mba project

SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY

PROJECT REPORTON

“MARKETING STRATEGIES OF TOP FIVE BRANDS OF MICROWAVE ”

Submitted in partial fulfilment for the Award of degree ofMaster in Management Studies

UNDER THE GUIDANCE OF SUBMITTED BY

CERTIFICATE

Certified that the dissertation title MARKETING STRATEGIES OF TOP BRANDS OF

MICROWAVE is a bonafide work done Mr. ……………….. under my guidance in partial

fulfilment of Master in Management Studies programme . The views expressed in this

dissertation is only of that of the researcher and the need not be those of this institute.

This project work has been corrected by me.

PROJECT GUIDEMS. AMRITA RAWAT

DATE::

PLACE:

STUDENT DECLARATION

I hereby declare that this project report titled “A STUDY Of MAEKETING

STRATEGIES OF TOP BRANDS OF MICROWAVE” is executed as per the course

requirement for the post graduate program in management. I have not been submitted

by me or any other person to any other university or institution for degree or diploma.

It’s my own work.

Place:

Date:

NAME HERE.

MBA

ACKNOWLEDGEMENT

In this project I have made an honest and dedicated attempt to make the research

material as authentic as it could. And I earnestly hope that it provides useful and

workable information and knowledge to any person reading it.

During this small time frame in which the project reached its completion, there were

a few people whom I would like to make a mention of and without whose help the

project would have never seen the light of the day.

I also thank to my (HOD) PARMESH GOUTAM and internal guide ms amrita rawat

for his timely response via e-mail, which immensely helped in giving the project the

initial direction it needed.

I dedicate this project to the Dealer’s who were extremely kind and who at

times went out of the way to help me. Without their co-operation it would have

perhaps not been possible to research a few places, which I did, within the stipulated

time frame.

NAME HERE

MBA

PREFACE

It was a firsthand experience to get exposed to the professional set-up and face the

market, which was really a great experience. Training period was a learning experience.

When business is involved, an experience counts a lot. experience are an instrument,

which leads towards success.

I take this opportunity to present the project report and sincerely hope that it will be as

much knowledge enhancing to the readers as it was to use during the fieldwork and the

compilation of the report.

CONTENT

PREFACE ACKNOWLEDGEMENT CERTIFICATE DECRATION

1. INTRODUCTION● About Product● In Insight of Company History● Mission & Vision● Objectives● Standing Position of Company● Brand Value

2. OBJECTIVES OF THE STUDY3. RESEARCH METHODOLOGY4. MARKET ANALYSIS5. CONSUMER GROUPS6. PRODUCT PROFILE7. MARKETING STRATEGY

● Pricing● Positioning & Distribution● Promotion

8. ABOUT COMPETITOR● Competitor Product● Price up Competitor Profile

9. DATA ANALYSIS & ENTERPRETATION10. LIMATATION11. SUGGESTION12. BIBLOGRAPHY13. CONCLUSION

INTRODUCTION

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 were 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

MICROWAVEs (C-TV) were no longer considered luxury items. However, there were 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.

Indian Consumer durables market used to be dominated by few domestic players like

Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies

have entered into Indian market dethroning the Indian players and dominating Indian

market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and

WASHING MACHINES.

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 have been maintaining the lead in the market 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 CTV segment is expected to the largest contributing segment to

the overall growth of the industry. The rising income levels double-income families and

consumer awareness were the main growth drivers of the industries.

INDUSTRY PROFILE

The Consumer Durables industry consists of durable goods and appliances for domestic

use such as MICROWAVEs, refrigerators, air conditioners and washing machines.

Instruments such as cell phones and kitchen appliances like microwave ovens were also

included in this category. The sector has been witnessing significant growth in recent

years, helped by several drivers such as the emerging retail boom, real estate and

housing demand, greater disposable income and an overall increase in the level of

affluence of a significant section of the population. The industry is represented by major

international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC

Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer

Electronics and Consumer Appliances. Consumer Appliances can be further categorized

into Brown Goods and White Goods. The key product lines under each segment were as

follows.

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US$ 5 billion in

2007-08. More than 7 million units of consumer durable appliances have been sold in

the year 2006-07 with colour MICROWAVEs (CTV) forming the bulk of the sales with 30

per cent share of volumes. CTV, refrigerators and Air-conditioners together constitute

more than 60 per cent of the sales in terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent while

direct cool segment has grown by 9 per cent. Companies like LG, Whirlpool and

Samsung have registered double-digit growth in the direct cool refrigerator market.

In the case of washing machines, the semi-automatic category with a higher base and

fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent

to 229,000 units, respectively. In the air-conditioners segment, the sales of window ACs

have grown by 32 per cent and that of split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite high, the

markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.

The growth across product categories in different segments is assessed in the following

sections.

Consumer Electronics

The CTV production was 15.10 million units in 2007-08 and is expected to grow by at

least 25 per cent. At the disaggregated level, conventional CTV volumes have been

falling while flat TVs have grown strongly. Market sources indicate that most CTV majors

have phased out conventional TVs and have been instead focusing more on flat TVs. The

flat segment of CTVs now account for over60 per cent of the total domestic TV

production and is likely to be around 65 per cent in 2007-08.High-end products such as

liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per

Cent respectively in 2009–10 following a sharp decline in prices of these products and

this trend is expected to continue. The audio/video player market has seen significant

growth rates in the domestic market as prices have dropped. This trend is expected to

continue through 2009- 2010, as competition is likely to intensify to scale and capture

the mass market.

COMPANY PROFILE

SAMSUNG – Introduction

Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we

need to address the challenges of tomorrow. From technology comes opportunity for

businesses to grow, for citizens in emerging markets to prosper by tapping into the

digital economy, and for people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new

markets, enrich people’s lives and continue to make Samsung a trusted market leader

Our Mission

Everything we do at Samsung is guided by our mission: to be the best “digital-

Company”.

Samsung grew into a global corporation by facing challenges directly. In the years

ahead, our dedicated people will continue to embrace many challenges and come up

with creative ideas to develop products and services that lead in their markets. Their

ingenuity will continue to chart Samsung’s course as a profitable, responsible global

corporation.

GROWING TO BE THE BEST

Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best Company’

in terms of both the internal workplace environment as well as the external context in

which the Company operates. Samsung aims to grow in India by contributing to the

Indian economy and making the lives of its consumers simpler, easier and richer through

its superior quality products.

“Our aim is to gain technological leadership in the Indian marketplace even as our goal

is to earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh,

President & CEO Samsung South-West Asia Regional Headquarters.

STRATEGY IN INDIA

Samsung India is the hub for Samsung’s South West Asia Regional operations. The South

West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka,

Bangladesh, Maldives and Bhutan besides India. Samsung India, which commenced its

operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in

just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located

all over the country. The Samsung manufacturing complex housing manufacturing

facilities for Colour MICROWAVEs, Colour Monitors,

Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in

India’ products like Colour MICROWAVEs, Colour Monitors and Refrigerators were being

exported to Middle East, CIS and SAARC countries from its Noida manufacturing

complex. Samsung India currently employs over 1600 employees, with around 18% of its

employees working in Research & Development.

The DNA of Digital Innovation

Samsung Electronics is a global leader in semiconductors, telecommunications, digital

media and digital convergence technologies with 2004 parent company sales of

US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over 90

offices in 48 countries, the company has of 5 main business units: Digital Appliance

Business, Digital Media Business, LCD Business, Semiconductor Business and

Telecommunication Network Business. Recognized as one of the fastest growing global

brands, Samsung Electronics Corporation is the world’s largest pro ducer of Colour

Monitors, Colour TVs, Memory Chips and TFT LCD’s.

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its products

according to the Indian market. It has set up a “usability lab” at the Indian Institute of

Technology in New Delhi to customize Samsung products to meet the specific needs of

Indian consumers. This industry-institute partnership is helping Samsung to study and

analyze consumer response in aspects of product design, including aesthetics,

ergonomics and interface.

Through its research done on consumer preferences in India, Samsung has concluded

that Indian consumers want more sound oriented products. Thus, the Samsung

MICROWAVEs for India have a higher sound capacity than their foreign counterparts.

For the semi-automatic segment of Samsung washing machines, Samsung has

introduced for the first time in India a feature called Super Dry. It is present in three of

Samsung’s semi automatic models and dries the clothes better than the rest.

Samsung washing machines have an additional menu that takes care of the local

Indian wardrobes. They also have a ‘memory re-start’ that takes care of the frequent

power failures in India.

PRODUCT PROFILE

650 Series Full HD LC D TV

Developed using our unique Crystal Design with a hint of

rose-red color accentuating a traditional piano-black

bezel frame, the 650 Series LCD TV features Auto Motion

Plus 120Hz, an Ultra Clear Panel, DNIe Pro and Wide

Color Enhancer Pro to provide perfect picture quality.

Wide Video MP3 Player (YP-P2)

Equipped with Bluetooth and a touch screen interface,

the YP-P2 lets consumers enjoy vivid videos on a 3-inch

wide LCD screen. Samsung’s proprietary DNSe 2.0

technology with EmoTure™ UI enhances the ultimate multimedia experience.

VRT Front Loading Washer

Designed with Vibration Reduction TechnologyTM (VRT),

our washer dramatically reduces barrel vibration—even

at the highest speed. It also reduces energy and water

consumption to the world’s lowest levels. Further, we’ve

enhanced washing performance and eco-friendly performance

with a diamond-shaped embossing drum.

6-in-1 Steam Oven

Simple, yet stylish, our 6-in-1 steam oven combines all of

the features of a conventional oven with advanced steam

cooking technology to stimulate healthier eating.

Samsung’s versatile steam cooking solution adds a

steam function to the conventional oven, grill and microwave,

as well as dry heat and fermenting.

Haptic Touch Screen Phones (SC H-W420/W4200)

Built with TouchWiz UI software, our Haptic model promises

a unique user experience, one that touches all of the

senses. The Samsung Haptic features one-touch access,

a widget for creating customized desktops and a G sensor

for automatic horizontal rotation of photos and videos.

It is designed for the innovative, ‘on-the-go’ user who

demands cutting-edge multimedia features, including a web browser.

Ultra-messaging BlackJack II (SG H-i617)

Microsoft’s Windows Mobile software-enabled HSDPA

smart phone boasts a bigger screen than the BlackJack

ROYAL PHILIPS ELECTRONICS

Royal Philips Electronics of the Netherlands is a diversified Health and Well-being

company, focused on improving people’s lives through timely innovations. As a world

leader in healthcare, lifestyle and lighting, Philips integrates technologies and design

into people-centric solutions, based on fundamental customer insights and the brand

promise of “sense and simplicity”.

Headquartered in the Netherlands, Philips employs approximately 116,000 employees

in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company

is a market leader in cardiac care, acute care and home healthcare, energy efficient

lighting solutions and new lighting applications, as well as lifestyle products for personal

well-being and pleasure with strong leadership positions in flat TV, male shaving and

grooming, portable entertainment and oral healthcare.

Global Footprint Philips is a global leader across its healthcare, lighting and lifestyle

portfolio:

We are the world’s largest home healthcare company, being number one in:

Monitoring systems, Automated External Defibrillators, Cardiac Ultrasound,

Cardiovascular X-ray.

We are number one in lamps in Europe, Latin America and Asia Pacific and

number two in North America; in Automotive lighting, we are leading in Europe,

Latin America, Japan and Asia Pacific.

We are number one in the electric shavers and male grooming category globally.

Philips is one of the leading flat-TV brands globally.

Mission

"Improve the quality of people’s lives through timely introduction of meaningful

innovations."

Vision

“In a world where complexity increasingly touches every aspect of our daily lives, we

will lead in bringing sense and simplicity to people.”

Values

“Our Values reflect the ambitions we have laid down in “Vision 2010”, our recent

strategy update. The Values, the four Ds, are like a compass – guiding us in how we

behave every day, and reminding us of the attitudes we should have towards our work,

our customers and our colleagues.”

Delight Customers

We anticipate and exceed customer expectations

We demonstrate Passion for Philips and "sense and simplicity"

We create superior customer experiences, based on deep insights

We act as One Philips ambassadors all the time

Deliver great results

We continually raise the bar

We play to win big and always

set ambitious targets

We challenge the status quo

and experiment with new ways

We take clear decisions and

implement with speed and

discipline

Develop people

We get the best from ourselves and each other

We attract the best players to create strong and diverse teams

We take risks by giving people stretch assignments to accelerate their

development

We personally invest significant time to coach and recognize people.

Depend on each other

We deliver more value by working as One Philips

We think as One Philips and act as owners

We trust and empower each other to contribute our best

We team up and allocate resources to the most promising opportunities.

Philips Electronics India Limited

Philips Electronics India Limited, a subsidiary of the Netherlands-based Royal

Philips Electronics, is the leading Health and Wellbeing company. Today, Philips is a

simpler and more focused company with global leadership positions in key markets of

Healthcare, Lighting and Consumer Lifestyle, addressing people’s Health and wellbeing

needs and aspirations as its overarching theme.

As one of the nation's most well-known and well-loved brands, Philips is a part

of practically every Indian's life. With recent launch of Philips Respironics product

categories in obstructive sleep apnea management and home respiratory care, home

decorative lighting range and ALU range, Philips products find use in virtually every

aspect of an individual’s daily life 24X7 - at home, at work, on the move and at rest.

Philips stands as a source of easy to use, trendy and innovative internationally

acclaimed products with superior design and technology that enhance the quality of

consumers' professional and personal lives.

Philips has been operating in India for over 75 years and employs over 4,500

employees around the country. The company has an excellent pan India distribution

and after-sales service network.

EVOLUTION OF PHILIPS AS A “BRAND”

Wherever encountered, the Philips brand is a familiar sight in millions of households

and buildings throughout the world with its instantly recognizable word mark of seven

blue capitalized letters. Although the company has evolved and grown over more than

hundred years, Philips’ visual brand identity is rooted in its early years at the

beginning of the 20th century.

Philips Identity Trademarked: Origins of the Shield Emblem

The now familiar Philips waves and stars first

appeared in 1926 on the packaging of miniwatt radio

valves, as well as on the Philigraph, an early sound

recording device. The waves symbolized radio waves,

while the stars represented the ether of the evening sky

through which the radio waves would travel.

In 1930 it was the first time that the four stars flanking the three waves

were placed together in a circle. After that, the stars and waves started appearing on

radios and gramophones, featuring this circle as part of their design. Gradually the use

of the circle emblem was then extended to advertising materials and other products.

At this time Philips’ business activities were expanding rapidly and the

company wanted to find a trademark that would uniquely represent Philips, but one

that would also avoid legal problems with the owners of other well-known circular

emblems. This wish resulted in the combination of the Philips circle and the word

mark within the shield emblem.

In 1938, the Philips shield made its first appearance. Although modified over

the years, the basic design has remained constant ever since and, together with the

word mark, gives Philips the distinctive identity that is still embraced today.

Advertising Philips Brand Today

Whilst the logo of the company has been

consistent since the1930s the way in which Philips has

advertised and communicated to the outside world has

varied. In general, until the mid-1990s all advertising and

marketing campaigns were carried out at product level

on a local market basis. This led to many different

campaigns running simultaneously, not giving a global representation of Philips as a

global company.

To establish consistent global presence, in 1995 Philips introduced the first

global campaign in 1995 under the tagline “Let’s make things better”. This theme

encapsulated the “One Philips” thinking and was rolled out globally in all markets and

on all Philips products. This was also the first campaign that bought the whole

company together, giving the employees a sense of belonging and providing a unified

company look for an external audience.

In September 2004, Philips launched its “sense and simplicity” brand promise,

which marked a new way forward for the company. “Sense and simplicity” reflects

Philips’ commitment to be a market-driven company that provides products and

services that fulfill the promise of being “designed around you, easy to experience and

advanced”.

In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3

billion and was ranked the 43rd most valuable brand in Inter brand’s 2008 ranking of

best global brands.

PHILIPS’ STRATEGY IN INDIA

Philips India, is in a bid to aggressively push its sales in the rural/semi-urban

segment and has designed an innovative strategy for these regions. Called the `Philips

Mahasangram Integrated Marketing Programmes', the rural initiative will be taken

across the country from July 2, focusing on rural towns with a population of less than

5,000 and semi-urban towns with a population between 5,000 and 50,000. , The

Philips Mahasangram is aimed at taking Philips' new products to the semi-urban and

rural customers and increasing their awareness where product knowledge,

information and availability are concerned. An indication of the size of this initiative

can be obtained from the fact that Philips will be spending about 4.5 per cent of its

turnover from the rural/semi-urban areas on the Mahasangram alone.

Meanwhile, the key reason behind this initiative lies in the growing

potential of the rural market. According to industry data, while in 1997-98, rural sales

formed about 25 per cent of the total sales for CTVs, refrigerators and washing

machines, it increased to 36 per cent in 2001-2002 and is expected to go up to as high

as 41 per cent in 2006-07. Apart from initiating new marketing and distribution

programmes, Philips will also be launching a range of new products during the rural

initiative. Meanwhile, Philips plans to implement an innovative FMCG style marketing

strategy to push its durables in the rural segment. The Mahasangram Integrated

Marketing Programme is essentially about implementing a non-durables strategy

marketing in a consumer durable segment. The management is planning effective use

of a number of media vehicles to ensure efficient communication of the message and

maximum utilization of the money spent. The advertising and marketing strategy will

be a combination of above-the-line and below-the-line/ on-ground activities.

Various promotional activities which Philips plans to initiate during the

Mahasangram include a series of on-ground activities such as point of sale material at

retailers' counters, road-shows, mobile vans with Philips products on display and

games, innovative tactics like advertising on an inland letter form or postcard (a

popular form of communication in rural areas) and sponsorship of local events, among

other things.

On the distribution front, Philips claims to have the biggest distribution

network (as compared to other consumer electronics companies) and a high degree of

penetration even in the rural and semi-urban areas. The company has carried out an

extensive product-wise mapping exercise over 540 districts across India. Keeping in

mind the objective of extensive physical reach of 80 per cent plus, where portable

audio is concerned, the company has developed a second line of activity in the

distribution set-up. Also, in order to cater to volume drivers i.e., major retailers,

company has identified the main retailers of each distributor and practice the Key

Account Management Approach with them, so that there is a focus on improving

relations, trade with these retailers, and catering to their needs. These steps have

helped in developing their volume reach, geographical reach and counter share

significantly.

Philips is hoping that its innovative rural marketing initiative coupled with the high

growth in the rural market will boost its market share.

How Philips India doubled its sales

The company launched an aggressive new advertising campaign in print,

MICROWAVE and online. The new tagline "Sense and simplicity" showcases the new

brand promises -- using technology to make life simpler and easier. Company sources

say Philips is counting on the new campaign to help it grow by at least 25 per cent this

year.

That's in the future, but how did Philips almost double its market share in under four

years? Interestingly, the company didn't adopt radically different strategies.

It paid attention to what customers wanted; passed on cost benefits; and brushed up

its admittedly fuddy-duddy image. According to Mr. D Shivkumar, executive director,

consumer electronics, Philips, "We have managed to grow the business by focusing on

the price -- quality equation."

The battle of perception

Philips has been a household name in India for 75 years, but consumers

associated the brand more with tube lights and transistors than cutting-edge

technology.

That's ironic, considering the company has made its mark globally as a technology

leader -- it invented the cassette recorder, the compact disc and the DVD; the last in

association with Sony.

But a survey by advertising agency JWT, which held the Philips account from

2001 (it has recently moved to Mudra), revealed that Philips technology was seen as

reliable but not state-of-the-art.

Clearly, Philips needed an image makeover. It began by taking the technology

route. Post-2001, advertising campaigns emphasised the company's technologically-

advanced features.

Philips was the first audio company to launch an MP3 player (May 2002), and

it made sure its communication played that up: "Don't buy a system if it doesn't have

an MP3 player." Then there was the October 2002 campaign, in which a little boy uses

the power of the music system to nudge the cookie jar off the top-most kitchen shelf.

The company was constantly refining the image of the company in the minds

of the consumer, making it more modern. But that wasn't enough. That's where in-

store displays and promotions that demonstrated the abilities of Philips products

came in. In October 2003, JWT broke the "Ramu kaka" ad, where the manservant

inadvertently inserts a roti into the DVD player.

The tagline made the message clear: "The new Philips DVD player plays

anything". The campaign proved immensely popular - it was used in other Asian

countries as well -- and Philips wasn't slow in leveraging its appeal. At live demos,

customers would be invited to slip rotis into the player, creating a buzz around the

product and the brand.

But that would probably appeal more to families and Philips needed to reach

out to the youth, its target customer base. So it went to where the action was -

colleges and rock festivals.

Philips set up stalls, complete with a professional DJ. Youngsters were invited to

man the console, while the DJ gave them tips on mixing and spinning. And had huge

walk-ins and could provide an involvement and experience with the brand.

Clinch the dealer

Philips has successfully played the price card, but not all price cuts have been

due to better or cheaper technology. In some segments like radios, it did away with

trade discounts and passed on the savings to the customer.

Two years ago, Philips' radios sold at Rs 600 -- a huge premium compared to the Rs

200 or so that other brands cost. In mid-2003, the company slashed the price to Rs

400 and even introduced new models at the Rs 160 price point, especially targeting

the non-urban youth segment.

Not surprisingly, dealers were upset at their shrinking margins. Some started

stocking competing brands, only to return, claim company officials, when they found

volumes were increasing exponentially.

They soon realized it was more profitable to sell Philips radios because the

turnover is much higher. To ensure the penetration and distribution happens, Philips

changed its distribution strategy around two years ago. Distributors were now

allocated smaller geographical territories so they can concentrate on getting firmer

footholds in their areas.

Distributor in upcountry markets, who were earlier allotted five or six districts are

now given only two or three. And not all are given the entire product range so that

the focus is sharper.

Creating the value proposition

Philips realized early on that maintaining the price-quality equation is critical.

That's especially true of the minis (DVD and VCD hi-fi systems) segment, which

accounts for a quarter of the audio market in value terms.

Even as Philips constantly raised the technology bar (MP3 players, deeper bass,

sleeker, more streamlined systems), it's kept its prices competitive. The company

prices its minis at Rs 8,000-25,000, compared with the market range of Rs 7,500-

30,000.

Moreover, prices have been falling by 10 per cent on average every year. Of

course, that's true for other brands as well but, Philips "found the sweet spot at which

youngsters could buy".

How did it do that? By ensuring that it was perceived neither as a price warrior

like Aiwa or Sansui nor prohibitively expensive -- Sony products are on average 10 per

cent more expensive.

Philips also brought in help from outside. In late 2002, it tied up with Countrywide and

Citibank to provide accessible finance schemes for its products.

Compared to equal monthly installments of about Rs 1,000 earlier, the new schemes

let customers pick up state-of-the-art sound machines for as little as Rs 333 a month -

that too, without a down-payment.

Has that helped? Consider: Philips entered the minis segment only in 2000, a

year behind Sony. But it's now carved up the market with Sony, with 45 per cent share

each. The company also paid close attention to customer feedback. It has ramped up

the number of service centres across the country to 190, from 125 two years ago.

Today, over 900 technicians now attend to complaints, up from 600 in 2002.

LG ELECTRONICS

VISION

Global Top 3 by 2010

Global Top 3 Electronic/Telecommunication company

GROWTH STRATEGY

“Fast innovation, Fast growth”

CORE COMPETENCY

“Product leadership, Market leadership, People leadership”

CORPORATE CULTURE

No excuse, “we” not “I”, Fun workplaceSLOGAN

"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 typefacecurved 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 LG’s 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 LG’s 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 “Life’s Good”. It expresses“ Brand’s 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 andcreate 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 bymingling 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.

1. 3M2. SUN3. YAHOO4. PHILLIPS5. TOYOTA6. MICROSOFT7. HP8. GOOGLE9. GE10.INTEL11.NORTEL12.HITACHI13.PRADA14.RENESAS15.TOSHIBA16.BESTBUY

And the number follows many more…………………………..In 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 customer’s 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 changes.a. Trust,b. Innovation,c. Peopled. Passion

The benefits that are consistently delivered to the customer includes a) Reliable productsb) Simple designc) Ease of used) Extraordinary ExperiencePersonality describes the human characteristic that are expressed to the customer through

Trustworthy, Considerate Practical, Friendly

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 MICROWAVEs, 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 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 MICROWAVEs, 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.

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. Compitition 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 then 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”.

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 . 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 . 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 LG2. 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

COMPANY PROFILEBrief Profile

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors:1. Consumer durable2. Thomson CPT3. CRT glass

4. Oil and gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour MICROWAVEs, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Our compressor manufacturing technology in Bangalore further supports refrigerator manufacturing.

Display industry and its componentsWith the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China,continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a highlevel of experience and technical expertise operating through Poland and India.Videocon will leverage on this synergy after the Thomson acquisition to internally

source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Vision & Mission

Videocon’s mission: a reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and emerging realities:

“To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…”: the end

This segment not only underlines the importance of the ultimate goal – customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable

Videocon value chain (‘deliver’). As a result of its focus on developing loyalcustomers and reliable associates, Videocon is able to exceed expectations.

“…Through ingenious strategy…”: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game plans, or sometimes changes the rules of the game.

STRATEGY IN INDIA

“…Intrepid entrepreneurship…”:

An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefootedcompetence of the company’s in-house managerial talent.

“…Improved technology…”

Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the best-in-class offers of the times.

“…Innovative products…”

Product development, innovation and customisation are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front

“…Insightful marketing…”

The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences.

“…Inspired thinking about the future.”

The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon extrapolates future trends on the basis of current changes in

technology and preferences as well as sheer gut feel

.

The Haier Group is China’s largest home appliance brand and one of the world’s leading

white goods home appliance manufacturers. Haier was founded in 1984 in Qingdao,

Shandong Province, China and manufactures home appliances in over 15,100 different

specifications under 96 categories. By April 2006, the Haier Group has obtained 6,189

patented technology certificates and 589 software intellectual property rights. Haier

products are sold in over 100 countries. Haier is the official Home Appliances Sponsor of

the Beijing 2008 Olympic Games.

Headquarters: Qingdao, Shandong Province, China

Employees: Over 50,000 worldwide

Financial Information: Haier’s global revenue in 2005 reached RMB 103.4 billion

Average annual growth of 68% between 1984 and 2005

No. of Subsidiaries Over 240

Listed Subsidiaries: Haier Electronics Group Co., Ltd. listed on the Hong Kong

Stock Exchange

Qingdao Haier Co., Ltd. Listed on the Shanghai Stock Exchange

Business Scope: Technology research

o Product development and manufacturing Trade

o Financial services

Global Presence:

Trading Companies: 64

Design Centers: 8

Industrial Complexes: 15

Sales Network: Over 58,000

Board of Directors

Chairman and CEO: Mr. Zhang Ruimin

President: Ms. Yang Mianmian

Vice Chairman: Mr. Wu Kesong

Recognition:

Ranked 86th among the world’s 500 Most Influential Brands by World Brand Lab

in 2006. Only Chinese brand to be ranked in top 100 for three consecutive years

Ranked 1st among Chinese brands with the most potential by Glebors Global

Financial Reports of Canada, 2006

Ranked 1st among China’s Top 10 Global Brands by the Financial Times in 2005

Ranked 1st among China’s Top 10 Global Brands by China State Bureau of Quality

and Technical Supervision (CSBTS) for refrigerators and washing machines in

2005

CEO Zhang Ruimin ranked 6th among Asia’s 25 Most Powerful People in Business

by Fortune magazine in 2004

The Haier Group was founded in 1984 with headquarters in Qingdao, Shandong

Province, PRC. In 1984, Haier produced only a single model of refrigerator, today it is

one of the world’s leading white goods home appliance manufacturers. Under the

leadership of Chairman and CEO Zhang Ruimin, Haier manufactures home appliances in

over 15,100 different specifications under 96 categories. Haier products are now sold in

over 100 countries around the globe.

Haier has over 240 subsidiary companies, over 110 design centers, plants and trading

companies and over 50,000 employees throughout the world. Haier’s focused industries

include technology research, manufacturing, trade and financial services.

The global revenue of Haier for 2005 was RMB 103.4 billion. Haier Electronics Group Co.,

Ltd. (HKG: 1169), a subsidiary of Haier Group, is listed on the Main Board of the Stock

Exchange of Hong Kong. Qingdao Haier Co., Ltd. (SHA: 600690), also a Haier subsidiary,

is listed on the Shanghai Stock Exchange. On 12 August, 2005, Haier signed an

agreement with Beijing Organizing Committee for the Olympic Games (BOCOG) in

Qingdao to become the official sponsor of the 2008 Beijing Olympic Games for white

goods home appliances.

Unmatched Home Appliance Product Offerings Haier’s product categories range from

refrigerators, refrigerating cabinets, air conditioners, washing machines, MICROWAVEs,

mobile phones, home theatre systems, computers, water heaters, DVD players and

integrated furniture, among which 9 are ranked market leaders in China, and 3 are

ranked among the top 3 worldwide in their respective industries. Haier is also a world

leader in the technology domains of intelligent integrated home furniture, networked

home appliances, digitalization and large scale integrated circuits.

By April 2006, the Haier Group has obtained 6,189 patented technology certificates and

589 software intellectual property rights. Haier’s proposal for safe care water heater

technology initiative was accepted at the 66th IEC Conference in 2002 and Haier dual

drive washing machine technology was included in the 2006 IEC standard proposal. This

clearly demonstrates Haier’s world-class innovation capabilities in product R&D.

GLOBAL BRANDING STRATEGYHaier’s global branding strategy aims at positioning the company as a local brand in

different world markets in conjunction with enhanced product competitiveness and

strong corporate operations. Haier’s international business framework encompasses a

global network of design, procurement, production, distribution and after-sale services.

Today, Haier has established 15 industrial complexes, 30 overseas production factories

and bases, 8 design centers and over 58,000 sales agents worldwide.

In China, Haier’s 4 leading product categories - refrigerators, refrigerating cabinets, air

conditioners and washing machines - have over 30% market share. In overseas markets,

Haier products are available in 12 of the top 15 chain stores in Europe and 10 leading

chain stores in the USA. Haier is now approaching its goal of being “local” in American

and European markets via localized design, manufacturing and sales processes. In

addition, Haier has set up production facilities and plants in the USA, Italy, Pakistan,

Jordan and Nigeria.

Haier’s innovative management principles, such as Haier’s OEC management model,

“market-chain” management and “individual goal combination” – a system of assigning

incentives-based responsibility to staff to ensure the quality of products delivered to

their customers – have gained high recognition among international management

institutes. Haier business case studies are included in the text books of Harvard

University, University of Southern California, Lausanne Management College, European

Business College and Kobe University.

Services

With the concept of “customers as the foundation of growth”, Haier provides a one-stop

star service to its customers. In a joint survey conducted by the China Consumer

Association and the China Enterprise Research Centre of Tsinghua University on China’s

domestic durable commodities for 2003 and 2004, 8 of Haier’s product categories were

ranked No. 1 for customer satisfaction and overall satisfaction.

In addition to high quality home appliances, Haier is also focused on offering best-of-

breed service solutions to its customers. Haier’s service system runs throughout the

production process from product design, production, manufacturing, to pre-sale, under

sales and after sales service. Since 2002, Haier has successfully established a network of

over 5,000 domestic professional service suppliers to deliver timely customized service.

Partners

Haier has established an extensive sales network around the globe. Key partners in

perspective markets include:

• China: Strategic alliance with Suning and Gome chain stores

• America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME DEPOT, Best

Buy, PC-Richard, Wal-Mart, Sam's, Costco, BrandsMart and Target

• Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and JUSCO

• Europe: Cooperation with KESA, Media Market and Carrefour

OBJECTIVES OF THE PROJECT

To find number of brands of consumer durable

To study brand preference of consumer for consumer

durable goods..

To find most important parameter for selection of brand of

MICROWAVE,

To study profit margin of major brands in consumer durable.

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. Research design specifies methods and procedures

for study. In this study the company was interested to know the demand of different

consumer durable product, about competitors, and potential for tv industry procedures

to be used for the study among retailers/dealer and. However it was exclusively

personal interview.

Data Collection:

This report was prepared after collecting data from the retailers/ dealers and past data

was arranged from the various studies conducted in last few years and various other

records of company.

Primary Data:

These data were collected by personal interview with retailers/ dealer. For this purpose

questionnaires were prepared in such that all necessary data would be collected.

Secondary Data:

Information regarding the project, secondary data was also required. These data were

collected from various past studies and other sources of the company.

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE

100 Dealers

Research tools:

Questionnaires

RESEARCH AREA SAGAR DISTRICT-

SCOPE OF THE STUDY

This project gives us great exposure to the consumer durable market because it includes

product knowledge and field survey job in which we visited the consumer durable stores

in SAGAR district.

While visiting the shops we

1. Calculated the display share of the tv product in shop.

2. Collected the data of actual monthly sale of the tv product in few shop.

3 Found out the problems that the dealer were facing while selling the different

product.

4. Found out the customer response for different products by asking the owner of the

shop.

5. Checked whether demo calls were attended or not

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 $450 billion by on 2010

3. India has the youngest population amongst the major countries. There were 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 were 56 million people in middle class, who were earning us$4,400-US$21,800

a year. And there were 6 million rich household in India.

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

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

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

1. Higher import duties on row materials.

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

LIMITATION OF STUDY

Although I tried my best in preparation of this project, but this study has some

limitation:

1.The period of the project was not sufficient to study all the factors in deep.

2.Visiting various places for the study consumed a lot of time.

3.We cannot say that what the consumer have revealed will be right for each and every

situation because their perception is influenced by many factors.

4.Many consumer and dealers/retailers showed less interest in providing information

and haven’t cooperated.

5.Some of confidential information viz. credit period, schemes, policies and sales figure

were not disclosed by the competitors.

THEORETICAL BACKGROUND OF THE STUDY

Scope of market research in view of modern global business.

Research methods provide you with the knowledge and skills you need to solve

the problems and meet the challenges of a fast-paced decision-making environment.

Business research courses are a recognition that students in business, not-for-profit, and

public organizations – in all functional areas – need training in the scientific method and

its application to decision making. Two factors stimulate an interest in more scientific

decision making: (1) the manager’s increased need for more and better information and

(2) the availability of improved techniques and tools to meet this need.

During the last two decades, we have witnessed dramatic changes in the business

environment. Emerging from a historically economic role, the business organization has

evolved in response to the social and political mandates of national public policy,

explosive technology growth, and continuing innovations in global communications.

These changes have created new knowledge needs for the manager. Other knowledge

demands have arisen from problems with mergers, trade policies, protected markets,

technology transfers, and macroeconomic savings – investment issues.

The trend toward complexity has increased the risks associated with business decisions,

making it more important to have a sound information base. Increased complexity

means there are more variables to consider. The competition is more vigorous, with

many business downsizing to make competitive gains. Workers, shareholders,

customers, and the public are better informed and more sensitive to their self-interest.

Government continues to show concern with all aspects of society. Each of these factors

demands that managers have more and better information upon which to base

decisions.

To do well in such an environment, you will need to be equipped with an understanding

of scientific methods and a means of incorporating them into decision making. You will

need to know how to identify good research and how to conduct it. This book addresses

these needs.

As the complexity of the business environment has increased, there has been a

commensurate, increase in the number and power of the tools to conduct research.

There is vastly more knowledge in all fields of management. We have begun to build

better theories. The computer has given us a quantum leap in the ability to deal with

problems. New techniques of quantitative analysis take advantage of this power.

Communication and measurement techniques have also been enhanced. These trends

reinforce each other and are having a massive impact on business management.

sources of collection of primary and secondary data for market research.

ta sources may be classified as either internal (organizational) or external sources of

information.

Internal Sources

Internal sources of organizational data are so varied that it is difficult to provide

generalizations about their use. Accounting and management information systems

create and store much of the internal data. Research and development, planning, and

marketing functions also contribute. Examples are departmental reports, production

summaries, financial and accounting reports, and marketing and sales studies. The

collection methods used are unique to the specific situation, and collection success

depends on knowing just where and how to look. Sometimes the information may exist

in central files (i.e., at headquarters), in computer database, or in departmental

chronological files.

In other organizations, a central library keeps all relevant information. Systematic

searches should be made through exploratory interviews with everyone who handles

the information. Often company librarians, MIS. PR/communications, or departmental

secretaries can help in pinpointing critical data sources. Internal data sources may be

the only source of information for many studies.

External Sources

External sources are created outside the organization and are more varied than internal

sources. There are also better defined methods for finding them. This discussion is

restricted to published sources, although other sources of information may be useful.

Published sources of data can be classified into five categories. The newest and fastest

growing one is computerized database. They are composed of interrelated data files.

The files are sets of records grouped together for storage on some medium. Access may

be through online search or CD-ROM. Online databases are often specialized and focus

on information about a particular field.

Major source of published information consists of diverse materials from special

collections. Within this category there are many reference books, each a compendium

of a range of information. A second group includes university publications, of which

there are master’s theses, doctoral dissertations, and research records. A third group

includes company publications such as financial reports, company policy statements,

speeches by prominent executives, sales literature, product specifications, and many

others. There are miscellaneous information sources consisting of the productions of

various trade, professional and other associations. These organizations often publish

statistical compilation, research report, and proceeding of meeting.

DATA ANALYSIS AND INTERPRETATION

Table No.1 Number of company’s product sold by dealers.

Sr. No. PRODUCT NO. OF RESPONDENTS1 SAMSUNG 862 PHILIPS 673 LG 564 ABOVE ALL 92

TOTAL 301

Source:- Survey

Graph No. 1

0

10

20

30

40

50

60

70

80

90

100

NO. OF RESPONDENTS

NO. OF RESPONDENTS

INTERPRETATION:-

According to survey, 86 dealers were sold only SAMSUNG, 67 dealers were sold PHILIPS

and LG- 56 dealers were sold .and MOST OF THEM SOLD ALL and 92 dealers were sold

all product.

Table no. 2 shows no. of company’s product sold from dealer’s shop.

Sr. NO. NO. OF COMPANIES PRODUCT

NO. OF RESPONDENTS

1 FIVE 332 FOUR 243 THREE 94 TWO 34

TOTAL 100 Source:- Survey

Graph No. 2

FIVE FOUR THREE TWO0

5

10

15

20

25

30

35

40

NO. OF COMPANIES PRODUCT

NO. OF RESPONDENTS

INTERPRETATION-

According to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2 brands

from their shops.

Table No.3 Shows Major brand of C-TV sold by dealers.

Sr. NO.BRAND

NO. OF RESPONDENTS PERCENTAGE

1 LG 39 392 VIDEOCON 23 233 SAMSUNG 18 184 SANSUI 11 115 ONIDA 9 9

TOTAL 100 100 Source:- Survey

Graph No. :- 3

39%

23%18%

11%

9%

MAJOR BRAND OF COLOUR TELEVISION

LG VIDEOCON SAMSUNG SANSUI ONIDA

INTERPRETATION-

According to dealers, in SAGAR district LG is leading in

C-TV with 39%, after that VIDEOCON is 2nd with 23% and then SAMSUNG is on 3rd with

18%.

Table No.4 Most important parameter for more sale of C-TV

Sr. NO. REASONS FOR MORE SALES

NO. OF RESPONDENTS

PERCENTAGE

1 Price 28 282 Quality 30 303 Service 17 174 Advertisement 15 155 Schemes 10 10

TOTAL 100 100 Source:- Survey

Graph No.4

28%

30%17%

15%10%

NO. OF RESPONDENTS1 Price 2 Quality 3 Service 4 Advertisement 5 Schemes

INTERPRETATION-

According to dealers, Price is most important parameter for more sale of C-TV

and then Quality, Services, Advertisement and Schemes.

Table No. 5 shows the major brands of LCD TV sold by dealers.

Sr. NOBRAND

NO. OF RESPONDENTS PERCENTAGE

1 LG 22 222 VIDEOCON 13 133 SAMSUNG 9 94 GODREJ 12 12

Source:- Survey

Graph No. 5

22%

13%

9%

12%

19%

16%9%

MAJOR BRANDS OF LCD TV

INTERPRETATION-

According to dealers, LG also leading in the LCD TV market in SAGAR district with 22%,

.

Table No.6 shows most important parameter for more sale of LCD TV

Sr. NO. REASONS FOR MORE SALES

NO. OF RESPONDENTS

PERCENTAGE

1 Price 27 272 Quality 32 323 Service 19 194 Advertisement 13 135 Schemes 9 9

TOTAL 100 100 Source:-Survey

Graph No. :- 6

27%

32%

19%

13% 9%

NO. OF RESPONDENTS1 Price 2 Quality 3 Service 4 Advertisement 5 Schemes

INTERPRETATION-

According to dealers, most important parameter for more sale of LCD TV

is Quality and then Price, Services, Advertisement and Schemes.

Table No.7 shows Major brands of DVD sold by dealers.

Sr. NO. BRAND NO. OF RESPONDENTS PERCENTAGE1 LG 11 112 VIDEOCON 13 133 SAMSUNG 10 104 ONIDA 15 155 PHILIPS 22 226 SANSUI 12 127 SONY 8 88 INTEX 9 9

TOTAL 100 100 Source:-Survey

Graph No. :- 9

MAJOR BRAND OF DVD

1113

10

15

22

12

8 9

0

5

10

15

20

25

BRANDS

NO

. O

F R

ES

PO

ND

EN

TS

NO. OF RESPONDENTS

INTERPRETATION-

According to dealers, PHILIPS is the most popular brand in DVD market with 22%, after

that ONIDA with 15% and VIDEOCON with 13% on 3rd position.

Table No.8 shows most important parameter for more sales of DVD

Sr. NO. REASONS FOR MORE SALES

NO. OF RESPONDENTS

PERCENTAGE

1 Price 21 212 Quality 42 423 Service 17 174 Advertisement 8 85 Schemes 12 12

TOTAL 100 100 Source:- Survey

Graph No. 10

21%

42%

17%

8% 12%

NO. OF RESPONDENTS1 Price 2 Quality 3 Service 4 Advertisement 5 Schemes

INTERPRETATION-

According to dealers, Quality is major factor in respect of more sale of DVD, and then

Services and prices were to be considered.

Table NO.9 shows High Profit margin brands

Sr. No. BRANDS NO. OF RESPONDENTS PERCENTAGE1 LG 21 212 SAMAUNG 18 183 WHIRLPOOL 16 164 VIDEOCON 13 135 SONY 11 116 GODREJ 9 97 PHILIPS 7 78 KENSTAR 5 5

TOTAL 100 100 Source:- Survey

Graph No.13

HIGH PROFITABLE BRAND

0

5

10

15

20

25

BRANDS

NO

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ES

PO

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NO. OF RESPONDENTS

INTERPRETATION-

According to dealers, in Indian consumer durable industry

LG is leading company because of their low pricing policy and the better quality of

product. SAMSUNG is on 2nd position, if SAMSUNG will change their pricing policy like LG

and VIDEOCON then SAMSUNG should be on 1st position.

Table No.14 shows Suggestion from dealers for SAMSUNG to increase the business

Sr. No. SUGGESTION NO. OF RESPONDENTS1 FAST AND REGULAR AFTER

SALES SERVICE 312 REDUCE PRICES 213 INCREASE DEALER MARGIN 154 ADVERTISMENT AT RURAL

AREA 135 IMPROVE QUALITY 106 REGULAR SCHEMES 9

TOTAL 100

Source:- Survey

Graph No.14

0

5

10

15

20

25

30

35S

UG

GE

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ION

FA

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AN

DR

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UL

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UC

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NO. 1 2 3 4 5 6

Series1

Series2

Series3

Series4

Series5

Series6

Series7

INTERPRETATION-

According to suggestion of dealers, AFTER SALES SERVICE is most important factor which

is helping to the SAMSUNG for increase the sales. After that PRICES OF THE PRODUCT

should be economic. DEALER MARGIN should increase for motivation of dealers.

FINDING

1. We came to know while visiting the shop most of the dealers sold entire consumer tv

product including C-TV, LCD ,LED,PLASMA ETC.

2. We know that during the survey in consumer durable industry in SAGAR district and

rural area of SAGAR district LG is leading in MICROWAVE,

3. Study shows that quality is most important parameter for more sale of MICROWAVE

and then price is considered by consumers.

4. Study shows that quality of the product is most important parameter for tv then

price is considered by consumers.

5. While visiting the shop we came to know that quality is most important parameter

which is affect on more sales of LED TVs.

6. According to Survey, Philips is most popular brand for DVD.

8. While visiting the shop we know that LG is gives high profit margin as compare to

other competitors.

9. While visiting the shop dealers suggested that after sales service is most important

factor which contributes towards the sales of Consumer durables.

10. All the dealers were not satisfied with the profit margin.

11. SAMSUNG product is costly as compare to LG and VIDEOCON.

12. Maximum rural area is covered by the VIDEOCON because of their low price

products.

13. We came to know while visiting the shops that there was big problem of after sales

service.

14. Many dealers were facing the problem of after sale service because there is no

follow up calls from SAMSUNG.s

15. Demo calls also not done properly.

16. LG and Videocon is the main competitor of SAMSUNG.

17. Advertising of SAMSUNG CTV is more effective as compare to the competitors.

18. Sales promotion scheme were sufficient.

SUGGESTIONS &RECOMANDETION

Company should improve the after sales service of products as it is the main

factor for the sales of consumer products.

If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then

SAMSUNG will take over the LG in all categories.

Company should distribute free key chain, calendar, t-shirts for making brand

popular among people.

Company should introduce low price and low power consumption TVs for

acquiring the middle income group.

Dealer desire more advertisement to be done through local newspaper and

cable TV ads. To make consumers aware about the product.

Prompt of service in time.

Advertisements of the company’s products should focus on quality rather then

price.

Company should target upper middle class or premium class customers.

Company should introduce low cost products to satisfy the needs of low or

middle class.

Demo calls as well as follow up Help Company to maintain customer relationship

and hence the company should focus on these aspects.

CONCLUSION

With respect to the above study and the findings thereby, the company has

definitely entrenched into the urban market.

With few more concerted efforts, the said organization needs to enter the rural

market in order to completely establish itself all over.

ANNEXURE

A. Questionnaire

Study of Consumer Durable Market for SAMSUNG Electronics Ltd. With Special reference To SAGAR district.

Name of shop:

Address:

Contact no.:1) Which is consumer durable product you sold from your shop? □C-TV □Refrigerator □Washing Machine

□DVD □Microwave

2) How many no. of company’s product you sold from your shop? □ONE_______________________________________________

□TWO_______________________________________________□THREE_____________________________________________□FOUR______________________________________________□FIVE_______________________________________________□SIX________________________________________________

3) Which is major brand of Colour-MICROWAVE you sold from your shop? □SAMSUNG □LG □ Videocon □ Onida □ Sansui

4) What is the important parameter for more sales of Colour-MICROWAVE brand?□Price □ Quality □ Services □ Advertisement □ Schemes

5) Which is major brand of Refrigerator you sold from your shop?□ Godrej □ Whirlpool □ Kenstar □ LG

□ SAMSUNG □ Videocon □ Kelvinator

6) What is the important parameter for more sales of Refrigerator brand? □ Price □ Quality □ Services □ Advertisement □Schemes

7) Which is major brand of Washing Machine you sold from your shop? □ IFB □ Whirlpool □ Kenstar □ LG □ SAMSUNG □ Videocon □ Kelvinator □ Godrej

8) What is the important parameter for more sales of Washing Machine brand?□ Price □ Quality □ Services □ Advertisement □ Schemes

9) Which is major brand of DVD you sold from your shop?□SAMSUNG □ LG □ Videocon □ Onida

□ Sansui □ Philips □ Intex □SONY

10) What is the important parameter for more sales of DVD brand?□ Price □ Quality □ Services □ Advertisement □ Schemes

11) Which is major brand of Microwave you sold from your shop? □SAMSUNG □ LG □ Videocon □ Kenstar □ Godrej □ Philips □ Bajaj □SONY

12) What is the important parameter for more sales of Microwave brand?□Price □ Quality □ Services □ Advertisement

□ Schemes

13) Which company’s product you give high profit margin?□SAMSUNG □LG □VIDEOCON □SONY

□WHIRLPOOL □GODREJ □PHILIPS □KENSTAR

14) What are your suggestions for SAMSUNG to increase the sales?

_________________________________________________________________

__________________________________________________________________

BIBLIOGRAPHY

REFERENCES

BOOKS:-

Kottler Philip : Marketing Management

Chunawall S.A. : Essentials of Marketing Research

Kothari C.R. : Research Methodology

Sherlerkar S.A. : Marketing Management

Schiff man Leon. G. : Leslie Lazar Kaunk

Magazines Business world Company’s Booklet

Websites www.samsung.com www.lgelectronics.com www.videocon.com www.google.com

Newspaper Times of India Economic Times