LG Prpject 001 Final

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

DEVELOPMENT
Submitted By
Kamal Raj Saini
(MBA-IV SEM), In Partial Fulfillment for Degree of Master of Business

Administration during the year 2007-09
SIKKIM MANIPAL UNIVERSITY
LEARNING CENTRE – PIIT (01531), BANIPARK, JAIPUR
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ACKNOWLEDGEMENT
It is indeed of great moment to pleasure to express my senses of

per found gratitude & indebtness to all the people who have been
instrumental in making my tanning a rich experience. I got the
opportunity to do a challenging project in LG ELECTRONIC
(INDIA) The project is the important part of our study and gives
us a real practical exposure to the corporate world and it is almost
impossible to do the same without the guidance of peoples in and
around us. Similarly while doing the topic “Market Survey on
LG consumer durables & dealer development as a summer
trainee I took many my projects in help.
This project report could not have been completed without the
guidance of our COORDINATOR - MBA, Mr. SATYAJEET
RAO & project guide Mr. GAURAV MALPANI. Their timely
help & encouragement helped me to complete this project
successfully.
I am thankful to MR. Sataya mohenty marketing manager Pune

for giving me opportunity to work at LG ELECTRONIC as a
consumer durables and dealer development research.
2
I am thankful to Mr.K.R SINGH (Branch Manager),Mr.Rohan
Laddha (Area sales manager) and Mr.Mandar Damle (Logistic
head) for their encouragement and able guidance at every stage of
my training work.
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CONSUMER DURABLES SECTOR
AN
MARKET ANALYSIS
OF
LG
COMPANY GUIDE : FACULTY GUIDE :
MR. Sataya mohenty Gaurav Malpani

(Marketing Manager) (Lect.)
LG INDIA (PUNE) PIIT (Learning centre)
Sikkim Manipal University,
4
No. Particulars Page No
1 Executive Summary
2 Objective & Scope of

Project
3 Company Profile
4 Theoretical
Background**
5 Projections
6 Bibliography
5
6
7
Executive summary
INTRODUCTION TO THE TOPIC
Indian Consumer durables market used to be dominated

by few domestic players like godrej Voltas allwyn and kalvinater.
But post liberalization much foreign company have entered into
Indian market dethroning the Indian player and dominating Indian
market the major categories in the market CTV, REFRIGRATOR,
AIR CONDTIONERS AND WASHING MACHINE
India being the second largest growing economy with

huge consumer class has resulted in consumer durables as the
fastest growing industries in India LG, SAMSUNG the two
Korean companies has been maintaining the lead in the industries
with LG being leader in almost all the categories.
The rural market is growing faster than the urban market, although
the penetration level is much lower .The CTV segment is expected
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to the largest contributing segment to the overall growth the
industry. The rising income levels double-income families and
consumer awareness are the main growth drivers of the industries.
Consumer durables major LG Electronics India Pvt Ltd (LGEIL)

will invest nearly Rs 500 crore in India this year in research and
development, brand-building and other marketing initiatives.
The company, having a turnover of Rs 9,500 crore and market

share of 26 per cent, is investing Rs 360 crore on brand-building
and other marketing initiatives and around Rs 140 crore on
research and development, besides launching new platforms in
information technology and related areas,
LG’s innovative ‘211 campaign’ to provide quality after-sales

service, will also be expanded from the existing 22 to 40 cities by
next month,
The campaign, for which IT infrastructure has been set up,

includes the company’s response to customer complaint within
two hours. The fixing time for complaints varies from one hour to
a maximum of 24 hours.
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Scope of project
This project gives me great exposure to the consumer durable

market because it includes product knowledge and the filed job in
which I have visited the store comes under the region of Pune.
During this project I also took part in the exhibition of LG which
held for the purpose branding and awareness of LG product. This
project helps me to know the market practically. My job was
during this project to see the market share and also the display
share of the LG product in the store. LG always insist the 50%
display share of LG product because LG believes that “JO
DIKHTA HAI WO BIKTA HAI”.
My job include while visiting the shops
1. Calculate the display share of the LG product in every shop

which comes under Pune region.
2. Collect the data of actual monthly sale of the LG product in

every shop.
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3. Check the availability of LG catalogue and the POPs in the
store.
4. Find out the problems that the dealer are facing while sailing
the LG product.
5. Find out the costumer response for the LG product by asking

the owner of the shop.
6. Find out the distributer name from whom they purchasing

their product and also weather they have direct dealership and
which brand.
7. Check that demo calls are attended or not
Key findings:-
1. By calculating the display share we found that in most of

store LG has 50% display share almost all categories.
2. By the actual monthly sale of particular store we came to

know the capacity of the store and how much product can
they sale.
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3. It helps us to know that weather dealer is capable of being a
direct dealer of LG or not and it also helps to find out the new
dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there was
big problem of after sale service.
5. Many dealers were facing the problem of after sale service

because there is no follow up calls from LG.
6. Demo calls also not done properly.
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OBJECTIVES
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OBJECTIVES OF THE STUDY
Primary objective
 The main objective of filed survey during the project was to

find out the market share of the LG and also calculate the
display share.
 Find out the positional dealer who can sale the LG product in
large volume.
 The main objective of research was to identify potential

dealer and development these dealer. So LG can make them
their direct dealer.
 This will ease the dependence on the some big dealer like
Maharashtra and Mahaveer electronics.
 Find out the problem faced by the dealer in sales and the
distribution.
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Secondary objective
 The Objective was to find out that how far the exhibitions are
helpful in branding,
 While purchasing the consumer durables which parameter is

most important for the consumer?
 Do the consumers prefer the financial facility for buying

consumer durable?
 How frequently consumers change the consumer durable?
 To enhances the knowledge of consumer durable market.
 To increases the knowledge consumer durable product of LG.
 To enhances the knowledge about the marketing and branding

activity.
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INTRODUCTION
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INTRODUCTION CONSUMER DURABLES SECTOR
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, 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
17
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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Classification of consumer durables sector
1. Consumer electronic
include vcd/dvd, home theatre, music player, color
television (CTVs), cameras, camcorders, portable audio,
Hi-Fi, etc
2. White goods include

dishwashers, air conditioners, heaters, washing machines,
refrigerators, vacuum cleaners, kitchen appliances, non-
kitchen appliances, microwaves, built-in appliances,
Tumble dryer, personal care product etc.
3. Moulded luggage
include plastics
4. Clocks and watches
5. Mobile phones
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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$4,400-US$21,800 a year. And there are 6 million rich
household in India.
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5. The upper-middle and high-income household in urban areas
are expected to grew to 38.2 million in 2007 as against 14.6
million in 2000.
Opportunity
1. In India the penetration level of white goods is lower as

compared to other developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e.increase in purchasing power of

consumers.
5. Easy availability of finance.
Threats
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Higher import duties on row materials.
Cheap imports from Singapore, China and from other Asian
countries.
Brands in consumer electronic sector
MNCs NATIONAL REGIONAL

LG )
SAMSUNG ) KOREA ONIDA BUSH
HYUNDAI ) VIDEOCON CROWN
BPL SALORA
TCL ) CHINA GODREJ T-SERIES
HAIER ) VOLTAS WESTON
IFB BELTAK
PHILIPS ) HOLLAND OSKAR
PANASONIC )
SHARP )
HITACHI )
SANSUI ) JAPAN
AKAI )
AIWA
WHIRLPOOL )
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ELECTROLUX
TODAY Consumer durables sector is characterized by the

emergence of MNCs, exchange offers, discounts, and intense
competition. The market share of MNCs in consumer durables
sector is 65%. MNC's major target is the growing middle class of
India. MNCs offer superior technology to the
LG, SAMSUNG the two Korean companies has been

maintaining the lead in the industries with LG being leader in
almost all the categories.
The company, having a turnover of Rs 9,500 crore and market

share of 26 per cent, is investing Rs 360 crore on brand-building
and other marketing initiatives and around Rs 140 crore on
research and development, besides launching new platforms in
information technology and related areas,
LG Electronics is one of the leading companies in the field of

electronics with a global presence in many countries. . Before
23
briefing, I have divided the introduction part into three main sub
parts.
1. LG Global
2. LG India
3. LG Pune
COMPANY PROFILE
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COMPANY PROFILE
Facts & Figures
Established In India : May 1997
Managing Director : Mr. Moon B. Shin
Corporate Office : Plot no 51, Udyog Vihar, Surajpur

Kasna Road, Greater Noida (UP)
Corporate Website : http://www.in.lge.com
Manufacturing Units : Greater Noida (U.P.) & Pune

(Maharashtra)
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Business Areas & Main Products
Category Main Products

LCD TV , Plasma Display , Display Panel, Color
Consumer Television, Home Theatre System, Music
Electronics system, DVD Recorder/Player, MP3 & MP4
Player
Room Air Conditioner, Commercial Air
Home Appliances Conditioner , Refrigerator, Washing Machine,
Dishwasher, Microwave, Vacuum Cleaner
Computer Laptop, Personal Computer, LCD monitor, CRT
Products monitor, Optical Storage Devices
Premium trend setter phone , Camera Phone ,
Mobile Phone
Music Phone , Color Screen GSM Handset
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CORPORATE OVERVIEW
Established in 1997, LG Electronics India Pvt. Ltd., is a wholly

owned subsidiary of LG Electronics, South Korea. In India for a
decade now, LG is the market leader in consumer durables and
recognised as a leading technology innovator in the information
technology and mobile communications business . LG is the
acknowledged trendsetter for the consumer durable industry in
India with the fastest ever nationwide reach, latest global
technology and product innovation.
One of the most formidable brands, LGEIL has an impressive

portfolio of Consumer Electronics, Home Appliances, GSM
mobile phones and IT products.
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).
The trend of beating industry norms started with the fastest ever-
nationwide launch by LG in a period of 4 and 1/2 months with the
commencement of operations in May 1997. LG set up a state-of-
the art manufacturing facility at Greater Noida, near Delhi, in
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1998, with an investment of Rs 500 Crores. This facility
manufactured Colour Televisions, Washing Machines, Air-
Conditioners and Microwave Ovens. During the year 2001, LG
also commenced the home production for its eco-friendly
Refrigerators and established its assembly line for its PC Monitors
at its Greater Noida manufacturing unit.The beginning of 2003
saw the roll out of the first locally manufactured Direct Cool
Refrigerator from the plant at Greater Noida.
In 2004, LGEIL also up its second Greenfield manufacturing unit

in Pune, Maharashtra that commences operations in October 2004.
Covering over 50 acres, the facility manufactures LCD TV, GSM
Phones, Color Televisions, Air Conditioners, Refrigerators,
Microwave Ovens Color Monitors.
Both the Indian manufacturing units has been designed with the
latest technologies at par with international standards at South
Korea and are one of the most Eco-friendly units amongst all LG
manufacturing plants in the world.
LG has been able to craft out in ten years, a premium brand

positioning in the Indian market and is today the most preferred
brand in the segment
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VISION
LG Electronics is pursuing the vision of becoming a true global

digital leader, attracting customers worldwide through its
innovative products and design. The company’s goal is to rank
among the top 3 consumer electronics and telecommunications
companies in the world by 2010. To achieve this, we have
embraced the idea of “Great Company, Great People,” recognizing
that only great people can create a great company.
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30
Business Domains
THE DIGITAL FUTURE OF LG
Mobile communications, digital appliances, digital displays, and

digital media - LG is paving the way for the future.
Mobile Communications
LG is a global leader in mobile communications, specializing in
UMTS, CDMA, and GSM handsets. Thanks to its wide range of
wired and wireless options, the company is becoming a force to be
reckoned with on the international market.
In India LG is targeting GSM handset business in premium trend

setter segment, Camera & music segment & color screen segment
Digital Appliances
LG changing homes in many ways, offering customers exceptional
value and convenience. Innovative digital appliances from 100%
washer dryer with direct drive technology, built-in LCD TV
31
refrigerator, Lightwave cooking oven (solardom) to artcool split
air conditioner illustrate LG's commitment to digital convergence.
Digital Display
LG offers a wide range of digital display products, equipped with

customer-oriented designs and technologies. With its LCD TVs,
Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors LG is
pulling out all the stops to remain the frontrunner in today's digital
display industry.
Digital Media
LG has a great interest in digital media and is continually
developing and producing digital convergence products that
promise to enrich the lives of its customers. Its main focus is on
producing high-definition, quality products in a variety of areas.
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Corporate Social Responsibility (CSR)
With the advent of globalization in India, the concept of Corporate

Social Responsibility has emerged as one of the most important
aspects of corporate behavior. Acknowledging this responsibility
is crucial for an organization's sustainable development and future
access to the global market. A definite corporate social
responsibility(CSR) plan has therefore not only become an integral
part of an organization's brand building strategy, but has also
emerged as an important tool to enhance the organization's
credibility, attract potential investors and clients and employ the
best of industry talent.
As a leading corporate in India, we at LG believe that corporate

contribution to society when guided by self-interest results in long
term goodwill building, and have therefore endeavored to assume
responsibility for the needs of its people, the environment and the
society. We have consistently looked beyond its immediate
business environment to address larger societal issues. This
concern springs from the belief that a true corporate vision must
embrace the wider community rather than just shareholders,
customers and suppliers.
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At the same time, there is nothing idealistic about LG's CSR
vision, nor is it in conflict with hard-headed business sense. It is
purely an understanding on LG's part that the time, resources and
in-house professional expertise invested in social development
projects pay rich dividends to the company and the communities in
which it operates. Therefore at LG the message is clear: creating
profits can and should go hand-in-hand with generating goodwill.
Internal Culture
As we all know requirement of trained and experienced

Professional with the desired mindset is the need of the hour for
any Organization to Survive and Grow in this competitive
environment.
To cope with the growing expectations of business and in order to

give the organization a competitive edge to the business we in LG
have streamlined the whole system by integrating the HR
fundamentals with Information Technology and have adopted
some practices unique to LG.
LG as a brand and a market leader in India attracts candidates in
hordes and it's Industry leadership status serves as a major factor in
attracting employees. Therefore LG has the ability to hire the best
in the industry.
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Once these candidates are hired, they undergo and exhaustive
induction programme for a duration of 14 days under which the
candidate is acquainted which each and every aspect of the
organization. A thorough integration with HR & Business
Processes takes place and the formulation of a KPI is done within
three days of taking the candidate onboard. Customer
Department/Vendor Department interaction also takes place.
In LG. Apart from this LG also has a family ambassador
programme where a dedicated mentor goes to the workers house
and talks to his family, their problems etc. and tries to make their
situation better. All workers are served lunch alongwith the other
senior employees so that no demarcation is made.
Infect lunch is first served to workers and then to the white collar
employees. On the first Monday of every month the workers meet
the MD and 50 workers amongst of them get awards for
outstanding performance.
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HISTORY OF LG COMPANY
36
History of company
The company was originally established in 1958 as Gold Star,

producing radios, TVs, refrigerators, washing machines, and air
conditioners.
The LG Group was a merger of two Korean companies, 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.
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LG Global
LG Electronics was established on October 1, 1958 (As a private

Company) and in 1959, LGE started manufacturing radios,
operating 77 subsidiaries around the world with over 72,000
employees worldwide it is one of the major giants in the consumer
durable domain worldwide. The company has as many as 27 R &
D centers and 5 design centers. It's global leading products include
residential air conditioners, DVD players, CDMA handsets, home
theatre systems and optical storage systems. LG globally believes
in the philosophy of "Great Company, Great People," whereby
only great people can create a great company.
The company's growth strategy is based on "fast innovation" and

"fast growth", through three core capabilities: product leadership,
market leadership, and people-centered leadership.
The company has a strong corporate culture fostering innovation,

pioneering spirit and transparent management across subsidiary
and believes in empowering employees to achieve leadership.
Digital TV, PDP, Monitor, CD-ROM Drives, DVD-ROM Drives,

CD Rewritable Recorder, VCR, DVD Player, Audio, Security
System, Recording Media, Video Phone, PC Camera, Banking
Automatic System , PCB.
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TDX, STAREX, optical switching systems, Implementation of
advanced IBS (Information Building System), System Integration
(SI) service, etc. Implementation of advanced IBS (Information
Building System), System Integration (SI) service, Handsets for
satellite, mobile multimedia and IMT-2000 services, etc.
1958
GoldStar (today’s LG Electronics) established
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1959
Korea’s first radio produced
1962
Radio exported to the US and Hong Kong as Korea’s first
1965
Korea’s first refrigerator produced
1966
Korea’s first black & white TV produced
1968
Korea’s first air conditioner produced
1969
Korea’s first washing machine produced
1974
GoldStar Communications went public
40
1977
Color TV produced
1978
Exports surpassed US$100 million, a first for Korea’s electronics
industry
1980
First EU sales subsidiary in Germany (LGEWG) established
1982
Color TV plant established in the US in Huntsville, Alabama
1984
Sales surpassed 1 trillion Won
1986
European-standard VCR plant established in Germany
1989
Sales subsidiary and a joint production subsidiary established in
Thailand
41
1990
Ireland-based design technology center established
1993
With the establishment of Huizhou subsidiary in China(LGEHZ),
marketing in China took full swing
1995
Company name changed to LG Electronics and US-based Zenith
acquired
1997
40-inch Plasma TV and the world’s first IC set for DTVs
developed India production subsidiary (LGEIL) established
1998
World’s first 60-inch Plasma TV developed
1999
LG.Philips LCD established
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2000
LG Information & Communications merged The world’s first
Internet-enabled refrigerator launched Global sales of refrigerators
reached the number one position
2001
Asynchronous IMT-2000 equipment commercialized The world’s
first Internetenabled washing machine, air conditioner, and
microwave oven launched LG.Philips Displays, a joint venture
with Philips established
2002
Under the LG Holding Company system, the Company spun off to
LG Electronics (LGE)& LG Electronics Investment (LGEI) The
first home network system commercialized in the global market
2003
World’s first synchronous-asynchronous IMT-2000 mobile phone
developed The world’s first 76-inch Plasma TV developed CDMA
mobile handsets took the largest share in the US and world CDMA
market Launched the world’s first Super Multi DVD Rewriter
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2004
EVSB, the next-generation DTV transmission technology, chosen
to be the US/Canada DTV transmission standard by the US ATSC
All-in-one LG 55-inch LCD TV, the world’s first and largest
among LCD TVs, commercialized The world’s largest and first
71-inch Plasma TV commercialized The world’s first terrestrial
DMB phone developed Developed Wireless Speaker
Home Cinema System
2005
The world’s first DMB notebook commercialized The world’s
slimmest TV commercialized The world’s largest102-inch Plasma
TV developed LG and Nortel Networks agreed to establish a joint
venture for telecommunication network equipment Satellite-based
DMB phonecommercialized The largest share seized in the global
CDMA market
2006
Launched the LG Shine, the second handset in the Black Label
Series Globally launched the steam washing machine and
interactive TV refrigerator Developed the world's first 100-inch
LCD TV Launched the world's largest Full HD 102-inch Plasma
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TV (1080p) Developed the world's first dual-format high-
definition Disc Player& Drive
2007
Launches the industry's first dual-format, high-definition disc
player and drive Launches 120Hz Full HD LCD TV
Demonstrated the world-first MIMO 4G-Enabled technologies
with 3G LTE Won contract for GSMA's 3G campaign
2008
Introduces new global brand identity: "Stylish design and smart
technology, in products that fit our consumer's lives."
Global Operation
LG Electronics is playing an active role in the world market with

its assertive global business policy. As a result, LG Electronics
45
controls 110 local subsidiaries in the world with around 82,000
executive and employees.
LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
LG INDIA
46
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 shoppes and 38 are exclusive
stores. Brand shoppes will be placed in the premium segment and
the target audience will comprise buyers interested in premium and
high end products.
LG Brand Shoppe goes beyond the concept of a normal exclusive

store by having a more interactive environment and additional
lifestyle orientation on display so that the customer can actually
experience the LG products in his or her own home settings.
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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.
48
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
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
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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. Compitition from local market players and other MNCs in
consumer durable segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as

Innovative marketing strategy
1. LG was the first brand to enter in cricket in big way a way, by
sponsoring the 1999 world cup followed it up in 2003 as well.
2. LG brought in four captains of the Indian cricket team to
endorse its products. LG invested more then US$ 8 million on
advertising and marketing in this sport.
3. LG has differentiated its product using technology and health
benefits. CTV has “Golden eye technology” Air conditioner
has “Health air system” and microwave ovens have the
“Health wave system”.
50
THE DIGITAL FUTURE OF LG
Mobile communications, digital appliances, digital displays, and

digital media - LG is paving the way for the future.
Mobile Communications
LG is a global leader in mobile communications, specializing in

UMTS, CDMA, and GSM handsets. Thanks to its wide range of
wired and wireless options, the company is becoming a force to be
reckoned with on the international market.
In India LG is targeting GSM handset business in premium trend

setter segment, Camera & music segment & color screen segment
(a) CDMA Handsets,

(b) GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones
Digital Appliances
51
LG changing homes in many ways, offering customers exceptional
value and convenience. Innovative digital appliances from 100%
washer dryer with direct drive technology, built-in LCD TV
refrigerator, Lightwave cooking oven (solardom) to artcool split
air conditioner illustrate LG's commitment to digital convergence.
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
LG offers a wide range of digital display products, equipped with

customer-oriented designs and technologies. With its LCD TVs,
Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors LG is
pulling out all the stops to remain the frontrunner in today's digital
display industry.
a) Plasma TVs,
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b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
Digital Media
LG has a great interest in digital media and is continually

developing and producing digital convergence products that
promise to enrich the lives of its customers. Its main focus is on
producing high-definition, quality products in a variety of areas.
a) Home Theater Systems,

b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CD±RW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
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i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
VISION
Global Top 3 by 2010
Global Top 3 Electronic/Telecommunication company
GROWTH STRATEGY
“Fast innovation, Fast growth”
CORE COMPETENCY
“Product leadership, Market leadership, People

leadership”
CORPORATE CULTURE
No excuse, “we” not “I”, Fun workplace
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BRAND IDENTITY
THE LG BRAND COMPRISES FOUR BASIC ELEMENTS:

VALUES, INNOVATION, PEOPLE, AND PASSION.
Positioning Statement
LG strives to enhance the customer’s life (and lifestyle) with

intelligent features, intuitive functionality, and exceptional
performance. Choosing LG is a form of self-expression and self-
satisfaction. Our customer will take pride in owning the amazing
and take comfort in knowing he/she made a smart, informed
decision.
LG BRAND IDENTITY:-
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The brand of LG is delightfully smart. LG strives to enhance the
customer’s life and lifestyle with intelligent features, institutive
functionality and exceptional performance.
The brand platform:-
The LG brand is composed of four basic elements –
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer

includes
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 Reliable products
 Simple design
 Ease of use
 Extraordinary
Experience
Personality describes the human characteristic that are expressed

to the customer through
Trustworthy, Considerate
Practical, Friendly
Brand Platform
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The LG brand comprises four basic elements: Values,
Innovation, People, and Passion
SLOGAN
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" LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO
PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL
MAKE YOUR LIFE GOOD.
Our slogan, 'Life's Good' best expresses our brand's values,

promises, benefits and personality. It is an ultimate expression for
what our brand stands for and what we strive to deliver
continuously. LG's delightfully smart products 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
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unique identity of the company and unifies every division
and product from LG Electronics across the globe.
THE SYMBOL
" THE FACE OF THE FUTURE. FIND OUT ABOUT THE

MEANING AND INSPIRATION BEHIND LG'S LOGO
DESIGN.
The letters "L" and "G" in a circle symbolize the world, future,
youth, humanity, and technology. Our philosophy is based on
Humanity. Also, it represents LG's efforts to keep close
relationships with our customers around the world.
The symbol consists of two elements: the LG logo in LG Grey and

the stylized image of a human face in the unique LG Red color.
Red, the main color, represents our friendliness, and also gives a
strong impression of LG's commitment to deliver the best.
Therefore, the shape or the color of this symbol must never be
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changed.
Design
The circle symbolizes the globe. The stylized image of a smiling
face in the symbol conveys friendliness and approachability.
Overall, LG’s symbol represents the world, future, youth,
humanity, and technology.
One eye
Goal-oriented, focused, confident.Upper- right hand space

Intentionally left blank and asymmetric, which represents LG's
creativity and adaptability to changes.
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Colors
LG Red, the main color, symbolizes friendliness, and also gives a
strong impression of LG's commitment to be the best. LG Grey
represents technology and reliability. Brand Identity Learn about
the meaning behind the LG brand.
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.
he slogan of LG is “Life’s Good”. It expresses “Brand’s Value,

Promises, Benefits, Personality.
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THE PARTNERSHIP
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
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century business field, is of key significance in terms of
strengthening the existing industry and creating a new one.
LG Electronics will do its best to create new products and

services with an open mind, while developing new technologies
and business fields through various associations with some of the
world's most successful companies.
1.3M
2.SUN
3.YAHOO
4.PHILLIPS
5.TOYOTA
6.MICROSOFT
7.HP
8.GOOGLE
9.GE
10. INTEL
11. NORTEL
12. HITACHI
13. PRADA
14. RENESAS
15. TOSHIBA
16. BESTBUY
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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.)
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The Internal Culture of LG:
LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. 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.
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Growth in LG is very high for those who are in the company and
for those who want to join in LG. The company is growing with
fast innovation and the BLUE Ocean strategy is one of the
examples of growth.
Mission
The mission of LG is to provide the customers with utmost

satisfaction through leadership.
The fundamental policy of development is to secure product

leadership that the
Customers may have the utmost satisfaction.
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MANAGEMENT
PROFILE
MD MESSAGE
Moon B. Shin
Managing Director
2007 has been a landmark year for LG, as it saw the company
achieved a monumental target of Rs 9500 crores and reiterate its
leadership in the Indian Consumer durable Industry. Besides this,
it also launched path breaking products such as the Pearl Black
TV, Home Theatre Sytems and the Viewty Phone which were a
result of LG's deep rooted commitment to providing exceptional
values to its customers and enhancing their lives.
LG also won accolades in various consumer preference surveys,

including the Reader's Digest "Asia's Trusted Brands Survey" and
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CNBC Awaaz's "India's Most Preferred Brands Award",
reinstating consumer faith in LG as a brand.
Embedded in our corporation is the importance of 'Sharing

corporate benefits with the community and it is a timeless promise
that we adhere to. In its continued endeavors aimed at Corporate
Social Responsibility, LG has opened Primary Health Care Centre
at Ranjangaon, offering all basic facilities and free medication for
the patients from not just Ranjangaon, but seven neighboring
villages as well.
With the advent of 2008, it reiterates it's global vision and long
term goal of becoming a global top 3 player in all business areas
and building a unique competitive advantage in key businesses.
Going forward, we have set ourselves a targeted growth of 15% in

terms of turnover. While maintaining market leadership in home
appliances and consumer electronics, LG will aggressively
strengthen its competitiveness in mobile communications and Flat
panel displays. Simultaneously, LG India will synergize it's
activities as a leading global electronics & telecom company with
premium value. India is currently the fastest growing economy in
the world, with disposable incomes increasing tremendously.
Therefore we are increasingly focusing on premium products in
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each category, so tap this growing base of consumer who want the
very best.
Finally, LG will continue to foster innovative management to

maximize productivity. These activities will form a strong base for
continued growth in the foreseeable future.
SINGAPORE, JANUARY 7 2009 - LG Electronics Asia

has appointed Arthur Huang and Adrian Lim corporate
marketing director and marketing director, consumer
electronics, respectively.
Huang and Lim will oversee LG’s marketing operations in

Southwest and Southeast Asia, including Australia.
Both executives are based in Singapore.
Huang is charged with developing the company’s brand

across the region. He was previously head of retail at
Sony Ericsson’s regional operations, based out of
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Singapore. Huang also held the general manger role for Sony
Ericsson's Thai operations.
Lim will manage marketing strategies in the region, with the aim
of revenue generation. He will also spearhead brand awareness
activities, which include product campaigns and launches, for
LG’s consumer electronic product divisions. Lim was most
recently director of product management at Dell Global BV. His
portfolio includes marketing roles at Motorola, Philips and Sony.
Both Huang and Lim report to Nam Young Woo, president and
CEO, LG Electronics Asia.
Mr. Amitabh Tiwari
Company: LG
Based: India
Designation: Marketing Head
This is a short snippet of interview conducted by ITVoir Team

with Mr. Amitabh Tiwari Marketing Head, LG, India.
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MR. Sataya mohenty
marketing manager Pune
Mr. Sataya Mohenty is the Managing Manager in Pune Barnch of

LG India.
Y V Verma,
director HR and management system, LG Electronics
Mr.K.R SINGH
(Branch Manager)
Mr.Rohan Laddha
(Area sales manager)
Mr.Mandar Damle
(Logistic head)
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PRODUCT
PROFILE
We are focusing on six development areas to become the product

leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
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 Flat Panel Displays
 CTV
 GSM
 Air Conditioners
 Refrigerators
 Washing Machines
 Microwave Ovens
 NoteBooks
 Audios
 Vacuum Cleaners
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Television
LG Plasma Display Panels
LG Electronics has achieved new dimensions of technological

excellence among the Plasma Display Panel manufacturers. The
PDP is available in sizes of 40, 42, 50, 60 and 71 inch
internationally.
LG has world’s slimmest panel at 78 mm to the world’s biggest

panel at 71”. The company is the only brand in India which offers
“The largest range of models in the PDP category. Cutting Edge
Technology such as Image Stick minimization, Orbiter,
Whitewash, Flexi PIP, Double Window Screen are some of the
features which makes LG’s PDPs, the best made
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LCD TV
Intelligent Fashion Icon

The spohisticated styling of the 2008 LG LCD TV transforms pure
design into a revolution in home entertainment.
PLASMA TV
A new dimension in Design
LG Plasma produces natural pictures that allow you to enjoy
sports, movies and a lot more. All this without any eye fatigue.
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ULTRASLIM TV
LG Ultra slim-World's slimmest television.
Designed to response your senses,it's a work of art
whose stunning looks are perfectly complemented by it's stunning
performance.
FLAT TV
Experience the LG Flatron with XD technology and get in
touch with reality. Digital processing enhances the quality &
resolution of picture, it makes everything you watch come alive.
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LG Audio
LG now has a comprehensive lineup of 17 products to offer to its

consumers in the Audio segment, making it one of the largest line-
ups in the audio market.
LG’s Audio range comprises of the most progressive range of

wireless MP4 Home Theatres, MP3 Home Cinema Systems and
Room Theatre Systems. LGEIL has one of the widest product
portfolios in Audio category at the moment and further plans to
enhance the portfolio with a slew of futuristic launches. LG Audio
systems come equipped with wireless speaker systems, which
works on 2.44 GHz frequency, which is far superior technology
than offered by any other company in India. The highlight of LG
audio segment is the Next Gen Karaoke System (NKS) developed
by the company.
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HOME THEATRE SYSTEM
Experience the theater right in your own living room. LG

makes this real with its state-of-the-art home theatres.
MUSIC SYSTEM
Touch your senses. Touch your feelings. Touch your soul.

Touch the LG range of audio visual system.
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DVD PLAYER
The technology of tomorrow is here. Make your entertainment

come alive. Music,Movie,Images and a lot more you want to enjoy
on your TV.
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Refrigerator
DIOS
LG India launched the World’s First TV Refrigerator – TV DIOS with a
13-inch hi-definition TFT LCD TV installed at the center of its door. The
600 litres TV DIOS also has a built-in radio tuner providing access to FM
stations and is supported by built-in speakers. It has an astounding silver
nano-antibacterial and nano-carbon deodorizing technology which has won
LG the ‘KT new technology mark.’ Thus, this refrigerator brings together
the best in food preservation and storage with multi-media functions as a
quintessential digital home appliance. LG has a complete range of DIOS
with over 30 different models world over.
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FROST FREE REFRIGERATOR
Usher in the Health in your life with LG's New range of frost
free refrigerators. With the revolutionary Green Ion Door
Cooling Technology, enjoy the assurance of healthy living.
FROST FREELG has launched an exhaustive range of feature

rich diamond cut frost-free refrigerators ranging from a capacity of
230L to 751L. The company currently has six variants in 230 liters
capacity, four variants in 250 liters and five variants each in 280
liters and 310 liters capacity respectively. The company also
launched two variants each in 350 litres & 390 litres capacity and
6 variants in 400+ range.
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SIDE BY SIDE REFRIGERATOR
The ultimate Affluence Statement Share the good life with our
side by side range of refrigerators with state of the art technologies
and international styling.
DIRECT COOL REFRIGERATOR
The all new range of direct cool refrigerators is as talented as

you are, with superb looks, faster ice making, colors and many
more features. Now welcome another perfectionist in your life.
The new range of refrigerators will now be available with more

value added features such as a MICOM panel, Kangaroo Tray,
Anti-bacteria gasket, sliding door bin in addition to the already
existing features like FIR Lamp, Cell Fresh Crisper, Door Cooling,
humidity controller which helps in keeping your food fresh,
healthy and crispy for long. Anti-Bacteria gasket provides bacteria
free zone, which delays the formation of molds, hence keeping
food fresh and healthy. Sliding door bin has further addressed the
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problem faced by users in storing 2-liter bottles in their
refrigerators. This multi-utility shelf provides convenience in
storing bigger bottles and can be detached to keep more bottles.
The Kangaroo tray glides open smoothly and has a pullout; full-
width front section that provides two tiers of storage, making
Vegetable compartment access easier than ever and with the
drawer's unique design, there is plenty of storage room for all
shapes and sizes of fruits and vegetables.
Washing Machine
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LG Electronics, has unveiled the latest front loading TROMM
series, drum washing machines. Its futuristic wash features such as
Fuzzy Logic technology ensures that once you press the start
button, smart sensors automatically detect the laundry load and
water level. Fuzzy Logic also detects machine imbalance and
excessive foam formation and adjusts the same for the best
washing performance. At the touch of a button LG TROMM saves
water and energy giving you a clean and convenient wash.
DISH WASHER
Born out of revolutionary technology to ensure hygienic and germ

free meals. Bring home one and discover why millions of people
across the world are switching to a new way of washing dishes.
WASHER DRYER
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The Washer & Dryer combo offers convenient, space saving
solution to all your laundry needs, both in washing And drying. It's
revolutionary direct drive technology ensures perfect wash and
less noise and vibrations.
The LG Dishwasher is a technological miracle with high

performance levels, dependability, energy efficiency and
convenience. The uniqueness of the LG dishwasher is that it
enables 50% fold down times to enable washing of large vessels,
various washing systems and an aqua stop which will detect water
leaks. It also has a triple filter which increases the efficiency of use
of water and energy . The dishwasher can be hailed as the gadget
of the millennium since it requires least water consumption has
more programs & comes in sleek design.
TOP LOAD WASHING MACHINE
Smart wash systems that takes washing off your minds so that
you can spend time better.Loaded with the i-sensor technology it
can sense everything and work for optimal efficiency.
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LG’s Top loading range of fully automatic washing machines
comes equipped with the revolutionary
i Sensor technology. The i-Sensor technology is a combination of
7 sensors against the normal 4 present in other machines, which
delivers a supreme wash. The hardness, detergent and temperature
sensors are the additional sensors. 7-water level sensors help in
power saving of upto 15% more than regular washing machines.
LG also displayed its Turbodrum and 3 step wash range of
machines which delivers best towards washing and rinsing
performance. The washing machines also come with safety
features such as imbalance and door lock sensor with child-lock
feature. The machines are equipped with self tub clean system for
better hygiene . All these superb features enable washing that
offers tangle free clothes, less wear and tear and complete yet
gentle cleaning .
STEAM WASHER DRYER
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New avenue in laundry technology is rising in the form of
Steam.By using the heat and motion energy of water vapour for a
more than-effective wash, LG brings you the innovative Steam
Washer Dryer.
The Dryer comes loaded with latest condensing technology for

drying clothes thus eliminating the need for air vent and duct
which is commonly observed in current Indian offerings . It has
dual lint filter and can handle bulk load upto 7 Kg . Each LG
solution comes out with the 2-year warranty and assured service
support. Aesthetically very appealing every LG product has a
unique blend of eye-catching design, simple controls and superb
washing and drying solutions.
FRONT LOAD WASHING MACHINE
The ultra hi-tech range of machines with advanced features that

makes washing easy.Features such baby care, Qiuck 30 and Bio
wash are deisgned to make life's good.
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SEMI AUTOMATIC
More than cleaning its the care. Get thourough and gentle
washes with the Punch + 3 technology.It generates micro-eddies
for a perfect wash and minimises the tangling.
LGEIL has a total line up of 11 models in SAWM offering

capacity of 6.2, 6.5, 7.0 & 7.2 Kgs. The highlight of the Semi
Automatic Range was India’s first 6.5 Kg capacity semi-automatic
washing machine, developed through the efforts of LGEIL’s
robust in house R&D & Product Planning Team, with an
investment of over 25 crores. This washing machine has been
designed taking into consideration the aspirational as well as
functional needs of Indian consumer. The new Semi automatic
machine launched has international looks and elegance.
LG’s milestones in the Washing Machine category:
1997: LG launched its top loading washing machine from Korea
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1998: Washing machine factory setup and start semi automatic
washing machine
1999: Washing machine export started and launched front loading
2000: Launched MICOM controlled Semi automatic WM
2001: Launched 10 Kg. Digital Display top loading and new range
of front loading
2002: Home production of top loading WM
2003: Became No.1 brand in WM category
2004: Launched TROMM
Mobile Phone
LG Electronics has launched the its latest Hi-end Camera Phone

P7200, S5200, S5000 and M 6100 GSM Handset recently.
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COOKIE
Join the touch generation. Seamless harmony of stylish design and

advanced technology. Powerpacked with 3.0" full touch LCD
screen, auto rotating display, active flash UI, full internet browsing
and much more.
KC550
The 5 Mega pixel performer with Schneider-KREUZNACH

certified lens, with Image Stabilizer & ISO 800 for low light
condition. Enjoy motion sensor based games & view Image/Video
in portrait/landscape by Auto rotation.
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KT610
Smart! Smartphone from LG with QWERTY keypad,Symbian S60

experience,3G and e-mail.
KM501
Real Music Phone with dedicated music keys, equalizer & a 3.5
mm stereo jack with long battery life for extended music playback
time. Enjoy 2 MP Camera with video recording.
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KM710
Ultimate portable music phone with interactive dual display with

long battery life for extended music playback time. Enjoy 3 MP
Camera with video recording.
KS360
Fun Qwerty mobile for heavy message user.
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KF510
Interactive Touch Lighting Navigation, 3MP Camera, 2.2" 262K

Colour TFT display, FM/BT , 10.9mm Slim Slider
DYNAMITE
Surprisingly loaded. Its a dynamite Slim and chic, loaded with
multi-media features, it's all your work and entertainment needs,
right inside your pocket.
SECRET
The 5 Mega pixel performer with Neon Touch Navigation &

different speed of Video recording. Enjoy motion sensor based
games & view Image/Video in portrait/landscape by Auto rotation.
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VIEWTY
View the Next Technology. Professional level camera phone
loaded with 5 mega pixel camera & manual focus. It's ISO 800+
smart light captures the best moments always even in low light.
KS20
Slim & stylish design. Windows based smart phone with large full
touch screen. Enrich high speed mobile internet experience with
HSDPA,Wi-Fi & push e-mail.
KM380T
Ultimate Portable Music phone with i-pod like music sorting,
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searching, rating with long battery life for extended music
playback time.
KF240T
Smooth Multimedia Slider with 2 MP Camera, 2" 262K Colour

TFT display, FM Radio/Bluetooth....
KF300
Elegant Clamshell for Sophisticated & Practical People
KF600
Sleek & stylish phone with Interact Pad® (touch -based virtual
intuitive keypad), Dynamic themes (including Keith Haring art
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work), 3 MP AF Camera, Handwriting Recognition, Music Player,
Yahoo go! & many more....
SHINE
Born to Shine. Effortlessly stylish, packed with sleek all-metal

body, multi-functional scroll key, wide mirror LCD display add to
its sparkle, so you easily outshine the rest.
BULLET
Mobile Tracker Phone Irresistibly sleek and packed with

entertainment features. This range is equipped with mobile tracker
to save your phone from greedy hands.
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LG P-7200
The P-7200 GSM is a high end phone with Unlimited Video

Recording which is trendy, light and easy to carry. It has a 2 mega
pixel camera with Video download and playback support,
integrated USB Memory of 64 MB which makes it a Plug & Play
device & a external memory card slot which can be upgraded till
1GB, MP3 Player with never before DJ repeat effect, Bluetooth, E-
mail, 1000 nos. Phonebook Memory etc. the handset is loaded with
accessories like Data Cable, 64 MB micro SD Card & a
Stereophonic Headset Kit.
LG S-5200
The S-5200 GSM has up to 2 hours of Video Recording and is

MP3 enabled with DJ repeat effect, MP3 Ring tones, Stereo
Surround Sound, Bluetooth, 1.3 mega pixel camera, 4x digital
zoom, Video download & playback facility, 64 MB USB Disk
which makes it a Plug & Play device & USB Charging. The
handset has MMS, JAVA, GPRS, 262K Color Display, 1000
phone book memory, Tri-Band and comes with accessories like
Data Cable & a Stereophonic Headset Kit.
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LG S-5000
The LG S-5000 the trendy looking phone with Granite Finish and
is one of the lightest handsets available in the market in India. Its
fitted with a 1.3 mega pixel camera, Bluetooth, MMS, GPRS,
JAVA, 262K Color Display, 1000 phone book memory etc. The
handset has Continuous Shoot, Photo Frames, Color Effects, White
Balance features.
LG M-6100
The M-6100’s is sure to gather attention with it’s its slim style and
sleek design. Weighing in at just 88 gm, this mini wonder is
equipped with a host of features.
LG Air Conditioners
LG RAC 2007
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LG took the lion's share of the market with 35% market share in
2006. With a quantity turnover of 5.5 lakhs and value turnover of
Rs.1000 Crs, we aim to achieve a qty and value turnover of 6.5
lakhs plus & Rs. 1300 Crs respectively.
a) NEW LAUNCHES IN 2007:
The New AC range of 2007 is par excellence on design front. The

new flat panel splits designed on the international trends in Air-
conditioning addressing the need of the consumer to enhance his
indoor aesthetics. The Deco Panel Series, Color Panel Series & the
Crystal Panel Series raise the bar on design in ACs. Being the first
to successfully launch Colored ACs in India, the new split range
has a variety of colors in Champagne Gold, Majestic Silver, Cool
Blue, Real Earth & Lustrous Pink to suit every indoor & mood.
LG is also the first one to launch colour series in Window ACs.
The Luxurious Gold & Majestic Silver Windows is bound to raise
many eyebrows.
b) THE RAC RANGE 2007
Split ACs is the fastest growing segment for us. This window split
divide for us will be far higher than the industry ratio, at 40:60. We
have 115 models in our lineup: 28 models in Splits, 28 models in
Windows, 8 in Hot & Cold Segment, 3 in Floor standing, 7 in
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Multi Splits & 32 models in Premium Artcool range & 6 models in
Single Inverter Range, 3 models in Multi Inverter Range. We have
also expanded our range to cover all capacity segments from 0.4Tr
to 2.5 Tr . We have created new capacity segments such as the
13000 BTU, 19000 BTU & 30000 BTU SAC addressing the need
of consumer for extra cooling in high ambient locations to provide
instant relief.
INVERTER
Technology that delivers precise cooling or heating power as per
your choice. It works faster and saves energy while ensuring
uniform temperature. Consumer insight also showed us that
consumers are looking for ACs that consumes lesser power giving
them better efficiency. Hence the Inverter technology based Air
Conditioners that give the consumers a benefit of 44% power
savings over conventional ACs apart from 50% faster and uniform
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heating & cooling. These ACs also use R-410 refrigerant which is
HCFC free & hence environment friendly.
FLOOR STANDING
Air Throw that reaches every corner. Get the advantage of

mobility and the purest of air. Ideal for homes and small offices
and most effective in saving power. The powerful motor can give a
reach upto 21 ft too. We will also sustain our focus on emerging
segments like Tower ACs & Multi Split ACs that finds special
target audience in corporate segment, retail establishments,
restaurants and also large residential households.
HOT AND COLD AC
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Optimum indoor weather management 365 days a year. We
also recognized the need of the consumer for year round air-
conditioning in northern and eastern India due to the climatic
conditions. We continue to strive to upgrade such potential
customers to our Hot & Cold AC range that gives "weather on
demand" to the consumer. Thus a consumer is able to live in an
environment comfortable to him all year through. In-depth
research showed that AC buyers apart from having low awareness
about the product also considered that heat convectors were far
more economical in terms of purchase & usage. The new
communication addresses the barriers to purchase for the Hot &
Cold range which includes over 50% savings on electricity bill,
lower power consumption & double quick heating over
convectors.
ART COOL
Where art meets intelligence.Fine art is no longer confined to

museums. Grace your interiors with the finest in technology and
choicest of paintings. Decorate your rooms with your mood and
sense of style. To address the needs of convenient & comfortable
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cooling, LG has launched the indigenously developed Advanced
sensor based Intelloeye Technology in 2007. The unique LG
IntelloEye feature gives unmatched cooling performance that no
other AC can provide at the touch of a button. When the IntelloEye
Mode is switched on, the inbuilt intelligent sensor automatically
detects the room temp and accordingly adjusts the setting
temperature, fan speed & swing settings of the Air conditioner.
MULTI SPLIT
Time to move on to cooling two rooms with a single outdoor

unit. To cater to emerging trend of cooling 2 or more rooms
simultaneously, we are also launching the Odd- Multi Splits to
extend our Multi Split range. These Multi splits in odd capacities
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take care of cooling needs in apts with larger drawing room &
smaller bedrooms.
SPLIT AC
Presenting the wide range of Star Rated Split Air Conditioner

which not only save power but also provide faster cooling,
experience the revolutionary Aero Comfort System which
enable you to control your Air Conditioner & ceiling fan with a
single remote. We will also sustain our focus on emerging
segments like Tower ACs & Multi Split ACs that finds special
target audience in corporate segment, retail establishments,
restaurants and also large residential households.
WINDOW AC
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Presenting the wide range of Star Rated Window Air Conditioner
which not only save power but also provide faster cooling.
With an effort to bring experiential buying to the consumer, we

have also started a new concept in AC retailing called the AC
solution Plaza. These specialty stores sell the entire range room &
commercial air conditioners from 0.4Tr to 25 Tr and also provide
start to end AC Solution right from the designing, consultancy,
sales, after sales service of the AC projects. From a current 2
solution plazas in India, we plan to expand to 10 nos.
Commercial AC
DUCTED TYPE AC
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Perfection in technology with innovation. Concealed from sight
and ideal for large closed spaces. Gives high cooling efficiency
and uniform air flow distribution. Now with LCD remote controls
and Gold fins cooling large spaces becomes surprisingly easy.
CASSETTE TYPE AC
Here's taking the possibilities higher. Be it your home or your

own little business set-up decorate your walls to your taste without
bothering about the AC. Put it up. Literally speaking - put it up on
the roof.
Microwave Oven
107
LG has launched their high end microwave ovens SolarDOM and
WaveDOM. The LG SolarDOM is currently the world’s best
microwave oven with its unique Light wave Technology which
enables three times faster cooking, high nutrient retention, better
energy efficiency (50% saving) and high convenience levels. The
Round Cavity design makes it easy to clean and at the same time
saves space. It has a Indian Auto Menu option, Multi Rotisserie
grill and Smart Guide Display. Consumers also have an option of
getting an installation kit if they have built-in type of kitchens.
SOLAR DOM
The center piece of your kitchen that uses the revolutionary

lightwave technology.
It has a round cavity for larger dishes and cooks upto 4 times
faster.
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GRILL
Now Grill or brown your dishes in addition to your regular
cooking.With a concealed heater now make your favourite Tikkas,
Kebabs and low favouritre recipes at home.
CONVECTION
Superior technology that lets you bake, brown or grill while
cooking your food. The fan at the back regulates hot air effeciently
to bring out the best in your dishes.
SOLO
Perfect for every day cooking as it agitates the water, fats and
sugar to cook food. Food cooks uniformly and makes finger lickin
recipes in seconds.
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The WaveDOM has unique Round Cavity feature which enables 3
times faster cooking, 12% bigger turntable size, 60% more usable
volume than a normal square cavity and easy to clean features.
LG Vacuum Cleaner
LG presents its unique range of “Healthguard” Vacuum Cleaners

packed with advanced features which make them the most
powerful vacuum cleaners. The advanced technology in them can
draw out dirt and germs from the difficult places. It not only rids
the surfaces of dust particles as small as 0.3 microns but cleanses
the air of germs, mites and other harmful microbes.
It’s unique HEPA Filter is a multi layer filtration system which

removes particles 300 times smaller than human hair. The Sani
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Punch nozzle, specially designed for cleaning beds and blankets
uses air pressure to dislodge the toughest of dust mites and
bacteria. is the 1300W-1400W power behind the machines. It also
has a convenient auto-retractable cord and a washable dust
collection jar. LG Healthguard Vacuum Cleaners comes in range
of 4 models – Roboking, Cyking, Extron punch, Spark and
Sweeper
LG Notebooks
LG has launched two Premium state-of-the-art notebooks based on

the latest Intel’s Napa platform with dual CPU cores, developed in
INDIA by Intel. Dual cores combine two cores in a computer’s
CPU to deliver a 30 per cent better performance when
processing multiple tasks. These two LG Notebook models are
LG P1 Express Dual and LG M1 Express Dual with 15.4 inch
wide-screen and 15 inch TFT respectively.
These Notebooks from LG are a unique combination of design,

performance, entertainment and security. These LG Express Dual-
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core processor based Notebooks are exquisitely designed to give
the users the experience of handling a sleek, gorgeous and
technologically rich notebooks.
Entertainment has also been given impetus and these LG

Notebooks are bundled with 5.1-channel Dolby Digital, SRS, 24-
bit HD Audio, 3-Port Analog Output, S-Video and many such
amazing features on select models.
Model : R510-G.A2H3A2
Smart & Clean Martini Design(Moonrise Black colour)
Intel's Next Generation Montevina Platform(Centrino 2 Duo)
15.4" LED WXGA(1280x800) *Fine Bright Technology
Enhanced Mobility with Weight Saver
Hexa band antenna for Enhanced Connectivity Anywhere , Anytime
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P300-S.AP66A2
Thinnest & lightest in its class - 1.65kg light & 21 mm thin

The most powerful graphics in 13.3" NVIDIA Geforce 8600M GS
Enhanced multimedia features (HDMI, SRS..)
S900-K.CPU5A2
Enjoy unparalleled A/V excitement on 19” extra large screen (1400X900)
Hexaband antenna 1.3 Megapixel LG Smart Cam Dolby Home Theater,
10W (5W X 2) stereo speakers
RD410-G.ADT4A2
14.1"LED WXGA Martini Design(Sunrise Red colour)

Intel's Next Generation Montevina Platform(Centrino 2 Duo)
Hexa band antenna
RD510-L.ADM7A2
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15.4" LED WXGA Martini Design(Moonrise Black colour)
Intel's Next Generation Montevina Platform Hexa band antenna
RD410-L.ADA3A2
14.1" LED WXGA(1280x800) Intel's Next Generation
Martini Design(Sunrise Red colour) Hexa band antenna
RD405-A.CDE3A2
14.1 WXGA
Curlfit imprint design
1.3 megapixel web-cam
X110-L.A7P1A2
Trendy Ultra portable Netbook

Clutch Design with Pink colour
With Energy Saving Processor
X110-L.A7B1A2
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Clutch Design with Black colour
X110-L.A7W1A2

Clutch Design with White colour
Mobile Phone Accessories
Batteries
Find a complete listing of standard and extended batteries for your LG

handset. You will also find a battery cover doors, for both standard and
extended batteries.
Standard Battery LG Standard Battery Standard Battery
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Standard Battery Standard Battery Standard Battery
Standard Battery Standard Battery Standard Battery
Bluetooth
LG offers the latest in Bluetooth accessories. Find the bluetooth headset

or bluetooth stereo headset you are looking for today.
Bluetooth Headset HBM-770 Bluetooth Stereo Headset HBS-250 Bluetooth Headset HBM-750 (Black)
Bluetooth Headset HBM-770 Bluetooth Headset HBM-310 Solar Speakerphone (Car-Kit) HFB-500
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Cables
LG offers a wide selection of connectivity accessories for your cell

phone. We've got USB cables and Serial Data cables.
USB Data Cable Serial Data Cable USB Data Cable USB Data Cable
Chargers
Chances are you have a standard charger for your cell phone, but
do you have a charger for your car and when you are on the go?
Don't get stuck without an option to charge your phone. LG has a
full offering of chargers for use in your car, while you are on the
go, as well as standard in home chargers.
Travel Charger
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Vehicle Power Adapter
Headsets/Handsfree/TTY
Headsets and Car Kits for your cell phone are a perfect
investment in safetly and accessibility. LG offers a line of
handsfree devices that give you a greater range of funtionality.
Headset Adapter Earbud Headset Stereo Headset Stereo Headset
Earbud Headset Earbud Headset Stereo Headset
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Editorials
LG Flatron TV sets - High-end features with looks to match
LG Flatron TV sets have re-defined the meaning of

entertainment by giving every LG Flatron TV owner an
opportunity to touch and feel the reality. Incorporating the latest
XD technology, the LG Flatron TV features digital processing
which enhances the quality and resolution of the picture. As a
result, what you see on the screen comes to you alive.
Bring Home an LG Television This Season
119
LG, known for setting a new trend in consumer electronics,
has introduced a whole new world of entertainment with its
trend setting television models. Combining technology with
innovation, LG TV sets offer you an opportunity to feel life
through them. While sophisticated technology is one of the
inherent features of every LG television, stylish looks and
supreme design also make them the most sought after premium
television brands.
LG Mobile Phones: Let Technology Empower Your Life

The mobile communication industry has witnessed a
tremendous growth over the last few years.With mobile phones
gaining immense popularity, large number of companies have
entered into the field of manufacturing mobile phones. One can
find mobile phones ranging from the basic ones to the most
stylish and sleek handsets
LG Microwave - An appliance you must have in your kitchen
120
Cooking used to be quite tedious and boring. You had to spend
several hours in kitchen to serve a dainty meal to your loved ones.
However, that was then. The microwave ovens in general and the
LG microwave ovens in particular have changed all that - if not
completely than to a great extent.
Semi automatic machine by LG: A great digital appliance for

every home
Washing machines are a common household item. They not only
make the clothes clean, but also save a lot of time of the user.
LG Frost Free Refrigerator: A perfectionist in every sense

Frost free refrigerator is definitely a necessity for modern, busy
home owners who do not have time and patience to ensure proper
functioning of a manual refrigerator.
This is so because a manual refrigerator generally gets frost around
the cooling coils
LG Notebook Computers: Stylish, advanced and highly

portable
121
Computer usage has grown tremendously over the last few years.
From being a rare item used by a few households, computer
products are found everywhere these days.
Quality Innovation
The policy of quality assurance is to provide customers with

utmost satisfaction by supplying zero defects.
122
LG proceeds in a hierarchal manner. It is named as “LG WAY”.
From top to bottom:
No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics.
LG will succeed through fair management practices and constantly
developing our business skill.
A) Honest with our customer
b) Providing great values to customer through constant innovation
& and development.
c) Equal opportunities
d) Equal Treatment Management Principle - Creating value for
customer
LG market share of consumer appliances and consumer

electronic:-
123
LG
position of CTV in various states in India
LG position of REF in various states in India
124
LG position of WM in various states in India
LG position of AC in various States in India
125
LG position of Audio & Home Theater in various in India
LG position of DVD in various in India
126
LG position of MWO in various states in India
This analysis is based on the ORG survey conducted by LG

which represent the LG position of different consumer durables in
various states in India. I select different brand in different category
as per the market share and the demand of product in market. This
analysis represents the LG market position during the period of
March 2008. It shows that LG has captured maximum market
share almost in every category. LG and Samsung have the
maximum market in consumer durable market but LG dominate
the almost all the category in consumer durable.
127
products.
LG Electronics, informed that its sales of GSM mobile phones,

110 billion rupees.
of LG exports to 40 countries. Shin remarked that the company
was targeting an increase of exports to $300 million in 2008 from
$230 million in 2007.
128
129
130
Code of conduct of LG:
1. Responsibility and obligations to customers :
131
• Respect for Customers
• Creating Value
• Providing Value
2 Fair competition
• Pursuit of Free Competition
• Compliance with Laws and Regulations
3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
4 Basic Ethics for Employees

• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest
5 Corporate Responsibilities to employees

132
• Respect for human dignity
• Fair Treatment
• Promoting Creativity
6 Responsibilities to society and country
• Rational Business Development

• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation
LG SECTOR IN INDIA
133
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 shoppes and 38 are exclusive
stores. Brand shoppes will be placed in the premium segment and
the target audience will comprise buyers interested in premium and
high end products.
LG Brand Shoppe goes beyond the concept of a normal exclusive

store by having a more interactive environment and additional
lifestyle orientation on display so that the customer can actually
experience the LG products in his or her own home settings.
134
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.
135
products.
LG Electronics, which is originally a South Korean Company with
branch in India, informed that its sales of GSM mobile phones,
110 billion rupees.
of LG exports to 40 countries.
India challenges
The challenges faced by LG when entered in Indian market
136
6. Low brand awareness about LG in India.
7. One of the last MNCs entered in India (Samsung, Panasonic
entered in 1995 in India).
8. High import duty
9. Compitition from local market players and other MNCs in
consumer durable segment.
10. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as

Innovative marketing strategy
4. Launch new technologies in consumer electronic and home
appliances.
5. LG was the first brand to enter in cricket in big way a way, by
sponsoring the 1999 world cup followed it up in 2003 as well.
6. LG brought in four captains of the Indian cricket team to
endorse its products. LG invested more then US$ 8 million on
advertising and marketing in this sport.
7. LG has differentiated its product using technology and health
benefits. CTV has “Golden eye technology” Air conditioner
has “Health air system” and microwave ovens have the
“Health wave system”.
137
Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manufactures TV refrigerator
in India at manufacturing facility at Noida and Pune. LGEI had
already commissioned contract manufacturing at Mohali Kolkata
and Bhopal for CTVs. This has helped LGEI to reduce cost.
LGEI implementing the “Digital manufacturing system” (DMS) as
the cost cutting innovation this system is follow-up to the six
sigma exercise LGEI had initiate earlier.
R&D potential
LG has the research and development facilities in Bangalore and
Pune. Both the unit carry out R&D department for the domestic as
well as the parent company it also dose customize R&D for the
specific countries to which it export product.
Regional channel and wide distribution network
138
1. LG 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 also follows the stock rotation policy rather then dumping
stock on channel partners.
Product localization:-
1. Product localization is the key strategy used by the LG

2. LG came out with Hindi and regional language menus on its
TVs.
3. Introduced the low-priced “Cineplus” and “sampooma” for
the rural market.
4. LG was the first brand to introduce gaming in TVs in
continuations of its association with cricket LG introduce
cricket game in CTVs
MAJOR KEY SUCCESS FACTORS
139
1. Innovative marketing - LG was the first brand to enter cricket
in a big way, by sponsoring the 1999 World Cup and
followed it up in 2003 as well.
2. Local and efficient manufacturing to reduce cost - To

overcome high import duties, LG manufactures PC monitors
and refrigerators in India at its manufacturing facility at
Noida, Delhi.
3. Commissioned contract manufacturing at Mohali, Kolkata

and Bhopal for CTVs.
4. Product localization - Product localization is a key strategy

used by LG. It came out with Hindi and regional language
menus on its TV.
5. Regional distribution model - This has resulted in quicker

rotation of stocks and better penetration into the B, C and D
class markets.
6. Leveraging India’s IT advantage - LG Electronics has

awarded a contract to develop IT solutions to LG Soft India
(LGSI). The project involves development and support for
ERP, SCM, CRM and IT-enabled services for LG.
140
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.
141
LG PUNE
LG Pune is the branch office of LGEIL. It is
located in J.M Road.In 2004 LGEIL opened second factory which

is located in Ranjangaon. This plant manufactures all product
including DVD writers and GSM mobiles. Thus it became first
company to manufacture DVD writer in India. The ODP plant
aims to reach a manpower base of 1500 people and an investment
of Rs 300 crore till 2010.
LG India will become the export hub for LG Worldwide, catering

to the Middle East and African markets. The company aims to
touch an export turnover of $3 billion by 2010 from India, which
will contribute to 30 per cent of the Indian arm's turnover.
Pune, India, October 6, 2004 -- LGE announced 3 growth

strategies aimed at the 1.1 billion people of India making the
Indian market the second largest global production base following
China. Under this strategy LGE has projected 2007 revenues in
India will exceed US$10 billion, 10 times that of 2004.
142
The three strategies for the Indian market that the global
electronics giant disclosed. included: penetrates the south-western
market of India through the new Pune plant near Mumbai, the
second largest city in India, in addition to the existing northern
plant; installs a new GSM handset production line in the new Pune
plant and uses it as its second-largest global GSM handset
production line after the Qingdao plant in China; and expands the
current 750 R&D staff in India to 1,500 by 2007, striving to
develop premium products and export 30% of India-manufactured
products to Asia, Middle East and Africa markets by 2007.
LG Electronics’ second new plant in Pune, India covers a total area

of 211,200 square meters and is currently equipped with a
production line to manufacture 600,000 TVs and one million
refrigerators a year. The company is set to add production lines of
air conditioners, washing machines, monitors, and electronic
ovens, by 2005.
Also, LG Electronics is poised to install a GSM handset

production line in the new Pune plant by early next year. The Pune
GSM handset line envisages a capacity of manufacturing 2 million
143
handsets annually, and the company expands it to become a global
GSM handset production base with a capacity of an annual 10
million units by 2010.
In connection with its three growth strategies for the Indian

market, LG Electronics will invest a total of US$150 million in
establishing facilities and boosting R&D efforts in India by 2007.
Specifically, it will invest US$53 million in the Pune second plant,
another US$43 million in establishing the GSM line, and US$54
million in securing R&D manpower and boosting other efforts.
Through these strategies, LG Electronics aims to penetrate the
global market by using China and India as its core production
bases, while operating its plants in Changwon and Gumi, Korea, as
its main production bases. This way, the company is pushing to
penetrate the global home appliance market.
The present capacity of the facility is of 1 lakh unit per year and it
shall cater to the need of the domestic markets. LG plans to
upscale its operations to a figure of 2.5 lakh units a year in the near
future. The Pune plant in addition to its current manufacturing
facility at Greater Noida will enable the company to enhance its
consumer reach and reiterate it’s commitment towards providing
superior technology products to the India consumer.
144
The key strategies being implemented include increasing the
number of its regional offices from six to eight. LG has split its
southern regional office into two, one comprising the states of
Tamil Nadu and Kerala and the other consisting of Andhra
Pradesh and Karnataka. In addition, it has split one of its northern
regional offices by making Uttar Pradesh a separate region after
spinning it out from Delhi NCR. The other four regional offices
take care of East, Gujarat and Madhya Pradesh, Maharashtra &
Goa and Punjab, Haryana & Rajasthan respectively.
In the coming year, LG is also repositioning its marketing spends,

resulting in a significant increase in its mass media expenditure for
better brand visibility. LG had a marketing budget of Rs 320 crore
in 2007 with a 60:40 split in favor of below-the-line activities.
Next year, the company plans to increase the share of mass media
even as overall marketing spends would be raised by just about 10-
15%.
145
LG Pune is the branch office of LGEIL.It is located in J.M
Road.
The organization structure is –one branch manager, one chief

accountant, and area sales manager of CE, HA separate for GSM,
Marketing manager for CE, HA and separate for GSM.The Pune
branch has warehouse at wagoli.
B.M
A c c ou nt S R .B S I
ASI
M . G I. T.Z .ML .H .D A .M C A C A .M A CA M M . AT M G S MB S I G S MB S I G S M
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146
Distribution and Marketing
The company has number of dealers and warehouses. They have

LG exclusive shopee. For the marketing of the products a number
of activities are followed
1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the
attention of the costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meting at
several time in the year
7. LG divide dealer in gold silver etc. category to know the
performance of the dealers.
8. They have their sales persons at various sub dealer store
and at mordent trade store for particularly for the promotion
of the LG product.
9. LG also uses the radio FM for the promotion activities.
10. Also provide capon and scratch card for festive season.
147
The logistics (Supply Chain Management)
Visit to warehouse of LG Pune at Wagoli
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.
5R’s of Logistic followed by LG:
148
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
LG Pune Distribution
LG Pune comes under the western Distribution Region. This

region has following
1. Pune
2. Kolapur
3. Sholapur
4 Satara
5 Sangli
149
The LG Factory is located at NOIDA & PUNE. There are three
types of Warehouse-
1. Mother Warehouse
2. Branch Warehouse
3. Spare part warehouse
The mother warehouse is that where the products from the factory
are kept and from that warehouse, the products are sent to the
branch warehouse.
A warehouse is a commercial building for storage of goods.

Warehouses are used by manufacturers, importers, exporters,
wholesalers, transport businesses, customs, etc. They are usually
large plain buildings in industrial areas of cities and towns. They
come equipped with loading docks to load and unload trucks; or
sometimes are loaded directly from railways, airports, or seaports.
They also often have cranes and forklifts for moving goods, which
are usually placed on ISO standard pallets loaded into pallet racks.
150
The Pune warehouse is located near Wagoli. It is 13670 sq. feet
in area.
In warehouse 7 locations is set up for the products.
Loc 1, Loc 2, Loc 3, Loc 4 , Loc 5 ,Loc6, Loc 7
Loc 1 – selling
Loc 2 - second sale
Loc 3 - insurance claim
Loc 4 - write off material
Loc 5 – destroy the item
Loc 6 - court case material
Loc 7 - for repair
5’s of warehouse, which the LG strictly follow.
1. Sweeping
2. Sorting
3. Systematic Arrangement
4. Simplification
5. Self- discipline
151
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
Distribution Time:-
• Local delivery – 4 hrs.

• Upcountry delivery - 12 hrs.
• Within 200 km. – 24 hrs.
• Beyond 200 km. – 48 hrs.
The above distribution time is the time of delivery of products
from warehouse to the market place, which the logistic department
follows to fulfill the demand in the market at right time. In LG, we
have the following process, which is followed in logistic through
ERP.
• Order Processing
• Invoicing
• Indenting
• Report
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Order Processing booking for dealers /distributors
Invoicing after billing process/bill generation
Indenting requirement (Pdt Unit to branch unit)
Report distributed to all
In warehouse, there are two mode of dispersion of product from

one place to another within. a) Hydraulic b) Manual
In addition, there are 35 fire extinguishers to prevent the accidental

hazard within the warehouse due to fire. These fire extinguishers
are valid up to year 2011. One has to follow the rule of “NO
Smoking” within the warehouse
153
Logistics Ten Commandments – Golden Rules
1 - Warehouse 5S – to be strictly followed – FG – 2, 5 & 7 to be

properly maintained.
2 - 100% Bar-coding for all inward & outward transaction.
3 - Follow standard pick – ship process religiously.
4 – No inventory mismatch, shortage or excess – monthly 100%

physical stocktaking.
5 – Nil 30+ for FG – 2, 3 & 5.
6 – Nil transit damage.
7 – File insurance claim within 2 days. Settle all claim all within
30 days.
8 – No inter – branch transfer without HO clearance.
9 – PSI feeding into system by 25th of every month. Ensure 90%

accuracy.
10 – Apply physical FMFO.
154
Problem
1- In transit material damage checking.

2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply
Equipments
1- 100% Bar code scanner.

2- ERP – Invoice Generation Process.
3- Hydraulic Trolleys for material movement.
4- Pallets for safety of material.
155
WAREHOUSE WITH THE EQUIPMENT.
156
WAREHOUSE: REFRIGERATOR AND CTV SECTION
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:
157
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches
available to the researchers. In fact, it is the key to the evolution of
successful marketing strategies and programmers. It is an
important tool to study buyer’s behavior, consumption pattern,
brand loyalty, and focus market changes. A research design
specifies the methods and procedures for conducting a particular
study. According to Kerlinger, “Research Design is a plan,
conceptual structure, and strategy of investigation conceived as to
obtain answers to research questions and to control variance.
Types of research is:
• Descriptive Research
The type of research adopted for study is descriptive. Descriptive

studies are undertaken in many circumstances when the researches
is interested to know the characteristic of certain group such as
age, sex, education level, occupation or income. A descriptive
study may be necessary in cases when a researcher is interested in
knowing the proportion of people in a given population who have
in particular manner, making projections of a certain thing, or
158
determining the relationship between two or more variables. The
objective of such study is to answer the “who, what, when, where
and how” of the subject under investigation. There is a general
feeling that descriptive studies are factual and very simple. This is
not necessarily true. Descriptive study can be complex, demanding
a high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs

to be flexible in its approach, but a descriptive study in contrast
tends to be rigid and its approach cannot be changed every now
and then. It is therefore necessary, the researcher give sufficient
thought to framing research.
Questions and deciding the types of data to be collected and the

procedure to be used in this purpose. Descriptive studies can be
divided into two broad categories: Cross Sectional and
Longitudinal Sectional. A cross sectional study is concerned with a
sample of elements from a given population. Thus, it may deal
with household, dealers, retail stores, or other entities. Data on a
number of characteristics from sample elements are collected and
analyzed. Cross sectional studies are of two types: Field study and
Survey. Although the distinction between them is not clear- cut ,
159
there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific
inquiries that aim at finding the relations and interrelations among
variables in a real setting. Such studies are done in live situations
like communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has

been taken by me. A major strength of survey research is its wide
scope. Detail information can be obtained from a sample of large
population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample
survey needs less time than a census inquiry. Descriptive research
includes survey and fact finding enquiries of different kinds of the
major purpose. Descriptive research is description of the state of
affairs, as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables; he
can only report what has happened or what is happening. The
methods of research utilized in descriptive research are survey
methods of all kinds including comparative and co relational
methods. The reason for using such needs to be flexile in its
approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed ever now and then.
160
DEALER MANAGEMENT
Mapping of Pune region dealers.
In Pune region there were total 180 dealers including the up

country side They have been divided into three categories on the
basis of their turnover and the selling capacity.
 PUNE -1
 PUNE-2
 PUNE-3
PUNE
BRANCH
PUNE 1 PUNE 2 PUNE 3
PUNE-1 Includes the modern trade and they have direct billing
from the branch office. They have high turnover and the company
depends heavily on them
161
PUNE-2 includes the distributors. They have direct billing from
the branch office.Their turnover is also high.
PUNE-3 Includes the sub dealers .They have direct billing from
distributors or from the branch office. Their turnover is not so
high, but there are few sub dealers whose potential is quite high.
According to sales the branch has designated as gold and silver sub
dealers.
OBJECTIVE OF THE STUDY
The objective was to find out the market share of LG products,

advantages, and disadvantages of LG products from dealers and
to find out what problems they are facing with the LG products
so that problems can be resolved to increase the sale.
162
PICTURE SHOWING THE PRODUCT OF LG IN ONE
OF THE SHOP
Data collection methods:
After the research problem, we have to identify and select which

type of data is to research. At this stage; we have to organize a
field survey to collect the data. One of the important tools for
conducting market research is the availability of necessary and
useful data.
Primary data: For primary data collection, we have to plan the

following four important aspects.
 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and
various literature studies are important sources of secondary
data.
 Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
163
Questionnaires:
This is the most popular tool for the data collection. A

questionnaire contains question that the researcher wishes to ask
his respondents which is always guided by the objective of the
survey.
Pie chart:
This is very useful diagram to represent data , which are divided

into a number of categories. This diagram consists of a circle of
divided into a number of sectors, which are proportional to the
values they represent. The total value is represented by the full
create. The diagram bar chart can make comparison among the
various components or between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name

implies, it consist of a number of whispered bar, which originate
from a common base line and are equal widths. The lengths of the
bards are proportional to the value they represent.
164
Preparation of report:
The report was based on the analysis and presented with the
findings and suggestions. The sample of the questionnaires is
attached with the report itself.
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire.

The one is made for the Customer.
No. of questions in questionnaires for customer: 07
No. of question related to LG product: 03
No. of people met during the research: 200
No. of respondents during the research: 50
Sample unit
Professionals, Business man,
Employees, House wife,
Working women, Students
165
COMMITTED TO SERVICE
166
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 what’s 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 don’t 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 what’s 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
167
two or more year’s 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.
LG also had a big problem of after sale service in India. During

my project I also came to know that after sale service becomes the
big issue in Pune region. Customers as well as dealer were facing
the problem of after sale service. Because of this problem many
dealer in Pune region were not ready to sale LG product. So it
becomes the big issue.
But LG has taken some solid steps towards improving customer’s

perception and experience of after sales service. Because it very
important in competitive market to provide the best service.
L G Electronics has signed a memorandum of understanding with

23 Industrial Training Institutes to strengthen its after sales service
in India.
168
The company aims to recruit 10,000 people by the end of this year
as a part of its branding strategy to focus on service and move
away from discounting.
L G Electronics has identified eight states with high after sales

service call rates to ink the deals with the ITI. Y V Verma, director
HR and management system, LG Electronics said, "The Company
was trying to find a solution for effective after sales service since
last two years. There is a huge need of trained manpower for the
after sales service to align with the company's expansion and focus
on the GSM mobiles and the personal computer segments."
1. In the initial phase the company has entered into agreements

with ITIs in the states like Maharashtra, Gujarat, Delhi,
Punjab, Assam, and Karnataka and is in the last leg of
signing with Uttar Pradesh.
2. L G Electronics, with 1200 service centers, has already

recruited 300 students and plans to beef up the number to
10,000 by the year-end.
3. "The company has offered a scholarship to the selected

students for the last six months of their training programme,"
169
4. The company will invest Rs 8 crore (Rs 80 million) in
employee development programme this year with an aim to
attain a 8 per cent attrition rate.
5. The company moved away from the discounting strategy

since last year and is putting thrust on the quality and service
in its brand communication to position LG as a premium
consumer electronics brand.
6. At the top, the Service Division in Korea reports to the Global

CMO. (as mentioned in Dermot’s public interview in ET on
Wednesday). This shows commitment that Service must be
made into a marketing differentiator, and leveraged thus.
7. LG has the widest service network across the country; some

estimates put it at a significant multiple of service-
infrastructure from our nearest competitor. While the sale size
may also be a nice multiple from nearest, it shows the
company is ready to put our money where our mouth is.
8. The company has introduced a 211 service - once you register

your complaint, we will call you back in 2 hours (hence 2),
set up an appointment for the next convenient day for you
(hence the first 1), and show up in the promised 1-hour slot
170
(hence the second 1). If the next convenient day for you is the
next day, that’s great too. It’s a disruptive action in an
industry (including LG) having traditionally shied away from
its service responsibilities, and thus not leveraging any
mileage from it.
9. The company is promoting 211 through ATL, probably the

first time after-sales service is being communicated in this
fashion by any product company. You may have seen the TV
commercial or heard the radio advert or seen the newspaper
ad or in-shop posters, both of which revolve around prompt
response.
10. The first LG-owned service centre opened in Gurgaon. (Service in

India generally works through authorized service centers, in LG’s
case they work exclusively for LG.) A company-owned service
centre tries that much harder, knows things better, and can even
contribute as a revenue center.
171
R&D INNOVATIONS
To become a Top 3 global company, LG Electronics is firmly

committed to investing in R&D and Design to create products with
the most highly valued technology and style. By perfectly
matching function to form, these products emotionally connect to
our customers. Our achievements in R&D and Design have made
LG Electronics a global leader in CDMA handsets, optical storage,
DVD players, residential air conditioners, plasma panels, and LCD
displays. Our R&D is driven by the dreams of our customers.
Because technology innovation is the key to success, we focus our
energy on developing globally unrivaled products. At the same
time, we seek to identify future growth opportunities in new
business areas. Our Design Center is guided by its vision of "using
design to inspire trust and make a lasting impression", defining
concept, style, interface, and finish as the four core elements of its
design standard. We never cease researching what customers value
most in creating designs that will define the future. As more
products come with intelligent microchips and networking
functionality, designers also become inventors, harmonizing
172
technology with human needs. In R&D, we focus on creating a
digital world that empowers and enriches people's lives. Our
strategy is to set the standard in technologies that link to the
Internet, while continuing to develop world-leading products.
In 2006 we introduced the world's first 60-inch single scan PDP

module, the world's highest performance LCD monitor, the world's
largest PDP TV at 102-inch, and the world's first player for both
Blu-ray and HD-DVD. We also launched the world's first MP3
player with terrestrial DMB and the World Phone for 82 countries.
Our R&D facilities include the Corporate Institute of Technology,
Production Engineering Research center, and 36 research labs
throughout the world. Our investment plan focuses on high-growth
areas-mobile handsets, flat panel displays, car infotainment,
system air conditioners, and home networks.
LG Electronics designers have increased the value of LG products

through the magic of "design" to create aesthetic and easy-to-use
products. In 2006, we announced our intention to become a
"design-minded company" through three initiatives:
173
1. Designers can initiate innovative ideas in a cross-
functional team with engineers, product planners,
and marketers.
2) Designers are also involved in product planning, including

product displays and promotions.
3) Designers will receive special recognition with the new "Super

Designer" title.
Our devotion to design has been appreciated by prominent design

organizations, resulting in winning prestigious design awards
every year at home and abroad, including the IDEA Award, iF
Design Award, reddot Design Award, Good Design Award Japan,
and Korea Good Design Awards. There are now LG Design
Branches in Milan, Beijing, New Jersey, Tokyo, and New Delhi,
all working to achieve our vision of being a "Digital Life
Originator".
174
WARRANTY
Warranty - Air Conditioner
The LG Air Conditioner comes with 12 months warranty on all

parts except front grill & plastic parts and, thereafter 4 year
Additional warranty on the compressor, from the date of purchase
of the product, provided always that the warranty card bears the
rubber stamp, date and signature of our Authorized Dealer.
4 Years Additional Warranty on Compressor

The 4 year warranty on Compressor will be continue even after
the expiry of 1 year period from the date of purchase. This
warranty covers Compressor only. (LGEIL) has it's Authorized
Service centre, Service outside municipal limit will attract to
and fro traveling, other incidental expenses in addition to
standard visiting charges, as prevailing from time to time.
During the warranty period, only the parts replaced or repaired
175
shall be free of costs, but service charges shall always be
payable by the customer.
Warranty- Refrigerator
The LG Refrigerator comes with 1 + 4 year warranty, from the

date of purchase, that comprises of a 1 year warranty on all Parts
(except Light Bulb, Consumables, Loose Plastic Parts, Glass) in
the first year and thereafter a 4 year Additional warranty on the
compressor, from the date of purchase of the product, provided
always that the warranty card bears the rubber stamp, date and
signature of our Authorised Dealer.
4 Year Additional Warranty on Compressor
The 4 year warranty on Compressor will continue even after the

expiry of 1 year period from the date of purchase. This warranty
covers Compressor only. Gas/Gas Charging will be charged to the
customer. Gas charging is included only when compressor is
defective & inoperative. During the additional warranty period, it
does not cover any part such as condenser, freezer, capillary,
suction line, overload protector, relay, thermostat etc.. Standard
176
visiting charges will be applicable within the municipal limit of
town where LG Electronics India Pvt. Ltd.
Warranty - Color Television
The LG Product comes with 1 year warranty, from the date of

purchase, that comprises of a 1 year warranty on all Parts (except,
Consumables, Loose Plastic Parts) in the first year provided
always that the warranty card bears the rubber stamp, date and
signature of our Authorized Dealer.
Warranty - PERSONAL COMPUTER
Warranty period
Warranty of Personal Computer varies from 12 months to 36

months
How to check the product warranty
1. Note down the exact Model Number from the Product. This
can be found on the back side of your machine
177
2. Warranty is given by 3rd last digit
-- 1 12 Months Warranty
Example shows Model number and their Respective Warranty

information is given below.
XDT-L04ARP1.BCI0 1 L7 1 year warranty

XDT-L04ARP1.BCI0 A 17 1.5 year warranty
XDT-L04ARP1.BCI0 3 17 3 year warranty
Warranty - LCD Monitor
This LG Monitor comes with below mentioned Comprehensive

warranty from the date of purchase of the product, against
defective material workmanship. In case of defect, LG Electronics
India Pvt. Ltd. Undertakes to get the set repaired free of charge
during warranty period.
S No Model Type Warranty Period Type of Warranty
1. 15"(38 cm) CDT 2 Years On Site
2. 17"(43.18 cm) CDT 3 Years On Site
3. All LCD Monitors 3 Years On Site
178
Warranty – NOTEBOOK
This LG Notebook PC comes with 12 months carry in warranty on
all parts (except Software) from the date of purchase of the
product, against defective material workmanship. In case of defect,
LG Electronics India Pvt. Ltd. undertakes to get the set repaired
free of charge during warranty period.
Terms & Conditions
1. The warranty is confined to the first purchaser of the LG

product only & is non-transferable.
2. Repairs & replacements will be carried out by the dealer from
whom the product has been purchased, or through the
Authorized Service Centers of LGEIL. In case the customer
shifts the place of residence during warranty period, it is
advised to contact Authorized Service Centre directly or call
our help line no's (toll free).
179
3. Repairs under warranty shall be carried out by an authorized
service personnel only. The details of centralized help lines
are as overleaf.
4. For units installed beyond municipal limits of the jurisdiction
of company's Authorized Service Center, it is responsibility
of the purchaser to contact the nearest authorized service
center and bring the unit to the authorized service center at its
own cost and risk. All expenses incurred in collecting the
units or parts thereof from the company's authorized service
center, as well as expenses incurred with deputizing of
service personnel/technicians towards conveyance and other
incidentals etc. will be borne by the customer. Local Charges
for transportation and handling charges may vary from
location to location. Customers are advised to verify before.
5. The concerned authorized service center will advise the
customer whether to effect the repairs at site or at the
authorized service center.
6. Call registered with the centralized helpline/Authorized
service center, wherein only software updation (chargeable to
customer), cleaning of the unit/parts, adjustments, general
explanations are not to be considered as defects.
180
7. In case of repairs or replacement of any part/s of the unit, this
warranty will thereafter continue and remain in force only for
the unexpired period of the warranty. Replacement of parts
would be purely at the discretion of LGEIL alone. In case the
replacement of the entire unit is being made, (subject to the
sole discretion of LGEIL), the same model shall be replaced
and in the event such model has been discontinued, it shall be
replaced with the model equivalent as deemed by LGEIL. The
warranty on replacement model shall remain in force only for
the unexpired period of the warranty based on original
purchase.
8. In case of any damage to the product / customer abuse/
repairs by un-authorized personnels / misuse detected/ by the
Authorized Service Center personnel, the warranty will be
considered void and shall also not be applicable to warranty
terms & conditions. Also repairs will be done on chargeable
basis only, subject to availability of parts.
9. This warranty shall not cover any consequential or resulting
liability, damage or loss to property or life arising directly or
indirectly out of any defect in the LG product. The company's
obligation under this warranty shall be limited to repair or
181
providing replacement of defective parts only under the
warranty period.
10. The company or its Authorized Service Center reserves the
right to retain any part/s or component replaced at its discretion, in
the event of a defect being noticed in the equipment during
warranty period.
11. While the company will make every effort to carry out repairs at
the earliest, it however is made expressly clear that the company is
under no obligation to do so in a specified period of time.
12. Warranty does not cover accessories external to the
equipment supplied by the dealer /LG as promotional scheme.
13. If any coloured internal or external components are replaced,
there will be commitment to ensure that the shades match with the
original or other components. The replaced shades, patterns, tints
may vary from the customer's unit due to continuous usage of the
unit. Any matching components changed at customer's request will
be on chargeable basis except the component which actually
needed.
14. In case of LCD Monitor, One bright dot (anywhere on the
screen) shall not be treated as defect and will not be covered under
warranty. Also permissible level of Bright dot / black dot is 5 dots
182
anywhere on the screen and shall not be treated as defect for repair
/replacement of TFT Panel.
15. The unit shall be operated with variation of + 5% of rated
voltage at 50Hz. Any failure due to voltage / fluctuation beyond
specified tolerance will not be covered under warranty.
his Warranty is not applicable in any of the following cases:
1. All Software programs, including the operating systems and

software added to this product whether preloaded or shipped
with the machine, or installed subsequently.
2. Installation of Hardware, Software and Networking.
3. The warranty card is not completed properly at the time of
purchase.
4. LG is not responsible for the loss of any of your confidential,
proprietary, personal and corrupted data.
5. Configuration of Drivers, Network Optimizations, BIOS
updates, System /Data Recovery.
6. The warranty is not valid in case of removal or alteration of
any identification labels on the machine or any of its
components.
7. No retailer has authority to vary the terms of above warranty.
183
8. Any repair work is carried out by persons other than
authorized service personnel.
9. Defects are caused by due to causes beyond control like
lightening, abnormal voltage, acts of God or while in transit
to service center or purchaser's residence.
10. In Case proof of purchase is not available or purchase proof
does not bear the corresponding model and/or the serial number of
the unit.
11. Battery backup time shall gradually reduce over period of
usage and shall not be considered for reason for replacement under
warranty. In case notebook is stored for longer duration then it is
recommended to remove the battery from the unit.
This warranty will automatically terminate on the expiry of the
warranty period as specified above, even if LG product may not be
in use for any time during the warranty period for any reason.
184
LG ELECTRONICS INDIA PVT LTD
SERVICE CENTER NOT RESPONDING WELL
I Had Purchased lg multi split AC 2T LMA24TWAS1 on 26 may

2009 vide bill no 09R801862 from lotus electronics suryaasadhna
survey no 182/2/1, choti Khajrani indore-01. tel no 0731-4265666.
which was installed by temperature control, lg-9, ahinsa tower, 7
m.g. road, indore-01.tel no 9302108173 sent by lotus themselves.
On 28 may 09 1 unit of the multi split ac was not switching on. on
contacting lotus again the same team from temp control came on
29 may 09 and took a component 'PCB' out vide service report no
C9E2911.it was intimated that it will be repaired by 01 jun 09.The
same has not been replaced or repaired till today. On contacting
the service center they are not properly attending the call neither
they are informing about status of complaint. thus this problem has
taken now 9 days. air conditioner is still not working and
authorised service center is not reponding or repairing it.
185
ANNUAL MAINTINANCE PLAN
Happy Living Promise
It is a new way of life being offered exclusively by LG Electronics

for its valued customers. By extending this promise we show that
we at LG always care for your needs. It is a promise that ensures
complete freedom from all worries related to the product.
Happy Living Promise ensures that we are always there at each

step.
Happiness is Just a Call Away
186
Just pick up a phone, and we are there at your service! Call
us at 1860 180 9999 ( BSNL-MTNL) / 39 01 0909( Pvt ops)
You get a response within 24 hrs of your call! Thanks to our wide
service network.
Professional Care
We ensure smooth functioning of your product, through

assured mainten-ance visits.
Our absolutely genuine spares assurance means that you no longer

need to worry over spares!
Get Lucky with LG
Our absolutely genuine spares assurance means that you no longer

need to worry over spares!
187
Service Free Remission
Enjoy the benefits of No Claim Bonus Scheme. Avail

fabulous discounts on repurchase of Happy Living Plans
Happy Living Comprehensive Plan
188
Tenure
Category Product Prices
(in Yrs.)
Air Conditioner Window AC 1 1450
Air Conditioner Split AC 1 2000
Air Conditioner Split AC / Packaged AC 1 4000
Color Television Color TV 14"/15"/20" 1 300
400
Color Television Color TV 21" FLAT 1
Color Television Color TV 29" FLAT 1 750
Flat Panel Display LCD TV 20"/23" 1 1500
Flat Panel Display LCD TV 26" 1 2000
Flat Panel Display LCD/PDP TV 32" 1 2500
Flat Panel Display LCD/PDP TV 37" 1 3500
Flat Panel Display LCD/PDP TV 42 " 1 4500
Flat Panel Display PDP TV 50" 1 7000
Flat Panel Display PDP TV 60" 1 10000
Microwave Oven Microwave Oven Solo 1 500
Microwave Oven Grill /

Microwave Oven 1 750
Convection
My PC Desktop PC 1 1500
My PC Notebook PC 1 3500
Refrigerator Direct Cool 1 550
Refrigerator Frost Free upto 310lt. 1 750
Refrigerator Frost Free 320 - 490lts. 1 1200
Refrigerator Frost Free 500lts. & above 1 2000
Refrigerator Frost Free DIOS 1 5000
Washing Machine Semi Automatic WM 1 500
Washing Machine Fully Auto Top Load 1 800
Washing Machine Fully Auto Front Load 1 1450
Extension Plan of LG
189
LG Electronics India Ltd. announced its extension plan in 2006.
The company is going to invest $250 million in India by 2011 and
is planning to establish a manufacturing facility in Pune.
In a survey conducted by Business World in 2006, LG Electronics

India was ranked as No. 2 in the consumer durable sector and was
given the following scores based on the different parameters: LG
Electronics India
LG Electronics India
Innovativeness 253.1
Quality & Depth of 212.0

Management
Financial Performance 209.1
Ethics & Transparency 209.1
Quality of Products & 244.0

Services
Talent 228.9
Management/People
Practices
Global Competitiveness 269.9
Total Score 1626.0
190
Leadership
191
INVESTMENT AND LG ELECTRONICS INC. - ALL NEWS
AND ANALYSIS
LG PHILIPS INVESTING ADDITIONAL 24.1 MILLION

USD
2005-07-14 to fdi.gov.cn: July 12 sources from LG China

show the world's largest LCD manufacturer LG Philips has
announced to substantially increase investment in its Chinese
subsidiary. The promised investment is 24.10 million USD,
used to raise the compaAccording to fdi.gov.cn: July 12
sources from LG China show the world's...
Tags: investment, LG.Philips LCD Co. Ltd., LG Electronics Inc.
CHINA: LG PHILIPS INVESTING ADDITIONAL 24.1

MILLION USD.
2005-07-14
According to fdi.gov.cn: July 12 sources from LG China

show the world's largest LCD manufacturer LG Philips has
announced to substantially increase investment in its Chinese
subsidiary. The promised investment is 24.10 million USD,
192
used to raise the According to fdi.gov.cn: July 12 sources
from...
Tags: investment, LG.Philips LCD Co. Ltd., LG Electronics Inc.
Rolling in the Dough; A dozen companies in South Korea now

make over a billion dollars in profit, thanks to their new,
Westernized profiles.
2005-05-23
Byline: B. J. Lee With John Sparks in New York Hyundai

Asan was in big trouble. In 2003 chairman Chung Mong Hun
committed suicide while under investigation for money
transfers to North Korea. The company, which focuses on
tourism and other businesses in the ...
Tags: Branding, chairman, FINANCE, Hyundai, Hyundai

Motor Co....
LG Electronics to invest US$15 million in 2005.(LG

Electronics Indonesia)(Brief Article)
193
2004-12-01
PT LG Electronics Indonesia LGEIN said it will increase

investment by US$15 million in 2005 bringing its total
investment to US$90 million in the country. Company
spokesman Moon Ik Jang said the additional investment will
include for research and d PT LG Electronics Indonesia
LGEIN said...
Tags: investment, LG Electronics Inc.
Woori Financial Group Announces Consummation of

Agreement for Acquisition of Shares of LG Investment &
Securities
2004-09-23
NEW YORK -- Woori Finance Holdings ("WFH")

consummated an agreement for the acquisition of LG
Investment & Securities ("LGIS") on September 23, 2004.
WFH will acquire 25,877,487 shares of common stock, which
comprises 21.2% of LGIS's common stock outstanding. The
purchase price has been agreed to 11,500 won per share,...
194
Tags: acquisition, agreement, Investment, LG Electronics Inc.,
purchase price...
LG TO LAUNCH ENGINEERING PLASTICS PROJECT IN

WEIFANG
2004-07-20
AsiaInfo Services 07-20-2004 LG to Launch Engineering

Plastics Project in Weifang WEIFANG, Jul 20, 2004
SinoCast via COMTEX -- Recently, the engineering
plasticsprogram of South Korea's LG Corporation, with a
total investment of USD40 million AsiaInfo Services ...
Tags: investment, LG Electronics Inc., plastics
SKorea's Woori bids for LG Securities
2004-04-06
195
SEOUL, AFP ? South Korea's second largest banking firm,
Woori Financial Group, has confirmed it was bidding to take
over LG Investment and Securities Co. Ltd. "Woori submitted
an official letter of intent to take over LG Investment and
Securities on Friday," a Woori Bank official said without
elaborating....
Tags: Agence France-Presse, Banking, FINANCE, Government,

Investment...
LG Card suspends cash payments but escapes default -- just
2004-01-08
SEOUL AFP ? South Korea's LG Card suspended cash

advances to customers but escaped default on maturing debt
as creditors offered a one-day lifeline to the country's largest
card issuer. Uncertainty over the future of LG Card shook
stock and bond markets and fanned fears that a possible
bankruptcy...
Tags: Agence France-Presse, Card, creditor, FINANCE,

Investment..., LG Electronics Inc., liquidity, payment
196
LG Indonesia increase investment to US$90 million.(Corporate
Investment)
2003-11-18
LG Electronics Indonesia LG plans to put up fresh fund to

increase its total investment to US$90 million next year
aimed at improving the quality of its products to be more
competitive in free market. Next year the company, apart
from expanding sal LG Electronics Indonesia...
Tags: investment, LG Electronics Inc.
LG Indonesia increases investment to US$90 million.

(Corporate Investment)(Brief Article)
2003-11-01
197
LG Indonesia increases investment to US$90 million LG
Electronics Indonesia LG plans to put up fresh fund to
increase its total investment to US$90 million next year
aimed at improving the quality of its products to be more
competitive in free mark LG Indonesia increases investment...
BEST PLACE TO WORK
LG ELECTRONICS INDIA – HR POLICIES
As we all know requirement of trained and experienced

Professional with the desired mindset is the need of the hour for
any Organization to Survive and Grow in this competitive
198
environment. While there is no dearth of Professionals in Indian
Industry and people are available in dime a dozen, but what is
most important and difficult to get is the right mindset. This can be
easily substantiated by the no. of applications for every job listed
on the famous jobsites. Needless to say that selection of the best
candidate with the desired mindset out of such large no of
applicants is a very tedious task. With the Business Goals being
very high the pressure on HR to reduce the time lag for filling a
position has substantially reduced. Normally a position, which was
reqd. a month to be filled up, has now got to be filled up in 10-15
days time. This has made the job still more challenging.
For example, LG has a On Line Recruitment

Management System. Under this prospective candidates visit our
website and can directly register their CV for any position listed on
the site. Similarly all consultants are also required to post their CV
thru this site. As a result duplication of CV is immediately
identified and not accepted. The CV then comes to the data bank
and for short listing/ screening both the functional users and HR
dept has got the rights. Once a candidate is rejected, immediately
199
an information goes to the consultant or the candidate. In case the
candidate is selected for interview then the information goes for
finalization of interview at specified date and time. This speeds up
the whole process as it does the initial screening of the vital
parameters in terms of age, qualification, experience etc.
LG also asks the candidates to undergo Psychometric

tests which throws up the complete profile of the person. Keeping
in view the Organizational Requirements of mindset, we look into
the aspect of organizational fit and decide whether the person shall
fit into the system or not.
Bold display of Organizational Culture is also done so as to help

align the mindset. Those not willing to accept the culture refuse to
proceed further for interview thereby saving the company of
valuable time and effort in inducting, grooming and developing a
person.
Once these candidates are hired, they undergo and

exhaustive induction programme for a duration of 14 days under
which the candidate is acquainted which each and every aspect of
200
the organization. A thorough integration with HR & Business
Processes takes place and the formulation of a KPI is done within
three days of taking the candidate onboard. Customer
Department/Vendor Department interaction also takes place.
LG as an organization takes pride in the fact that they have the

highest manpower productivity and the lowest manpower cost in
comparison to the industry. Infact LG is benchmarked in terms of
manpower costing.
Creative problem solving when it comes to employees is also LG’s

forte. The company has regular line meeting at the manufacturing
lines in the factory with the workers to discuss and solve their
problems then and there. Morning meeting are also the norm at LG
where the whole team gets together to motivate each other. LG has
come up with the unique concept of Pizza Meetings where the
whole departments meets up for a pizza treat and discusses issues
in an informal setting. HR melt-ins is also a regular feature at LG
where the HR department meets up with the employee having a
problem and their immediate senior to solve issues
Apart from HR melt-ins, departmental melt-ins also take place at

regular intervals in LG wherein the every member of a certain
201
department meets up to discuss and solve internal issues within
their department
LG also has a helpdesk facility for their employees to help them

overcome every aspect of their professional problem. Business
related problem solving is also a help tool available across board to
all employees and cross functional Teams and TDR's also exist
within the company.
Apart from the above, a host of facilities are provided to the

employees to make feel as comfortable and much a part of the LG
family as possible. All employees are given pick & drop facility
and are served breakfast, lunch and dinner. Workers get a chance
to take a half day break on request to come up with the innovation
of the day, so as to make the production process more efficient.
Team slogan shouting is done every morning to motivate workers.
World renown six sigma training is provided to all employees. The
blue collar employees are given English coaching classes and at
the end of every month one employee gives a speech in English in
front of MD and gets an incentive for the same.
202
CONSUMER SURVEY DURING EXHIBITION
From 16th to 25th May a consumer exhibition was organized at the

college of Engineering ground. The exhibition was sponsored by
Sakal group in which number of companies participated.
203
EXHIBITIONS PICTURES SHOWING THE PRODUCTS
Analysis:
Q1. Have you purchased any consumer durable during

Exhibitions?
 Yes
 No
204
Inferences
1. 65 % of Customer have not purchased any consumer durable

from exhibitions.
2. Only 35 % people have purchased.
3. It shows that consumers are coming in the exhibition for

knowledge of product and also they want to know that
weather there is actual price difference in exhibition and shop
or not.
4. Consumer also want to compare to the different brand which

are available in the exhibition.
5. So exhibitions are more useful to increases brand awareness.
6. People are less interested to purchase product from the

exhibition.
205
Q.2While purchasing consumer durable which parameter
influences you?
 Price
 Product feature
 Brand
 Service
 Durability
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.
206
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.
Q3. From where you prefer buying consumer durables
 Exhibitions
 Co.shoppee
 Showroom
207
Inference:
1. A majority of customers prefer to buy from showrooms. Very

less proposition of customers buys from Exhibitions.
2. 47% customers are prefer to by from the showrooms because

the showrooms are more convenient to customers they also
think that these shops give more discounts.
3. People are less interested to buy from the exhibition they only
visit the exhibition for price quotation of the product and the
comparison of the product.
Q.4.You prefer to buy from the same as you have mentioned in

Q.3 because of following reasons
 Attractive Price
 Service
 Demonstrations
208
 Offers
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.
209
.Which consumer durable you have and of which brand?
 CTV
 LCD
 PLASMA
 REF
 WM
 AC
Inference
In CTV section maximum customers have Onida, in LCD Sony is

the leader, In plasma BPL is the leader, In Ref LG is the leader,
MW LG is the leader. In WM there are companies and in AC also.
Q.6. How frequently you change your consumer durables?
 1-3 years
 3-5 years
 5-10 years
210
 More than 10 years
INFERENCE
1. Customers prefer to change consumer durables within 5-10

years. In India people do not change consumer durable
frequently.
2. 23% customers do not change their consumer durable within

10 year.
3. It represent that Indian consumer do not prefer to change their

consumer durable frequently.
Q.7.Do you prefer any financing scheme to purchase consumer

durables?
 Yes
211
 No
INFERENCE
Majority of customers do not prefer any financial scheme.
Dealer survey Findings
1. By calculating the display share we found that in most of

store LG has 50% display share almost all categories.
212
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.
3. It helps us to know that weather dealer is capable of being a

direct dealer of LG or not and it also helps to find out the new
dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there was
big problem of after sale service.
5. Many dealers were facing the problem of after sale service

because there is no follow up calls from LG.
6. Demo calls also not done properly.
7. The top competitor of LG product in Pune is SAMSUNG.

8. In Pune area the performance of LG is in better position but
the competitor also hold closer margin.
9. There is high growth of sale in market due to booming in new

technology and better service.
10. Word of mouth plays a vital role in awareness among customer.
This is one factor, which can play a good role in promotion of
products as well as demonstration given by the shopkeeper also
plays a vital role for customer.
213
RECOMMENDATIONS AND SUGGESTIONS
1. LG should improve it’s after sale service because its hits

badly LGs market share in Pune region.
2. More detailed customaries service is to be provided.

3. The training to 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. The marketing managers should make better relations with
dealers and reputation of the company.
8. Customer considers quality as their first preference, so the
company should give more stress on this.
214
9. The switching of customer from LG product to other brand is
due to the bed after sell service in shop.
10. The product is well aware and it is on top of mind of
customer. So company should always improve services and
update their technology.
CUSTOMER SURVEY FINDINGS
1. Secondary supports play an important role in the customers

mind and create awareness among the customers. The
secondary support includes Demonstration, Exhibition &
Even Sponsors.
215
2. From the survey it was found out that the majority of
customers don’t buy consumer durables from exhibitions.
They just visit the exhibitions to see the co. latest model.
3. They want to buy from the showrooms or from co.

showrooms. For them service is important .Beside
convenience and other factors service is key factor.
4. Also majority of customers do not want any financing scheme

for purchasing the durables.
5. There was heavy rush on weekends so large numbers of

ISD’s were appointed that day. Also the live demo calls helps
in selling. Exchange offers also generate sale.
6. Customers are also now very choosy in buying the product

and it is important for the company to make loyal customer of
their brand.
7. In survey we found that LG has captured maximum market

share in every category. LG dominates CTV, LCD, and
Refrigerator, and Washing machine, category.
8. LG and Samsung have bottle neck competition in TV and

REF. category.
216
9. The product is well aware and it is on top of mind of
customer.
10. Customers are also now very choosy in buying the
product and it is important for the company to make loyal
customer of their brand.
RECOMMENDATIONS AND SUGGESTIONS
1. Exhibitions do not help to generate so much sells but they

should be conducted regularly. This helps in generating
217
awareness regarding the product in customers which
ultimately helps in sales.
2. Also it is helps in advertising for the new products. Like in

this exhibition new LCD SCARLET was advertised.
Company should always focus on service.
3. Display share should be increased where there is less than

50% as LG also believes that “JO DIKHTA HAI WO
BIKTA HAI”.
4. Company should try to improve service. No doubt the

company products have technically edge over competitors but
in long run it may hamper the company’s profit.
5. Company should concentrate more on its major drivers LCD,

IT, and GSM.
6. Company should also cater to the needs of sub dealers as

some of the sub dealers have potential of high sales.
LIMITATIONS
218
Every study has certain limitations. In my study, also there were
certain limitations, which I could not able to solve.
1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs
in product sale of different brands, which affected the
perception of the customer. This was biggest drawback of my
study.
3. Time factor was also important for me. I had only 60 days to
complete my research, for which a full-fledged report was
insufficient for me.
4. The customer filled the questionnaire mostly in careless
manner, so it was difficult to make them hold for time.
5. I had only found the upper-middle class family to fill up the
questionnaire, but generally, an average middle class family
was required for the study.
6. The sample size is also very small which represent my
research on consumer behavior
219
LG Electronics - A Multi-National Corporation
LG Electronics is a multi-national corporation with 3200

employees working for its head office, plants and 40 regional
& branch offices across the country. LG Electronics strives
to provide its customers with new products and
technologies. LG Electronics is a world-class
electronics/telecommunication giant.
PRESS RELEASE
220
With a "Don't Just Watch It, Live It" message, LG Electronics
today launched a new global integrated marketing campaign
focusing on the company's premium "Full HD" 1080p flat-panel
high-definition televisions (HDTVs).
The global campaign is first seen in the United States and will roll
out to more than 70 countries worldwide over the next month. LG
Electronics will invest approximately $25 million in the U.S. and
substantially more globally to highlight the ultimate viewing
experience delivered by LG's innovative 1080p liquid crystal
display (LCD) and plasma HDTVs.
Key elements of the campaign include a series of broadcast, print,

outdoor and online advertisements in three creative concepts all
featuring an LG Red Couch, which serves as a symbol of the
consumers' all-encompassing high-definition viewing experience.
The campaign also incorporates LG's corporate sponsorship of the
Cannes Film Festival and targeted public relations activities
highlighting LG's 1080p Full HD technology and stylish flat-panel
designs.
"The Red Couch campaign is a key initiative that addresses the
221
growing high-definition market and the expansion of our HDTV
product line," said Allan Jason, vice president of consumer
electronics marketing, LG Electronics USA, Inc. "LG is a global
leader in flat-panel HDTV technologies, and no company is better
positioned to deliver the Full HD 1080p high-definition viewing
experience."
The global campaign, developed by Young & Rubicam's

BrandBuzz, was produced in high-definition and will make its
network premiere in the U.S. on May 3.
AWARDS
222
As LG is declared one of the most awarded brand by all. Be it the
critic, the market or by you. At LG we believe each one of these
awards truly belongs to you as they are reflection of your trust &
satisfaction, not to mention our stringent quality control & process
like 6 sigma to give you the best of the products that meets global
standards. For us what matters most is you & we thank you for
making us the No.1 brand.
Award Name Awarded By
Most Admired Company in India A&M Magazine
Most Admired MNC A&M Magazine
No.1 Consumer Durable Company A&M Magazine
Best Marketing Company A&M Magazine
Most Ethieal MNC Business World
Techies Award Best Flat Screen Monitor Computer World
3rd Largest Exporter ESC2001
Business Today/ Hewitt

Best Employer
Assts
Business Today/ Hewitt

Best Employer
Assts
Enterpreneur of the year Ernst & Young
Gold Rating for Environmental Performance CII
No. 1Awareness Award. Business Today
Super Achivers Award : MD LGEIL CETMA
Green Technology Gold Award Green Tech Foundation
Best Designer Award -Art Cool Air Conditioner Business World & NIT
VAR India User Choice Award : Monitors VAR India
223
Most Admired Product - Microwave EFY
Award for IT Innovation Business Today
DIGIT/Jasubhai Digital
Most Trusted Brand -CD Writers
Media
EFY's Electronics Organisation of the Year Award for Television Electronics for You
Consumer Durable Retailer of the Year ICICI Bank
Excellence in Corporate Leadership & Entreprerenural Spirit CNBC TV 18
CNBC Consumer Vote

Most preferred Brand- CTV & WM
Awards
Maximum Imports & Third Highest Exports CONCOR
EFY Reader's Choice Award For Microwaves EFY
Outstanding Contribution in the field of HR CETMA
Outstanding Contribution in the field of HR MID DAY
Top Company :CDMA Handsets V&D
Top Company : Fixed Phones V&D
Best in Recruiting & Staffing RASBIC
CNBC Awaaz Consumer

Most Preferred Brand - CTV, WM, Computer & AC
Awards
4 P Award : Refrigerator and Air Conditioner 4Ps Power Brand Award
CNBC Consumer Vote

4P Power Brand
Awards
Most Trusted Brand - LCD TV, Plasma TV, AC, WM, Ref, PC Reader's Digest
Maximum Exports-Consumer Electronics ESC
Maximum Exports CONCOR
First Consumer Awards - CTV, Ref, WM, AC, MWO, PC Times Group
Business World Customer Loyalty Survey : Air-conditioner & Refrigerator Business World & IMRB
Top Newsmaker – Consumer Durables Business Today & Cirrus
Most Trusted Brand - TV, AC & HA Super Brands
Reader's Digest Trusted Brands: Platinum Awards- Airconditioner. Gold Awards- LCD
Reader's Digest
TV/Plasma TV, Ref, Washing Machine,PC
EFY Reader's Choice Award For IT & MWO EFY
India's Most Trusted Brands 2007 Brand Equity
224
Planman Consulting &
4 Ps Business & Marketing : India's 100 Most Valuable Awards
ICMR Ranking
Business Leadership Award in Consumer Durable Sector NDTV
Most Preferred Brand -CTVs, ACs, Ref.and Washing Machines CNBC
India Times- Mindscape

Loyalty Awards - Customer and Brand Loyalty in the Consumer Durables Sector
with Savile-Row
Avaya Global Connect Customer Responsiveness Awards ET Avaya Awards
EFY Reader's Choice Awards 2008 -Microwaves EFY
360 degrees, Times of

Smart Living Awards -TV, AC, Microwave & Washing Machine
India
Brand for Excellence 2008 VAR India
Reader's Digest Trusted Brand : Platinum Awards -AC. Gold Awards - LCD TV /Plasma TV,Ref,
Reader's Digest
PC
CNBC Awaaz Consumer

Most Preferred Brand- Consumer Electronics and Home Appliances
Awards
Most Admired MNC in India 4P’s Award
LG Electronics sweeps awards in the consumer durable

category at CNBC Awaaz Consumer Awards 2007
LG Electronics India Pvt. Ltd., today re-iterated their leadership

position, by being adjudged the most preferred brand in Colour
225
Television, Air Conditioners, Refrigerators and Washing Machines
category at the CNBC Awaaz Consumer Vote Awards 2007.
AWAAZ Consumer Vote 2007 holds special significance they

were conferred post a nation-wide extensive and exhaustive
research spanning 35 widespread locations and 42 products and
service categories this year. The locations adequately represented
the heterogeneous nature of India in terms of geography (zones)
and population size (town classes: metros, mini-metros and class I
towns). 10,000 consumers participated in the survey conducted by
international market research firm AC Nielsen ORG MARG.*
Elated at receiving the awards, Mr. Moon B Shin, Managing

Director , LGEIL said “LG has set benchmarks in excellence in
consumer durable standards and it was an honor to receive these
awards especially because it comes directly from the consumers. It
is the over whelming response that we have received from our
customers that LGEIL has able to scale these heights in the
consumer durable industry. It has been our endeavor to create an
exceptional brand which showcases the principles of the company
and I am confident that we will continue to grow and scale up our
design and delivery, to preempt present and future needs of our
customers.”
226
LG India has a market share of 25.6% in washing machines,
28.9% in air conditioners, 25.6% in Colour Televisions, 24.8% in
refrigerators and is the market leader in all these categories, as per
ORG data (Jun 2007)
- End -

Electronics, South Korea was established in January 1997 in India.
It is one of the most formidable brands in consumer electronics,
home appliances, IT hardware and mobile communications space.
In India for a decade, LG has earned a premium brand positioning
and is the acknowledged trendsetter for the industry.
LGEIL has achieved a turnover of Rs 8250 crore in 2006. LGEIL's

manufacturing unit at Greater Noida is one of the most eco-
friendly units among all LG manufacturing plants in the world.
The second Greenfield facility is located at Ranjangaon, Pune has
the capacity to manufacture GSM Phones, Colour Televisions,
Microwave Ovens, refrigerators and Optical Disc Drives.This is
India's first mobile phone manufacturing unit and also Asia's
largest Optical Disc Drive manufacturing plant.
227
LG Electronics is a global company that can introduce you to
the future. For its employees, LG Electronics offers
competitive salaries and a comprehensive range of benefits.
LG Electronics is an innovative company, designing and selling

products, reinforcing the fact that "Life's Good."
LG Electronics offers its employees opportunities to work on

exciting and innovative products that influence the lives of people
worldwide. If you are considering a career change or looking for
your first job, LG Electronics understands that the benefits that a
company can offer you are one of the first things you will
consider.LG Electronics is committed to being a global player,
offering competitive salary and benefits packages.
A Healthy and Balanced Life
228
LG Electronics is committed to helping its employees achieve
financial security and a better quality of life by offering them a
comprehensive and flexible benefits package. More details will be
provided during the application process.
For your reference, these benefits may include: medical insurance,

annual leave (block holiday), company product discounts, etc.
These benefits will keep its employees healthy and enable them to
balance the demands of their work and personal lives.
229
BIBLIOGRAPH
REFERANCE BOOKS:
MARKETING MANAGEMENT
ADVERTISING AND PROMOTIONS
230
WEBLIOGRAPHY
 www.lgindia.com
 www.google.com
 www.wikipedia.com
 www.scirbd.com
231
AUTO MAGAZINES
 Business world
 Business today
 LG magazine
 Economics times News paper
 Times of India
APPENDIX
A.S.I Area Service In charge
232
A.S.M Area sales manager
B.S.I Branch Service In charge
CAC Commercial Air Conditioning System
C.S NET Customer Service Net
D.S.C. Direct service centre.
L.H.D Logistics Head of department
R.E.F Refrigerator
233

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A

MARKET ANALYSIS OF LG CONSUMER DURABLES & DEALER

Kamal Raj Saini

(MBA-IV SEM), In Partial Fulfillment for Degree of Master of Business

SIKKIM MANIPAL UNIVERSITY

LEARNING CENTRE – PIIT (01531), BANIPARK, JAIPUR

It is indeed of great moment to pleasure to express my senses of

I am thankful to MR. Sataya mohenty marketing manager Pune

MR. Sataya mohenty Gaurav Malpani

LG INDIA (PUNE) PIIT (Learning centre)

Sikkim Manipal University,

2 Objective & Scope of

INTRODUCTION TO THE TOPIC

Indian Consumer durables market used to be dominated

India being the second largest growing economy with

Consumer durables major LG Electronics India Pvt Ltd (LGEIL)

The company, having a turnover of Rs 9,500 crore and market

LG’s innovative ‘211 campaign’ to provide quality after-sales

The campaign, for which IT infrastructure has been set up,

This project gives me great exposure to the consumer durable

My job include while visiting the shops

1. Calculate the display share of the LG product in every shop

2. Collect the data of actual monthly sale of the LG product in

5. Find out the costumer response for the LG product by asking

6. Find out the distributer name from whom they purchasing

7. Check that demo calls are attended or not

1. By calculating the display share we found that in most of

2. By the actual monthly sale of particular store we came to

5. Many dealers were facing the problem of after sale service

6. Demo calls also not done properly.

 The main objective of filed survey during the project was to

 The main objective of research was to identify potential

 While purchasing the consumer durables which parameter is

 Do the consumers prefer the financial facility for buying

 How frequently consumers change the consumer durable?

 To enhances the knowledge of consumer durable market.

 To increases the knowledge consumer durable product of LG.

 To enhances the knowledge about the marketing and branding

With the increase in income levels, easy availability of

Consumer durables sector is characterized by the

Consumers whereas the Indian companies

2. White goods include

4. Clocks and watches

1. In term of purchasing power parity (ppp), India is the 4th

2. Indian consumer durable market is expected to reach $400

3. India has the youngest population amongst the major

4. There are 56 million people in middle class, who are earning

1. In India the penetration level of white goods is lower as

2. Unexploited rural market.

4. Increase in income level, i.e.increase in purchasing power of

5. Easy availability of finance.

Brands in consumer electronic sector

MNCs NATIONAL REGIONAL

TODAY Consumer durables sector is characterized by the

LG, SAMSUNG the two Korean companies has been

The company, having a turnover of Rs 9,500 crore and market

LG Electronics is one of the leading companies in the field of

Facts & Figures

Established In India : May 1997

Managing Director : Mr. Moon B. Shin

Corporate Office : Plot no 51, Udyog Vihar, Surajpur

Corporate Website : http://www.in.lge.com