PROJECT REPORT ON

MARKETING STRATEGIES OF LG SUBMITTED TO M.D.UNIVERSITY ROHTAK IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESSADMINISTRATION Session(2010-2012)

SUBMITTED BY: MUKESH KUMAR M. B. A 3RD SEM Regn. No:

UNIVERSITY INSTITUTE OF LAW AND MANAGEMENT STUDIES, SEC-40 GURGAON

DECLARATION

I, MUKESH KUMAR,Reng.No-1079173405,Class MBA 2nd SEM of University Institute of Law and Management Studies Hereby declare that the project entitled MARKETING STRATEGIES is an Original Work and the same has not been submitted to any other institute for the award of any other degree.

Signature of Candidate

ACKNOWLEDGEMENT

This study would not have been possible without the cooperation of and generous help from a number of people. While it may not be possible for me to express my gratitude to all of them individually, I wish to place on my record my help they extended to me during the project. appreciation to them for all the

I am extremely thankful to Mr. Sanjeev Singh [Marketing Mgr.] for his support and guidance to complete this project.

Report was completed successfully because of the grace of the god and the blessings of my parents.

(MUKESH KUMAR)

PREFACE

No professional curriculum is considered complete without work experience. Every individual who is doing management studies has to undergo this phase of practical study before he/she can consider himself/herself fully qualified as potential manager. I got an opportunity to do training with LG ELECTRONICS I under take the training in my
2nd

Yr., on Marketing Strategies of LG India Ltd. The basic aim of my study was to

know how to deal with customer & how I can make better relation with them. People affiliated with management studies have a different view on this aspect of management that classroom studies have nothing to do with practical work. But during my research I realized that a training report plays a crucial part as it prepares a MBA for the impending responsibility that awaits him/her in the future. It integrates the theoretical aspects with the practical life and helps in understanding business solutions in a better manner.

TABLE OF CONTENTS CHAPTER - I

INTRODUCTION Objective of the Study Significance of the Study Research Methodology

CHAPTER II
REVIEW OF LITERATURE

CHAPTER III
COMPANY PROFILE

CHAPTER IV
DATA ANALYSIS & FINDINGS

CHAPTER V
CONCLUSIONS & RECOMMENDATIONS

CHAPTERVI
BIBLIOGRAPHY

CHAPTERVII
Appendices

SUMMER TRAINING REPORT

Chapter-I

1.1 Objective of the study. 1.2 Significance of the study. 1.3 Research Methodology. 1.4 Tools & technique of analysis.

INTRODUCTION
Consumer durable industry is one of the most lucrative industries and is rapidly growing. The Indian economic industry witnessed proliferation of global companies in the national scene, liberalization of Indian economy coupled with the media explosion ushered in a new era of consumerism, increased purchasing power and leads to the creation of budding consumer durable market. The version Indian market offered tremendous scope to the multinationals. The growth rates were as high as 22% in the wide goods segment compared to the nearly 2-3% growth in the European market. No wonder it will witness major takeovers strategic alliances, technical collaboration and formation of fully owned subsidiaries. Adding value to the customer's life as a motto was upheld when LG touched the Indian shores way back in 1997. Today, when LG is entering a decade, it is very heartening so see that the company and all its employees have not only lived up to this motto, but taken it to tremendous heights through sheer hard work and determination. Companys mission simply was to provide valued customers with the products which add value to their life, and to build an ever lasting relationship based on that foundation. Today, this mission has emerged as leaders across categories in the Indian Consumer Electronics and Home Appliance segment. LG has in a short span of ten years setup stateof-the art manufacturing facilities and achieved a un-precedence turnover figure of Rs. 9500 Crores in 2007. It has laid out an extensive network of 77 subsidiaries across the country employing a total of 72000 people, making LG one of the most respected and visible brands in India. LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The companys goal is 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, recognizing that only great people can create a great company.

NEED OR SIGNIFICANCE OF THE STUDY

LG entered in Indian consumer electronic and home appliances industry when the price war was bitter and exchange offers were ruling the Indian market. In such scenario, high quality premium product was seen as a foolish step. But over a time span of 2 yrs LG has proved to be a great gun. But as we know that consumer taste and preference is fast changing and dont follow any rules and regulations if any company wants to be a leader it should be well informed about the changes taking place in market consumers mind and taste and formulate strategies to counter these changes. A successful company is that which changes itself with preferences and needs of consumers as well as create need for their product not letting others to take the initial step.

OBJECTIVE OF THE STUDY

The main objectives of the project are the following: To study the LGs advertising strategy vis--vis its competitors. To see how effective is the promotional and positioning strategy of LG. To find out the problems faced by dealers in selling the LG products. To find out the market share of products of LG in Delhi. To find out the most preferred brand in the market. To know the awareness level of consumers about the products of LG.

RESEARCH OBJECTIVES

Globalization has affected todays market towards the competitiveness. There are so many domestic and multinational companies growing up rapidly. Survival is being the core concept of the companies. A company must know the strategy of the competitors because it directly affects it. So there is a need for a company to know its rivals market potential, market share and selling strategies. Today the choice and preferences of consumer is also changing. Customer is now aware about the products. Customer is better educated more sophisticated. He is aggressive and critical who demands his moneys worth and pays only for what he wants. Dealers are the customers of the company and consumers are the main source of the information. This project has certain objectives for which I covered both dealers and consumers all over Delhi region.

RESEARCH METHODOLOGY

Methodology is the specification of the method for acquiring the information needed to structure the study. Universe: Universe for dealer survey was Delhi. Universe for consumer survey was Delhi. Sampling Size: sampling size for both consumers and dealers is: Sample size for consumer survey was 100 covering Residential areas and markets from different areas of Delhi. Company survey consisted of visiting 70 dealers of Delhi.

Sampling Techniques: For Consumers survey Convenient Sampling techniques was applied. For Dealers survey Random Sampling technique was used.

Collection of Data: Secondary Collection: 1. Internal Data: a . Went through some previous market studies provided by the guide. b . Previous summer training reports to grasp knowledge about white goods market. c . Study of product manual and salesman training report to get product knowledge. 2. External data: a. Scanning of various business magazines. b. Collected relevant information from the newspaper. Primary Data: 1. Interview Method:

Some of the employees of LG from Sales & marketing department and a few dealers of LG were interviewed for the purpose of exploratory a. study. The response obtained from them

was very helpful in preparing the questionnaire for dealers and deciding upon various classificatory and data variables.

b. consumers.

Two questionnaires were designed one for

the consumers and the other for the dealers. I visited 70 dealers and 100

2.

Observation Method:

Observation about the consumer behavior at dealer counter gave us lots of knowledge about the customer expectations regarding products, counter preferences for brand and after sales service.

LIMITATIONS IN RESEARCH Every study has its own limitations in terms of methodology and the resources available for its conduct. This study has no expectation to it and has been carried under following limitation: Some of the dealers as well as the customers were not forthcoming with information as they thought it to be a waste of time. Some customers were not able to respond due to lack of awareness. A number of dealers were biased towards a particular brand, which was giving them better returns. Some of the shop owners were not available so, contacted person was not able to present a fair view. Respondents lack of time to give information and their casual attitude was a big hindrance in the study. The dealers were biased by some recent experiences, which they had with a particular distributor regarding the service or distribution.

T O O L S & T E C H N I Q U E S O F A NA L Y S I S

Following tools and techniques for analyzing data collected from various methods of data collection such as questionnaire method, observation method etc. is as follows: Figureical representation of the data. Tabular representation of collected data etc.

Chapter-II

MARKETING STRATEGIES

In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy one must also have a well defined methodology for the day-to-day process of implementing it. It is of little value to have a strategy if you lack either the resources or the expertise to implement it. There are two major components of marketing strategy: How the enterprise will address the competitive marketplace How will it implement and support day-to-day operations.

In the process of creating a marketing strategy one must consider all the relevant factors. Each strategy must address some unique considerations; it is not reasonable to identify every important factor at a generic level. However, many are common to all marketing strategies. Some of the more critical are described below. In general this falls into one of four categories: Where the market is very attractive and the enterprise is strong, one will Where the market is very attractive but the enterprise is weak, one must

invest the best resources in support of the offering. concentrate on strengthening the enterprise, using the offering as a stepping-stone toward this objective. Where the market is not especially attractive, but the enterprise is strong then an effective marketing and sales effort for the offering will be good for generating near term profits. Where the market is not especially attractive and the enterprise is weak, one should promote this offering only if it supports a more profitable part of the business. Otherwise, one should determine the most cost effective way to divest the enterprise of this offering. Now, the next step is to choose a strategy for the offering that will be most effective in the market. This means choosing one of the following 'generic' strategies:

A COST LEADERSHIP STRATEGY

It is based on the concept that one can produce and market a good quality product or service at a lower cost than its competitors. These low costs should translate to profit margins that are higher than the industry average. Some conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, and close management of labor, products designed for ease of manufacturing and low cost distribution.

A DIFFERENTIATION STRATEGY

It is the one, which creates a product or service that is perceived as being unique "throughout the industry". The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to the industry. This uniqueness should also translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creative personnel, the ability to perform basic research and a good reputation.

A FOCUS STRATEGY

It may be the most sophisticated of the generic strategies, in the sense that it is a more 'intense' form of either the cost leadership or differentiation strategy. It is based on the concept of serving a particular target in such an exceptional manner, those others cannot compete. Usually this means addressing a substantially smaller market segment than others in the industry, but because of minimal competition, profit margins can be very high.

PRICING STRATEGY

Having defined the overall offering objective and selecting the generic strategy one must decide on a variety of closely related operational strategies. One of these is how one will price the offering. A pricing strategy is mostly influenced by the net income. There are three basic strategies one can consider. A SKIMMING STRATEGY: Where the offering has enough differentiation to justify a high price and one desire quick cash and have minimal desires for significant market penetration and control, then one sets the prices very high. A MARKET PENETRATION STRATEGY: Where near term income is not so critical and rapid market penetration for eventual market control is desired, then one must set the prices very low. A COMPARABLE PRICING STRATEGY: Where one is not the market leader in the industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case one can price the offering comparably to those of its competitors.

PROMOTION

To sell an offering one must effectively promote and advertise it. There are two basic promotional strategies, PUSH and PULL. THE PUSH STRATEGY: It maximizes the use of all available channels of distribution to "push" the offering

into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing the need for advertising. THE PULL STRATEGY:

It requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

DISTRIBUTION

One must also select the distribution strategy(s) which should get the offering into the hands of the customer. These include: On-premise Sales involving the sale of the offering using a field sales organization that visits the prospect's facilities to make the sale. Direct Sales involves the sale of the offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contacts. Wholesale Sales involves the sale of the offering using intermediaries or "middlemen" to distribute product or service to the retailers. Self-service Retail Sales involves the sale of the offering using self-service retail methods of distribution. Full-service Retail Sales involves the sale of the offering through a full service retail distribution channel.

CONCLUSION

After defining the strategy one must use the information one has gathered to determine whether this strategy will achieve the objective of making the enterprise competitive in the marketplace. It is essential to know who the competitors are and to understand their strengths and weaknesses. Various factors to consider include: Each of the competitors experience, Staying power, Market position,

Strength, Predictability and Freedom to abandon the market must be evaluated.

Chapter-III

COMPANY PROFILE

LG Group- The best global company

U.S. $73 billion LG Group is one of the worlds top conglomerates today, having established its supremacy in diversified fields ranging from electronics, chemicals, and cosmetics to trade and services. The LG Group was born as Lucky Chemicals in 1947, a pioneer in the fledging chemical industry with a pioneering spirit. Founder chairman planted the seed of the industry in the barren land. LG was the First Korean Company to make cosmetics and to enter the synthetic resins industry. LG established Gold Star in 1958, opening the door to electronic industry in Korea. In the early 1970s after Founder/Chairman passed away, Mr. Chakyung took over as a chairman. Under his leadership, in a decade more than 20 sister companies and schools, increased its sales by 36 times and exports by 90 times and was regarded as Koreas best leading business school. Gold Star brand product sales in 1996 came to U.S. $ 9 billion, which ranked one of the top electronic industries in the world. LG is known by consumers in more than 171 countries for offering products that deliver ultimate satisfaction. Along with the new corporate mission, LG electronics has been reborn. The organization remains fruitful and vibrant. Building a better future for customer is the top priority and the company is going top gear to make the Better Future a reality. The new corporate name and identity will continue to offer full satisfaction to customers around the world and will come to symbolize the face of the future. The management philosophy- We create value for customers through management based on esteem for human dignity The product manufactured internationally cover multimedia players, video audio products, home appliances, Information system products, communication devices, display products, magnetic recording media and electric/ electronic parts and components. Heavy investments are being made in the next generation and Environment Friendly Products.

 HOW LG GREW 1958 1962 1966 1969 1977 Gold Star (todays LG 1959 Koreas first radio produced. Koreas first refrigerator produced. Koreas first air conditioner

Electronics) established. Radio exported to the US and 1965 Hong Kong as Koreas first. Koreas first black & white TV 1968 produced. Koreas first washing machine 1974 produced. Color TV produced. 1978

produced. Gold Star Communications went public. Exports surpassed US$ 100 mill. a first for Koreas electronics industry.

1980

First EU sales subsidiary in 1982 Germany (LGEWG) 1986 established. Sales surpassed 1 trillion Won.

Color TV plant established in the US in Huntsville, Alabama. European-standard VCR plant

1984 1989

Sales subsidiary and a joint 1990 production subsidiary of 1995 established in Thailand. With the establishment

established in Germany. Ireland-based design technology center established. Company name changed to LG Electronics and US-based Zenith acquired. Worlds first 60-inch Plasma TV developed1999 LG.Philips LCD established. Asynchronous worlds first Internet oven IMT-2000 enabled launched

1993

Huizhou subsidiary in hina (LGEHZ), marketing in China 1997 took full swing. 40-inch Plasma TV and the 1998 worlds first IC set for DTVs developed 2000 India production subsidiary (LGEIL) established. LG Information & 2001 Communications merged the worlds first Internet-enabled refrigerator launched Global sales of refrigerators reached

equipment. Commercialized The washing machine, air conditioner & microwave

the number one position. 2002 Under the LG Holding 2003

LG.Philips Displays, a joint venture with Philips established. Worlds first synchronousasynchronous 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

Company system, the Company spun off to LG Electronics (LGE) & LG Electronics The Investment (LGEI)

first home network system commercialized in the global market. 2004 EVSB, the next-generation 2005

Rewriter. The worlds first DMB notebook commercialized The worlds slimmest TV commercialized The worlds largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a joint venture DMB for telecommunication hone network equipment Satellite-based commercialized The largest share seized in the global CDMA market.

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 worlds first and largest among LCD TVs, Plasma DMB Wireless 2006 commercialized TV The worlds largest and first 71-inch commercialized developed Home The worlds first terrestrial phone Speaker

Cinema System. Launched the LG Shine, the 2008 second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator developed the worlds first 100inch LCD TV Launched. The worlds largest Full HD 102-

Launched Latest technology LCD and Plasma Televisions and various types of handsets with latest technology. The worlds largest Full HD 102-inch Plasma TV (1080p) developed the worlds first dual-format high-definition Disc Player& Drive

inch

Plasma

TV

(1080p)

developed the worlds first dual-format high-definition Disc Player& Drive Table: 3.1

A VISION FOR THE FUTURE

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The companys goal is 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, recognizing that only great people can create a great company.

Figure: 3.1

LOGO CONCEPT

Figure: 3.2 The symbol mark, which represents the Face of the Future, incorporates full concepts and sentiments of the World, Future, Youth, People and Technology. The Circle with the letter L and G symbolizes that human beings are the most important aspects of business and express the resolution to do the best to maintain close ties with customer and to ensure their satisfaction. The Red Color reinforces an image of worth and familiarity highlights LGs challenge to become world Class Company. LGs symbol marks the most important element of the corporate identification system; it is a representative system of LG throughout the world. The symbol creates a unified mental image of LG necessary in international communication. It is the Face of the Future. It incorporates five concepts and sentiments: The World The Future Youth Humanity Technology

 LG IN INDIA Established in 1997, LG Electronics India Pvt. Ltd. is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognized as a leading technology innovator in the information technology and mobile communications business. LG is the acknowledged trendsetter 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 Electronics, Home Appliances, GSM mobile phones and IT products. 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). The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors. Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world.

LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment.

Figure: 3.3

 MARKETING STRATEGY OF LG In a short span of just 26 months, since its inception in May 1997, the brand has attained a brand awareness level of about 90% in the consumer durable Indian market. Considering the fact that LG electronics is a Korean multinational, entering the Indian market meant establishing itself in a different market altogether with varied culture and consumer tastes and preferences. Also that so many multinationals are sweeping into the country, it is evident that each and every company has a cutting edge over another. These global corporations are deviating from their international methodologies and improvising their strategies for local markets. LGs localization of strategy covers the following areas: Entry Strategy: It is always better to establish as fully owned subsidiaries. It is considered better if the company has a local partner but, since LGs earlier two attempts had already failed, it decided to do it all alone this time. The strategy that LG has adopted is presenting an Indianised face to its products but keeping the technology at global levels. Operations: LG opted for starting its own manufacturing facility at Greater Noida. The 20 month schedule to commission its manufacturing plant was compressed to 10 months. The company decided to go in for a Green Field Project rather than acquisitions or mergers. (For all products except refrigerators). Products: LG decided to go in for Product Adaptation Strategy. Globally LG does not operate in the direct cool refrigerator, semi automatic washing machine and 21 inch CTVs. But the company had to develop these products for the Indian market because these areas constitute a major bulk of buys for the Indian consumer. Also LG launched, Sampoorna, Indias first TV with a devangiri script on screen

display on the 50th anniversary of Indian Independence. LGs strategy of localizing its products to suit Indian tastes added to its strength. Segmentation: The Company decided to enter the high - end middleclass onward segment in the initial stages, since most of the Indian brands were targeting the low and middle end customers. In the past 3 years due to LGs distinct strategy it has carved a niche for itself in a crowded segment of 20 manufacturers. Brand: The Company launched its products in country with LG, the global leader. It did not opt for any established brands in the country to be associated with it. Leadership: At LG electronics, keeping the localized strategy in mind, the strategic areas such as sales and marketing are headed by an Indian. Generally it happens that the senior management is deprived of Indians in a transnational but LG wanted to follow this path. It wanted that the marketing division be headed by an Indian because he would be wellversed of the Indian market and cultures. Ultimately it is this step, determined whether the company wants to make profits or obtain a market share. LG definitely wants to be the leader in the consumer electronics industry. LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The companys goal is 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, recognizing that only great people can create a great company

 THE BUSINESS MODEL

MARKETING MODEL

THE SEGMENT

THE PRODUCT

THE BRAND

NICHE/MASS

TOP OF LINE/ MASS MARKET

GLOBAL

PREMIUM/ MID RANGE THE PRICE

GROWN

PREMIUM/ ECONOMIC

M AR KE T IN GM O DE L
Figure: 3.4

OPERATIONAL MODEL

ALLIANCE

ENTRY STRATEGY

LEADERSHIP

FULLY OWNED

GREENFIELD

INDIAN

INVESTMENT

INCREMENTAL

BOTTOMLINE OBJECTIVE

MARKET SHARE

OPERATIONAL MODEL
Table: 3.5

 PRODUCT OFFERINGS & RELATED STRATEGIES LG has right from its inception launched a series of state-of-the-art technology backed products. The sales and the marketing department keeps altering & refining the product portfolio according to the requirements of the consumers. Business Areas & Main Products Category Main Products 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, Computer Products Mobile Phone Vacuum Cleaner Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset Table: 3.2 Initially in 1997, the company had launched only 12 models of CTVs, 8 models of refrigerators (300 it + frost free) and 3 models of fully automatic washing machines. Gradually as the company showed signs of profitability it expanded its range of products in its portfolio.

Consumer Electronics LCD TV , Plasma Display , Display Panel, Color

Products: LG decided to go in for Product Adaptation Strategy. Globally LG does not operate in the direct cool refrigerator, semi automatic washing machine and 21 inch CTVs. But the company had to develop these products for the Indian market because these areas constitute a major bulk of buys for the Indian consumer. Also LG launched, Sampoorna, Indias first TV with a devangiri script on screen display on the 50 th

anniversary of Indian Independence. LGs strategy of localizing its products to suit Indian tastes added to its strength.

Product positioning:
The Unique Selling Proposition (USP) is based on health. The company wanted a USP for its products which no other company in the industry had. Hence it piggybacked on health. This is a niche which none of the other companys had thought of. Each of its product lines were positioned based on health: Golden Eye television- Ensuring wrinkle free viewing Refrigerators PN System (preserve nutrition system) Air conditioners Health Air ACs Washing Machines Chaos Punch +3-Fabricare system Microwave Oven Health wave cooking system

PRICING AND RELATED STRATEGIES

LG believes in Ethical Pricing. No compromise has been made by the company on the price front despite the cut-throat price war existing amongst various players in the industry. In electronics it was one of the late entrants to enter the market in 1997. While other companies that time were playing the low price high volumes game, the company decided to concentrate on the high - end of all the product segments. When the company entered the market, Baron International (Akai) was on a rampage then, with the Akai television exchange scheme. Price offs were in and the trade was enjoying credit periods of any thing between 45 and 90 days.

LG believes in value marketing.

It is exactly opposite of what Akai stands for. Akai is pushing volume by sacrificing value. LG is sacrificing volume for value. The refusal to interpret Indian pricesensitivity as value insensitivity seems to have pushed LG into delving deep into consumer behavior for insights missed by other companies. The big gain of doing it this

way is pricing power and maintaining this will remain critical. The company when it entered the market in 1997 was targeting the premium end consumer. For example: In the refrigerator category it entered the frost free 300 lit + segment which form a very little portion of the entire refrigerator market. Its 330 lit refrigerator was priced at Rs. 26,000. On the other hand Godrej and BPL were offering FF refrigerators any thing between Rs. 16,000 to Rs, 20,000. LGs basic 21 inch model of CTV is priced at Rs. 15,500. This price is higher than Sonys comparable model (Rs. 14,500). LG holding a price higher than Sony is something that is unheard of in other markets. LGs microwave ovens are nothing less than Rs. 12,500; IFB & BPL (Market leaders for microwaves) are selling them for less than Rs. 10,000 also. However the company after three years in the market has come down to mass marketing. Now it is targeting all the segments in the market. It is even concentrating on the rural areas now. It has a refrigerator for as low as Rs. 9,300 and a T V for as low as Rs. 9000. But the companys premium image in the market could be affected in the short run but this would enable the company to gain market share in the long run. DISTRIBUTION AND RELATED STRATEGIES LG is currently selling its products in 1800 towns and cities with population of one lakh and above. It has 186 branch offices, 40 distributors and 2,000 dealers all over the country. By the end of 2008, the company plans to reach another 8000 towns with a population of 50,000 or more. In this process it will add on to 100 distributors and 1500 dealers. To achieve this, the company engages eight vans to feed the country covering 5000 km every month, to familiarize the trade and the customers with LG products. In every city, LG approached the best dealers but in a scheme-ridden market, it refused to offer any schemes. It positioned itself as an ethical company, instead of discounts. LG wanted dealers to pay an advance for LG products. This ensured that the dealer would push the brand in the market place, even if it was just to keep his oven cash from staying blocked. In the long run this created a pent-up demand for the brand. LG since its inception

laid stress on Proper Channel Merchandising and Management. Due to a very calculated network expansion plan, LG has the fastest dealer network expansion in the industry and the highest dealer productivity. Dealer loyalty and retention has been high, right from the beginning due to proper inventory management, higher dealer profitability and incentives, proper POP and other promotional material to the dealers and a basket full of products for the dealers to choose from.

SUPPLY CHAIN OF LG:

LG FACTORY

EXCLUSIVE OUTLETS

C & F AGENTS

DISTRIBUTOR

DEALER

SUPPLY CHAIN OF LG.

Figure: 3.6

 PROMOTION AND RELATED STRATEGIES Following are the promotion tools used by LG electronics to promote the company as well as its products: Advertising Public Relations Sales Promotion

LG has devised an effective advertising and promotional strategy. By using appropriate media vehicles, strong concepts and USPs were developed. Also, various aspects about the brand performance, the products and strategies to the media, has been communicated very well with its excellent public relations. Today, LG stands as the No. 1 PR Company in the industry.

ADVERTISING:
The company started with advertising on print and outdoor media in 1997.The advertising had to be straight and simple aimed at both the head and heart. For e.g. to advertise for refrigerators the ad - line went From today all other refrigerators will become history. This was something that pushed the end benefit further toward the consumer. Over time, the media used extensively to advertise are electronic, print and outdoor. It is 60% TV, 30% print and 10% outdoor. Also the company has started with web advertising over the site.

Ratio for its products is the same for promotion:

In order to boost secondary sales the sales and marketing department has launched a new activity. Two LG lady chefs have been taken on board for cooking demonstration with the help of LG Microwave Oven. The demos will be held at kitty parties arranged by DSL members, at dealer counters (to attract walk in customers), to new LG microwave customers (they would be requested to invite at least 6-7 people to their

house at the time of demo). Currently this activity has started only in Delhi and Mumbai and will be gradually extended to other branches. Now that LG is coming up with its digital range of products, the vehicle that the company plans to adopt would be direct selling, in order to demonstrate the products wherever possible. The company keeps in mind the seasonality of product while promoting for its products. It advertises heavily during festive season and also during summers when the demand for ACs, washing machines is on the rise. The company considers the Advertising: Sales ratio, if sales are increasing the company tries to reduce the ad budget of late LG has got more into corporate advertising i.e. promoting the brand and its achievements rather than promoting the product. Even the ads seen on TV these days, LG is trying to promote the brand and not the product. For e.g. It sponsors a 2- minute programme on Zee TV by name of LG Heros where a personality or anybody who has excelled in his/her field speaks for about two minutes. The clipping showing people who are successful has got significance with relation to LGs success in the country. LG was one of the four sponsors of world cup

PUBLIC RELATIONS
The company takes care of the PR activities on its own mostly for press releases etc. The officials at LG are very media friendly hence 90% of the media comes to the company itself. LG stands as the no.1 PR Company in the industry. The company organizes press conferences very often to keep the media updated on its activities.

SALES PROMOTION
LG since its inception has believed in No Schemes, no Scheming. It is only once in a while that the company comes up with promotional schemes. For consumers, it has schemes like 10% off on pre- peak purchases and low finance schemes. For dealers, the company gives them good margins based on sales, sending them to Korea etc. Some of the recent schemes that LG has come up with:

 Lucky draws on purchase of every LG product, to a lucky customer, hell get a free trip to Singapore for 4 days.

Save up to Rs. 1000 on LG Microwave LG microwaves available at

introductory prices till 16th Aug 2006. According to the stages of the product life cycle, LG is in the growth stage considering the companys success over the past 3 years. Marketing objectives and strategies for the introductory and the growth stage are summarized below:

Introduction
Marketin To offer technological superior products in the market g objectives

Growth Preparing for Digitally yours image for the now millennium Launching digitally superior products for all its product ranges Catering to the mass market via its diverse priced.

Product Offering about in total 23

products to the premium end of the market Price Initially prices high to cater the premium end

ion n

Distribut

Selective Heavy advertising to create awareness about its products Table: 3.3

Intensive More into corporate advertising i.e. promotion the brand

Promotio

Chapter-IV

ANALYSIS & FINDINGS

To study the promotional strategies of various brands only newspapers were studied due to practical limitations. Four newspapers were studied for a period of more than one month from 20th March to 30th Apr 2008. 2 of them were English Newspapers i.e. Times of India and Hindustan Times and 2 Hindi Newspapers i.e. Dainik Bhaskar and Rajasthan patrika. (Assumption: Advertisement published by individual dealers was not taken into consideration, only the advertisements given by the branch offices or Head office were studied.)

COMPARISON ON THE BASIS OF TYPE OF ADVERTISEMENTS

Figure of different type of advertisement of various brands is plotted below. From the Figure it can be concluded that LG has maximum variety in advertisement. Over a period

Different type of advertisements of various brands

16 Type of advertisements 14 12 10 8 6 4 2 0 Brands 2 2 4 3 4 10 7 Electrolux Godrej Hitachi LG Samsung Videocon Voltas Whirpool 15

Figure: 4.1 of one month LG published 15 different types of advertisement, followed by Samsung having 10 types of advertisement. Electrolux and Godrej publish 2 different type of advertisement, Videocon publish 3 different type of advertisement, Hitachi and Voltas publish 4 different type of advertisement, and Whirlpool Publish 7 different type of advertisement with in a period of one month. Thus we can conclude that LG & Samsung publish maximum variety of advertisement with in a period of one month.

COMPARISON

ON

THE

BASIS

OF

TOTAL

NUMBER

OF

ADVERTISEMENT:
Figure of total number of advertisement of various brands is plotted below. From the Figure it can be concluded LG published a total of 32 advertisements, which is maximum in number. After LG other brands are left far behind with Samsung and Whirlpool having

Brand-wise classification of advertisement

35 30 25 20 15 10 5 5 0 32 19 4 7 8 6 18
Electrolux Godrej Hitachi LG Samsung Videocon Voltas Whirpool

Total advertisements

Brands
Figure: 4.2 19 and 18 advertisements respectively. From the above Figure it can also be concluded that the brand Godrej publish minimum number of advertisement with in a period of one month, Electrolux publish 5 advertisement, Hitachi publish 7 advertisement, Videocon publish 8 advertisement, and Voltas publish 6 advertisement with in a period of one month.

 COMPARISON OF ADVERTISEMENT ON THE BASIS OF NEWS PAPERS: Total no. of advertisements of individual brands in different Newspapers is noted percentage-wise. DB publishes total 34 advertisements of the total 99 advertisements published in all 4 newspapers, i.e. 34%.

Brand-wise Classification on basis of Newspapers

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
3 2 4 2 1 12 3 1 1 2 3 2 8

1 1

1 2 2

4 9

12

TOI RP HT DB

Percentage

8 1 1

4
Brands

Figure: 4.3 DB is preferred by Samsung and Whirlpool, which gives 60% and 45% of its total advertisement in DB respectively. HT is preferred by Voltas, Videocon and Godrej as they all give 50% of their advertisement in HT. RP is preferred by Electrolux and LG as each of them gives 40% of their advertisement in RP. TOI is preferred by Hitachi and Whirlpool, which gives 55% and 45% of its total advertisement in TOI respectively.

 COMPARISON OF ADVERTISEMENTS ON THE BASIS OF DAYS: Figure of total number of advertisement of various brands published on different days is plotted below. From the Figure it can be concluded that 13 advertisements are given on Fridays, which is maximum in number.

Brands-wise Classification of advertisement on basis of days

7

Number of advertisementsz

6 5 4 3 2 1 0

LG

SAMSUNG

Whirlpool

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Brands
Figure: 4.4 LG prefers giving its advertisement on Saturdays and

Sundays; it gives 21% of its advertisement on each of these days. LG gives About 7 advertisement on both day Saturdays and Sundays. and 4 on Wednesday. Whirlpool prefers Wednesday for giving its advertisement as it gives 22% of its advertisement on Wednesdays. Samsung prefers Friday for giving its advertisement as it gives 26% of its advertisement on Fridays. Samsung Gives 5 advertisement on Friday

 COMPARISON ON THE BASIS OF SIZE OF ADVERTISEMENT: Advertisement was categorized into 4 categories on basis of their size. Of all the advertisement 45% of advertisement are of 300 - 600 cm2 categories. Advertisement of

Brand -wise Classification of Advertisment on the basis of size (sq.cm)

100%
Percentage

4 4 4 4 6 3 1 1 2 3 7 4 4 5 5 6 19 6 8

80% 60% 40% 20% 0%

3 7 1 7 2 8

>600 300-600 150-300 0-150

Brands

Figure: 4.5 [Note Here: In the above Figure 1 = Electrolux (5), 4 = LG (32), 7 = Voltas (6), 2 = Godrej (4), 5 = Samsung (19), 8 = Whirlpool (18) 3 = Hitachi (7), 6 = Videocon (8), ]

size >600cm2 were highest of Electrolux equal to 80%. All the advertisement of Godrej was of 300-600 cm2 size. All the advertisement of Videocon was of 150- 300 cm2 size. Thus brand Electrolux prefer to big size advertisement.

COMPARISON ON THE BASIS OF MOSTLY TEXT/ ILLUSTRATION:

Advertisement was categorized on basis of whether it contains mostly text or illustration. All the advertisement of Videocon had mostly text. In rest of the brands, advertisement had more of illustration.

Brand - wise classification of advertisements on basis of mostly Text/ Illustration

100% 80%
4 2 2 2

Percentage

60%
5 4 7

40% 20% 0% 1 2 3

28

17

8 4

16

Text Illustrations

Brands

Figure: 4.6
[Note Here: In the above Figure 1 = Electrolux (5), 4 = LG (32), 7 = Voltas (6), 2 = Godrej (4), 5 = Samsung (19), 8 = Whirlpool (18) 3 = Hitachi (7), 6 = Videocon (8), ]

In Godrej, Electrolux and Hitachi all the advertisement had mostly illustration. Comparison on the basis of mostly text or illustration can be understood easily with the help of below chart.

COMPARISON ON THE BASIS OF PRESENCE OF HUMAN MODEL: Advertisement was categorized on basis of whether it contains a human model or not. All the advertisement of Electrolux, Godrej and Whirlpool had human model. While none of the advertisement of Hitachi and Videocon had human model.

Brand - wise classification of advertisements on basis of presence of human model

100% 80%

Percentage

60% 40% 20% 0% 1 2 3 4 5 6 7 8

Yes No

Brands

Figure: 4.7
[Note Here: In the above Figure 1 = Electrolux (5), 4 = LG (32), 7 = Voltas (6), 2 = Godrej (4), 5 = Samsung (19), 8 = Whirlpool (18) 3 = Hitachi (7), 6 = Videocon (8), ]

About 90% advertisement of LG had no human model while only 10% of advertisement of LG had human model.

COMPARISON ON BASIS OF FREQUENCY OF ADVERTISEMENT: Advertisement was categorized on basis of their frequency in newspaper. It can be concluded that 77% of the times LG gives its advertisement everyday in newspaper. Highest Gap of 4 days was found in LG. 44% of the times Samsung gives its advertisement everyday in newspaper. Highest Gap of 4 days was found in Samsung. 54% of the times Whirlpool gives its advertisement everyday in newspaper. Highest Gap of 3 days was found in Whirlpool.

COMPARISON

OF

ADVERTISEMENTS

ON

THE

BASIS

OF

PRODUCTS:
Of all the advertisements, AC has maximum of 36 advertisement followed by Ref. having 32 advertisement. Hitachi, Voltas and Videocon give advertisement of only AC. While Electrolux and Godrej gives advertisement of only Ref. Whirlpool gives 40% advertisement of both AC and Ref each. Samsung gives 55% advertisement of Ref. While LG gives maximum of 40% advertisement of All Product range.

Comparison of Advertisement on the basis of product.

32%

32% Ref. AC Other 36%

Figure: 4.8

 FINDINGS OF CONSUMERS PERCEPTION A total of 100 consumers were taken into consideration for the analysis. The survey covered different houses and markets in Delhi. Consumers Perception In Delhi: Consumers Perception was analyzed on basis of various variables. They are discussed below.

Factors affecting buying behaviour of customer

410 400 Price Brand Durability Capacity Convinience Service provide by Co. Adv. & Pub. Discount Offers Factors

Points

390 380 370 360 350

Figure: 4.9

 Perception on the Basis of Recall of Brand for Consumer Electronic Items: Consumer electronic items include Television, Refrigerator and Air Conditioners. Consumers were asked to recall the advertisement of any brand and their responses are measured and plotted in the Figure. From the Figure it is observed that advertisement of LG brand was recalled mostly.

Brand recall for consumer Elsctronic items

60 50 Points 40 30 20 10 0 32 23 11 8 Brands
Figure: 4.10

59 40

11 11

Samsung Whirlpool Panasonic LG Sony BPL Videocon Philips Others

 Perception on The Basis of Recall of Brand for Home Appliances: Home electronic items include Washing Machine and Micro Wave Ovens. Consumers were asked to recall the advertisement of any home appliance brand and their responses are measured and plotted in the Figure. From the Figure it is observed that advertisement of LG brand was recalled mostly.

Brand recall for consumer Home Appliances 50 40 Points 30 20 10 0 Brand

Figure: 4.11

Samsung Whirlpool Bajaj Godrej LG BPL Kenstar Videocon Philips IFB Others

 Perception Towards Products of LG: Consumers were asked to rate various factors of LG products and their response was measured and plotted. From the figure it is observed that LG products were perceived to have high cost, better quality and have high brand equity.

Perception towards product of LG

80 70 60 50 40 30 20 10 0
EFFECTIVE ADVERTISEMENT BETTER VARIETY TAKE CARE O F HEALTH BETTER Q UALITY GO O D BRAND EQ UITY BETTER AFTER SALES SERVICES EASY TO USE DURABLE MO RE FUCTIO NS BETTER APPEARANCE HIGH CO ST

Points

Factors
Figure: 4.12

AGE-WISE CLASSIFICATION OF CONSUMERS PERCEPTION: Consumers Perception was analyzed on basis of various Age groups. Perception of Factors Affecting Buying Behavior:
Various factors affecting buying behavior were asked to be ranked by consumers in the questionnaire

Agecwise calssification of factors affecting buying behaviour LG product

100% Brand Durability Capacity Convinience Service Provided by Co. Adv. & Pub. Discount offer
B/W 20 to 35 B/W 35 to 50 50 & above yrs. yrs.

Percentage

80% 60% 40% 20% 0%

Age Group

Figure: 4.13
They are plotted in a Figure. From the Figure it can be observed that in the age group20-34, Price and Discount Offers were found to be most important factor. In the age group 35-50, Price and Brand were found to be most important factors. In the age group >50, Convenience and Adv. And Publicity was found to be most important factors.

 Perception on The Basis of Recall of Advertisement: Consumers were asked to recall the advertisement of LG products and their response was measured and plotted in the Figure. From the Figure it is observed that age group of 20-34

Age wise classification of recall of advertisment for various product of LG

45 40 35 30 25 20 15 10 5 0

Points

50 yrs & above B/W 34 to 50yrs B/W 18 to 34 yrs

CTV

Ref.

AC

W/M

MW.

Product
Figure: 4.14 recalled mostly advertisement of Ref. and AC. While age group of 35-50 recalled mostly advertisement of CTV and Washing Machines while age group > 50 recalled Adv. of Ref. and W/M.

Data Table:
50 yrs & above B/W 34 to 50yrs B/W 18 to 34 yrs 20 30 35

CTV
20 25 38 6 20 30

Ref. AC W/MMW.
20 30 35 15 45 40

SEX-WISE CLASSIFICATION OF CONSUMERS PERCEPTION: Consumers Perception was analyzed on basis of Sex.

Perception of Factors Affecting Buying Behavior:

Various factors affecting buying behavior were asked to be ranked by consumers in the questionnaire.

Sex wise classification of factors affecting the buying behaviour of product

100% 80% 60% 40% 20% 0%
Adv. & Pub. Service provided by Co. Brand Pride Capacity Durability Convinience Discount offers

Percentage

factors

Female Male

Figure: 4.15 From the above Figure it can be observed that in males, Adv. and Publicity were found to be most important factors. In females, Capacity and Convenience were found to be most important factors.

 Perception on Basis of Recall of Advertisement: Consumers were asked to recall the advertisement of LG products and their response was measured and plotted in the Figure.

Sex wise classification of Adv. of various product of LG 100% Percentage 80% 60% 40% 20% 0%
CTV Ref. AC W/M M/W

Male Female

Product
Figure: 4.16 From the figure it is observed that females recalled adv. of Micro Wave and Washing Machines. While males recalled mostly advertisement of CTV and Ref.

USAGE WISE CLASSIFICATION OF CONSUMERS PERCEPTION Consumers Perception was analyzed on basis of whether they already possess LG product or not. Perception of Factors Affecting Buying Behavior: Various factors affecting buying behavior were asked to be ranked by consumers in the questionnaire.

Usagewise classification of factors affecting the buying behaviour of product

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
ur ab ili ty Pu b. id e nd ty o. C ap ac i Br a nc e Pr C on vi ni e by & un to isc o D ffe rs

Percentage

pr ov id ed

A dv .

Figure: 4.17 From the Figure it can be observed that in Non-users, Price and Brand equity were found to be most important factors. In Users, Services provided and Durability was found to be most important factors.

Se r

factors

Users Non usesr

vi ce

 Perception on Basis of Recall of Advertisement: Consumers were asked to recall the advertisement of LG products and their response was measured and plotted in the Figure.

Usage wise classification of Adv. of various product of LG 100% Percentage 80% 60% 40% 20% 0%
CTV Ref. AC W/M M/W

Users Non users

Product
Figure: 4.18 From the figure it is observed that Non Users recalled Adv. of AC and W/M. While Users recalled mostly advertisement of CTV, Ref. and M/W.

 Dealers Perception:

FINDINGS OF DEALERS PERCEPTION:

Dealers were asked questions regarding various factors and were asked to rate them on a 5 point scale. Points scored by individual brands were added. Maximum points, which could be scored by any brand, were 21. Their responses are plotted in the Figure. From the figure it is concluded that Sansui and Samsung were perceived as the Samsung and Crown were told to have highest Warranty period, a total of 66% Sansui and Crown were told to have best after sales service, a total of 83% Crown and Electrolux offers highest credit period, a total of 66% points. Akai has best Employee behavior, a total of 66% points. Godrej offers best supply, a total of 66% points. LG has best POPs, a total of 66% points. Sansui, Crown and Videocon offer best incentives to its dealers, a total of 50%

best brands with 10 points i.e. 47%. points. points. points.

Comparison of various brands on the basis of dealers Perception:

Comparison of different brands on the basis of Dealer's Perception

12 10 8 6 4 2 0 Brands
Figure: 4.19

Incentive POP Supply Employee behaviour Credit period After sales services Warranty period

Data table: Warranty period After sales services Credit period Employee behavior Supply POP Incentive 1.6 2.4 1.6 2 0.8 1.2 1.6 2 1.2 1.2 2 1.8 1.2 1.6 1.2 0.4 0.6 0.8 2 2.4 2 0.8 2 0.8 1.2 1.2 1.2 1.6 0.8 2 1.6 1.2 1.2 1.6 1.6 0.8 1.2 0.8 1.2 0.8 1.4 1.2 1.2 1.2 1.2 1.6 0.8 1.6 0.8 1.6 2 1.2 0.4 1.2 1.2 1.2 1.6 0.8 1.6 1.0 0.8 1.6 0.8 1.2 2.4 0.4 1.2

Points

 SWOT ANALYSIS: Strengths Weaknesses

Premium pricing, no discounts. Focus on technology and quality. Strong commitment from parent. In house manufacturing capability. Products localized to suite Indian tastes. Threats

Lack of transparency with dealers. Focus on niche segments. Dominance of Korean work culture. Little presence in A&B class towns. Opportunity

Way behind market leader. Stagnant urban demand. Nothing unique about strategy. Highly competitive market.

Convert image into market share. Wide product portfolio. Positive rub-off due to high quality. Healthy resource generation. Table: 4.1

The strategy adopted by the company of premium pricing could turn out to be its weakness in the long run. It would enable it to remain a low volumes player only. Even a company like Sony, which believes in selling premium products globally, has decided to introduce cheaper washing machine models to increase its volumes in small towns. The reason for doing this is because future demand will come from the small towns and the rural areas where consumers are extremely price sensitive.

However, within the past three years the marketing efforts of LG has paid fruits but now the company must move ahead with better proposals and ideas to survive in the competitive market. The key to survive in a competitive market place is the ability to launch models with innovative features at regular intervals. Currently LG has a wide range of products but it needs to aggressively introduce more models. LG electronics has to go a long way before it becomes a major in the consumer durables market. Becoming Indias top consumer electronics company, it means surging past BPL, Videocon and Philips. At the moment BPL is the largest player in consumer electronics and home appliances. And these companies definitely have its eyes open to know what is happening in the industry. However LGs technological superiority will provide the cutting edge to its marketing strategy. Also the support that the company is getting from the parent company that is willing to invest in more money, the companys growth is assured.

Chapter-V

CONCLUSION:

The result of success in todays highly charged competitive market depends not only in product innovation and level of productivity but also in hands of efficient service network with technological advancements and more adaptability towards information edge. It has been seen that companies are trying to lower the cost of production and trying to give more emphasis in creating value added customer base and customer service. It has lead to extreme innovation and cost reduction to the marketer. It is also seen during last few years that the companies, which have more, efficient, and meaningful service network and also the companies who have controlled the cost of distribution have eventually controlled the market. Companies are finding that they can attract more customers by giving better service or lower prices through better physical distribution. On the other hand, companies may lose customers when they fail to provide service to its customers at the right time because a satisfied customer brings five new customers while a dissatisfied customer takes away fifty. In order to multiply sales volume, only an efficient dealer and retail network can widen the geoFigureical reach of a companys products. There is substantial over capacity in the industry. A shakeout is most likely and survival will depend upon technology, pricing power, efficient after sales service and to a limited extend branding power. One thing has become quite clear now, strategic marketing is critical for survival and growth. Assessment of environmental information and determining the relative significance of threats and opportunities is an important aspect carried by all the major players. For this preparation of a profile of threats and opportunities is done. Environmental Threats: Competition- Indian market is becoming highly competitive after the

globalization; MNCs are giving very high competition to the Indian domestic brands.

Value for money- Indian market is very price sensitive, customers value for Distribution channel- Every company concentrates on its strong distribution. Check on unorganized market thriving- inputs that are imported ones in at Customers now days are very much aware about the products, so companies Every company stress on promotional based marketing.

their money.

excise paid cost has no Modified Value Added Tax paid. work hard on providing information, offers, specialty of their products to customers.

Environmental Opportunities: Building Brand- Companys image and brand name plays a great role in the Untapped rural market- Certain market surveys show that market is growing

purchasing behavior of consumers. Every company tries to increase their brand name. at the rate of around 25%, so companys like BPL, LG, Samsung are ahead in this category and are trying to tap this big market. Technology- These days the customer preference are taking a shift to technological awareness, they do not any more rely on the technology heard, rather they have the potential to get aware, and analyze the same and adapt them. Socio Economic Condition- Socio Economic Condition is a major aspect which is giving a boom to the Consumer durable industry, the purchasing power and the expenditure in entertainment of the customer is increasing day by day. CRM- Customer Relation Management is another area where all companies are trying to make their imprint.

RECOMMENDATIONS

Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. POP (Point of Purchase) displaying the cost electronic product at Rs. 10000 per unit. Awareness programs at health club, schools & Nursing homes. To win over the consumer belief and faith over the genuity of the product.

Chapter-VI

BIBLIOGRAPHY

BIBLIOGRAPHY:
1) 2) 3) 4) 5) 6) 7) 8) 9) A&M 2006, February, "LG's Fine Push & Pull Strategy". Business Today, April 2006, "Will LG be Lucky Enough to Strike Gold", George Skaria. Johnson & Schools, "Exploring Corporate Strategy", Text and Cases. Prentice Hall of India, 5 th Edition, 2002 Kotler Philip, "Marketing Management", Prentice Hall of India, 2004. Strategic Marketing by Watson and Sons 2004 edition Wilson & Gilligan, "Strategic Marketing Management", Viva Books Private Limited. T.N. chhabra & S.K. Grover, Marketing Management, Dhanpat Rai & Co. (Pvt.) Ltd. www.lgindia.com . www.top.education.com

Chapter-VII

APPENDICES

APPENDICES

CONSUMER ELECTRONICS MARKET STUDY For the purpose of collection of the data various methods are used, one of these is Questionnaire Method. In this study two Questionnaires are prepared one for customers and another one for dealers. These two Questionnaires are given to 100 customers and 70 Dealers in Delhi for filling up. Thus data collected from these Questionnaires is analyzed by representing Figureically. Thus following two Questionnaires are taken into consider: Questionnaire for Customers, and Questionnaire for Dealers

QUESTIONNAIRE FOR CONSUMERS

1) Full . 2) Which of the following Age group do you belong? Above 50yrs 35yrs to 50 yrs 20yrs to 35 yrs Less than 20 yrs. (terminate.) Name:

3) Sex:
Male Female

4) Monthly Income: Less than Rs 3000 Rs 9000 to 15000 Rs 3000 to 9000 above than Rs 15000

5) Are you planning to buy any consumer electronics item within a year? Yes (continue) No (terminate)

6) Are you or someone else in your family working for a consumer electronics company? No (continue) Yes (terminate)

7) What is your total monthly household income? Less than Rs 3000 Rs 9000 to 15000 Rs 3000 to 9000 above than Rs 15000

8) What all products of consumer electronics are there in your house?

CTV:

LG BPL Other

Samsung Videocon

Sansui Onida

LG

Refrigerator: Whirlpool Other Electrolux

Godrej LG Voltas LG Videocon Washing Machine: Air Conditioner:

Carrier Samsung

Hitachi Other

Samsung Other

Whirlpool

LG IFB

Microwave: Samsung Whirlpool Kenstar Other

9) Rank

the following factors in the way they affect your buying decision of a

consumer electronics product? (Rank 1 being least important and 5 being most important) Price Capacity Discount Offers Brand Convenience Service provided by the co. Durability Adv. & Pub.

10) Which two brands first come in your mind when you talk of consumer Electronic items and Home Appliances? Consumer Electronic Item: ___________________

___________________ Home Appliances: ___________________ ___________________

11)

What is your impression about the following on LG products? (Rank these .. .. .. .. .. .. .. .. .. .. ..

factors from 0 to 100.) High Cost Better Appearance More Functions Durable Easy to use Better After Sale Services Good Brand Equity Better Quality Take Care of Health Better Variety Effective Advertisement

12) What additional features you require to become a prospective Customer of LG? _________________________________________________________________________ _______________________________________________________________________ 13) Any Recommendations and Suggestions. _________________________________________________________________________ _______________________________________________________________________ (Thank you for participating in our survey)

QUESTIONNAIRE FOR DEALERS

1) Name of Dealer: ... 2) Name of Owner: .. 3) What all items of consumer electronics are sold in this shop? (Read below list and mark check box before the consumer electronic items which are sold in this shop and write others also, if any) None (terminate). Colour Television. Others Refrigerator. Washing Machine. Microwave. Air Conditioner.

4) For how long you have been selling consumer electronics items in this shop? Less than one year (terminate). One year or more (continue).

5) What all brands of consumer electronics are sold in this shop? (Read list, given below, and mark check box before the Brand, consumer electronic items of which are sold in this shop and write others also, if any) LG Voltas Godrej Others.. Samsung Videocon Hitachi Whirlpool Electrolux Sony

6) What are your annual sales of following products of various brands during past year? (Annual sales in units) (Record answers of questions 3 in table below; ask sales of ticked items only) Different electronic products. Brands. Ref. LG. Samsung. Whirlpool. Voltas. Videocon. Electrolux. Godrej. ................ . . AC CTV W/M M/W

7) What is your opinion about Warranty Period offered by company in its products? (Ask about ticked brands only.) (Record answer of question 4 in table below :)
Totally Unsatisfied Very much Unsatisfied Somewhat Unsatisfied Somewhat Unsatisfied Very much Unsatisfied Totally Unsatisfied

Brands

Neutral

ol n x

LG Samsung Whirlpo

Voltas Videoco Electrolu

Godrej

8) What is your opinion about Credit Period offered by company? (Ask about ticked brands only) (Record answer of question 5 in table below :)
Totally Unsatisfied Very much Unsatisfied Somewhat Unsatisfied Somewhat Unsatisfied Very much Unsatisfied Totally Unsatisfied

Brands

Neutral

ol n x

LG Samsung Whirlpo

Voltas Videoco Electrolu

Godrej

9) What is your opinion about Supply offered by company? (Ask about ticked brands only) (Record answer of question 6 in table below :)
Totally Unsatisfied Very much Unsatisfied Somewhat Unsatisfied Somewhat Unsatisfied Very much Unsatisfied Totally Unsatisfied

Brands

Neutral

LG

ol n x

Samsung Whirlpo

Voltas Videoco

Electrolu

Godrej

10) Do you think that Catalogues and POPs (Point of Purchase) provided by company are effective? (Ask about ticked brands only) (Record answer of question 6 in table below :)
Completely Agreed Vary much Agreed Somewhat Agreed Somewhat Disagreed Vary much Disagreed Complete. Disagreed

Brands

Neutral.

LG Samsung Whirlpool Voltas Videocon Electrolux Godrej

11) What is your opinion about After Sales Service offered by company to its customers? (Ask about ticked brands only) (Record answer of question 6 in table below :)
Totally Unsatisfied Very much Unsatisfied Somewhat Unsatisfied Somewhat Unsatisfied Very much Unsatisfied Totally Unsatisfied

Brands

Neutral

l x

LG Samsung Whirlpoo

Voltas Videocon Electrolu

Godrej

12) What is your opinion about Sales Incentives offered by company to you? (Ask about ticked brands only) (Record answer of question 6 in table below :)

Brands

Totally Unsatisfied

Very much Unsatisfied

Somewhat Unsatisfied

Neutral

Somewhat Unsatisfied

Very much Unsatisfied

Totally Unsatisfied

LG Samsung Whirlpool Voltas Videocon Electrolux Godrej

13) What is your opinion about Employee Behavior of following Companies? (Ask about ticked brands only.) (Record answer of question 6 in table below :) Brands LG Samsung Whirlpool Voltas Videocon Electrolux Godrej
Totally Unsatisfied Very much Unsatisfied Somewhat Unsatisfied Neutral Somewhat Unsatisfied Very much Unsatisfied Totally Unsatisfied