare and upliftment of Underprivileged Street and
slum children and providing those services in the field of education, health care,
shelter, vocational training and other rehabilitation programmes. The company also
tied up with HELPAGE India, the country's largest voluntary organization working for
the cause and care of disadvantaged older people.
LGEIL also takes care of 24 villages around Greater Noida out of which six have been
adopted formally. The company has on its pay roll three doctors who visit these
villages daily and offer Free Medical Care, which comprises of free check ups and a
free distribution of medicines.
LG's commitment to contribute substantially to the community led to the formation of
the 'Tinkha,' a community development club consisting of 10 people. It recently
organized Blood Donation Camp where 172 employees donated blood in one day.

28

FUTURE CHALLENGES AND TRENDS

Companies like LG Electronics are exploring the online route to grow their business.
It plans to connect around 1,700 direct dealers and distributors to its recently launched
B2B portal, www.lgdealernet.com as part of its drive to become an integrated online
business undertaking by the end of 2003.

In the CTV segment, a number of new and innovative products are being launched.
Technological up gradation and pricing are the key drivers in this highly competitive
market.

Even in the case of washing machines and refrigerators, new models are being
developed. In refrigerators, companies like Electrolux (which has four established
brands in Electrolux, Kelvinator, Voltas and Allwyn) are specially targeting high-end
consumers. The demand for fully automatic washing machines is expected to increase
over semi-automatic ones. Also, second-time buyers are likely to go in for larger
machines.
Research and development is expected to be a key issue in future as players try to
keep pace with changing consumer preferences and expectations as well as the evergrowing competition

29

AN OVERVIEW
A comparative marketing study of LG Electronics vis--vis competitors(Samsung,
Haier, Videocon, Godrej ) in the area of Noida and Delhi
All progress is born of inquiry. Doubt is often better than overconfidence, for it leads
to inquiry and inquiry leads to investigation Research inculcates scientific and
inductive thinking and it promotes the development of logical habits of thinking and
organization.
Research is a common parlance refers to a search of knowledge. The advanced
learners Dictionary of current English lays down the meaning of research as a
careful investigation or inquiry especially through search for new facts in any branch
of Knowledge.
What is comparative Marketing study? In comparative marketing research we take
our competitors products and make comparison through consumer with our own
products.
Why Comparative Marketing study? Comparative marketing study/research comprise
one of the most important and fascinating task of marketing. It provides information
for marketing decision making, any problem that are identified and investigated
further by using problem solving techniques with the objective of arriving at solution.
The most important innovation in the new approach is to study simultaneously
different organizational forms of business interest representation. The aim of the
study is to point out the best (in this respect) among the alternatives that are being
studied. The final aim perhaps is not only to find the best, but also to improve it or
similar objects later on.
LG Electronics India Ltd. (LGEIL) is the youngest and fastest growing consumer
durable brand. Today, LGEIL is an US$ 1456 million behemoth, with a sprawling
product range, and market leadership in nearly all product categories.
The study will also include the survey which will be targeting about 20 dealers and
around 100 consumer in the NCR . The main emphasis in the survey will be given on
the sales of LG in comparison to its competitors in CTV, WASHING MACHINE,
REFRIGRATOR & AC segment, the consumer perception about the brand will also
be taken into consideration while conducting this survey.
30

The analysis of the buying behavior in respect to CTV, WASHING MACHINE,

REFRIGERATOR & AC will be another important component of my study. Buying
behavior of the consumer is a study of how individuals make decisions to spend their
available resources ( time, money & effort ) on consumption related items(what they
buy, why they buy, where they buy , how often they buy and use a product or service).
The heterogeneity among people across the world makes understanding consumer
buying behavior an intricate and challenging task. The consumers identity, his beliefs,
specific needs, attitudes and the kind of product and brand available in that product
category influence his buying behavior. The marketing efforts of a firm have a
profound impact on the buying decisions of customers. Therefore the attempt of my
survey will be to obtain an in- depth knowledge of the customers buying behavior.

31

OVERVIEW OF THE CONSUMER DURABLE SECTOR

Background: Prior to liberalisation, the Consumer Durables sector in India was
restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas.
Together, they controlled nearly 90% of the market. They were first superseded by
players like BPL and Videocon in the early 1990s, who invested in brand-building and
in enhancing distribution and service channels. Then, with liberalisation came a spate
of foreign players from LG Electronics to Sony to Aiwa. The graph of top three
consumer durable giant is shown blow,

Both rising living standards, especially in urban India, and easy access to consumer
finance have fuelled the demand for consumer durables in the country. Also, the entry
of a large number of foreign players means the consumer is no longer starved for
choice. But this has also resulted in an over-supply situation in recent times as growth
levels have tapered off.

32

Major Players: The major players in the consumer durables industry, operating in
different sectors such as air conditioners, washing machines, refrigerators & television
include:
Blue Star Ltd.,

Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony

Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon

International Ltd. & Thomson Ltd.
Demand/Supply: The colour television (CTV) segment of the consumer durables
industry has been hit by stagnant demand in recent times. CTV manufacturers like
BPL and Videocon have effected price cuts while others have lowered production
levels in the face of rising inventories. They have also initiated drives to clear old
stocks.
The results are mixed. For instance, demand for 14-inch CTVs was hit by the
reduction in the prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has
also slowed because of the price factor. So companies like LG and Samsung are now
expected to reduce prices in the premium categories.
As for the other segments, air conditioner demand was up in recent months. In the
case of refrigerators, a chunk of the sales are still in the direct cool segment as against
the frost-free one,
But replacement buyers tend to go for technologically improved models. Hence, sales
of frost-free refrigerators have grown steadily over a period of time.
The washing machine market consists of two broad segments - semi-automatic and
fully automatic. The first accounts for a chunk of the market. In terms of loading type,
top loading machines sell in greater numbers than front-loading ones.
In a short span of time, LG has become most preferred brand in the segment mainly
due to premium brand positioning strategies in the Indian market.
The trend of beating industry norms started with the fastest ever-nationwide launch by
LG in a period of 4 and 1/2 months with the commencement of operations in May
1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi,
in 1998, with an investment of Rs.500 Cores. This facility manufactured Colour
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the
33

year 2001, LG also commenced the home production for its eco-friendly Refrigerators
and established its assembly line for its PC Monitors at its Greater Noida
manufacturing unit. The beginning of 2003 saw the roll out of the first locally
manufactured Direct Cool Refrigerator from the plant at Greater Noida. In 2004,
LGEIL also set up its second Greenfield manufacturing unit in Pune, Maharashtra that
commences operations in October 2004. Covering over 50 acres, the facility
manufactures LCD TV, GSM Phones, Colour Televisions, Air Conditioners,
Refrigerators, Microwave Ovens Colour Monitors
Both the Indian manufacturing units has been designed with the latest technologies at
par with international standards at South Korea and are one of the most Eco-friendly
units amongst all LG manufacturing plants in the world.

34

HISTORY
Beginning (1958-1965):
The new rising star of Korean Electronics was born with a strong commitment of
promoting growth of electronics-one of the essential part of public life in guidance of
first chairman Hwui-Koo. On 15th November 1959 the first Korean made radio was
born, but the joy was short lived due to popularity of foreign goods forcing Gold star
to pull out of market but thanks to govt. drive to send radios to village. While
dramatically overcoming the initial challenges and difficulties Gold star was able to
make great strides in revenue and technological growth. In 1962 they established
Oncheong-dong plant, which provided Gold star momentum to grow.

Period of Growth (1966-1978)

In 1966, five years after T.V broadcasting services was introduced to Korea, Goldstar
succeeded in introducing first Black & White T.V set To produce precision machines,
which requires highly sophisticated and advance technology; Goldstar became the
first company to establish a central R&D centre in January 1976. In 1977 Goldstar
celebrated sales over 100 billion.

35

Period of Globalization (1979-1986)

By 1980 they advanced to hold a share in overseas market and established US
manufacturing subsidiary in Huntsville. By 1990 due to strong R&D Gold star was
able to develop many advanced products

Period of first Innovation (1987-1993)

Using the full-fledged globalization strategy Gold star galloped forward reaching new
Heights. It bolstered its move by obtaining ISO 9001 in 1994

Period OF Second Innovation (1994 till date)

January 1, 1995 Gold star again transformed itself for a new leap into the future; the
name of the company was changed from Gold star, which had been with it for 37
years, to LG Electronics as first step towards second innovation for 21st century. In
2004, LGEIL also set up its second Greenfield manufacturing unit in Pune,
Maharashtra that commences operations in October 2004 . At presently LG
introduces new global brand identity: "Stylish design and smart technology, in
products that fit our consumer's lives."

36

LGs VISION

Source:- http://www.in.lge.com/AboutUs/aboutus-companyProfile-vision.aspx

37

LG LOGO
The slogan, 'Life's Good' best expresses LGs brand's values, promises, benefits and
personality. It is an ultimate expression for what brand stands for and what they strive
to deliver continuously. LG's delightfully smart products will make your life good.

The LG Electronics Life's Good signature consists of the LG logo, seal, and the
slogan, "Life's Good" set in Charlotte Sans typeface curved around the LG symbol.
The curving of the slogan reinforces LG's personality and uniqueness. The consistent
usage of this signature clearly establishes the unique identity of the company and
unifies every division and product from LG Electronics across the globe.

QUALITY FOCUS

Delivering globally renowned products that are best in class and are of highest quality

38

The company works very hard to make products that are acceptable at the global level
and people from every corner of the world are ready to buy. The quality of the
products is of utmost important because it is the most important aspect of a product.

Quick and reliable response to the esteemed customers

Business today is customer oriented. Customer is the king. So it is very important for
any company to place its customers above all. LG is sincerely dedicated to the
customers. Here at LG, the employees work very hard to attract new customers and
make them a part of LG family while retaining the old ones.

Being market driven with focus on the customers

Today is the era of hyper-competition. There are so many alternatives available for the
same product. So in this face of competition it is important for any company to be
market driven. LG quickly adapts itself to changing market conditions and keeps itself
upbeat. But the beauty of the company is that even in this cut throat competition,
customers are not neglected. After all they are the business.
Leader in implementing 6 sigma
LG is not only innovative but also technically forward. It is the leader in introducing
technically upbeat products. It makes use of latest technology to create amazing
products.
People at LG ensure that their products are whole heartedly accepted by the
customers. The efforts are concentrated on creating and then maintaining the
customers delight.

SERVICE FOCUS

# To provide prompt and reliable service

39

LG ensures that it provides prompt and reliable service to its customers. Service is one
of the aspects on which a company can lay stress on while promoting its products.
Today if you are late then probably you are gone. So LG is always awake to the call of
its customers.

# Widespread network

LG is no small company. Its a multinational operating India. So living up to its name

and status, LG has widespread network around the world. So wherever you are, you
are never away from LG.
# LG through its consistent quality focus and service focus has managed to gain the
maximum market share today. In the past few years, it has emerged as a leader in the
consumer electronics and home appliances market. It has not only managed to stay at
top for years now but also managed to create and maintain customers delight.
Apart from maintaining the top position, LG has also managed to grab in few
prestigious awards and honours.

LET US LOOK AT THE FEW OF THESE:

Avaya Global Connect Consumer Responsiveness Award, 2008
- ET Avaya Awards
Loyalty Awards: Customer and Brand Loyalty in Consumer Durable Sector
Indiatimes Mindscape with Savile Row, 2008
Business Leader Award in Consumer Durable Sector, 2007
- NDTV
Indias Most Trusted Brands, 2007

- Brand Equity

Top Newsmaker, Consumer Durables, 2007

- Business Toady and Cirrus
Maximum

Exports,

2006

- CONCOR

40

PRODUCT PORTFOLIO
LG has a market presence in diversified products of the consumer durable industry
like consumer electronics, home appliances, mobile phones, computer products etc.
A detailed list of the product range of LG Electronics is as follows:

Business Areas & Main Products

Category

Main Products
LCD TV , Plasma Display , Display Panel, Colour Television, Home

Consumer Electronics

Theatre System, Music system, DVD Recorder/Player, MP3 & MP4

Player

Home Appliances

Computer Products

Mobile Phone

Room Air Conditioner, Commercial Air Conditioner , Refrigerator,

Washing Machine, Dishwasher, Microwave, Vacuum Cleaner

Laptop, Personal Computer, LCD monitor, CRT monitor, Optical

Storage Devices

Premium trend setter phone , Camera Phone , Music Phone , Colour

Screen GSM Handset

41

LGs FINANCIAL PERFORMANCE

LG: THE TRUE LEADER

Souce:-http://www.in.LGe.com/AboutUs/aboutus-companyProfile-factsnfig.aspx)

42

SWOT ANALYSIS OF COMPANY

Strength:

Market leader in home appliances segment.

Strong focus on technology and product quality

Aggressive sales and marketing

Board & contemporary product range to tap the consumer of middle class,
upper middle class and high class.

LG, has the extensive distribution network in the industry (47 branches, 175
area offices and over 10,000 trade partners)

Product customization for rural market- sampoorna range

Weakness:

Perceived as a mass brand and as a premium brand by consumer

Limit range in GSM phones and audios

Consumer compares LG products with its competitor Samsung, not with

another foreign brand.

Similar product categories as compare to its close competitors Samsung.

43

Opportunity:

Mobile phones segment gaining prominence

Emerging India rural market.

Positive growth trends in consumer durable segment

Lowering of import duties

Control over the white goods market, as we know highest market share in
home appliance market.

Threat:

Price sensitive customer & fierce competition

The closest competitors Samsung is also from South Korea and consumer
compare LG products with Samsung product.

Unpredictable elasticity of demand

44

MARKET SHARE COMPARISON

45

46

In the Consumer Durable Industry, LG holds the maximum market share of 25.7%
followed by Samsung and Whirlpool.

47

THE DIGITAL FUTURE OF LG

Mobile communications, digital appliances, digital displays, and digital media - LG is
paving the way for the future.

Mobile Communications
LG is a global leader in mobile communications, specializing in UMTS, CDMA, and
GSM handsets. Thanks to its wide range of wired and wireless options, the company
is becoming a force to be reckoned with on the international market.

In India LG is targeting GSM handset business in premium trend setter segment,

Camera & music segment & colour screen segment.

- Digital Appliances
LG changing homes in many ways, offering customers exceptional value and
convenience. Innovative digital appliances from 100% washer dryer with direct drive
technology, built-in LCD TV refrigerator, Light wave cooking oven (Saleroom) to Art
cool split air conditioner illustrate LG's commitment to digital convergence.

48

- Digital Display
LG offers a wide range of digital display products, equipped with customer-oriented
designs and technologies. With its LCD TVs, Full HD Plasma TVs, Ultra-slim Colour
TVs, LCD monitors LG is pulling out all the stops to remain the frontrunner in today's
digital display industry.

- Digital Media

LG has a great interest in digital media and is continually developing and producing
digital convergence products that promise to enrich the lives of its customers. Its main
focus is on producing high-definition, quality products in a variety of areas.

49

RESEARCH METHODOLOGY

50

RESEARCH METHODOLOGY
The objective of the present study can be accomplished by conducting a systematic
market research. Market research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to different marketing situations facing
the company. The marketing research process that will be adopted in the present study
will consist of the following stages:

Research Instruments:
The research instruments generally used to collect the primary data are
Questionnaires.

Questionnaires:
Questionnaires are formal set of questions prepared to collect the required
information. This is one of the most effective and popular techniques used in surveys.
However, we had to be careful when drawing up questionnaires. Before deciding on
the questions, it was important to understand the exact nature of information required
and who should be interviewed. The knowledge level of target respondents was kept
in mind, while drawing of questions. The major junk of the customer was basically
from urban background. The questionnaires were designed in English.

Sampling:
The sample is a subset of a unit of a population, collected as a representation of it. The
proper sample design is essential in marketing research.

The sample has to be

collected in such a way, that it represents the population. The sample was taken from
all the segments of the customers. Convenience sampling technique was used in the
survey conducted.

Sample Size:
The size of the sample is an important element in the research process as it has a
direct affect on the result of the research. As a size of sample increases, accuracy and
reliability of the research results also increases. However, the cost of the research also
51

increases. Therefore, we need to make a tradeoff between the accuracy and cost of
research. Type of project was another important aspect of deciding the sample size.

During this project I touched 300 customers in Delhi region

The marketing research process that will be adopted in the present study will consist
of following stages:

* Defining the problem and the research objective:

The research objective states what information is needed to solve the problem. The
objective of the research is to derive the opinion of the users and opinion of the
potential customers.

* Developing the research plan:

Once the problem is identified, the next step is to prepare a plan for getting the
information needed for the research. The present study will adopt the exploratory
approach wherein there is a need to gather large amount of information before making
a conclusion. If required, the descriptive and casual approaches may also be used.

* Analyze the collected information:

Tables were used for the analysis of the collected data. The data is also neatly
presented with the help of statistical tools such as graphs and pie charts.

* Report research findings:

This phase will mark the culmination of the marketing research effort. The report
with the research findings is a formal written document.

52

DATA ANALYSIS AND OBSERVATIONS

Q1 a) Which brand would you associate with Air Conditioner:-

Valid

L.G

Frequency

Percent

134

44.7

SAMSUNG 68

22.7

Voltas

61

20.3

Whirlpool

17

5.7

Others

20

6.7

Total

300

100.0

From the above we can see that from among the 300 respondents 44.67% prefer LG
as a brand they look forward when they think of A.C. 22.67% looks towards
Samsung, 20.33% towards Voltas, 5.67% towards whirlpool & around 7% towards
others.
Recommendation is clashing with data.

53

Q1 b) which brand would you associate with Refrigerator:Frequency

Valid

Percent

L.G

83

27.7

Samsung

66

22.0

Godrej

91

30.3

Whirlpool

43

14.3

Others

17

5.7

300

100.0

Total

From the above we can see that from among the 300 respondents 27.67% prefer LG
as a brand they look forward when they think of refrigerator, 22% looks towards
Samsung, 30.33% towards Godrej, 14.33% towards whirlpool & around 5% towards
others.

54

Q1 c) Which brand would you associate TV:-

Valid

Frequency

Percent

L.G

79

26.3

Samsung

72

24.0

Sony

115

38.3

Onida

25

8.3

Others

3.0

Total

300

100.0

From the above we can see that from among the 300 respondents 26.33% prefer LG
as a brand they look forward when they think of T.V, 24% looks towards Samsung,
38.33% towards Sony, 8.33% towards onida & around 3% towards others.

55

Q1 d) which brand would you associate Washing Machine:Frequency Percent

Valid L.G

97

32.3

Samsung 61

20.3

Onida

57

19.0

Whirpool 61

20.3

Others

24

8.0

Total

300

100.0

From the above we can see that from among the 300 respondents 32.33% prefer LG
as a brand they look forward when they think of washing machine. 20.33% looks
towards Samsung, 19% towards onida, 20.33% towards whirlpool & around 8%
towards others.

56

Q2 How much would you like to travel for your purchase:-

Frequency
Valid

Percent

0-10kms

137

45.7

10-20kms

115

38.3

20&above

48

16.0

300

100.0

Total

Around 137 respondents in the survey said that they prefer below 10 kms for making
their purchase decision where as 115 respondents said they can travel till 20kms and
only 48 said that they can even go beyond 20kms for making their purchase.

57

Q3 For making your purchase decision you would like to go for:Frequency

Valid Exclusive Showrooms

Percent

146

48.7

Dealer.Multi brand
showroom

154

51.3

Total

300

100.0

People have very less effect of Exclusive showroom or multi brand showroom. As we
can see 146 respondents prefer Exclusive showroom and only 154 prefer multi brand
showroom.

58

Q4 Whom do you find more explanatory to your sales related Queries?

Frequency
Valid

Percent

sales man

67

22.3

sales girl

134

44.7

any one

99

33.0

300

100.0

Total

Around 134 responded said that sales girls are able to explain their sales related
quarries batter, where as 67 said men are able to explain then better and around 100
said any one could so the job for them,

59

Q5 Rate these factors as they affect your purchase decision: - (on the scale of 1 to 5)
1) After sales service:Frequency
Valid

Percent

45

15.0

42

14.0

60

20.0

68

22.7

85

28.3

300

100.0

Total

From the above we can conclude that 85 respondents have service effect to maximum
on their purchase decision, 68 have a bit less than that.

60

Q5 Rate these factors as they affect your purchase design:2) Price:Frequency

Percent

Valid 1

30

10.0

65

21.7

64

21.3

92

30.7

49

16.3

300

100.0

Total

From the above we can conclude that most people have a price effect on their
purchase decision. In the survey around 92 respondents gave price a 4 grade among 1
to 5 as it effects their purchase decision.

61

Q5 Rate these factors as they affect your purchase design:3) Brand name:Frequency

Percent

Valid 1

30

10.0

52

17.3

84

28.0

76

25.3

58

19.3

300

100.0

Total

Brand name has also effect the purchase of a new product as from the 300 respondents
84 gave it 3 out of 5 and 76 gave 4 out of 5,

62

Q5 Rate these factors as they affect your purchase design: - (on the scale of 1 to 5)
4) Offers:Frequency Percent
Valid 1

47

15.7

48

16.0

59

19.7

98

32.7

48

16.0

300

100.0

Total

Around 98 respondents gave offers 4 out of 5 as an affect on their purchase decision,

63

Q6 Are you aware of Energy Efficiency Ratings?

Frequency Percent
Valid yes

184

61.3

NO

116

38.7

Total

300

100.0

From the survey it was also seen that around 61% people are aware Energy Efficiency Ratings
where as around 38% are does not know what Energy efficiency Ratings is.

64

Q7 Does Energy Efficiency Ratings affects your purchase design?

Frequency Percent
Valid yes

170

56.7

No

130

43.3

Total

300

100.0

Around 56% people said that these ratings have an effect on their purchase decision. Where as
43% said that these does not have an effect on their purchase.

65

Q8 which mode of shopping does you prefer:Frequency Percent

Valid internet shopping
retail shopping
telephonic
shopping
Others
Total

61

20.3

213

71.0

17

5.7

3.0

300

100.0

Around 71% people in the survey said that they go for retail shopping, 20% people go for
internet shopping, and 6% go for telephonic shopping.

66

Q9 which mode of purchase you like more:Frequency Percent

Valid cash purchase

180

60.0

credit purchase

120

40.0

Total

300

100.0

Most of the people prefer cash purchase. Some of the people who said credit purchase said
that not loan but credit card purchase is also good for making purchase.

67

Q10 Have you ever purchased a consumer good through finance;Frequency Percent
Valid yes

153

51.0

no

147

49.0

Total

300

100.0

The response toward this question was equal as in hi income areas the people like to go for
cash purchase were as middle income group people liked to go for credit purchase.

68

Q11 If given a option to have finance option would you like to avail it;Frequency
Valid

Percent

yes

186

62.0

no

114

38.0

Total

300

100.0

Most of the people said that they would not like to go for finance option .around 62% said
that they will not go for finance and only 38% said that they can go for it if given the option.

69

Q12 Does Brand Ambassadors effect your buying decision;-

Valid

Frequency

Percent

yes

124

41.3

no

176

58.7

Total

300

100.0

On the brand ambassador aspect 58.67% respondents replied that it does not affect their
purchase but 41.33% said that brand ambassador has an effect on their decision.

70

Q13 Rate the advertisement medium regarding creation of awareness about home
appliancesa) Television advertisements
Frequency
Valid

good

Percent

238

79.3

60

20.0

poor

.7

Total

300

100.0

normal

The awareness of television as a medium for creation of awareness is very good according to
238 respondents

71

Q13 Rate the advertisement medium regarding creation of awareness about home
appliancesb) Print medium
Frequency
Valid

Percent

Good

143

47.7

Normal

147

49.0

Poor

10

3.3

Total

300

100.0

In the survey 143 respondents said that print media is good medium for advertisement were as
147 said it is a normal medium of advertising.

72

Q13 Rate the advertisement medium regarding creation of awareness about home
appliancesc) Promotional events
Frequency
Valid

Percent

good

132

44.0

normal

129

43.0

poor

39

13.0

Total

300

100.0

132 respondent among 300 said that promotional event is a good medium of advertisement
and 129 feel it as a normal medium of advertisement.

73

Q13 Rate the advertisement medium regarding creation of awareness about home
appliancesd) Radio jingles

Frequency
Valid

Percent

Good

100

33.3

Normal

140

46.7

Poor

60

20.0

Total

300

100.0

140 people feel it as a normal medium of advertisement were as 100 people fell it as good
medium for advertisement.

74

Q14 How satisfied are you with your last appliance purchased with reference to:Price

Frequency
Valid

extremely satisfied

Percent
88

29.3

satisfied

165

55.0

neutral

44

14.7

dissatisfied

.7

extremely dissatisfied

.3

300

100.0

Total

Among the sample 165 were satisfied with the price of the product which the purchase last,
88 are extremely satisfied, 44 fell neutral about the price.

75

Q14 How satisfied are you with your last appliance purchased with reference to:After sales service

Frequency
Valid

extremely satisfied

Percent
73

24.3

Satisfied

153

51.0

Neutral

61

20.3

Dissatisfied

12

4.0

.3

300

100.0

extremely dissatisfied
Total

Among the sample 153 were satisfied with the after sales service of the product which the
purchased lastly, 73 are extremely satisfied, 61 fell neutral about the after sales service.

76

Q14 How satisfied are you with your last appliance purchased with reference to: product design

Frequency
Valid

extremely satisfied

Percent

110

36.7

satisfied

132

44.0

neutral

49

16.3

dissatisfied

2.7

extremely dissatisfied

.3

300

100.0

Total

Among the sample 132 were satisfied with the product design of the product which the
purchased last, 110 are extremely satisfied, 49 fell neutral.

Q14 How satisfied are you with your last appliance purchased with reference to:Product features
77

Valid

Frequency

Percent

96

32.0

Satisfied

143

47.7

Neutral

45

15.0

Dissatisfied

2.7

extremely dissatisfied

2.7

Total

300

100.0

extremely satisfied

Among the sample 143 were satisfied with the product features which the purchased lastly, 96
are extremely satisfied, 45 fell neutral.

Q15 How much would you like to spend on following home appliances:-

78

Frequency
Valid

5000-15000

Percent
137

45.7

15000-30000

136

45.3

30000&above

27

9.0

300

100.0

Total

Among the survey 45.67% were the people who like to spend 5000 to 15000 for their
purchase of a new A.C, 45.33% were the people who like to spend 15000-30000 and 9% were
those who like to spend more than 30000

79

Q15 How much would you like to spend on following home appliances:-

Valid

Frequency

Percent

5000-15000

137

45.7

15000-30000

147

49.0

30000&above

16

5.3

Total

300

100.0

Among the survey 45.67% were the people who like to spend 5000 to 15000 for their
purchase of a new fridge, 49% were the people who like to spend 15000-30000 and 5.33%
were those who like to spend more than 30000

80

Q15 How much would you like to spend on following home appliances:-

Valid

Frequency

Percent

5000=15000

126

42.0

15000-30000

109

36.3

30000&above

65

21.7

Total

300

100.0

Among the survey 42% were the people who like to spend 5000 to 15000 for their purchase
of a new T.V, 36.33% were the people who like to spend 15000-30000 and 21.67 were those
who like to spend more than 30000.

81

Q15 How much would you like to spend on following home appliances:-

Valid

Frequency

Percent

5000-15000

180

60.0

15000-30000

106

35.3

30000&above

14

4.7

Total

300

100.0

Among the survey 60% were the people who like to spend 5000 to 15000 for their purchase
of a new washing machine, 35.33% were the people who like to spend 15000-30000 and
4.67% were those who like to spend more than 30000

82

Distance you like to travel for purchase * Shop you like to visit for purchase
decision Cross tabulation
Count
Shop you like to visit for
purchase decision
Exclusive
Showrooms

Delear.Multi
brand
showroom

Total

Distance you like to travel 0-10kms

for purchase
10-20kms

68

69

137

60

55

115

20&above

18

30

48

146

154

300

Total

During the survey the only 16% respondent liked to visit shops which are more than
20kms away from there home. Where as 84% respondent told that they would like to
travel within 20klm for there purchase.

How satisfied are you with your last purchase(price) * Company of which last
appliance purchased Cross tabulation
Count
Company of which last appliance
purchased
L.G
How satisfied are
you with your last
purchase(price)

Samsung

Sony

Others

Total

extremely satisfied

35

25

14

14

88

satisfied

58

42

24

41

165

neutral

15

12

12

44

dissatisfied

extremely
dissatisfied

110

80

50

60

300

Total

31% of the people who have purchased LG products recently were satisfied with price
if the product which they have purchased which is maximum as compared to other
companies.

83

How satisfied are you with your last purchase(after sales service) * Company of which
last appliance purchased Cross tabulation
Count
Company of which last appliance
purchased
L.G
How satisfied are you extremely satisfied
with your last
satisfied
purchase(after sales
neutral
service)
dissatisfied

Samsung

Others

Total

33

19

12

73

56

41

24

32

153

19

17

11

14

61

12

110

80

50

60

300

extremely
dissatisfied
Total

Sony

Around 30% people were satisfied with the after sales service which was provided by
the company to them. Were as only 20% of the respondents who have gone for
Samsung were satisfied with the after sales service provided to them by the company.

How satisfied are you with your last purchase(product design) * Company of which last
appliance purchased Cross tabulation
Count
Company of which last appliance
purchased
L.G
How satisfied are you extremely satisfied
with your last
satisfied
purchase(product
neutral
design)
dissatisfied
extremely
dissatisfied
Total

Samsung

Sony

Others

46

26

17

21

110

44

38

21

29

132

18

14

10

49

110

80

50

60

300

30% of the LG consumers were also satisfied with the product design, were as only
12% consumers of Sony were satisfied with the product design

84

Total

How satisfied are you with your last purchase(product features) * Company of which
last appliance purchased Cross tabulation
Count
Company of which last appliance
purchased
L.G
How satisfied are you extremely satisfied
with your last
satisfied
purchase(product
neutral
features)
dissatisfied
extremely
dissatisfied
Total

Samsung

Sony

Others

Total

36

28

16

16

96

53

39

21

30

143

12

10

11

12

45

110

80

50

60

300

From the sample of 300. 30% people who have purchased LG recently were satisfied
from the product features which were maximum as compared to others.

(C) CONCLUSION
85

LG electronics is having a good market in A.C segment but in other 3

segments it just has 25% market share

The study shows that 44% of respondents fells sales girls are able to
explain/handle quarries of the consumer better than the sales man.

71% people prefer to go more for retail shopping than other modes of
shopping.

60% People prefer cash purchase but 51% also said that they would like to
avail finance option if given.

Price of the product has a direct effect on the purchase decision of a consumer.
People prefer to purchase product ranging between 5-15 thousands in case of
T.V, A.C, washing machine, and fridge.

Brand ambassador doesnt make much of difference in buying decision of

consumers but television plays a vital role in creating awareness among people
rather then other media.

Most of the people are aware of EER and it does affect the purchase decision
of consumers.

After sales service is the most important criteria on the basis of which
consumer take their decision of buying the particular product, then comes the
price followed by brand name.

86

(D) RECOMMENDATIONS

LG should put more focus on fridge, washing machine, T.V & microwave as
compared to A.C.

The company should employ more of sales girls as they are able to handle the
quarries of consumer in a more polite manner than men.

The company should come up with more to television advertisements as it is a

good medium for promotions.

More finance schemes can be provided to the consumer as it helps in

increasing the sales of the company.

LG should keep reasonable price so that consumers can afford it as consumers

are price sensitive.

L.G should work more on after sales service, as it is an important criteria on

which consumer look upon before buying any new product.

Brand ambassador doesnt make much difference, so L.G can save money here
by reducing the cost.

87

NEW PRODUCT LAUNCH IN MARKET

AND
CONSUMER TOWARDS LG BRANDS

88

RESEARCH DESIGN

The objective of the present study can be accomplished by conducting a systematic

market research. Market research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to different marketing situations facing
the company. The marketing research process that will be adopted in the present study
will consist of the following stages:

RESEARCH

To know the feedback of last promotion, from the consumers in the Delhi
region.

To view the readability of the new LCD brand launched by LG electronics.

To enhance the promotion techniques.

SOURCES
The sources of the data collection include: Consumers in Delhi region
Prospect of new LCD buyers in the market.

METHODS
To consolidate the research, I have adopted the following data collection tools and
methods. Are: Questionnaire method

# Sample Size:
The size of the sample is an important element in the research process as it has a
direct affect on the result of the research. However, the cost of the research also
increases. Therefore, we need to make a trade off between the accuracy and cost of
research. Type of project was another important aspect of deciding the sample size.

During this project we touched 30 customers in Delhi region

89

DATA ANALYSIS AND OBSERVATIONS

Q1 Viewing the following LCD TV photograph, are you able to recognise the model:Frequency
Valid

L.G

Percent
16

53.3

SONY

20.0

SAMSUNG

26.7

30

100.0

Total

The survey showed that among the sample of 30 respondents 53.33% people were able to
recognise the new LCD launched by L.G electronics, but the in this percentage more who
were aware about the new LCD were the respondents of Lajpat Nagar and Malviya Nagar
were as people of Sarita Vihar were less aware about the product.

90

Q2 If I say LCD TV, which advertisement comes first in your mind:Frequency

Valid

L.G

Percent

10

33.3

SAMSUNG

16.7

SONY

16.7

ONIDA

3.3

Do not remember

30.0

30

100.0

Total

On this question around 10 respondents replied that they remember the new L.G LCD
advertisement. Were as those saying Samsung or Sony were 5 each. Around 9 respondents
were those who were not able to remember any advertisement of a LCD.

91

Q3 Are You planning to Buy a LCD in near future:Frequency Percent

Valid Yes

19

63.3

No

11

36.7

Total

30

100.0

Around 63% from the sample size said they are willing to but a new LCD in near future as it
is the latest technology it takes less of space & it can be hanged on wall.
People also take LCD as status symbol which was one of the reasons for their purchase
decision.

92

Q4 Please tells the brand you would like to buy:-

Frequency
Valid

Percent

L.G

16.7

SAMSUNG

23.3

15

50.0

10.0

30

100.0

SONY
OTHERS
Total

The most of the respondents on brand they like to but opted for Sony with a maximum
Of 15 respondents from among the 30 sample size said that they like to go for Sony.7 said that
they will go for Samsung & 5 said that they will go for L.G.

93

CONCLUSION
From the survey it was found that the people are able to recognise the new LCD
launch by L.G electronics but it higher segment of the society but the middle segment
is still a bit unaware of the new LCD launch. The consumers are still preferring for
Sony when the think of going for a new LCD.

94

RECOMMENDATIONS

The company should go for some more advertising and promotional events in which it
can show case the product directly to the consumers.
The company should also come up with some promotional Schemes for consumers
which are able to attract the consumers towards L.G products. The pricing should also
be made in comparison to Sony & Samsung as these are the major two competitors.

95

BIBLIOGRAPHY
1. Internet Sites

www.google.com

www.economictimes.com

www.in.lge.com

www.naukrihub.com

www.ficci.com

2. Magazines and Newspapers.

Economic Times

Business India

Business Standard

The Times Of India

3. Books

Marketing Management By Philip Kotler

Marketing Research

4. Product Manual, LG Electronics

96

APPENDICES

APPENDIX 1: Questionnaire for Project:-1

APPENDIX 2: Questionnaire for Project:-2

97

QUESTIONNAIRE
Q1 swhich brand would you associate with the following products:1) Air Conditioner:a) LG

b) Samsung

c) Voltas

d) Whirlpool

e) others (specify)

2) Refrigerator:a) LG

b) Samsung

c) Godrej

d) Whirlpool

e) others (specify)

c) Sony

d) Onida

e) others (specify)

c) Onida

d) Whirlpool

3) TV:a) LG

b) Samsung

4) Washing Machine:a) LG

b) Samsung

e) others (specify)

Q2 How much would you like to travel for your purchase:1) 0-10 kms

2) 10 20 kms

3) 20 kms & above

Q3 for making your purchase decision you would like to go for:1) Exclusive Showrooms

2) Dealer/Multi Brand Showrooms

Q4 Whom do you find more explanatory to your sales related Queries?

1) Sales man

2) Sales girl

3) Any one

Q5 Rate these factors as they affect your purchase design: - (on the scale of 1 to 5)
1) After sales service:2) Price:3) Brand name:4) Offers:Q6 Are you aware of Energy Efficiency Ratings?
1) Yes

2) NO

Q7 Does Energy Efficiency Ratings affects your purchase design?

1) Yes

2) NO
98

Q8 which mode of shopping do you prefer:1) Internet shopping

2) Retail Shopping

3) Telephonic shopping

4) Other (specify)
Q9 which mode of purchase you like more:1) Cash purchase

2) Credit Purchase

Q10 Have you ever purchased a consumer good through finance;1) Yes

2) No

Q11 If given a option to have finance option would you like to avail it;1) Yes

2) No

Q12 Does Brand Ambassadors effect your buying decision;1) Yes

2) No

Q13 Rate the following advertisement mediums regarding creation of awareness

about home appliancesGood

Normal

Poor

a) Television advertisements
b) Print medium
c) Promotional events
d) Radio jingles
Q14 How satisfied are you with your last appliance purchased with reference to
following:Appliance purchased:Company name:EXTREMELY
SATISFIED

EXTREMELY
SATISFIED

PRICE
After Sales
service
Product
Design
Product
Features
99

NEUTRAL

DISSATISFIED

DISSATISFIED

Q15 How much would you like to spend on following home appliances:5000-15000

15000-30000

30000&above

AC
Fridge
T.V
Washing Machine
Name:Age:Gender:Place:---------------------------------------- Thanking you ------------------------------

100

QUESTIONNAIRE 2
Q1

Q2

Viewing the following LCD TV photograph, are you able to recognise the model:-

If I say LCD TV, which advertisement comes first in your mind.

If yes, pleases tell some thing about the advertisement, which you remember:-

Q3

Are You planning to Buy a LCD in near future:a) Yes

Q4

b) no

Please tell the brand you would like to buy:a) LG

b) Samsung

c) Sony d) Onida

Name:Gender:Place:-

101

e) Any other, _____________