INTRODUCTION The essence of modern Marketing concept is that all elements of business should be geared towards the satisfaction

of consumers. This requires a thorough understanding of consumer behaviour and buying motivations. Without such insights Marketers will fail to segment markets effectively and design strategies for an effective penetration into defined market segments. The adaptation of the consumer focus is in fact the real difference between the traditional concept of selling and the modern concept of Marketing Management to suitably react to the given wants of the consumers in passive way. They must play a more active role in anticipating consumers needs and wants in shaping their desires and aspirations and in adding them in the solutions of their numerous day to day problems .Such a Marketing is way of business and dictates every activity operation and policy of affirm with customer satisfaction at its root, It does not mean that business is benevolent and profits are secondary to consumer satisfaction. It however does mean the guaranteed root to profits is through consumer satisfaction. Recognizing the Importance of consumer understanding Research into consumer motivation, cognition, beliefs, attitudes, learning, perception, emotions and opinions had made tremendous strides during the last decade particularly in competitive marketing environments. Concepts from various Behavioural and social sciences like econonmics,Psychology,sociology and anthropology and their related sub disciplines have all been deployed to develop insights into the How and Why of Consumer behaviour. A wide variety of sophisticated researches took and techniques from both quantitative behavioural areas have been serviced into this understanding. Though the job is in no scene complete nor it will ever be, yet the progress made so far is significant and had helped in uncovering at least some important aspects of this complex human behaviour. Although factors like price, quality, service etc. Are different and drive customers decision of selecting one particular brand. The success or failure of those concerned player in a field of identical products can be attributed to Marketing. So talking about

Marketing is not that easy as it appears literally as a subject because the core concept of Marketing lies in its practical application. Thats why it is rightly said that it takes only a semester to learn Marketing but a Lifetime to master it So this project entitled Consumer Behaviour towards the LG Air Conditioners is an attempt to understand some of the attributes of consumer behaviour and its Marketing implication towards a particular brand of a particular product.

COMPANY PROFILE THE FOUNDATION OF LG: LG was established in 1947 as Koreas first chemical company ,also becoming the nations first electronics company with its expansion into home appliances in 1958.The new corporate was launched including the change of the group name from LUCKYGOLDSTAR to LG in 1995. BUSINESS FIELDS: The wide variety of activities that LG conducts are coordinated within three highly focused business sectors: Chemicals, electronics and telecommunication .each sector has undergone systematic changes, with improved financial compositions, restructured business portfolios and realigned equity investment structure VISION OF LG: GLOBAL TOP 3 BY 2010 LG electronics pursues its 21st century vision of becoming a true global digital leader who can make its customers world wide happy through its innovative digital products and its services LG electronics sets its mid term and long term vision anew to rank among the top 3 electronics, information and telecommunication firms in the world by 2010.

GROWTH STRATEGY: FAST GROWTH: It is the result of strategies designed to expand the market size and earnings quickly, in the process improving the growth rate in terms of monetary value rather than quantity.

FAST INNOVATION: It involves setting extremely high innovation goals and securing a competitive edge, aiming foe a target of 30% more than what our competitors can do. Fast Innovation also means 30 % more sales and improvement in our market share, new product development and unveiling these 30 % faster, technology development and establishment of corporate value 3 years ahead of competitors. CORE CAPABILITIES: PRODUCT LEADERSHIP: It refers to the abilities to develop creative, products through specialized new technologies. MARKET LEADERSHIP: It refers to the ability to achieve the LG brand is no. 1 .Goal backed by its formidable market presence worldwide. PEOPLE LEADERSHIP: It refers to the talented people who perform excellently by internalizing and practicing innovations. CORPAORATE CULTURE: Though a company implements perfect management strategies and boasts of outstanding and talented people, it should have an appropriate corporate culture to unleash the power of these capabilities. NO EXCUSES: We foster a corporate culture whereby we suggest an alternative before saying NO and aggressively work to words fulfilling our goal. WE NOT I: We pursue a corporate culture whereby we embrace a strong teamwork. FUN WORKPLACE: We create a workplace where individuals creativity and freedom are respected and working is made fun. premium

Comparison of LG HEALTHZONE Performance Fiscal year of LG starts from 1st Jan and ends on 31st Dec Year 2006(in $ M) Operating revenues EBIT Net Income EPS Capital Expenditure 1803.8 721.3 101.3 0.28 309.7 Year 2005(in $ M) 1740.9 664.3 89.5 0.26 207.8 404.7 Change (in %) 3.6 8.6 13.2 7.7 49 45.3

Cash Provided by 588.1 operating activities Free Cash Flow 443.3

267.6

65.7

LG IN INDIA LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 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 Cores. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its ecofriendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 will see roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. Various studies have shown that the consumer is well informed on the health awareness front. LG was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. Its vision was to become a 'Health Partner' for its consumers worldwide and therefore formulated its corporate philosophy to make peoples' lives better, convenient and healthier. The CTV range offered by LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts the picture to make it more comfortable for the eyes. The entire range of LG airconditioners have 'Health Air System', which not just cools, but keeps pollution out. LG Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to over 50 lakh households in India.

OBJECTIVES OF PROJECT The buzzword sweeping the markets of the new millennium is the simple one i.e. Downtrading. Marketers are pulling up bootstraps, jockstraps and what not, trying to comprehend this new wave that is sweeping many a market today. The consumer in the market place is waking up to the reality of the stupendous Choice on offer on the shelves of her corner market or supermarket alike. For every product category she craves, there are many alternatives to choose from .the marketer has cleverly segmented the market in to the manufacturers definition of premium, popular and discount. This particular study has been structured on the basis of certain objectives, plannings and proceedings. Some of the objectives are mentioned below: To know which one is the largest selling air conditioner in residential sector. To know which one is the most recalled brand in Rohtak city. To know the present status of LG Health zone in Rohtak city. To know the effective medium of advertisement this tends a person to buy a particular brand. To find out pre, point and post consumer behaviour before buying an air conditioner.

SIGNIFICANCE OF THE PROJECT As all we know that significance of any project lies in its ability to bring out certain facts which can be added in decision making regarding the marketing mix of a certain product which again requires factual and unbiased information about existing and potential market, their competitor strategy, about the consumers perception for their product and those of substitutes. The study that I undertook had the purpose to fulfill the above mentioned requirements .The significance of the study can be mentioned as below. To know the pre purchase, point purchase and post purchase behaviour of the consumer. To design effective sales promotion schemes to boost up sales To devise strategies for better customer relation. To devise effective strategies for LG to patch the weaknesses. To enable LG to select the best channel of distribution to meet the needs of customer.

SCOPE OF THE STUDY Its been the hot summer for the air conditioning industries. Fall in the prices of ACs and a significant jump in the demand from the residential segment has sent the total selling in upward direction. So our study will provide enormous scope to capitalize in this emerging market. However some of the scopes are mentioned below: The study is considered highly useful in identifying the factors influencing the brand preference of ACs The study helps us to know the need of the in Rohtak city. By knowing the preferences and needs effective marketing strategies can be developed by LG to have a competitive edge. The identifies the areas, which requires specific attention by the co. for strengthening the market share. This study can be used to identify and locate appropriate target markets and to learn the targets media habit. This study provides a guideline in certain policy decisions of LG.

RESEARCH METHODOLOGY Research methodology in a way is systematic representation of research or any other problem. It is a written game plan for conducting research. It tends to describe the step taken by researcher in studying the researchers in studying the research problem along with a logical background. It tends to describe the methodology for solution of the problem that has been taken for the purpose of study. The chapter focuses in the methodology for the technique used for the collection, classification & tabulation of the data. This plan throws light on the research problem, the objective of study & limitation of the study. Therefore in order to solve a problem it is necessary to design a research methodology for problem as the same way differ from problem to problem. DEFINITION: Research methodology is a way to systematically solve a search problem. It is a procedure, which is followed step by step to solve a particular research problem.

TYPES OF RESEARCH Basically there are 3 types of research

TYPES OF RESEARCH

EXPLORATORY

DESCRIPTIVE

DIAGONOSTIC

EXPLORATORY RESEARCH To gain familiarity with a phenomenon or to achieve an insight in to it. DESCRIPTIVE RESEARCH To poetry accurately the characteristics of a particular individual, situation or a group. DIAGONOSTIC RESEARCH

To determine the frequency with which something occurs or with which it is associated with something else. MARKETING RESEARCH: Marketing Research is defined as a function that links the consumer, public to the markets through information used to identify and define Marketing opportunities and problems; to generate, to define an enable marketing actions to monitor Marketing performance and to improve the understanding of Marketing process. Marketing Research specifies the information needed to address Marketing issues. This research is based on the consumers and is an extension of Marketing Research .This research is conducted with a view to understand prospective customers better and to introduce and modify the products and services of LG Health zone. Some of the activities in carrying this research are To form the basis of planning the sales ,sales promotion and advertisements To enable the marketers to identify the customers need in relation to the product category and to develop potential markets. To help the management to determine persuasive advertisement appeals and to identify the appropriate media choices to reach selected targeted markets. To determine the markets characteristics, potential markets and share of it competitors.

This research consists of four steps. They are as follows Defining the problem and research objectives. Developing the research plan. Implementing the research plan. Interpreting and reporting the findings. The research undertaken in this project id descriptive, it tries to portray accurately the characteristics of a particular situation, individual or a group. Sets of systematic efforts were followed to achieve the objectives of the project.

DATA COLLECTION SOURCES AND METHODS Two types of data were required for our consumer research o Primary Data o Secondary Data Primary Data: This is collected or developed by researchers from the field study or the field work. In this project primary data and information was collected by a way of specifically designed Questinnaires.After that many relevant information was collected through filling up of questionnaires .This questionnaires contain 10 questions. Some of our questions were specific having sufficient choices and others were open- ended ones. Information was collected from existing and prospective customers. The motive was to know the views ,attitudes and others various aspects related to Air Conditioners .Besides this there were demographic questions which revealed their profession and income group to which they belong.

Secondary Data: This data was collected from existing sources or from those sources which were already and organized and collected previously. For this study secondary data was collected from newspapers, magazines, books, journals and from the website of LG .This secondary data also include ideas and views of the officials of LG health zone. SAMPLE PLAN: For the collection of primary data we have taken the residential segment of Rohtak city. Some other segments such as Government organizations, Private companies were ignored. These have a highly educated population maintaining average life styles and attitudes .That is why a random sample from various categories of professionals, businessman , government officials , self employed persons ,housewives and students were taken for this study .The sample size was 200 ,out of which 103 respondents had air conditioners and 97 respondents were future prospects having no Air Conditioners. FIELD PLAN: After selection of the sample the next step was making a field plan. So groups of existing Air Conditioner holders were spotted by moving from door to door .Apartments, individual houses business premises etc. were covered during the data collection process. The respondents were given questionnaires to fill it up. Same questionnaires were used for both residents having Air Conditioners and those who does not had any Air Conditioners .Data regarding the preference of brands which they actually own, reason of choosing that particular brand, the best media of advertisement and all the likes were collected .Some data regarding the technology, marketing strategies and channels were collected from journals, brochures etc.

FINDINGS AND ANALYSIS For my survey I have taken 200 respondents out of these 120 respondents already have Air Conditioners and 80 respondents are future customers for AC companies .This can be graphically shown below. Sample Surveyed

70 130

Respondents having ACs Respondents Not having ACs

INCOME GROUP OF THE RESPONDENTS (AC HOLDERS ONLY) Less than Rs. 10,000 Rs. 10,000 to Rs. 15,000 Rs. 15,000 to Rs. 20,000 Rs. 20,000 and above 30 35 40 25

The income group was divided into four parts, viz. less than Rs. 10,000, Rs. 10,000 to Rs. 15,000, Rs. 15,000 to Rs. 20,000, Rs. 20,000 and above.

Income Group

40

30

Less Than Rs 10000 Rs 10000-Rs 15000 Rs 15000-Rs 20000

25

35

Rs 20000 and above

Marketing Implication: This chart shows the percentage of difference in income of people is very nominal and it has hardly affected the sales .This may be because of this reason that people are now realizing that AC is a need to cool themselves in the hot climate of Rohtak city. So no particular income group should be targeted .Consumers in Rohtak city have the potential to buy irrespective of the income but the sense of need should be created in their mind.

PROFESSION OF THE RESPONDENTS (AC HOLDERS ONLY) Govt. Service Business Self-Employed Others 25 45 40 20

For the research four groups of people were chosen having different sources of livelihood .Some of them were government service holders ,some were businessman ,some self employed like doctors ,lawyers and consultants and the fourth group included all others like students ,employees of private companies ,retired employees and housewives.

Profession of Respondents

20

25

Govt. Service Business Self-employed 45 Others

40

Marketing Implication: As per the above diagram we find most of respondents constituting around 42.9% have ACs are businessmen. It may be due to reason that they want their customer feel comfortable at their premise and retain them for longer time in explaining the features of the product they have. By having Air Conditioners they find a change to look of their showrooms and it can be termed as the other reason for having ACs .This is mainly due to reason that they are few in numbers and there is always a fluctuation in their income. POPULARITY OF DIFFERENT BRANDS OF ACS Brand LG Carrier 1st 40 41 2nd 31 24 3rd 24 20 Total Weight 200 191

Voltas Samsung Hitachi Blue Star Usha Sriram Videocon Godrej Whirlpool

21 13 6 6 1 6 3 1

23 23 5 13 2 2 6 2

13 15 17 8 2 25 .8 0

122 100 45 52 9 47 29 7

For finding this popularity ranking our question was What are the brands of Air Conditioners that are known to you? This was an open ended question. Three blank spaces were given to answer the question. A1: the time of analysis the brand which was filled in the first, second and third blank spaces were given 3, 2 and 1 as weight age respectively. This was due to the reason that different respondents could write the same brand in any of the three blank spaces given to them .So buy giving

Most Popular Brand

LG Carrier 52 45 100 122 191 9 47 29 7 200 Voltas Samsung Hitachi Blue Star Usha Sriram Videocon Godrej Whirlpool

weightage to different blank spaces we can identify the most recalled brand and reach at a valid conclusion. Marketing Implication: Our chart shows that carrier is the most popular brand followed by LG. As LG has got a variety of products in its stales and a single advertisement shows for a particular product makes a positive impact on the other variety of products it has. Here the brand name helps in gaining popularity for other varieties, so the advertisement cost per product become very less.

MOST EFFECTIVE MEDIA OF ADVERTISEMENT

Newspaper/Magazine Television

20 21

Hoardings/Billboards Friends/Relatives Other Sources

0 42 20

In this category of the other sources we have include recommendation of engineers and contractors ,selling done by direct marketing agents , employees of respective companies and those customers who have made the decision of buying ACs after feeling the cool of that particular brand in their offices.

Most Effective Media of communication

20

20

Newpaper/Magazine Television Hoardings/Billboards 21 Friends/Relatives Other Sources

42

This chart shows the most effective media of communicating or advertisement for a company dealing with Air Conditioners is the recommendation of friends and relatives which affected around 42% of sales. Marketing Implication:

Hoardings and billboards has hardly created any effect on sales but again it is important to generate brand name and image .Though it has not made any direct impact on sales but still its presence has its important in recalling a particular brand, Apart from advertisements in televisions, newspapers and magazines more emphasis should be laid on relationship building with the existing customer, as their recommendation makes the highest number of sales.

MOST SELLING BRANDS OF ACS IN ROHTAK CITY BRANDS LG Carrier Voltas Samsung Videocon National Usha Sriram Blue Star Fedders Lioyd Local Made Imported In units 23 20 15 6 2 2 1 6 1 24 1 In % 20 19 14 6 2 2 1 6 1 21 1

For the above findings a direct question was asked to the respondents. The question was which brand AC do you have. The following graph depicts the findings.

Brands of ACs people own

LG Carrier Voltas Samsung Videocon National Usha Sriram Blue Star Fedders Lioyd Local Made Imported

23% 1% 6% 1% 2% 2%6%

1%

23%

20% 15%

Marketing Implication: Local made brands hold the largest share because of its low cost .People finds local brands available at half of the price of that of branded ones. And the human Psychology is such that they are a bit hesitant to invest a big amount at a time. so they feel Worth in making investments ill local brands. LG entered the market in the last few years and established itself. LG has become a major threat for the market leaders like Voltas and carrier because of its aggressive marketing strategies and highlighting on the health front.

PERFORMANCE OF MAJOR BRANDS OF ACS Brands Good Average Bad Total Weight

LG Carrier Voltas Samsung Blue Star Local Made

20 14 15 3 4 12

1 4 1 3 2 12

0 2 0 0 0 0

62 52 45 15 16 60

For finding the performance of Air Conditioners a system of weight age was developed .Each good performance carries 3 points, each average 2 points, each bad 1 point. The total weight are summed up to get the total weight on which the performance is evaluated The brand having the highest points is rated as the best performer and the brand with the least points is the worst performer. This is the because the survey is done on a sample and not the total population. There are the cases where a person is rated a brand as a good performer which is only the sample of that particular brand and there are the cases where a person has rated a bad performer to the brand having more sale.

Performace of ACs

60

62

LG Carrier Voltas Samsung

16 15 45

52

blue Star Local Made

Marketing Implication: Performance wise people have rated LG as the no. 1 brand, local ACs as the no. 2 brand and the Carrier as the no. 3 brand. This may be due to difference in the expectations for branded and local ones that people have .People expect the local brands to perform a limited period .When they did not find any technical defaults in local ones for that limited period then they gets delighted. On the contrary people expect the branded ones to perform to perform for a maximum period. But when they find any minor technical default in branded ones they feel dissatisfied .This is the only reason for which people have rated LG as no. 1 in performance.

AFTER SALE SERVICE OF MAJOR BRANDS OF AC (AC HOLDERS ONLY) Brands LG Carrier Voltas Samsung Blue Star Local Made Good 12 14 13 3 4 9 Average 8 4 2 3 2 9 Bad 1 2 0 0 0 5 Total weight 53 52 43 15 16 50

To know about the service aspect of LG and its competitor one question was How is the after sale service of your existing AC?For these 3 ratings were given such as good, average and bad. The respondents have to tick anyone of the three again weight age were given as 3, 2, and 1 as given to know the performance.

After Sale Service of Popular Brands

50

53

LG Carrier Voltas Samsung

16 15 43

52

Blue Star local made

Marketing Implication: Although the LG brand is new in the market but still its after sale services are very good. Only a few number of people are dissatisfied with its after sale service.

PURCHASE BEHAVIOUR OF THE CONSUMERS To know the prospective customers better we have tried to find out the pre, point and post purchase behaviour of the consumer. For this the question , which was asked to the respondents , was What would you look for before buying an Air Conditioner/Air Conditioners .Respondents had seven attributes which they generally look for and they had to rank them as 1,2,3 .. in order of preference. This question was relevant for both respondents who had ACs and who did not had. From this question we had made an attempt to find out Pre purchase behaviour Point purchase behaviour Post purchase behaviour Lets find out the difference in human attitude dealing each point separately. PRE PURCHASE BEHAVIOUR: For knowing this behaviour the respondents who have Air Conditioners and had decided to buy another one were taken and those respondents who does not have Air Conditioners and probably buy it in future were taken. So first of all we will look for the attributes of AC holders and then that of prospective customers.

Attributes Lower cost Performance Better Service Longer Guarantee New Technology Popularity Installment Schemes

AC Holders 18 53 38 16 18 2 4

Non AC Holders 54 66 32 39 21 4 22

Again the same system of weightage was followed .Here all the attributes were taken into consideration and were given weightage as per the ranking done by the respondents.

Attributes AC Holders Look before Buying

Lower cost Performance 18 16 53 38 Popularity Installment 2 4 18 Better Service Longer Guarantee periods New technology

This graph shows weightage for performance is highest at 53 and for better service is i38. The third attribute which people think about is lower price and new technology having the same weightage of 18.

Attribute Non AC Holders Look before buying

Lower Cost Performance

22 21 4 39 32

Better Service 54 Longer Guarantee Periods 66 New Technology Popularity Installment Schemes

As per the chart shown above performance has got its weightage as 66 followed by low cost at 54 ,longer guarantee are 39 and good services at 32 respectively. Marketing Implication: People who have ACs look for better technology and lower price giving priority to good performance and better services. On the other hand prospects , who may buy an AC generally look for longer guarantee periods and installment schemes anyway giving priority to low cost and performance.

POINT OF PURCHASE BEHAVIOUR OF THE CONSUMERS: To find out the point purchase behaviour we have taken ten attributes which influences a consumer to buy a particular brand, They are converted in percentages. Low cost Performance Good Service Longer guarantee periods New Technology Popularity Installment Schemes Availability Design Recommendation 22.6 39.8 10.8 2.1 4.3 10.8 3.2 2.1 1.1 3.2

Customers Look for at time of Purchase

Low cost Performance Good service 1.1 3.2 2.1 3.2 Longer Guarantee period New Technology Popularity 39.8 Installment Schemes Availability Design Recommendations

10.8 4.3 2.1 10.8

22.6

This chart shows about 40 % of the respondents have looked for performance at the time of purchase of ACs .23% of the respondents have taken the AC after comparing the lower price. 11% of the respondents have looked for Good Service and the other 11% have looked for the popularity aspects. Marketing Implication: So at the time of purchase people mainly look for performance, Lower prices, and Good service and Popularity aspects. That mans 11% of the people who have ACs in Rohtak city have taken it as a status symbol.

BRANDS PROSPECTIVE CONSUMERS WANTS TO BUY LG Voltas Carrier Not Decided 47% 6% 18% 29%

Brands Non AC Holdes Wants to Buy

29 47

LG Voltas Carrier Not Decided

18

This chart shows that LG has got the highest of 47% of the respondents saying that they will buy it 29 % of the respondents saying that they are yet to decide which brand to buy. Similarly 18% and 6% are the future buyers of Carrier and Voltas. Marketing Implication: LG has not only aggressively entered into the market but is also playing in the minds of the people. Moreover, LG has to convince to those people also who have not decided about the brand which they have to buy.

LIMITATIONS OF THE PROJECT

However the real scope of the project is limited .They are limited in the following manner. The study was confined to Rohtak market only. The industry and developed business area as well as urban centers could not be considered for the above study. Thus the study was limited to specific city of Haryana. The study is conducted by taking respondents, which is considered as too limited to arrive at any valid conclusion on several aspects relating to the marketing of air-conditioners. In our study we have only considered the residential segments but some other segments such as government organizations, industries, private and public companies were ignored. This is worth mentioning here that these segments which were not considered constitute around 65% of the total demand. Some of the respondents were not the actual design makers of the family therefore the information gathered from them might have some biases. Some suggestions may seem impractical as they suggested without considering the financial implication of it.

RECOMMENDATIONS

As the air conditioners are going down from the level of status to necessity, the companies are keeping a close eye on the fast changing needs of the customer. the four P, s of marketing is becoming the norm, especially for the White Goods Industry i.e. high quality technological advancement, aggressive marketing policies, better after sale services, financial schemes and affordable prices. Therefore the organization catering to these needs of the customer will definitely have an edge over its competitors. After the survey these are some of the suggestions which can hopefully be implemented by LG Health zone to edge its competitor. RECOMMENDATION IN PRODUCT ITSELF Before buying an asset people think of different aspects of that particular asset. One of the aspects is colour, which should match or match with their liking and surrounding. As air conditioners are also considered as an asset therefore LG should improve its aesthetic appeal by introducing different designs and colours to the front grills and wracks. Some technological in air conditioners is also required so that they consume less electricity and withstand high fluctuation. For this LG has to introduce Air Conditioners with built in stabilizers? Air Conditioners can prevent in forming direction of consumer delight. To cater to the needs of various types of customers LG should introduce smaller or candy models in terms of weight and dimensions, as they are going to be highly demanded in near future. unpleasant odours, which occurs due to improper ventilation system so by overcoming this LG can step ahead in the

RECOMMENDATION IN THE PRICE OF THE PRODUCT Customer always wants discounts on the MRP of a product. Therefore LG should fix a price which will be same in every counter and instructions must be given to every sales and marketing executives to sell it in that fixed price. Previously ACs were status for many but today people recognizes the significance of it .Though the prices of AC s has dropped to 15% but still it is high enough to suit everybodys pocket . Therefore LG should make a tie-up with financial companies and introduced installment schemes for the customers.

RECOMMENDATION IN THE SERVICES OF THE PRODUCT The dealer should ensure the serviceman /technicians pay routine visits or at least they should make telephone calls on regular time intervals for the servicing of Air Conditioners .This creates a good image in the minds of customers about the dealer and the company. A proper system of controlling the dealers should be developed in order to ensure that the dealers should attend to the complaints in time, send the service report to the office and provide routine services. This will help in ensuring that the customers are getting prompt and efficient after sale service. The company should increase the number of servicemans/techinicians so as to provide prompt and efficient services to the customers who take Air Conditioners directly from the company. In case if the unit has to be taken down to the service station for repairs, The dealer can provide a back up unit to the customers so that the customers do not face any difficulty. By doing this the satisfaction level of customers will increase and he or she become more loyal to the company because this gives a customer feeling that the company really taking care of its customers. RECOMMENDATION IN THE PROMOTION OF THE PRODUCT

 Contractors and Engineers are the persons who are involved in the construction of apartments, buildings and shopping complexes .They either give plans or fit the Air Conditioners themselves. so the sales or marketing executives should target these persons and make regular contacts to them. To make them closely related with the company some gifts should be given to them. The company should offer free ACs to major Air ports and railway stations to fit them in the waiting rooms, passengers coming to these places can really feel the cooling effect. Secondly it should also display kiosks near the ACs clearly indicating the contact no of the company so that any person who wants to by or gather any information about LG can contact. To facilitate more sales and to earn more revenues LG should introduce exchange offer .But one thing must be noted that the price which they would offer in exchange with the older must be attractive one, This offer will act as bounty for those who are not satisfied with the performance of their existing ACs. Dealers are the persons who deal with several brands of a particular product. They generally push the consumer to buy a particular brand, which provides maximum benefits to them. Therefore LG should fix different levels of target for the dealers. each target level should contain a good amount of monetary value attached to it and it must increase with the increase in target level.

RECOMMENDATION IN THE ADVERTISEMENT OF THE PRODUCT Consumers are very educated; therefore they should be updated with the technical up gradations which a company undergoes. So for this LG should make a comparative chart taking other brands into account and highlight the unique technologies it has in its credit. LG should display more advertisements in magazines related to business and computer segments. Because people reading these magazines are highly professional and educated. so by providing significant knowledge to them about the product LG can reach closer to their minds. RECOMMENDATION FOR RELATIONSHIP BUILDING Our survey shows the best media which had actually affected the sales of ACs is the recommendation of friends and relatives who had ACs. Therefore more focus should be given to customer care, for the company should focus on a new concept relationship marketing. Corporate says one satisfied customer brings in five new customers and one dissatisfied customer pulls away fifteen probable customers. So by developing better relations with the customers a co. gains a lot in the long run. Company should send cards in occasions like diwali, holi and Christmas. To make the customers feel personal it should also send cards on their anniversaries and birthdays. By telephone calls every month and asking about the performance of the unit given to them.

RECOMMENDATION FOR DEVELOPING POTENTIAL MARKET

 LG should identify potential market in different places of India by assigning summer projects to the mint. Students and broaden the its dealers network in those places. To increase the motivation level of the dealers the co. should conduct annual dealers meeting every year. in these meeting the problems faced by dealers in the market must be discussed and some prizes for selling maximum no. of units be distributed.

CONCLUSION

The insight into the present market of Air Conditioners in the city of Rohtak brought many aspects of consumer behaviour in to the light. The findings doesnt gave any representation of the exact human behaviour as the charts ,figures and analysis ,are described , as perceived by me .Here are some of the key notes of the wholesome findings. Local brands which are either made locally in Rohtak market or assembled by different local vendors have got the highest market share followed by LG &Carrier. LG due to its aggressive marketing and advertising is playing in the minds of the people and hence, the most recalled brand in Rohtak. Though carrier and local brands are making neck to neck fight LG holds the fourth position in Rohtak market. From our findings in the Rohtak market people mostly ask or take the advice of their friends and relatives before buying a particular brand. Therefore they are the best media of advertisement or communication in Rohtak market. Performance and better service are the only attributes which everybody thinks of before buying. Those who have ACs feel longer guarantee period is the third attribute. Those who dont have ACs feel lower cost as the second attribute. At the time of purchase lower cost is the second attribute that struck the mind where as good service and popularity comes after it. After purchase people feel they should have looked, for longer guarantee periods and lower cost after giving priority to performance and better service.

Before I write the last lines of this project, I would again emphasis on the concept of Consumer Behaviour , Because it is the requirement for a planned change in an organization. It aims at knowing our existing customer and future consumers better and to develop marketing strategies from it, hence taking an organization to higher level of performance. In India the response to the study of consumer behaviour has been mixed and only few organizations have used it as the strategy for planned change existing, as they do it in a highly volatile political and economic environment.

BIBLIOGRAPHY BOOKS Research Methodology-By C.R. Kothari Marketing Management-By Philip Kotler Indian Consumer Studies and Cases for Marketing Decisions- By Subash Chandra Mehta Consumer Behavior By ICFAI University Magazine and Newspaper Business Today Indian Management Marketing Research Economic Times The Times of India WEBSITES www.lgindia.com www.amazon.com

QUESTIONNAIRE

I am a student of Amity Business School Manesar and making a survey for LG Health zone. I require your kind operation to accomplish this project. 1. Which of the following provides you the coolest air? (Tick only one) o Fans o Air Conditioners o Air Coolers 2. Mention some of the brands of Air Conditioner known to you. (in order of your preference)

3. Do you own any Air Conditioner/Air Conditioners at home? (Tick only one) o Yes (if yes Mention the brand) o No (if No then ,please move down to 8) 4. From where did you come to know about this particular brand? (Tick only one) o Advertisements in Magazines and Newspapers o Advertisements in Television o Hoardings and Billboards o Friends and Relatives o Other Sources(Please specify )

5. Mention why did you decided to buy this particular brand?

6. How is the performance of Your existing Air Conditioners? (Tick only one) o Good o Average

o Poor 7. How is the after sale service of your existing Air Conditioner? (Tick only one) o Good o Average o Poor 8. Do you have plans to buy an Air Conditioner/Further Air Conditioners in near future? o Yes o No(If No ,move to 10) 9. What is the brand you have decide and why? Brand Name: Reason: 10. if you are going to buy an Air Conditioner then what will be your Priority? (Rank in order of Priority) o To buy an Air Conditioner which is cheaper than other brands? o To buy an Air Conditioner which will perform betters the other brands? o To buy an Air Conditioner which is built with new technology than other brands? o To buy an Air Conditioner which will provide better services then other brands? o To buy an Air Conditioner which will provide longer guarantees periods than other brands? o To buy an Air Conditioner which will provide financial schemes to the consumers? o To buy an Air Conditioner which is popular than other brands. 11. What is your Profession? o Govt. employee o Businessman

o Self Employed o Others

12. To Which income group do you belong? o Less than Rs. 10,000 o Rs. 10,000-Rs. 15,000 o Rs. 15,000-Rs. 20,000 o Rs. 20,000 and above Your name Age Gender Present Address Contact Number

MODEL INFORMATION

Split

Model No

Descriptio n Air Conditioner Split MRP

Price(INR) List

Price(USD) MRP List 578.84 508.69

LS-L1262QC LS_A18S1RAE 1 LS_B24S1RAE 1

25,990.0 22,840.0 0 0

Split AC Split AC

26,990.0 24,600.0 0 0 0 0 29,990.0 28,500.0

601.11 547.88 667.93 634.74

Windo w

Model No LWC1263QCPP LWA12G1NA1 LWA12G1RAE1

Descriptio n Internet Series Window AC Window AC MRP 0 0 0

Price(INR) List 0 0 0 22,500.0 17,000.0 13,990.0 12,990.0 15,490.0 14,990.0

Price(USD) MRP List 501.1 378.6 1 8 9 2 1 5 311.5 289.3 344.9 333.8

LWA12G2RDL1 1

Window AC AC

15,990.0 15,490.0 0 0 0 0 15,990.0 15,490.0

356.1 344.9 2 2 9 9 356.1 344.9

LW_A18G1NA Window

Whisen Model No Description LS-

Price(INR) MRP List MRP

Price(USD) List 780.62

P1260HD Whisen AC 39,000.00 35,050.00 LPP2461PH LPK2465QC Whisen AC 52,000.00 50,050.00 LPK3065QC Whisen AC 55,000.00 54,050.00 LSP1260HM Whisen AC 39,000.00 35,050.00

868.60

Whisen AC 66,000.00 65,050.00

1,469.93 1,448.78

1,158.13 1,114.70

1,224.94 1,203.79

868.60

780.62