Project Report on

Formulation of Marketing Strategies to improve market

share of LG microwave Owen

Submitted by
RAJESH L. KAMBLE

REG NO:-520951125

2010-2011

Sikkim Manipal University

India.

1
 karRox Technologies Ltd.
Center code no:-02754
Project Report

Formulation of marketing strategies to improve market

share of LG microwave Owen
Submitted in partial fulfillment of the requirement for
the degree of masters of business administration
[marketing] of Sikkim Manipal University. India
By
Rajesh L. kamble
Reg no:-520951125
2010 - 2011.
Sikkim Manipal University of Health, Medical &
Technological sciences, Distance education wing
syndicate house, manipal – 576104

2
 DECLARATION

I hereby declare that the project report entitled

Formulation of marketing strategies to improve market
share of LG Microwave Owen submitted in partial
fulfillment of the requirement for the degree of
masters business of administration to Sikkim manipal
university, India is my original work and not submitted
for the award of any other degree, diploma, fellowship
or any other similar title prize.

Place: - Mumbai Rajesh L. Kamble

Date: - Reg no:-520951125

3
 Examiner’s Certification

The project report of Mr. Rajesh L. Kamble entitled

Formulation of marketing strategies to improve market
share of LG microwave oven is approved and is
acceptable in quality and form.

Internal Examiner External Examiner

Name: - Name:-
Designation: - Designation:-

4
 UNIVERSITY STUDY CENTER CERTIFICATION.

This is to certify that the project report entitled

Formulation of marketing strategies to improve market
share of LG Microwave oven. Submitted in partial
fulfillment of the requirements for the degree of
masters of business administration of Sikkim Manipal
University of health, medical and technological
sciences.
Mr. Rajesh L. Kamble has work under my supervision
and guidance and that no part of this report has been
submitted for the award of any title or prize and that
the work has not been publish in any journal or
magazine

Reg no.520951125 Certified

Guide name

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 Acknowledgement

I cannot adequately express my sense of gratitude to

my guide for his constant guidance encouragement
and support throughout the project and giving me his
valuable time.
Also I would like to thank my classmate, my colleagues
in office who are working in related industry and have
provided me valuable information and help to
complete the study.

Rajesh L. kamble

Formulation of Marketing Strategies to Improve

Market Share of LG Microwave Ovens.
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 Evolution…..Trend…...and Future…..In India

In partial fulfillment for the requirement for masters in

business administration in marketing

2010-2011

Reg no.-520951125

MBA
Sikkim Manipal University.

TABLE OF CONTENT

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Sr.no Content Page.no.
01 EXECUTIVE SUMMARY

02 SCOPE OF PROJECT

03 INTRODUCTION

04 HISTORY OF COMPANY

05 LG GROUP

06 LG BRAND IDENTITY

07 CODE OF CONDUCT

08 LG : CHALLENGES IN INDIA

09 RESEARCH AND DEVELOPMENT

10 STRATEGIES ADOPTED

11 CUSTOMER SERVICE

12 OBJECTIVE OF RESEARCH

13 RESEARCH METHODOLOGY

14 DATA COLLECTION

15 SAMPLING METHDOOLOGY

16 DATA ANALYSIS

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17 CUSTOMER SERVEY FINDINGS

18 RECOMMENDATION AND SUGGESTION

19 BIBILOGRAPHY

Executive summary

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Indian Consumer durables market used to be dominated by few domestic players like
godrej Voltas allwyn and kalvinater. But post liberalization much foreign company have
entered into Indian market dethroning the Indian player and dominating Indian market
the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND
WASHING MACHINE

India being the second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG
the two Korean companies has been maintaining the lead in the industries with LG
being leader in almost all the categories.

The rural market is growing faster than the urban market, although the penetration
level is much lower .The Microwave oven segment is expected to the largest
contributing segment to the overall growth the industry. The rising income levels
double-income families and consumer awareness are the main growth drivers of the
industries.

Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs 500
crore in India this year in research and development, brand-building and other
marketing initiatives.

The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is
investing Rs 360 crore on brand-building and other marketing initiatives and around Rs
140 crore on research and development, besides launching new platforms in
information technology and related areas,

LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be
expanded from the existing 22 to 40 cities by next month, The campaign, for which IT
infrastructure has been set up, includes the company’s response to customer

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complaint within two hours. The fixing time for complaints varies from one hour to a
maximum of 24 hours.

Scope of project

This project gives me great exposure to the consumer durable market because it
includes product knowledge and the filed job in which I have visited the store comes
under the region of Mumbai. During this project I also took part in the exhibition of LG
which held for the purpose branding and awareness of LG product. This project helps
me to know the market practically. My job was during this project to see the market
share and also the display share of the LG product (Microwave oven) in the store. LG
always insist the 50% display share of LG product (Microwave oven) because LG
believes that “JO DIKHTA HAI WO BIKTA HAI”.

Key findings:-

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

2. By the actual monthly sale of particular store we came to know the capacity of
the store and how much product can they sale.

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

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

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

5. Many dealers were facing the problem of after sale service because there is no
follow up calls from LG.

6. Demo calls also not done properly.

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 INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa
came into the picture. Today, these players control the major share of the
consumer durables market.

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

growing very fast because of rise in living standards, easy access to consumer
finance, and wide range of choice, as many foreign players are entering in the
market

With the increase in income levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for consumer durables
has increased significantly. Products like washing machines, air conditioners,
microwave ovens, color televisions are no longer considered luxury items. However,
there are still very few players in categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the emergence of MNCs, exchange

offers, discounts, and intense competition. The market share of MNCs in consumer
durables sector is 65%. MNC's major target is the growing middle class of India.
MNCs offer superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of the
local market, their well-acknowledged brands, and hold over wide distribution
network. However, the penetration level of the consumer durables is still low in
India.

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 Classification of consumer durables sector

1. Consumer electronic include vcd/dvd, home theatre, music player, color television,
cameras, camcorders, portable audio, Hi-Fi, etc

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

refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,
microwaves oven, built-in appliances, Tumble dryer, personal care product etc.

3. Molded luggage include plastics

4. Clocks and watches

5. Mobile phones

Scope

1. In term of purchasing power parity (ppp), India is the 4th largest economy in the
world and overtake Japan in the near future become the 3rd largest.

2. Indian consumer durable market is expected to reach $400 billion by on 2010

3. India has the youngest population amongst the major countries. There are lot of
people in the different income categories nearly the two third population is
below the age of 35 and nearly 50% is below 25.

4. There are 56 million people in middle class, who are earning us$4,400-
US$21,800 a year. And there are 6 million rich household in India.

5. The upper-middle and high-income household in urban areas are expected to

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

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Opportunity

1. In India the penetration level of white goods is lower as compared to other

developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Threats

Higher import duties on row materials.

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

Brands in consumer electronics sector

MNCs NATIONAL REGIONAL

LG )
SAMSUNG ) KOREA SAMSUNG SOLO
HYUNDAI ) VIDEOCON VJ-SERIES

TCL ) CHINA GODREJ GMC-30E

HAIER ) VOLTAS WESTON

PHILIPS ) HOLLAND HD 4495

PANASONIC ) ONE TOUCH SENSOR

HITACHI )
SANSUI ) JAPAN MW8554W

WHIRLPOOL ) GR3345W
ELECTROLUX

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 TODAY Consumer durables sector is characterized by the emergence of MNCs,

exchange offers, discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNC's major target is the growing middle class of
India. MNCs offer superior technology to the

LG, SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.

The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is
investing Rs 360 crore on brand-building and other marketing initiatives and around Rs
140 crore on research and development, besides launching new platforms in
information technology and related areas,

LG Electronics is one of the leading companies in the field of electronics with a global
presence in many countries. . Before briefing, I have divided the introduction part into
three main sub parts.

1. LG Global
2. LG India
3. LG Mumbai

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History of company
The company was originally established in 1958 as Gold Star, producing radios, TVs,
refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from
which the abbreviation of LG was derived. The current "Life's good" slogan is a
acronym. 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 Gold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the
United States.

Global Operation

LG Electronics is playing an active role in the world market with its assertive global
business policy. As a result, LG Electronics controls 110 local subsidiaries in the world
with around 82,000 executive and employees.

LG Group
1. LG. Philips
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom

Business areas and main products

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Mobile communications
(a) CDMA Handsets,
(b) GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones
Digital appliance

a) Air Conditioners,

b) Refrigerators,
c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) Home Net,

g) Compressors for Air Conditioners and Refrigerators

Digital display
a) Plasma TVs,
b) LCD TVs,

c) Micro Display Panel TVs,

d) Monitors,

e) PDP Modules,

f) OLED Panels,

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 g) USB Memory,

h) Flat Panel Computer Monitors

Digital media
a) Home Theater Systems,
b) DVD Recorders,

c) Super Multi DVD Rewriters,

d) CD±RW,

e) Notebook PCs,

f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players,

j) New Karaoke Systems,

k) Car Infotainment

LG BRAND IDENTITY:-

The brand of LG is delightfully smart. LG strives to enhance the customer’s life and
lifestyle with intelligent features, institutive functionality and exceptional performance.
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The brand platform:-

The LG brand is composed of four basic elements –

1. Value
2. Promise
3. Benefits
4. Personality

The Brands core Value that never changes.

a. Trust,
b. Innovation,
c. People
d. Passion

The benefits that are consistently delivered to the customer includes

Reliable products
Simple design
Ease of use
Extraordinary Experience

Personality describes the human characteristic that are expressed to the customer
through
Trustworthy, Considerate
Practical, Friendly

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The Internal Culture of LG:
LG practices four cultures

1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth

According to LG, the Learning Culture continuously helps the employee to learn more
and more to develop the habit of continuous learning.

Boundary less Environment means that there is no difference between the levels of
employees. There is transparency between the work and mutual understanding
between all the employees.

A carrier is highly growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a new comer
the company is very helpful in the overall growth of personality.

Growth in LG is very high for those who are in the company and for those who want to
join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is
one of the examples of growth.

Mission
The mission of LG is to provide the customers with utmost satisfaction through
leadership.

The fundamental policy of development is to secure product leadership that the

Customers may have the utmost satisfaction.

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Product Leadership

We are focusing on six development areas to become the product leader.

1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving

Quality Innovation
The policy of quality assurance is to provide customers with utmost satisfaction by
supplying zero defects.

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

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed through
fair management practices and constantly developing our business skill.
a) Honest with our customer
b) Providing great values to customer through constant innovation & and
development.
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c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer

Code of conduct of LG:

1. Responsibility and obligations to customers :

• Respect for Customers
• Creating Value
• Providing Value

2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations

3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners

4 Basic Ethics for Employees

• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest

5 Corporate Responsibilities to employees

• Respect for human dignity
• Fair Treatment
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 • Promoting Creativity

6 Responsibilities to society and country

• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation

LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea
was established in January 1997 after clearance from the Foreign Investment
Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater
Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

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

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

Microwave Ovens.

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

60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG
has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are
exclusive stores. Brand shoppes will be placed in the premium segment and the target
audience will comprise buyers interested in premium and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a
more interactive environment and additional lifestyle orientation on display so that the
customer can actually experience the LG products in his or her own home settings.

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LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is
planning a brand new image. To attract inspirational and young consumers across
India, company will roll out a new marketing strategy. The exercise will cost the
company Rs 360 crore.

LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today.

LG Electronics is continually providing, superior technology products & value for

money to more than 50 lakh households in India. LGEIL is celebrating the 11th
anniversary this year.

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

largest R&D centre outside Korea. We at LGSI focus on niche technology areas such as
mobile application development, digital video broadcast and biometrics software and
support LG Electronics with our expertise. Motivated by a passion for technology, a
strong work culture and loyalty to the organization, we are determined to see LG
become one of the top three brands globally.

Prominent consumer electronic company, LG Electronics Inc. has said that it expects
the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin,
managing director of LG Electronics India has said that the company has earmarked 4.8
billion rupees for investment purpose in India this year. The said money will be used to
market as well as manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India,
informed that its sales of GSM mobile phones, color televisions, air conditioners and
other household goods in the Indian market was to the tune of 95 billion rupees ($2.4
billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion
rupees.

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In order to achieve its target, Shin said LG Electronics will concentrate on catering to
the high-end consumer market which will help boost sales this year. India churns out
six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG
exports to 40 countries.

India challenges
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in
India).
3. High import duty
4. Competition from local market players and other MNCs in consumer durable
segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as
Innovative marketing strategy
1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring the
1999 world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its products.
LG invested more than US$ 8 million on advertising and marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTV has
“Golden eye technology” Air conditioner has “Health air system” and microwave
ovens have the “Health wave system”.

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Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manufactures TV refrigerator in India at
manufacturing facility at Noida and Pune. LGEI had already commissioned contract
manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce
cost. LGEI implementing the “Digital manufacturing system” (DMS) as the cost cutting
innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier.

R&D potential
LG has the research and development facilities in Bangalore and Mumbai. Both the
unit carry out R&D department for the domestic as well as the parent company it also
dose customize R&D for the specific countries to which it export product.

Regional channel and wide distribution network

1. LG has adopted the regional distribution channel in India. All the distributers
work directly with the company. This has resulted in quicker rotation of the
stock and better penetration into B, C, D, class market.
2. LG also follows the stock rotation policy rather then dumping stock on channel
partners.

Product localization:-
1. Product localization is the key strategy used by the LG
2. LG came out with Hindi and regional language menus on its TVs.
3. Introduced the low-priced “Cineplus” and “sampooma” for the rural market.
4. LG was the first brand to introduce gaming in TVs in continuations of its
association with cricket LG introduce cricket game in CTVs

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MAJOR KEY SUCCESS FACTORS
1. Innovative marketing - LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup and followed it up in 2003 as well.

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

duties, LG manufactures PC monitors and refrigerators in India at its
manufacturing facility at Noida, Delhi.

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

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

out with Hindi and regional language menus on its TV.

5. Regional distribution model - This has resulted in quicker rotation of stocks and
better penetration into the B, C and D class markets.

6. Leveraging India’s IT advantage - LG Electronics has awarded a contract to

develop IT solutions to LG Soft India (LGSI). The project involves development
and support for ERP, SCM, CRM and IT-enabled services for LG.

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 Strategies adopted by the organization

LG follows 10 commandments which are as follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success

3. Transparent and fast communication-open communication

4. Update market -knowledge –Demographics

5. Win –Win relationship with the trade partners

6. Customer is the king

7. Even Billing –Road to ach supplier A

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

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

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

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LG market share of LG Microwave ovens in its consumer segments:-

LG position of Microwave oven in various states in India

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This analysis is based on the ORG survey conducted by LG which represent the LG
position of different consumer durables in various states in India. I select different
brand in different category as per the market share and the demand of product in
market. This analysis represents the LG market position during the period of March
2008. It shows that LG has captured maximum market share almost in every category.
LG and Samsung have the maximum market in Microwave oven market but LG
dominate the almost all the category in consumer durable.

Prominent consumer electronic company, LG Electronics Inc. has said that it expects
the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin,
managing director of LG Electronics India has said that the company has earmarked 4.8
billion rupees for investment purpose in India this year. The said money will be used to
market as well as manufacture new products.

LG Electronics, informed that its sales of Microwave oven and other household goods
in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per
Shin's estimate, the sales in 2008 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on catering to
the high-end consumer market which will help boost sales this year. India churns out
six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG
exports to 40 countries. Shin remarked that the company was targeting an increase of
exports to $300 million in 2008 from $230 million in 2007.

.The key strategies being implemented include increasing the number of its regional
offices from six to eight. LG has split its southern regional office into two, one
comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra
Pradesh and Karnataka. In addition, it has split one of its northern regional offices by
making Uttar Pradesh a separate region after spinning it out from Delhi NCR. The other
four regional offices take care of East, Gujarat and Madhya Pradesh, Maharashtra &
Goa and Punjab, Haryana & Rajasthan respectively.
30
In the coming year, LG is also repositioning its marketing spends, resulting in a
significant increase in its mass media expenditure for better brand visibility. LG had a
marketing budget of Rs 320 crore in 2007 with a 60:40 split in favor of below-the-line
activities. Next year, the company plans to increase the share of mass media even as
overall marketing spends would be raised by just about 10-15%.

Distribution and Marketing

The company has number of dealers and warehouses. They have LG exclusive shopee.
For the marketing of the products a number of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the attention of the
costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meeting at several time in the year
7. LG divide dealer in gold silver etc. category to know the performance of the
dealers.
8. They have their sales persons at various sub dealer store and at mordent trade
store for particularly for the promotion of the LG product.
9. LG also uses the radio FM for the promotion activities.
10.Also provide capon and scratch card for festive season.

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 CUSTOMER SERVICE

The best and the biggest international brands are here in India –but the irony if it all:
where is the after-sales-service? So integral to a brand, so critical for its success and so
taken for granted in developed markets! In India, after sales service is, for want of a
better description, the pits. So what’s stopping the best companies from pulling out all
the stops when it comes to providing the best service? Do customers expect for too
much? Or is it that in India they don’t really care. Brand Equity fanned out to MNC as
well as Indian consumer durable companies, stockiest and dealers, analysts and market
researchers to get a feel of what’s really keeping after sales from being used as a
cutting edge marketing tool in pushing products across categories.

Customers support following the purchase of a product or service. In some cases, after-
sales service can be almost as important as the initial purchase. The manufacturer,
retailer, or service provider determines what is included in any warranty (or guarantee)
package. This will include the duration of the warranty traditionally one year from the
date of purchase, but increasingly two or more year’s maintenance and/or
replacement policy, items included/excluded, labor costs, and speed of response. In
the case of a service provider, after-sales service might include additional training or
helpdesk availability. Of equal importance is the customer's perception of the degree
of willingness with which a supplier deals with a question or complaint, speed of
response, and action taken.

LG also had a big problem of after sale service in India. During my project I also came to
know that after sale service becomes the big issue in Mumbai region. Customers as
well as dealer were facing the problem of after sale service. Because of this problem
many dealer in Mumbai region were not ready to sale LG product. So it becomes the
big issue.

32
But LG has taken some solid steps towards improving customer’s perception and
experience of after sales service. Because it very important in competitive market to
provide the best service.

L G Electronics has signed a memorandum of understanding with 23 Industrial Training

Institutes to strengthen its after sales service in India.

The company aims to recruit 10,000 people by the end of this year as a part of its
branding strategy to focus on service and move away from discounting.

L G Electronics has identified eight states with high after sales service call rates to ink
the deals with the ITI. Y V Verma, director HR and management system, LG Electronics
said, "The Company was trying to find a solution for effective after sales service since
last two years. There is a huge need of trained manpower for the after sales service to
align with the company's expansion and focus on the GSM mobiles and the personal
computer segments."

1. In the initial phase the company has entered into agreements with ITIs in the
states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in
the last leg of signing with Uttar Pradesh.

2. LG Microwave oven, with 1200 service centers, has already recruited 300
students and plans to beef up the number to 10,000 by the year-end.

3. "The company has offered a scholarship to the selected students for the last six
months of their training programme,"

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

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

33
5. The company moved away from the discounting strategy since last year and is
putting thrust on the quality and service in its brand communication to position
LG as a premium consumer Microwave oven.

6. At the top, the Service Division in Korea reports to the Global CMO. (As
mentioned in Dermot’s public interview in ET on Wednesday). This shows
commitment that Service must be made into a marketing differentiator, and
leveraged thus.

7. LG has the widest service network across the country; some estimates put it at a
significant multiple of service-infrastructure from our nearest competitor. While
the sale size may also be a nice multiple from nearest, it shows the company is
ready to put our money where our mouth is.

8. The company has introduced a 211 service - once you register your complaint,
we will call you back in 2 hours (hence 2), set up an appointment for the next
convenient day for you (hence the first 1), and show up in the promised 1-hour
slot (hence the second 1). If the next convenient day for you is the next day,
that’s great too. It’s a disruptive action in an industry (including LG) having
traditionally shied away from its service responsibilities, and thus not leveraging
any mileage from it.

9. The company is promoting 211 through ATL, probably the first time after-sales
service is being communicated in this fashion by any product company. You may
have seen the TV commercial or heard the radio advert or seen the newspaper
ad or in-shop posters, both of which revolve around prompt response.

10.The first LG-owned service centre opened in Gurgaon. (Service in India generally
works through authorized service centers, in LG’s case they work exclusively for
LG.) A company-owned service centre tries that much harder, knows things
better, and can even contribute as a revenue center.
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 Objective of the project

Primary objective

 The main objective of filed survey during the project was to find out the market
share of the LG Microwave oven and also calculate the display share.

 Find out the positional dealer who can sale the LG Microwave oven in large
volume.

 The main objective of research was to identify potential dealer and development
these dealer. So LG can make them their direct dealer.

 This will ease the dependence on the some big dealer like Maharashtra and
Mahaveer electronics.

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

Secondary objective

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

 While purchasing the consumer durables which parameter is most important for
the consumer?

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

 How frequently consumers change the consumer durable?

 To enhances the knowledge of consumer durable market.

 To increases the knowledge consumer durable product of LG.

 To enhances the knowledge about the marketing and branding activity.

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 Research Methodology:

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

proper well-organized research plan, it is impossible to complete the project and
reach to any conclusion. The project was based on the survey plan. The main
objective of survey was to collect appropriate data, which work as a base for
drawing conclusion and getting result.

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

problem. Research methodology not only talks of the methods but also logic behind
the methods used in the context of a research study and it explains why a particular
method has been used in the preference of the other methods

Research design:

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

market as well as marketing approaches available to the researchers. In fact, it is the
key to the evolution of successful marketing strategies and programmers. It is an
important tool to study buyer’s behavior, consumption pattern, brand loyalty, and
focus market changes. A research design specifies the methods and procedures for
conducting a particular study. According to Kerlinger, “Research Design is a plan,
conceptual structure, and strategy of investigation conceived as to obtain answers to
research questions and to control variance.

36
Types of research are:

 Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or income.
A descriptive study may be necessary in cases when a researcher is interested in
knowing the proportion of people in a given population who have in particular manner,
making projections of a certain thing, or determining the relationship between two or
more variables. The objective of such study is to answer the “who, what, when, where
and how” of the subject under investigation. There is a general feeling that descriptive
studies are factual and very simple. This is not necessarily true. Descriptive study can
be complex, demanding a high degree of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot
be changed every now and then. It is therefore necessary, the researcher give
sufficient thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be used
in this purpose. Descriptive studies can be divided into two broad categories: Cross
Sectional and Longitudinal Sectional. A cross sectional study is concerned with a
sample of elements from a given population. Thus, it may deal with household,
dealers, retail stores, or other entities. Data on a number of characteristics from
sample elements are collected and analyzed. Cross sectional studies are of two types:
Field study and Survey. Although the distinction between them is not clear- cut , there
are some practical differences, which need different techniques and skills. Field studies
are ex-post-factor scientific inquiries that aim at finding the relations and interrelations
among variables in a real setting. Such studies are done in live situations like
communities, schools, factories, and organizations.
37
Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained
from a sample of large population .Besides; it is economical as more information can
be collected per unit of cost. In addition, it is obvious that a sample survey needs less
time than a census inquiry. Descriptive research includes survey and fact finding
enquiries of different kinds of the major purpose. Descriptive research is description of
the state of affairs, as it exists at present. The main characteristic of this method is that
the researcher has no control over the variables; he can only report what has
happened or what is happening. The methods of research utilized in descriptive
research are survey methods of all kinds including comparative and co relational
methods. The reason for using such needs to be flexible in its approach, but a
descriptive study in contrast tends to be rigid and its approach cannot be changed
every now and then.

Data collection methods:

After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One of
the important tools for conducting market research is the availability of necessary and
useful data.

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

 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature studies
are important sources of secondary data.

38
  Data analysis and interpretation

1. Questionnaires
2. Pie chart and Bar chart

Questionnaires:

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

Pie chart:

This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors, which
are proportional to the values they represent. The total value is represented by the full
create. The diagram bar chart can make comparison among the various components or
between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it consist of
a number of whispered bar, which originate from a common base line and are equal
widths. The lengths of the bards are proportional to the value they represent.

Preparation of report:

The report was based on the analysis and presented with the findings and suggestions.
The sample of the questionnaires is attached with the report itself.

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Sampling Methodology:

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

No. of questions in questionnaires for customer: 06

No. of question related to LG product: 03

No. of people met during the research: 200

No. of respondents during the research: 50

Sample unit

Professionals, Business man,

Employees, House wife,

Working women, Students

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Analysis:

Q1. Have you purchased any consumer durable during Exhibitions?

 Yes
 No

Inferences

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

2. Only 35 % people have purchased.

3. It shows that consumers are coming in the exhibition for knowledge of product
and also they want to know that weather there is actual price difference in
exhibition and shop or not.

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

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

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

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

 Price
 Product feature
 Brand
 Service
 Durability

Inference

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

are very price sensitive. They give more importance to price over the brand.

2. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price.

3. 19% to product feature Service 16% and durability 9% Service is also a big factor
for the customer they are less interested in the durability.

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Q3. From where you prefer buying consumer durables

 Exhibitions
 Co. shoppe
 Showroom

Inference:

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

customers buys from Exhibitions.

2. 47% customers are prefer to buy from the showrooms because the showrooms
are more convenient to customers they also think that these shops give more
discounts.

3. People are less interested to buy from the exhibition they only visit the
exhibition for price quotation of the product and the comparison of the product.

43
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons

 Attractive Price
 Service
 Demonstrations
 Offers

Inference

1. Customers buy from showrooms because of the service and convenience. These
are two main factors.

2. Customers are preferred to buy from the showroom because of they think that
these convenient store may provide good after sell service.

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

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

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

 1-3 years

 3-5 years

 5-10 years

 More than 10 years

INFERENCE

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

people do not change consumer durable frequently.

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

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

durable frequently.

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 CUSTOMER SURVEY FINDINGS

1. Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes
Demonstration, Exhibition & Even Sponsors.

2. From the survey it was found out that the majority of customers don’t buy LG
Microwave oven from exhibitions. They just visit the exhibitions to see the co.
latest model.

3. They want to buy from the showrooms or from co. showrooms. For them service
is important .Beside convenience and other factors service is key factor.

4. Also majority of customers do not want any financing scheme for purchasing the
LG Microwave oven.

5. There was heavy rush on weekends so large numbers of ISD’s were appointed
that day. Also the live demo calls helps in selling. Exchange offers also generate
sale.

6. Customers are also now very choosy in buying the product and it is important for
the company to make loyal customer of their brand.

7. In survey we found that LG Microwave oven has captured maximum market

share in every category. LG Microwave oven dominates CTV, LCD, and
Refrigerator, and Washing machine, category.

8. LG and Samsung have bottle neck competition in Microwave oven category.

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

10.Customers are also now very choosy in buying the product and it is important for
the company to make loyal customer of their brand.

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RECOMMENDATIONS AND SUGGESTIONS

1. Exhibitions do not help to generate so much sells but they should be conducted
regularly. This helps in generating awareness regarding the product in customers
which ultimately helps in sales.

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

(LG LRM2060) was advertised. Company should always focus on service.

3. Display share should be increased where there is less than 50% as LG also
believes that “JO DIKHTA HAI WO BIKTA HAI”.

4. Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the company’s
profit.

5. Company should concentrate more on its major drivers. Branding and

promotions should be done effectively as it creates a long lasting image in the
mind of customers.

6. Company should also cater to the needs of sub dealers as some of the sub
dealers have potential of high sales.

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 LIMITATIONS

Every study has certain limitations. In my study, also there were certain limitations,
which I could not able to solve.

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

2. My research work period witness the biggest ups and downs in product sale of
different brands, which affected the perception of the customer. This was
biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete my
research, for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
5. I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
6. The sample size is also very small which represent my research on consumer
behavior.
My study is not recognizable in whole INDIA as well as outside Ranchi due to the
above limitations and less area coverage.

48
BIBLIOGRAPHY

 www.lgindia.com
 www.google.com
 www.wikipedia.com
 Business world
 Business today
 LG magazine
 Economics times News paper
 Times of India

The Microwave Oven Market size is estimated at USD 17.78 billion in 2024, and is expected to reach
USD 22.26 billion by 2029, growing at a CAGR of greater than 4.60% during the forecast period
(2024-2029).

The rising standard of living of customers, an increasing number of nuclear families, and surging
demand for frozen and ready-to-eat food are key factors driving the market growth. The increasing
number of working women and the preoccupied schedules of people in urban cities are likely to fuel
the demand for ovens. The robust growth of the hospitality sector and rising catering contracts for
large-scale functions, seminars, and other social gatherings are also expected to drive the demand for
commercial appliances over the forecast period.

Economic factors, such as the rising population, increasing disposable income of consumers, and
growing awareness about different cooking appliances, such as microwave ovens, grills, and
barbeques, are projected to impact the market positively. The convection segment of the market is
poised to account for half of the overall market.

The demand for a microwave oven may gain strong support from the rising consumer spending on
kitchen appliances. The adoption of kitchen and home appliances is forecast to witness robust growth,
owing to the increasing rate of urbanization. High power consumption is expected to be a dominant
restraint for the growth of the microwave oven market. However, several companies are expected to
develop products that consume less energy and offer a more significant advantage over their traditional
counterparts.

The rising trend of connectivity between home appliances and innovations, such as inverter-based
microwave ovens, is projected to create new opportunities in the market. The steady growth of sales of
smart kitchen appliances is also an opportunity for the market players. Post-COVID, the microwave

49
oven market has experienced a significant boost in sales due to increased home cooking and
convenience.

Microwave Oven Market Trends

Residential Application is Dominating the Market

In the case of the residential application segment, the most significant driver is the changing lifestyles
and food consumption preferences of people, with more consumers shifting toward ready-to-eat and
frozen food products. In the previous year, the residential application segment accounted for a large
revenue share, and it is likely to expand at a healthy CAGR over the forecast period. A large part of
new households comprises working singles who prefer to dine out rather than set up their kitchens.
This may be a drawback for the residential segment of the market. However, this trend is estimated to
boost the culture of quick-service restaurants, cafes, and small eateries, which, in turn, is expected to
work in favor of the market.

Asia-Pacific is Expected to Witness the Highest Growth

Traditional cooking equipment is still a prominent choice among many of the population in the
developed regions of Asian countries. The microwave oven industry has substantial growth prospects
in the Asia-Pacific region as most sales are expected to originate from customers purchasing
microwaves for the first time. The growing need for energy-efficient kitchen appliances and demand
for smart appliances would have a positive impact on the market expansion.

50
Microwave Oven Industry Overview

The microwave oven market is fragmented. The competition in the market is estimated to intensify,
with innovations in new products and the presence of national and international companies. Some of
the most important players in the microwave oven market are Illinois Tool Works Inc., Guangdong
Galanz Enterprises Co. Ltd, Sharp Corporation, LG Electronics Inc., Electrolux AB, and Alto-Shaam
Inc., among others.

Microwave Oven Market Leaders

1. LG Electronics Inc.
2. Alto-Shaam Inc.

3. Brandt

4. Panasonic Corporation

5. Breville

Microwave Oven Market News

 August 2023: LG Electronics India and ITC Foods have announced a strategic partnership to
redefine cooking experiences for consumers in India. The partnership combines two leading
companies’ expertise to offer consumers a more convenient, healthier, and more versatile
cooking experience.
 January 2022: Blue Apron announced a strategic partnership with Panasonic Consumer
Electronics Company, a global leader in developing innovative products and solutions.
Through this collaboration, Blue Apron will offer customers convenient cooking options
combining select recipes with fast and delicious techniques using the Panasonic 4-in-1 Multi-
Oven.

Microwave Oven Industry Segmentation

A microwave oven is a relatively small, boxlike oven that raises food temperature by subjecting it to a
high-frequency electromagnetic field. The study offers a complete background analysis of the
microwave oven market, including the analysis and forecast of market size, market share, industry
trends, growth drivers, and vendors. It also includes insights into market segmentation by type,
application, and geography. Additionally, the report features qualitative and quantitative assessments

51
by analyzing the data gathered from industry analysts and market participants across the critical points
in the industry’s value chain.

The Microwave Oven Market is segmented by type (grill, solo, and convection), distribution channel
(multi-brand stores, exclusive stores, online, and other distribution channels), application (residential
and commercial), and geography (North America, Europe, Asia-Pacific, South America, and Middle
East & Africa).

The report offers market size and forecasts for the market in terms of revenue (USD) for all the above
segments.

Grill
By Type
Solo

Convection

Multi-brand Stores

By Distribution Channel Exclusive Stores

Online Stores

Other Distribution Channels

By End-User Residential

Commercial

By Geography

North America

52
Europe

Asia-Pacific

South America

Middle East & Africa

53