Executive summary

Indian Consumer durables market used to be dominated by few domestic players like Godrej Voltas Allwyn and Kelvinator. ut post liberali!ation many forei"n companies #ave entered into Indian market det#ronin" t#e Indian players and dominatin" Indian market t#e major cate"ories bein" C$V% &E'&IG&A$(&% AI& C()*$I()E&+ and ,A+-I)G .AC-I)E+. India bein" t#e second lar"est "rowin" economy wit# #u"e consumer class #as resulted in consumer durables as t#e fastest "rowin" industries in India. /G% +A.+0)G t#e two Korean companies #ave been maintainin" t#e lead in t#e market wit# /G bein" leader in almost all t#e cate"ories. $#e rural market is "rowin" faster t#an t#e urban market% alt#ou"# t#e penetration level is muc# lower .$#e C$V se"ment is expected to t#e lar"est contributin" se"ment to t#e overall "rowt# of t#e industry. $#e risin" income levels double1income families and consumer awareness are t#e main "rowt# drivers of t#e industries. Consumer durables major /G Electronics India 2vt /td 3/GEI/4 will invest nearly &s 566 crore in India t#is year in researc# and development% brand1buildin" and ot#er marketin" initiatives. $#e company% #avin" a turnover of &s 7%566 crore and market s#are of 89 percent% is investin" &s :96 crore on brand1buildin" and ot#er marketin" initiatives and around &s ;<6 crore on researc# and development% besides launc#in" new platforms in information tec#nolo"y and related areas% /G=s innovative >8;;

campai"n= to provide ?uality after1sales service% will also be expanded from t#e existin" 88 to <6 cities by next mont#% t#e campai"n% for w#ic# I$ infrastructure #as been set up% includes t#e company=s response to customer complaint wit#in two #ours. $#e fixin" time for complaints varies from one #our to a maximum of 8< #ours.

+cope of project
$#is project "ives us "reat exposure to t#e consumer durable market because it includes product knowled"e and field survey job in w#ic# we visited t#e /G stores in *el#i. Incidentally *iwali time was nearin" durin" our survey period w#ic# exposed us to anot#er aspect of product promotion. /G always insist t#e 56@ display s#are of /G product because /G believes t#at JO DIKHTA HAI WO BIKTA HAI.

While visiting the shops we

;. Calculated t#e display s#are of t#e /G product in every s#op. 8. Collected t#e data of actual mont#ly sale of t#e /G products in few s#ops. :. C#ecked t#e availability of /G catalo"ue and t#e 2(2s in t#e store. <. 'ound out t#e problems t#at t#e dealer are facin" w#ile sellin" t#e /G products.

5. 'ound out t#e customer response for /G products by askin" t#e owner of t#e s#op. 9. 'ound out t#e distributor name from w#o t#ey were purc#asin" t#eir products and also w#et#er t#ey #ave direct dealers#ip and w#ic# brand. A. C#ecked w#et#er demo calls are attended or not

Key findin"sB1
;. y calculatin" t#e display s#are we found t#at in most of store /G #as 56@ display s#are almost all cate"ories. 8. y t#e actual mont#ly sale of particular store we came to know t#e capacity of t#e store and #ow muc# product can t#ey sell. :. It #elps us to know t#at weat#er dealer is capable of bein" a direct dealer of /G or not and it also #elps to find out t#e new dealers w#o are capable of bein" an /G dealer. <. ,e also came to know w#ile visitin" t#e s#ops t#at t#ere was bi" problem of after sales service. 5. .any dealers were facin" t#e problem of after sale service because t#ere is no follow up calls from /G.

9. *emo calls also not done properly.

I)$&(*0C$I()
efore t#e liberali!ation of t#e Indian economy% only a few companies like Kelvinator% Godrej% Alwyn% and Voltas were t#e major players in t#e consumer durables market% accountin" for no less t#an 76@ of t#e market. $#en% after t#e liberali!ation% forei"n players like /G% +ony% +amsun"% ,#irlpool% *aewoo% and Aiwa came into t#e picture. $oday% t#ese players control t#e major s#are of t#e consumer durables market. Consumer durables market is expected to "row at ;61;5@ in 866A1866C. It is "rowin" very fast because of rise in livin" standards% easy access to consumer finance% and wide ran"e of c#oice% as many forei"n players are enterin" in t#e market ,it# t#e increase in income levels% easy availability of finance% increase in consumer awareness% and introduction of new models% t#e demand for consumer durables #as increased

si"nificantly. 2roducts like was#in" mac#ines% air conditioners% microwave ovens% color televisions 3C$Vs4 are no lon"er considered luxury items. -owever% t#ere are still very few players in cate"ories like vacuum cleaners% and dis#was#ers Consumer durables sector is c#aracteri!ed by t#e emer"ence of .)Cs% exc#an"e offers% discounts% and intense competition. $#e market s#are of .)Cs in consumer durables sector is 95@. .)CDs major tar"et is t#e "rowin" middle class of India. .)Cs offer superior tec#nolo"y to t#e Consumers w#ereas t#e Indian companies compete on t#e basis of firm "rasp of t#e local market% t#eir well1acknowled"ed brands% and #old over wide distribution network. -owever% t#e penetration level of t#e consumer durables is still low in India.

Classification of consume !u a"les secto ;. Consumer electronic include vcdEdvd% #ome t#eatre% music player% color television 3C$Vs4% cameras% camcorders% portable audio% -i1'i% etc 8. ,#ite "oods include dis#was#ers% air conditioners% #eaters% was#in" mac#ines% refri"erators% vacuum cleaners% kitc#en appliances% non1kitc#en appliances% microwaves% built1 in appliances% $umble dryer% personal care product etc.

:. .oulded lu""a"e include plastics <. Clocks and watc#es 5. .obile p#ones #cope ;. In term of purc#asin" power parity 32224% India is t#e <t# lar"est economy in t#e world and overtake Fapan in t#e near future become t#e :rd lar"est. 8. Indian consumer durable market is expected to reac# G<66 billion by on 86;6 :. India #as t#e youn"est population amon"st t#e major countries. $#ere are lot of people in t#e different income cate"ories nearly t#e two t#ird population is below t#e a"e of :5 and nearly 56@ is below 85. <. $#ere are 59 million people in middle class% w#o are earnin" usG<%<6610+G8;%C66 a year. And t#ere are 9 million ric# #ouse#old in India. 5. $#e upper1middle and #i"#1income #ouse#old in urban areas are expected to "rew to :C.8 million in 866A as a"ainst ;<.9 million in 8666.

Oppo tunit$ ;. In India t#e penetration level of w#ite "oods is lower as compared to ot#er developin" countries. 8. 0nexploited rural market. :. &apid urbani!ation. <. Increase in income level% i.e. increase in purc#asin" power of consumers. 5. Easy availability of finance. Th eats ;. -i"#er import duties on row materials. 8. C#eap imports from +in"apore% C#ina and from ot#er Asian countries.

rands in consumer electronics sector

%&Cs ()*IO&A' /G 0++A.+0)G C&(,) -H0)*AI +A/(&A $C/ +E&IE+ -AIE& ,E+$() E/$AK 2-I/I2+ (+KA& 2A)A+()IC +-A&2 -I$AC-I +A)+0I AKAI 4 AI,A ,-I&/2((/ E/EC$&(/0I

&ATIO&A' 4 4 4 4 C-I)A 4 G(*&EF K(&EA ()I*A VI*E(C() 2/ $1 V(/$A+ I' 4 4 4 4 4 FA2A) -(//A)*

TODA+ Consumer durables sector is c#aracteri!ed by t#e emer"ence of .)Cs% exc#an"e offers% discounts% and

intense competition. $#e market s#are of .)Cs in consumer durables sector is 95@. .)CDs major tar"et is t#e "rowin" middle class of India. .)Cs offer superior tec#nolo"y to t#e /G% +A.+0)G t#e two Korean companies #as been maintainin" t#e lead in t#e industries wit# /G bein" leader in almost all t#e cate"ories. $#e company% #avin" a turnover of &s 7%566 crore and market s#are of 89 per cent% is investin" &s :96 crore on brand1buildin" and ot#er marketin" initiatives and around &s ;<6 crore on researc# and development% besides launc#in" new platforms in information tec#nolo"y and related areas. '* )lect onics is one of t#e leadin" companies in t#e field of electronics wit# a "lobal presence in many countries. efore briefin"% we #ave divided t#e introduction part into t#ree main sub parts. ;. /G Global 8. /G India :. /G

Histo $ of compan$,
$#e company was ori"inally establis#ed in ;75C as Gold +tar% producin" radios% $Vs% refri"erators% was#in" mac#ines% and air conditioners.

;75C1;7971Gold+tar $#e Electronics Industry *ream

;7A61A7 Gold+tar symbol of $#e $ec#nol"oy

;7C61CC B1 I)$E&)A$I()A/IJA$I()

;7C717< I)(VA$I()

;77517C G/( A/ /EA*E&+ /G E/EC$&()IC+

;7771866:1*IGI$A/ .A)AGE.E)$

866<18669 G&EA$ 2E(2/E G&EA$ *E+IG)

866A1$-E 2E(2/E C(.2A)H

$#e /G Group was a mer"er of two Korean companies% /ucky and Gold +tar% from w#ic# t#e abbreviation of LG was derived. $#e current K/ifeDs "oodK slo"an is a backronym. efore t#e corporate )ame c#an"e to LG% #ouse#old products were sold under t#e rand name of Lucky% w#ile electronic products were sold under t#e brand name of Gold Star. $#e Gold +tar brand is still perceived as a discount brand. In ;775% Gold +tar was renamed /G Electronics% and ac?uired Jenit# Electronics of t#e 0nited +tates.

*lo"al Ope ation,

/G Electronics is playin" an active role in t#e world market wit# its assertive "lobal business policy. As a result% /G Electronics controls ;;6 local subsidiaries in t#e world wit# around C8%666 executive and employees. /G Group ;. /G.2#ilips /C* 8. /G C#emical :. /G $elecom <. /G 2owercom 5. /G $wins
9. /G *acom usiness areas and main products .obile communications

3a4 C*.A -andsets% 3b4G+. -andsets% 3c4 :G -andsets% 3d4 Cellular 2#ones *i"ital appliance a4 Air Conditioners% b4 &efri"erators% c4 .icrowave (vens% d4 ,as#in" .ac#ines% e4 Vacuum Cleaners% f4 -ome )et% "4 Compressors for Air Conditioners and &efri"erators *i"ital display a4 2lasma $Vs% b4 /C* $Vs% c4 .icro *isplay 2anel $Vs% d4 .onitors% e4 2*2 .odules% f4 (/E* 2anels% "4 0+ .emory% #4 'lat 2anel Computer .onitors *i"ital media a4 -ome $#eater +ystems% b4 *V* &ecorders% c4 +uper .ulti *V* &ewriters% d4 C*L&,% e4 )otebook 2Cs% f4 *esktop 2Cs% "4 2*As% #4 2*A 2#ones% i4 .2: 2layers% j4 )ew Karaoke +ystems% k4 Car Infotainment

-I#IO&
*lo"al Top . "$ /010

*lo"al Top . )lect onic2Telecommunication compan$

*(OWTH #T(AT)*+
3ast innovation4 3ast g owth

CO() CO%5)T)&C+
5 o!uct lea!e ship4 %a 6et lea!e ship4 5eople lea!e ship

CO(5O(AT) C7'T7()
&o e8cuse4 we not I4 3un wo 6place

#'O*A&

9'ife:s *oo!9 ep esents '*:s !ete mination to p ovi!e !elightfull$ sma t p o!ucts that will ma6e $ou life goo!;

$#e /G Electronics /ifeDs Good si"nature consists of t#e /G lo"o% seal% and t#e slo"an% K/ifeDs GoodK set in C#arlotte sans typeface curved around t#e /G symbol. $#e curvin" of t#e slo"an reinforces /GDs personality and uni?ueness. $#e consistent usa"e of t#is si"nature clearly establis#es t#e uni?ue identity of t#e company and unifies every division and product from /G Electronics across t#e "lobe.

TH) #+%BO'
$#e symbol of /G is t#e face of future. $#e letter M/N and MGN in a circle symboli!es world% future% yout#% #umanity O tec#nolo"y. /G p#ilosop#y is based on #umanity. It also represents /G=s efforts to keep close relations#ip wit# our customers around t#e world. $#e symbol consists of two elements. ;. $#e lo"o in /G "ray 8. $#e styli!ed ima"e of #uman face in t#e uni?ue /G red color. (e! colo represents our friendliness and "ives a stron" impression of /G=s commitment to deliver t#e best. $#e circle symboli!es The *lo"e. $#e styli!ed ima"e of a smilin" face in t#e symbol conveys 3 ien!liness an! App oacha"ilit$N. $#e one eye on t#e symbol represents *oal<o iente!4 3ocuse! = Confi!entN. $#e slo"an of /G is 'ife>s *oo!N. It expressesM B an!>s -alue 4 5 omises4 Benefits % 5e sonalit$ ;

TH) 5A(T&)(#HI5
/G Electronics c#ooses to promote #armony and build constructively on a labor1mana"ement relations#ip rat#er t#an an employee1employer relations#ip. $#is illustrates t#at mana"ement and workers are not in a vertical relations#ip% but in a #ori!ontal one. $#is culture is necessary for /G Electronics as it strives to become one of t#e worldDs top companies. +uc# a relations#ip is transformed into a value1creation relations#ip w#ereby bot# parties endeavor to address mutual problems and create new values to"et#er.

#T(AT)*IC A''IA&C)
'* )lect onics is ma6ing technical a!vances an! i!entif$ing "usiness oppo tunities th ough va ious associative elationships with some of the wo l!:s lea!ing companies; /G Electronics is strivin" to become number one in t#e world by min"lin" in various business and tec#nolo"ical fields and makin" strate"ic alliances wit# world famous companies. K+trate"ic association between corporations%K in w#ic#

companies wit# different infrastructures cooperate in t#e fast1developin" 8;st century business field% is of key si"nificance in terms of stren"t#enin" t#e existin" industry and creatin" a new one.

'* )lect onics will do its best to create new products and services wit# an open mind% w#ile developin" new tec#nolo"ies and business fields t#rou"# various associations wit# some of t#e worldDs most successful companies. ;. :. 8. +0) :. HA-(( <. 2-I//I2+ 5. $(H($A 9. .IC&(+('$ A. -2 C. G((G/E 7. GE ;6.I)$E/ ;;.)(&$E/ ;8.-I$AC-I ;:.2&A*A ;<.&E)E+A+ ;5.$(+-I A ;9. E+$ 0H

An! the num"e follows man$ mo e??PPPPPPPP.. In 'eb. 866A /G Electronics and Ha#oo formed a strate"ic alliance. Ha#oo mobile services will be available from /G mobile. $#is service is tar"etin" ;6 million /G mobile p#ones in over A6 countries. In .ar. 866A /G Electronics and Goo"le formed a strate"ic alliance. ot# companies will work to"et#er to release% market% and offer /G mobile p#ones wit# Goo"le services 3searc# en"ine% map% email% and blo"s4.

'* B(A&D ID)&TIT+,<

$#e brand of /G is deli"#tfully smart. /G strives to en#ance t#e customer=s life and lifestyle wit# intelli"ent features% institutive functionality and exceptional performance.

The " an! platfo m,<

$#e /G brand is composed of four basic elements Q ;. Value 8. 2romise :. enefits <. 2ersonality

The B an!s co e -alue that neve changes;

a. $rust% b. Innovation% c. 2eople d. 2assion $#e benefits t#at are consistently delivered to t#e customer includes a4 &eliable products b4+imple desi"n c4 Ease of use d4Extraordinary Experience

2ersonality describes t#e #uman c#aracteristic t#at are expressed to t#e customer t#rou"# $rustwort#y% Considerate 2ractical% 'riendly

The Inte nal Cultu e of '*,

/G practices four cultures ;. /earnin" Culture 8. oundary less Environment :. A Carrier <. Growt# Accordin" to /G% t#e /earnin" Culture continuously #elps t#e employee to learn more and more to develop t#e #abit of continuous learnin". Boun!a $ less )nvi onment means t#at t#ere is no difference between t#e levels of employees. $#ere is transparency between t#e work and mutual understandin" between all t#e employees. A carrier is #i"#ly "rowin" in /G and one w#o is t#e employee can develop t#eir carrier lar"ely. A new comer will feel fully comfortable in t#e company and for a new comer t#e company is very #elpful in t#e overall "rowt# of personality. Growt# in /G is very #i"# for t#ose w#o are in t#e company and for t#ose w#o want to join in /G. $#e company is "rowin" wit# fast innovation and t#e /0E (cean strate"y is one of t#e examples of "rowt#.

%ission
$#e mission of /G is to provide t#e customers wit# utmost satisfaction t#rou"# leaders#ip. $#e fundamental policy of development is to secure product leaders#ip t#at t#e Customers may #ave t#e utmost satisfaction.

5 o!uct 'ea!e ship

,e are focusin" on six development areas to become t#e product leader. ;. )ew .ac#ine 8. &eliability :. Conventional Installation <. Environment 'riendly 2roduct 5. /ow )oise O Vibration 9. Ener"y +avin"

@ualit$ Innovation

$#e policy of ?uality assurance is to provide customers wit# utmost satisfaction by supplyin" !ero defects.

/G proceeds in a #ierarc#al manner. It is named as '* WA+; 'rom top to bottomB )o.; /G Q is t#e VI+I() MJeong-DO Management is /G=s uni?ue application to et#ics. /G will succeed t#rou"# fair mana"ement practices and constantly developin" our business skill.

A4 -onest wit# our customer b4 2rovidin" "reat values to customer t#rou"# constant innovation O and development. c4 E?ual opportunities d4 E?ual $reatment .ana"ement 2rinciple 1 Creatin" value for customer

Co!e of con!uct of '*

;. &esponsibility and obli"ations to customers B

R R R

&espect for Customers Creatin" Value 2rovidin" Value

8. 'air competition R 2ursuit of 'ree Competition R Compliance wit# /aws and &e"ulations :. 'air $ransaction B R E?ual (pportunity R 'air $ransaction 2rocedure R +upport and Aid for usiness 2artners <. R R R R R asic Et#ics for Employees asic Et#ics Completion of *uty +elf *evelopment 'airness in 2erformance Avoidance of conflict wit# company interest

5. Corporate &esponsibilities to employees R &espect for #uman di"nity R 'air $reatment R 2romotin" Creativity

9. &esponsibilities to society and country R R R R &ational usiness *evelopment 2rotection of stock #older interest Contribution to social development Environmental Conservation

/G I)*IA
/G Electronics India 2vt. /td.% a w#olly owned subsidiary of /G Electronics% +out# Korea was esta"lishe! in Janua $ 1AAB after clearance from t#e 'orei"n Investment 2romotion oard 3'I2 4. /G set up a state1of1

t#e art manufacturin" facility at * eate &oi!a4 nea Delhi4 in 1AAC% wit# an investment of &s 566 Crores. /G corporate office is located at 2lot no.5;% 0dyo" Vi#ar% Kasna &oad% Greater )oida% India. $#is facility manufactured Color $elevisions% ,as#in" .ac#ines% Air1 Conditioners and .icrowave (vens. DDCompany is settin" up a c#ain of exclusive premium s#owrooms. /G plans to launc# 96 premium rand +#oppes by t#e end of t#e first ?uarter of t#is year. At present% /G #as a total of C: /G stores across t#e country% of w#ic# <5 are s#ops and :C are exclusive stores. rand s#ops will be placed in t#e premium se"ment and t#e tar"et audience will comprise buyers interested in premium and #i"# end products. /G rand +#oppe "oes beyond t#e concept of a normal exclusive store by #avin" a more interactive environment and additional lifestyle orientation on display so t#at t#e customer can actually experience t#e /G products in #is or #er own #ome settin"s. /G Electronics India /td 3/GEI/4% consumer durables leader wit# 8A@ market s#are% is plannin" a brand new ima"e. $o attract inspirational and youn" consumers across India% company will roll out a new marketin" strate"y. $#e exercise will cost t#e company &s :96 crore. '* )lect onics India is t#e fastest "rowin" company in t#e consumer electronics% #ome appliances% and computer perip#erals industry today. /G Electronics is continually providin"% superior tec#nolo"y products O

value for money to more t#an 56 lak# #ouse#olds in India. '*)I' is cele" ating the 11th annive sa $ this $ea . '* #oft In!ia t#e innovation win" of /G Electronics in an"alore is /G ElectronicsD la gest (=D cent e outsi!e Ko ea. ,e at /G+I focus on nic#e tec#nolo"y areas suc# as mobile application development% di"ital video broadcast and biometrics software and support /G Electronics wit# our expertise. .otivated by a passion for tec#nolo"y% a stron" work culture and loyalty to t#e or"ani!ation% we are determined to see /G become one of t#e top th ee brands "lobally. 2rominent consumer electronic company% /G Electronics Inc. #as said t#at it expects t#e sale of its products in India to up by ;5 per cent in 866C. .oon um +#in% mana"in" director of /G Electronics India #as said t#at t#e company #as earmarked <.C billion rupees for investment purpose in India t#is year. $#e said money will be used to market as well as manufacture new products. /G Electronics% w#ic# is ori"inally a +out# Korean Company wit# branc# in India% informed t#at its sales of G+. mobile p#ones% color televisions% air conditioners and ot#er #ouse#old "oods in t#e Indian market was to t#e tune of 75 billion rupees 3G8.< billion4 in 866A. As per +#inDs estimate% t#e sales in 866C would be around ;;6 billion rupees. In order to ac#ieve its tar"et% +#in said /G Electronics will concentrate on caterin" to t#e #i"#1end consumer market w#ic# will #elp boost sales t#is year. India c#urns out six 394 per cent of /G Electronics "lobal

revenues of G<8 billion. $#e Indian branc# of /G exports to <6 countries.

In!ia challenges
The challenges face! "$ '* when ente e! in In!ian ma 6et ;. /ow brand awareness about /G in India. 8. (ne of t#e last .)Cs entered in India 3+amsun"% 2anasonic entered in ;775 in India4. :. -i"# import duty <. Compitition from local market players and ot#er .)Cs in consumer durable se"ment. 5. 2rice sensitiveness of t#e Indian consumer '*)I ove comes these challenges to eme ge as Innovative ma 6eting st ateg$ ;. /aunc# new tec#nolo"ies in consumer electronic and #ome appliances. 8. /G was t#e first brand to enter in cricket in bi" way a way%

by sponsorin" t#e ;777 world cup followed it up in 866: as well. :. /G brou"#t in four captains of t#e Indian cricket team to endorse its products. /G invested more t#en 0+G C million on advertisin" and marketin" in t#is sport. <. /G #as differentiated its product usin" tec#nolo"y and #ealt# benefits. technolog$ Air conditioner #as microwave ovens C$V #as ai *ol!en s$stem e$e and

Health

#ave t#e Health wave s$stem;

'ocal an! efficient manufactu ing to cost

e!uce the

$o overcome #i"# import duties /G manufactures $V refri"erator in India at manufacturin" facility at )oida and . /GEI #ad already commissioned contract manufacturin" at .o#ali Kolkata and #opal for C$Vs. $#is #as #elped /GEI to reduce cost. /GEI implementin" t#e M*i"ital manufacturin" systemN 3*.+4 as t#e cost cuttin" innovation t#is system is follow1up to t#e six si"ma exercise /GEI #ad initiate earlier.

(=D potential /G #as t#e researc# and development facilities in an"alore and . ot# t#e unit carry out &O* department for t#e domestic as well as t#e parent company it also dose customi!e &O* for t#e specific countries to w#ic# it export product.

(egional channel an! wi!e !ist i"ution netwo 6 ;. /G #as adopted t#e re"ional distribution c#annel in India. All t#e distributers work directly wit# t#e company. $#is #as resulted in ?uicker rotation of t#e stock and better penetration into % C% *% class market.

8. /G also follows t#e stock rotation policy rat#er t#en dumpin" stock on c#annel partners. 5 o!uct localiDation,< ;. 2roduct locali!ation is t#e key strate"y used by t#e /G 8. /G came out wit# -indi and re"ional lan"ua"e menus on its $Vs.

:. Introduced t#e low1priced MCineplusN and M+ampoomaN for t#e rural market. <. /G was t#e first brand to introduce "amin" in $Vs in continuations of its association wit# cricket /G introduce cricket "ame in C$Vs

%AJO( K)+ #7CC)## 3ACTO(#,

;. Innovative marketin" 1 /G was t#e first brand to enter cricket in a bi" way% by sponsorin" t#e ;777 ,orld Cup and followed it up in 866: as well. 8. /ocal and efficient manufacturin" to reduce cost 1 $o overcome #i"# import duties% /G manufactures 2C monitors and refri"erators in India at its manufacturin" facility at )oida% *el#i. :. Commissioned contract manufacturin" at .o#ali% Kolkata and #opal for C$Vs. <. 2roduct locali!ation 1 2roduct locali!ation is a key strate"y used by /G. It came out wit# -indi and re"ional lan"ua"e menus on its $V. 5. &e"ional distribution model 1 $#is #as resulted in ?uicker rotation of stocks and better penetration into t#e % C and * class markets.

9. /evera"in" India=s I$ advanta"e 1 /G Electronics #as awarded a contract to develop I$ solutions to /G +oft India 3/G+I4. $#e project involves development and support for E&2% +C.% C&. and I$1enabled services for /G.

#t ategies a!opte! "$ the o ganiDation,

/G follows ;6 commandments w#ic# are as follows. ;. 'oster workin" environment15+ Environment 8. 'ast execution is key to success :. $ransparent and fast communication1open communication <. 0pdate market 1knowled"e Q*emo"rap#ics 5. ,in Q,in relations#ip wit# t#e trade partners 9. Customer is t#e kin" A. Even illin" Q&oad to ac# supplier A C. e in touc# wit# t#e market 3A6@ .arket% :6@ (ffice4. 7. 2lan and Execute annual marketin" Calendar1$ime to market ;6.*isplay s#are of 56@ 1to "et 56@ consumer s#are.

'* ma 6et sha e of consume appliances an! consume elect onic,<

/G /G /G /G /G /G /G

position position position position position position position

of of of of of of of

C$V in various states in India &E' in various states in India ,. in various states in India AC in various +tates in India Audio O -ome $#eater in various in India *V* in various in India .,( in various states in India

$#is analysis is based on t#e (&G survey conducted by /G w#ic# represent t#e /G position of different consumer durables in various states in India. ,e selected different brand in different cate"ory as per t#e market s#are and t#e demand of product in market. $#is analysis represents t#e /G market position durin" t#e period of .arc# 866C. It s#ows t#at /G #as captured maximum market s#are almost in every cate"ory. /G and +amsun" #ave t#e maximum market in consumer durable market but /G dominate t#e almost all t#e cate"ory in consumer durable. 2rominent consumer electronic company% /G Electronics Inc. #as said t#at it expects t#e sale of its products in India to up by ;5 per cent in 866C. .oon um +#in% mana"in" director of /G Electronics India #as said t#at t#e company #as earmarked <.C billion rupees for investment purpose in India t#is year. $#e said money will be used to market as well as manufacture new products. /G Electronics% informed t#at its sales of G+. mobile p#ones% color televisions% air conditioners and ot#er #ouse#old "oods in t#e Indian market was to t#e tune of 75 billion rupees 3G8.< billion4 in 866A. As per +#inDs estimate% t#e sales in 866C would be around ;;6 billion rupees. In order to ac#ieve its tar"et% +#in said /G Electronics will concentrate on caterin" to t#e #i"#1end consumer market w#ic# will #elp boost sales t#is year. India c#urns out six 394 per cent of /G Electronics "lobal

revenues of G<8 billion. $#e Indian branc# of /G exports to <6 countries. +#in remarked t#at t#e company was tar"etin" an increase of exports to G:66 million in 866C from G8:6 million in 866A.

/G 20)E

/G 2une is t#e branc# office of /GEI/. It is located in F.. &oad. In 866< /GEI/ opened second factory w#ic# is located in &anjan"aon. $#is plant manufactures all product includin" *V* writers and G+. mobiles. $#us it became first company to manufacture *V* writers in India. $#e (*2 plant aims to reac# a manpower base of ;566 people and an investment of &s :66 crore till 86;6. /G India will become t#e export #ub for /G ,orldwide% caterin" to t#e .iddle East and African markets. $#e company aims to touc# an export turnover of G: billion by 86;6 from India% w#ic# will contribute to :6 per cent of t#e Indian armDs turnover. % India% (ctober 9% 866< 11 /GE announced : "rowt# strate"ies aimed at t#e ;.; billion people of India makin" t#e Indian market t#e second lar"est "lobal production base followin" C#ina. 0nder t#is strate"y /GE #as projected 866A revenues in India will exceed 0+G;6 billion% ;6 times t#at of 866<. $#e t#ree strate"ies for t#e Indian market t#at t#e "lobal electronics "iant disclosed includedB penetrate t#e sout#1 western market of India t#rou"# t#e new plant near .umbai% t#e second lar"est city in India% in addition to t#e existin" nort#ern plantS installs a new G+. #andset production line in t#e new plant and use it as its second1 lar"est "lobal G+. #andset production line after t#e Tin"dao plant in C#inaS and expand t#e current A56 &O* staff in India to ;%566 by 866A% strivin" to develop premium products and export :6@ of India1manufactured products to Asia% .iddle East and Africa markets by 866A.

/G Electronics= second new plant in 2une% India covers a total area of 8;;%866 s?uare meters and is currently e?uipped wit# a production line to manufacture 966%666 $Vs and one million refri"erators a year. $#e company is set to add production lines of air conditioners% was#in" mac#ines% monitors% and electronic ovens% by 8665. Also% /G Electronics is poised to install a G+. #andset production line in t#e new plant by early next year. $#e G+. #andset line envisa"es a capacity of manufacturin" 8 million #andsets annually% and t#e company expands it to become a "lobal G+. #andset production base wit# a capacity of an annual ;6 million units by 86;6. In connection wit# its t#ree "rowt# strate"ies for t#e Indian market% /G Electronics will invest a total of 0+G;56 million in establis#in" facilities and boostin" &O* efforts in India by 866A. +pecifically% it will invest 0+G5: million in t#e second plant% anot#er 0+G<: million in establis#in" t#e G+. line% and 0+G5< million in securin" &O* manpower and boostin" ot#er efforts. $#rou"# t#ese strate"ies% /G Electronics aims to penetrate t#e "lobal market by usin" C#ina and India as its core production bases% w#ile operatin" its plants in C#an"won and Gumi% Korea% as its main production bases. $#is way% t#e company is pus#in" to penetrate t#e "lobal #ome appliance market. $#e present capacity of t#e facility is of ; lak# unit per year and it s#all cater to t#e need of t#e domestic markets. /G plans to upscale its operations to a fi"ure of 8.5 lak# units a year in t#e near future. $#e plant in addition to its current manufacturin" facility at Greater )oida will enable t#e company to en#ance its consumer reac# and reiterate it=s commitment towards providin" superior tec#nolo"y products to t#e India consumer. $#e key strate"ies bein" implemented include increasin" t#e

number of its re"ional offices from six to ei"#t. /G #as split its sout#ern re"ional office into two% one comprisin" t#e states of $amil )adu and Kerala and t#e ot#er consistin" of And#ra 2rades# and Karnataka. In addition% it #as split one of its nort#ern re"ional offices by makin" 0ttar 2rades# a separate re"ion after spinnin" it out from *el#i )C&. $#e ot#er four re"ional offices take care of East% Gujarat and .ad#ya 2rades#% .a#aras#tra O Goa and 2unjab% -aryana O &ajast#an respectively. In t#e comin" year% /G is also repositionin" its marketin" spends% resultin" in a si"nificant increase in its mass media expenditure for better brand visibility. /G #ad a marketin" bud"et of &s :86 crore in 866A wit# a 96B<6 split in favor of below1t#e1 line activities. )ext year% t#e company plans to increase t#e s#are of mass media even as overall marketin" spends would be raised by just about ;61;5@.

Dist i"ution an! %a 6eting,

$#e company #as number of dealers and ware#ouses. $#ey #ave /G exclusive s#ops. 'or t#e marketin" of t#e products a number of activities are followedB ;. Ex#ibitions are conducted from time to time. 8. +ociety and colle"e activities are conducted. :. -oardin"% 2osters% banners are used so as to "rab t#e attention of t#e costumers. <. *ay to day advertisement in leadin" newspaper. 5. *iscount at festival time. 9. 'or dealer relations#ip t#ey arran"e dealer meetin" at several time in t#e year A. /G divide dealer in "old silver etc. cate"ory to know t#e performance of t#e dealers. C. $#ey #ave t#eir sales persons at various sub dealer store and at mordent trade store for particularly for t#e promotion of t#e /G product. 7. /G also uses t#e radio '. for t#e promotion activities. ;6.Also provide capon and scratc# card for festive season.

The logistics E#uppl$ Chain %anagementF,<

/o"istics is t#e art and science of mana"in" and controllin" t#e flow of "oods% ener"y% information% and ot#er resources like products% services% and people% from t#e source of production to t#e marketplace. It is difficult to accomplis# any marketin" or manufacturin" wit#out lo"istical support. It involves t#e inte"ration of information% transportation% inventory% ware#ousin"% material #andlin"% and packa"in". $#e operatin" responsibility of lo"istics is t#e "eo"rap#ical repositionin" of raw materials% work in process% and finis#ed inventories w#ere re?uired at t#e lowest cost possible. /o"istics .ana"ement is t#at part of t#e supply c#ain% w#ic# plans% implements and controls t#e efficient% effective forward and reverse flow and stora"e of "oods% services and related information between t#e point of ori"in and t#e point of consumption in order to meet customersD re?uirements. 5&=s of /o"istic followed by /GB ;. &i"#t $ime 8. &i"#t 2lace :. &i"#t Condition <. &i"#t Cost 5. &i"#t -andlin" $#e /G 'actory is located at )(I*A O . $#ere are t#ree types of ,are#ouse1 ;. .ot#er ,are#ouse 8. ranc# ,are#ouse :. +pare part ware#ouse $#e mot#er ware#ouse is t#at w#ere t#e products from t#e factory are kept and from t#at ware#ouse% t#e

products are sent to t#e branc# ware#ouse. A ware#ouse is a commercial buildin" for stora"e of "oods. ,are#ouses are used by manufacturers% importers% exporters% w#olesalers% transport businesses% customs% etc. $#ey are usually lar"e plain buildin"s in industrial areas of cities and towns. $#ey come e?uipped wit# loadin" docks to load and unload trucksS or sometimes are loaded directly from railways% airports% or seaports. $#ey also often #ave cranes and forklifts for movin" "oods% w#ic# are usually placed on I+( standard pallets loaded into pallet racks. In ware#ouse A locations is set up for t#e products. /oc ;% /oc 8% /oc :% /oc < % /oc 5 %/oc9% /oc A /oc ; Q sellin" /oc 8 1 second sale /oc : 1 insurance claim /oc < 1 write off material /oc 5 Q destroy t#e item /oc 9 1 court case material /oc A 1 for repair

5=s of ware#ouse% w#ic# t#e /G strictly follow. ;. +weepin" 8. +ortin" :. +ystematic Arran"ement <. +implification 5. +elf1 discipline In ware#ouse% t#e products are pinup wit# :1color paper to "et t#e knowled"e about t#e delivery.

;. &ed Card Q $o stop t#e product "oin" into market% 8. Green card Q $o allow t#e product for delivery in market% :. Hellow Card Q After t#e product labeled wit# "reen% allow t#is to move in market *istribution $imeB1 R /ocal delivery Q < #rs. R 0pcountry delivery 1 ;8 #rs. R ,it#in 866 km. Q 8< #rs. R eyond 866 km. Q <C #rs. $#e above distribution time is t#e time of delivery of products from ware#ouse to t#e market place% w#ic# t#e lo"istic department follows to fulfill t#e demand in t#e market at ri"#t time. In /G% we #ave t#e followin" process% w#ic# is followed in lo"istic t#rou"# E&2. U (rder 2rocessin" U Invoicin" U Indentin" U &eport (rder 2rocessin" bookin" for dealers Edistributors Invoicin" after billin" processEbill "eneration Indentin" re?uirement 32roduction 0nit to branc# unit4 &eport distributed to all In ware#ouse% t#ere are two mode of dispersion of product from one place to anot#er wit#in. a4 -ydraulic b4 .anual In addition% t#ere are :5 fire extin"uis#ers to prevent t#e accidental #a!ard wit#in t#e ware#ouse due to fire. $#ese fire extin"uis#ers are valid up to year 86;;. (ne #as to follow t#e rule of M)( +mokin"N wit#in t#e ware#ouse

'ogistics Ten Comman!ments G *ol!en (ules ; 1 ,are#ouse 5+ Q to be strictly followed Q 'G Q 8% 5 O A to be properly maintained. 8 1 ;66@ ar1codin" for all inward O outward transaction. : 1 'ollow standard pick Q s#ip process reli"iously. < Q )o inventory mismatc#% s#orta"e or excess Q mont#ly ;66@ p#ysical stocktakin". 5 Q )il :6V for 'G Q 8% : O 5. 9 Q )il transit dama"e. A Q 'ile insurance claim wit#in 8 days. +ettle all claim all wit#in :6 days. C Q )o inter Q branc# transfer wit#out -( clearance. 7 Q 2+I feedin" into system by 85t# of every mont#. Ensure 76@ accuracy. ;6 Q Apply p#ysical '.'(. 5 o"lem ;1 81 :1 <1 ;1 81 :1 <1 In transit material dama"e c#eckin". Cost tar"et ac#ievement. )atural events trackin". 'luctuation in demand1supply E?uipments ;66@ ar code scanner. E&2 Q Invoice Generation 2rocess. -ydraulic $rolleys for material movement. 2allets for safety of material.

C7#TO%)( #)(-IC),

$#e best and t#e bi""est international brands are #ere in India Qbut t#e irony if it allB w#ere is t#e after1sales1 serviceW +o inte"ral to a brand% so critical for its success and so taken for "ranted in developed marketsX In India% after sales service is% for want of a better description% t#e pits. +o w#at=s stoppin" t#e best companies from pullin" out all t#e stops w#en it comes to providin" t#e best serviceW *o customers expect for too muc#W (r is it t#at in India t#ey don=t really care. rand E?uity fanned out to .)C as well as Indian consumer durable companies% stockiest and dealers% analysts and market researc#ers to "et feel of w#at=s really keepin" after sales from bein" used as a cuttin" ed"e marketin" tool in pus#in" products across cate"ories. Customers support followin" t#e purc#ase of a product or service. In some cases% after1sales service can be almost as important as t#e initial purc#ase. $#e manufacturer% retailer% or service provider determines w#at is included in any warranty 3or "uarantee4 packa"e. $#is will include t#e duration of t#e warranty traditionally one year from t#e date of purc#ase% but increasin"ly two or more year=s maintenance andEor replacement policy% items includedEexcluded% labor costs% and speed of response. In t#e case of a service provider% after1sales service mi"#t include additional trainin" or #elpdesk availability. (f e?ual importance is t#e customerDs perception of t#e de"ree of willin"ness wit# w#ic# a supplier deals wit# a ?uestion or complaint% speed of response% and action taken. /G also #ad a bi" problem of after sale service in India. *urin" t#e project we also came to know t#at after sale service becomes t#e bi" issue in t#e re"ion. Customers

as well as dealer were facin" t#e problem of after sales service. ecause of t#is problem many dealer in t#e re"ion were not ready to sell /G product. +o it becomes t#e bi" issue. ut /G #as taken some solid steps towards improvin" customer=s perception and experience of after sales service. ecause it very important in competitive market to provide t#e best service. / G Electronics #as si"ned a memorandum of understandin" wit# 8: Industrial $rainin" Institutes to stren"t#en its after sales service in India. $#e company aims to recruit ;6%666 people by t#e end of t#is year as a part of its brandin" strate"y to focus on service and move away from discountin". / G Electronics #as identified ei"#t states wit# #i"# after sales service call rates to ink t#e deals wit# t#e I$I. H V Verma% director -& and mana"ement system% /G Electronics said% K$#e Company was tryin" to find a solution for effective after sales service since last two years. $#ere is a #u"e need of trained manpower for t#e after sales service to ali"n wit# t#e companyDs expansion and focus on t#e G+. mobiles and t#e personal computer se"ments.K ;. In t#e initial p#ase t#e company #as entered into a"reements wit# I$Is in t#e states like .a#aras#tra% Gujarat% *el#i% 2unjab% Assam% and Karnataka and is in t#e last le" of si"nin" wit# 0ttar 2rades#. 8. / G Electronics% wit# ;866 service centers% #as already recruited :66 students and plans to beef up t#e number to ;6%666 by t#e year1end. :. K$#e company #as offered a sc#olars#ip to t#e selected students for t#e last six mont#s of t#eir trainin" pro"ram%K

<. $#e company will invest &s C crore 3&s C6 million4 in employee development pro"ram t#is year wit# an aim to attain a C per cent attrition rate. 5. $#e company moved away from t#e discountin" strate"y since last year and is puttin" t#rust on t#e ?uality and service in its brand communication to position /G as a premium consumer electronics brand. 9. At t#e top% t#e +ervice *ivision in Korea reports to t#e Global C.(. 3as mentioned in *ermot=s public interview in E$ on ,ednesday4. $#is s#ows commitment t#at +ervice must be made into a marketin" differentiator% and levera"ed t#us. A. /G #as t#e widest service network across t#e countryS some estimates put it at a si"nificant multiple of service1 infrastructure from our nearest competitor. ,#ile t#e sale si!e may also be a nice multiple from nearest% it s#ows t#e company is ready to put our money w#ere our mout# is. C. $#e company #as introduced a 8;; service 1 once you re"ister your complaint% we will call you back in 8 #ours 3#ence 84% set up an appointment for t#e next convenient day for you 3#ence t#e first ;4% and s#ow up in t#e promised ;1#our slot 3#ence t#e second ;4. If t#e next convenient day for you is t#e next day% t#at=s "reat too. It=s a disruptive action in an industry 3includin" /G4 #avin" traditionally s#ied away from its service responsibilities% and t#us not levera"in" any milea"e from it. 7. $#e company is promotin" 8;; t#rou"# A$/% probably t#e first time after sales service is bein" communicated in t#is fas#ion by any product company. Hou may #ave seen t#e $V commercial or #eard t#e radio advert or seen t#e newspaper ad or in1s#op posters% bot# of w#ic# revolve around prompt response.

;6.$#e first /G1owned service centre opened in Gur"aon. 3+ervice in India "enerally works t#rou"# aut#ori!ed service centers% in /G=s case t#ey work exclusively for /G.4 A company1owned service centre tries t#at muc# #arder% knows t#in"s better% and can even contribute as a revenue center. O"Hective of the p oHect Primary objective $#e main objective of filed survey durin" t#e project was to find out t#e market s#are of t#e /G and also calculate t#e display s#are. 'ind out t#e positional dealer w#o can sale t#e /G product in lar"e volume. $#e main objective of researc# was to identify potential dealer and development t#ese dealer. +o /G can make t#em t#eir direct dealer. $#is will ease t#e dependence on t#e some bi" dealer like .a#aras#tra and .a#aveer electronics. 'ind out t#e problem faced by t#e dealer in sales and t#e distribution. Secondary objective $#e (bjective was to find out t#at #ow far t#e ex#ibitions are #elpful in brandin"% ,#ile purc#asin" t#e consumer durables w#ic# parameter is most important for t#e consumerW *o t#e consumers prefer t#e financial facility for buyin" consumer durableW -ow fre?uently consumers c#an"e t#e consumer durableW $o en#ances t#e knowled"e of consumer durable market. $o increases t#e knowled"e consumer durable product of /G.

 $o en#ances t#e knowled"e about t#e marketin" and brandin" activity.

(esea ch %etho!olog$,
&esearc# met#odolo"y is considered as t#e nerve of t#e project. ,it#out a proper well1or"ani!ed researc# plan% it is impossible to complete t#e project and reac# to any conclusion. $#e project was based on t#e survey plan. $#e main objective of survey was to collect appropriate data% w#ic# work as a base for drawin" conclusion and "ettin" result. $#erefore% researc# met#odolo"y is t#e way to systematically solve t#e researc# problem. &esearc# met#odolo"y not only talks of t#e met#ods but also lo"ic be#ind t#e met#ods used in t#e context of a researc# study and it explains w#y a particular met#od #as been used in t#e preference of t#e ot#er met#ods (esea ch !esign &esearc# desi"n is important primarily because of t#e increased complexity in t#e market as well as marketin" approac#es available to t#e researc#ers. In fact% it is t#e key to t#e evolution of successful marketin" strate"ies and pro"rammers. It is an important tool to study buyer=s be#avior% consumption pattern% brand loyalty% and focus market c#an"es. A researc# desi"n specifies t#e met#ods and procedures for conductin" a particular study. Accordin" to Kerlin"er% M&esearc# *esi"n is a plan%

conceptual structure% and strate"y of investi"ation conceived as to obtain answers to researc# ?uestions and to control variance. T$pe of esea ch is Desc iptive (esea ch $#e type of researc# adopted for study is descriptive. *escriptive studies are undertaken in many circumstances w#en t#e researc#es is interested to know t#e c#aracteristic of certain "roup suc# as a"e% sex% education level% occupation or income. A descriptive study may be necessary in cases w#en a researc#er is interested in knowin" t#e proportion of people in a "iven population w#o #ave in particular manner% makin" projections of a certain t#in"% or determinin" t#e relations#ip between two or more variables. $#e objective of suc# study is to answer t#e Mw#o% w#at% w#en% w#ere and #owN of t#e subject under investi"ation. $#ere is a "eneral feelin" t#at descriptive studies are factual and very simple. $#is is not necessarily true. *escriptive study can be complex% demandin" a #i"# de"ree of scientific skill on part of t#e researc#er. *escriptive studies are well structured. An exploratory study needs to be flexible in its approac#% but a descriptive study in contrast tends to be ri"id and its approac# cannot be c#an"ed every now and t#en. It is t#erefore necessary% t#e researc#er "ive sufficient t#ou"#t to framin" researc#. Tuestions and decidin" t#e types of data to be collected and t#e procedure to be used in t#is purpose. *escriptive studies can be divided into two broad cate"oriesB Cross +ectional and /on"itudinal +ectional. A cross sectional study is concerned wit# a sample of elements from a "iven population. $#us% it may deal wit# #ouse#old% dealers% retail stores% or ot#er entities. *ata on a number

of c#aracteristics from sample elements are collected and analy!ed. Cross sectional studies are of two typesB 'ield study and +urvey. Alt#ou"# t#e distinction between t#em is not clear1 cut % t#ere are some practical differences% w#ic# need different tec#ni?ues and skills. 'ield studies are ex1post1factor scientific in?uiries t#at aim at findin" t#e relations and interrelations amon" variables in a real settin". +uc# studies are done in live situations like communities% sc#ools% factories% and or"ani!ations. Anot#er type of cross sectional study is survey result% w#ic# #as been taken by me. A major stren"t# of survey researc# is its wide scope. *etail information can be obtained from a sample of lar"e population . esidesS it is economical as more information can be collected per unit of cost. In addition% it is obvious t#at a sample survey needs less time t#an a census in?uiry. *escriptive researc# includes survey and fact findin" en?uiries of different kinds of t#e major purpose. *escriptive researc# is description of t#e state of affairs% as it exists at present. $#e main c#aracteristic of t#is met#od is t#at t#e researc#er #as no control over t#e variablesS #e can only report w#at #as #appened or w#at is #appenin". $#e met#ods of researc# utili!ed in descriptive researc# are survey met#ods of all kinds includin" comparative and co relational met#ods. $#e reason for usin" suc# needs to be flexile in its approac#% but a descriptive study &A)C; 8 : in contrast tends to be ri"id and its approac# cannot be c#an"ed ever now and t#en.

*EA/E& .A)AGE.E)$ .appin" of re"ional dealers. $#ey #ave been divided into t#ree cate"ories on t#e basis of t#eir turnover and t#e sellin" capacity. 1; 18 1: 1; Includes t#e modern trade and t#ey #ave direct billin" from t#e branc# office. $#ey #ave #i"# turnover and t#e company depends #eavily on t#em18 includes t#e distributors. $#ey #ave direct billin" from t#e branc# office. $#eir turnover is also #i"#. 1: Includes t#e sub dealers .$#ey #ave direct billin" from distributors or from t#e branc# office. $#eir turnover is not so #i"#% but t#ere are few sub dealers w#ose potential is ?uite #i"#. Accordin" to sales t#e branc# #as desi"nated as "old and silver sub dealers. ( FEC$IVE (' $-E +$0*H $#e objective was to find out t#e market s#are of /G products% advanta"es and disadvanta"es of /G products from dealers and to find out w#at problems t#ey are facin" wit# t#e /G products so t#at problems can be resolved to increase t#e sale. Data collection metho!s, After t#e researc# problem% we #ave to identify and select w#ic# type of data is to researc#. At t#is sta"eS we #ave to or"ani!e a field survey to collect t#e data. (ne of t#e important tools for conductin" market researc# is t#e availability of necessary and useful data.

2rimary dataB 'or primary data collection% we #ave to plan t#e followin" four important aspects. +amplin" &esearc# Instrument +econdary *ata 1 $#e Company=s profile% journals and various literature studies are important sources of secondary data. *ata analysis and interpretation ;. Tuestionnaires 8. 2ie c#art and ar c#art TuestionnairesB $#is is t#e most popular tool for t#e data collection. A ?uestionnaire contains ?uestion t#at t#e researc#er wis#es to ask #is respondents w#ic# is always "uided by t#e objective of t#e survey. 2ie c#artB $#is is very useful dia"ram to represent data % w#ic# are divided into a number of cate"ories. $#is dia"ram consists of a circle of divided into a number of sectors% w#ic# are proportional to t#e values t#ey represent. $#e total value is represented by t#e full create. $#e dia"ram bar c#art can make comparison amon" t#e various components or between a part and a w#ole of data. ar c#artB $#is is anot#er way of representin" data "rap#ically. As t#e name implies% it consist of a number of w#ispered bar% w#ic# ori"inate from a common base line and are e?ual widt#s. $#e len"t#s of t#e bards are proportional to t#e value t#ey represent. 2reparation of reportB

$#e report was based on t#e analysis and presented wit# t#e findin"s and su""estions. $#e sample of t#e ?uestionnaires is attac#ed wit# t#e report itself. +amplin" .et#odolo"yB *etails of t#e samplin" met#odolo"y% I #ave made ?uestionnaire. $#e one is made for t#e Customer. )o. of ?uestions in ?uestionnaires for customerB 6A )o. of ?uestion related to /G productB 6: )o. of people met durin" t#e researc#B 866 )o. of respondents durin" t#e researc#B 56 +ample unit 2rofessionals% usiness man% Employees% -ouse wife% ,orkin" women% +tudents AnalysisB T;. -ave you purc#ased any consumer durable durin" Ex#ibitionsW Hes )o Inferences ;. 95 @ of Customers #ave not purc#ased any consumer durable from ex#ibitions. 8. (nly :5 @ people #ave purc#ased. :. It s#ows t#at consumers are comin" in t#e ex#ibition for knowled"e of product and also t#ey want to know t#at weat#er t#ere is actual price difference in ex#ibition and s#op or not. <. Consumers also want to compare to t#e different brand w#ic# are available in t#e ex#ibition. 5. +o ex#ibitions are more useful to increases brand awareness. 9. 2eople are less interested to purc#ase product from t#e ex#ibition.

T.8,#ile purc#asin" consumer durable w#ic# parameter influences youW 2rice 2roduct feature rand +ervice *urability Inference ;. :6@ of customer "ives importance to price. +o it s#ows t#at Indian consumers are very price sensitive. $#ey "ive more importance to price over t#e brand. 8. 89@ "ive importance to brand. +o price and rand matter a lots for t#e costumers. And t#ey are also want best brand in best price. :. ;7@ to product feature +ervice ;9@ and durability 7@ +ervice is also a bi" factor for t#e customer t#ey are less interested in t#e durability. T:. 'rom w#ere you prefer buyin" consumer durables Ex#ibitions Co.s#oppee +#owroom InferenceB ;. A majority of customers prefer to buy from s#owrooms. Very less proposition of customers buys from Ex#ibitions. 8. <A@ customers are prefer to by from t#e s#owrooms because t#e s#owrooms are more convenient to customers t#ey also t#ink t#at t#ese s#ops "ive more discounts. :. 2eople are less interested to buy from t#e ex#ibition t#ey only visit t#e ex#ibition for price ?uotation of t#e product and t#e comparison of t#e product.

T.<.Hou prefer to buy from t#e same as you #ave mentioned in T.: because of followin" reasons Attractive 2rice +ervice *emonstrations (ffers Inference ;. Customers buy from s#owrooms because of t#e service and convenience. $#ese are two main factors. 8. Customers are preferred to buy from t#e s#owroom because of t#ey t#ink t#at t#ese convenient store may provide "ood after sell service. :. Customer also t#inks t#at t#ere is more c#ance to bar"ain and t#ey can "et more discounts in t#ese s#owrooms. <. 2rice also a factor t#at attract t#e customer in t#ese s#owrooms. T.5.,#ic# consumer durable you #ave and of w#ic# brandW C$V /C* 2/A+.A &E' ,. ., AC Inference In C$V section maximum customers #ave (nida% in /C* +ony is t#e leader% In plasma 2/ is t#e leader% In &ef /G is t#e leader% ., /G is t#e leader. In ,. t#ere are companies and in AC also.

T.9. -ow fre?uently you c#an"e your consumer durablesW ;1: years :15 years 51;6 years .ore t#an ;6 years Inference ;. Customers prefer to c#an"e consumer durables wit#in 51;6 years. In India people do not c#an"e consumer durable fre?uently. 8. 8:@ customers do not c#an"e t#eir consumer durable wit#in ;6 year. :. It represent t#at Indian consumer do not prefer to c#an"e t#eir consumer durable fre?uently. T.A.*o you prefer any financin" sc#eme to purc#ase consumer durablesW Hes )o Inference .ajority of customers do not prefer any financial sc#eme.

Deale su ve$ 3in!ings

;. y calculatin" t#e display s#are we found t#at in most of store /G #as 56@ display s#are almost all cate"ories. 8. y t#e actual mont#ly sale of particular store we came to know t#e capacity of t#e store and #ow muc# product can t#ey sale. :. It #elps us to know t#at weat#er dealer is capable of bein" a direct dealer

of /G or not and it also #elps to find out t#e new dealer w#o are capable of bein" t#e dealer of /G. <. ,e also came to know w#ile visitin" t#e s#ops t#at t#ere was bi" problem of after sale service. 5. .any dealers were facin" t#e problem of after sale service because t#ere is no follow up calls from /G. 9. *emo calls also not done properly. A. $#e top competitor of /G product in is +A.+0)G. C. In area t#e performance of /G is in better position but t#e competitor also #old closer mar"in. 7. $#ere is #i"# "rowt# of sale in market due to boomin" in new tec#nolo"y and better service. ;6.,ord of mout# plays a vital role in awareness amon" customer. $#is is one factor% w#ic# can play a "ood role in promotion of products as well as demonstration "iven by t#e s#opkeeper also plays a vital role for customer. ()CO%%)&DATIO&# A&D #7**)#TIO&#, ;. /G s#ould improve it=s after sale service because its #its badly /Gs market s#are in re"ion. 8. .ore detailed customaries service is to be provided. :. $#e trainin" to in s#op demonstration s#ould be "iven at fre?uent time interval and feed back s#ould be considered positively. <. $#e company s#ould look into t#e matter of person #irin" for in s#op demonstration. A bi" /G s#owroom s#ould #ave at least 8 suc# kind of person. 5. /G s#ould try new dealer w#o #ave t#e potential. +o t#ey can tar"et more market.

9. As t#ere is a bottle neck competition between +amsun" and /G% it is necessary to take measure steps to overcome t#e area of downfall in /G wit# respect to +amsun". A. $#e marketin" mana"ers s#ould make better relations wit# dealers and reputation of t#e company. C. Customer considers ?uality as t#eir first preference% so t#e company s#ould "ive more stress on t#is. 7. $#e switc#in" of customer from /G product to ot#er brand is due to t#e bed after sell service in s#op. ;6.$#e product is well aware and it is on top of mind of customer. +o company s#ould always improve services and update t#eir tec#nolo"y.

C7#TO%)( #7(-)+ 3I&DI&*# ;. +econdary supports play an important role in t#e customers mind and create awareness amon" t#e customers. $#e secondary support includes *emonstration% Ex#ibition O Even +ponsors. 8. 'rom t#e survey it was found out t#at t#e majority of customers don=t buy consumer durables from ex#ibitions. $#ey just visit t#e ex#ibitions to see t#e co. latest model. :. $#ey want to buy from t#e s#owrooms or from co. s#owrooms. 'or t#em service is important . eside convenience and ot#er factors service is key factor. <. Also majority of customers do not want any financin" sc#eme for purc#asin" t#e durables.

5. $#ere was #eavy rus# on weekends so lar"e numbers of I+*=s were appointed t#at day. Also t#e live demo calls #elps in sellin". Exc#an"e offers also "enerate sale. 9. Customers are also now very c#oosy in buyin" t#e product and it is important for t#e company to make loyal customer of t#eir brand. A. In survey we found t#at /G #as captured maximum market s#are in every cate"ory. /G dominates C$V% /C*% and &efri"erator% and ,as#in" mac#ine% cate"ory. C. /G and +amsun" #ave bottle neck competition in $V and &E'. cate"ory. 7. $#e product is well aware and it is on top of mind of customer. ;6.Customers are also now very c#oosy in buyin" t#e product and it is important for t#e company to make loyal customer of t#eir brand.

()CO%%)&DATIO&# A&D #7**)#TIO&# ;. Ex#ibitions do not #elp to "enerate so muc# sells but t#ey s#ould be conducted re"ularly. $#is #elps in "eneratin" awareness re"ardin" t#e product in customers w#ic# ultimately #elps in sales. 8. Also it is #elps in advertisin" for t#e new products. /ike in t#is ex#ibition new /C* +CA&/E$ was advertised. Company s#ould always focus on service. :. *isplay s#are s#ould be increased w#ere t#ere is less t#an 56@ as /G also believes t#at MF( *IK-$A -AI ,( IK$A -AIN. <. Company s#ould try to improve service. )o doubt t#e company products #ave tec#nically ed"e over

competitors but in lon" run it may #amper t#e company=s profit. 5. Company s#ould concentrate more on its major drivers /C*% I$% and G+.. randin" and promotions s#ould be done effectively as it creates a lon" lastin" ima"e in t#e mind of customers. 9. Company s#ould also cater to t#e needs of sub dealers as some of t#e sub dealers #ave potential of #i"# sales. 'I%ITATIO&# Every study #as certain limitations. In our study% also t#ere were certain limitations% w#ic# I could not able to solve. ;. $#e researc# was conducted in a very small area. 8. (ur researc# work period witness t#e bi""est ups and downs in product sale of different brands% w#ic# affected t#e perception of t#e customer. $#is was bi""est drawback of my study. :. $ime factor was also important for us. ,e #ad limited time for t#e researc#% for w#ic# a full1fled"ed report was insufficient for me. <. $#e customer filled t#e ?uestionnaire mostly in careless manner% so it was difficult to make t#em #old for time. 5. ,e #ad only found t#e upper1middle class family to fill up t#e ?uestionnaire% but "enerally% an avera"e middle class family was re?uired for t#e study. 9. $#e sample si!e is also very small w#ic# represent my researc# on consumer be#avior I /I(G&A2-H www.l"india.com

www."oo"le.com www.wikipedia.com usiness world usiness today /G ma"a!ine Economics times )ews paper $imes of India

Consume su ve$ @uestionnai e

T;. -ave you purc#ased any consumer durable durin" Ex#ibitionsW a4 Hes b4 )o T.8,#ile purc#asin" consumer durable w#ic# parameter influences youW a4 2rice b4 2roduct feature c4 rand d4 +ervice e4 *urability T:. 'rom w#ere you prefer buyin" consumer durables a4 Ex#ibitions b4 Co.s#oppee c4 +#owroom A9 T.<.Hou prefer to buy from t#e same as you #ave mentioned in T.:

because of followin" reasons a4 Attractive 2rice b4 +ervice c4 *emonstrations d4 (ffers e4 Convenience T.5.,#ic# consumer durable you #ave and of w#ic# brandW a4 C$V 1111111111111111111 b4 /C* 1111111111111111111 c4 2/A+.A 1111111111111111111 *4 &E' 1111111111111111111 E4 ,. 1111111111111111111 '4 ., 1111111111111111111 G4 AC 1111111111111111111 T.9. -ow fre?uently you c#an"e your consumer durablesW a4 ;1: years b4 :15 years c4 51;6 years d4 .ore t#an ;6 years AA T.A.*o you prefer any financin" sc#eme to purc#ase consumer durablesW a4 Hes b4 )o

A55)&DII
A.+.I A.+.. .+.I CAC C.+ *.+.C. /.-.* &.E.' Area +ervice In c#ar"e Area sales mana"er ranc# +ervice In c#ar"e Commercial Air Conditionin" +ystem )E$ Customer +ervice )et *irect service centre. /o"istics -ead of department &efri"erator