A PROJECT REPORT ON MARKET ANALYSIS OF LG CONSUMER DURABLES & DEALER DEVELOPMENT

In the partial fulfillment of requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION (MBA) From Dr. Baba a!"b Amb"#$ar Mara%!&a#a U'()"r (%*+ A,ra'-aba#
Submitted By

Pra%a. P. I'-/"
Ro// No. 0123045

Under The Guidance of

M . Pra#'*a !a(/"" Sa&a(

MGM6 I' %(%,%" o7 Ma'a-"m"'% (IOM)+ N89+ CIDCO+ A,ra'-aba#.

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DECLARATION

I, the undersigned, hereby declare that the project report on T!" Mar$"% A'a/* ( o7 LG Co' ,m"r D,rab/" & D"a/"r D")/o.m"'% is submitted to the !G!"s Institute of !anagement, #I$#%, &urangabad"' It is my original wor( and the conclusions drawn there in are based on the data ) material collected by myself'

$ate* + ,lace* + &urangabad

,ratap ,' Ingle

ACKNO:LEDGMENT

The successful completion of this project report could not ha.e been possible without the help and guidance of many people' I would li(e to e/press my sincere and deepest sense of gratitude to all of them' I am deeply indebted to my project guide M . Pra#'*a !a(/"" Sa&a( for her .aluable guidance for my project' It gi.es me immense pleasure to ac(nowledge LG E/";%ro'(; I'#(a L%#' dealers, who ha.e been nice enough to gi.e me a chance to do my project and pro.iding me wonderful support throughout my project' I sincerely than( Dr. S.A.Som&a' !( (D(r";%or+ MGM IOM) whose direction and encouragement moti.ated me to steer the project wor( confidently and successfully'

CERTIFICATE

This is to certify that the project report on T!" Mar$"% A'a/* ( o7 LG Co' ,m"r D,rab/" & D"a/"r D")/o.m"'% submitted by Pra%a. I'-/" is the result of his original research wor( completed under our super.ision' To the best of our (nowledge ) belief the wor( embodied in this project report has not formed earlier the basis for the award of any degree or similar title of this for any other e/amining body'

!s' ,radnyashailee Sawai Pro<";% G,(#"

&cademics3

!r'Goutam Saha D"a'

2&cademics3

$r' G'&' 1i(am D(r";%or

24esearch )

$ate*+ ,lace*+

INDE=

SR. NO. 2. I1T4%$U#TI%1

SUBJECT

PAGE NO. 6

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INTRODUCTION
Before the liberaliBation of the Indian economy, only a few companies li(e K"/)('a%or+ Go#r"<+ A//&*'+ a'# Vo/%a were the major players in the consumer durables mar(et, accounting for no less than ?0@ of the mar(et'
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Then, after the liberaliBation, foreign players li(e LG+ So'*+ Sam ,'-+ :!(r/.oo/+ Da"&oo+ a'# A(&a came into the picture' Today, these players control the major share of the consumer durables mar(et' #onsumer durables mar(et is e/pected to grow at 1:+1CD in -::E+-:1:' It is growing .ery fast because of rise in li.ing standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the mar(et >ith the increase in income le.els, easy a.ailability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly' ,roducts li(e &a !('- ma;!('" + a(r ;o'#(%(o'"r + m(;ro&a)" o)"' + ;o/or %"/")( (o' (CTV ) are no longer considered lu/ury items' ;owe.er, there are still .ery few players in categories li(e .acuum cleaners, and dishwashers #onsumer durables sector is characteriBed by the emergence of !1#s, e/change offers, discounts, and intense competition' The mar(et share of !1#s in consumer durables sector is 6CD' !1#Fs major target is the growing middle class of India' !1#s offer superior technology to the #onsumers whereas the Indian companies compete on the basis of firm grasp of the local mar(et, their well+ac(nowledged brands, and hold o.er wide distribution networ(' ;owe.er, the penetration le.el of the consumer durables is still low in India'

G/oba/ O."ra%(o'
<G 8lectronics is playing an acti.e role in the world mar(et with its asserti.e global business policy' &s a result, <G 8lectronics controls 11: local subsidiaries in the world with around G-,::: e/ecuti.e and employees' <G Group 1' <G',hilips <#$ -' <G #hemical 0' <G Telecom 5' <G ,owercom C' <G Twins 6' <G $ac

B, ('"

ar"a a'# ma(' .ro#,;%

Mob(/" ;omm,'(;a%(o' 2a3 #$!& ;andsets, 2b3GS! ;andsets, 2c3 0G ;andsets,

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2d3 #ellular ,hones D(-(%a/ a../(a';" a3 &ir #onditioners, b3 4efrigerators, c3 !icrowa.e %.ens, d3 >ashing !achines, e3 9acuum #leaners, f3 ;ome 1et, g3 #ompressors for &ir #onditioners and 4efrigerators D(-(%a/ #( ./a* a3 ,lasma T9s, b3 <#$ T9s, c3 !icro $isplay ,anel T9s, d3 !onitors, e3 ,$, !odules, f3 %<8$ ,anels, g3 USB !emory, h3 ?lat ,anel #omputer !onitors D(-(%a/ m"#(a a3 ;ome Theater Systems, b3 $9$ 4ecorders, c3 Super !ulti $9$ 4ewriters, d3 #$H4>, e3 1oteboo( ,#s, f3 $es(top ,#s, g3 ,$&s, h3 ,$& ,hones, i3 !,0 ,layers, j3 1ew Iarao(e Systems, (3 #ar Infotainment

LG INDIA
<G 8lectronics India ,.t' <td', a wholly owned subsidiary of <G 8lectronics, South Iorea was " %ab/( !"# (' Ja',ar* 2??A after clearance from the ?oreign In.estment ,romotion Board 2?I,B3' <G set up a state+of+the art manufacturing facility at Gr"a%"r No(#a+ '"ar D"/!(+ (' 2??1, with an in.estment of 4s C:: #rores'
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<G corporate office is located at ,lot no'C1, Udyog 9ihar, Iasna 4oad, Greater 1oida, India' This facility manufactured #olor Tele.isions, >ashing !achines, &ir+#onditioners and !icrowa.e %.ens' FF#ompany is setting up a chain of e/clusi.e premium showrooms' <G plans to launch 6: premium Brand Shoppes by the end of the first quarter of this year' &t present, <G has a total of G0 <G stores across the country, of which 5C are shops and 0G are e/clusi.e stores' Brand shops will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products' <G Brand Shoppe goes beyond the concept of a normal e/clusi.e store by ha.ing a more interacti.e en.ironment and additional lifestyle orientation on display so that the customer can actually e/perience the <G products in his or her own home settings' <G 8lectronics India <td 2<G8I<3, consumer durables leader with -AD mar(et share, is planning a brand new image' To attract inspirational and young consumers across India, company will roll out a new mar(eting strategy' The e/ercise will cost the company 4s 06: crore' LG E/";%ro'(; India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today' <G 8lectronics is continually pro.iding, superior technology products ) .alue for money to more than C: la(h households in India' LGEIL ( ;"/"bra%('- %!" 22%! a''()"r ar* %!( *"ar' LG So7% I'#(a the inno.ation wing of <G 8lectronics in Bangalore is <G 8lectronicsF /ar-" % R&D ;"'%r" o,% (#" Kor"a' >e at <GSI focus on niche technology areas such as mobile application de.elopment, digital .ideo broadcast and biometrics software and support <G 8lectronics with our e/pertise' !oti.ated by a passion for technology, a strong wor( culture and loyalty to the organiBation, we are determined to see <G become one of the %o. %!r"" brands globally' ,rominent consumer electronic company, <G 8lectronics Inc' has said that it e/pects the sale of its products in India to up by 1C per cent in -::G' !oon Bum Shin, managing director of <G 8lectronics India has said that the company has earmar(ed 5'G billion rupees for in.estment purpose in India this year' The said money will be used to mar(et as well as manufacture new products' <G 8lectronics, which is originally a South Iorean #ompany with branch in India, informed that its sales of GS! mobile phones, color tele.isions, air conditioners and other household goods in the Indian mar(et was to the tune of EC billion rupees 2J-'5 billion3 in -::A' &s per ShinFs estimate, the sales in -::G would be around 11: billion rupees' In order to achie.e its target, Shin said <G 8lectronics will concentrate on catering to the high+end consumer
G

mar(et which will help boost sales this year' India churns out si/ 263 per cent of <G 8lectronics global re.enues of J5- billion' The Indian branch of <G e/ports to 5: countries'

C/a

(7(;a%(o' o7 ;o' ,m"r #,rab/"

";%or

#onsumer electronic include .cdKd.d, home theatre, music player, color tele.ision 2#T9s3, cameras, camcorders, portable audio, ;i+?i, etc >hite goods include dishwashers, air conditioners, heaters,washing machines, refrigerators, .acuum cleaners, (itchen appliances, non+ (itchen appliances, microwa.es, built+in appliances, Tumble dryer, personal care product etc' !oulded luggage include plastics #loc(s and watches !obile phones

OBJECTIVES OF TBE PROJECT

Pr(mar* ob<";%()" The main objecti.e of filed sur.ey during the project was to find out the mar(et share of the <G and also calculate the display share'
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?ind out the positional dealer who can sale the <G product in large .olume' The main objecti.e of research was to identify potential dealer and de.elopment these dealer' So <G can ma(e them their direct dealer' This will ease the dependence on the some big dealer li(e !aharashtra and !aha.eer electronics' ?ind out the problem faced by the dealer in sales and the distribution'

S";o'#ar* ob<";%()" The %bjecti.e was to find out that how far the e/hibitions are helpful in branding, >hile purchasing the consumer durables which parameter is most important for the consumerL $o the consumers prefer the financial facility for buying consumer durableL ;ow frequently consumers change the consumer durableL To enhances the (nowledge of consumer durable mar(et' To increases the (nowledge consumer durable product of <G' To enhances the (nowledge about the mar(eting and branding 1 acti.ity'

SCOPE OF TBE PROJECT

This project gi.es us great e/posure to the consumer durable mar(et because it includes product (nowledge and field sur.ey job in which we .isited the <G stores in ,une' Incidentally Gudipada.a time was nearing during our sur.ey period which e/posed us to another aspect of product promotion' <G always insist the C:D display share of <G product because <G belie.es that CJO DIKBTA BAI :O BIKTA BAID'
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In term of purchasing power parity 2,,,3, India is the 5th largest economy in the world and o.erta(e 7apan in the near future become the 0rd largest' Indian consumer durable mar(et is e/pected to reach J5:: billion by on -:1: India has the youngest population amongst the major countries' There are lot of people in the different income categories nearly the two third population is below the age of 0C and nearly C:D is below -C' There are C6 million people in middle class, who are earning usJ5,5::+USJ-1,G:: a year' &nd there are 6 million rich household in India' The upper+middle and high+income household in urban areas are e/pected to grew to 0G'- million in -::A as against 15'6 million in -:::'

RESEARCB METBODOLOGY
4esearch methodology is considered as the ner.e of the project' >ithout a proper well+organiBed research plan, it is impossible to complete the project and reach to any conclusion' The project was based on the sur.ey plan' The main objecti.e of sur.ey was to collect appropriate data, which wor( as a base for drawing conclusion and getting result' Therefore, research methodology is the way to systematically sol.e the research problem' 4esearch methodology not only tal(s of the methods but also logic behind the methods used in the conte/t of a research study and it e/plains why a particular method has been used in the preference of the other methods
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R" "ar;! #" (-' 4esearch design is important primarily because of the increased comple/ity in the mar(et as well as mar(eting approaches a.ailable to the researchers' In fact, it is the (ey to the e.olution of successful mar(eting strategies and programmers' It is an important tool to study buyer"s beha.ior, consumption pattern, brand loyalty, and focus mar(et changes' & research design specifies the methods and procedures for conducting a particular study' &ccording to Ierlinger, M4esearch $esign is a plan, conceptual structure, and strategy of in.estigation concei.ed as to obtain answers to research questions and to control .ariance'

Da%a ;o//";%(o' m"%!o#

&fter the research problem, we ha.e to identify and select which type of data is to research' &t this stageN we ha.e to organiBe a field sur.ey to collect the data' %ne of the important tools for conducting mar(et research is the a.ailability of necessary and useful data' Pr(mar* #a%aE ?or primary data collection, we ha.e to plan the following four important aspects' Sampling 4esearch Instrument Secondary $ata + The #ompany"s profile, journals and .arious literature studies are important sources of secondary data' $ata analysis and interpretation

LIMITATIONS

8.ery study has certain limitations' In our study, also there were certain limitations, which I could not able to sol.e' The research was conducted in a .ery small area'
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%ur research wor( period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer' This was biggest drawbac( of my study' Time factor was also important for us' >e had limited time for the research, for which a full+fledged report was insufficient for me' The customer filled the questionnaire mostly in careless manner, so it was difficult to ma(e them hold for time' >e had only found the upper+middle class family to fill up the questionnaire, but generally, an a.erage middle class family was required for the study' The sample siBe is also .ery small which represent my research on consumer beha.ior

REVIE:

OF LITERATURE

The increasing spread and domination of international brands has seemed ine.itable for at least the last 0: years' In.estors ha.e historically been e/tremely confident about the prospects for branded goods businesses, particularly those owning international brands li(e <G ' &nd the multinational branded goods owners themsel.es ha.e shared that confidence' >ith their economies of scale, massi.e spending power and highly de.eloped management structures, these behemoths ha.e seemed in.incible' !ultinationals, in pursuit of the global brand, ha.e rationaliBed irrational name .ariants OIn the last few months, <G has changed the name of its
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leading cleaning brand in the Iorea but local and regional brands still remain strong' The multi+layered multinationals simply don"t ha.e the agility and speed to respond to local needs in e.ery country of the world in the way that locally grounded brands do' 1imbler, smaller competitors, who are solely focused on their home mar(ets, can adapt more quic(ly' 1one of this has gone unnoticed by global brand owners' It could be argued that the downfall of all local brands is that they ha.e ambitions to be global brands' It is clear that the fortunes of both global and local brands will wa/ and wane with new fashions, new go.ernments and new technology esp' in the case of multinationals li(e ' ,erhaps, though, the question we really should be as(ing is what global and local mean in the new economy' !ost .irtual Internet brands are effecti.ely transnational' The word global" in our mar(eting .ocabularies for some time now and that .ery coining seems to recogniBe that global and local brands need each other' In the end people want both global and local brands O brands that ma(e them feel part of wider international community and brands that root them in their home culture as done by <G worldwide' TERMS AND CONCEPTS USEDE G/oba/ Mar$"%('- S%ra%"-*E ;ow companies position themsel.es in different companies and how customers percei.e the .alue and authenticity of their brand name and products is majorly what a mar(eting strategy focuses on Global !ar(eting strategies become increasingly important within a modern global company' 1o firm competing regionally, or world+wide, can afford to pursue mar(eting strategies that are based solely on national characteristics or potentials' To succeed in these situations, the mar(eting effort must consider all global aspects of the company"s mar(eting effort and its competitors' #ompanies must de.elop characteristics that, compared with national, regional and global competitors, generate ad.antages in the mar(et place' !ar(eting resources must also be effecti.ely allocated in line with strategic objecti.es' G/oba/ S,;;" Fa;%or E

& company"s many attributes form to ma(e the company a major success' These major strategies and core competencies of companies ma(e up its global success factors' G/oba/ A#)"r%( ('-E
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Global ad.ertising depends on the culture, .alue and beliefs of the coutry where the company wants to place itself' ?or e/ample in ,a(istan the ad.ertisements are way different than they would be in china or in &ustralia or in any other country for that matter' M"#(,m 7or A#)"r%( ('&nother major part of global branding is mediums for ad.ertising' It depends a lot on technological potential of countries where the company is doing its operations' 8lectronic+media, bill boards, print media and many more mediums are used for this purpose' Bra'# a&ar"'" Brand awareness is a proof of company"s success' It relates to how customers (now about the brand and respond to it' <ater in this report a brand awareness sur.ey has been carried out to ma(e the concept clearer' Com."%(%or a'a/* ( Its is .ery important for companies to carry out this analysis to (now their position in the mar(et and to analyBe how they can ma(e it better for themsel.es to impro.e on their product and mange to ha.e a competiti.e edge o.er their competitors

PROFILE OF TBE COMPANY

MISSION

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T!" m( (o' o7 LG ( %o .ro)(#" %!" ;, %om"r &(%! ,%mo % a%( 7a;%(o' %!ro,-! /"a#"r !(.. T!" 7,'#am"'%a/ .o/(;* o7 #")"/o.m"'% ( %o ";,r" .ro#,;% /"a#"r !(. %!a% %!" C, %om"r ma* !a)" %!" ,%mo % a%( 7a;%(o'. VISION G/oba/ To. 5 b* 4020 G/oba/ To. 5 E/";%ro'(;FT"/";omm,'(;a%(o' ;om.a'*

GRO:TB STRATEGY CFa % (''o)a%(o'+ Fa % -ro&%!D

CORE COMPETENCY CPro#,;% /"a#"r !(.+ Mar$"% /"a#"r !(.+ P"o./" /"a#"r !(.D

CORPORATE CULTURE No "G;, "+ C&"D 'o% CID+ F,' &or$./a;" SLOGAN HL(7"I Goo#H r".r" "'% LGI #"%"rm('a%(o' %o .ro)(#" #"/(-!%7,//* mar% .ro#,;% %!a% &(// ma$" *o,r /(7" -oo#.

TBE SYMBOL

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The symbol of <G is the face of future' The letter M<P and MGP in a circle symboliBes world, future, youth, humanity ) technology' <G philosophy is based on humanity' It also represents <G"s efforts to (eep close relationship with our customers around the world' The symbol consists of two elements' 1' The logo in <G gray -' The styliBed image of human face in the unique <G red color' R"# ;o/or represents our friendliness and gi.es a strong impression of <G"s commitment to deli.er the best' The circle symboliBes T!" G/ob"' The styliBed image of a smiling face in the symbol con.eys CFr("'#/('" a'# A..roa;!ab(/(%*P' The one eye on the symbol represents CGoa/8or("'%"#+ Fo;, "# & Co'7(#"'%P' The slogan of <G is CL(7"6 Goo#P' It e/pressesM Bra'#6 Prom( " + B"'"7(% , P"r o'a/(%* . Va/," +

B( %or* o7 %!" ;om.a'*

The company was originally established in 1ECG as Gold Star, producing radios, T9s, refrigerators, washing machines, and air conditioners'

1A

1ECG+6E 1EA:+AE 1EG:+GG 1EGE+E5 1EEC+EG 1EEE+:0 -::5+:6 -::A

+ GoldStar The 8lectronics Industry $ream + GoldStar symbol of The Technolgoy

+ I1T841&TI%1&<IQ&TI%1 + I1%9&TI%1 + G<%B&< <8&$84S <G 8<8#T4%1I#S + $IGIT&< !&1&G8!81T + G48&T ,8%,<8 G48&T $8SIG1 + T;8 ,8%,<8 #%!,&1=

The <G Group was a merger of two Kor"a' companies, L,;$* and Go/# S%ar+ from which the abbre.iation of LG was deri.ed' The current HL(7"I -oo#H slogan is a bac(ronym' Before the corporate 1ame change to <G, !o, "!o/# products were sold under the Brand name of L,;$*, while "/";%ro'(; .ro#,;% were sold under the brand name of Go/# S%ar' The Gold Star brand is still percei.ed as a discount brand' In 1EEC, Gold Star was renamed <G 8lectronics, and acquired Qenith 8lectronics of the United States'
1G

LG BRAND IDENTITY The brand of <G is delightfully smart' <G stri.es to enhance the customer"s life and lifestyle with intelligent features, instituti.e functionality and e/ceptional performance' T!" bra'# ./a%7orm The <G brand is composed of four basic elements O 1' 9alue -' ,romise 0' Benefits 5' ,ersonality T!" Bra'# ;or" Va/," %!a% '")"r ;!a'-" . a' Trust, b' Inno.ation, c' ,eople d' ,assion The benefits that are consistently deli.ered to the customer includes a3 4eliable products b3 Simple design c3 8ase of use d3 8/traordinary 8/perience ,ersonality describes the human characteristic that are e/pressed to the customer throughTrustworthy, #onsiderate,ractical, ?riendly

T!" I'%"r'a/ C,/%,r" o7 LG

<G practices four cultures 1' <earning #ulture -' Boundary less 8n.ironment 0' & #arrier 5' Growth

1E

&ccording to <G, the <earning #ulture continuously helps the employee to learn more and more to de.elop the habit of continuous learning' Bo,'#ar* /" E')(ro'm"'% means that there is no difference between the le.els of employees' There is transparency between the wor( and mutual understanding between all the employees' & carrier is highly growing in <G and one who is the employee can de.elop their carrier largely' & new comer will feel fully comfortable in the company and for a new comer the company is .ery helpful in the o.erall growth of personality' Growth in <G is .ery high for those who are in the company and for those who want to join in <G' The company is growing with fast inno.ation and the B<U8 %cean strategy is one of the e/amples of growth'

Pro#,;% L"a#"r !(.

>e are focusing on si/ de.elopment areas to become the product leader' 1' 1ew !achine -' 4eliability 0' #on.entional Installation 5' 8n.ironment ?riendly ,roduct C' <ow 1oise ) 9ibration 6' 8nergy Sa.in

J,a/(%* I''o)a%(o'
The policy of quality assurance is to pro.ide customers with utmost satisfaction by supplying Bero defects'

-:

<G proceeds in a hierarchal manner' It is named as CLG :AYD. ?rom top to bottom* 1o'1 <G O is the 9ISI%1

MJeong-DO Management is <G"s unique application to ethics' <G will

succeed through fair management practices and constantly de.eloping our business s(ill' &3 ;onest with our customer b3 ,ro.iding great .alues to customer through constant inno.ation ) and de.elopment' c3 8qual opportunities d3 8qual Treatment !anagement ,rinciple + #reating .alue for customer

Co#" o7 ;o'#,;% o7 LG
1' 4esponsibility and obligations to customers * 4espect for #ustomers #reating 9alue ,ro.iding 9alue
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-' ?air competition ,ursuit of ?ree #ompetition #ompliance with <aws and 4egulations 0' ?air Transaction * 8qual %pportunity ?air Transaction ,rocedure Support and &id for Business ,artners 5' Basic 8thics for 8mployees Basic 8thics #ompletion of $uty Self $e.elopment ?airness in ,erformance &.oidance of conflict with company interest

C' #orporate 4esponsibilities to employees 4espect for human dignity ?air Treatment ,romoting #reati.ity 6' 4esponsibilities to society and country 4ational Business $e.elopment ,rotection of stoc( holder interest #ontribution to social de.elopment 8n.ironmental #onser.ation

DISTRIBUTION AND MARKETING

The company has number of dealers and warehouses' They ha.e <G e/clusi.e shops' ?or the mar(eting of the products a number of acti.ities are followed 1' 8/hibitions are conducted from time to time' -' Society and college acti.ities are conducted'

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0' ;oarding, ,osters, banners are used so as to grab the attention of the costumers' 5' $ay to day ad.ertisement in leading newspaper' C' $iscount at festi.al time' 6' ?or dealer relationship they arrange dealer meeting at se.eral time in the year A' <G di.ide dealer in gold sil.er etc' category to (now the performance of the dealers' G' They ha.e their sales persons at .arious sub dealer store and at mordent trade store for particularly for the promotion of the <G product' E' <G also uses the radio ?! for the promotion acti.ities' 1:' ,ro.ide capon and scratch card for festi.e season'

I''o)a%()" mar$"%('- %ra%"-*

<aunch new technologies in consumer electronic and home appliances' <G was the first brand to enter in cric(et in big way a way, by sponsoring the 1EEE world cup followed it up in -::0 as well' <G brought in four captains of the Indian cric(et team to endorse its products' <G in.ested more then USJ G million on ad.ertising and mar(eting in this sport' <G has differentiated its product using technology and health benefits' #T9 has CGo/#"' "*" %";!'o/o-*D &ir conditioner has CB"a/%! a(r * %"mD and microwa.e o.ens ha.e the CB"a/%! &a)" * %"mD. Lo;a/ a'# "77(;("'% ma',7a;%,r('- %o r"#,;" %!" ;o % To o.ercome high import duties <G manufactures T9 refrigerator in India at manufacturing facility at 1oida and ' <G8I had already commissioned contract manufacturing at !ohali Iol(ata and Bhopal for #T9s' This has helped <G8I to reduce cost' <G8I implementing the M$igital manufacturing systemP 2$!S3 as the cost cutting inno.ation this system is follow+up to the si/ sigma e/ercise <G8I had initiate earlier' R"-(o'a/ ;!a''"/ a'# &(#" #( %r(b,%(o' '"%&or$ 1' <G has adopted the regional distribution channel in India' &ll the distributers wor( directly with the company' This has resulted in quic(er rotation of the stoc( and better penetration into B, #, $, class mar(et' -' <G also follows the stoc( rotation policy rather then dumping stoc( on channel partners'
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Pro#,;% /o;a/(Ka%(o' 1' ,roduct localiBation is the (ey strategy used by the <G -' <G came out with ;indi and regional language menus on its T9s' 0' Introduced the low+priced M#ineplusP and MSampoomaP for the rural mar(et' 5' <G was the first brand to introduce gaming in T9s in continuations of its association with cric(et <G introduce cric(et game in #T9s

TBE LOGISTICS
<ogistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources li(e products, ser.ices, and people, from the source of production to the mar(etplace' It is difficult to accomplish any mar(eting or manufacturing without logistical support' It in.ol.es the integration of information, transportation, in.entory, warehousing, material handling, and pac(aging' The operating responsibility of logistics is the geographical repositioning of raw materials, wor( in process, and finished in.entories where required at the lowest cost possible' <ogistics !anagement is that part of the supply chain, which plans, implements and controls the efficient, effecti.e forward and re.erse flow and storage of goods, ser.ices and related information between the point of origin and the point of consumption in order to meet customersF requirements' C4"s of <ogistic followed by <G* 4ight Time 4ight ,lace 4ight #ondition 4ight #ost 4ight ;andling The <G ?actory is located at 1%I$& ) ' There are three types of >arehouse+ !other >arehouse Branch >arehouse Spare part warehouse The mother warehouse is that where the products from the factory are (ept and from that warehouse, the products are sent to the branch warehouse' & warehouse is a commercial building for storage of goods' >arehouses are used by manufacturers, importers, e/porters, wholesalers, transport businesses, customs, etc' They are usually large plain buildings in industrial areas of cities and towns' They come equipped with loading doc(s to load
-5

and unload truc(sN or sometimes are loaded directly from railways, airports, or seaports' They also often ha.e cranes and for(lifts for mo.ing goods, which are usually placed on IS% standard pallets loaded into pallet rac(s'

In warehouse, the products are pinup with 0+color paper to get the (nowledge about the deli.ery' 1' 4ed #ard O To stop the product going into mar(et, -' Green card O To allow the product for deli.ery in mar(et, 0' =ellow #ard O &fter the product labeled with green, allow this to mo.e in mar(et

DEALER MANAGEMENT
!apping of regional dealers' They ha.e been di.ided into three categories on the basis of their turno.er and the selling capacity' 2 4 5 1+ Includes the modern trade and they ha.e direct billing from the branch office' They ha.e high turno.er and the company depends hea.ily on them -+ Includes the distributors' They ha.e direct billing from the branch office' Their turno.er is also high' 0+ Includes the sub dealers' They ha.e direct billing from distributors or from the branch office' Their turno.er is not so high, but there are few sub dealers whose potential is quite high' &ccording to sales the branch has designated as gold and sil.er sub dealers'

CRITICAL ANALYSIS
I ha.e made questionnaire 1o' of questions in questionnaires for customer* :A 1o' of question related to <G product* :0 1o' of people met during the research* -::
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1o' of respondents during the research* C: Sam./" ,'(% ,rofessionals, Business man, 8mployees, ;ouse wife, >or(ing women, Students

J2' ;a.e you purchased any consumer durable during 8/hibitionsL =es 1o

I'7"r"';" 1' 6C D of #ustomers ha.e not purchased any consumer durable from e/hibitions' -' %nly 0C D people ha.e purchased' 0' It shows that consumers are coming in the e/hibition for (nowledge of product and also they want to (now that weather there is actual price difference in e/hibition and shop or not' 5' #onsumers also want to compare to the different brand which are a.ailable in the e/hibition' C' So e/hibitions are more useful to increases brand awareness' 6' ,eople are less interested to purchase product from the e/hibition' J.4 >hile purchasing consumer durable which parameter influences youL ,rice ,roduct feature Brand Ser.ice $urability

-6

I'7"r"';" 1' 0:D of customer gi.es importance to price' So it shows that Indian consumers are .ery price sensiti.e' They gi.e more importance to price o.er the brand' -' -6D gi.e importance to brand' So price and Brand matter a lots for the costumers' &nd they are also want best brand in best price' 0' 1ED to product feature Ser.ice 16D and durability ED Ser.ice is also a big factor for the customer they are less interested in the durability'

J5. ?rom where you prefer buying consumer durables L 8/hibitions #o'shoppee Showroom

I'7"r"';"E 1' & majority of customers prefer to buy from showrooms' 9ery less proposition of customers buys from 8/hibitions' -' 5AD customers are prefer to by from the showrooms because the showrooms are more con.enient to customers they also thin( that these shops gi.e more discounts'

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0' ,eople are less interested to buy from the e/hibition they only .isit the e/hibition for price quotation of the product and the comparison of the product'

J.>'=ou prefer to buy from the same as you ha.e mentioned in @'0 because of following reasons &ttracti.e ,rice Ser.ice $emonstrations %ffers

I'7"r"';" 1' #ustomers buy from showrooms because of the ser.ice and con.enience' These are two main factors' -' #ustomers are preferred to buy from the showroom because of they thin( that these con.enient store may pro.ide good after sell ser.ice' 0' #ustomer also thin(s that there is more chance to bargain and they can get more discounts in these showrooms' 5' ,rice also a factor that attract the customer in these showrooms'

J.3.>hich consumer durable you ha.e and of which brandL #T9 <#$ ,<&S!& 48? >! !>
-G

&#

I'7"r"';" In #T9 section ma/imum customers ha.e %nida, in <#$ Sony is the leader, In plasma B,< is the leader, In 4ef <G is the leader, !> <G is the leader' In >! there are companies and in &# also' J.9' ;ow frequently you change your consumer durablesL 1+0 years 0+C years C+1: years !ore than 1: years

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I'7"r"';" 1' #ustomers prefer to change consumer durables within C+1: years' In India people do not change consumer durable frequently' -' -0D customers do not change their consumer durable within 1: year' 0' It represent that Indian consumer do not prefer to change their consumer durable frequently'

J.A'$o you prefer any financing scheme to purchase consumer durablesL =es 1o

I'7"r"';" !ajority of customers do not prefer any financial scheme

SUMMARY
Indian #onsumer durables mar(et used to be dominated by few domestic players li(e Godrej 9oltas &llwyn and Iel.inator' But post liberaliBation many foreign companies ha.e entered into Indian mar(et dethroning the Indian players and dominating Indian mar(et the major categories being CTV+ R"7r(-"ra%or + A(r Co'#(%(o'"r and :a !('- Ma;!('" ' India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India' <G, S&!SU1G
0:

the two Iorean companies ha.e been maintaining the lead in the mar(et with <G being leader in almost all the categories' The rural mar(et is growing faster than the urban mar(et, although the penetration le.el is much lower 'The #T9 segment is e/pected to the largest contributing segment to the o.erall growth of the industry' The rising income le.els double+income families and consumer awareness are the main growth dri.ers of the industries' #onsumer durables major <G 8lectronics India ,.t <td will in.est nearly 4s C:: crore in India this year in research and de.elopment, brand+ building and other mar(eting initiati.es' The company, ha.ing a turno.er of 4s E,C:: crore and mar(et share of -6 percent, is in.esting 4s 06: crore on brand+building and other mar(eting initiati.es and around 4s 15: crore on research and de.elopment, besides launching new platforms in information technology and related areas, <G"s inno.ati.e -11 campaign" to pro.ide quality after+sales ser.ice, will also be e/panded from the e/isting -- to 5: cities by ne/t month, the campaign, for which IT infrastructure has been set up, includes the company"s response to customer complaint within two hours' The fi/ing time for complaints .aries from one hour to a ma/imum of -5 hours' TODAY #onsumer durables sector is characteriBed by the emergence of !1#s, e/change offers, discounts, and intense competition' The mar(et share of !1#s in consumer durables sector is 6CD' !1#Fs major target is the growing middle class of India' !1#s offer superior technology to the <G, S&!SU1G the two Iorean companies has been maintaining the lead in the industries with <G being leader in almost all the categories' The company, ha.ing a turno.er of 4s E,C:: crore and mar(et share of -6 per cent, is in.esting 4s 06: crore on brand+building and other mar(eting initiati.es and around 4s 15: crore on research and de.elopment, besides launching new platforms in information technology and related areas'

DEALER SURVEY FINDINGS

By calculating the display share we found that in most of store <G has C:D display share almost all categories'

01

By the actual monthly sale of particular store we came to (now the capacity of the store and how much product can they sale' It helps us to (now that weather dealer is capable of being a direct dealerof <G or not and it also helps to find out the new dealer who are capableof being the dealer of <G' >e also came to (now while .isiting the shops that there was big problem of after sale ser.ice' !any dealers were facing the problem of after sale ser.ice because there is no follow up calls from <G' $emo calls also not done properly' The top competitor of <G product in is S&!SU1G' In area the performance of <G is in better position but the competitor also hold closer margin' There is high growth of sale in mar(et due to booming in new technology and better ser.ice' >ord of mouth plays a .ital role in awareness among customer' This is one factor, which can play a good role in promotion of products as well as demonstration gi.en by the shop(eeper also plays a .ital role for customer'

RECOMMENDATIONS AND SUGGESTIONS

<G should impro.e it"s after sale ser.ice because its hits badly <Gs mar(et share in region'
0-

!ore detailed customaries ser.ice is to be pro.ided' The training to in shop demonstration should be gi.en at frequent time inter.al and feed bac( should be considered positi.ely' The company should loo( into the matter of person hiring for in shop demonstration' & big <G showroom should ha.e at least - such (ind of person' <G should try new dealer who ha.e the potential' So they can target more mar(et' &s there is a bottle nec( competition between Samsung and <G, it is necessary to ta(e measure steps to o.ercome the area of downfall in <G with respect to Samsung' The mar(eting managers should ma(e better relations with dealers and reputation of the company' #ustomer considers quality as their first preference, so the company should gi.e more stress on this' The switching of customer from <G product to other brand is due to the bed after sell ser.ice in shop' The product is well aware and it is on top of mind of customer' So company should always impro.e ser.ices and update their technology'

CUSTOMER SURVEY FINDINGS

Secondary supports play an important role in the customers mind and create awareness among the customers' The secondary support includes $emonstration, 8/hibition ) 8.en Sponsors'
00

?rom the sur.ey it was found out that the majority of customers don"t buy consumer durables from e/hibitions' They just .isit the e/hibitions to see the co' latest model' They want to buy from the showrooms or from co' showrooms' ?or them ser.ice is important 'Beside con.enience and other factors ser.ice is (ey factor' &lso majority of customers do not want any financing scheme for purchasing the durables' There was hea.y rush on wee(ends so large numbers of IS$"s were appointed that day' &lso the li.e demo calls helps in selling' 8/change offers also generate sale' #ustomers are also now .ery choosy in buying the product and it is important for the company to ma(e loyal customer of their brand' In sur.ey we found that <G has captured ma/imum mar(et share in e.ery category' <G dominates #T9, <#$, and 4efrigerator, and >ashing machine, category' <G and Samsung ha.e bottle nec( competition in T9 and 48?' category' The product is well aware and it is on top of mind of customer' #ustomers are also now .ery choosy in buying the product and it is important for the company to ma(e loyal customer of their brand'

RECOMMENDATIONS AND SUGGESTIONS

8/hibitions 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'

05

&lso it is helps in ad.ertising for the new products' <i(e in this e/hibition new <#$ S#&4<8T was ad.ertised' #ompany should always focus on ser.ice' $isplay share should be increased where there is less than C:D as <G also belie.es that M7% $II;T& ;&I >% BIIT& ;&IP' #ompany should try to impro.e ser.ice' 1o doubt the company products ha.e technically edge o.er competitors but in long run it may hamper the company"s profit' #ompany should concentrate more on its major dri.ers <#$, IT, and GS!' Branding and promotions should be done effecti.ely as it creates a long lasting image in the mind of customers' #ompany should also cater to the needs of sub dealers as some of the sub dealers ha.e potential of high sales'

BIBLIOGRAPBY
Business world Business today <G magaBine 8conomics times 1ews paper Times of India
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:EB SOURCES

www'lgindia'com www'google'com www'wi(ipedia'com

CONSUMER SURVEY JUESTIONNAIRE

@1' ;a.e you purchased any consumer durable during 8/hibitionsL =es 1o @'->hile purchasing consumer durable which parameter influences youL ,rice ,roduct feature Brand Ser.ice $urability @0' ?rom where you prefer buying consumer durables 8/hibitions #o'shoppee
06

 Showroom @'5'=ou prefer to buy from the same as you ha.e mentioned in @'0 because of following reasons &ttracti.e ,rice Ser.ice $emonstrations %ffers #on.enience @'C'>hich consumer durable you ha.e and of which brandL #T9 +++++++++++++++++++ <#$ +++++++++++++++++++ ,<&S!& +++++++++++++++++++ 48? +++++++++++++++++++ >! +++++++++++++++++++ !> +++++++++++++++++++ &# +++++++++++++++++++ @'6' ;ow frequently you change your consumer durablesL 1+0 years 0+C years C+1: years !ore than 1: years @'A'$o you prefer any financing scheme to purchase consumer durablesL =es 1o

0A