Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On Training Undertaken at
Dealer Development
Submitted in partial fulfillment for the Award of degree of
2009-2011
PREFACE
Project Study is an important part of our curriculum in M.B.A course. A project study helps a student in getting aquatinted with the manner in which his knowledge is practically used outside of his institution and it is different from what he has learnt from books. Hence when one switches from the processes of learning to that of implement his knowledge, he perceives an abrupt change. He also interact with customers n dealers and perform Market Survey collects primary data and analyze them. This is why a project study session during M.B.A curriculum becomes an important aspect.
As a part of MASTERs degree I have taken my first implant Project Study at LG ELECTRONICS INDIA Ltd. after 3rd sem. session. During these days of study I was exposed to real working environment. Also I took the advantage of viewing and learning practically about the large technical base. On the basis of information collection and guidance provided I had prepared a comprehensive report. Here it is a systematic presentation of this record.
Acknowledgement
I express my sincere thanks to my project guide, RUPESH SIR, Deptt_ MBA, for guiding me right from the inception till the successful completion of the project.
I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project.
I would also like to thank the supporting staff of MBA Department, for their help and cooperation throughout our project.
..
DECLARATION
I will take pleasure in declaring that the project work that is undertaken by me is an original and authentic work done by me. This project is being submitted in partial fulfillment for award of degree of Post Graduation in Management from Rajasthan Technical University.
The content of this report is based on the information collected by me during my tenure at LG Electronics Ltd. at JAIPUR for 45 days of study.
(ALOK SHARMA)
Executive summary
Indian Consumer durables market used to be dominated by few domestic players like godrej, Voltas, allwyn and kelvinater. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS
AND
WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India
LG & SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth the industry. The rising income levels double-income families and consumer awareness are the main growth drivers of the industries. Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nearly Rs
500 crore in India this year in research and development, brand-building and other marketing initiatives. The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs
140 crore on research and development, besides launching new platforms in information
technology and related areas.
LGs innovative 211 campaign to provide quality after-sales service, will also be expanded
from the existing 45 to 56 cities by next month. The campaign, for which IT infrastructure has been set up, includes the companys r esponse to customer complaint within two hours. The fixing time for complaints varies from one hour to a maximum of 24 hours (TAT).
Contents: -
1. 2.
Introduction to the Industry Introduction to the Organization (a) (b) (c) (d) (e) History of the company Vision Mission LG India Major Key success factors
3.
Research 3.1 Title of the Study 3.2 Duration of the project 3.3 Objective of the Study 3.4 Type of Research 3.5 Sample Size and method of selecting Sample 3.6 Scope of Study 3.7 Limitations of Study
4.
Facts and Findings 4.1 Dealer survey findings 4.2 Customer survey findings
5.
6. 7. 8. 9.
SWOT Analysis Conclusion Recommendation and Suggestions Appendix 9.1 Questionnaire 9.2 Abbreviation
10. Bibliography
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like Kelvina-
tor, Godrej, Allwyn, and Voltas were the major players in the consumer durables
market, accounting for no less than 90% of the market. Then, after the liberalization,
foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came
into the picture. Today, these players control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-12% in 2008-2009. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market. With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air
conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers. Consumer durables sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of In-
dia. MNCs offer superior technology to the consumers whereas the Indian companies
compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.
1. Consumer electronic includes vcd/dvd, home theatre, music player, color television
(CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.
2. White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc.
5. Mobile phones.
Strength
1. In term of purchasing power parity (ppp), India is the 4th largest economy in the
world and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on 2010. 3. India has the youngest population amongst the major countries. There are lot of
people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year and there are 6 million rich household in India. 5. The upper-middle and high-income household in urban areas are expected to grew
to 38.2 million in 2007 as against 14.6 million in 2000 .
Opportunity
1. In India the penetration level of white goods is lower as compared to other developing countries.
2. Unexploited rural market. 3. Rapid urbanization. 4. Increase in income level, i.e.increase in purchasing power of consumers. 5. Easy availability of finance.
Threats
Higher import duties on raw materials. Cheap imports from Singapore, China and from other Asian countries.
CHINA
HOLLAND
JAPAN
TODAY Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the consumers.
LG, SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories. The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas.
LG Electronics is one of the leading companies in the field of electronics with a global
presence in many countries. It is a Korean Company. Before briefing, I have divided the introduction part into three main sub parts.
History of company
Year of Foundation: 1947
Number of Companies: 30
The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies
from
which the abbreviation of LG was derived. The current "Life's good" slogan is a
backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the
United States.
Signature
The signature of LG being the most important element in communicating with LG's Brand Image, any change or distortion of proportion, spacing or resizing at will is absolutely prohibited. The signature shall be used with consistency and uniformity among all kinds of media. Restrictions and rules of the corporate Identification Program shall always be respected.
Horizontal coordination
Vertical coordination
Global Operation
LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world
LG Group
LG Electronics
LG Chem
LG TeleCom
- LG.Philips LCD
- LG Petrochemical
- CS Leader
- LG Innotek
- TeleDREAM
DACOM
- LG Powercom
- DACOM Crossing
Lusem
LG CNS
- V-ENS
LG N-Sys
SERVEONE
Digital appliance a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net,
Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs, b) LCD TVs, c) Micro Display Panel TVs, d) Monitors, e) PDP Modules,
f) OLED Panels, g) USB Memory. Digital media a) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CDRW, e) Notebook PCs, f) Desktop PCs, g) PDAs, h) PDA Phones, i) MP3 Players, j) New Karaoke Systems, k) Car Infotainment.
VISION
GROWTH STRATEGY
Fast innovation, Fast growth
CORE COMPETENCY
Product leadership, Market leadership, People leadership
CORPORATE CULTURE
No excuse, we not I, Fun workplace
SLOGAN
Lifes Good represents LG's determination to provide delightfully smart products that will make your life good.
seal, and the slogan, "Life's Good" set in Charlotte sans type face curved
around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe.
THE SYMBOL
The symbol of LG is the face of future. The letter L and G in a circle symbolizes world, future, youth, humanity & technology.LG philosophy is based on humanity. It also represents LGs efforts to keep close relationship with our customers around the world.
The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color.
Red color represents our friendliness and gives a strong impression of LGs commitment
to deliver the best.
The circle symbolizes The Globe. The stylized image of a smiling face in the symbol
conveys Friendliness and Approachability. The one eye on the symbol represents Goal-oriented, focused & Confident. The slogan of LG is Lifes Good, expresses Brands Value, Promises, Bene-
fits, Personality.
THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a labormanagement relationship rather than an employee-employer relationship. This illustrates that management and workers are not in a vertical relationship, but in a horizontal one. This culture is necessary for LG Electronics as it strives to become one of the world's top companies. Such a relationship is transformed into a value-creation relationship whereby both parties endeavor to address mutual problems and create new values together.
STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies. LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies. "Strategic association between corporations," in which companies with different infrastructures cooperate in the fast-developing 21st century business field, is of key significance in terms of strengthening the existing industry and creating a new one.
LG Electronics will do its best to create new products and services with an open mind,
while developing new technologies and business fields through various associations with some of the world's most successful companies.
1. 3M 2. SUN 3. YAHOO 4. PHILLIPS 5. TOYOTA 6. MICROSOFT 7. HP 8. GOOGLE 9. GE 10. INTEL 11. NORTEL 12. HITACHI 13. PRADA 14. RENESAS 15. TOSHIBA 16. BESTBUY
And the number follows many more..
In Feb. 2008 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries.
LG BRAND IDENTITY:The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with intelligent features, institutive functionality and exceptional performance.
The brand platform:The LG brand is composed of four basic elements Value Promise Benefits
Personality
The Brands core Value that never changes: Trust Innovation People
Passion The benefits that are consistently delivered to the customer includes:
Reliable products Simple design Ease of use Extraordinary Experience
Personality describes the human characteristics that are expressed to the customer through:
Trustworthy Practical Considerate Friendly
Growth
According to LG, the Learning Culture continuously helps the employee to learn
more and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels of employees. There is transparency between the work and mutual understanding between all the employees.
A carrier is highly growing in LG and one who is the employee can develop their
carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality. Growth in LG is very high for those who are in the company and for those who want to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction.
01. Creativity & Autonomy An individual's creativity is the source of creating value. We respect diversity and autonomy so that each can exercise his / her own creativity to the full extent. 02. Equal opportunity Equal opportunity builds trust between people. We ensure everyone an equal opportunity regardless of gender, race, age, religion or nationality. 03. Emphasis on competence We have adopted competence as the most important criterion for making personnel decisions. 04. Long-term perspective Maintaining a long-term perspective is the foundation of our human resource policies. Human resource programs should be designed with a long-term perspective and implemented with dedication and persistence. 05. Performance based rewards Rewards based on performance are essential for human motivation. Performance results will be fairly evaluated and rewarded accordingly.
Performance-Based Principle
LG practices a performance-based salary system, which was initiated in 2000 to install a performance-based culture across all subsidiaries.
The performance-based salary system evaluates employees' rank, title, salary, and other values on the basis of job performance and role, which represents a shift away from the previous seniority-based system. This new system inspires employees to exercise their individual abilities to the greatest extent, which raises standards and promotes a performance-based. LG set the basic framework for this goal, and allowed each of its subsidiaries to formulate their respective detailed action plans.
o Product Leadership
We are focusing on six development areas to become the product leader. New Machine Reliability Conventional Installation Environment Friendly Product
o Quality Innovation
The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.
From top to bottom: No.1 LG is the VISION Jeong-DO Management is LGs unique application to ethics. LG will succeed through
fair management practices and constantly developing our business skill.
A) Honest with our customer b) Providing great values to customer through constant innovation & and development.
c) Equal opportunities. d) Equal Treatment e) Management Principle - Creating value for customer
LG's vision is to become the best in its class by winning customers' acclaim as a true leader in the global market.
2 Fair competition
Pursuit of Free Competition Compliance with Laws and Regulations
3 Fair Transaction :
Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners
LG believes that customers make up the very foundation of our business. That is why LG places the highest priority on serving customers, and encourages its people to create true value for customers through innovation. This principle provides a strong basis for LG's operation that is targeted at winning the hearts of the customers by offering them truly innovative products.
LG believes that the source of its innovation lies in its people. "Respecting human dignity" implies that LG values the ingenuity and autonomy of its people. It signifies that LG strives to maximize capabilities of its people, and helps them realize their potential on the job. This principle is further reinforced through LG's everyday management practice of rewarding its people based on capabilities and performance.
FINANCIAL STATEMENT
Summarized Income Statement 04-05:-
Summarized Income Statement 07-08:(Unit : KRW 100 million) Operating revenue Operating expense Operating income Non-operating income Non-operating expenses Income before income taxes Income tax expense Net income 2008 4,961 1,018 3,943 3,763 320 2007 7,610 544 7,066 1,171 1,769
7,386
6,468
1,354 6,032
712 5,755
GLOBAL REPORT
LG Innotek LG Innotek puts the environment and the peoples welfare first in its efforts to develop technologies and in doing business. Based on this environmentally friendly mindset, we strive to step up our global competitiveness.
LG Micron LG Micron protects our environment and runs the company in an environmentally friendly manner. All the staff in LG Micron work on safety, health, environmental protection and energy saving.
Siltron Siltron is putting all its efforts to minimize the environmental impact of its business activities and to protect its employees and the residents near its facilities from accidents.
LG Chem has been designating environmentallyfriendly organizations, certificating environmentallyfriendly managerial systems, conducting selfanalysis, and executing preventive environmental managerial evaluation as it fortifies its environmentally-friendly managerial systems.
LG Petrochemical LG Petrochemical promises to maximize customers satisfaction and to contribute to society. LG Petrochemical will provide continual improvement in environment, safety and health as well as efficient use of energy through RC activities.
LG MMA LG MMA has implemented self-controlled environmental management system based on the core values of management for environment, safety and health, in addition to the collaboration of labor and management.
PRESS RELEASES
LG Electronics Completes Construction of Russian Plant - The plant completes production triangle connecting Wroclaw, Mlawa and Ruza to target Europe, Russia and the ...
LG.Philips LCD Receives BSC Hall of Fame Award Seoul, Korea (September 6, 2006) - LG.Philips LCD (NYSE: LPL, KRX: 034220), one of the world's leading i...
LG Electronics Gearing Up for Next-Generation DVD Market LG Electronics (LG), a global leader and technology innovator in consumer electronics and mobile communication...
LG Mobile And DMC Continue Dream Team Partnership London, 29 August 2006 LG Mobile (LG), a pioneer in consumer electronics and mobile phones, today an...
LG Unveils The UK's First 5 Mega-Pixel Digital Camera Phone London, 27th July 2006 LG Mobile (LG) announces the first 5 Mega-Pixel digital camera phone to arrive ...
LG Wins Three EISA Awards LG Electronics (LG), a global leader and technology innovator in consumer electronics and mobile communication...
LG INDIA
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near New Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, U.P, India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. ''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings. LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new image. To attract inspirational and young consumers across India, company will roll out a new marketing strategy. The exercise will cost the company Rs 360 crore.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R&D centre outside Korea. We at LGSI focus on niche technology areas such as mobile application development, digital video broadcast and biometrics software and support LG Electronics with our expertise. Motivated by a passion for technology, a strong work culture and loyalty to the organization, we are determined to see LG become one of the top three brands globally. Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 21 per cent in 2009. Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 5.8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India, informed that its sales of GSM mobile phones, color televisions, air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2008. As per Shin's estimate, the sales in 2009 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries.
o India challenges
The challenges faced by LG when entered in Indian market Low brand awareness about LG in India. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).
High import duty Competition from local market players and other MNCs in consumer durable segment. Price sensitiveness of the Indian consumer.
LGEI over comes these challenges to emerge as Innovative marketing strategy: 1. Launch new technologies in consumer electronic and home appliances. 2. LG was the first brand to enter in cricket in big way a way, by sponsoring the 1999
world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more than US$ 8 million on advertising and marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTV has
Golden eye technology Air conditioner has Health air system and microwave ovens have the Health wave system.
R&D potential
LG has the research and development facilities in Bangalore and Pune. Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product.
2. LG also follows the stock rotation policy rather than dumping stock on channel partners.
Product localization:-
1. Product localization is the key strategy used by the LG 2. LG came out with Hindi and regional language menus on its TVs. 3. Introduced the low-priced Cineplus and sampooma for the rural market. 4. LG was the first brand to introduce gaming in TVs in continuations of its association with cricket LG introduces cricket game in CTVs.
MAJOR KEY SUCCESS FACTORS 1. Innovative marketing - LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup and followed it up in 2003 as well.
2. Local and efficient manufacturing to reduce cost - To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi.
3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. 4. Product localization - Product localization is a key strategy used by LG. It came
out with Hindi and regional language menus on its TV.
5. Regional distribution model - This has resulted in quicker rotation of stocks and
better penetration into the B, C and D class markets.
6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG.
70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% KERALA ORISSA ASSAM AND NORTH EAST UTTAR PRADESH (WEST) LG PHILIPS
HARYANA
DELHI
KARNATAKA
PUNJAB
CHHATTISGARH
GUJARAT
MADHYA PRADESH
MAHARASHTRA
JHARKHAND
TAMIL NADU
ANDHRA PRADESH
WEST BENGAL
RAJASTHAN
BIHAR
SAMSUNG VIDEOCON
position of
LG
70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% LG SAMSUNG KENSTAR GODREJ
This analysis is based on the ORG survey conducted by LG which represent the LG position of different consumer durables in various states in India. I select different brand in different category as per the market share and the demand of product in market. This analysis represents the LG market position during the period of March 2009. It shows that LG has captured maximum market share almost in every category. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable.
Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 21 per cent in 2009. Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 5.8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products.
LG Electronics, informed that its sales of GSM mobile phones, color televisions, air
conditioners and other household goods in the Indian market was to the tune of 95
billion rupees ($2.4 billion) in 2008. As per Shin's estimate, the sales in 2009 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. Shin remarked that the company was targeting an increase of exports to $300 million in 2009 from $230 million in 2008.
MANAGEMENT STRATEGY
LG is set to: > Invest 3.2 trillion won in R&D, up by 20% from last year
> Invest 7.3 trillion won in facilities > Attain sales of 92 trillion won, up by 10% from last year's 84 trillion won
Investing 10.5 trillion won, and achieving sales of 92 trillion won in 2008.
In 2008, LG is set to develop core technologies in electronics, chemicals and other mainstream businesses, and intensively foster new growth engines.
2008 Sales and Investment Plan 2008 Plan 2007 PerforChange mance (%) (estimated)
invest-
KRW 10.5 trilKRW 10.4 trillion lion KRW 3.2 trillion KRW 2.7 trillion KRW 7.3 trillion KRW 7.7 trillion KRW 92 trillion KRW 84 trillion USD 46.4 bilUSD 40 billion lion +10% +16% +20%
LG JAIPUR
LG Jaipur is the branch office of LGEIL. It is located in M I Road. In 2004 LGEIL opened second factory which is located in Ranjangaon. This plant manufactures all product including DVD writers and GSM mobiles. Thus it became first company to manufacture DVD writer in India. The ODP plant aims to reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010. LG India will become the export hub for LG Worldwide, catering to the Middle East and African markets. The company aims to touch an export turnover of $3 billion by 2010 from India, which will contribute to 30 per cent of the Indian arm's turnover. Jaipur, India, October 6, 2004 -- LGE announced 3 growth strategies aimed at the 1.1 billion people of India making the Indian market the second largest global production base following China. Under this strategy LGE has projected 2007 revenues in India will exceed US$10 billion, 10 times that of 2004. The three strategies for the Indian market that the global electronics giant disclosed. in-
cluded: penetrates the south-western market of India through the new Jaipur plant near Mumbai, the second largest city in India, in addition to the existing northern plant; installs a new GSM handset production line in the new Jaipur plant and uses it as its second-largest global GSM handset production line after the Qingdao plant in China; and expands the current 750 R&D staff in India to 1,500 by 2007, striving to develop premium products and export 30% of India-manufactured products to Asia, Middle East and Africa markets by 2007.
LG Electronics second new plant in Jaipur, India covers a total area of 211,200 square meters and is currently equipped with a production line to manufacture 600,000 TVs and one million refrigerators a year. The company is set to add production lines of air conditioners, washing machines, monitors, and electronic ovens, by 2005. Also, LG Electronics is poised to install a GSM handset production line in the new Jaipur plant by early next year. The Pune GSM handset line envisages a capacity of manufacturing 2 million handsets annually, and the company expands it to become a global GSM handset production base with a capacity of an annual 10 million units by 2010.
In connection with its three growth strategies for the Indian market, LG Electronics will invest a total of US$150 million in establishing facilities and boosting R&D efforts in India by 2007. Specifically, it will invest US$53 million in the Jaipur second plant, another US$43 million in establishing the GSM line, and US$54 million in securing R&D manpower and boosting other efforts. Through these strategies, LG Electronics aims to penetrate the global market by using China and India as its core production bases, while operating its plants in Changwon and Gumi, Korea, as its main production bases. This way, the company is pushing to penetrate the global home appliance market. The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of the domestic markets. LG plans to upscale its operations to a figure of 2.5 lakh units a year in the near future. The Jaipur plant in addition to its current manufacturing facility at Greater Noida will enable the company to enhance its consumer reach and reiterate its commi tment towards providing superior technology products to the India consumer.
The key strategies being implemented include increasing the number of its regional offices from six to eight. LG has split its southern regional office into two, one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. In addition, it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. The other four regional offices take care of East, Gujarat and Madhya Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan respectively. In the coming year, LG is also repositioning its marketing spends, resulting in a significant increase in its mass media expenditure for better brand visibility. LG had a marketing budget of Rs 320 crore in 2008 with a 60:40 split in favor of below-the-line activities. Next year, the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 10-15%.
The organization structure is one branch manager, one chief accountant, and area sales manager of CE, HA separate for GSM, Marketing manager for CE, HA and separate for GSM. The Jaipur branch has warehouse at wagoli.
B.M
Account
SR.BSI
ASI
M.G I.T.Z.M L.H.D A.M CAC A.M AC AM M.T AMGSM BSI GSM BSI GSM AM DPT
1. Exhibitions are conducted from time to time. 2. Society and college activities are conducted. 3. Hoarding, Posters, banners are used so as to grab the attention of the costumers. 4. Day to day advertisement in leading newspaper. 5. Discount at festival time. 6. For dealer relationship they arrange dealer meting at several time in the year 7. LG divide dealer in gold silver etc. category to know the performance of the dealers. 8. They have their sales persons at various sub dealer store and at mordent trade
store for particularly for the promotion of the LG product.
The logistics (Supply Chain Management) Visit to warehouse of LG Jaipur Logistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.
Logistics Management is that part of the supply chain, which plans, implements and controls the efficient, effective forward and reverse flow and storage of
goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.
LG Jaipur Distribution
LG Jaipur comes under the western Distribution Region. This region has following
Jaipur Kolapur Sholapur Satara Sangli
There are three types of Warehouse1. Mother Warehouse 2. Branch Warehouse 3. Spare part warehouse The mother warehouse is that where the products from the factory are kept and
from that warehouse, the products are sent to the branch warehouse.
In warehouse 7 locations is set up for the products. Loc 1, Loc 2, Loc 3, Loc 4, Loc 5, Loc6, Loc 7
Loc 1 selling Loc 2 - second sale Loc 3 - insurance claim Loc 4 - write off material Loc 5 destroy the item Loc 6 - court case material Loc 7 - for repair
5s of warehouse, which the LG strictly follow: Sweeping Sorting Systematic Arrangement Simplification Self- discipline
In warehouse, the products are pinup with 3-color paper to get the knowledge about the
delivery.
1. Red Card To stop the product going into market, 2. Green card To allow the product for delivery in market, 3. Yellow Card After the product labeled with green, allow this to move in market.
Upcountry delivery - 12 hrs. Within 200 km. Beyond 200 km. 24 hrs. 48 hrs.
The above distribution time is the time of delivery of products from warehouse to the market place, which the logistic department follows to fulfill the demand in the market at right time. In LG, we have the following process, which is followed in logistic through ERP.
Order Processing Invoicing Indenting Report Order Processing booking for dealers /distributors Invoicing Indenting Report after billing process/bill generation requirement (Pdt Unit to branch unit) distributed to all
In warehouse, there are two mode of dispersion of product from one place to another
within:-
In addition, there are 35 fire extinguishers to prevent the accidental hazard within the warehouse due to fire. These fire extinguishers are valid up to year 2011. One has to follow the rule of NO Smoking within the warehouse.
Problem
1- In transit material damage checking. 2- Cost target achievement. 3- Natural events tracking. 4- Fluctuation in demand-supply
Equipments
1- 100% bar code scanner. 2- ERP Invoice Generation Process. 3- Hydraulic Trolleys for material movement.
HUMAN RESOURCES
WHO WE LOOK FOR
1. Person who faithfully adheres to foundational knowledge LG is pushing such intense hiring through its major subsidiaries, such as LG Electronics, LG Chem, LG.Philips LCD, and LG CNS, in North America, Europe, Japan, China, India, Russia, and other countries. LG will embark on a combined total of over 30 tours to hire over 600 globally talented individuals with a master's degree or a doctoral degree in the field of engineering, and science and technology.
2. Person who is highly creative It is important to be widely knowledgeable. However, we still need young creative people who are capable of using and applying their knowledge, to the creation of new values and ideas. Talented individuals should tenaciously explore and seek out new things and surpass existing methods, not at desk but on the frontline, not by knowledge but by action, and not using abstract concepts but with practical innovative passion. 3. Person with solid opinions We need people who have their own clear viewpoints and yet get along well with others. We need people who possess the virtues of cooperation and accommodation. We need those with sound thinking who will sacrifice even themselves, will participate in many activities and thus contribute to the society. We also need people who are genuinely honest, are equitable, and do their best to serve customers. A corporation that aims to be a 'people company' needs all these talented people.
ESSENTIAL EDUCATION SYSTEM BY RANK LG executives and employees should complete essential educational courses by rank in order to develop as core talented individuals with superior working abilities and base knowledge.
Salary System
The existing rank-based salary system has now been abolished. Salary is now categorized as basic salary, performance-based salary, mandatory allowances, and special incentives. Gradually the performance-based salary aspect will be expanded. As such, existing salary items based on seniority have been incorporated into the basic salary, while the performance-based salary share of teams and individuals will be amended to increase gradually, motivating employees to exercise their abilities to the greatest extent.
Research Methodology:
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods.
Research design:
Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.
OBJECTIVES
Scope of project
LIMITATIONS
The limits of study are itself limitations: Firstly, hard to include all users n dealers. Secondly, employees part not considered. More explained in next pages.
CUSTOMER SERVICE
The best and the biggest international brands are here in India but the irony if it all: where is the after-sales-service? So integral to a brand, so critical for its success and so taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. So whats stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer d urable companies, stockiest and dealers, analysts and market researchers to get a feel of whats really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories. Customers support following the purchase of a product or service. In some cases, aftersales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or repl acement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken. LG also had a big problem of after sale service in India. During my project I also came to know that after sale service becomes the big issue in Pune region. Customers as well as dealer were facing the problem of after sale service. Because of this problem many dealer in Jaipur region were not ready to sale LG product. So it becomes the big issue. But LG has taken some solid steps towards improving customers perception and exper ience of after sales service. Because it very important in competitive market to provide the best service. L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India. The company aims to recruit 10,000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting.
L G Electronics has identified eight states with high after sales service call rates to ink the deals with the ITI. Y V Verma, director HR and management system, LG Electronics said, "The Company was trying to find a solution for effective after sales service since last two years. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the GSM mobiles and the personal computer segments." 1. In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing with Uttar Pradesh. 2. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to beef up the number to 10,000 by the year-end. 3. "The company has offered a scholarship to the selected students for the last six months of their training programmes," 4. The company will invest Rs 8 crore (Rs 80 million) in employee development programme this year with an aim to attain an 8 per cent attrition rate. 5. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand. 6. At the top, the Service Division in Korea reports to the Global CMO. (As mentioned in Dermots public interview in ET on Wednesday). This shows commitment that Service must be made into a marketing differentiator, and leveraged thus. 7. LG has the widest service network across the country; some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. While the sale size may also be a nice multiple from nearest, it shows the company is ready to put our money where our mouth is. 8. The company has introduced a 211 service - once you register your complaint, we will call you back in 2 hours (hence 2), set up an appointment for the next convenient day for you (hence the first 1), and show up in the promised 1-hour slot (hence the second 1). If the next convenient day for you is the next day, thats great too. Its a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities, and thus not leveraging any mileage from it.
9. The company is promoting 211 through ATL, probably the first time after-sales service is being communicated in this fashion by any product company. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or inshop posters, both of which revolve around prompt response. 10. The first LG-owned service centre opened in Gurgaon. (Service in India generally works through authorized service centers, in LGs case they work exclusively for LG.) A company-owned service centre tries that much harder, knows things better, and can even contribute as a revenue center.
FINANCIAL REPORT
Financial Performance:
Turnover for 2002 Turnover for 2003 Turnover for 2003 Turnover for 2004 Turnover for 2005 Turnover for 2006 Turnover for 2007 Turnover for 2008
Rs. 125 Crores Rs. 485 Crores Rs. 1056 Crores Rs. 1903 Crores Rs. 2216 Crores Crossed Rs.3315 Crores Crossed Rs.4500 Crores Crossed Rs.6500 Crores
DURATION OF THE PROJECT:Time taken for project report making was of 45 days, in which there was a deep study of primary data collected by me through interview n throw Study with two concerns:(A). Customers in jaipur area, residential house, in which I interviewed 500 persons. (b). Dealers Associated with LG authorized dealer ship. This entire process too all together fifteen days. In customer interviewer were related to nearby areas of the Market Place in three locality. Whereas, in Dealers Interview of the market with authorized dealers only.
Objective of The Study:Primary objective: The main objective of filed survey during the project was to find out the market share of the LG and also calculate the display share. Find out the positional dealer who can sale the LG product in large volume. The main objective of research was to identify potential dealer and development these dealer. So LG can make them their direct dealer. This will ease the dependence on the some big dealer like Mahaveer electronics.
Find out the problem faced by the dealer in sales and the distribution. Secondary objective: The Objective was to find out that how far the exhibitions are helpful in branding, While purchasing the consumer durables which parameter is most important for the consumer? Do the consumers prefer the financial facility for buying consumer durable? How frequently consumers change the consumer durable? To enhances the knowledge of consumer durable market. To increases the knowledge consumer durable product of LG. To enhances the knowledge about the marketing and branding activity.
The objective was to find out the market share of LG products, advantages, and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale.
Primary sources
Secondary Sources
Primary Sources: Primary sources include the data, which are first handed. They are collected directly from the respondents using the data collection methods like the questionnaires, survey interviews, direct observation, or tabulation. For primary data collection, we have to plan the following four important aspects.
o Sampling
o Research Instrument Secondary Sources: Secondary sources are the sources in which data has already been collected by some other person or organization for their use and is used by the researcher for his purpose. These include websites, trade associations, journals, books etc. The Companys profile, journals and various literature studies are important sources of se condary data.
My research is based on the mixture of both primary and secondary sources. I have collected the information with the help of Questionnaire (primary data), journals and websites (secondary data). Questionnaires have helped me to know about the needs of the individual investors. Journals and websites have provided me the information about the MF industry, its past and future performance. After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. This survey conducted by the means of a Questionnaire. Both open and closed ended question were put forward and a 3 point simple graphic rating scale was used at the end. (Questionnaire attached in the annexure). The results were tabulated using simple percentage methods.
Observation Method
The observation method is the most commonly used method especially in studies relating to behavior sciences. Observation becomes a scientific tool and the method of data collection for the research when it serves a formulated research purpose, is systematically planned and recorded and is subject to checks and controls on validity and reliability. Under the observation method, the information sought by way of investigators own direct observ ation without asking from the respondent. The main advantage of this method is that subjective bias is eliminated and it relates to the current happenings and also the respondent is independent to respond to a situation and can record the natural behaviour of the group.
Sampling Methodology
Sampling plays a very critical role in any research. A sample is the true indicator of Any research methodology. The sampling can be done in the two ways:
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The one is made for the Customer.
07
No. of question related to LG product: No. of people met during the research: No. of respondents during the research:
03 200 50
POPULATION (N): The Dealers working in LG & Customers of LG: Existing & potential customer, Authorized Dealers of LG, & other brand Dealers. = 800
Sample unit Professionals, Business man, Employees, House wife, Working women, Students
To examine whether the Company is consulted while formulating their goals, duties, responsibilities and standards of performance for the assessment period To find out the level of satisfaction of the customers concerning the mutual goal setting process and to take their recommendations for the same. To examine the level of satisfaction of the dealers regarding the appraisal given to them by their Suppliers. To find out the effectiveness of the feedback sessions provided to them on their performance evaluation. To study whether the appraisal process has been able to provide them with a good career path. To study the level of satisfaction with the succession planning process To find out the role of linking compensation and rewards with the appraisal process.
To study the level of motivation among the employees subsequent to the perfor-
LIMITATIONS
Every study has certain limitations. In my study, also there were certain limitations, which I could not able to solve. 1. The research was conducted in a very small area. 2. My research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer. This was biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete my research,
for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was difficult to
make them hold for time.
5. I had only found the upper-middle class family to fill up the questionnaire, but generally, an average middle class family was required for the study.
6. The sample size is also very small which represent my research on consumer behavior.
My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage.
1. By calculating the display share we found that in most of store LG has 50% display
share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of the
store and how much product can they sale.
4. We also came to know while visiting the shops that there was big problem of after
sale service.
5. Many dealers were facing the problem of after sale service because there is no follow up calls from LG.
6. Demo calls also not done properly. 7. The top competitor of LG product in Jaipur is SAMSUNG. 8. In Jaipur area the performance of LG is in better position but the competitor also hold
closer margin.
9. There is high growth of sale in market due to booming in new technology and better
service. Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer.
Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand.
4. Consumer also wants to compare to the different brand which are available in the
exhibition.
5. So exhibitions are more useful to increases brand awareness. 6. People are less interested to purchase product from the exhibition. 7. 30% of customer gives importance to price. So it shows that Indian consumers are
very price sensitive. They give more importance to price over the brand.
8. 26% give importance to brand. So price and Brand matter a lots for the costumers.
And they are also want best brand in best price.
9. 19% to product feature Service 16% and durability 9% Service is also a big factor for
the customer they are less interested in the durability. 10. 23% customers do not change their consumer durable within 10 year. 11. It represent that Indian consumer do not prefer to change their consumer durable .
Data analysis and interpretation o Questionnaires o Pie chart and Bar chart Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.
Pie chart:
This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.
Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.
Analysis:
Q1. Have you purchased any consumer durable during Exhibitions? Yes No
Inferences
65 % of Customer has not purchased any consumer durable from exhibitions. Only 35 % people have purchased. It shows that consumers are coming in the exhibition for knowledge of product and also they want to know that weather there is actual price difference in exhibition and shop or not. Consumer also wants to compare to the different brand which are available in the exhibition. So exhibitions are more useful to increases brand awareness. People are less interested to purchase product from the exhibition.
Q.2 While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability
Inference
30% of customer gives importance to price. So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand. 26% give importance to brand. So price and Brand matter a lots for the costumers. And they are also want best brand in best price. 19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability.
Q3. From where you prefer buying consumer durables? Exhibitions Co.shoppee Showroom
Inference:
1. A majority of customers prefer to buy from showrooms. Very less proposition of customers buys from Exhibitions. 2. 47% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts.
3. People are less interested to buy from the exhibition they only visit the exhibition for
price quotation of the product and the comparison of the product.
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons? Attractive Price Service Demonstrations Offers
Inference
Customers buy from showrooms because of the service and convenience. These are two main factors. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms. Price also a factor that attract the customer in these showrooms.
Q.5.Which consumer durable you have and of which brand? CTV LCD PLASMA REF WM MW AC
Inference In CTV section maximum customers have Onida, in LCD Sony is the leader, in plasma BPL is the leader, In Ref LG is the leader, and MW LG is the leader. In WM there are companies and in AC also.
Q.6. How frequently you change your consumer durables? 1-3 years 3-5 years 5-10 years More than 10 years
INFERENCE
1. Customers prefer to change consumer durables within 5-10 years. In India people do not change consumer durable frequently. 2. 23% customers do not change their consumer durable within 10 year. 3. It represent that Indian consumer do not prefer to change their consumer durable frequently.
Q.7.Do you prefer any financing scheme to purchase consumer durables? Yes No
SWOT ANALYSIS
A SWOT analysis is an integral part of a marketing plan can- can also be part of a business plan.
o Strength
In term of purchasing power parity (ppp), India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. Indian consumer durable market is expected to reach $400 billion by on 2010. India has the youngest population amongst the major countries. There are lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year and there are 6 million rich household in India. The upper-middle and high-income household in urban areas are expected to grew to 38.2 million in 2007 as against 14.6 million in 2000. Knowledge reliance communication is ranked fastest growing company. It has loyalty of customers and vendors it is local. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year and there are 6 million rich household in India.
o Weakness
Company has a large physical network so sometimes it is difficult to manage all this in an idle manner.
o Opportunity
The financial strength of this group is backbone of Organization. The company provides in depth training to their employees and front line sales Dealers. As LG target market needs more services the competitors are less likely than ever to provide it their business model does not include service just selling. The good Brand image of organization can help and recommend organization to proceed further with new electronic items. In India the penetration level of white goods is lower as compared to other developing countries. Unexploited rural market.
CONCLUSION
Delegation of authority has been done with much thought and precision making the
employees feel empowered.
Mutual goal setting has proved to be very effective tools in making the employees club their personal goals with the goals of the organization leading to the tendency of the employees exhibit a feeling of ownership in the vision and mission of LG. Today, customer or user is very aware of its right and duties, profits and losses and understand what is wrong or right. He takes decision after collecting information from all sources and after analyzing them according to his requirement and benefits. LG got this point very clear in its mind. In the past few years LG has touched the heights of success by introducing a wide range of Gadgets and other medium of electronics which are extremely advantageous at every step of our lives, whether it be home or office it is in our service 24hours. The process of the system of Dealer handing was very well driven. Customers are very satisfied by LGs Service. The internal environment of the organization is playing much important role than the external one. Customers buy from showrooms because of the service and convenience. These are two main factors. 65 % of Customer has not purchased any consumer durable from exhibitions. Only 35 % people have purchased.
APPENDIX
QUESTIONAIRE
Consumer survey Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions? a) Yes b) No
Q.2 While purchasing consumer durable which parameter influences you? a) Price b) Product feature c) Brand d) Service e) Durability
Q3. From where you prefer buying consumer durables a) Exhibitions b) Co.shoppee c) Showroom
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons a) Attractive Price b) Service c) Demonstrations d) Offers e) Convenience
Q.5.Which consumer durable you have and of which brand? a) CTV b) LCD c) PLASMA D) REF E) WM F) MW G) AC -------------------------------------------------------------------------------------------------------------------------------
Q.6. How frequently you change your consumer durables? a) 1-3 years b) 3-5 years c) 5-10 years d) More than 10 years
Q.7.Do you prefer any financing scheme to purchase consumer durables? a) Yes b) No
ABBREVIATIONS
A.S.I Area Service In charge
A.S.M
B.S.I
CAC
C.S NET
D.S.C.
L.H.D
R.E.F
Refrigerator
P.P.P
CTVS
Color televisions
MNCs
Multinational companies
(LG)
(LG)
(FIPB)
(LGEIL)
DMS
WM
washing machine
AC
air conditioners
FMFO
BIBLIOGRAPHY
www.lgindia.com www.google.com www.wikipedia.com Business world Business today LG magazine Economics times News paper Times of India