CHAPTER - I INTRODUCTION

INTRODUCTION
The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably' Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process' Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. The most important concepts of marketing are: segmentation, targeting, positioning, needs, wants, demand, offerings, brands, value and satisfaction, exchange, transactions, relationships and networks, marketing channels, supply chain, competition, the marketing environment, and marketing programs. These terms make up the working vocabulary of the marketing professional. Marketings key processes are: (1) opportunity identification, (2) new product development, (3) customer attraction, (4) customer retention and loyalty building, and (5) order fulfillment. A company that handles all of these processes well will normally enjoy success. But when a company fails at any one of these processes, it will not survive. Marketing gives great importance to the customers of the business and has two important principles to take forward the same cause: a. All the policies of the company and the company activities should be directed toward the end of satisfying customer needs. b. What is more important than achieving maximum sales volume is to attain a profitable sales volume.

MARKET SHARE:
Market share in strategic management and marketing according to Carlton O'Neal, is the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research) to determine. Sometimes, though, one can use primary research to estimate the total market size and a company's market share.

Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macroenvironmental variables such as the state of the economy or changes in tax policy. However, increasing market share may be dangerous for makers of fungible hazardous products, particularly products sold into the United States market, where they may be subject to market share liability.

Why Market Share ?

Investors look at market share increases and decreases carefully because they can be a sign of the relative competitiveness of the company's products or services. As the total market for a product or service grows, a company that is maintaining its market share is growing revenues at the same rate as the total market. A company that is growing its market share will be growing its revenues faster than its competitors. Investors can obtain market share data from various independent sources (such as trade groups and regulatory bodies), and often from the company itself, although some industries are harder to measure with accuracy than others.

An increase in marketing share means that the company has sold a higher percentage of the product in the market than a competing company over the last reporting period. Marketing share information helps determine the likelihood of an organizations future success. There are many methods of achieving marketing control, which can include but are not limited to market research, analysis of financial signposts like market share, sales, and cash flow, and customer relations information gleaned from customer feedback and service levels. A consumer is a person or group with purchasing power. Potential consumers include individuals, households and businesses. When a company's marketing share increases to include more consumers in its market, the company often receives greater capital and has an opportunity to expand its operations to meet the demand of its growing consumer pool. Since those factors are beyond your control, they don't give you meaningful information about how you are actually doing as a company in terms of improving your business. By measuring market share, you can see if you are doing better or worse compared to other companies that are facing the same challenges and opportunities that you are. An increase in marketing share means that the company has sold a higher percentage of the product on the market than a competing company over the last reporting period. Marketing share information helps determine the likelihood of an organization's future success.

In some cases it can be to a company's advantage to decrease market share, if the lower costs of lower market share can improve profitability. Managing market share, therefore, is a very important aspect of managing a business

Market share analysis

Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors. market share analysis needs to take into account the following: TOTAL MARKET SIZE: This refers to the annual business volume in currency or in number of transactions; MARKET GROWTH RATE: This refers to the Compounded Annualized Growth Rate ( CAGR ) taken over a period of 3 to 5 years; MARKET SHARE: The break up of market share in % terms, to help identify the top players, the middle and the "minnows" of the marketplace, based on the volume of business conducted; MARKET SEGMENTATION: What are the key factors that determine the market, is it price, is it quality, is it speed of service, is it ease of maintenance, no. of points of distribution, etc. e.g. by mapping on quality and price parameters, it is possible to identify on a X-Y plane as to which are the spaces which are crowded by service providers and which are the relatively empty spots. This understanding helps plan for entry barriers; KEY PLAYERS: Who are the top players in each identifiable segment of the market. Are they providing premium quality, or premium service or price advantage. This helps identify possible future target segments; SWOT ANALYSIS: It is critical to identify the main Strengths of top players as well as Weaknesses / Areas of Improvement to combat the onslaught in a marketing warfare and help prepare accordingly. Strength and weakness include brand equity, geographic presence, strong management / leadership, technological edge, patent / copyrights, etc. It is equally important to identify emerging Opportunities which could make the market grow faster / larger or acquire business more easily. Similarly, are there Threat factors that could reduce the total market size. These could be due to regulatory guidelines, changes in fashion trends, consumer preference, macro economic events like currency crisis, import / export, war, natural calamity, demographic shift, etc.; TARGET MARKET SHARE: Based on the above analysis, it is possible to arrive at the overall market size for the assessment period, and thereby decide on the volume of business any one firm targets to achieve during the period. This helps determine the firm's targeted market share. This also help budget for strategic activities like budgeting for R&D, sales promotion, marketing, training, etc.

REVIEW OF LITERATURE
SPOT MARKETING
kotler coins the idea of "a new paradigm in marketing - he emphasizes that organizations need to practice "wrap-around marketing", which encompasses both getting and retaining customers. Gronroos(1994:4-20) strengthens kotler's suggestions by arguing that trends in business and modern research into industrial marketing, services marketing and customer relationship economics, demand a relationship oriented approach to marketing. These views could be a relevance to spot marketing.

Improving Customer Satisfaction

The purpose of this study is to examine the relationship between employee satisfaction and customer satisfaction, and to examine the impact of both on a hospitality companys nancial performance utilizing service-prot-chain framework as the theoretical base. Specically, this study explores four major relationships: (1) the direct relationship between customer satisfaction and nancial performance; (2) the direct relationship between employee satisfaction and nancial performance; (3) the direct relationship between customer satisfaction and employee satisfaction; and (4) the indirect relationship between employee satisfaction and nancial performance. Furthermore, this study examines the mediating role of customer satisfaction on the indirect relationship between employee satisfaction and nancial performance. Data for this study was collected from employees, customers and managers of three- and four star hotels. Structural equation modeling (SEM) with a two-step approach was utilized to empirically test the proposed hypotheses and the relationships between the constructs. Findings suggest that while customer satisfaction has positive signicant impact on nancial performance, employee satisfaction has no direct signicant impact on nancial performance. Instead, there is an indirect relationship between employee satisfaction.

Relationship marketing
In the last two decades, Practitioners and Academics have focused ever more on how firms relate to their markets. This has resulted in the emergence of a sub discipline of marketing referred to as Relationship Marketing. Morgan and Hunt (1994) defined Relationship marketing as the marketing activities directed toward establishing, developing, and maintaining successful relational exchanges. The separation of the producers from the users was a natural outcome of the industrial era. On the one hand, mass production enforced producers to sell their product & services through middlemen, and on the other, industrial organizations, due to specialization of corporate functions, created specialist purchasing departments and buyer professionals, thus separating the users from the producers. However, today's technological advancements that allow
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producers to interact directly with large numbers of buyers, and because of a variety of organizational development processes, such as empowerment and total quality management programs, direct interface between producers and customers is possible in both consumer and industrial markets. Relationship marketing attempts to involve and integrate customers, suppliers and other infrastructural partners into a firm's developmental and marketing activities (McKenna 1991; Shani and Chalasani 1991). Wilson (1995) summarized different relationship variables that affects the relationship of firm with different stakeholders, those variables are Commitment, Trust, Cooperation, Mutual Goals, Interdependence and Power, Performance Satisfaction, Structural Bonds, Comparison Level of Alternatives, Adaptation, Non-retrievable Investments, Shared Technology, and Social Bonds. Morgan and Hunt (1994), while discussing relationship variables focused more on commitment and trust as a major variable affecting relationship between different parties involved in marketing transaction & exchange. The Nordic School emphasized on marketing as a cross functional process. For maintaining relationships marketing function should be carried out by all employees and departments, it is no more concentrated in marketing department as a specialist function (Gronroos, 1989). International Marketing & Purchasing (IMP) group looks at B2B markets. In industrial marketing, relationships are built over time with increasing experience, reduction of uncertainty, greater commitment in each others (Ford, 1980). Anglo Australian school of thought believes in quality and service of marketing with focus on delivering customer value. Customer judges the value of the product or service from benefits perceived from it compared with its cost of ownership. The better value delivered by the firm, better is the customer relationship (Christopher, 1996). Whatever school you follow it is the customer retention which is the base of relationship marketing (Rosenberg & Cazepiel, 1984). CRM is the new-fangled sprouting issue in relationship marketing with focus on cooperative and collaborative relationship between a company and its customers. "Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. It involves integration of marketing, sales, customer service and supply chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value" (Sheth & Parvatiyar, 2001). CRM represents the marriage between the customer orientation and the emerging information technology to produce a memorable relationship experience to the marketers as well as to the customers (Agrawal, 2003). CRM can be considered as a tool for delivering marketing dream to enjoy long term relationship with customers, especially with the profitable ones (Pearson, 1995). Finally it can be said that CRM is not the end, it's a means to ensure long term success of marketing effort.
By

Kunal Gaurav
Research Scholar Icfai Institute for Management Teachers Hyderabad

OBJECTIVE OF THE PROJECT

The main objective of field survey during the project was to find out the market share of the LG and also calculate the display share approximately. To study the consumer purchase decisions for LG. To draw effective conclusions and suggestions. SCOPE OF THE PROJECT
This project gives us great exposure to the consumer durable market because it includes product knowledge and field survey job in which we visited the LG stores in the twin cities. The scope of my field work was limited only to the twin cities and Incidentally Diwali time was nearing during the survey period which exposed me to another aspect of product promotion. LG always insist the 50% display share of LG product because LG believes that JO DIKHTA HAI WO BIKTA HAI.

METHODOLOGY
There are two types of data viz.., primary and secondary. The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those, which have already been passed through statistical process. While doing my research I had taken the help of both primary as well as secondary data for analyzing the results.

PRIMARY DATA
I selected the Questionnaire method for my study. The methods opted for collection of primary data was personal interaction of each and every Dealer as well as Customers. Fieldwork was done taking the sampling frame as Twin cities only. The effective sample size was 50 consumers and 35 dealers . The questionnaire results were summated for each category and tabulated. SECONDARY DATA: Secondary means of data collection involved searching for related theory and cases in different magazines, journals and newspapers. An important source of secondary information was also provided by the literature given by the company, including its induction manual and other Pamphlets and Broachers.

LIMITATIONS:
Every research has certain limitations. In my study, also there were certain limitations, which I wasnt able to solve. My area of survey was limited only to the boundaries of the twin cities , which is very small for accurate analysis of the whole market. The survey was limited to a small sample size of 35 dealers and 50 consumers only from which accurate data cannot be obtained. Most of the times respondents were biased and having shortage of time. The respondents were very casual in their approach and were not interested.

CHAPTER II COMPANY PROFILE

History of the company: The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners.

1958-1969-GoldStar The Electronics Industry Dream

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1970-79 GoldStar symbol of The Technology 1980-88:- INTERNATIONALIZATION 1989-94 INOVATION

1995-98 GLOBAL LEADERS LG ELECTRONICS

1999-2003-DIGITAL MANAGEMENT 2004-2006 GREAT PEOPLE GREAT DESIGN

2007-THE PEOPLE COMPANY

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The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

Company overview:LG is one of the leading manufactures in home appliances in the world. ORGANISATIONAL STRUCTURE: LG electronics is largely divided in 22 units. On the domestic side, there are four business units, the marketing division, and seven functional divisions in the head office. The overseas network consists of seven regional headquarters and three functional areas (support, R&D, design). There are seven business sites (in Pyeongtaek, Cheongju, Changwon, Gumi) under the four business units. The overseas operations include 36 sales subsidiaries, 22 production subsidiaries, 8 product sales subsidiaries,5 service subsidiaries, and branch offices.

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EMPLOYEES: The number of employees at LG electronics stood at approximately 82,000as the end of 2007.Of the total,29000 were stationed in Korea and 53,000abrod ,meaning that over 60% of employee are working in overseas.The number of overseas employees should continue to increase in line with our localization strategy. Female employees comprises 16% of total domestic workforce(2% for manager and above) and the figure is on steady rise.The average age of entire workforce, male and female ,is 33.8 years, disabled people represent 0.8% of total workforce. CORE BUISNESS: LG electronics is composed of four business divisions ,which are Digital appliance, Digital display ,Digital media and Mobile communication.

Category Digital appliance

Main product Air conditioner, Refrigerator, washing machines ,Vacuum cleaners, Microwave ovens, Airconditioner compressors, Cool air compressors ,MGT motors TVs, Monitors, PDPs, Video tapes, DVDR Disc ,prism sheet, Green sheet. Optical storage, Audio, notebook PC,DVDPlayer/DVD-REC/combi, security, PDA, Telemetrics Mobile telecommunication, WLL handsets, Telecommunications systems, Transmitters & exchangers, key phone ,PBX,PCB

Digital display Digital Media

Mobile communication

CORPORATE GOVERNANCE: The launch of the holding company system laid the ground work for heightened transparency ,The LG group was able to put an end to the cross-shareholding among affiliates ,As the holding company was fully responsible for investments and LG electronics was able to concentrate on increasing corporate value and its own operations. In particular, LG electronics saw the installation of a system of professional management, while a board of directors focused system has been improving corporate transparency, in this way, LG electronics has set up the framework to strengthen business competitiveness at home and abroad, ultimately increasing shareholder and corporate value.

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LG- VISION
Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company.
Every home, everywhere with pride, passion and performance. We create the worlds best home appliances, which make life easier and more enjoyable for people. Our goal is a LG product in every home everywhere and a way to achieve global top 3 status till 2010.

LG-GROWTH STRATERGY
Fast Growth: Fast growth is the result of strategies designed to expand the market size and earnings quickly, in the process improving the growth rate in terms of monetary value rather than quantity. Fast Innovation: Fast innovation involves setting extremely high innovation goals and securing a competitive edge, aiming for a target of 30% more than what our competitors can do. Fast innovation also means 30% more sales and improvement in our market share, new product development and unveiling these 30% faster, technology development and establishment of corporate value three years ahead of competitors.

CORE CAPABILITIES
Product Leadership: Refers to the ability to develop creative, premium products through specialized new technologies. Market Leadership: Refers to the ability to achieve the "LG brand is No. 1" goal backed by its formidable market presence worldwide. People Leadership: Refers to talented people who perform excellently by internalizing and practicing innovations.

Corporate Culture
Though a company implements perfect management strategies and boasts of outstanding and talented people, it should have an appropriate corporate culture to unleash the power of these capabilities.
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No 'No'- Challenge: We foster a corporate culture whereby we suggest an alternative before saying "no" and aggressively work towards fulfilling our goal. 'We' not 'I': We pursue a corporate culture whereby we embrace a strong teamwork. Fun to work: We create a workplace where individuals' creativity and freedom are respected and working is made fun.

SLOGAN
"Life's Good" represents LG's determination to provide delightfully smart products that will make your life good. The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good" set in Charlotte sans typeface curved around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe.

THE SYMBOL
The symbol of LG is the face of future. The letter L and G in a circle symbolizes world, future, youth, humanity & technology. LG philosophy is based on humanity. It also represents LGs efforts to keep close relationship with our customers around the world. The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color. Red color represents our friendliness and gives a strong impression of LGs commitment to deliver the best. The circle symbolizes The Globe. The stylized image of a smiling face in the symbol conveys Friendliness and Approachability. The one eye on the symbol represents Goal-oriented, focused & Confident. The slogan of LG is Lifes Good. It expresses Brands Value, Promises, Benefits, Personality .

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THE RELATIONSHIP
LG Electronics chooses to promote harmony and build constructively on a labor-management 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
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15.TOSHIBA 16.BESTBUY And the number follows many more.. In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries. In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will work together to release, market, and offer LG mobile phones with Google services (search engine, map, email, and blogs).

The Internal Culture of LG:

LG practices four cultures Learning Culture Boundary less Environment A Carrier 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.

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LG INDIA
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility manufactured Color Televisions, Washing Machines, 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 shops and 38 are exclusive stores. Brand shops 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 Electronics India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today. LG Electronics is continually providing, superior technology products & value for money to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this year. 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 15 per cent in 2008. Moon Bum Shin, managing director of LG
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Electronics India has said that the company has earmarked 4.8 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 2007. As per Shin's estimate, the sales in 2008 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.

India challenges
The challenges faced by LG when entered in Indian market 1. Low brand awareness about LG in India. 2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India). 3. High import duty 4. Competition from local market players and other MNCs in consumer durable segment. 5. Price sensitiveness of the Indian consumer

Strategies adopted by the organization:

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

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Milestone of LG so far in India:

1.Most admired company in India by A&M magazine in 1998. 2.No.1consumer durable company by A&M magazine in 1999. 3.Techies award best flat screen monitor by computer world magazine in 2000. 4.Best employer by business today/Hewitt assts in 2001. 5.Entrepreneur of the year by Ernst &young in 2002. 6.Gold rating for environmental performance by CII in 2003. 7.Green technology gold award by Green tech foundation in 2003. 8.Award for IT innovation by business today in 2004. 9.Consumer durable retailer of the year by ICICI bank in 2005. 10. Indias most trusted brand 2007, by brand equity in 2007. 11. Brand for excellence 2008 award by VAR India in 2008. 12. Most admired MNC in India by 4Ps award in 2008. 13. Brand for Excellence 2008, by VAR India.

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market share of Lg
35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 market share of Lg

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CHAPTER-III
MARKET SHARE ANALYSIS OF LG ELECTRONICS.

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MARKET SHARE ANALYSIS

The major objective of my project is to find the market share of LG in year 2009 and 2010 so far. Market share is a calculation which shows what is the position of sales of company product in comparison with competitors product? To find the market share of company, the things that I had to find are:1. LG total sale in year 2009 to 2010. 2. Total sale of competitor product in period 2009-2010. The above data that are required to calculate the market share of LG, gathered by survey method. Total sale of product could found by dealer survey. So, through the questionnaire we survey all the dealers of Competitor Company LG in region. The main competitor of LG in Home Appliances industry is Whirlpool, Samsung& Videocon. We also find the dealers response to various aspects of L.G products, the company and its competitors through the dealer questionnaire.

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ANALYSIS

Q 1: - Dealers dealing with LG.

CATEGORY LAST 1 YEAR LAST 2 YEARS LAST 5 YEARS MORE THAN 5 YEARS

NO. OF . RESPONDENTS 8 5 7 15

PERCENTAGE OF RESPONDENTS 23% 14% 20% 43%

PERCENTAGE OF RESPONDENTS
LAST 1 YEAR LAST 2 YEARS LAST 5 YEARS MORE THAN 5 YEARS

23% 43% 14%

20%

Interpretation : - Maximum number of dealers having dealership of LG since more than 5 years. The percentage of those dealers is 43%. This shows the consistency and preference of LG in the electronics field.

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Q 2: - Perception about LG in dealers view

CATEGOTY

NO OF RESPONDENTS 22 14 0 0

PECENTAGE OF RESPONDEN TS 63 37 0 0

VERY GOOD GOOD AVERAGE BELOW AVERAGE

PERCENTAGE OF RESPONDENTS
VERY GOOD GOOD AVERAGE 0% 0% 39% 61% BELOW AVERAGE

Interpretation: - 63% dealers are having very good perception about LG product.

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Q3: -LG Product which is mostly liked by customers

CATEGORY WASHING MACHINE REFRIGERATOR AIR CONDITIONER LCD TELEVISION

NO OF RESPONDENTS 10 5 8 12

LG PRODUCTS
12 10 8 6 4 2 0 WASHING MACHINE REFRIGERATOR AIR CONDITIONER LCD TELEVISION

Interpretation: - 12 dealers say that customers like LG LCD Television in its product line. Refrigerator is least in customer attraction.

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Q 4: Most preferred brand by customers.

CATEGORY WHIRLPOOL SAMSUNG LG VIDEOCON DEALERS RESPONSE 6 9 13 7

DEALERS RESPONSE

20%

17% WHIRLPOOL SAMSUNG LG 26% VIDEOCON

37%

Interpretation: - As I surveyed 35 dealers , 13 of them said that LG is the most preferred brand. Whirlpool comes third , following Samsung in the brand awareness of customers in Gorakhpur city.

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Q 5: -Main competitor of LG

CATEGORY SAMSUNG WHIRLPOOL VIDEOCON OTHERS

NO OF RESPONDENTS 21 9 4 1

% OF RESPONDENTS 60% 26% 11% 3%

COMPETITORS OF LG
11% 3%

26% 60%

SAMSUNG WHIRLPOOL VIDEOCON OTHERS

Interpretation : In the survey we see that, the main competitor of LG is Sumsung. LG is the market leader so 60% dealer said that Samsung is the main competitor of LG.

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Q6: - Are the consumers aware about the exchange offer of LG?

NO OF % OF CATEGORY RESPONDENTS RESPONDENTS

YES

33

94%

NO

6%

PECENTAGE OF RESPONDENTS
% OF RESPONDENTS

94%

6% 33 2

Interpretation: - 96% Dealers says that customer wants to exchange there old products with LG products, they want to utilize this offer.

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Q 7: - IS the Company giving extra benefit to pull up its Market Share?

% OF RESPONDENTS

CATEGORY

NO OF RESPONDENTS

YES

35

100%

NO

0%

% OF RESPONDENTS
% OF RESPONDENTS

100%

0% YES NO

Interpretation: - All Dealers said that company is giving some extra benefit to pullup its Market share.

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Q 8:- Area of complaint by consumers to dealers.

NO OF RESPONDENTS 21 7 5 2 % OF RESPONDENTS 60% 20% 14% 6%

CATEGORY AFTER SALES SERVICE HIGH PRICE LOW QUALITY OTHERS

% OF RESPONDENTS
70% 60% 50% 40% 30% 20% 10% 0% AFTER SALES SERVICE HIGH PRICE LOW QUALITY OTHERS % OF RESPONDENTS

Interpretation: the dealers have mostly received complaints against the after sale service of LG . 60% of the dealers agree to it. According to the dealers LG does not respond well to the after sales service and hence, it is an area of concern for LG while achieving its aim of high market share.

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Q 9:- What do you do to promote sale of LG products?

CATEGORY EXCHANGE OFFER SELL ON DEALER PRICE

NO OF RESP. 21 14

% OF RESP. 60% 40%

% OF RESP.

SELL ON DEALER PRICE

EXCHANGE OFFER SELL ON DEALER PRICE

EXCHANGE OFFER

0%

10%

20%

30%

40%

50%

60%

70%

Interpretation: Out of 35, 60% Dealers says that they are giving exchange offer and 40% dealers sell their product on dealer price to promote sale of LG.

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Market share analysis

After surveying 35 dealers of LG and the main competitors of LG like Whirlpool, Samsung, and Videocon. I calculated the market share of LG in the twin cities is 30% approximately. My sample size is 35 dealers of LG and its competitor firm. The total sale of LG in period 20092010 which was given by dealers is 12000 unit approx.. From survey I got the different total sales figure of competitors in period 2009-2010: Total sale figure of Samsung is 10553units Total sale figure of Whirlpool is 10225 units Total sale figure of Videocon is 7222 units. To find the market share of LG in the Twin Cities for The time period 2009-2010 I used the method:_ Total sales in units by LG Market Share Of L.G = Total sale of LG + Total sale of Competitors * 100

12000 MARKET SHARE OF LG = 12000 + 28000 = 30% apprx

Therefore, market share of L.G is 30% Approx..

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CHAPTER-IV
CUSTOMER PURCHSE DECISION OF LG ELECTRONICS

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CUSTOMER PURCHSE DECISION

To study the consumer purchase decicsion for LG products and calculate the display share of LG products in various showrooms, retail stores, exhibitions etc. SAMPLE SIZE = 50 CUTOMERS 1. Which electronic good of LG do you own?

CATEGORY TELEVISION WASHING MACHINE REFRIGERATOR COMPUTER

NO OF RESPONDENTS 20 8 16 6

% OF RESPONDENTS 40% 16% 32% 12%

% OF RESPONDENTS
12% 40% TELEVISION 32% WASHING MACHINE REFRIGERATOR 16% COMPUTER

Interpretation: Maximum consumers prefer to purchase Televisions of L.G.

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2. How did you come to know about LG products?

CATEGORY T.V ADVERTISEMENT HOARDINGS MAGAZINES

NO OF RESP. 28 12 10

% OF RESP 56% 24% 20%

% OF RESP
T.V ADVERTISEMENT HOARDINGS MAGAZINES

20%

56% 24%

Interpretation: T.V advertisement is the most effective mode of advertisement as 56% of the consumers have responded to it.

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3. Why do you prefer LG to any other brand?

CATEGORY DURABILITY BRAND IMAGE VALUE FOR MONEY

NO OF RESP 16 24 10

% OF RESP 32% 48% 20%

% OF RESP

20%

32% DURABILITY BRAND IMAGE

48%

VALUE FOR MONEY

Interpretation: L.G has created a separate brand image for itself, 48% consumers prefer L.G because of its brand image.

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4. From where do you purchase your product?

CATEGORY EXHIBITION SHOWROOM RETAIL MALLS

NO OF RESP 8 24 18

% OF RESP 16% 48% 36%

% OF RESP
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% EXHIBITION SHOWROOM RETAIL MALLS EXHIBITION SHOWROOM RETAIL MALLS

Interpretation: Showrooms are the most preferred place of purchase by consumers, But exhibitions have an adverse effect on the selection process of the consumers.

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5. Whats your perception about LG?

CATEGORY MARKET LEADER MARKET FOLLOWER MARKET STRUGLER NONE OF THE ABOVE

NO OF RESP. 42 6 0 2

% OF RESP 84% 12% 0% 4%

% OF RESP
0% 12% 4%

MARKET LEADER MARKET FOLLOWER MARKET STRUGLER 84% NONE OF THE ABOVE

Interpretation: In the eyes of the costumer L.G is a market leader.

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6. . Did you avail installment scheme while purchasing?

CATEGORY YES NO

no of respondents 42 8

% of respondents 84% 16%

% of respondents
NO 16%

YES 84%

Interpretation: Most of the customers today prefer the installment scheme.

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7. How were you provided with after sales service?

CATEGORY VERY GOOD GOOD AVERAGE BAD

RESP 5 8 27 10

% OF RESP 10 16 54 20

% OF RESP
% OF RESP

54 16 GOOD AVERAGE 20

10 VERY GOOD

BAD

Interpretation: The after sales service of L.G has been average and needs an improvement in it to maintain good market share.

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8. How satisfied are you with the current LG product?

CATEGORY HAPPY SATISFIED DISSATISFIED

NO OF RESP. 27 14 9

% OF RESP. 54 28 18

% OF RESP.
60 50 40 30 20 10 0 % OF RESP.

HAPPY 54

SATISFIED 28

DISSATISFIED 18

9 .Any suggestions?

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CHAPTER- V FINDINGS SUGGESTIONS AND CONCLUSION

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KEY FINDINGS
1. Exhibitions do not help to generate so much sells but they should be conducted regularly. This helps in generating awareness regarding the product in customers which ultimately helps in sales. 2. By calculating the display share I found that in most of store LG has 50% display share almost all categories. 3.I also came to know while visiting the shops that there was big problem of after sale service. 4. In area the performance of LG is in better position but the competitor also hold closer margin. 5. There is high growth of sale in market due to booming in new technology and better service. 6.Advertisement 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. 7. Secondary supports play an important role in the customers mind and create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors. 8.Also majority of customers do not want any financing scheme for purchasing the durables. But many of them do avail these facilities when provided. 9. In survey we found that LG has captured maximum market share in every category. LG dominates CTV, LCD, and Refrigerator, and Washing machine, category.

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Suggestions and conclusion:

1. LG should improve its after sale service because its hits badly LGs market share in region. 2. More detailed customaries service is to be provided. 3. The training in shop demonstration should be given at frequent time interval and feed back should be considered positively. 4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person. 5. LG should try new dealer who have the potential. So they can target more market. 6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung. 7. Company should try to improve service. No doubt the company products have technically edge over competitors but in long run it may hamper the companys profit.

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Learning from Internship:

The Internship period gave me an excellent platform to learn and polish my skills. The objective to take internship was to obtain accurate and real data and knowledge and I did succeed as I was meeting all kinds of customers everyday from all over the city. Various tasks were given to me, all aim to study the mind plot of customers. I found from the task of interacting with customers that maximum numbers of respondents were in support of LG and were satisfied with LG products. I found that the users of LG products wre not much happy with the after sales service in the city and had complaints against it. The customers were highly satisfied with the quality and pricing of LG products. The duration of internship also helped me in understanding rapid changes in market and customer choices, preferences, perception etc. It also helped me to understand the product line of LG electronics, its product depth, width, breath and targets. I have also learned the practices of marketing in real. The marketing theory also defers from the practical of marketing. The market is following customer centric approach. By calculating the display share we found that in most of store LG has 50% display share almost all categories. There is high growth of sale in market due to booming in new technology and better service. LG should try new dealer who have the potential. So they can target more market share.

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BIBILOGRAPHY:
BOOKS Principles marketing AUTHOR of Philip Kotler PUBLICATION Vangonotes EDITION 12th

Consumer behaviour Peter olson and marketing strategy

Wharton Publishing

school 6th

Websites:
www.LG.com www.wikipedia.com www.google.com

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Annexure
Dealer questionnaireName of the dealer:Address:Q1 Since how long are you dealing in LG products? A. last 1 year C. last 5 years B. last 2 years D. more than 5 years

Q2 What is your perception about LG? A very good C average B good D below average

Q3Which LG product to Curomers Prefer more? A Washing Machine C Air conditioner B Refrigerator D LCD Television

Q4 Which brand do companies generally prefer? A Whirlpool C LG B Samsung D Videocon

Q5 Which company is the main competitor of LG? A Samsung C Videocon B Whirlpool D others

Q6 Are the customers Aware about the exchange offers of LG ? A. Yes B. No

Q7 Is the company giving extra benefits to pull up its market share? A. Yes B. No
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Q8 Which Area of LG do most of the customers register their complaints against? A After sales service C low quality B High price D others

Q9 What do you as a dealer , do to promote LG products? Ans:Q10 What was the sale(in units) of these companies product from your showroom in the previous year? A Samsung C videocon Bwhirlpool D LG

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Consumer Questionnaire:Name: Age: Gender male female

1. Which electronic good of LG do you own? A. Television C. Computer B. Washing machine D. Refrigerator

2. How did you cum to know about LG products? A. Advertisement B. Hoardings C. Magazines

3. Why do you prefer LG to any other brand? A. Durability B. Brand image C. Value for money

4. From where do you prefer to purchase your product? A. Exhibition B. Showroom C. Retail malls

5. What is your perception about LG? A. Market Leader C. Market Struggler B. Market Follower D. None of the above

6. Did you avail any installment scheme while purchasing? A . Yes B. No

7. How were you provided with after sales service? A. Very good C. Average B. Good D. Bad

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8. How satisfied are you with the current LG product? A. Happy 9. Any Suggestions? B. Satisfied C. Dissatisfied

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