Sales & Distribution Channel

8/3/2019 Sales & Distribution Channel

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1.1 INTRODUCTION

The present day Indian economy is viewed a highly competitive and

market oriented. At this s tate the success of any organization is total ly

depends on customer and h is sat is fac tion only . So , every bus iness

organization should see that the customer as sovereign of the market

who decides the fete of i t . Hence, i t is the responsibil i ty of any concern

to meet the requirements of cus tomers f rom t ime- to- t ime wi th greater

dynamism.

Customer sat isfaction is total ly intangible and i ts management is

very crucial aspect on the par t of the bus iness ent repreneurs . Making

such an intangible property in to tangible is great challenge among the

various organizations. This depends on customer orientat ion, customer

dynamism, t apping new avenues by the business unit , qual ity of the

product, price of the product, proper supply of materials , t imely ness in

supply, effective channel of distr ibution, customer treatment, after sale

service, product chiqueness professionalism in marketing strong grand

i mage , e ff ec ti ve packi ng s ys tem, and con ti nuous i mprovement i nbusiness and so on.

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1.2 NEE D FOR THE ST UDY :

Consumer sat is fac tion i s the mos t important object ive for any

manufactur ing concern to successfully market i t s products . Penna has

from gradually and would want to take a stock of the satisfaction level of

consumers and define areas where possible improvement may be made.

The research work has been therefore selected in this area.

The company which produces products doesnt give life to sustain

in competition without sales of products. So sales are important function

of the manufacturing company to get profi ts . Through sales only wealth

maximization if possible.

Distributions are also one of the important functions in marketing.

Through dis t r ibut ion only one company can sel l i t s products . Here the

dis tr ibution channel s contain the dealer s. Who are very near to the

customers and act as middlemen between the organizations. So there is a

need to study sales and distribute on strategies.

Distr ibution system includes distr ibution channels. Which are sets

of independent organizations involves in the process of making a product

(or) a service available for the consumption. Dist r ibut ion network is

necessary for smooth flow of goods.

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1.3 SCOPE OF THE STUDY:

The s tudy aims to measure sat is fact ion level of the dealers

regarding LG Electronics Limited. The area within which the study was

conducted regarding the information the primary data is collected in the

form of questionnaire collected from the dealers in Twin Cit ies. To sum

u p t he p ro je ct h ad w it h i n th e s co pe o f t he s tu dy i n th e a re a o f

PEREFORMANCE of SALES and DISTRIBUTION CHANNEL of LG

Electronics Limited in Twin Cities for a particular time.

1.4 OBJEC TIVES OF TH E STUD Y :

1. To assess the role of dealers in LG Electronics Limited.

2. To assess the channel performance in LG Electronics Limited.

3. To find dealers opinion on various issues of the present marketsituation and furthering (strengthening) channel effectiveness.

4. To offer suggestion in building effective channel s trategy to LGElectronics Limited

To know different brands which are preferred by customer in LG

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1.5 METHODOLOGY OF STUDY :

In view of the objectives of the study, an exploratory design

has been adopted. Fur ther the researcher also touched the descr ipt ive

r es ea rche r des ign and causa l ana ly si s t o r el at e bet ween d if fe rent

variables . Explora tory research i s one which l arge ly interpre ts the

available information on the study and i t lays emphasis on the analysis

and interpretation of the exiting and available information. This research

is general ly useful when we use the informat ion col lected f rom three

sources , viz. , s tudy of secondary sources , discuss ion wi th individuals

and analyzing the some specific case.

Sources of Data:

To perform the Research s tudy by Researcher , the sources of da ta

obtained are:

This data i s obtained by interact ing and interviewing the

dealers in Twin Cities.

This data is obtained directly from the company in the form

of broachers, charts, diagrams, document and other forms.

Data Collection Tool:Questionnaire:

This is one of the data collection tools . I t is quite popular

par ti cu la rl y i n cas e b ig enqui res. I t i s bei ng adopt ed by p ri va te

individuals , research worker, private and public organization and even

government . In this method, a quest ionnaire i s i ssued to the persons

conce rned wit h a r equest t o ans wer t he quest ions and r et ur n t he

questionnaire. A questionnaire consists of number of questions printed or

typed in a definite order or a form or set of forms.

The researcher used the structured questionnaire in which the questions

were:

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Open-ended questions

Close-ended questions

Dichotomous questions

Multiple choice questions

Sampling Design

The r es ea rche r has done h is r es ea rch s tudy on t he dea le rs o f LG

Electronics Limited to know their present sat isfaction and expectat ion

from this brand. The researcher selected the dealers of LG Electronics

Limited at HYDERABAD& SECUNDERABAD for this research study.

Sampling Plan

Sample size: Sample size consists of 100 dealers.

Sampling unit: The Sampling unit includes al l the dealers of LG

E le ct ro ni cs L im it ed p ro du cts p re se nt i n H YD ER AB AD &

SECUNDERABAD.

Sampling method: For collecting information from dealers , non-

probabilistic simple random sampling method is used.

Tools of analysis:

Th e da ta co lle cted tro ugh su rv ey ha s be en c arefu lly an d

meaningful ly analyzed by us ing well es tabl ished s tat i st ical tool and

techniques. Important statistical technique is percentage method.

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1.6 LIMITATIONS OF THE S TUDY :

The selec ted sample members are conspicuous and inconspicuous in

nature. So, there is chance to arise some errors in the courts of survey.

The errors may be as follows:

1. Respondents may not disclose the r ight informat ion, because the

researcher is very stranger to them.

2 . Respondent s may g ive p leasing answers to the r esearchers even

though it is not correct from the prospective.

3. The percept ional values l ike s tatus, not-disclosure of the correct

information and diff iculty in expressing their personal feeling to

an unknown researcher can bring wrong opinion poll ton f i l l ing

the questionnaire.

4. Since, the sample s ize i s smal l ; a perfect mix of the respondents

may not be avai l able for the r esearcher to conduct the opin ion

survey.

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1.7 CHAPTERIZATION :

1.Chapter-1 It includes Need for the study, Scope and objectives of the study,

the methodology of the study, Limitations and chapterization.

2.Chapter-II Present frame work regarding research design of the

study.

3.Chapter-III gives the brief account of industry profile and company profile and

background of the company.

4.Chapter-IV Data analysis and interpretation, this method is used to analyze and

interpretate the effectiveness of the data.

5.Chapter-V is devoted to compare the findings and suggesting on the

implementation of coca cola company.

Bibliography

Annexure

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Market:-

A m ar ke t, in g en er al , m ay b e d es cr ib ed a s a p la ce o r

geographical area where buyers and sellers meet and function, goods of

services are offered for sale, and transfers of t i t le of ownership occur.

F rom t he poi nt o f v iew o f economi cs , a mar ke t i s def ined as an

aggregate of the potenti al buyers for a product or serv ice . But , in

practice, the term market is used to denote any body of persons who are

in int imate business relat ion and carry on any extensive transaction in

any commodity.

Marketing:-

Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services to create

exchanges that satisfy individual and organizational objectives.

The present generation of producers is intel l igent in regard to the

application of procedures. They first want to find out what the consumers

want. Then they produce goods according to the needs of the consumers.

T he y r ea li ze d t ha t o nly s uc h p ro du cts c ou ld b e so ld t o th e b es ts at is fa ct io n o f t he u se rs a nd a t a p ro fi t to th e m ak er . F or t his

arrangement, however, the whole organization has to be rearranged in a

most complex manner.

Marketing starts and ends with the consumer:-

Marketing activity is concerned only with the flow of goods, from

the producer to the consumer.

In other words, to achieve maximum efficiency in marketing, there

must also be a f low of informat ion vis --vis the f low of goods . This

informat ion, for pract ical purpose, has to be col lected even before a

product i s p lanned. Subsequent information would a lso enable the

manufacturer to assess periodical changes that are required. That is why

i t i s very of ten remarked that marketing s tart s and ends with the

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consumer, with information f lowing form the consumer to the producer

and goods flowing back to the consumer from the producer.

Today they have a full-f ledged function added to marketing, viz.

Market information and Marketing Research. Under consumer oriented

marketing, it is highly essential to know what the consumer really wants.

This i s possib le only when proper informat ion i s co ll ec ted f rom the

consumers

A push s t rategy means a channel member di rects i t s promot ion

p ri mari ly a t t he middl e men t ha t a re t he meant l inks f or ward i n

distribution channel.

The product i s Pushed through the channel the producer wi l l

promote heavily to wholesalers which then also use a push strategy to

retailers in turn the retailers promote to consumers.

As market condi t ions change over t ime a company they shi f t product

growth strategies.

A company tr ies to sel l more of i ts present products to i ts present

markets. Supporting tactics might include grater spending on advert is ing

of personal selling. A firm continues to sell its present products, but to a

new market

This strategy sells for a company to develop new products to sel l to i ts

existing markets.

A company develops new products to sell to new markets.

Determining Intensity of distribution:

Distribution intensity ordinarily is thought to be a single decision.

However i f the channel was more than one l evel of middlemen the

appropriate intensity must be selected for each level.

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Intensive Selective Exclusive

Product sells its product through every available outlet in a market where

consumer might r easonable look for i t. Ult imate consumers demand

immediate sat is fact ion f rom convenience goods and wil l not defer

purchases to f ind a part icular brand. This intensive distr ibution is often

used by manufactures of this category of product.

A p roduct s el ls i ts p roduct t hr ough mul ti pl e but not a ll pos si bl e,

wholesalers and retailers in a market where a consumer might reasonable

look for i t . Selective distr ibution if appropriate for consumer shopping

goods.

The supplier agrees to se ll i ts product only to a s ingle wholesal ing

middlemen and retailer in a given market producer it is essential that the

retailer carry a large inventers.

Sales and Distribution strategy:

Sales and dist r ibut ion management const i tutes one of the most

important parts of marketing management. Exchange is the core, aspect

of market ing, and i t i s the sales and dist r ibut ion management which

facil i ties i t . Sales management has been defined as the management of a

f ir m per sona l s el li ng f unct ion. The i mpor tance o f t he s al es and

dist r ibut ion funct ion var ies across organizat ions depending upon i t s

na ture and veri ty of products , t arge t market. Consumer dens ity and

dispersion and the competi t ive practices among the other things. Sales

and distribution function is organized internally, externally or jointly.

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Distribution Distribution Distributionthrough every through multiple through a single

whole selling

Reasonable But not all reasonable Middlemen and/Out let in a market Out lets in market or retaileinmarket


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Finding and communication with prospective buyer.

Bringing together the markets offering and the prospective buyer.

Reaching an agreement on pr ice and other terms of the offer so

that ownership and possession can be transferred.

Of the markets offerings, and his satisfaction generating potential.

Actual transfer of possession i.e. timely and safe delivery.

Of relevant consumers informat ion and revenue in exchange of

goods of services.

Selling

The basic task of marketing is to bring the buyers and the sel lers

together. Regardless of the desire one has to sell and the other to buy, no

exchange can take place unt i l each one knows the des i re of the other .

The funct ion of market ing is to ensure that the r ight product i s made

available at the place, in the r ight t ime and under the r ight impression to

the consumer.

Distribution of Consumer Market:

Five channels are widely used in marketing tangible products to ult imate

consumers:

Producer consumer: The shortest , s implest distr ibution channel

for consumer goods involves no middlemen. The producer may sell from

door to door of by mail . For ins tance , south-western company uses

college students to market its books on a house-to-house basis.

Producer retailer consumer: Many large retailers buy directly

from manufactures and agricultural products. To the chagrin of various

wholesaling middlemen. Walmart has increased i ts direct dealings withproducts.

Producer wholesaler retailer consumer: If there is a

t radi t ional channel for consumer goods , this i s i t , smal l retai lers and

manufactures buy the thousands f ind this channel the only economically

feasible choice.

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Producer agent retailer consumer: Instead of using

wholesalers , many producers prefer to use agent middlemen to reach the

retai l market , especial ly large scale retai lers . For example. Clorox uses

agent middlemen such as Eisenhart & wholesaler that distr ibute a wide

range of products to retailers. In turn, Dierbergs offers its assortment of

products to final c onsumers.

Distribution of Business Goods:

A variety of channels are available to reach organizations that

in corporate the products into their manufacturing process of use them in

t he ir ope ra ti ons. I n t he d is tr ibut ion o f bus ines s goods , t he t er ms

industrial distr ibutor and merchant wholesaler are synonymous. The four

common channels for business goods:

Producer user: This direct channel accounts for a greater dollar

volume of business products than any o ther d is tr ibution s truc ture.

Manufactured of large installat ions , such as ai rplanes , generators, and

heating plants, usually sell directly to users.

Producer industrial distributor user: producers of

ope ra ti ng s uppl ie s and s ma ll acces so ry equ ipment f requen tl y use

industr ial distr ibutors to reach their markets . Manufactures of building

materials and air condit ioning equipment are two examples of f irms that

make heavy use of industrial distributors.

Producer agent user: Firm without thei r own sales

departments f id this desirable channel. Also, a company that wants to

introduce a new market may prefer to use agents rather than its own sales

force.

Producer agent industrial distributors user:

This channel is s imilar to the preceding one. I t is used when, for some

reason, i t is not feasible to sel l through agents directly to the business

user. The unit sale may be too small for direct sel l ing. Of decentral ized

inventory may be needed to supply rapidly , in which case the s torage

services of an industrial distributor are required.

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Indian Distribution System:

I t i s also impor tant to assess how the dis t r ibut ion task is being

performed in India . This t ask can be undertaken by measuring the

number of functionaries in each class, their organizational s tructure and

their capital s tructure. The margins charged by them would be a function

of the quantum i f goods moved and the populat ion served by them and

services rendered by them and would also assist in the task if measuring

their performance. Dividing the members involved in each type of trade

we can briefly get an idea about the average productive capital required

in each class of t rade. Having assessed the inputs , s t ructure and s ize

their distr ibution al l over India we are now in la posit ion to assess how

the task is being performed in terms of output.

Distribution logistics:

Logist ics was a mil it ary t erm refer ring to comple te sys tem of

moving, supply ing and quar tering t roops . Businessmen broadened

logis t ics to include any type of t ranspor tat ion and s torage. Marketers

appl ied the term to mean the physical handing of products . They also

began employing the term physical distr ibution in place of logist ics.

The area of physical dist r ibut ion has received considerable at tent ion.

The attention was quite justified for a country such as ours because of its

traditional short supply markets of for the gaps often witnessed between

the demand and available of products. Prices of essential commodities of

da ily consumptions are part icu lar ly amenable to any d is locat ion in

physical distr ibution. If any evidence is required, we need the concerns

and anxieties associated with news of strike in Rail and road transport.

Role of Distribution:

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The major role that dis t r ibut ion pays in any economy is that i t

constitutes the process by which goods and services become available for

consumpti on . Manuf ac tu re rs o f goods and s er vi ces s peci al ize i n

generating structural of form uti l i ty for their products, in the sense that

t hey c reat e a uni que s et o f demand s at is fi er s i n t he f or m o f t he ir

o ff er ing. The act ua l mas s s ca le del iver y o f t hese o ff er ings t o t he

consuming publ ic requires a di f ferent kind of special ized ef for t . This

generates t ime, place and possession uti l i ty. In other words, you cannot

obtain and consume a f inalized product unless the product is t ransported

to a place where you can get access to i t ; s tored t i ll you are ready to buy

it and ult imately exchange for money so that you can gain possession of

it.

Physical Distribution and Channels of Distribution:

If distr ibution could be treated as a whole function of marketing,

physical distr ibution and channels of distr ibution. I t is found that these

two terms are used, sometimes, interchangeably. Channels of distribution

refer, primarily, to the middlemen of intermediary marketing instructions

which perform certain market ing funct ions . More than performing the

function , these ins ti tu tions t ry to ga in access to the t arge t market .

Physical distr ibution, on the other hand, concerns with material aspects

of the f low of goods to the consumers. I t inc ludes t ransportat ion ,

storage, warehousing, packaging, etc. it is technical function in the sense

that it ensures availability of products at the right time, at the right place

and in the r ight form. The term is used often in aboard sense to include

channels of distribution also.

Service to the manufacturers:

The wholesaler provides perpetual and definite customers to the

man ufa cture rs. He e ith er pu rch ases larg e qu an tities fro m th e

manufacturer and sells them to the retai lers , of col lects smal l orders

from a number of retailers and places a bulk order with the manufacturer.

The manufacturer is thus relived of the trouble and expense of collecting

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a large number of small orders. He collects and provides the information

required for planning the production ahead. He maintains stock and thus

a ss ur es e qu ita bl e d is tr ib ut io n. H e p la ce s b ulk o rd er s w it h t he

manufacturer and thus enables him to concentrate on production and reap

the benefi ts of l arge- sca le operat ions. He shoulders a l l marketing

functions\

Position of the Wholesalers in modern marketing:

In spite of gloomy forebodings common nowadays, the wholesaler

s t i l l manages to hold his pos i t ion because of the very real services he

renders . But the wholesaler today, as compared wi th that of a hundred

years ago, is a much less important member of the business fraternity.

The following are the impor tant factors responsible for reducing his

importance:

i . Growing d isp leasure of thi s system of channel in al l quarter s.

i i. Growt h o f l ar ge r et ai l s t or es s uch as cha in s to res, Depar tmen ta l

stores, super markets, etc.

iii . M anu fac tu rers d esire to e sta blish d irect c on tra cts w ith the

customers.

iv. Development of tr anspor t and communication sys tems .

v . Frequent and unexpected changes in s ty le and fashion .

v i. Emergence of new and bi gger market s.

v ii . Growth of consumers co-opera tive in a lmos t al l fi elds .

Transportation:

Transportat ion is necessary function of marketing because most of

the markets are geographically separated from the areas of production.

Majority of manufacturing plants are far away from their most important

markets because of var ious factors . Al l goods are not ut i l ized at the

place of their origin. They require some kind of transportat ion to create

place uti l i ty. Holtz Claw vividly puts the importance of transportat ion

i n t he f ol lowi ng l iens : Mi nera ls o f o ther r aw mat er ia ls a re t o be

t ranspor ted f rom the place of ext ract ion of product ion to the factory ,

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crops are to be car r i ed f rom the farm to the loca l market or pr imary

market and from there to the places of consumption. Finished products

are to be transported from the warehouse to the wholesalers warehouses,

from warehouse to the retai l dealer , and from the dealer to the ult imate

consumer. The various modes of transport fall under the three categories:

Road transport

Rail transport

Water transport

Air transport

Pipeline transport

3.1 INDUSTRY PROFILE

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Electronics is the study of the flow of charge through various materials anddevices such as, semiconductors, resistors, inductors, capacitors, nano-structures,and vacuum tubes. All applications of electronics involve the transmission ofeither information or power. Although considered to be a theoretical branch ofphysics, the design and construction of electronic circuits to solve practical

problems is an essential technique in the fields of electronics engineering andcomputer engineering.

The study of new semiconductor devices and surrounding technology issometimes considered a branch of physics. This article focuses on engineeringaspects of electronics. Other important topics include electronic waste andoccupational health impacts of semiconductor manufacturing.

Consumer Durables(Data table headings are shown Year-wise in descending order)

Air Conditioners

Bicycles

Crystal Glass

Domestic Electrical Appliances

Gems and Jewellery

Glass Products

Kitchen Equipment

Liquefied Petroleum Gas Cylinders

Microwave Ovens

Refrigerators

Sewing Machines

Sunglasses

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Toys and Games

Washing Machines and Vacuum Cleaners

Watches and Clocks

White Goods

3.2 COMPANY PROFILE :

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About LG

Established in 1958, LG Electronics, Inc. (LG) is a global leaderand technology innovator in consumer electronics, home appliancesand mobile communications, employing more than 82,000 peopleworking in over 110 operations including 81 subsidiaries around theworld.

Comprising four business units - Mobile Communications, DigitalAppliance, Digital Display and Digital Media with 2006 global sales ofUSD 38.5 billion - LG is the world's leading producer of CDMA/GSMhandsets, air conditioners, front-loading washing machine, opticalstorage products, DVD players, flat panel TVs and home theater

Corporate

Name

LG Electronics Inc.

Established October 1, 1958 (As a private Company)

Corporate

Office

LG Twin Towers20, Yeouido-dong, Youngdungpo-gu, Seoul, Korea 150-721Tel: 82-2-3777-1114URL: http://www.LGE.com

Vice Chairman

& CEO

Yong Nam

Business Area

and

Main Product

Mobile Communications Company

CDMA Handsets, GSM Handsets, 3G Handsets

Monitor, PDP Module, OLED Panel, USB Memory

Digital Media Company

Home Theater System, DVD Recorder, Super Multi DVDRewriter, CDRW, Notebook PC, Desktop PC, PDA, PDAPhone, MP3 Player, New Karaoke System, Car Infotainment

Number of

Employees

82,772 (29,948 in Korea/ 52,824 overseas) - as of 2006

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Financial Highlights (in billion won)

2004 2005 2006 2007 2008 2009

SALES 16,601 18,602 20,176 24,659 23,774 23,170Domestic 6,084 6,654 4,793 5,086 5,509 5,947

Export 10,516 11,948 15,383 19,573 18,264 17,223

Ordinary

Profit

OrdinaryProfit

573 675 836 1,860 741 261

History

1958 Founded as Gold Star 1960sProduces Koreas first radios, TVs, refrigerators, washing machines and

air conditioners

1995 Renamed LG ElectronicsAcquires US-based Zenith

1997 Worlds first CDMA digital mobile handsets supplied to Ameritech andGTE in U.S. Achieves UL certification in U.S. Develops worlds first ICset for DTV

1998 Develops worlds first 60-inch plasma TV

1999 Establishes LG. Philips LCD, a joint venture with Philips2001 Launches worlds first internet refrigerator Exports synchronous IMT-

2000 to Marconi Wireless of Italy Significant exports to Verizon Wirelessin U.S.

2002 GSM mobile handset exports to Russia, Italy and Indonesia Establishesmarket leadership in Australian CDMA market Launches worlds firstinternet washing machine, air conditioner, and microwave oven

2003 Under LG Holding Company system, spins off to become LG Electronicsand LG Corporation Full-scale export of GPRS color mobile phones toEurope Establishes CDMA handset production line and R&D center in

China2005 Enters North-European and Middle East GSM handset market Achieves

monthly export volume above 2.5 million units (July) Top global CDMAproducer

2006 EVSB, the next-generation DTV transmission technology, chosen to be theUS/Canada Industry standard by the US ATSC Commercializes worldsfirst 55 all-in-one LCD TV

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Commercializes worlds first 71 plasma TV Develops worlds firstSatellite- and Terrestrial-DMB handsets

2007 Becomes fourth-largest supplier of mobile handsets market worldwideDevelops worlds first 3G UMTS DMB handset, 3G-based DVB-H andMedia FLO phones, DMB Phone with time-shift function, and DMBnotebook computer Establishes LG-Nortel, a network solution jointventure with Nortel

2008 LG Chocolate, the first model in LGs Black Label series of premiumhandsets, sells 7.5million units world wide Develops the first single-scan60 HD PDP module Establishes the s trategic partnership with ULAcquires the worlds first IPv6 Gold Ready logo

2009 Launches the industry-first dual-format high-definition disc player anddrive

2010 Launches soundless washing machines

Introduces new global brand identity: "Stylish design and smarttechnology, in products that fit our consumer's lives."

CEO PROFILE

Biography

Yong Nam was appointed Vice Chairman and CEO of LG Electronics

effective January 1, 2007. His appointment signifies LG's desire to achievethe status of a highly profitable, technological leader with strong brandpower.Mr. Nam honed his st rong bus iness ins ight dur ing his 30 years of experience with LG Electronics, LG Corporate and LG Telecom. He is well-known in the industry for his strategic outlook, in-depth IT experience andglobal perspective.

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Prior to his appointment, Mr. Nam served as Head of Strategic Business forLG Corporation and was responsible for overall s trategic businessinitiatives. He directly supported the LG Group chairman on a variety ofbusiness issues, including telecommunications.

Mr. Nam served as the President and CEO of LG Telecom from 1998 until2006. Under his leadership, the company's revenue increased fivefold from$560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7mil lion; and profi ts grew to around $250 mi ll ion in 2005. He wasinstrumental in introducing the world first mobile internet service, ez-i, andin commercializing mobile banking service Bank ON, now the number oneconvergence service in Korea.

In 1997, he assumed additional responsibilities, overseeing the Executive

Off ice for S trategic Projec ts , LG's corpora te-level new bus inessdevelopment arm. Later that year, he led the Multimedia Division of LGElectronics as Vice President and transformed the division into a profitablebusiness within just one year.

Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistantto the Group Chairman, he ran the in-house team that drove changemanagement. He also led corporate-wide efforts to achieve operationalexcellence and redefine LG's strategic direction.

Mr. Nam's career at LG began in 1976 when he joined LG Electronics in theoverseas business planning division. As part of this role, he spent sevenyears in the U.S. in several management positions centered on marketingand sales, which helped him, develop a global perspective on LG's business.

Mr. Nam is a graduate of Seoul National University, and is fluent inEnglish and Japanese in addition to his native Korean. He and enjoys golf,reading and hiking during his leisure time.

Yong Nam was appointed Vice Chairman and CEO of LG Electronicseffective January 1, 2007. His appointment signifies LG's desire to achievethe status of a highly profitable, technological leader with strong brandpower.

Mr. Nam honed his strong business insight during his 30 years ofexperience with LG Electronics, LG Corporate and LG Telecom. He is well-known in the industry for his strategic outlook, in-depth IT experience and

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global perspective.

Prior to his appointment, Mr. Nam served as Head of Strategic Business forLG Corporation and was responsible for overall strategic businessinitiatives. He directly supported the LG Group chairman on a variety of

business issues, including telecommunications.

Mr. Nam served as the President and CEO of LG Telecom from 1998 until2006. Under his leadership, the company's revenue increased fivefold from$560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7mil lion; and profi ts grew to around $250 mi ll ion in 2005. He wasinstrumental in introducing the world first mobile internet service, ez-i, andin commercializing mobile banking service Bank ON, now the number oneconvergence service in Korea.

In 1997, he assumed additional responsibilities, overseeing the ExecutiveOff ice for S trategic Projec ts , LG's corpora te-level new bus inessdevelopment arm. Later that year, he led the Multimedia Division of LGElectronics as Vice President and transformed the division into a profitablebusiness within just one year.

Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistantto the Group Chairman, he ran the in-house team that drove changemanagement. He also led corporate-wide efforts to achieve operationalexcellence and redefine LG's strategic direction.

Mr. Nam's career at LG began in 1976 when he joined LG Electronics in theoverseas business planning division. As part of this role, he spent sevenyears in the U.S. in several management positions centered on marketingand sales, which helped him develop a global perspective on LG's business.

Mr. Nam is a graduate of Seoul National University, and is fluent inEnglish and Japanese in addition to his native Korean. He and enjoys golf,reading and hiking during his leisure time.

Apr. 19, 2010

LG ELECTRONICS REPORTS FIRST QUARTER 2010 EARNINGS

RESULTS

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LG Electronics (LG), a leader in consumer electronics and mobilecommunications, announced un-audited earnings results of the three month per iod ended March 31, 2009. Amount in Korean Won (KRW) aretranslated into US dollars (USD) at the average rate of three month periodin each quarter, which was KRW 939 per US dollar (2010 1Q), KRW 938per US dollar (2009. 4Q, QoQ), KRW 977 per US dollar (2009. 1Q, YoY).

To accommodate comprehension of LGs global business, the companyreleased financial earnings in parent format plus additional consolidatedearnings of each division and overseas subsidiaries.

Sales and Profit

For the quarter, the company posted a revenue of KRW 6.03 trillion (USD6.43 billion) on a parent basis, increased by 4.0% from a year earlier

thanks to robust sales of premium handsets and home appliances. On aconsolidated basis which includes sales of LGs overseas subsidiaries,revenue reached KRW 9.59 trillion (USD 10.22 billion), increased by 8.3%from the previous year.

Operating profit was KRW 173 billion (USD 184 million) on a parent basiswith a margin of 2.9% compared to KRW 191 billion (USD 204 million)from a year earlier primarily due to a sluggish display and media businessin spite of a remarkable turnover in mobile business and solid performanceof appliance business. Situation on a consolidated basis was KRW 28billion (USD 29.4 million) hurt by overseas subsidiaries operating loss of

KRW 133 billion (USD 142 million).

Net Profit was a loss of KRW 123 billion (USD 131 million) on a parent basis mainly due to loss in equity method of KRW 193 billion (USD 205million) from LG. Philips LCD and overseas subsidiaries.

Consolidated performances by business division are as follows;

Mobile Communication Company recorded sales of KRW 2.51 trillion (USD2.67 billion), 14.7% higher than a year earlier. Revenue from the handsetbusiness rose 17.8% to KRW 2.35 trillion (USD 2.50 billion) from KRW 2.00trillion (USD 2.05 billion). Consolidated sales based total shipments were15.8 million units, compared to 14.1 million units YoY and 17.9 million units

QoQ. Success of Shine phone and DMB line-ups in Korea pushed upshipments 46% QoQ, and continued high demand of premium Chocolate phone in GSM open-markets led a shift of 28% QoQ. Strong growth inWCDMA phones sales was realized in Korea and the United States.

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Operating margin was 4.7%, a bit less than 6.6% on a parent basis, butrecovered from a loss of 2.6% from the first quarter of 2006.

Digital Appliance Company sales rose 15.1% to KRW 2.94 trillion (USD

3.13 billion) from a year earlier, thanks to growth in premium productlines. Improvement of an operating profit was remarkable. KRW 169billion (USD 17.9 million) was 43.6% higher than a year earlier and 37.1%from the previous quarter. Operating margin increased 1.1% point to 5.7%despite won appreciation and rise in material costs. On a parent basis themargin rose 1.8% point to 12.0%.

Digital Display Company sales including plasma display panels and flatpanel TVs and monitors rose 1.5% to KRW 2.75 trillion (USD 2.93 billion)from the previous year, but posted an operating loss of KRW 262 billion

(USD 2.79 million). Sales from Digital Media Companys media and ITproducts posted KRW 1.38 trillion (USD 1.47 million), 4.7 % down from ayear earlier. Slow in display and media business stems from seasonality plus intensified price erosion, but mainly due to lower efficiency incapacity of plasma display panels.

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned

subsidiary of LG Electronics, South Korea. In India for a decade now,

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LG is the market leader in consumer durables and recognised as a

leading

Establ ished in 1997, LG Elect ronics India Pvt . Ltd. , i s a whol ly owned

subsidiary of LG Electronics, South Korea. In India for a decade now, LG

is the market leader in consumer durables and recognised as a leading

te ch no lo gy in no va to r in t he in fo rm at io n t ec hn ol og y a nd m ob il e

communicat ions bus iness . LG is the acknowledged t rendset ter for the

consumer durable industry in India with the fastest ever nationwide reach,

latest global technology and product innovation.

One of the most formidable brands, LGEIL has an impressive portfolio of

Consumer Elec tronics , Home Appl iances, GSM mobile phones and IT

products.

LG E lect roni cs I nd ia Pvt . L td ., a who ll y owned s ubsi di ar y o f LG

Elect roni cs , Sou th Kor ea was e st ab li shed i n J anuary , 1997 a ft er

c learance f rom the Fore ign Inves tment Promot ion Board (FIPB).

The t rend of beat ing indust ry norms s tart ed wi th the fas test ever -

na t i onwi de l aunch by LG i n a pe r i od o f 4 and 1 / 2 mon t hs w i t h t he

commencement of operations in May 1997. LG set up a state-of-the art

manufactur ing faci l i ty at Greater Noida, near Delhi , in 1998, wi th an

i nves tmen t o f Rs 500 Crores. Thi s f ac il it y manuf ac tu red Col our

Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.

During the year 2001, LG also commenced the home production for i ts

eco-fr iendly Refrigerators and established i ts assembly l ine for i ts PC

Monitors at i ts Greater Noida manufacturing unit .The beginning of 2003

s aw t he r oll o ut o f t he f irs t lo ca ll y ma nu fa ctu re d D ir ec t C oo l

Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up i t s second Greenf ield manufactur ing uni t in

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Pune, Maharashtra that commences operations in October 2004. Covering

over 50 acres , the faci l i ty manufactures LCD TV, GSM Phones , Color

Televisions, Air Condi t ioners , Refrigerators , Microwave Ovens Color

Monitors.

Both the Indian manufactur ing uni ts has been des igned wi th the lates t

technologies at par with international s tandards at South Korea and are

one of the most Eco-fr iendly units amongst al l LG manufacturing plants

in the world.

LG has been able to craft out in ten years, a premium brand posit ioning

i n t he I nd ian mar ke t and i s t oday t he mos t p re fe rr ed b rand i n t he

segment.

Vision:LG Elect ronics i s pursuing the vis ion of becoming a t rue global

digital leader , at tracting cus tomers wor ldwide through i t s innovative

products and des ign. The companys goal i s to rank among the top 3

consumer electronics and telecommunications companies in the world by

2010. To achieve this , we have embraced the idea of Great Company,

Great People , r ecognizing tha t only grea t people can crea te a grea t

company.

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History& corp. milestones

1958

Gold Star (todays LG

Electronics) established

1959

Koreas first radio

produced

1962

Radio exported to the US

and Hong Kong as Koreas

first

1965

Koreas first refrigerator

produced

2000

LG Information & Communications merged

The worlds first Internet-enabled

refrigerator launched Global sales of

refrigerators reached the number one position

2001

Asynchronous IMT-2000 equipment

commercialized The worlds first Internet

enabled washing machine, air conditioner,

and microwave oven launched LG. Philips

Displays, a joint venture with Philips

established

2002

Under the LG Holding Company system, the

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1966

Koreas first black & white

TV produced

1968

Koreas first air conditioner

produced

1969

Koreas first washing

machine produced

1974

Gold Star Communications

went public

1977

Color TV produced

1978Exports surpassed US$100

million, a first for Koreas

electronics industry

1980

First EU sales subsidiary in

Germany (LGEWG)

established

1982

Color TV plant established

in the US in Huntsville,

Company spun off to LG Electronics (LGE)&

LG Electronics Investment (LGEI) The first

home network system commercialized in the

global market

2003

Worlds first synchronous-asynchronous

IMT-2000 mobile phone developed The

worlds first 76-inch Plasma TV developed

CDMA mobile handsets took the largest

share in the US and world CDMA market

Launched the worlds first Super Multi DVD

Rewriter

2004

EVSB, the next-generation DTV transmission

technology, chosen to be the US/Canada

DTV transmission standard by the US ATSC

All-in-one LG 55-inch LCD TV, the worldsfirst and largest among LCD

TVs, commercialized The worlds largest and

first 71-inch Plasma TV commercialized The

worlds first terrestrial DMB phone

developed Developed Wireless Speaker

Home Cinema System

2005

The worlds first DMB notebook

commercialized The worlds slimmest TV

commercialized The worlds largest

102-inch Plasma TV developed LG and

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Alabama

1984

Sales surpassed 1 trillion

Won

1986

European-standard VCR

plant established in

Germany

1989

Sales subsidiary and a joint

production subsidiary

established in Thailand

1990

Ireland-based design

technology center

established

1993

With the establishment of

Huizhou subsidiary in

China(LGEHZ), marketing

in China took full swing

1995

Company name changed to

LG Electronics and US-

based Zenith acquired

Nortel Networks agreed to establish a joint

venture for telecommunication network

equipment Satellite-based DMB phone

commercialized The largest share seized in

the global CDMA market

2006

Launched the LG Shine, the second handset

in the Black Label Series Globally launched

the steam washing machine and interactive

TV refrigerator Developed the

world's first 100-inch LCD TV Launched the

world's largest Full HD 102-inch Plasma TV

(1080p) Developed the world's first dual-

format high-definition Disc

Player& Drive

2007

Launches the industry's first dual-format,high-definition disc player and drive

Launches 120Hz Full HD LCD TV

Demonstrated the world-first MIMO 4G-

Enabled technologies with 3G LTE Won

contract for GSMA's 3G campaign

2008

Introduces new global brand identity:

"Stylish design and smart technology, in

products that fit ou r consumer's lives."

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1997

40-inch Plasma TV and the

worlds first IC set for

DTVs developed India

production subsidiary

(LGEIL) established

1998

Worlds first 60-inch

Plasma TV developed

1999

LG. Philips LCD

established

Facts& figures:

Business Areas & Main Products

CategoryMain

ProductsConsumer

Electronics

LCD TV , Plasma Display , Display Panel, Color

Television, Home Theatre System, Music system,

DVD Recorder/Player, MP3 & MP4 Player

Home Appliances

Room Air Conditioner, Commercial Air

Conditioner , Refrigerator, Washing Machine,

Dishwasher, Microwave, Vacuum Cleaner

Computer ProductsLaptop, Personal Computer, LCD monitor, CRT

monitor, Optical Storage Devices

Mobile PhonePremium trend setter phone , Camera Phone , Music

Phone , Color Screen GSM Handset

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Lg business domain:

THE DIGITAL FUTURE OF LG

Mobile communications, digital appliances, digital displays, and digital

media - LG is paving the way for the future.

Mobile Communications

LG is a global leader in mobile

co mmu nic atio ns, spe cializ in g in

UMTS, CDMA, and GSM hands et s.

Thanks to i t s wide range of wired and

wireless op tio ns, the c omp any is

becoming a force to be reckoned wi th

on the international market.

In India LG is target ing GSM handset

b us in es s i n p re mi um t re nd s ett er

segment , Camera & music segment &

color screen segment.

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Digital Appliances

LG changing homes in many ways,

offering customers exceptional value

and convenience. Innovative digital

appliances from 100% washer dryer

with direct drive technology, built-in

LCD TV refrigerator, Lightwave

cooking oven (solardom) to artcool

split air conditioner illustrate LG's

commitment to digital convergence.

Digital Display

LG o ffe rs a w ide ran ge o f d igitaldisp la y pro du cts, eq uipp ed with

customer-oriented designs and

technologies . With i t s LCD TVs, Ful l

HD Plasma TVs, Ultra-slim Color TVs,

LCD monitors LG is pull ing out al l the

s to ps t o r em ai n th e f ro nt ru nn er i n

today's digital display industry.

Digital Media

LG has a great interest in digital media

a nd i s c on tin ua ll y d ev el op in g a nd

producing digital convergence products

that promise to enr ich the l ives of i t s

customers. Its main focus is on

p roduci ng h igh- de fi ni ti on , qua li ty

products in a va riety of areas.

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THE LG BRAND COMPRISES FOUR BASIC ELEMENTS: VALUES,

INNOVATION, PEOPLE, AND PASSION.

Positioning Statement

LG strives to enhance the customers life (and lifestyle) with intelligent

features, intuitive functionality, and exceptional performance. Choosing

LG is a form of self-expression and self-satisfaction. Our customer will

take pride in owning the amazing and take comfort in knowing he/she

made a smart, informed decision.

Brand Platform The LG brand comprises four basic elements: Values, Innovation,

People, and Passion.

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" LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO

PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL

MAKE YOUR LIFE GOOD.

Our s logan, 'Li fe 's Good' bes t expresses our brand's values , promises ,

benefi ts and personali ty. I t is an ult imate expression for what our brand

stands for and what we str ive to deliver continuously. LG's delightfully

smart products will make your life good.

High resolution image / eps,51.8KB

Low resolution image / jpg,410KB

The LG Electronics Life's Good signature consists of the LG logo, seal ,and the s logan, "Life 's Good" set in Char lo tt e Sans typeface curved

around t he LG s ymbol. The cur vi ng o f t he s logan r ei nf or ces LG' s

personality and uniqueness.

The consis tent usage of this s ignature clear ly es tablishes the unique

identi ty of the company and unifies every division and product from LG

Electronics across the globe.

" THE FACE OF THE FUTURE. FIND OUT ABOUT THE MEANING

AND INSPIRATION BEHIND LG'S LOGO DESIGN.

The let ters "L" and "G" in a ci rcle symbol ize the wor ld, future, youth,

humanity, and technology. Our philosophy is based on Humanity. Also, it

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represents LG's ef for ts to keep close relat ionships wi th our cus tomers

around the world

.

The symbol consists of two elements: the LG logo in LG Grey and the

stylized image of a human face in the unique LG Red color. Red, the

main color, represents our friendliness, and also gives a strong

impression of LG's commitment to deliver the best. Therefore, the shape

or the color of this symbol must never be changed.

High resolution image / ai,87.6KB

Low resolution image / jpg,40.0KB

Design

The circle symbolizes the globe. The stylized image of a smiling face in

the symbol conveys friendliness and approachability. Overall, LGs

symbol represents the world, future, youth, humanity, and technology.

One eye

Goal-oriented, focused, confident.

Upper- right hand space

Intentionally left blank and asymmetric, which represents LG's creativity

and adaptability to changes.

Colors

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LG Red, the main color, symbolizes friendliness, and also gives a strong

impression of LG's commitment to be the best. LG Grey represents

technology and reliability. Brand Identity

Learn about the meaning behind the LG brand.

Product Recycling: Take Back Policy

Though telecommunication service

providers , mobile phone retai l shops and

some supermarket chains offer the

possibility of returning used mobile phones

and their accessories for reuse or

recycl ing, i t i s not a common pract ice in

today' s soc ie ty . LG Elec tronics p lans to

m ak e i t m uc h e as ie r f or c on su me rs t oreturn thei r end-of- li fe or used phones.

In In dia, the d raft rules fo r E-wa ste

(Management and Handling) Rules 2008

have been notified by the Central

Government . Though the said rules have

not been finalized as yet, but since

5th June 2009, we have voluntar ily and pro-actively made avai lable 50

mobil e phone d rop- of f poi nt s and a re expandi ng t he Count ry l evel

access ibi l i ty of take-back channels to al l of our cus tomers . To maximize

resource efficiency through mobile phone recycling, LG Electronics works

closely with al l mobile phone supply chains including telecommunication

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service providers, distributors, merchandisers customers, and the recycling

industry.

Guidance for the disposal of End of Life Products:

Consumers could contr ibute to resource conservat ion

and prevent potenti al envi ronmenta l problems by a

s imple ac tion the proper deposi ting of the i r o ld

Mobiles. Electronic waste is to be collected separately

from the general waste stream via designated collection

faci li ti es appoin ted by the government or the loca l

authorities as per the said draft rules.

Mobile Phone Voluntary Take Back:

As you are no doubt a l r eady aware , the

responsibili ty of the environment

protection has accelerated the expansion

of end-of-life product take-back

regula tions throughout the country. At

present, many company in various regions

are trying to f inalize their own take-back

poli cy . LG Elec tronics India has been

involved in the process of es tabli sh ing

such policy much ahead of the draft rules

being f inal ized and has appreciated the

int roduct ion of take-back sys tems by the

Central Government.

Recycling Mobile Phones:

Many customers might think that end-of-life mobile phones are worthless,

but they still contain many reusable or recyclable materials. This means

that leaving old phones in your desk drawer is a huge waste of valuable

resources. Let 's see how all parts of mobile phone could be recycled*.

1)Valuable metals are used as component materials

for the circuit board, LCD module, and camera

module.

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1)Plastic materials are used for structural

components such as the case and cover.2)The plast ic materials that have been collected are

recycled as energy resources after going through aheat recovery process. Alternatively , they can be

used as a form of recycled plast ic once they have

been broken down and processed.3)Recycled plast ic can be used to produce products

such as t ra ff ic cones , p las ti c f encing , and car

bumpers.

1) It i s important to coll ec t ba tt er ies separa te ly ,

given the variety of batteries that are used. Li-Ion

batteries are frequently used in mobile phones.2)Cobal t can be col lected once the bat ter ies have

been pret rea ted to avoid the r isk of explos ion

during the recycling process.3)I t is possible to sel l the cobalt that is collected or

use i t a s a r aw mat er ia l f or p roduct s s uch as

padlocks and speakers.

1)Paper is the main component used in packaging.

2)Paper can be recycled.

3)I t i s then used as recycled paper or in products

made of paper

*the above usages are only suggestive and may not necessarily mean about

the current usage

This initiative is a voluntary effort by us towards the first step towards a

cleaner and greener earth. This move is one of the ways to show that we are

concerned and thus we request all our customers to join this movement to

make it successful by way of contributing their used handsets.

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Mobile Phone India Network:

You can f ind det ai ls o f y our nea rest mob il e phone col lect ion poi nt ,

court es y o f LG E lect roni cs , and get val uabl e i nf or mati on about t he

coll ect ion of end-of -l if e e lec tronic products in your r egion , inc luding

mobil e phones. The par ti ci pa ti on i n t hi s movement i s w it hout any

obligation or consideration.

Mobile Collection Center Details

LG National Take Back Recycling Program:

Vendor : Attero RecyclingTo protect the environment LG Electronics India has

p ar tn er ed w ith A tt ero R ec yc li ng . A tt er o i s a n

author ized e-waste recycler recognized by MoEF.

Let us save the environment for a better tomorrow. We

urge you to jo in us and conver t your e-was te to e-

goods.

4.1DATA ANALYSIS & INTERPRETATION :

1) How long have you been dealing with LG Electronics Limited?a)


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Interpretation:

From the above table and graph the number of responding are 6-years

8%(8),


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Inference:

Maximum number of respondents have 60% of the dealers with 3-6 years

experience.

2) How do you feel the companies image?a) Highly satisfiedb) Satisfiedc) Neutrald) Dissatisfied

Dealers OpinionNumber of

respondentsPercentage

Highly satisfied 30 30

Satisfied 60 60

Neutral 10 10

Dissatisfied 0 0

Total 100 100

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Interpretation:

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From the above table and graph the number of responding are

highly satisfied 30%(30),satisfied 60%(60),neutral10%(10),dissatisfied

0%(0).

Inference:-

Maximum number of the respondents feel satisfied

3)How to customer more satisfaction in this field?a) Brand nameb) Pricec) Qualityd) Usages

Dealers opinion Number of

respondents

Percentage

Brand name 12 12

Price 4 4

Quality 76 76

Usages 8 8

Total 100 100

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Interpretation:

From the above table and graph the number of responding are brand

name 12%(12),price 4%(4),quality 76%(76),usages8%(8).

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Inference: -

Maximum number of respondents are satisfied with the quality.

4) How customers came to your shop?a) By your influenceb) By friendsc) By advertisingd) By brand name


respondents

Percentage

By your influence 16 16

By friends 16 16

By advertising 16 16

By Brand Name 52 52

Total 100 100

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Interpretation:

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From the above table and graph the number of responding are by you

influence 16%(16),by friends 16%(16),by advertising 16%(16),by brand

name 52%(52).

Inferenc e: -

Maximum number of respondents were come to shop By Brand

Name.

5) Do you face any difficulty in dealing with the customers?a) Yesb) NoIf yes please specify----------

Dealers opinion

Yes

No

total

48

0

20

40

60

80

100

120

yes no total

No. Of. Respondents

Percentage


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Interpretation:

From the above table and graph the number of responding are yes

30%(30),no 70%(70).

Inferenc e: -

Maximum number of respondents are not facing problem while

dealing with customer.

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6) Do you face stock out problems for LG Electronics Limited?a) Frequentlyb) Rarelyc) Nod) yes


respondents

Percentage

Frequently 0 0

Rarely 10 10

No 90 90

yes 0 0

Total 100 100

50

0

20

40

60

80

100

120

Number of respondents

Percentage


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Interpretation:


frequently 0%(0),rarely 10%(10),no 90%(90),yes 0%(0).

Inferenc e: -

Maximum number of respondents are Not facing stock out

problems for LG Electron ics Limited.

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7) Are you satisfied with the supply from the company?a) Highly satisfiedb) moderately satisfiedc) Satisfiedd) Dissatisfied

Dealers Opinion No. of.

Respondents

Percentage


Moderately satisfied 24 24

Satisfied 48 48

Dissatisfied 4 4

Total 100 100

0

20

40

60

80

100

120

No. of. Respondents

Percentage

52


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Interpretation:


highly satisfied 24%(24),moderately satisfied 24%(24),satisfied

48%(48),dissatisfied 4%(4).

Inferenc e: -

Maximum number of respondents are satisfied with the supply.

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8) How much floor space you have provide for ----------?

a) Goods storing purpose-------b) Office purpose------

Business experienceNumber of

respondentsPercentage

Goods storing purpose 80 80

Office purpose 20 20

Total 100 100

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Interpretation:


goods storing purpose 80%(80),office purpose 20%(20).

Inference:

Maximum of the dealers are space providing for a goods

storage purpose

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9) In time delivery is very important for better serving the market. Inthis connection are you satisfied with the mode o dispatch by thecompany?

a) Highly satisfiedb) moderately satisfied

c) Satisfiedd) Dissatisfied

Dealers opinion No. Of.

Respondents

Percentage


Moderately

satisfied

32 32

Satisfied 64 64

Dissatisfied 0 0Total 100 100

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Interpretation:

From the above table and graph the number of responding are highly

satisfied 4%(4),moderately satisfied 32%(32),satisfied


Inference:-

The majority of the dealers are satisfied with the mode of dispatch

by the comp any

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10) According to you most of the customers are aware of LG ElectronicsLimited through

a) Advertisementb) Campaignc) Dealer

d) Others


Respondents

Percentage

Advertisement 38 38

Campaign 8 8

Dealer 54 54

Others 0 0

Total 100 100

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Interpretation:

From the above t ab le and graph the number of r esponding are

advertisement 38%(38),campaign 8%(8),dealer 54%(54),others 0%(0).

Inference:-

Maximum number of respondents are saying dealers play majors in

customers awareness about the product

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11) Do you satisfy with the sales of LG Electronics Limited?a) Highly satisfiedb) moderately satisfiedc) Satisfiedd) Dissatisfied

Dealers opinion No. of.

Respondents

Percentage


Moderately

satisfied

22 22

Satisfied 60 60

Dissatisfied 0 0

Total 100 100

60


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Interpretation:

From the above table and graph the number of responding are highly

satisfied 18%(18),moderately satisfied 22%(22),satisfied


Inference:

18% of the dealers were highly satisfying the sale of LG Electronics

Limited

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12) How do estimate the demand for various products?a) Past salesb) Seasonalc) Ordersd) Others

Dealers opinion No. of.

Respondents

Percentage

Past sales 18 18

Seasonal 26 26

Orders 56 56

Others 0 0

Total 100 100

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Interpretation:

From the above table and graph the number of responding are past

sales 18%(18),seasonal 26%(26),orders 56%(56),others 0%(0).

Inference:-

Maximum number of respondents are estimate the sales by order

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13) Do you face any difficult in dealing with the company?

a) Yesb) No

If yes please specify____________________________________

Dealers opinion No. Of. Respondents Percentage

yes 10 10

no 90 90

total 100 100

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Interpretation:


10%(10),no 90%(90).

Inferenc e: -

Maximum number of respondents are not fell difficulty.

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14) What percentage of fright if incurs you to received goods fromcompany to your store point?

a) 2%b) 3%c) 4%

d) 5%


Respondents

Percentage

2% 60 60

3% 20 20

4% 16 16

5% 4 4

Total 100 100

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Interpretation:

From the above table and graph the number of responding are 2%

60%(60), 3% 20%(20),4% 16%(16),5% 4% (4).

Inference:

The dealers are incurs very less fright charges representing 2%, to

receive goods from company to your stock point.

67


68/81

15) Do you feel like to suggest any thing which improves distributioneffectiveness?

a) yesb) no

Dealers opinion No. of. Respondents Percentage

Yes 60 60

No 40 40

Total 100 100

68


69/81

Interpretation:

From the above table and graph the number of responding are yes 60%

(60),no 40%(40).

Inference:

Maximum number of respondents are like to suggest.

16) Which brands is most asked by customers?a) LG

b)Sonyc) Samsung

69

No. of. Respondents

yes

no

total


70/81

d) Videocon


LG 30 30

SONY 40 40

SAMSANG 16 16

VIDEOCON 14 14

total 100 100

70


71/81

Interpretation:

From the above table and graph the number of responding are lg

30%(30),Sony 40% (40),Samsung 16% (16),Videocon 14%(14).

Inferenc e: -

Maximum number of respondents like to ask Sony.

71


72/81

17) Do you get any credit period from the company?

a) yesb) no

If yes, what is the credit period you get.


yes 99 99

no 1 1

total 100 100

72


73/81

Interpretation:


99%(99),no 1%(1).

Inference:

Maximum number of dealers get credit period from thecompany

73


74/81

18) What is the average order cycle time taken by the company?a) 15 days

Dealers opinionNo. Of.

RespondentsPercentage

15 days 10 10

total 100 100

74


75/81

Interpretation:

From the above table and graph the number of responding are 15days 10%(10).

Inference:

Maximum number of respondents are clear that t ime taken by the

company is less than 5days.

75


76/81

19) How will you rate the efficiency of your sales persons?

a) very goodb) goodc) satisfactoryd) poor


very good 40 40

good 30 30

satisfactory 30 30

poor 0 10

total 100 100

76

0

20

40

60

80

100

120

No. Of. Respondents

Percentage

No. Of. Respondents

very good

good

satisfactiory

poor

total


77/81

Interpretation:

From the above table and graph the number of responding are very

good 40%(40),good 30%(30),satisfactiory 30%(30),poor 0%(0).

Inferenc e: -

Maximum number of respondents rate of efficiency is very good.

20) Do you provide appraisals to your sales persons?a) Yesb) no


yes 80 80

no 20 20

total 100 100

77

0

20

40

60

80

100

120

yes no total

No. Of. Respondents

Percentage


78/81

Interpretation:


80%(80),no 20%(20).

Inferenc e: -

Maximum number of respondents provide the sales persons

78


79/81

FINDINGS

1. Majori ty of the dealers having 3 to 6 year s experience , and l es s

number of dealers having above 6 years experience.

2 . Maj or it y o f dea le rs j us t s at is fi ed about t he company s i mage ,

remaining are neutral, Highly satisfied.

3 . Maj or it y o f t he cus tomers s at is fy ing about t he qua li ty o f t he

product next preference given brand name followed by usages ,

price.

4 . Most of the dealer s expresses cus tomers v i s it to shop by brand

name onl y. And f ol lowed dea le rs i nf luence , by f ri ends , by

advertising.

5. The ent ire dealers were saying they do not face any di ff icul t ies to

deal with the customers to selling the product.

6 . Majori ty of the dealer s saying they do no come across s tock out

problems.

7 . M aj or ity o f th e d ea le rs sa ti sf yi ng w ith th e s up ply fr om th e

company and very few members satisfied, dissatisfied.

8. Al l the dealers were saying the ent ire f loor space were providingonly for goods storing purpose.

9. Major i ty of the dealers sat isf ied wi th the mode of dispatch by the

company . And few members were modera te ly sat is fi ed , h ighly

satisfied.

10 . Majority of the d ealers th ey estimate the dema nd for vario us

products by the orders and fol lowed by seasonal base and pas t

sales.

11 . All th e d eale rs we re sayin g the y do no t fac e a ny diffic ult in

dealing with the company.

Major i ty of the dealer s were say ing about the f r ight i t incurs 2% to

receive goods from company to your stock point.

79


80/81

SUGGESTIONS

1. Provide opportunity for new entrants in the business.

2. To create awareness about the company, us ing of var ious ways of

promotional activities such as advertisement, to maintain the better

relation with dealers.

3. If possible increase the quali ty of the product and reduce the price.

4 . C om pa ny a nd d ea le rs s ho ul d t ry t o m ai nta in c us to me r g oo d

relationship as much as the possible.

5 . T ry to ma in ta in b ett er s up ply c ha in in o rd er t o im pr ov e th e

services. Supply the products with in time to the dealers.6. Try to provide discounts to dealers and credit facil i t ies .

7 . Customers , who purchase the huge amount of products , provide

free home delivery to customers place.

80


81/81

CONCLUSION

In the present competi t ive world the success of the company depends on

satisfying the customers as well as channel members.This is the area of retai l business and to win the race and be on the topcompanies are out performing by spending more on trade promotions.The channel members play a key role in increas ing the sales of FMCGproducts.The company has to pay more at tention on distr ibution, promotion andavailability of brand to win sales in the market.

The study concludes that the L.G ELECTRONICS PRODUCTS L.T.D hasto strengthen its product line by introducing new styles and new sizes.I t a lso has to increase the s tock hold ing and avai labil ity of various

brands through mot iva ting channel members by offering a t tr ac t iveschemes and incentives .

Sales & Distribution Channel

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