comparative study of LG electronics with its competotors

7/30/2019 comparative study of LG electronics with its competotors

1/73

1

PROJECT REPORT

ON

COMPARATIVE STUDY OF LG

ELECTRONICS WITH ITS COMPETITORS

Report submitted for the requirement of the degree of

MASTERS OF BUSINESS ADMINISTRATION

(FALL WINTER/2010-12)

INDUSTRY GUIDE SUBMITTED BY

Mr. Varun Mehta Sandeep chauhan

Section fe1

Idno:D1012FWISBE-

A1027-(DEL-5A-1267)

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

NEW DELHIE-MAIL:[email protected]; WWW.IIPM.EDU
mailto:[email protected]:[email protected]:[email protected]:[email protected]://images.google.co.in/imgres?imgurl=http://www.goodlogo.com/images/logos/lg_electronics_logo_2486.gif&imgrefurl=http://www.goodlogo.com/extended.info/2486&usg=__5f_2AqsRtzjMRCaBGs0T1hhKvy4=&h=182&w=300&sz=4&hl=en&start=5&um=1&itbs=1&tbnid=Ifci1NyBWGeGxM:&tbnh=70&tbnw=116&prev=/images?q=logo+lg+electronics&um=1&hl=en&sa=N&tbs=isch:1


2/73

2

STUDENT DECLARATION

This is to certify that the Dissertation titledCOMPARATIVE STUDY OF LG

ELECTRONICS WITH ITS COMPETITORS in partial fulfillment of the requirement

for the award of degree MASTERS OF BUSINESS ADMINISTRATION IIPM NEW DELHI is

an authentic work carried out by me with the best of my efforts.

To the best of my knowledge the content of this thesis is original and authentic

being practical to every nature.

Date:

Place:

SANDEEP CHAUHAN


3/73

3

ACKNOWLEDGEMENT

I wish to express my heartfelt appreciation to many who have contributed to this study. I would

like to thank to my Faculty Guide Mr. Aman Chug & Industry Guide Mr. Varun Mehta for their

valuable guidance. I wish to express my gratitude to my faculty guide, who provided me with

constant impetus to complete this project.

I wish to convey my heartfelt thanks to all my friends for their encouragement and moral supportduring the course of my project work. The inspiration behind successful completion of my

project work is their endurance, everlasting strong support and endless prayers.

Lastly I express my thanks to all those who helped me directly or indirectly for the successful

completion of this project.

SANDEEP CHAUHAN


4/73

4

PREFACE

The success of any business entity solely depends on how effectively does it

utilizes its optimum resources and how soon does it make arrangements for the

removal of the customers grievances. Moreover, the company should always be

ready to make necessary changes according to the requirement in order to attract

more customers so as to maintain a substantial growth in the market. The topic

given to me was:

COMPARATIVE STUDY OF LG ELECTRONICS WITH ITS

COMPETITORS

I have tried to put my best efforts to complete this task on the basis of skill that I

have achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If there is

any error or any mistake in collecting the data, please ignore it.


5/73

5

TABLE OF CONTENTS

1.INTRODUCTION

2.COMPANY PROFILE

3.OBJECTIVE OF STUDY

Limitations

4.RESEARCH METHODOLOGY

a)Research Design

b)Data Collection

c)Selection of Sample

d)Sample Area

e)Sample size

f) Statistical Technique

g)Proposed Questionnaire

DATA ANALYSIS & FINDINGS

CONCLUSION

SUGGESTION & RECOMMENDATION

REFRENCE

QUESTIONNAIRE


6/73

6

EXECUTIVE SUMMARY

All human actions have one of these seven causes: chance, nature, compulsion, habit,

reason, passion and desire. As a human being the major cause to take over this project was

reason. The reason is to accomplish my task, aim, and motive of enhancing my knowledge and

to know more about the consumer durable industry. Consumer durables have become inseparable

in this era of modernization and thus influence even the common mens life. This is one of the

fastest growing industry with an growth of about 8% every year. Invention and the launch of new

technology is the most important tool of this industry. To maintain the quality of products

provided to the customers the companies dealing in the consumer durable products has to

undergo extensive study and research work. This project work is a small attempt to understand

the dealer, retailer as well as the consumer behavior in regards to the Colour television, Washing

machine, Refrigerator & Air conditioners and to find out the position of LG Electronics among

its competitors.

This SIP project is being conducted on Consumer durables i.e. CTV, Washing Machine,

Refrigerator & Air conditioner for (LG Electronics India private limited), I am focusing on

Comparative Market and consumer behavior study of consumer durables of LG vis--vis

its competitors i.e. Samsung, Videocon, Haier, Bluestar in CTV, Washing Machine,Refrigerator & A.C segment. For this, Survey was conducted with a set of questionnaire

containing the questions which helped in obtaining the desired information from the dealers &

retailers. In the next segment of study the consumers will be targeted with a set of questionnaire

for the desired information. Till date around 50 dealers and Retailers were approached in the

Noida and its neighboring districts. The information was obtained through questionnaire. The

copy of questionnaire is being attached with this report. The method of personnel interview was

also adopted for those who were unwilling to give any information in writing. At present around

100 of such interviews have been conducted keeping in mind the requirements of the survey

being conducted.


7/73

7

INTRODUCTION

A comparative marketing study of LG Electronics vis--vis competitors(Samsung, Haier,

Videocon, Godrej ) in the area of Noida and DelhiAll 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 learners

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

competitors 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 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.


8/73


9/73

9

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 inan over-supply situation in recent times as growth levels have tapered off.

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.


10/73

10

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.

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


11/73

11

2.LG Electronics: Company Profile

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 corporations

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.

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.

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


12/73

12

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 stronglocal 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:

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.


13/73

13

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 LGs 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, Indias no -2 car

producer. LG had good products and smart marketing. But LG went further bychallenging Indian work habitsnegative management traits, such as ducking

challenges and tolerating excuses, Indian work habits.. negative management traits

such as duckling challenges and tolerating excuses, are 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.


14/73

14

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 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,


15/73

15

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 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.


16/73

16

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.

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.


17/73

17

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.

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 companys 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


18/73

18

reach or our aspiration to emerge as a global company. It also implies the face of a smiling

customer, conveying that we are extremely customer-focused, or that we represent a world that is

futuristic youthful and humane.

The bulls 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 LGs 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.

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


19/73

19

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.

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


20/73

20

become an integral part of an organization's brand building strategy, but has also emerged as an

important tool to enhance the organization's credibility, attract potential investors and clients and

employ the best of industry talent.

As a leading corporate in India, we at LG believe that corporate contribution to society when

guided by self-interest results in long term goodwill building, and have therefore endeavored to

assume responsibility for the needs of its people, the environment and the society. We have

consistently looked beyond its immediate business environment to address larger societal issues.

This concern springs from the belief that a true corporate vision must embrace the wider

community rather than just shareholders, customers and suppliers. At the same time, there is

nothing idealistic about LG's CSR vision, nor is it in conflict with hard-headed business sense.

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 adoptedformally. 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.


21/73

21

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 USPs of other competitive brands.


22/73

22

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.

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.


23/73

23

RESEARCH 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 collectedfrom various magazines, fact sheets newspapers and websites published by the

company.

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.


24/73

24

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 -LikertScale.

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.

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 1strongly 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


25/73

25

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

Data 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


26/73

26

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.

The data collection instrument was a questionnaire which consisted of 14 questions on each

product and which measured different attributes

b. Analysis of Survey

b1. How long are customers in the retailing of refrigerators? (Please Tick)Response:

ATTRIBUTES NO. OFRESPONDENTS % AGE OFRESPONDENTS

< 1 Year 2 10

1 < 2 Year 4 20

2 < 3 Year 6 30

3Years orAbove

8 40

NO. of RESPONDENTS

2

4

6

8

< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above


27/73

27

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 93.33

Haier 11 76.67

Samsung 17 86.67

Videocon 13 76.67

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


28/73

28

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, High3, Low2, Very Low1, Nil0

ATTRIBUTES RESPONSE PREFERANCELEVEL

LG 17 3.56

Samsung 14 3.47

Haier 12 2.70

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


29/73

29

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 feature

Rank 5=the least important feature

Feature Rank Order

a) Space _________

b) Front Door Design _________

c) Cooling Effect _________

d) Colour _________e) Brand Name _________

Response:

ATTRIBUTES Rank order

Space 2

Front Door Design 5

Cooling Effect 3

Colour 4

Brand 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


30/73

30

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 DEALERSAt Fist Visit 60

At Second Visit 33.33

At Third Visit 06.67

Any Other 00


31/73

31

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 ofrefrigerator?

a) Yes b) No

Response:

ATTRIBUTES NO. of DEALERSYes 54No 46


32/73

32

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 doesnt

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


33/73

33

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 0.37600 L 06 0.20

Any Other 00 00


34/73

34

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

AverageScore

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

B11. Please rank each of the following modes of payment from 1 to 5 opted bycustomers.


35/73

35

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 _________

Cashc) Cheque _________

d) Installments Through Cheques _________

e) Credit / Debit Card _________

Response:

Attributes RankCash in Full

1Installments Through Cash 3

Cheque 4

Installments Through Cheques 2

Credit / Debit Card 5

c. Analysis of Survey

c1. How long are Dealer in the retailing of CTV? (Please Tick)

Response:

ATTRIBUTES NO. OFRESPONDENTS

% AGE OF

RESPONDENTS

< 1 Year 2 10

1 < 2 Year 4 20

2 < 3 Year 6 30

3Years orAbove

8 40


36/73

36

NO. of RESPONDENTS

2

4

6

8



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.

C2. To what extents, following brands of CTV are preferred by customers?


Response:


ATTRIBUTES RESPONSE PREFERENCELEVEL

LG 14 3.56

Samsung 17 3.98

Videocon 12 3.17

Haier 9 2.67


37/73

37

RESPONSE

LG Samsung Videocon Haier




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 orderPrice 1Packaging 6

Product Features 4

Brand Name 3

Product Quality 2Product Design 5


38/73

38

C5. At which visit, customer generally finalize his/her decision for buying a CTV?

Response:




Any Other 00


60%

33%

7% 0%


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


39/73

39

Response:

ATTRIBUTES %age of DEALERSYes 54No 46


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 doesnt 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



Any Other 00


40/73

40


50%

23%

27%

0%


C8. Below are different modes of promotion. Please rank following modes from 1 to 7,


(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


41/73

41

C9. Please rank each of the following modes of payment from 1 to 5 opted bycustomers.


Rank 5 = the least adopted mode of payment


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



d. Analysis of Survey

d.1. How long are Dealer in the retailing of AC? (Please Tick)

Response:


% AGE OF

RESPONDENTS

< 1 Year 2 10

1 < 2 Year 4 20

2 < 3 Year 6 303Years or Above 8 40


42/73

42

NO. of RESPONDENTS

2

4

6

8


This chart tells us about the work experience of dealers i.e. for how long have they been inretailing of AC. As can be seen from the pie chart that 60% of the dealers have been in retailingof 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% ofrespondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the totalrespondents have been in the retailing of AC for less than 1yrs.

D2.. To what extents, following brands of AC are preferred by customers?


Response:


ATTRIBUTES RESPONSE PREFERENCELEVEL

LG 17 3.85

Samsung 14 3.47

Haier 12 2.7

Videocon 17 3.17


43/73

43

RESPONSE

LG

SamsungSony

Videocon




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


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 orderPrice 1

Packaging 6Product Features 4

Brand Name 3

Product Quality 2Product Design 5


44/73

44

D4. At which visit, customer generally finalize his/her decision for buying a AC?

Response:




Any Other 00


60%

33%

7% 0%


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:



45/73

45


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 doesnt have prior knowledge

about AC

D6.. In which season, customer mostly purchase AC? (Please Tick)

Response:

Attributes No. of DealersOff Season

16Summer Season

84Any Other

00


46/73

46

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.

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:




Any Other 00


47/73

47


50%

23%

27%0%


D8. Below are different modes of promotion. Please rank following modes from 1 to 7,


(Rank1 = high, Rank 7 = low)i) Television ________ e) Radio ________

j) Newspapers ________ f) Magazines ________

k) Pamphlets ________ g) Internet ________

l) Trade Shows ________

Response:


Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04


48/73

48

Internet 07

D9. Please rank each of the following modes of payment from 1 to 5 opted bycustomers.

Rank 1 = the most adopted mode of paymentRank 5 = the least adopted mode of payment


k) Cash in Full _________

l) Installments Through _________Cash

m)Cheque _________

n) Installments Through Cheques _________

o) Credit / Debit Card _________

Response:Attributes Rank

Cash in Full1

Installments Through Cash3

Cheque4

Installments Through Cheques 2Credit / Debit Card

5

e Analysis of Surveye1. How long are Dealer in the retailing of Washing Machine? (Please Tick)

Response:


% AGE OF

RESPONDENTS

< 1 Year 2 10

1 < 2 Year 4 20

2 < 3 Year 6 30

3Years orAbove

8 40


49/73

49

NO. of RESPONDENTS

2

4

6

8



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?


Response:


ATTRIBUTES RESPONSE PREFERENCE

LEVEL

LG 14 3.56

Samsung 17 3.47

Sony 12 2.7

Videocon 17 3.17


50/73

50

RESPONSE

LG

SamsungSony

Videocon




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


e.3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank


Parameters Rank orderPrice 1Packaging 6

Product Features 4

Brand Name 3Product Quality 2Product Design 5

E4. At which visit, customer generally finalize his/her decision for buying a Washing

Machine?


51/73

51

Response:




Any Other 00


60%

33%

7% 0%


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.

E5. Does customer come with prior knowledge/information about particulars brands of

Washing Machine?

g) Yes b) No


52/73

52

Response:



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

doesnt have prior knowledge about Washing Machine.

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:




Any Other 00


53/73

53


50%

23%

27%

0%


E7. Below are different modes of promotion. Please rank following modes from 1 to 7,


(Rank1 = high, Rank 7 = low)m)Television ________ e) Radio ________

n) Newspapers ________ f) Magazines ________

o) Pamphlets ________ g) Internet ________

p) Trade Shows ________

Response:


Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04

Internet 07


54/73

54

E8. Please rank each of the following modes of payment from 1 to 5 opted bycustomers.


Rank 5 =the least

adoptedmode ofpayment


p) Cash in Full _________

q) Installments Through _________Cash

r) Cheque _________

s) Installments Through Cheques _________

t) Credit / Debit Card _________

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).

Attributes RankCash in Full 1

Installments Through Cash 3

Cheque 4




55/73

55

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



56/73

56

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



57/73

57

Refrigerator

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Consumer Quality Rating Chart

Excellent Very good Good Poor Very Poor

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

LG

Samsung

Vediocon

Haier

After Sales Service Rating



58/73

58

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



59/73

59

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


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


Customer experience index is the composite of his total experience with the brand, fromproduct 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 theloyalty 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'.


60/73

60

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


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


61/73

61

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


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 3.962Samsung 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 4


62/73

62

V/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 3.837Samsung 3.84 .663 .066 3.710 5.133V/C 2.97 1.414 .141 2.69 3.24


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 4.548DesignLG 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


LG 2.75 1.265 .126 2.504 2.99Samsung 3.66 2.135 .213 3.243 4.077


63/73

63

V/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 4.54

Samsung 3.89 .285 .018 3.855 3.92Haier 3.04 1.111 .111 2.823 3.257

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 devidedinto groups and mean standard deviation, standard error and t- value was calculated.

The result from this analysis is divided into four categories.

Catagories1.

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.


64/73

64

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 .076ASS Samsung 4.14 .613 .063 -16.92

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


65/73

65

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

Refrigerator Analysis of LG with Videocon


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


66/73

66

Washing Machine

Analysis Between LG and Samsung


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


67/73

67

CONCLUSION

The result of success in todays highly charged competitive market depends not

only in product innovation and level of productivity but also in hands of efficient

service network with technological advancements and more adaptability towards

information edge.

It has been seen that companies are trying to lower the cost of production and

trying to give more emphasis in creating value added customer base and customer

service. It has lead to extreme innovation and cost reduction to the marketer. It is

also seen during last few years that the companies, which have more, efficient, and

meaningful service network and also the companies who have controlled the cost

of distribution have eventually controlled the market.

In order to multiply sales volume, only an efficient dealer and retail network can

widen the geographical reach of a companys products. There is substantial over

capacity in the industry. A shakeout is most likely and survival will depend upon

technology, pricing power, efficient after sales service and to a limited extend

branding power.

One thing has become quite clear now, strategic marketing is critical for survival

and growth.

Assessment of environmental information and determining the relative significance

of threats and opportunities is an important aspect carried by all the major players.

For this preparation of a profile of threats and opportunities is done


68/73

68

Suggestions & Recommendations

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 toincreased expenses due to transportation. Purchase necessarily done only during the

harvest, festive and wedding seasonsApril 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.

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


69/73

69

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.

REFERENCES

1. Dr. Yasho V, Verma (2007), Passion The Untold Story of LG Electronics India

2. Naresh K. Malhotra (2006), Marketing Research- An Applied Oriented

3. Hair/ Bush/ Ortinau (2006). Marketing Research

4. Philip Kotler Marketing Management

5. www.lgindia.com

6. http://www2.uiah.fi/projects/metodi

7. http://creativecommons.org/licenses/by/2.0

8. http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html:

9. http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html

10. www.winebusiness,com

11. http://www.researchandmarkets.com/reports/53984

12. www.marketingpower.com

13. www.godrej.com

14. www.haier.com

15. www.videocon.com

16. www.samsung.com
http://www.lgindia.com/http://www2.uiah.fi/projects/metodihttp://creativecommons.org/licenses/by/2.0http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.htmlhttp://www.winebusiness%2Ccom/http://www.researchandmarkets.com/reports/53984http://www.marketingpower.com/http://www.godrej.com/http://www.haier.com/http://www.videocon.com/http://www.samsung.com/http://www.samsung.com/http://www.videocon.com/http://www.haier.com/http://www.godrej.com/http://www.marketingpower.com/http://www.researchandmarkets.com/reports/53984http://www.winebusiness%2Ccom/http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.htmlhttp://creativecommons.org/licenses/by/2.0http://www2.uiah.fi/projects/metodihttp://www.lgindia.com/


70/73

70

Questionnaire

PURPOSE OF STUDY

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?

15

Samsung LG Haier Videocon

21

29

LCD

PLASMA

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?


Brands Very High High Low Very Low NilLG

Samsung

Hiear

Videocon

Sony


71/73

71

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


Q9What 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?

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 )_________


72/73

72

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,


(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)Brand

ComplaintsLG Samsung Haier Videocon Sony

Bad Picture quality

Problem withPicture tube

High Electricity

ConsumptionFading of Colour

Q15. Which Brand you Recommend and why?

PERSONAL PROFILE

Dealers Name:____________________________Address: ____________________________

_____________________________

__________________________________________________________

Ph. No.:- ____________________________Date: Sign/ Stamp


73/73

Documents

comparative study of LG electronics with its competotors