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A Comparative Marketing Study of LG Electronics
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INTRODUCTION
Introduction
A comparative marketing study of LG Electronics vis-à-vis competitor’s(Samsung,
Haier, Videocon, Godrej ) in the area of Noida and Delhi……………
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to investigation” Research inculcates scientific and inductive
thinking and it promotes the development of logical habits of thinking and organization.
Research is a common parlance refer to a search of knowledge. The advanced learner’s
Dictionary of current English lays down the meaning of research as a careful
investigation or inquiry specially through search for new facts in any branch of
Knowledge.
What is comparative Marketing study? In comparative marketing research we take our
competitor’s products and make comparison through consumer with our own products.
Why Comparative Marketing study? Comparative marketing study/research comprise
one of the most important and fascinating task of marketing. It provides information for
marketing decision making, any problem that are identified and investigated further by
using problem solving techniques with the objective of arriving at solution. The most
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important innovation in the new approach is to study simultaneously different
organizational forms of business interest representation. The aim of the study is to point
out the best (in this respect) among the alternatives that are being studied. The final
aim perhaps is not only to find the best, but also to improve it or similar objects later
on.
LG Electronics India Ltd. (LGEIL) is the youngest and fastest growing consumer durable
brand. Today, LGEIL is an US$ 1456 million behemoth, with a sprawling product range,
and market leadership in nearly all product categories.
The study will also include the survey which will be targeting about 20 dealers and
around 100 consumer in the NCR . The main emphasis in the survey will be given on the
sales of LG in comparison to its competitors in CTV, WASHING MACHINE,
REFRIGRATOR & AC segment, the consumer perception about the brand will also be
taken into consideration while conducting this survey.
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The analysis of the buying behavior in respect to CTV, WASHING MACHINE,
REFRIGERATOR & AC will be another important component of my study. Buying
behavior of the consumer is a study of how individuals make decisions to spend their
available resources ( time, money & effort ) on consumption related items(what they buy,
why they buy, where they buy , how often they buy and use a product or service). The
heterogeneity among people across the world makes understanding consumer buying
behavior an intricate and challenging task. The consumers’ identity, his beliefs, specific
needs, attitudes and the kind of product and brand available in that product category
influence his buying behavior. The marketing efforts of a firm have a profound impact on
the buying decisions of customers. Therefore the attempt of my survey will be to obtain
an in- depth knowledge of the customers buying behavior.
The effect of external variables on purchasing pattern of customer will also be considered
here the external variables refer to all those factors which will be affecting the consumer
purchasing decisions, these can be price of the goods and on its attitude to respond to
functional needs. The critical variable under this approach is the availability of adequate
information about purchase alternatives (price, product functionalities) to support the
decisional process .
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HISTORY
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1. HISTORY
1958GoldStar (today's LG Electronics) established
1959Korea's first radio produced
1962Radio exported to the US and Hong Kong as Korea's first
1965Korea's first refrigerator produced
1966Korea's first black & white TV produced
1968Korea's first air conditioner produced
1969Korea's first washing machine produced
1974GoldStar Communications went public
1977Color TV produced
1978Exports surpassed US$100 million as Korea's first in the electronics industry
1980First EU sales subsidiary in Germany (LGEWG) established
1982Color TV plant in Huntsville in the US established
1984Sales surpassed one trillion won
1986European-standard VCR plant in Germany established
1989Sales subsidiary and a joint production subsidiary in Thailand established
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1990Ireland-based design technology center established
1993With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing
1995Company name changed to LG Electronics and the US-based Zenith acquired
199740-inch PDP TV and the world's first IC set for DTVs developed; India production subsidiary (LGEIL) established
1998World's first 60-inch PDP TV developed
1999LG.Philips LCD, a joint venture with Philips, established
2000LG Information & Communications mergedThe world's first Internet-enabled refrigerator launchedGlobal sales of refrigerators reached the number one position
2001Asynchronous IMT-2000 equipment commercialized; the world's first Internet- enabled washing machine, air conditioner, and microwave oven launched; LG.Philips Displays, a joint venture with Philips established
2002Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) and LG Electronics Investment (LGEI); the first home network system commercialized in the global market
2003World's first synchronous-asynchronous IMT-2000 mobile phone developed; the world's first 76-inch PDP TV developed; CDMA mobile handsets took the largest share in the US & world CDMA market
2004EVSB, the next-generation DTV transmission technology chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55" LCD TV, the world’s first and largest among LCD TVs, commercialized The world’s largest and first LG 71" plasma TV commercializedThe world’s first terrestrial DMB phone developed
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A. Overview of the Consumer Durable Sector
Background: Prior to liberalisation, the Consumer Durables sector in India was restricted
to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together,
they controlled nearly 90% of the market. They were first superceded by players like
BPL and Videocon in the early 1990s, who invested in brand-building and in enhancing
distribution and service channels. Then, with liberalisation came a spate of foreign
players from LG Electronics to Sony to Aiwa. The graph of top three consumer durable
giant is shown blow,
Both rising living standards, especially in urban India, and easy access to consumer
finance have fuelled the demand for consumer durables in the country. Also, the entry of
a large number of foreign players means the consumer is no longer starved for choice.
But this has also resulted in an over-supply situation in recent times as growth levels have
tapered off.
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Major Players: The major players in the consumer durables industry, operating in
different sectors such as air conditioners, washing machines, refrigerators & television
include:
Blue Star Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation
Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd. &
Thomson Ltd.
Demand/Supply: The colour television (CTV) segment of the consumer durables industry
has been hit by stagnant demand in recent times. CTV manufacturers like BPL and
Videocon have effected price cuts while others have lowered production levels in the face
of rising inventories. They have also initiated drives to clear old stocks.
The results are mixed. For instance, demand for 14-inch CTVs was hit by the reduction in
the prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has also slowed
because of the price factor. So companies like LG and Samsung are now expected to
reduce prices in the premium categories.
As for the other segments, air conditioner demand was up in recent months. In the case of
refrigerators, a chunk of the sales are still in the direct cool segment as against the frost-
free one, But replacement buyers tend to go for technologically improved models. Hence,
sales of frost-free refrigerators have grown steadily over a period of time.
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The washing machine market consists of two broad segments - semi-automatic and fully
automatic. The first accounts for a chunk of the market. In terms of loading type, top
loading machines sell in greater numbers than front-loading ones.
CONSUMER DURABLES MARKET PIE IN FY06
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COMPANY
PROFILE
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B. LG Electronics: Company Profil
Corporate Governance
Following the launch of the holding company, LG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors. This structure helps us deploy more transparent, value creating management activities that help increase corporate and shareholder value.
Management System
When LG Electronics removed the ‘Circulating Investment Structure’ of its affiliated companies through the launch of a holding company system, this enabled the holding company to take full charge of investments. Consequently, LG Electronics has been able to focus on its own businesses while increasing the overall value of the Company. This corporate governance structure has laid the groundwork for increasing managerial transparency. Through a responsible management system comprising the CEO of LG Electronics and a Board of Directors, we are taking huge steps in strengthening our competitiveness at domestic and international level in order to maximize corporate and shareholder value.
Board of Directors
LG Electronics' Board of Directors maintains independence from its management and major shareholders. Currently the Board has a total of seven directors, four of whom are outside directors. To ensure that external directors are appointed fairly and independently, the "External Director Recommendation Committee," comprising one in-house director and one external director, nominates external directors following close examination of their qualifications. These outside directors are then voted on at the next shareholders' meeting.
Outside directors are always well qualified individuals with professional knowledge and experience in key areas. Their main role is to carry out check and balance functions, as well as monitor the Company's overall management activities. They also act as objective advisors to the Company. The Board meetings take place every month, and every member is required to participate in the meeting.The board members review the meeting agenda provided by the Company management prior to the board meeting, evaluate and supervise the Company management's performance and business transactions with
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affiliated companies, and other important management issues. Since 2005, LG Electronics has given the board members an opportunity to actively participate in the Company's management activities by offering an 'On-The-Spot Management Program' that allows the members to directly visit Company business venues based both locally and abroad. The Company also encourages participation in outside director training programs that are hosted by the Korean Directors Association.
Internal
Yong Nam
Vice Chairman and CEO, LG Electronics
Read More
David Jung
CFO of LG Electronics(Executive Vice President)Director
Read More
Yu-Sig Kang
CEO of LG Corp.(Vice Chairman)Director
External
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Suk-Jean Kang
Chairman of CEO Consulting GroupOutside Director
In Ki Joo
Professor of Yonsei UniversityOutside Director
Suk Chae Lee
Consultant of Taepyoungyang Lawfirm (Bae, Kim & Lee)Outside Director
Sung-Won Hong
President of JeollanamdoInnovation Agency for Strategic IndustryOutside Director
Audit Committee
To ensure complete independence from the company’s management and major shareholders, the Audit Committee is composed of three outside directors. The Committee's role is to examine various financial reports and enhance managerial transparency and fairness as supervisors. In addition, the committee members approve the appointment of outside auditors after careful review of the candidates' professionalism,
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independence, reputation, capability, ability to audit international businesses, as well as possibilities of conflict of interest associated with the Company.
In Ki Joo
Professor of Yonsei UniversityOutside Director
Suk Chae Lee
Consultant of Taepyoungyang Law firm (Bae, Kim & Lee)Outside Director
Suk-Jean Kang
Chairman of CEO Consulting GroupOutside Director
Executives Take a look at LG's corporate business and organization.
Corporate Vision LG aims to become a global leader, providing happiness for customers worldwide.
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It started as a big dream in small town of the north Indian state of Utter Pradesh -----a
township by the name of Greater Noida.
Back in 1997, it was just a piece of wilderness. Nobody, least of all the owner of a
fortune 500 company would have dared to choose it as a canvas to script a transnational
corporation’s success story in India, but, then, LG, if you go into the history of the seoul-
based company that has footprints in nearly all parts of the glove, is a different kind of an
entity altogether.
LGIL has competition yet it has managed to become one of the most admired companies
in India though innovation.
(The economic times 12 jan 2001)
LGEIL-THE NEXT INDUSTRIAL GIANT: LGIL is youngest and fastest growing
consumer durable brand. LG at the no. one slot is targeted to end the year with a turnover
of us$ 1.5 billion. After China, LG plans to make India its second largest manufacturing
hub. Today, LGIL is an US$ 1456 million behemouth, with a sprawling product range,
and market leadership in all product categories. The Indian operation of LG Electronics
in fact rank among the best three in LG Electronics world-wide.
To be sure, life was not always this good for LGEIL. The mud trail that led us to plot
no.51,Uydyog Vihar, Surajpur Kasna Road in Greater Noida was strewn with massive
potholes and road blocks
Before 1997, LG had made two concerted attempts at penetrating the Indian market.
Unfortunately, both met with miserable failure. The first was in the form of a joint
Venture with Bestavision and second a JV with a Birla Group company. For several
unaccountable reasons, both the attempts came to a naught and talks petered off as
quickly as they had started.
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They came a vital policy shift. The Government of India liberalized its economic policy
and allowed transnational corporations to set up shop in India. One of the first to respond
to this invitation was LG-Korea, a corporation that strait took the dive and this time made
the strategic decision of setting up a 100 per cent subsidiary of the Korean company in
India. This time, it did not need the support of any partners.
In March,1997, K R Kim who was the serving in panama was called to India to spearhead
the Indian operations. However no sooner was the announcement made that the business
magazine and newspapers in India started to write us off predicting a bleak future for the
company. Some went started to write us off predicting a bleak future for the company.
Some went so far as to forecast our premature demise mainly because of our earlier,
failed attempts at breaching the Indian turf. A few industry watchers also felt that our
timing was bad, as the consumer durable market in India was already saturated with
indigenous and global players, leaving no room for another entity; worst a foreign one at
that.
LGEIL-OF, BY AND FOR INDIANS : The unchallenged trend those days at most
transnational corporations was that expatriates manned all crucial functions. All the
policies were formulated at the headquarter and then unquestioningly executed at the
various branch office. This left very little elbow room for local managers to maneuver
things at their end. Consequently, none of these initiative factored in local considerations
leading to huge disconnect between what the local consumer wanted and what the
corporate office though they wanted!
In contrast, the LGIL story in India got scripted very differently from this, as it bore a
strong local imprint. In retrospect, I think, it must have made for a bold, cultural strategy
implemented with lot of internal conviction.
The strategy got vested in three crucial decisions, which have now entered into the very
fabric of our organizational cultural. Briefly, the three decision were:
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1. Indian employees would be appointed as the key decision makers at LGEIL. The role
of the Foreign Service Employees (FESs) would at best remain limited to that of
facilitators, which implied that they would co-ordinate with LG korea and provide
expertise, where needed.
2. The head of Human Resources division and the head of Sales & Marketing division
would always be Indians.
3. The Head of Manufacturing and the Head of Finance and Accounts would be FSEs but
even they would be assisted by Indian managers: who would provide key support to these
functions.
These decision became the cornerstone of LG’s operational strength in India the evident
of which can be found in the following statistics :
From a turnover of US$ 31 million in 1997, it went to US$ 583 million in 2002
and further to US$ 1456 million in the last financial year 2005
Our headcount, meanwhile has grown from 402 in 1997 to 2900 in 2005
In just over five-six years, we have shot to NO#1 in the rerfrigrators (29,4 per
cent market share); and No#1 in washing machine (30% market share) No#1 in
microwave oven(36.7% market share ) products category and No#1 in the air
conditioner (34% market share )
LGEIL POLICIES : SETTING PRECISE TARGETS: How a Korean company managed to outsmart
its foreign and Indian rivals is a story about culture change. Like the other Korean
companies that have been successful in India- Samsung and Hyundai, India’s no -
2 car producer. LG had good products and smart marketing. But LG went further
by challenging Indian work habits……negative management traits, such as
ducking challenges and tolerating excuses, Indian work habits….. negative
management traits such as duckling challenges and tolerating excuses, are
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overcome with bonus schemes that can add 80% to salaries Employee are
assessed against precise targets.
BENCHMARKING AGAINST THE BEST: Around this time, we had also
begun to realize that any exercise at setting up a KPI system was incomplete
without benchmarking our parameters against the best in the industry. We also
discovered that most companies hired external(read foreign ) consultant to handle
this job that not just charged an exorbitant fee, but also took six-seven months’
timeframe to accomplish y task, next year, use X/2 resources to accomplish y, or
better still 2y tasks. Sounds impossible? But we know the system works.
THE “PUSH” AND THE “PULL” STRATEGY: from the word go, LGIL has
had a very strong customer and sales-driven ideology. Dub is as a strategic
balance of the push and pull factors. The push came from the loyal customers. To
reinforce this vision, we made it a customary practice that any LGEIL executive,
visiting any city or branch had to first do field visit of the local market and
experience the market first hand. There were no two ways about it. The feedback
had to come straight, honest and delivered direct to each one of us. This requires
that every LG brands ambassador had to meet a few local dealers/distributors and
sell one or two products over a direct interface with the customers. Later at the
corporate managers meeting, they had to make a presentation and be quizzed on
what values customers looked for in LGEIL products could be sent back to the
R&D.
POLICY ON PRICE CUT: LG has also shaken things up on the marketing side.
It has driven prices down by 18% to 20%. Over the past two years LG has
steadily increased distribution outlets and the breadth of products ranges
STRONG AND SPEEDY EXECUTION: Strategy planning, as reiterated
above, has always been a dynamic process at LGEIL, and, Prompt execution our
hallmark.This bring prompt execution our hallmark. At LGEIL,execution also
became strong because we genuinely empowered our employees and held them
accountable for their, as well as the company eventual progress.This also
generated a strong sense of ownership in them. And secondly passion and positive
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energy kept their emotional involvement high at all times. They were
experiencing a start-up environment, which always bring out the best in
everybody while simultaneously honing their survival instincts.
PRODUCT DIVERSITY : LGEIL had a strong portfolio of products, viz CTV, air
conditioners, washing machines, refrigerators and microwave ovens, to name just a few ,
from the very beginning, we were among the few , front- running consumer durable
companies in India to command such a vast array of products. The benefits is that even if
one or two are not performing very well in the market there are others to tide us through.
In fact, there is always one product that remains on at any point of time in the year, so
there was never a rainy season.
RURAL MARKETING : By the year 2000-2001, LGEIL had a strong presence through
the length and breadth of the country. We were dong ewll in almost all metropolitan
cities, especially in the northern and eastern belts of the country although we still had
some catching up to do in the south and west
This was achieved in 2002-2003, when LGEIL emerged as the undisputed market leader.
Yet, it was hardly the reason to sit on our laurels. The problem of further growth had to
be addressed and there was this pressing need to explore and find new markets. In the
metros, although we were doing pretty well the cost of selling was too steep to enable us
to cut good profits as our competitors were also focused on developing just these
markets.
DUAL MARKETING: As would be clear from the preceding discussion, so far, we had
only incurred cost and made little profit in executing all these expansion plans so now
was the time to reap the fruits of our earlier labour and the only acceptable way of doing
that was without compromising on the quality factor. That left just one option nip corner
at the cost end.
Since this was also the only route that would not have diluted the perception of the
premium of the premium brand, the corporation started making serious efforts at cutting
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cost through product innovation. A portion of even these saving we intended to pass on to
the Indian customer.
In short, our endeavour was to try and improve our market share without denting our
profitability. We had already reduced our overheads by increase capacity. Now the next
logical steps was to attack the cost end of our production.
This LGEIL concept that was later lauded by McKinsey as Premium marketing to the
masses and was communicated to the customers in the form of a strong marketing
campaign more value at much less than the price!
With this done, the affordability of our products became the bulwark of all our marketing
campaigns. This strategy caught our competitors in the form of a strong marketing
campaign. A few reacted by announcing price cuts of their own their own, not realizing
that LGEIL was not just cutting prices we were also focusing strongly on cost innovation
at our end. So while their price cuts led to more losses and pressures on cost, ours led us
to more customers and increased profitability in the end, with this simple strategy, we
managed to kill two birds with one stone.
Some of our competitors later saw through our game plan, but by then it was too late for
them to follow suit and in any case, they still hadnot unravelled the full strategy, which
was not to cut prices uninformly across the country, but stagger them across different
segments
Very cleverly while we were launching premium products in different categories we were
also varying our pricing strategy from state to state that kept competition guessing and on
tenterhooks all the while. I remember how one MNC sought to hike its subsidy from the
parent company simply to counter our prices strategy, at the core of which lay simple
fiscal discipline measure that they too could have followed but probably couldnot
because of lack of focus or strong execution.
Time and efforts were both in our favour. And the rest as they say is history.
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LGEIL-ORGANISATIONAL STRUCTURE
As it is clear from the figure Except for the CEO, VP-Manufacturing and VP-finance &
Accounts, all other position were held by the Indians.
This kind of people planning was deliberate and the result of a carefully 1thought-out
strategic intent, initially, when we recruited people, we took them in their respective area
of expertise, but onse the company stabilized, we started rotating them as per their
request, inclination, acquired skills and expertise.
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CEOExpatriate- Korean
VP(Human Resource)
VP(Sales & Marketing)
VP(Manufacturing
Expatriate- Korean )
VP(Finance & Accounts
Expatriate-Korean)
GMManufacturing
GMManufacturing
STRONG EMPLOYEE FOUNDATION : the enormous speed at which LGEIL grew
in those days would possible without logical and rational system. The management knew
they had to do something remarkable different from competition. So we set about
recruiting people, who among other things, were perceived to be high on:
Physical energy
Emotional energy
Next, they were provided with:
1. a big vision
2. Melt-ins so that all decisions could be made by consensus and nothing got
unilaterally imposed on any one
3. each was given absolute freedom within certain pre-defined parameters and held
accountable for results.
Meanwhile, the tools that the employees were encouraged to use mainly comprised of;
1. creating total transparency relating to the company’s performance including a
discussion of sensitive issue , such as profitability
2. Sharing with them news and details of the future line-up of our products
3. Showing genuine respect and acceptance of everybody ideas and suggestions
4. Resposing total trust and faith in their intention endeavours and capabilities
5. Building strong communication links (these details are discussed in a later
chapter )
Proactively sorting out employee grievances, even when immediate solutions were
not within as issue went beyond the scope and policies of the originations
LGEIL : LOGO Any attempts at understanding LG would be incomplete ,without
understanding LG Logo: Life is Good. Our vision, our corporate philosophy and our core
values are all encapsulated in this simple logo. The circle in the logo represents the globe,
i.e. the full reach or our aspiration to emerge as a global company. It also implies the face
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of a smiling customer, conveying that we are extremely customer-focused, or that we
represent a world that is futuristic youthful and humane.
The bull’s eye on the circle represent the organization ‘s single minded focus on goals
and determination to achieve results with a smile. The white space deliberately left at the
upper right end stand for of creativity. The red color conveys friendliness and LG’s
commitment to quality, while the gray stands for technology and reliability.
Products or other exterior manifestations of a company to my mind do not reveal its true
character which is manifest in its value system, practiced philosophies and accepted
norms. Products people system are all outcome of this core value system and this is what
the LG logo conveys.
LGEIL is like a gushing, turbulent river, cascading at full length and speed from a rugged
mountain. A powerhouse of raw energy, it resounds unilaterally but at times collide head
on with each other but that is ok,so strong bulwarks on either direction to contain all the
roaring action of mightly river.
LG Electronics : vision
LG Electronics vision for the 21st century is to become a true global digital leader
through fast growth and fast innovation and to be known as a company who can make its
worldwide customers happy through its innovative digital products and services. LG
Electronics has set its mid-term and long-term goal to rank among the top 3 electronics,
information, and telecommunication firms in the world by 2010. We aim to utilize our
core capabilities of product leadership, market leadership and people leadership and
enhance our corporate culture of team work and fun workplace to achieve our mission of
becoming "2 by 10", that is, double our sales volume and profit by year 2010.
LGEIL – Product Portfolio
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Flat Panel Display
GSM IT Products TelevisionsRefrigerators
Washing Machine
Air Conditioner
Microwave Ovens
Vacuum Cleaner
Digital Audio / Video
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 its Industry
leadership status serves as a major factor in attracting employees. Therefore LG has the
ability to hire the best in the industry.
Once these candidates are hired, they undergo and exhaustive induction programmed for
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.
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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. Infect LG is
benchmarked in terms of manpower costing.
Employees are given a chance to visit Korea on completion of...years 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 along with 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.
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.
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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. 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.
A slew of numerous initiatives have been undertaken by LG ever since its inception in
India. The company has been actively involved in providing social benefits to the
disadvantaged sections of the society. We also have a focused plan for providing health
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services to the under privileged children, undertake animal health care and enhance
professional skills of the unemployed youth.
LG India has worked jointly with Prayas, a Delhi-based NGO by undertaking
campaigns / activities for the welfare and upliftment of Underprivileged Street and slum
children and providing those services in the field of education, health care, shelter,
vocational training and other rehabilitation programmes. The company also tied up with
HELPAGE India, the country's largest voluntary organization working for the cause and
care of disadvantaged older people.
LGEIL also takes care of 24 villages around Greater Noida out of which six have been
adopted formally. The company has on its pay roll three doctors who visit these villages
daily and offer Free Medical Care, which comprises of free check ups and a free
distribution of medicines.
LG's commitment to contribute substantially to the community led to the formation of the
'Tinkha,' a community development club consisting of 10 people. It recently organized
Blood Donation Camp where 172 employees donated blood in one day.
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FUTURE CHALLENGES AND TRENDS
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C. Future challenges and trends
Companies like LG Electronics are exploring the online route to grow their business. It
plans to connect around 1,700 direct dealers and distributors to its recently launched B2B
portal, www.lgdealernet.com as part of its drive to become an integrated online business
undertaking by the end of 2003.
In the CTV segment, a number of new and innovative products are being launched.
Technological upgradation and pricing are the key drivers in this highly competitive
market.
Even in the case of washing machines and refrigerators, new models are being developed.
In refrigerators, companies like Electrolux (which has four established brands in
Electrolux, Kelvinator, Voltas and Allwyn) are specially targeting high-end consumers.
The demand for fully automatic washing machines is expected to increase over semi-
automatic ones. Also, second-time buyers are likely to go in for larger machines.
Research and development is expected to be a key issue in future as players try to keep
pace with changing consumer preferences and expectations as well as the ever-growing
competitio
FUTURE PLAN
Hyderabad, Aug. 5 Customers of LG branded products can look forward to better service from the electronic giant in the near future.
LG India has decided to put in operation at least 24 company-owned Direct Service Centres (DSCs) across the country in the next one year.
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The company, which reported a turnover of Rs 9,250 crore last year, has established two DSCs in Gurgaon and Bangalore. More centres will come up in Hyderabad and other major cities soon, said Dr Yasho V. Verma, Director (HR & MS).
LG India recently launched the 2-1-1 customer service concept. The idea is to provide fast and reliable service to the customer, said Mr Prashant K. Das, Regional Manager South (AP & Karnataka) operations.
For the customer it means an engineer will call a customer within two hours of a complaint registered at the call centre. He will give a specific time to attend within one hour and once the complaint is understood, the service or rectification would be completed in one day, Mr Das explained.
The novel customer service is now available in select centres in the country where LG has a strong presence, including in Hyderabad. It would be expanded soon, he said.Another effort launched by the company to bolster customer care is tie-ups with ITIs (Industrial Training Institutes) to train technicians. With an agreement from 22 ITIs (including 3 in Andhra Pradesh), about 2,000 such professionals are being hired by LG, Dr Verma said.
The company is also training the faculty in these institutes so that the training process is expedited. This exercise would be continued and extended in the near future.
- 31 -
OBJECTIVE
- 32 -
D. OBJECTIVES OF THE STUDY
The consumer durable market has grown considerably in last few years in India. With the
growth, the level of competition has grown with the entry of new players & existing
players expending their product portfolio. Literally every day companies come up with
new attractive offers to grab the better share of the market. The challenge is not only to
get the new customer but also to continue with the existing customers.
The objectives are :
1. Identify the Dealer as well as Consumer perception about the LG products with respect
to its competitor.
2. To suggest some differentiating strategies like (Product differentiation strategy,
Price differentiating, Service differentiating, Channel Differentiation) to stay ahead in
competition
for LG .
3. To identify the factor affecting the purchasing decision like
(price,promotion,Advertising)
4. To identify the aesthetics and USP’s of other competitive brands.
- 33 -
IMPORTANCE OF STUDY
- 34 -
E. Importance of Study
As far as the topic Comparative Marketing Study of LG Electronics vis-à-vis its
competitor is concerned, The project study follow Consumer as well as Dealer perception
(attitude) Toward LG products (CTV, Refrigerator, AC, Washing Machine) with respect
to other competitor products.
In this study the research work is to find out the Strengths, Weakness, Opportunities and
Threats (SWOT) Analysis of LGEIL and this will help LG to improve its weak areas.
These are mention blow-
1. Display Share Tracking: Display share tracking helps us to find out these
information
1.1 It helps to reveale potential demand of each product.
1.2 With the help of display tracking we can find out the highest selling product and lowest selling product in the market.
1.3 It helps in tacking decision during the line expansion and line pruning.
2. Consumer perception: This is done with the aim of capturing the true words and
emotions of consumer, and in turn using this information to improve or developed
products or to determine people attitude toward the products.
2.1 It helps company to get feedback from consumer.
2.2 It prevents the undervaluation of competitor and we can find the strength
and Weakness of our products
2.3 This helps us to stay ahead in competition.
2.4 It encourage value creating investment.
2.5 It help in maximizing the consistency of value creation.
2.6. Measuring performance
- 35 -
2.7 It helps us for market share analysis.
So as to conclude I can say this study is more suitable for LG to compete and survive
in global market.
LIMATIONS OF STUDY
- 36 -
F. Limitations of the study:
1. The study was limited in its scope because of the relatively short time available (Three
months ) for completing the whole study including literature survey, development of
hypothesis, collection of data, analysis of data and writing the draft report. Due to
constraints of time and opportunity, the sample for the study had been collected from
Chandigarh and Mohali from few selected dealers. For the sake of simplicity few variable
were taken into account
2. The Data which has been collected from the Dealer and Consumer might not be very
correct to tack strategic decision as they may hide a lot of information
3. Lack of interest in giving responses by Dealer and Consumer.
4. The sample size which I have taken is too small to make a universal statement.
5. The final conclusion can be affected by some of the extraneous variables like
Promotional offer and new launch of product.
6.Lack of sufficient information about the company because we cannot access
confidential data of company.
7. Lack of the instruments to find out the reasonable outcome.
- 37 -
8. Lack of proper experience.
9. Though the study will represents the position of LG in Chandigarh and Mohali. Due to
small sample size, the finding may not be a true representative and it cannot be
generalized. However it will provide a good base for future study and may have wider
application in future.
- 38 -
RESEARCHMETHODOLOGY
- 39 -
4. Proposed Methodology:
a. Research Design: Exploratory research study
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. The method of research utilize in exploratory research are survey methods of
all kinds, including comparative and co relational methods. My research is comparative
in nature so I am using exploratory research study
b. Method of Data collection:
In order to study the consumer perception regarding the uses of LG Products with
respect to other companies :- Samsung, Videocon, Haier in NCR, both primary and
secondary data has been collected.
The study proposed to collect Primary data through questionnaire using survey
method. So as to give a precise, accurate, realistic and relevant data.
The secondary data as it has always been important for the completion of any
report provides a reliable, suitable, equate and specific knowledge. The data is
collected from various magazines, fact sheets newspapers and websites
published by the company.
- 40 -
c. Sampling Technique: The study proposed to use convenience sampling.
This sampling methods involves purposive or deliberate selection of particular unit of the
universe for constituting a sample which represents the universe. In this research I will
secure data from consumer durable buyers which are homogeneous in nature.
d. Sample Area: In order to study the consumer perception as well as dealer perception
of LG products with respect to its competitor, the data for the study has been collected
through a survey of people residing in NCR.
e. Sample Size:
Consumer sample size: 100
Dealer sample size: 20
f. Statistical Technique: The data is analyzed uses percentage, Ranking and analysis of
variance (ANOVA) method and finally shown with the help of BCG metrics. The
respondent in Consumer questionnaire was asked to indicate their preferences on a five
point -Likert Scale. They were asked to choose among the option Excellent, Very Good,
Good, Poor and Very Poor regarding various statement. The data was processed and
analyzed using means, standard deviation and f-value to present the result of the study.
- 41 -
g. Proposed Questionnaire:
Questionnaire for Consumer: It consists of data pertaining to the activities, interests and
opinions relating to purchase behavior, socialization, brand opinion and the like. A five-
point scale ranging from 1 – strongly disagrees to 5 strongly agree is used.
Parameters measuring the consumer perception are
Price
Packaging
Product Features
Brand name
Quality
Design
Durability
After sales service
- 42 -
Questionnaire for Dealer: The questionnaire for dealer has been used to find out
following facts
How many brands products a dealer is selling.
How many models of each brand they are displaying.
Highest selling brand of each company
Level of preference of LG with respect to other brands.
Is customer is ready to pay premium price or not.
The parameters on which consumer makes his purchase decision
Annual estimated sales
Dose customer come with prior knowledge/information about the product or not
What is the most acceptable size of these products CTV, AC, Refrigerator and
Washing Machine
What are the different complaints faced by the consumer
- 43 -
Review of Literature
While Research on consumer durable is extensive in developed countries, Little has been
done in this area in developing economies. Consumer durable sector in India is not
mature enough and its having huge opportunities so companies are concentrating on
advertising and promotion.
Research which has been conducted by Business world at national level in year(2007) in
major Cities i.e. Bombay, Bangalore, Calcutta, Chennai and Delhi. The aim of the survey
was to find out the market leader in CTV, Washing Machine, Refrigerator and AC
Segment. The survey was conducted through structured questionnaire followed by
personal interview. The Research brings out one point very sharply: there is no single
brand that has managed to delight customers in all the categories. A brand may excel in,
say, refrigerators, but turn in a sub-par performance in another catagory like air-
conditioners.
The second important finding is that the difference between the best and the also-rans
has narrowed even more. The difference between the topper and the number four or five
in any category is mostly in single digit percentage points.
Finally, the survey also brings out how companies have excelled in one area of product or
service delivery, only to falter in another. There are brands which score extremely high
on product quality - but fall way behind in complaint management. And vice versa.
Check out the category tables (page 48 to 57) to get a handle on how each brand fares on
each parameter.
And now for some of the other findings. Almost two-thirds of the customers rate the
durable brands they own as excellent or very good. This phenomenon is common across
all categories. By and large, customers in Mumbai and Chennai give high ratings to the
brands they own. However, customers from Bangalore are significantly more
circumspect.
- 44 -
FINDING AND ANALYSIS
- 45 -
Analysis 5.Data and Interpretation
An attempt has been made to compare the four consumer durable brands namely LG,
Samsung, Videocon and Haier, I had picked up four different product categories - frost-
free refrigerators, Colour televisions of 21" or bigger size, air-conditioners, and washing
machines, by understanding the perception of 100 Consumers and 60 Dealers, So as to
conclude which consumer durable brand is more suitable to compete and survive in the
global market.
The survey hasn't merely measured the customer satisfaction for different brands but has
actually ranked brands on the basis of customer delight. The difference is simple. Almost
every big brand in the market today meets a certain threshold level of product and service
performance. But certain brands exceed customer expectations. These are the brands
which delight the customer, not merely satisfy him
DEALERS SURVEY ANALYSIS
DEALERS SURVEY ANALYSIS
a. Intorduction
In order to understand dealers’ perception about consumer behavior towards purchase of
refrigerators, ctv, washing machine and ac a survey was on dealers. The survey was
conducted on small scale. Due to time constraint, survey was conducted on 15 dealers of
each products.rs.
- 46 -
The data collection instrument was a questionnaire which consisted of 14 questions on
each product and which measured different attributes
b. Analysis of Survey<Refrigerators>
b1. How long are customers in the retailing of refrigerators? (Please Tick)
Response:
ATTRIBUTES NO. OF RESPONDENTS
% AGE OF RESPONDENTS
< 1 Year 2 101 < 2 Year 4 20
2 < 3 Year 6 30
3Years or Above
8 40
- 47 -
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of refrigerators. As can be seen from the pie chart that 60% of the dealers
have been in retailing of refrigerators for than 3 years and 40% have an experience more
than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2
yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs
but less than 2yrs. While 10% of the total respondents have been in the retailing of
refrigerators for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors
B2.. Which of the following brands of refrigerators, You are dealing in? (Please Tick)
Response:
BRAND NO. of RESPONDENTS
% age of respondents
LG 19 93.33Haier 11 76.67Samsung 17 86.67Videocon 13 76.67
- 48 -
Any Other 10 36.67
The above given graph tells us how frequently respondents (dealers) deals in above given
brands of refrigerators. 93.33% of dealers are preferred to deal LG brand while 37% of
dealers are preferred to deal with other brand (BPL, Allwyn etc.). Samsung is second
most brand preferred by dealers.
As we can see from the graph that Samsung, LG, Videocon are most likely brand among
the dealers whereas Godrej, BPL, Allwyn are less preferred by dealers than other brands.
B3.. To what extents, following brands of refrigerators are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Response:
Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0
ATTRIBUTES RESPONSE PREFERANCE LEVEL
LG 17 3.56Samsung 14 3.47Haier 12 2.70
- 49 -
Videocon 17 3.17
Brands of Refrigerator prefered by customer
0
5
10
15
20
25
LG Samsung Haier Videocon
RESPONSE Preference LEvel
The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that LG is first preference by the customers followed by Samsung that is second
most preferred by customers. While Haier is less preferred by customers.
B4. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature
Feature Rank Order
a) Space _________
b) Front Door Design _________
c) Cooling Effect _________
d) Colour _________
e) Brand Name _________
- 50 -
Response:
ATTRIBUTES Rank order Space 2Front Door Design 5Cooling Effect 3Colour 4Brand Name 1
This helps company to concentrate on the most important factor so that they company
could get the competitivd edge over competitor.
B5.. In which season, customer mostly purchase refrigerator? (Please Tick)
Response:
Attributes No. of DealersOff Season
16Summer Season
84Any Other
00
- 51 -
Season in Which Customer Mostly Purchase Refrigerator
16%
84%
0%
Off Season Summer Season Any Other
As above pie-chart tells us about in which season customer mostly purchase refrigerator
i.e. in which season most of the sales happen. As we can be seen from the pie chart that
84% of dealers say that customers purchase refrigerators in summer while 16% of dealers
say that customers purchase refrigerators in off season.
B6. At which visit, customer generally finalize his/her decision for buying a refrigerator?
Response:
Attributes No. of DEALERS At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00
- 52 -
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
This chart tells us about the customers’ willingness towards purchase of refrigerators. As
can be seen from the pie chart that 60% of the dealers said that customers finalize that
their decision towards purchase of refrigerators in first visit to showroom and 33% of
dealers said customer does second visit while 7% of dealers said customers need third
visit to finalize their decision.
B7. Does customer come with prior knowledge/information about particulars brands of refrigerator?
a) Yes b) No
Response:
ATTRIBUTES NO. of DEALERSYes 54No 46
- 53 -
Prior Knowledge/Informations
54%
46%
Yes No
As above pie-chart tells us about prior knowledge about refrigerators among the
customers. As we can be seen from the pie chart that 54% of dealers say that customers
come with some information or knowledge about refrigerator while 46% of dealers say
that customers doesn’t have prior knowledge about refrigerators.
B8.. When customers mostly visit customersr showroom for buying refrigerator?a) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Response:
Attributes No. of DEALERSDuring Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00
- 54 -
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
B9.. What is the most acceptable size in refrigerator now days?a) 165 L e) 365 L b) 210 L f) 410 L c) 310 L g) 600 L d) Any Other (Please Specify) ___________________________
Response:
Attributes No. of RESPONSE AVERAGE SCORE165 L 20 0.67
210 L 21 0.70
310 L 21 0.70
365 L 11 0.37
410 L 11 0.37
600 L 06 0.20
Any Other 00 00
- 55 -
Acceptable Size in Refrigerator
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
165 L 210 L 310 L 365 L 410 L 600 L
Size of Refrigerator
Ave
rag
e S
core
B10. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
a) Television ________ e) Radio ________
b) Newspapers ________ f) Magazines ________
c) Pamphlets ________ g) Internet ________
d) Trade Shows ________
Response:
Attributes RankTelevision 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07
- 56 -
B11. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment
Modes of payment Rank
a) Cash in Full _________
b) Installments Through _________ Cash
c) Cheque _________
d) Installments Through Cheques _________
e) Credit / Debit Card _________
Response:
Attributes RankCash in Full 1
Installments Through Cash 3
Cheque 4
Installments Through
Cheques 2
Credit / Debit Card 5
- 57 -
c. Analysis of Survey<Color Television>
c1. How long are Dealer in the retailing of CTV? (Please Tick)
Response:
ATTRIBUTES NO. OF RESPONDENTS
% AGE OF RESPONDENTS
< 1 Year 2 101 < 2 Year 4 20
2 < 3 Year 6 30
3Years or Above
8 40
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
- 58 -
This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of CTV. As can be seen from the pie chart that 60% of the dealers have been
in retailing of CTV for than 3 years and 40% have an experience more than 2 yrs but less
than 3yrs same i.e. they have been into this business for more than 2 yrs but less than
3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs.
While 10% of the total respondents have been in the retailing of CTV for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors
C2. To what extents, following brands of CTV are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Response:
Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0
ATTRIBUTES RESPONSE PREFERENCE LEVEL
LG 14 3.56Samsung 17 3.98Videocon 12 3.17Haier 9 2.67
RESPONSE
LG Samsung Videocon Haier
- 59 -
The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that Samsung is first preference by the customers followed by LG that is second
most preferred by customers. While Haier is less preferred by customers
C3. What are the parameters on which consumer makes his purchase decision?
Parameters Rank
o Price ……..o Packaging .…….o Product Features …….o Brand Name …….o Product Quality …….o Product Design . ……
Parameters Rank order Price 1Packaging 6Product Features 4Brand Name 3Product Quality 2Product Design 5
C5. At which visit, customer generally finalize his/her decision for buying a CTV?
Response:
Attributes No. of DEALERS At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
- 60 -
Any Other 00
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
This chart tells us about the customers’ willingness towards purchase of CTV. As can be
seen from the pie chart that 60% of the dealers said that customers finalize that their
decision towards purchase of CTV in first visit to showroom and 33% of dealers said
customer does second visit while 7% of dealers said customers need third visit to finalize
their decision.
C6. Does customer come with prior knowledge/information about particulars brands of CTV?
e) Yes b) No
Response:
ATTRIBUTES %age of DEALERSYes 54No 46
- 61 -
Prior Knowledge/Informations
54%
46%
Yes No
As above pie-chart tells us about prior knowledge about CTV among the customers. As
we can be seen from the pie chart that 54% of dealers say that customers come with some
information or knowledge about CTV while 46% of dealers say that customers doesn’t
have prior knowledge about CTV.
C7. When customers mostly visit customersr showroom for buying a CTV?b) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Response:
Attributes %age of DEALERSDuring Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00
- 62 -
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
C8. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
e) Television ________ e) Radio ________
f) Newspapers ________ f) Magazines ________
g) Pamphlets ________ g) Internet ________
h) Trade Shows ________
Response:Attributes Rank
Television 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07
- 63 -
C9. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment
Modes of payment Rank
f) Cash in Full _________
g) Installments Through _________ Cash
h) Cheque _________
i) Installments Through Cheques _________
j) Credit / Debit Card _________
Response:
Attributes RankCash in Full 1
Installments Through Cash 3
Cheque 4
Installments Through
Cheques 2
Credit / Debit Card 5
- 64 -
d. Analysis of Survey<AC>
d.1. How long are Dealer in the retailing of AC? (Please Tick)
Response:
ATTRIBUTES NO. OF RESPONDENTS
% AGE OF RESPONDENTS
< 1 Year 2 101 < 2 Year 4 20
2 < 3 Year 6 30
3Years or Above 8 40
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of AC. As can be seen from the pie chart that 60% of the dealers have been in retailing of AC for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of AC for less than 1yrs. This particular aspect was considered in the research because after knowing about the work experience of different dealers we can interpret the kind of perception about customer behaviors
- 65 -
D2.. To what extents, following brands of AC are preferred by customers?
(Mark the appropriate preference level by ticking against respective brand)
Response:
Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0
ATTRIBUTES RESPONSE PREFERENCE LEVEL
LG 17 3.85Samsung 14 3.47Haier 12 2.7Videocon 17 3.17
RESPONSE
LG
SamsungSony
Videocon
The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that LG is first preference by the customers followed by Samsung that is second
most preferred by customers. While Haier is less preferred by customers
- 66 -
D3. What are the parameters on which consumer makes his purchase decision?
Parameters Rank
o Price ……..o Packaging .…….o Product Features …….o Brand Name …….o Product Quality …….o Product Design . ……
Parameters Rank order Price 1Packaging 6Product Features 4Brand Name 3Product Quality 2Product Design 5
D4. At which visit, customer generally finalize his/her decision for buying a AC?
Response:
Attributes No. of DEALERS At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00
- 67 -
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
This chart tells us about the customers’ willingness towards purchase of AC. As can be
seen from the pie chart that 60% of the dealers said that customers finalize that their
decision towards purchase of AC in first visit to showroom and 33% of dealers said
customer does second visit while 7% of dealers said customers need third visit to finalize
their decision.
D5. Does customer come with prior knowledge/information about particulars brands of AC?
f) Yes b) No
Response:
ATTRIBUTES %age of DEALERSYes 54No 46
- 68 -
Prior Knowledge/Informations
54%
46%
Yes No
As above pie-chart tells us about prior knowledge about ACamong the customers. As we
can be seen from the pie chart that 54% of dealers say that customers come with some
information or knowledge about AC while 46% of dealers say that customers doesn’t
have prior knowledge about AC
- 69 -
D6.. In which season, customer mostly purchase AC? (Please Tick)
Response:
Attributes No. of DealersOff Season
16Summer Season
84Any Other
00
Season in Which Customer Mostly Purchase Refrigerator
16%
84%
0%
Off Season Summer Season Any Other
As above pie-chart tells us about in which season customer mostly purchase AC i.e. in
which season most of the sales happen. As we can be seen from the pie chart that 84% of
dealers say that customers purchase AC in summer while 16% of dealers say that
customers purchase refrigerators in off season.
- 70 -
D7. When customers mostly visit customersr showroom for buying a AC?
c) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Response:
Attributes %age of DEALERSDuring Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
- 71 -
D8. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
i) Television ________ e) Radio ________
j) Newspapers ________ f) Magazines ________
k) Pamphlets ________ g) Internet ________
l) Trade Shows ________
Response:
Attributes RankTelevision 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07
D9. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment
Modes of payment Rank
k) Cash in Full _________
l) Installments Through _________ Cash
m) Cheque _________
n) Installments Through Cheques _________
o) Credit / Debit Card _________
- 72 -
Response:Attributes Rank
Cash in Full1
Installments Through Cash 3Cheque
4Installments Through Cheques 2Credit / Debit Card
5
e Analysis of Survey<Washing Machine>e1. How long are Dealer in the retailing of Washing Machine? (Please Tick)
Response:
ATTRIBUTES NO. OF RESPONDENTS
% AGE OF RESPONDENTS
< 1 Year 2 101 < 2 Year 4 20
2 < 3 Year 6 303Years or Above
8 40
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
- 73 -
This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of Washing Machine. As can be seen from the pie chart that 60% of the
dealers have been in retailing of Washing Machine for than 3 years and 40% have an
experience more than 2 yrs but less than 3yrs same i.e. they have been into this business
for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of
more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the
retailing of Washing Machine for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors
e.2. To what extents, following brands of Washing Machine are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Response:
Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0
ATTRIBUTES RESPONSE PREFERENCE LEVEL
LG 14 3.56Samsung 17 3.47Sony 12 2.7Videocon 17 3.17
RESPONSE
LG
SamsungSony
Videocon
- 74 -
The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that Samsung is first preference by the customers followed by LG that is second
most preferred by customers. While Haier is less preferred by customers
e.3. What are the parameters on which consumer makes his purchase decision?
Parameters Rank
o Price ……..o Packaging .…….o Product Features …….o Brand Name …….o Product Quality …….o Product Design . ……
Parameters Rank order Price 1Packaging 6Product Features 4Brand Name 3Product Quality 2Product Design 5
E4. At which visit, customer generally finalize his/her decision for buying a Washing Machine?
Response:
Attributes No. of DEALERS At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00
- 75 -
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
This chart tells us about the customers’ willingness towards purchase of Washing
Machine. As can be seen from the pie chart that 60% of the dealers said that customers
finalize that their decision towards purchase of Washing Machine in first visit to
showroom and 33% of dealers said customer does second visit while 7% of dealers said
customers need third visit to finalize their decision.
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E5. Does customer come with prior knowledge/information about particulars
brands of Washing Machine?g) Yes b) No
Response:
ATTRIBUTES %age of DEALERSYes 54No 46
Prior Knowledge/Informations
54%
46%
Yes No
As above pie-chart tells us about prior knowledge about Washing Machineamong the
customers. As we can be seen from the pie chart that 54% of dealers say that customers
come with some information or knowledge about Washing Machinewhile 46% of dealers
say that customers doesn’t have prior knowledge about Washing Machine.
- 77 -
E6. When customers mostly visit customersr showroom for buying a Washing
Machine?d) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Response:
Attributes %age of DEALERSDuring Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
- 78 -
E7. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
m) Television ________ e) Radio ________
n) Newspapers ________ f) Magazines ________
o) Pamphlets ________ g) Internet ________
p) Trade Shows ________
Response:
Attributes RankTelevision 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07
E8. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment
Modes of payment Rank
p) Cash in Full _________
q) Installments Through _________ Cash
r) Cheque _________
s) Installments Through Cheques _________
t) Credit / Debit Card _________
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Response:
Intorduction:
Consumer survey has been completed on four brands namely LG, Samsung, Videocon
and Haier by taking four products CTV, Washing Machine, Refrigerator and AC.
Customers were administered a structured questionnaire that covered their entire
relationship with the consumer durable company, including an assessment of overall
attitudes and loyalty, as well as specific aspects of the relationship, starting from
purchase experience, dealership, product features, quality, design and performance, after-
sales service, complaint management and resolution, and advertising.
As has been highlighted above, the approach has been to measure the brands on their
ability to delight their customers on the perceived quality of products and service, and not
just to satisfy them. Thus, the numbers and the rankings are based on the percentage of
customers who have given an excellent or a very good on the relevant parameters (which
are the top two boxes on the 5-point scale of excellent, very good, good, Poor & Very
poor). I also looked at those giving a fair or poor to arrive at the extent of dissatisfaction
with any brand. Based on their answers, I first mapped out the total customer experience
index and also the overall loyalty index. The customer delight index was derived by
taking the mean of the two indices.
The questioning aimed to find out Which brand customers like and why they like that
brand only.and their attitudes and practices around them. Then more particular questions
were asked about technology in everyday life
- 80 -
Attributes RankCash in Full 1
Installments Through Cash 3
Cheque 4
Installments Through
Cheques 2
Credit / Debit Card 5
16 60 14 6 4
28 50 12 7 3
13 35 14 27 11
8 34 16 17 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Consumer Quality Rating Chart
Excellent Very Good Good Poor Very Poor
23 57 15 5
19 68 13
12 25 14 38 11
15 24 6 30 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Consumer Features Rating Chart for CTV
Excellent Very Good Good Poor Very Poor
- 81 -
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
LG
Samsung
Vediocon
Haier
Conumer After Sales Service Rating Chart For CTV
Excellent Veryood G Good Poor Very Poor
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
LG
Samsung
Vediocon
Haier
Conumer Design Rating Chart
Excellent Very Good Good Poor Very Poor
Refrigerator
- 82 -
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Consumer Quality Rating Chart
Excellent Very good Good Poor Very Poor
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Conumer Features rating Chart
Excellent Very Good Good Poor Very Poor
- 83 -
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
LG
Samsung
Vediocon
Haier
After Sales Service Rating
Excellent Very Good Good Poor Very Poor
- 84 -
- 85 -
Washing Machine
15 39 47 9
14 38 43 5
11 31 15 32 11
7 24 14 30 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Consumer Rating on Quality
Excllent Very Good Good Poor Very Poor
15 39 47 9
14 38 43 5
11 31 15 32 11
7 24 14 30 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Conumer Design Rating Chart
Excellent Very Good Good Poor Very Poor
- 86 -
15 39 47 9
14 41 40 5
11 51 15 12 11
7 24 14 30 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Excellent Very Good Good Poor Very Poor
10 20 33 9 28
14 38 48
11 15 41 22 11
7 24 14 30 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Excellent Very Good Good Poor Very Poor
Customer experience index is the composite of his total experience with the brand, from product quality to after sales service.
Loyalty index is a composite measurement of the proportion of consumers who will buy the product again and will also recommend it.
The delight / dissatisfaction indices are derived by finding the mean of the experience and the loyalty indices. The delight indice measures only the people who rated their product better than 'good'. The dissatisfaction index measures only the people who rated the product as less than 'good'.
- 87 -
The loyalty stakes looks at only the 'most loyal' and the 'most likely to defect', not the people in between.
- 88 -
- 89 -
AC
26 60 14
20 50 20 7 3
13 35 14 27 11
8 34 16 17 25
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Excellent Very Good Good Poor Very Poor
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Features chart
Excellent
Very Good
Good
Poor
Very Poor
24 53 20
23 50 20 7
13 35 14 27 11
13 34 16 17 20
0% 20% 40% 60% 80% 100%
LG
Samsung
Vediocon
Haier
Excellent
Very Good
Good
Poor
Very Poor
- 90 -
5 4 3 2 1
31 55 10 4
19 47 21 7 5
13 35 14 27 11
11 37 13 17 22
0% 20% 40% 60% 80% 100%
Rating
LG
Samsung
Vediocon
Haier
After Sales Service Chart
Excellent Very Good Good Poor Very Poor
- 91 -
- 92 -
After showing the diagram of the all four product analysis of variance is also used
perform the SWOT analysis of these four brands with the help of mean and standard
devialtion
CTV
Mean Std. Deviation Std. Error Lower Limit Upper LimitQuality LG 3.78 .927 .093 3.598 3.962 Samsung 3.93 1.076 .108 3.72 4.4142V/C 3.12 1.277 .128 2.869 3.371
FeatureLG 3.98 .838 .083 4.143 3.817Samsung 4.08 .567 .057 3.948 4.172V/C 2.96 1.41 .114 2.736 3.184
After Sales Services
LG 3.92 .762 .076 3.771 4.068Samsung 4.14 .613 .063 4.016 4.264V/C 2.83 1.216 .121 2.592 3.068
DesignLG 4.16 .663 .066 4.036 4.29Samsung 3.63 1.012 .101 3.432 4V/C 2.75 1.341 .134 2.642 3.012
Refrigerator
QualityLG 6.38 2.391 .239 5.912 6.848Samsung 3.98 .633 .063 3.857 4.103V/C 3.09 1.115 .111 2.287 3.307
featuresLG 3.81 .935 .094 4.120 3.837Samsung 3.84 .663 .066 3.710 5.133V/C 2.97 1.414 .141 2.69 3.24 After Sales Services
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Lg 3.97 .956 .096 3.78 4.158Samsung 3.56 1.012 .101 3.363 3.757v/c 3.02 .875 .078 1.5 4.548Design LG 3.81 .926 .093 3.62 3.992Samsung 3.70 .736 .074 2.25 5.950Videocon 3.04 .635 .063 1.80 4.27
Washing Machine
QualityLG 3.90 .678 .068 2.57 5.232Samsung 3.61 .935 .094 1.77 5.452V/c 3.00 1.232. .123 2.759 3.241
FeaturesLG 3.90 .678 .078 2.38 5.42Samsung 3.24 1.246 .124 2.97 3.48V/c 3.39 .935 .094 1.548 5.232DesignLG 3.90 .876 .087 2.195 5.605Samsung 3.61 .325 .032 2.983 4.267V/C 3.39 .932 .093 1.568 5.212
After Sales Services
LG 2.75 1.265 .126 2.504 2.99Samsung 3.66 2.135 .213 3.243 4.077V/C 2.83 1.255 .122 2.591 3.069
AC
QualityLG 4.07 2.115 .210 3.653 4.48Samsung 3.89 .885 .098 1.97 5.81Haier 3.24 .675 .067 1.93 4.35FeaturesLG 4.07 2.101 .210 3.653 4.48Samsung 2.87 1.987 .198 2.482 3.25Haier 3.04 1.111 .111 2.823 3.257
After Sales ServiceLG 4.13 2.101 .210 3.718 4.54Samsung 3.89 .285 .018 3.855 3.92Haier 3.04 1.111 .111 2.823 3.257
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DesignLG 4.32 .125 .120 4.084 4.56Samsung 3.54 .675 .067 2.2268 4.853Haier 3.29 .852 .085 3.124 3.45
In order to compare the component like (Quality, Features, Desing, After Sales Service )
of four brands LG, Samsung, Videocon and Haier t-test was used. Then the total sample
is devided into groups and mean standard deviation, standard error and t- value was
calculated.
The result from this analysis is divided into four categories.
Catagories1. <CTV>
The result from this category explain that, Samsung is far better than LG in
terms of quality, features and after sales services. It was found that LG is only ahead in
terms of design.
CTV Analysis OF LG With Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value
LG 3.78 .927 .093 -10
Quality Samsung 3.93 1.076 .108
LG 3.98 .838 .083
Features Samsung 4.06 .567 .057 -6.92
LG 4.16 .663 .066
Design Samsung 3.63 1.012 .101 15.14
LG 3.92 .762 .076
ASS Samsung 4.14 .613 .063 -16.92
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CTV Analysis of LG With Videocon
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 3.78 .927 .093 18.85
Quality Videocon 3.12 1.227 .128
LG 3.98 .838 .083
Features Videocon 2.96 1.141 .141 17.586
LG 4.16 .663 .066
Design Videocon 2.75 1.341 .134 20.73
LG 3.92 .762 .076
ASS Videocon 2.83 1.216 .121 24.22
Refrigerator Analysis
Differentiation LG With Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significanc
LG 6.38 2.391 .239
Quality Samsung 3.98 .633 .063 13.63
LG 3.81 .935 .094
Features Samsung 3.84 .663 .066 .071
LG 3.81 .926 .093
Design Samsung 3.70 .736 .074 5.71
LG 3.97 .956 .096
ASS Samsung 3.56 1.012 .087 12.23
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Refrigerator Analysis of LG with Videocon
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 6.38 2.391 .239
Quality Videocon 3.09 1.115 .111 25.70
LG 3.81 .935 .094
Features Videocon 2.97 1.414 .142 17.5
LG 3.81 .926 .093
Design Videocon 3.04 .635 .063 25.66
LG 3.97 .956 .096
ASS Videocon 3.02 .875 .078 32.77
Washing Machine
Analysis Between LG and Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 3.90 .678 .068
Quality Samsung 3.61 .935 .094 11.15
LG 3.90 .678 .078
Features Samsung 3.24 1.246 .123 10.15
LG 3.90 .876 .087
Design Samsung 3.61 .325 .032 3.22
LG 2.75 1.265 .126
ASS Samsung 3.66 2.135 .213 -10.70
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Differentiation between LG and Videocon
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 3.90 .678 .068
Quality Videocon 3.00 1.232 .123 16.36
LG 3.90 .678 .078
Features Videocon 3.39 .935 .093 34
LG 3.90 .876 .087
Design Videocon 3.39 .932 0.93 7.28
LG 2.75 1.265 .126
ASS Videocon 2.83 1.225 .011 .072
AC
In ACs, LG had a slight lead over Samsung . Videocon made up the median on
quality of product. Those who fell below the median were National, Haier managed
to stay just below the median.
Differentiation between LG and Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 4.07 2.105 .210
Quality Samsung 3.89 .885 .088 1.44
LG 4.07 2.101 .210
Features Samsung 2.87 1.987 .198 100
LG 4.32 .125 .012
Design Samsung 3.61 .325 .032 35.5
LG 4.31 1.265 .126 .087
ASS Samsung 3.66 2.135 .213 3.05
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Differentiation between LG and Haier
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance
LG 4.07 2.105 .210
Quality Haier 3.24 .675 .067 5.80
LG 4.07 2.101 .210
Features Haier 3.04 1.111 .111 10.40
LG 4.32 .125 .012
Design Haier 3.29 .852 .085 14.10
LG 4.31 1.265 .126
ASS Haier 3.04 .935 .093 38.48
CTV Segment: In CTV segment 38 percent dealer recommend the Samsung
brand, 32 percent dealer recommend LG, 18 percent recommend Videocon and
12 percent recommend the Haier.
In urban areas CTV-29” is the most acceptable size now a days and in other areas
CTV-21” is the most acceptable size.
The colour television (CTV) segment of the consumer durables industry has been
hit by stagnant demand in recent times. CTV manufacturers like Haier and
Videocon have effected price cuts while others have lowered production levels in
the face of rising inventories. They have also initiated drives to clear old stocks.
Washing Machine Segment: In washing machine segment LG got the highest
dealer recommendation 32 Percent , Samsung got 28 percent, Videocon got 26
percent and Haier got 14 percent dealer recommendation.
- 99 -
The washing machine market consists of two broad segments - semi-automatic
and fully automatic. The first accounts for a chunk of the market. In terms of
loading type, top loading machines sell in greater numbers than front-loading ones
Refrigerator Segment: In refrigerator segment LG got 36 percent dealer
recommendation , Samsung got 28 percent dealer recommendation , Videocon got
23 percent and Haier 13 percent respectively
In the case of refrigerators, a chunk of the sales are still in the direct cool segment
as against the frost-free one, But replacement buyers tend to go for
technologically improved models. Hence, sales of frost-free refrigerators have
grown steadily over a period of time.
AC segment: In AC segment LG also got the Highest recommendation 42
percent, Samsung got 26 percent, Haier got 22 percent and Videocon got the 10
percent recommendation .
The important finding is that the difference between the best and the also-rans has
narrowed even more. The difference between the topper and the number four or
five in any category is mostly in single digit percentage points.
Dealer disclosed the fact that approx 85 percent customer come with Prior
knowledge of product price, features, discount offer, exchange offer only 15
percent are unknown customer.
Almost two-thirds of the customers rate the durable brands they own as excellent
or very good. This phenomenon is common across all categories.
The survey also brings out how companies have excelled in one area of product or
service delivery, only to falter in another. There are brands which score extremely
- 100 -
high on product quality - but fall way behind in complaint management. And vice
versa.
The Survey highlights the positive growth trends in consumer durable segments –
white goods and consumer electronics during April-March 2004-05 and points
tosustained growth during 2005-06 because of emerging opportunities and strong
fundamentals of the economy.
Unlike automobiles, consumer durables do not require regular servicing. And
reliability is something that most customers take as a given these days. Despite
that, no company can afford to slip up on the after-sales service and complaint
management front. This is one factor that can make or break a brand
The price difference between branded and unbranded goods has narrowed down
and with branded players providing good after sales services and support
consumer prefer to buy branded products.
The consumer durables industry appears to have two clearly differentiated
segments. The MNCs have an edge over their Indian counterparts in terms of
technology combined with a steady flow of capital. The domestic companies
compete on the basis of their well-acknowledged brands, anextensive distribution
network and an insight into local market conditions.
Competitive strategies revolve around strong brand differentiation and prices.
Bargaining power of customers is high due to availability of many brands.
Demand is Cyclical and seasonal. Demand is high during festive season and is
generally dependent on good monsoons. Purchase necessarily is done only
- 101 -
during the harvest, festive and wedding seasons — April to June and October to
November in North India and October to February in the South.
Rural India, which accounts for nearly 70% of the total number of households,
offers plenty of scope and opportunities for the white goods industry. The urban
consumer durable market for products including TV is growing annually by 7 to
10 % whereas the rural market is zooming ahead at around 25 annually.
Increasing consumer awareness and preference for new models have added the
demand. Products like air conditioners are no longer perceived as luxuryproducts
but are treated as necessities in the changed socio-economicenvironment with
changed life styles.
Attractive consumer loan schemes with reduced interest rates over the years by
the financial institutions and commercial banks and the hire-purchase schemes
have added to the surge in demand. Besides, the consumer goods companies are
themselves coming out with attractive financing schemes to consumers through
their extensive dealer network.
The phenomenal growth of media in India and the flurry of television channels
and the rising penetration of cinemas have spread awareness of products in the
remote markets.
The Internet being now used by the market functionaries that will lead to
intelligence sales of the products. It will help to sustain the demand boom
witnessed recently in this sector.
- 102 -
CONCLUSION
RECOMMEDATION
- 103 -
Recommendations and conclusion
Penetration of consumer durables would be deeper in rural India if banks and financial
institutions come out with liberal incentive schemes for the white goods industry
segment, growth in disposable income, improving lifestyles, power availability, low
running cost, and rise in temperatures.
While the consumer durables market is facing slowdown due to saturation in the urban
market, rural consumers should be provided with easily payable consumer finance
schemes and basic services, after sales services to suit the infrastructure and the existing
amenities like electricity, voltage etc.
Currently, rural consumers purchase their durables from the nearest towns, leading to
increased expenses due to transportation. Purchase necessarily done only during the
harvest, festive and wedding seasons — April to June and October to November in
North India and October to February in the South, believed to be months `good for
buying’, should be converted to routine regular feature from the seasonal character.
Rural India that accounts for nearly 70% of the total number of households, has a
2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of
scope and opportunities for the white goods industry. The urban consumer durable
market for products including TV is growing annually by 7 to 10 % whereas the rural
market is zooming ahead at around 25 % annually. According to survey made byindustry,
the rural market is growing faster than the urban India now. The urban market is a
replacement and up gradation market now.
- 104 -
e-business solutions integrate knowledge across the supply chain. Easy access to
information on customers, products and trends can be a competitive advantage by
offering better customer service, accurate product data and up to date forecasts.
e-Procurement solutions provide electronics companies with access to parts catalogs
and to place orders at anytime with contracted distributors. With the information
collected from these systems, companies can provide the value-added services of
manufacturer negotiation, rebate management, inventory planning and reporting.
Purchasing volume can be leveraged and more emphasis can be placed on product
negotiation and selection.
Warehouse Management Systems are software packages that help distributors optimize
their use of warehouse space and warehouse labor. In addition, warehouse systems
dramatically reduce mispicks.
From the above stated discussion, it is revealed that although LG is market leader in AC,
Washing Machine and Refrigerator Segment in NCR, yet LG is getting tough
competition from Samsung Due to excellent design , Display of Products at store and
after sales services. To stay ahead in competition LG should improve it’s after sales
service in rural areas and it should offer better display at store. In this present era it is not
an option to adopt few differentiations strategies but they should be in advance in every
area to stay ahead in competition.
- 105 -
BIBLIOGRAPHY
- 106 -
BIBLIOGRAPHY
1. Dr. Yasho V, Verma (2007), “Passion The Untold Story of LG Electronics
India”(WEAkLY)
2. Hair/ Bush/ Ortinau (2006). pearson“ Marketing Research” (page 145)
3. ECONOMICS TIMES
4. www.lgindia.com
5. http://www2.uiah.fi/projects/metodi
6. http://creativecommons.org/licenses/by/2.0
7. http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html:
8. http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html
9. www.winebusiness,com
10. http://www.researchandmarkets.com/reports/53984
11. www.marketingpower.com
12. www.godrej.com
13. www.haier.com
14. www.videocon.com
15. www.samsung.com
- 107 -
APPENDIX
Questionnaire for CTVPURPOSE OF STUDY
I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.
Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential
Q1. Which of the following brands of CTV, you are dealing in? (Please Tick)a) LG b) Samsung c) Videocon c) Haier d) Any Other (Please Specify) ________
Q2 How many models do you display for each brand?
15Samsung LG Haier Videocon
2129LCDPLASMA
Q3 which are the two highest selling models of each company in CTV & their prices?
Samsung -………………………………………………………… LG…… -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………
Q4. To what extents, following brands of CTV are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Brands Very High High Low Very Low NilLGSamsung
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HiearVideoconSony
Q5 What is the price band for which the customer looks for while making purchase decision?Segment Brand Price 15 ………… ………… 21 ………… ………… 29 ………… ………… LCD ………... ………… Plasma ………… …………
Q6 Is customer ready to pay premium for additional features? ………………………………………………………………………….. Q7 What is the expected percentage of customers who are willing to pay? Premium ……………. Low-end ………….. Q8. What are the parameters on which consumer makes his purchase decision?
Parameters Rank
o Price ……..o Packaging .…….o Product Features …….o Brand Name …….o Product Quality …….o Product Design . ……
Q9 What is the annual estimated sales of CTV?
Brand Amount
o Samsung …………..o L.G …………..o Videocon .………….o Sony .………….o Haier …………..
Q10. Does customer come with prior knowledge/information about particulars brands of CTV?
h) Yes b) No If yes, what types of information/knowledge, they have?
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a) About Discount Offer. b) About Exchange Offer. c) About New Features. d) Any Other (Please Specify) ___________________________
Q11. When customers mostly visit showroom for buying CTV?e) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Q12. What is the most acceptable size in CTV now days?b) 14inch b) 21inch 29 inch LCD 26 PLASMA 42 32 50 40 46 52 d) Any Other (Please Specify) ___________________________
Q13. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
q) Television ________ e) Radio ________
r) Newspapers ________ f) Magazines ________
s) Pamphlets ________ g) Internet ________
t) Trade Shows ________
Q14. What different complaints are faced by you from your customer?(Mark √ to appropriate one)
BrandComplaints
LG Samsung Haier Videocon Sony
Bad Picture qualityProblem with Picture tube High Electricity ConsumptionFading of Colour
Q15. Which Brand you Recommend and why?
………………………………………………………………………………………………
PERSONAL PROFILE
- 110 -
Dealer’s Name: ____________________________Address: ____________________________
_______________________________________________________________________________________
Ph. No.:- ____________________________Date: Sign/ Stamp
- 111 -
Apendix……………………………………………………………………2
Questionnaire for AC
PURPOSE OF STUDY
I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.
Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential
Q1.Which of the following brands of AC, you are dealing in? (Please Tick)b) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand? Capacity Samsung
W/S LG W/S
Haier W/S
Videocon W/S
0.75 Ton1 Ton1.5 Ton1.6 Ton2 Ton
Q3 Which are the two highest selling models of each company in AC & their prices?
Samsung -………………………………………………………… LG…… -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………
Q4.To what extents, following brands of AC are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Brands Very High High Low Very Low NilLGSamsungHiearVideoconBlueStar
- 112 -
Q5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price 0.75Ton ……………… ………… 1.0Ton ………………. …………. 1.5Ton ……………….. ………… 1.6Ton ……………….. ..………… 2.0Ton ……………….. ………… Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..
Q7. What is the expected percentage of customers who are willing to pay?
Premium ……………. Low-end …………..Q8. What is the annual estimated sales of AC?
Brand Amount
o L.G …………..o Samsung …………..o Videocon .………….o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature
Feature Rank Order
f) Price _________
g) Design _________
h) Features _________
i) Dealers Communication _________
f) Brand Name _________
Q10. Does customer come with prior knowledge/information about particulars brands of AC?
i) Yes b) No
If yes, what types of information/knowledge, they have?e) About Discount Offer. f) About Exchange Offer.
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g) About New Features. h) Any Other (Please Specify) ___________________________
Q11. When customers mostly visit showroom for buying AC?f) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Q12. What is the most acceptable size in AC now days?c) 1Ton b) 1.5Ton c) 2 Tond) Any Other (Please Specify) ___________________________
Q13. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
u) Television ________ e) Radio ________
v) Newspapers ________ f) Magazines ________
w) Pamphlets ________ g) Internet ________
x) Trade Shows ________
Q14. What different complaints are faced by you from your customer?(Mark √ to appropriate one)
BrandComplaints
LG Samsung Haier Videocon Blue Star
Bad cooling quality
Problem with Noise
High Electricity ConsumptionCost of Maintenance
Q15. Which Brand you Recommend and why?
………………………………………………………………………………………………
PERSONAL PROFILE
Dealer’s Name: ____________________________
Address: ______________________________________________________________________________________
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_____________________________Ph. No.:- __________________________
Address:-
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Apendix……………………………………………………………………3
Questionnaire for Washing Machine
PURPOSE OF STUDY
I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.
Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential
Q1.Which of the following brands of Washing Machine you are dealing in? (Please Tick)
c) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand? Capacity Samsung
LG
Haier Videocon
Semi automaticTop LoadingFront Loading
Q3 Which are the two highest selling models of each company in Washing Machine & their prices ?
LG -………………………………………………………… Samsung -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………
Q4.To what extents, following brands of Washing Machine are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)
Brands Very High High Low Very Low NilLGSamsungHiearVideoconBlueStar
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Q5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price Semi Automatic ……………… ………… Top Loading ……………….. ………… Front Loading ……………….. …
Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..
Q7 What is the expected percentage of customers who are willing to pay?
Premium ……………. Low-end …………..Q8 What is the annual estimated sales of Washing Machine?
Brand Amount
o L.G …………..o Samsung …………..o Videocon .………….o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature
Feature Rank Order
j) Space _________
k) Colour(s) _________
l) Brand Name _________
m) Features
Q10. Does customer come with prior knowledge/information about particulars brands of Washing Machine?
j) Yes b) No
If yes, what types of information/knowledge, they have?i) About Discount Offer. j) About Exchange Offer. k) About New Features. l) Any Other (Please Specify) ___________________________
Q11. When customers mostly visit showroom for buying Washing Machine?
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g) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Q12. What is the most acceptable size in Washing Machine now days? Catagorys Model
d) Semi Automatic …………….. k) Top Loading …………… l) Front Loading ……………….
Any Other (Please Specify) ___________________________
Q13. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
y) Television ________ e) Radio ________
z) Newspapers ________ f) Magazines ________
aa) Pamphlets ________ g) Internet ________
bb) Trade Shows ________
Q14. What different complaints are faced by you from your customer?(Mark √ to appropriate one)
BrandComplaints
LG Samsung Godrej Videocon Electrolux Kelvinator
Spinning Problem
Problem with Compressor High Electricity ConsumptionNoiseFading of Colour
Time consuming
Q15. Which Brand you Recommend and why?
………………………………………………………………………………………………PERSONAL PROFILE
Dealer’s Name: ____________________________
Address: ______________________________________________________________________________________
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Apendix……………………………………………………………………4
Questionnaire for Refrigerators
PURPOSE OF STUDY
I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.
Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential
Q1.Which of the following brands of Refrigerators, you are dealing in? (Please Tick)d) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand?e) 165 L e) 365 L m) 210 L f) 410 L n) 310 L g) 600 L
Q3 Which are the two highest selling models of each company in Refrigerators & their prices?
LG -………………………………………………………… Samsung -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………Q4.To what extents, following brands of Refrigerators are preferred by customers?
(Mark the appropriate preference level by ticking against respective brand)
Brands Very High High Low Very Low NilLGSamsungHiearVideoconQ5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price (a) 165L ……….. …………(b) 210L ……….. …………(c) 310L ………… ………….(d) 410L ……….. ..………Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..
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Q7 What is the expected percentage of customers who are willing to pay ?
Premium ……………. Low-end …………..Q8 What is the annual estimated sales of Refrigerators?
Brand Amount
o L.G …………..o Samsung …………..o Videocon .………….o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature
Feature Rank Order
n) Space _________
o) Front Door Design _________
p) Cooling Effect _________
q) Colour(s) _________
r) Brand Name _________
s) Features _________
Q10. Does customer come with prior knowledge/information about particulars brands of Refrigerators?
o) Yes b) No
If yes, what types of information/knowledge, they have?m) About Discount Offer. n) About Exchange Offer. o) About New Features. p) Any Other (Please Specify) ___________________________
Q11. When customers mostly visit showroom for buying Refrigerator?h) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________
Q12. What is the most acceptable size in Refrigerator now days?f) 165 L e) 365 L p) 210 L f) 410 L q) 310 L g) 600 L
Any Other (Please Specify) ___________________________
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Q13. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)
cc) Television ________ e) Radio ________
dd) Newspapers ________ f) Magazines ________
ee) Pamphlets ________ g) Internet ________
ff) Trade Shows ________
Q14. What different complaints are faced by you from your customer?(Mark √ to appropriate one)
BrandComplaints
LG Samsung Godrej Videocon Electrolux Kelvinator
Low Cooling Effect
Problem with Compressor High Electricity ConsumptionInadequate Storage SpaceFading of Colour
Q15. Which Brand you Recommend and why?
………………………………………………………………………………………………
PERSONAL PROFILE
Dealer’s Name: ____________________________
Address: ___________________________________________________________________________________________________________________
Ph. No.:- ____________________________
Date: Sign/ Stamp
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1 Response:
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
2 Response:
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3 Response:
Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0
Brands of Refrigerator prefered by customer
0
5
10
15
20
25
LG Samsung Haier Videocon
RESPONSE Preference LEvel
4
Season in Which Customer Mostly Purchase Refrigerator
16%
84%
0%
Off Season Summer Season Any Other
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5
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
6
Prior Knowledge/Informations
54%
46%
Yes No
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7
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
8
Acceptable Size in Refrigerator
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
165 L 210 L 310 L 365 L 410 L 600 L
Size of Refrigerator
Ave
rag
e S
core
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9 Response:
NO. of RESPONDENTS
2
4
6
8
< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above
10
RESPONSE
LG Samsung Videocon Haier
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11
Visit In Which Customer Finalize their Decision
60%
33%
7% 0%
At First Visit At Second Visit At Third Visit Any Other
12
Prior Knowledge/Informations
54%
46%
Yes No
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13
Season in Which Customer Mostly Purchase Refrigerator
16%
84%
0%
Off Season Summer Season Any Other
14
Customer Mostly Visit Showroom
50%
23%
27%0%
Exchange Offer Gift Option Discount Offer Any Other
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