arvindpatelsynopsis-110822094540-phpapp02

CHAPTER IExecutive summary

Executive summary

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 Nodal, near Delhi, in 1998, with an investment of Rs 500 Corers.

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.LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new image.With respect to consumer oriented products of LG brand. there are certain theories narrated as operant conditioning and projective theory. Based on secondary source certain theoretical aspects are also included as a part of study. Then after concentration is given to the primary research. It includes the analysis and results of survey which was focuses on consumers behavior towards products of LG brand. The survey was conducted with the help of structured questionnaire. At last conclusion of report, findings and suggestions was given based on study of secondary source as well as primary research. Target population. The population for this research study consists of the residence of Indore Sampling unit in this study the sampling unit is individual consumer Sample size: 100 consumers sampling method. The sample is selected by using simple random-sampling method. The objective was to find out the market share of LG products, advantages and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale. The study will be helpful for the standing the factor &which they can consider which selecting any products of LG brand the various factor included in the study like variant pricing may help them in differencing a better services. The study will help the company in serving the products of LG brand in a better way as they would be aware what a LG brand is actually looking domestic customer apart from this the study will help the company in conducting a consumer or a customer .The current study will be helpful for the researchers for further research &for the organization in framing marketing strategies for the coming period

CHAPTER II Introduction

Conceptual framework

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.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 Nodal, 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, and 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 shops and 38 are exclusive stores. Brand shops will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings.

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

"Life's Good" represents LG's determination to provide delightfully smart products that 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.

History of company

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

1958-1969-GoldStar The Electronics Industry Dream

1970-79 Gold Star symbol of The Technology

1980-88:- INTERNATIONALIZATION

1989-94 INOVATION

1995-98 GLOBAL LEADERS LG ELECTRONICS

1999-2003-DIGITAL MANAGEMENT

2004-2006 GREAT PEOPLE GREAT DESIGN

2007-THE PEOPLE COMPANY

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 OperationLG 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 Group1. LG.Philips LCD2. LG Chemical3. LG Telecom4. LG PowercomBusiness areas and main products

1. Mobile communications

(a) CDMA Handsets,(b) GSM Handsets,(c) 3G Handsets,(d) Cellular Phones2. Digital appliance

a) Refrigerators,b) Air Conditioners, c) Microwave Ovens,d) Washing Machines,e) Vacuum Cleaners,f) Home Net,g) Compressors for Air Conditioners and Refrigerators

3. Digital display

a) Plasma TVs,b) LCD TVs,c) Micro Display Panel TVs,d) Monitors,e) PDP Modules,f) OLED Panels,g) USB Memory,h) Flat Panel Computer Monitors

4: Digital media

a) Home Theater Systems,b) DVD Recorders,c) Super Multi DVD Rewriters,d) CDRW,e) Notebook PCs,f) Desktop PCs,g) PDAs,h) PDA Phones,i) MP3 Players,j) New Karaoke Systems,k) Car Infotainment

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.

THE SYMBOL

The symbol of LG is the face of future. The letter L and G in a circle symbolizes world, future, youth, humanity & technology. LG philosophy is based on humanity. It also represents LGs efforts to keep close relationship with our customers around the world. The symbol consists of two elements

1. The logo in LG gray2. The stylized image of human face in the unique LG red color.

Red color represents our friendliness and gives a strong impression of LGs commitment to deliver the best. The circle symbolizes The Globe. The stylized image of a smiling face in the symbol conveys Friendliness and Approachability. The one eye on the symbol represents Goal-oriented, Focused & Confident.

The slogan of LG is Lifes Good. It expresses Brands Value, Promises, Benefits, Personality.

THE PARTNERSHIP

LG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship. This illustrates that management and workers are not in a vertical relationship, but in a horizontal one.This culture is necessary for LG Electronics as it strives to become one of the world's top companies. Such a relationship is transformed into a value-creation relationship whereby both parties endeavor to address mutual problems and create new values together.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies.LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies. "Strategic association between corporations," in which companies with different infrastructures cooperate in the fast-developing 21st century business field, is of key significance in terms of strengthening the existing industry and creating a new one.LG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies. And the number follows many moreIn Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries. In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will work together to release, market, and offer LG mobile phones with Google services (search engine, map, email, and blogs).

LG BRAND IDENTITY

The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with intelligent features, institutive functionality and exceptional performance.

The brand platform

The LG brand is composed of four basic elements 1. Value2. Promise3. Benefits4. Personality

The Brands core Value that never changesa. Trust,b. Innovation,c. Peopled. Passion

The benefits that are consistently delivered to the customer includes

a) Reliable products b) Simple design c) Extraordinary Experience d) Ease of usePersonality describes the human characteristic that are expressed to the customer throughTrustworthy, Considerate Practical, Friendly

The Internal Culture of LG

LG practices four cultures

1. Learning Culture

2. Boundary less Environment

3. A Carrier

4. GrowthAccording 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.

Product Leadership

We are focusing on six development areas to become the product leader.1. New Machine2. Reliability3. Conventional Installation4. Environment Friendly Product5. Low Noise & Vibration6. Energy Saving

LITERATURE REVIEW LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies.LG Electronics is striving to become number one in the world by Mingling in various business and technological fields and making strategic alliances with world famous companies. "Strategic association between corporations," in which companies with different infrastructures cooperate in the fast-developing 21st century business field, is of key significance in terms of strengthening the existing industry and creating a new one.

RATIONALE OF THE STUDY The current study will be helpful for the researchers for further research &for the organization in framing marketing strategies for the coming period 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.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 cores in India this year in research and development, brand-building and other marketing initiatives.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.

OBJECTIVES OF THE STUDY The objective was to find out the market share of LG products, advantages and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale. The main objective of filed survey during the project was to find out the market share of the LG and also calculate the display share. The other objective of research was to identify potential dealers and development of these dealers. So LG can make for them their direct dealer. The Objective was to find out that how far the exhibitions are helpful in branding, To increases the knowledge of consumer durable product of LG.

CHAPTER-IIIResearch Methodology

RESEARCH METHDOLOGY\The Study 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. We selected 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 have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable.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. The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects. Launch new technologies in consumer electronic and home Appliances. 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.

The DesignResearch design selected for this project is exploratory Research.

Sampling Detail

1. Target population: The population for this research study consists of the residence of Indore2. Sampling unit: In this study the sampling unit is individual consumer.3. Sample size: 100 consumers.4. Sampling method: The sample is selected by using simple random-sampling method.

Tools for data collection

a. Primary data: In grand project report we have to take primary data from Survey method and structured questionnaire.b. Secondary Data Collection method: Secondary data collect through the Reference books and Internet or magnizne

Tools for data analysisWe have to used pie chart and column chart for collection of data according to research of project. 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. 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.

CHAPTER-IVResult & discussion

Result & Discussion

1. LG should improve its after sale service because its hits badly LGs market share in region.

2. More detailed customaries service is to be provided.

3. The training to in shop demonstration should be given at frequent time interval and feedback should be considered positively.

4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person.

5. LG should try new dealer who have the potential. So they can target more market.

6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung.

7. The marketing managers should make better relations with dealers and reputation of the company.

8. Customer considers quality as their first preference, so the company should give more stress on this.

9. The switching of customer from LG product to other brand is due to the bed after sell service in shop.

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

So company should always improve services and update their technology.

Result Analysis through Graphs

Q1. Are you aware of the LG brand?LG brand Respondent

Yes87

No13

Table-1

Figure-1

InterpretationThe above response show that 87% customers are aware of the brand of LG product and 13% while customers dont know much about brand.

Q.2While purchasing LG products which parameter influences you most?

ParameterRespondent

Price47

Product feature16

Brand24

Service13

Table-2

Figure-2

InterpretationHere in this analysis for consideration of parameter while buying LG products can say that musts of the customer take the decision taking price is the range parameter 24% prefer to go after brand .16% and 13%respectively see for products and as parameter.

Q3. From where you prefer buying product?

PreferRespondent

Trade fair18

Co Shoppe14

Showroom50

Online18

Table-3

Figure--3

InterpretationHere as asked about the preference half of buying in terms of place of the respondent have showed their internet in buying from showroom or 18% each one inter related in purchasing from. So that trade fair 14% are inter related buying online.

Q.4.Which reason influences mostly your choice you have option in last question?

PreferRespondent

Attractive price28

Service50

Demoristrations10

Offers12

Table-4

Figure-4

InterpretationHere in this analysis for the consideration of parameter 50% service has a great influence in LG product and28%customer have to choose to attractive price and left of the customer prefer to other feature of LG products.

Q.5.Which of the following LG products you think is much popular in product now days?

PopularRespondent

Referi grater44

LCD38

Plasma8

Washing machine10

Table-5

Figure-5

Interpretation

Here as asked about the performance in present refrigerator is famous in the market .because it prefer44%customer and 38%customer have to prefer LCD and remaining customer prefer to other products of LG brand.

Q.6 Do you prefer the financing scheme while purchase LG product?

Financing schemeRespondent

Yes86

No14

Table-6

Figure-6

InterpretationThe above above response show that 86% customers are aware of the financing scheme of LG product and 14% while customers dont know much about brand.

Q.7Do you think so that marketing and advertising strategy of LG are good enough in composition to their competitors?CompetitorsRespondent

Yes84

No16

Table-7

Figure-7

Interpretation

The above response show that 84% customers think that marketing and advertising strategy of LG are good enough in composition to their competitors and 16% while customers dont know much about that marketing and advertising strategy of LG products

Q 8. Which brand other than LG do use mostly? BrandRespondent

Whipool32

Samsung12

Sony40

Philip16

Table-8

Figure-8

InterpretationHere as asked about the performance in40% customer prefers Sony and 32%customer prefer whirlpool or 16% customer Philips according the requirement of customer demand. So it shows that other than LG most popular brand is Sony.

Q 9.The often sales service of brand LG is satisfaction?SatisfactionRespondent

Yes82

No18

Table-9

Figure-9

InterpretationFrom the above response show that 82% of the customer have satisfaction and 18% customer says no.

Q10.what change you think that can being jump in the sale of LG products? SalesRespondent

Ad&marketing strategy22

Technological change20

Pricing strategy42

Other service to customer16

Table-10

Figure-10

InterpretationHere in this analysis for the consideration of parameter that 42% customer have to want to change price strategy and22%customer have to suggested advertising and marketing .actually company have to set a strategy according to the taste of customer.

Q11.Are you using any of LG products range? Using of lag productsRespondent

YES64

NO36

Table-11

FIgure-11

InterpretationThe above response shows that 64% customer are using the range of LG products .and 36% customer say no .the reason is that company have to decide plan according to the target customer.

12. Which media would you prefer the most for customer?MediaRespondent

Internet 44

Newspaper20

Magazine12

Other24

Table-12

FIgurE-12

InterpretationHere as asked about the selection for media, reponse is that most of the (44%) customer are using internet. After that 24% are using some other media while 20 % are using magazine and the least no. of customers are using Newspaper for getting the information regarding the brand. It implies that internet is the most popular medium for information flow.

Factors affecting decision

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

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.

The research was conducted in a small area.

Our research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the custom

Time factor was also important for us. We had limited time for the research, for which a full-fledged report was insufficient for me.

The customer filled the questionnaire mostly in careless manner, so it was difficult to make them hold for time.

We 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

CHAPTER VConclusion

Conclusion

The study reflects that the use products of LG brand undeniably has increased over the years in India. Future holds lot of promise for such brand across wider range of markets.LG brand has ceased to be major differentiator at least in the metros, with almost all companies offering similar brand. As a result now marketers have to find out some innovative ways products of LG brand to differentiate from competitors. Currently Bye one get one free offers are very effective to attract the consumers towards the products.We have noted that these kind of promotional scheme tools are useful for short term increase in sales and to induce first trial. These types of products scheme should be consistent and changed from time to time depending upon season and competitors schemes.With the Increasing number of supermarket, the branded packaged goods work as silent sales person. So in such stores, LG products play a more effective role in stimulating consumers demands.One of the very important facts we came to know from this project is that sale of LG products which contain large quantity and having stagnating because consumer prefer to buy product of LG brand. It had low cost or say price, and last but important factor i.e. mentality to purchase just to try first.

CHAPTER VIImplications of the study

Implications of the study

With respect to consumerThe study will be helpful for the standing the factor &which they can consider which selecting any products of LG brand the various factor included in the study like variant pricing may help them in differencing a better services. With respect to manufacturing & retailerThe study will help the company in serving the products of LG brand in a better way as they would be aware what a LG brand is actually looking domestic customer apart from this the study will help the company in conducting a consumer or a customer .

With respect to researcherThis study will be an ad for the upcoming researcher who with to conducts research for any products of LG brand. The study the horizon for researcher as three one various factors which can be studied which border spectrum.

.

REFERENCE

Kothari C.R. research methodology new age international publication 2004 Gooney J.W. &Boehm T.P.cusumar relationship management essential prentice hall of India private limited new Delhi 2001 Mohamed H.P.& sugadeven a customer relationship a step by step approach vikas publishing home pry. Ltd. 2002 Kotler ,phlip,marketing managements ,second edition,(new Delhi; prentice-hall of india,1999) Saxena, jain, MARKETING MANAGEMENTS ,second edition(new Delhi the MCgraw HILL COMPANIES,2007)Search Engine www.google.com Business world Business today LG magazine Economics times News paper Times of India

Webliography http://www.oppapers.com/subjects/buyer-behaviour-on-a-product-page1.html http://www.oppapers.com/essays/Buyer-Behaviour/8372

Annexure

A study of market analysis of LG products in Indore

Dear,Respondent I am Arvind Kumar Patel as a researcher market analysis of LG products in Indore, would like to ask some questions about your interest investing in market analysis of LG product, please give unbiased answer of your own, I assure you to keep these details confidential and will use only for MRP reportThanksName ..AddressAge . Sex (M/F)...........Mobile no ...Email IDChoose one answer which best describes your nature and preferences.

Q1. Are you aware of the LG brand?

(A).Yes (B).No

Q.2While purchasing LG products which parameter influences you most?

(A). Price(B).Product feature(C).Brand(D).Service

Q3. From where you prefer buying products?

(A).Trade fair(B).Co.shoppee(C).Showroom(D).Online

Q.4.which reason influence mostly your choice you have option in last question?

(A).Attractive Price(B).Service(C).Demonstrations(D).Offers

Q.5.Which of the following LG products you think is much popular in product now a days?

(A).Refrigerator(B).LCD (C).PLASMA (D).Washing machine

Q.6Do you prefer the financing scheme while purchase LG product?

(A).Yes(B).No Q.7do you think so that marketing and advertising strategy of LG are good enough in composition to their competitors?(A).Yes (B).NoQ 8. Which brand other than LG do use mostly? (A).Whirlpool(B).Samsung(C).Sony(D).PhilipsQ 9.the often sales service of brand LG are satisfaction?(A).Yes(B).NoQ10.what change you think that can being jump in the sale of LG products? (A).Ad & marketing strategy (B).Technological changes(C).Pricing strategy(D).Other service to customerQ11.Assre you using any of LG products range?(A).Yes (B).No12. Which media would you prefer the most for customer?(A) Internet (B). Newspaper(C) Magazines(D). Other14