Professional Documents
Culture Documents
ON
Submitted To:
to:
Mr. Rajeev Bhandari
IIMS (BAREILLY)
Submitted
Neha Yadav
BBA-6 th sem.
Roll No.10108127
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CONTENTS
Preface
Acknowledgement
Objectives of study
Introduction
Company profile
Literature Review
Research Methodology
Data collection
Finding
Limitation of the study
Recommendations
Conclusion
Bibliography
Questionnaire
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INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the
consumer durables market, accounting for no less than 90% of the market.
Then, after the liberalization, foreign players like LG TV, Sony, Samsung,
Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players
control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008.
It is growing very fast because of rise in living standards, easy access to
consumer finance, and wide range of choice, as many foreign players are
entering in the market
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for
consumer durables has increased significantly. Products like washing
machines, air conditioners, microwave ovens, color televisions (CTVs) are
no longer considered luxury items. However, there are still very few players
in categories like vacuum cleaners, and dishwashers
Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of
MNCs in consumer durables sector is 65%. MNC's major target is the
growing middle class of India. MNCs offer superior technology to the
Consumers whereas the Indian companies compete on the basis of firm grasp
of the local market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration level of the consumer
durables is still low in India.
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Scope:1. In term of purchasing power parity (ppp), India is the 4th largest
economy in the world and overtake Japan in the near future become the
3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on
2010
3. India has the youngest population amongst the major countries. There are
lot of people in the different income categories nearly the two third
population is below the age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year. And there are 6 million rich household in India.
5.
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)
)
)
KOREA
TCL
HAIER
)
)
CHINA
PHILIPS
HOLLAND
PANASONIC
SHARP
HITACHI
SANSUI
AKAI
AIWA
WHIRLPOOL
ELECTROLUX
NATIONAL
REGIONAL
ONIDA
LG CROWN
BPL
GODREJ
VOLTAS
IFB
BUSH
SALORA
T-SERIES
WESTON
BELTAK
OSKAR
)
)
)
)
)
JAPAN
MNCs, exchange offers, discounts, and intense competition. The market share
of MNCs in consumer durables sector is 65%. MNC's major target is the
growing middle class of India. MNCs offer superior technology to the
LG TV, SAMSUNG the two Korean companies has been maintaining the
lead in the industries with LG TV being leader in almost all the categories.
The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent,
is investing Rs 360 Cr on brand-building and other marketing initiatives and
around Rs 140 Cr on research and development, besides launching new
platforms in information technology and related areas,
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COMPANY PROFILE
The LG TV Electronics Life's Good signature consists of the LG TV
logo, seal, and the slogan, "Life's Good" set in Charlotte sans typeface
curved around the LG
THE SYMBOL:
The symbol of LG TV is the face of future. The letter L and G in a circle
symbolizes world, future, youth, humanity & technology.LG TV philosophy
is based on humanity. It also represents LG
Red color represents our friendliness and gives a strong impression of LG TVs
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.
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The slogan of LG
THE PARTNERSHIP
LG TV 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 TV Electronics as it strives to become one of
the world's top companies. Such a relationship is transformed into a valuecreation relationship whereby both parties endeavor to address mutual problems
and create new values together.
History of company:-
The company was originally established in 1958 as Gold Star, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The LG TV Group was a merger of two Korean companies, Lucky and Gold
Star, from which the abbreviation of LG TV was derived. The current "Life's
good" slogan is a backronym. Before the corporate Name change to LG TV,
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 TV Electronics, and acquired Zenith
Electronics of the United States.
Global Operation
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Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
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e) PDP Modules,
f) OLED Panels,
g) USB Memory,
Digital media
a) Home Theater Systems,
b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CDRW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
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LG TV 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
LG TV BRAND IDENTITY:-
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Ease of use
Extraordinary Experience
Personality describes the human characteristic that are expressed to the
customer through
Trustworthy, Considerate
Practical, Friendly
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Mission
The mission of LG TV is to provide the customers with utmost satisfaction
through leadership.
The fundamental policy of development is to secure product leadership that the
Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
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1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
Quality Innovation:
The policy of quality assurance is to provide customers with utmost satisfaction
by supplying zero defects.
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Fair Transaction :
Equal Opportunity
Fair Transaction Procedure
Support and Aid for Business Partners
Fair competition
Pursuit of Free Competition
Compliance with Laws and Regulations
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LG TV INDIA:
LG TV Electronics India Pvt. Ltd., a wholly owned subsidiary of LG TV
Electronics, South Korea was established in January 1997 after clearance
from the Foreign Investment Promotion Board (FIPB). LG TV set up a state-ofthe art manufacturing facility at Greater Noida, near Delhi, in 1998, with an
investment of Rs 500 Crs.
LG TV corporate office is located at Plot no.51, Udyog Vihar, Kasna Road,
Greater Noida, India.
This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens.
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Challenges in India
The challenges faced by LG TV when entered in Indian market
benefits. CTV has Golden eye technology Air conditioner has Health
air system and microwave ovens have the Health wave system.
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LG
BAREILLY. Both the unit carry out R&D department for the domestic as well
as the parent company it also dose customize R&D for the specific countries to
which it export product.
Regional channel and wide distribution network
1. LG TV has adopted the regional distribution channel in India. All the
distributers work directly with the company. This has resulted in quicker
rotation of the stock and better penetration into B, C, D, class market.
2. LG TV also follows the stock rotation policy rather then dumping stock
on channel partners.
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90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
LG
SAMSUNG
0.0%
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80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
LG
20.0%
SAMSUNG
10.0%
0.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG
VOLTAS
GODREJ
L
G TV position of AC in various States in India
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100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
PHILIPS
30.0%
LG
20.0%
SAMSUNG
10.0%
VIDEOCON
0.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
PHILIPS
SAMSUNG
VIDEOCON
L
G TV position of DVD in various in India
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70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG
KENSTAR
GODREJ
L
G TV position of MWO in various states in India
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year. The said money will be used to market as well as manufacture new
products.
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Logistics is the art and science of managing and controlling the flow of goods,
energy, information, and other resources like products, services, and people,
from the source of production to the marketplace. It is difficult to accomplish
any marketing or manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing, material
handling, and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible.
Logistics Management is that part of the supply chain, which plans,
implements and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the point of origin
and the point of consumption in order to meet customers' requirements.
5Rs of Logistic followed by LG TV:
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
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The LG
In warehouse, the products are pinup with 3-color paper to get the knowledge
about the delivery.
1. Red Card To stop the product going into market,
2. Green card To allow the product for delivery in market,
3. Yellow Card After the product labeled with green, allow this to move in
market
4 hrs.
24 hrs.
48 hrs.
The above distribution time is the time of delivery of products from warehouse
to the market place, which the logistic department follows to fulfill the demand
in the market at right time. In LG TV, we have the following process, which is
followed in logistic through ERP.
Order Processing
Invoicing
Indenting
Report
Order Processing
Invoicing
Indenting
Report
distributed to all
In warehouse, there are two mode of dispersion of product from one place to
another within. a) Hydraulic
b) Manual
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
Equipments
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CUSTOMER SERVICE
The best and the biggest international brands are here in India but the irony if
it all: where is the after-sales-service? So integral to a brand, so critical for its
success and so taken for granted in developed markets! In India, after sales
service is, for want of a better description, the pits. So whats stopping the best
companies from pulling out all the stops when it comes to providing the best
service? Do customers expect for too much? Or is it that in India they dont
really care. Brand Equity fanned out to MNC as well as Indian consumer
durable companies, stockiest and dealers, analysts and market researchers to get
a feel of whats really keeping after sales from being used as a cutting edge
marketing tool in pushing products across categories.
Customers support following the purchase of a product or service. In some
cases, after-sales service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is included in any
warranty (or guarantee) package. This will include the duration of the warranty
traditionally one year from the date of purchase, but increasingly two or more
years maintenance and/or replacement policy, items included/excluded, labor
costs, and speed of response. In the case of a service provider, after-sales service
might include additional training or helpdesk availability. Of equal importance
is the customer's perception of the degree of willingness with which a supplier
deals with a question or complaint, speed of response, and action taken.
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In the initial phase the company has entered into agreements with ITIs in
the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and
Karnataka and is in the last leg of signing with Uttar Pradesh.
1. L G Electronics, with 1200 service centers, has already recruited 300
students and plans to beef up the number to 10,000 by the year-end.
2. "The company has offered a scholarship to the selected students for the
last six months of their training programme,"
3. The company will invest Rs 8 Cr (Rs 80 million) in employee
development programme this year with an aim to attain a 8 per cent
attrition rate.
4. The company moved away from the discounting strategy since last year
and is putting thrust on the quality and service in its brand
communication to position LG TV as a premium consumer electronics
brand.
5. At the top, the Service Division in Korea reports to the Global CMO. (as
mentioned in Dermots public interview in ET on Wednesday). This
shows commitment that Service must be made into a marketing
differentiator, and leveraged thus.
6. LG
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nearest, it shows the company is ready to put our money where our mouth
is.
7. The company has introduced a 211 service - once you register your
complaint, we will call you back in 2 hours (hence 2), set up an
appointment for the next convenient day for you (hence the first 1), and
show up in the promised 1-hour slot (hence the second 1). If the next
convenient day for you is the next day, thats great too. Its a disruptive
action in an industry (including LG TV) having traditionally shied away
from its service responsibilities, and thus not leveraging any mileage
from it.
8. The company is promoting 211 through ATL, probably the first time
after-sales service is being communicated in this fashion by any product
company. You may have seen the TV commercial or heard the radio
advert or seen the newspaper ad or in-shop posters, both of which revolve
around prompt response.
9. The first LG TV-owned service centre opened in Gurgaon. (Service in
India generally works through authorized service centers, in LG TVs
case they work exclusively for LG TV.) A company-owned service centre
tries that much harder, knows things better, and can even contribute as a
revenue center.
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LITERATURE REVIEW
LG TV Electronics India Pvt. Ltd., a wholly owned subsidiary of LG TV
Electronics, South Korea was established in January 1997 after clearance
from the Foreign Investment Promotion Board (FIPB). LG TV set up a state-ofthe art manufacturing facility at Greater Noida, near Delhi, in 1998, with an
investment of Rs 500 Crs.
LG TV corporate office is located at Plot no.51, Udyog Vihar, Kasna Road,
Greater Noida, India.
This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG TV
plans to launch 60 premium Brand Shoppes by the end of the first quarter of this
year. At present, LG TV has a total of 83 LG TV stores across the country, of
which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed
in the premium segment and the target audience will comprise buyers interested
in premium and high end products.
LG TV 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 TV products in his
or her own home settings.
LG TV Electronics India Ltd (LG TVEIL), consumer durables leader with
27% market share, is planning a brand new image. To attract inspirational and
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young consumers across India, company will roll out a new marketing strategy.
The exercise will cost the company Rs 360 Cr.
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PRODUCTS
(e) CDMA Handsets,
(f) GSM Handsets,
(g) 3G Handsets,
(h)Cellular Phones
Digital appliance
h) Air Conditioners,
i) Refrigerators,
j) Microwave Ovens,
k) Washing Machines,
l) Vacuum Cleaners,
m) Home Net,
n) Compressors for Air Conditioners and Refrigerators
Digital display
h) Plasma TVs,
i) LCD TVs,
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Digital media
l) Home Theater Systems,
m) DVD Recorders,
n) Super Multi DVD Rewriters,
o) CDRW,
p) Notebook PCs,
q) Desktop PCs,
r) PDAs,
s) PDA Phones,
t) MP3 Players,
u) New Karaoke Systems,
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v) Car Infotainment
Research Methodology
Research methodology is considered as the nerve of the project. Without a
proper well-organized research plan, it is impossible to complete the project and
reach to any conclusion. The project was based on the survey plan. The main
objective of survey was to collect appropriate data, which work as a base for
drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods but also
logic behind the methods used in the context of a research study and it explains
why a particular method has been used in the preference of the other methods
Research design:
Research design is important primarily because of the increased complexity in
the market as well as marketing approaches available to the researchers. In fact,
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its approach cannot be changed every now and then. It is therefore necessary,
the researcher give sufficient thought to framing research.
Primary data: For primary data collection, we have to plan the following
four important aspects.
Sampling
Research Instrument
Secondary Data - The Companys profile, journals and various literature
studies are important sources of secondary data.
Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
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Inferences
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Inference
1. 30% of customer gives importance to price. So it shows that Indian
consumers are very price sensitive. They give more importance to price
over the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price.
3. 19% to product feature Service 16% and durability 9% Service is also a
big factor for the customer they are less interested in the durability.
Inference:
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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
Attractive Price
Service
Demonstrations
Offers
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Inference
1. Customers buy from showrooms because of the service and convenience.
These are two main factors.
2. Customers are preferred to buy from the showroom because of they think
that these convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can
get more discounts in these showrooms.
4. Price also a factor that attract the customer in these showrooms.
AC
Inference
In CTV section maximum customers have Onida, in LCD Sony is the leader, In
plasma BPL is the leader, In Ref LG TV is the leader, MW LG TV is the
leader. In WM there are companies and in AC also.
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Inference
1. Customers prefer to change consumer durables within 5-10 years. In
India people do not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not prefer to change their consumer
durable frequently.
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Inference
Majority of customers do not prefer any financial scheme.
Findings
1. By calculating the display share we found that in most of store LG TV
has 50% display share almost all categories.
2. By the actual monthly sale of particular store we came to know the
capacity of the store and how much product can they sale.
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LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
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2. My research work period witness the biggest ups and downs in product
sale of different brands, which affected the perception of the customer.
This was biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete
my research, for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
5. I had only found the upper-middle class family to fill up the
questionnaire, but generally, an average middle class family was required
for the study.
6.
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4. The company should look into the matter of person hiring for in shop
demonstration. A big LG TV showroom should have at least 2 such kind
of person.
5. LG TV 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 TV, it is
necessary to take measure steps to overcome the area of downfall in LG
TV with respect to Samsung.
7. The marketing managers should make better relations with dealers and
reputation of the company.
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CONCLUSION
Indian Consumer durables market used to be dominated by few domestic
players like Godrej, Voltas Allwyn and Kelvinater. But post liberalization much
foreign company have entered into Indian market dethroning the Indian player
and dominating Indian market
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BIBLIOGRAPHY
www.LG TVindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG TV magazine
Economics times News paper
Times of India
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Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions?
a) Yes
b) No
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
a) Attractive Price
b) Service
c) Demonstrations
d) Offers
e) Convenience
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-------------------
b) LCD
-------------------
c) PLASMA
-------------------
D) REF
-------------------
E) WM
-------------------
F) MW
-------------------
G) AC
-------------------
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