1

PROJECT REPORT ON
SURVEY OF THEIR WARRANTY CUSTOMERS FOR

LG ELECTRONICS

Submitted By: ABHILASH DHANIA ROLL NO. 0903002 GURGAON COLLEGE OF ENGG.

ABHILASH DHANIA

Acknowledgement

It is indeed of great moment to pleasure to express my senses to all the people who have been supportive in making my training a rich experience. I got the opportunity to do a challenging project in LG ELECTRONIC JALANDHAR (INDIA). The project is the important part of our study and gives us a real practical exposure to the corporate world and it is almost impossible to do the same without the guidance of peoples in and around us. Specifically the summer training of from 15 of june to

27th of July 2011.Similarly while doing the topic customer survey of our warranty customers in order to judge the satisfaction as a summer trainee I took help of many for my projects. It gives me immense pleasure to acknowledge LG

ELECTRONICS INDIA Ltd., which has been nice enough to give me a chance to do my summer training and providing me wonderful support through out my training period and afterward. I am thankful to MR. R.K ARORA for allowing me to do my research in his office by knowing my interest in doing research on LG consumer durables and dealer development research.

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DECLARATION
I will take pleasure in declaring that the project work that is undertaken by me is an original and authentic work done by me. This project is being submitted in partial fulfillment for award of degree of Post Graduate in Engineering from GURGAON COLLEGE OF

ENGINEERING. The content of this report is based on the information collected by me during my tenure at LG Electronics Ltd. at JALANDHAR for SIX WEEKS of training from 15 of JUNE to 27 July 2

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CONTENTS
PAGE NO. TOPICS

7. 9. 10. 11. 12. 13. 14. 16 17. 19. 20.

Executive summary Scope of the project Key findings Introduction Classification of consumer durable mkt. Opportunity Brands in consumer elec. sector History of the company L.G group Vision Slogan
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21. 26. 27. 29. 33. 34. 45. 49. 50. 51. 54. 56. 64. 66.

The partnership Mission Quality innovation L.G india Strategies adopted by the cmpny. L.G market share Customer service Consumer survey Objective of the project Types of research Data collection method Analysis Recommendations and suggestions Bibliography
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67. 69.

Consumer survey questionnaire Appandix

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

REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth the industry. The rising income levels doubleincome families and consumer awareness are the main growth drivers of the industries.

LG Electronics India is expecting to do a business of Rs.860 crore to Rs.870 crore in IT product segment during 2011, a top company executive said Friday.

Armed with a new product line, the company is expecting to do a business of Rs.860 crore to Rs.870 crore during 2011, up from Rs.766 crore registered in 2010, said LG (IT product group) head Sanjoy Bhattacharya here.

We are gradually strengthening our IT product portfolio with new LED monitors with 3D technology, worlds slimmest and IPS monitors, he said.

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IT segment contributes six to seven percent of LGs total turnover in India.

In the current year, we do not hope for much revenue from 3D LED products. But in 2013, this will grow to 20 per cent of the total IT segments revenue, Bhattacharya added.

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Scope of project
This project gives me great exposure to the consumer durable market because it includes product knowledge and the filed job in which I have visited the store comes under the region of JALANDHAR. During this project I also took part in the exhibition of LG which held for the purpose branding and awareness of LG product. This project helps me to know the market practically. My job was during this project to see the market share and also the display share of the LG product in the store. LG always insist the 50% display share of LG product because LG believes that JO DIKHTA HAI WO BIKTA HAI. My job include while visiting the shops 1. Calculate the display share of the LG product in every shop which comes under JALANDHAR region. 2. Collect the data of actual monthly sale of the LG product in every shop. 3. Check the availability of LG catalogue and the POPs in the store. 4. Find out the problems that the dealer are facing while sailing the LG product. 5. Find out the costumer response for the LG product by asking the owner of the shop. 6. Find out the distributer name from whom they purchasing their product and also weather they have direct dealership and which brand. 7. Check that demo calls are attended or not .

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Key findings:1. By calculating the display share we found that in most of store LG has 50% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG. 4. We also came to know while visiting the shops that there was big problem of after sale service. 5. Many dealers were facing the problem of after sale service because there is no follow up calls from LG. 6. Demo calls also not done properly.

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INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.

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Classification of consumer durables sector

1. Consumer electronic include vcd/dvd, home theatre, music player, color television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc 2. White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc. 3. Moulded luggage include plastics 4. Clocks and watches 5. Mobile phones

Scope
1. In term of purchasing power parity (ppp), India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. 2. India has the youngest population amongst the major countries. There are lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25. 3. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year. And there are 6 million rich household in India.

4.

The upper-middle and high-income household in urban areas are expected to grew to 38.2 million in 2007 as against 14.6 million in 2000 .

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

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e.increase in purchasing power of consumers.

5. Easy availability of finance.

Threats
Higher import duties on row materials. Cheap imports from Singapore, China and from other Asian countries.

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Brands in consumer electronic sector

MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS PANASONIC SHARP HITACHI SANSUI AKAI AIWA WHIRLPOOL ELECTROLUX

NATIONAL ) ) ) ) ) ) KOREA ONIDA VIDEOCON BPL GODREJ VOLTAS IFB

REGIONAL BUSH CROWN SALORA T-SERIES WESTON BELTAK OSKAR

CHINA

HOLLAND )

) ) ) )

JAPAN

TODAY Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and

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around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas,

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LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. . Before briefing, I have divided the introduction part into three main sub parts. 1. LG Global 2. LG India 3. LG Pune

History of company The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees.

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

Business areas and main products

Mobile communications

(a) CDMA Handsets, (b) GSM Handsets, (c) 3G Handsets, (d) Cellular Phones

Digital appliance a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net,

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g) Compressors for Air Conditioners and Refrigerators Digital display a) Plasma TVs, b) LCD TVs, c) Micro Display Panel TVs, d) Monitors, e) PDP Modules, f) OLED Panels, g) USB Memory,
h) Flat Panel Computer Monitors

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

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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 workplace

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SLOGAN
"Life's Good" represents LG's determination to provide delightfully smart products that will make your life good.

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

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THE SYMBOL

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

The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color.

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

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

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

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

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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. 3M 2. SUN 3. YAHOO 4. PHILLIPS 5. TOYOTA 6. MICROSOFT 7. HP 8. GOOGLE 9. GE 10.INTEL 11.NORTEL 12.HITACHI 13.PRADA 14.RENESAS 15.TOSHIBA 16.BESTBUY

And the number follows many more..

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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 customers life and lifestyle with intelligent features, institutive functionality and exceptional performance. The brand platform:The LG brand is composed of four basic elements 1. 2. 3. 4. Value Promise Benefits Personality

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The Brands core Value that never changes.

a. b. c. d.

Trust, Innovation, People Passion

The benefits that are consistently delivered to the customer includes Reliable products Simple design Ease of use Extraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly

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Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction.

Product Leadership We are focusing on six development areas to become the product leader. 1. 2. 3. 4. 5. 6. New Machine Reliability Conventional Installation Environment Friendly Product Low Noise & Vibration Energy Saving

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Quality Innovation

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

LG proceeds in a hierarchal manner. It is named as LG WAY. From top to bottom: No.1 LG is the VISION Jeong-DO Management is LGs unique application to ethics. LG will succeed through fair management practices and constantly developing our business skill.

A) Honest with our customer b) Providing great values to customer through constant innovation & and development. c) Equal opportunities d) Equal Treatment Management Principle - Creating value for customer

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Code of conduct of LG:

1. 2 3 4 5 Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value Fair competition Pursuit of Free Competition Compliance with Laws and Regulations Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity

6 Responsibilities to society and country Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation

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LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens. ''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings. 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.

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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.

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Local and efficient manufacturing to reduce the cost

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

R&D potential LG has the research and development facilities in Bangalore and Pune. 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.

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Product localization:-

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

MAJOR KEY SUCCESS FACTORS 1. Innovative marketing - LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup and followed it up in 2003 as well. 2. Local and efficient manufacturing to reduce cost - To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. 3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. 4. Product localization - Product localization is a key strategy used by LG. It came out with Hindi and regional language menus on its TV. 5. Regional distribution model - This has resulted in quicker rotation of stocks and better penetration into the B, C and D class markets. 6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG.

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Strategies adopted by the organization

LG follows 10 commandments which are as follows. 1. Foster working environment-5S Environment 2. Fast execution is key to success 3. Transparent and fast communication-open communication 4. Update market -knowledge Demographics 5. Win Win relationship with the trade partners 6. Customer is the king 7. Even Billing Road to ach supplier A 8. Be in touch with the market (70% Market, 30% Office). 9. Plan and Execute annual marketing Calendar-Time to market 10.Display share of 50% -to get 50% consumer share.

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LG market share of consumer appliances and consumer electronic:LG position of CTV in various states in India
90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% KERALA ORISSA UTTAR PRADESH (WEST) KARNATAKA HARYANA

LG

PUNJAB

DELHI

UTTAR PRADESH (EAST)

ASSAM AND NORTH EAST

CHHATTISGARH

MADHYA PRADESH

MAHARASHTRA

ANDHRA PRADESH

WEST BENGAL

GUJARAT

JHARKHAND

TAMIL NADU

RAJASTHAN

BIHAR

SAMSUNG

LG position of REF in various states in India

90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

LG SAMSUNG

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LG position of WM in various states in India

80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% LG SAMSUNG

LG position of AC in various States in India

70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% KERALA LG SAMSUNG

ORISSA

DELHI

UTTAR PRADESH (WEST)

KARNATAKA

UTTAR PRADESH (EAST)

HARYANA

PUNJAB

TAMIL NADU

MAHARASHTRA

ASSAM AND NORTH EAST

CHHATTISGARH

MADHYA PRADESH

ANDHRA PRADESH

WEST BENGAL

GUJARAT

JHARKHAND

RAJASTHAN

BIHAR

VOLTAS GODREJ

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LG position of Audio & Home Theater in various in India

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

PHILIPS LG SAMSUNG VIDEOCON

LG position of DVD in various in India

70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% LG PHILIPS

HARYANA

KARNATAKA

KERALA

ORISSA

DELHI

PUNJAB

UTTAR PRADESH (WEST)

UTTAR PRADESH (EAST)

ANDHRA PRADESH

GUJARAT

MAHARASHTRA

CHHATTISGARH

MADHYA PRADESH

ASSAM AND NORTH EAST

WEST BENGAL

TAMIL NADU

JHARKHAND

RAJASTHAN

BIHAR

SAMSUNG VIDEOCON

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LG JALANDHAR is the branch office of LGEIL.It is located in LAJPAT NAGAR

The organization structure is one branch manager, one chief accountant, and area sales manager of CE, HA separate for GSM, Marketing manager for CE, HA and separate for GSM.The Pune branch has warehouse at wagoli.

B.M

Account

SR.BSI
ASI

M.G I.T.Z.M L.H.D A.M AM DPT

CAC A.M AC AM M.T AMGSM BSI GSM BSI GSM

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Logistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. Logistics Management is that part of the supply chain, which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. 5Rs of Logistic followed by LG: 1. Right Time 2. Right Place 3. Right Condition 4. Right Cost 5. Right Handling

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There are three types of Warehouse1. Mother Warehouse 2. Branch Warehouse 3. Spare part warehouse The mother warehouse is that where the products from the factory are kept and from that warehouse, the products are sent to the branch warehouse. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

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5s of warehouse, which the LG strictly follow.

1. Sweeping 2. Sorting 3. Systematic Arrangement 4. Simplification 5. Self- discipline

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In warehouse, the products are pinup with 3-color paper to get the knowledge about the delivery. 1. Red Card To stop the product going into market, 2. Green card To allow the product for delivery in market, 3. Yellow Card After the product labeled with green, allow this to move in market Distribution Time: Local delivery Within 200 km. 4 hrs. 24 hrs.

Upcountry delivery - 12 hrs. Beyond 200 km. 48 hrs. The above distribution time is the time of delivery of products from warehouse to the market place, which the logistic department follows to fulfill the demand in the market at right time. In LG, we have the following process, which is followed in logistic through ERP. Order Processing Invoicing Indenting Report Order Processing Invoicing Indenting Report booking for dealers /distributors after billing process/bill generation requirement (Pdt Unit to branch unit) distributed to all

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In warehouse, there are two mode of dispersion of product from one place to another within. a) Hydraulic b) Manual

In addition, there are 35 fire extinguishers to prevent the accidental hazard within the warehouse due to fire. These fire extinguishers are valid up to year 2011. One has to follow the rule of NO Smoking within the warehouse

Logistics Ten Commandments Golden Rules 1 - Warehouse 5S to be strictly followed FG 2, 5 & 7 to be properly maintained. 2 - 100% Bar-coding for all inward & outward transaction. 3 - Follow standard pick ship process religiously. 4 No inventory mismatch, shortage or excess monthly 100% physical stocktaking. 5 Nil 30+ for FG 2, 3 & 5. 6 Nil transit damage. 7 File insurance claim within 2 days. Settle all claim all within 30 days. 8 No inter branch transfer without HO clearance. 9 PSI feeding into system by 25th of every month. Ensure 90% accuracy. 10 Apply physical FMFO.

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Problem
1- In transit material damage checking. 2- Cost target achievement. 3- Natural events tracking. 4- Fluctuation in demand-supply

Equipments

1- 100% Bar code scanner. 2- ERP Invoice Generation Process. 3- Hydraulic Trolleys for material movement. 4- Pallets for safety of material.

WAREHOUSE WITH THE EQUIPMENT.

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WAREHOUSE: REFRIGERATOR AND CTV SECTION

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CUSTOMER SERVICE

The best and the biggest international brands are here in India but the irony if it all: where is the after-sales-service? So integral to a brand, so critical for its success and so taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. So whats stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer durable companies, stockiest and dealers, analysts and market researchers to get a feel of whats really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories. Customers support following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken.

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LG also had a big problem of after sale service in India. During my project I also came to know that after sale service becomes the big issue in Pune region. Customers as well as dealer were facing the problem of after sale service. Because of this problem many dealer in Pune region were not ready to sale LG product. So it becomes the big issue. But LG has taken some solid steps towards improving customers perception and experience of after sales service. Because it very important in competitive market to provide the best service. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. The company aims to recruit 10,000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting. L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. Y V Verma, director HR and management system, LG Electronics said, "The Company was trying to find a solution for effective after sales service since last two years. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the GSM mobiles and the personal computer segments."

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1. In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing with Uttar Pradesh. 2. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to beef up the number to 10,000 by the year-end. 3. "The company has offered a scholarship to the selected students for the last six months of their training programme," 4. The company will invest Rs 8 crore (Rs 80 million) in employee development programme this year with an aim to attain a 8 per cent attrition rate. 5. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand. 6. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in Dermots public interview in ET on Wednesday). This shows commitment that Service must be made into a marketing differentiator, and leveraged thus. 7. LG has the widest service network across the country; some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. While the sale size may also be a nice multiple from nearest, it shows the company is ready to put our money where our mouth is.

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8. The company has introduced a 211 service - once you register your complaint, we will call you back in 2 hours (hence 2), set up an appointment for the next convenient day for you (hence the first 1), and show up in the promised 1-hour slot (hence the second 1). If the next convenient day for you is the next day, thats great too. Its a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities, and thus not leveraging any mileage from it. 9. The company is promoting 211 through ATL, probably the first time aftersales service is being communicated in this fashion by any product company. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of which revolve around prompt response. 10.The first LG-owned service centre opened in Gurgaon. (Service in India generally works through authorized service centers, in LGs case they work exclusively for LG.) A company-owned service centre tries that much harder, knows things better, and can even contribute as a revenue center.

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CONSUMER SURVEY DURING EXHIBITION From 16th to 25th May a consumer exhibition was organized at the college of Engineering ground. The exhibition was sponsored by Sakal group in which number of companies participated.

EXHIBITIONS PICTURES SHOWING THE PRODUCTS

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Objective of the project

Primary objective The main objective of filed survey during the project was to find out the market share of the LG and also calculate the display share. Find out the positional dealer who can sale the LG product in large volume. The main objective of research was to identify potential dealer and development these dealer. So LG can make them their direct dealer. This will ease the dependence on the some big dealer like Maharashtra and Mahaveer electronics. Find out the problem faced by the dealer in sales and the distribution. Secondary objective The Objective was to find out that how far the exhibitions are helpful in branding, While purchasing the consumer durables which parameter is most important for the consumer? Do the consumers prefer the financial facility for buying consumer durable? How frequently consumers change the consumer durable? To enhances the knowledge of consumer durable market. To increases the knowledge consumer durable product of LG. To enhances the knowledge about the marketing and branding activity.

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Types of research are:

Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research.

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

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OBJECTIVE OF THE STUDY

The objective was to find out the market share of LG products, advantages, and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale.

PICTURE SHOWING THE PRODUCT OF LG IN ONE OF THE SHOP

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Data collection methods:

After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data. Data analysis and interpretation 1. Questionnaires 2. Pie chart and Bar chart

Questionnaires: This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart: This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.
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Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent. Preparation of report: The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself. Sampling Methodology: Details of the sampling methodology, I have made made for the Customer. 07 03 200 50 questionnaire. The one is

No. of questions in questionnaires for customer: No. of question related to LG product: No. of people met during the research: No. of respondents during the research: Sample unit Professionals, Business man, Employees, House wife, Working women, Students

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Analysis:
Q1. Have you purchased any consumer durable during Exhibitions? Yes No

Inferences 1. 65 % of Customer have not purchased any consumer durable from exhibitions. 2. Only 35 % people have purchased. 3. It shows that consumers are coming in the exhibition for knowledge of product and also they want to know that weather there is actual price difference in exhibition and shop or not. 4. Consumer also want to compare to the different brand which are available in the exhibition. 5. So exhibitions are more useful to increases brand awareness. 6. People are less interested to purchase product from the exhibition.

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Q.2While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability

Inference 1. 30% of customer gives importance to price. So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand. 2. 26% give importance to brand. So price and Brand matter a lots for the costumers. And they are also want best brand in best price. 3. 19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability.

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Q3. From where you prefer buying consumer durables Exhibitions Co.shoppee Showroom

Inference: 1. A majority of customers prefer to buy from showrooms. Very less proposition of customers buys from Exhibitions. 2. 47% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts. 3. People are less interested to buy from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product.

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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons Attractive Price Service Demonstrations Offers

Inference
1. Customers buy from showrooms because of the service and convenience. These are two main factors. 2. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. 3. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms. 4. Price also a factor that attract the customer in these showrooms.

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Q.5.Which consumer durable you have and of which brand? CTV LCD PLASMA REF WM MW AC

Inference
In CTV section maximum customers have Onida, in LCD Sony is the leader, In plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM there are companies and in AC also.

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Q.6. How frequently you change your consumer durables? 1-3 years 3-5 years 5-10 years More than 10 years

INFERENCE 1. Customers prefer to change consumer durables within 5-10 years. In India people do not change consumer durable frequently. 2. 23% customers do not change their consumer durable within 10 year. 3. It represent that Indian consumer do not prefer to change their consumer durable frequently.

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Q.7.Do you prefer any financing scheme to purchase consumer durables? Yes No

INFERENCE Majority of customers do not prefer any financial scheme.

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Dealer survey Findings

1. By calculating the display share we found that in most of store LG has 50% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG. 4. We also came to know while visiting the shops that there was big problem of after sale service. 5. Many dealers were facing the problem of after sale service because there is no follow up calls from LG. 6. Demo calls also not done properly. 7. The top competitor of LG product in Pune is SAMSUNG. 8. In Pune area the performance of LG is in better position but the competitor also hold closer margin. 9. There is high growth of sale in market due to booming in new technology and better service. 10.Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer.

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RECOMMENDATIONS AND SUGGESTIONS

1. LG should improve its after sale service because its hits badly LGs market share in Pune region. 2. More detailed customaries service is to be provided. 3. The training to in shop demonstration should be given at frequent time interval and feed back should be considered positively. 4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person. 5. LG should try new dealer who have the potential. So they can target more market. 6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung. 7. The marketing managers should make better relations with dealers and reputation of the company. 8. Customer considers quality as their first preference, so the company should give more stress on this. 9. The switching of customer from LG product to other brand is due to the bed after sell service in shop. 10.The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology.

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

1. The research was conducted in a very small area. 2. My research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer. This was biggest drawback of my study. 3. Time factor was also important for me. I had only 60 days to complete my research, for which a full-fledged report was insufficient for me. 4. The customer filled the questionnaire mostly in careless manner, so it was difficult to make them hold for time. 5. I had only found the upper-middle class family to fill up the questionnaire, but generally, an average middle class family was required for the study. 6. The sample size is also very small which represent my research on consumer behavior

My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage.

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BIBLIOGRAPHY

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

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Consumer survey Questionnaire

Q1. Have you purchased any consumer durable during Exhibitions? a) Yes b) No

Q.2While purchasing consumer durable which parameter influences you? a) Price b) Product feature c) Brand d) Service e) Durability

Q3. From where you prefer buying consumer durables a) Exhibitions b) Co.shoppee c) Showroom

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons a) Attractive Price b) Service c) Demonstrations d) Offers e) Convenience
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Q.5.Which consumer durable you have and of which brand? a) CTV b) LCD c) PLASMA D) REF E) WM F) MW G) AC -------------------------------------------------------------------------------------------------------------------------------

Q.6. How frequently you change your consumer durables? a) 1-3 years b) 3-5 years c) 5-10 years d) More than 10 years

Q.7.Do you prefer any financing scheme to purchase consumer durables? a) Yes b) No

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APPENDIX
A.S.I Area Service In charge

A.S.M

Area sales manager

B.S.I

Branch Service In charge

CAC

Commercial Air Conditioning System

C.S NET

Customer Service Net

D.S.C.

Direct service centre.

L.H.D

Logistics Head of department

R.E.F

Refrigerator

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