lg final project.docx

7/26/2019 lg final project.docx

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CONTENTS

Sr.

No.

Title

1. Objective of the project2. Scope of the project3. Introduction4. Company prole!. "e#earch methodolo$y

%. &naly#i#'. (imitation#). Su$$e#tion*. Conclu#ion1+. ,ue#tionnaire11. -iblio$raphy

O-/CTI0/ O T/ "O/CT

rimary objective

Find out the positional dealer who can sale the LG

product in large volume.


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The main objective o research was to identi! potential

dealer and development these dealer. So LG can ma"e

them their direct dealer.

This will ease the dependence on the some big dealer

li"e #aharashtra and #ahaveer electronics.

Find out the problem aced b! the dealer in sales and

the distribution.

Secondary objective

The Objective was to $nd out that how ar the

e%hibitions are helpul in branding&

'hile purchasing the consumer durables which

parameter is most important or the consumer(

)o the consumers preer the $nancial acilit! or

bu!ing consumer durable(

*ow re+uentl! consumers change the consumer

durable(

To enhances the "nowledge o consumer durable

mar"et.

To increases the "nowledge consumer durable

product o LG.


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To enhances the "nowledge about the mar"eting and

branding activit!.

SCO/ O "O/CT

This project gives me great e%posure to the

consumer durable mar"et because it includes product

"nowledge and the $led job in which , have visited the

store comes under the region o -une. )uring this project

, also too" part in the e%hibition o LG which held or the

purpose branding and awareness o LG product. Thisproject helps me to "now the mar"et practicall!. #! job

was during this project to see the mar"et share and also

the displa! share o the LG product in the store. LG

alwa!s insist the /0 displa! share o LG product

because LG believes that O 5I6T& &I 7O -I6T&

&I8.

#! job include while visiting the shops

1.Calculate the displa! share o the LG product in

ever! shop which comes under -une region.

2.Collect the data o actual monthl! sale o the LG

product in ever! shop.

3.Chec" the availabilit! o LG catalogue and the -O-s

in the store.


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4. Find out the problems that the dealer are acing while

sailing the LG product.

. Find out the customer response or the LG product b!

as"ing the owner o the shop.

5. Find out the distributer name rom whom the!

purchasing their product and also weather the! have

direct dealership and which brand.

6. Chec" that demo calls are attended or not

INT"O59CTION

7eore the liberali8ation o the ,ndian econom!&

onl! a ew companies li"e 9elvinator& Godrej& :llw!n&

and ;oltas were the major pla!ers in the consumer

durables mar"et& accounting or no less than


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'ith the increase in income levels& eas!

availabilit! o $nance& increase in consumer awareness&

and introduction o new models& the demand or

consumer durables has increased signi$cantl!. -roducts

li"e washing machines& air conditioners& microwave

ovens& color televisions ?CT;s@ are no longer

considered lu%ur! items. *owever& there are still ver!

ew pla!ers in categories li"e vacuum cleaners& and

dishwashers.

Consumer durables sector is characteri8ed b! the

emergence o #NCs& e%change oAers& discounts& and

intense competition. The mar"et share o #NCs in

consumer durables sector is 50. #NCBs major target is

the growing middle class o ,ndia. #NCs oAer superior

technolog! to the Consumers whereas the ,ndian

companies compete on the basis o $rm grasp o the

local mar"et& their well=ac"nowledged brands& and hold

over wide distribution networ". *owever& the

penetration level o the consumer durables is still low

in ,ndia.

Cla##ication of con#umer durable# #ector


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1.Consumer electronic include vcddvd& home theatre&

music pla!er& color television ?CT;s@& cameras&

camcorders& portable audio& *i=Fi& etc

2.'hite goods include dishwashers& air conditioners&

heaters& washing machines& rerigerators& vacuum

cleaners& "itchen appliances& non="itchen appliances&

microwaves& built=in appliances& Tumble dr!er& personal

care product etc.

3.#oulded luggage include plastics

4.Cloc"s and watches

.#obile phones

Scope

1. ,n term o purchasing power parit! ?ppp@& ,ndia is the

4th largest econom! in the world and overta"e Dapan

in the near uture become the 3rd largest.

2. ,ndian consumer durable mar"et is e%pected to reach

4// billion b! on 2/1/

3. ,ndia has the !oungest population amongst the major

countries. There are lot o people in the diAerent

income categories nearl! the two third population is

below the age o 3 and nearl! /0 is below 2.


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4.There are 5 million people in middle class& who are

earning us4&4//=S21&>// a !ear. :nd there are 5

million rich household in ,ndia.

.The upper=middle and high=income household in

urban areas are e%pected to grew to 3>.2 million in

2//6 as against 14.5 million in 2///.

Opportunity

1. ,n ,ndia the penetration level o white goods is lower

as compared to other developing countries.

2. ne%ploited rural mar"et.

3.apid urbani8ation.

4. ,ncrease in income level& i.e.increase in purchasing

power o consumers.

. Eas! availabilit! o $nance.

Threat#

*igher import duties on row materials. Cheap

imports rom Singapore& China and rom other :sian

countries.


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CO#-:NH -OF,LE

Established in 1


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the ac"nowledged trendsetter or the consumer

durable industr! in ,ndia with the astest ever

nationwide reach& latest global technolog! and product

innovation.

One o the most ormidable brands& LGE,L has an

impressive portolio o *ome :ppliances& Consumer

)urables& )igital )ispla! products& GS# mobile phones

and ,T products.

LG Electronics pursues its 21st centur! vision o

becoming a true global digital leader& ma"ing its

customers worldwide delighted through its innovative

digital products and services. Going orward LG ,ndia

will s!nergi8e all activities in "eeping with the global

vision o becoming a global top 3 pla!er in all business

areas b! ollowing the 7lue Ocean Strateg!. The 7lueOcean strateg! is based on the understanding that onl!

Ie%ible companies that adapt to liec!cle and industr!

changes will enjo! continued growth. The success o


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the 7lue Ocean Strateg! will ocus on creating high

growth J pro$t b! ocusing on $ve "e! areas at LGK

-roducts& 7usiness #odel& 'or"& and S!stems J -eople

LGs top priorit! in 2//6 is to ma%imi8e customer

satisaction and heighten the competitive edge o its

Iagship products.

Contact )etailsK

6 " 6im

#anaging )irector

:=41& #ohan Co=operative ,ndustrial Estate& #athura

oad&

-lot No 1& d!og ;ihar&

New )elhi=11/ /44)elhi

TelK


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esearch methodolog! is considered as the nerve

o the project. 'ithout a proper well=organi8ed research

plan& it is impossible to complete the project and reach to

an! conclusion. The project was based on the surve!

plan. The main objective o surve! was to collect

appropriate data& which wor" as a base or drawing

conclusion and getting result.

Therefore=research methodolog! is the wa! to

s!stematicall! solve the research problem. esearch

methodolog! not onl! tal"s o the methods but also logic

behind the methods used in the conte%t o a research

stud! and it e%plains wh! a particular method has been

used in the preerence o the other methods

"e#earch de#i$n>

esearch design is important primaril! because o

the increased comple%it! in the mar"et as well as

mar"eting approaches available to the researchers. ,n

act& it is the "e! to the evolution o successul mar"eting

strategies and programmers. ,t is an important tool to

stud! bu!ers behavior& consumption pattern& brand

lo!alt!& and ocus mar"et changes. : research design

speci$es the methods and procedures or conducting a

particular stud!. :ccording to 9erlinger& Mesearch )esign


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is a plan& conceptual structure& and strateg! o

investigation conceived as to obtain answers to research

+uestions and to control variance.

& type of re#earch i#>

5e#criptive "e#earch

The t!pe o research adopted or stud! is

descriptive. )escriptive studies are underta"en in man!

circumstances when the researches is interested to "now

the characteristic o certain group such as age& se%&

education level& occupation or income. : descriptive

stud! ma! be necessar! in cases when a researcher isinterested in "nowing the proportion o people in a given

population who have in particular manner& ma"ing

projections o a certain thing& or determining the

relationship between two or more variables. The objective

o such stud! is to answer the Mwho& what& when& where

and how o the subject under investigation. There is a

general eeling that descriptive studies are actual and

ver! simple. This is not necessaril! true. )escriptive


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stud! can be comple%& demanding a high degree o

scienti$c s"ill on part o the researcher.

)escriptive studies are well structured. :n

e%plorator! stud! needs to be Ie%ible in its approach& but

a descriptive stud! in contrast tends to be rigid and its

approach cannot be changed ever! now and then. ,t is

thereore necessar!& the researcher give sucient

thought to raming research.

,ue#tion# and decidin$ the type#o data to be

collected and the procedure to be used in this purpose.

)escriptive studies can be divided into two broad

categoriesK Cross Sectional and Longitudinal Sectional. :

cross sectional stud! is concerned with a sample o

elements rom a given population. Thus& it ma! deal with

household& dealers& retail stores& or other entities. )ata

on a number o

characteristics rom sample elements are collected and

anal!8ed. Cross sectional studies are o two t!pesK Field

stud! and Surve!. :lthough the distinction between them

is not clear= cut & there are some practical diAerences&

which need diAerent techni+ues and s"ills. Field studies

are e%=post=actor scienti$c in+uiries that aim at $nding


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the relations and interrelations among variables in a real

setting. Such studies are done in live situations li"e

communities& schools& actories& and organi8ations.

:nother t!pe o cross sectional stud! is surve!

result& which has been ta"en b! me. : major strength o

surve! research is its wide scope. )etail inormation can

be obtained rom a sample o large population .7esidesP it

is economical as more inormation can be collected per

unit o cost. ,n addition& it is obvious that a sample surve!

needs less time than a census in+uir!. )escriptive

research includes surve! and act $nding en+uiries o

diAerent "inds o the major purpose. )escriptive research

is description o the state o aAairs& as it e%ists at present.

The main characteristic o this method is that the

researcher has no control over the variablesP he can onl!

report what has happened or what is happening. The

methods o research utili8ed in descriptive research are

surve! methods o all "inds including comparative and co

relational methods. The reason or using such needs to be

Ie%ible in its approach& but a descriptive stud! in contrast

tends to be rigid and its approach cannot be changed

ever! now and then.


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&N&(


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4.Consumers also want to compare to the diAerentbrand which are available in the e%hibition.

.So e%hibitions are more useul to increases brandawareness.

5.-eople are less interested to purchase product rom

the e%hibition.

Q.2'hile purchasing consumer durable which parameterinIuences !ou(

-rice

-roduct eature

7rand

Service

)urabilit!

Inference


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1.3+0 o customer gives importance to price. So it

shows that ,ndian consumers are ver! price sensitive.

The! give more importance to price over the brand.

2.250 give importance to brand. So price and 7rand

matter a lots or the costumers. :nd the! are also

want best brand in best price.

3.1


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1. : majorit! o customers preer to bu! rom

showrooms. ;er! less proposition o customers bu!s

rom E%hibitions.

2. 460 customers are preer to b! rom the showrooms

because the showrooms are more convenient to

customers the! also thin" that these shops give more

discounts.

3. -eople are less interested to bu! rom the e%hibition

the! onl! visit the e%hibition or price +uotation o

the product and the comparison o the product.

Q.4.Hou preer to bu! rom the same as !ou have

mentioned in Q.3 because o ollowing reasons

:ttractive -rice

Service

)emonstrations

OAers


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Inference

1.Customers bu! rom showrooms because o the

service and convenience. These are two main

actors.

2.Customers are preerred to bu! rom the showroombecause o the! thin" that these convenient store

ma! provide good ater sell service.

3.Customer also thin"s that there is more chance to

bargain and the! can get more discounts in these

showrooms.

4.-rice also a actor that attract the customer in these

showrooms.

Q..'hich consumer durable !ou have and o which

brand(

CT;


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LC)

-L:S#:

EF

'#

#'

:C

Inference

,n CT; section ma%imum customers have Onida& in LC)

Son! is the leader& ,n plasma 7-L is the leader& ,n e LG

is the leader& #' LG is the leader. ,n '# there are

companies and in :C also.

Q.5. *ow re+uentl! !ou change !our consumer durables(


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1=3 !ears

3= !ears

=1/ !ears

#ore than 1/ !ears

IN/"/NC/

1.Customers preer to change consumer durableswithin =1/ !ears. ,n ,ndia people do not change

consumer durable re+uentl!.

2. 230 customers do not change their consumer

durable within 1/ !ear.

3. ,t represent that ,ndian consumer do not preer to

change their consumer durable re+uentl!.


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Q.6.)o !ou preer an! $nancing scheme to purchase

consumer durables(

Hes

No

IN/"/NC/

#ajorit! o customers do not preer an! $nancial

scheme.


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(I:IT&TIONS

Ever! stud! has certain limitations. ,n m! stud!& also

there were certain limitations& which , could not able to

solve.

1. The research was conducted in a ver! small area.

2. #! research wor" period witness the biggest ups and

downs in product sale o diAerent brands& which

aAected the perception o the customer. This was

biggest drawbac" o m! stud!.

3.Time actor was also important or me. , had onl! 5/

da!s to complete m! research& or which a ull=

Iedged report was insucient or me.

4.The customer $lled the +uestionnaire mostl! in

careless manner& so it was dicult to ma"e them

hold or time.

. , had onl! ound the upper=middle class amil! to $ll

up the +uestionnaire& but generall!& an average

middle class amil! was re+uired or the stud!.


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5. The sample si8e is also ver! small which represent

m! research on consumer behavior.

#! stud! is not recogni8able in whole ,N),: as

well as outside anchi due to the above limitations and

less area coverage.

S9;;/STIONS

1. E%hibitions do not help to generate so much sells but

the! should be conducted regularl!. This helps in

generating awareness regarding the product in

customers which ultimatel! helps in sales.

2.:lso it is helps in advertising or the new products.

Li"e in this e%hibition new LC) SC&"(/T was

advertised. Compan! should alwa!s ocus on service.

3.)ispla! share should be increased where there is lessthan /0 as LG also believes that O 5I6T& &I

7O -I6T& &I8.


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4. Compan! should tr! to improve service. No doubt the

compan! products have technicall! edge over

competitors but in long run it ma! hamper the

compan!s pro$t.

.Compan! should concentrate more on its major

drivers LC)& ,T& and GS#. 7randing and promotions

should be done eAectivel! as it creates a long lasting

image in the mind o customers.

%.Compan! should also cater to the needs o sub

dealers as some o the sub dealers have potential o

high sales.

CONCLS,ON


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LG aces stiA competition rom the #ar"et leader

Samsung and closest rival Son!. ,t is because the! are not

able to create reliable brand image among their

customers. The! need to ocus on developing their

products that can give better e%perience to their

consumer.

From the surve!& it is seen that LG is onl! able to

somewhat satis! their costumers rom their products.

The! need to create a great sense o jo! in their

customers b! oAering unmatched product eatures and

service that will ma"e their customers lo!al to the brand

and this will greatl! help LG in increasing its mar"et

share.

LGs product prices are in comparison with its leading

competitors. The problem is that consumers do not thin"

that LG has that much value and hence preer to bu!

other brands. LG need to oAer more competitive pricing

and better promotions to sell their televisions better.


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,9/STIONN&I"/

Q1. *ave !ou purchased an! consumer durable during

E%hibitions(

a@Hes

b@No

Q.2'hile purchasing consumer durable which parameter

inIuences !ou(

a@-rice

b@-roduct eature

c@7rand

d@Service

e@)urabilit!

Q3. From where !ou preer bu!ing consumer durables

a@E%hibitions


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[email protected]

c@ Showroom

Q.4.Hou preer to bu! rom the same as !ou have

mentioned in Q.3 because o ollowing reasons

a@:ttractive -rice

b@Service

c@ )emonstrations

d@OAers

e@Convenience

Q..'hich consumer durable !ou have and o which

brand(

a@CT; ===================

b@LC) ===================

c@ -L:S#: ===================

)@ EF ===================


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E@'# ===================

F@#' ===================

G@ :C ===================

Q.5. *ow re+uentl! !ou change !our consumer durables(

a@1=3 !ears

b@3= !ears

c@ =1/ !ears

d@#ore than 1/ !ears

Q.6.)o !ou preer an! $nancing scheme to purchase

consumer durables(

a@Hes

b@No


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-I-(IO;"&


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lg final project.docx