A

PROJECT REPORT

ON

“MARKETING STRATEGIES OF LG PRODUCTS”

In the partial fulfillment of the award of the degree of

BACHELOR OF COMMERCE (B.COM VOCATIONAL)

ADVERTISING & SALE PROMOTION2014-2015

Under the Guidance Submitted by

A.C Gupta Nikita Kalyani

Professor Roll No. 150030931156

B.Com IIIrd Vocational (Sales)

ST. JOHN’S COLLEGE, AGRAFORMERLY AGRA UNIVERSITY, AGRA

STUDENT’S DECLARATION

I hereby declare that the Project Report conducted

““MARKETING STRATEGIES OF LG PRODUCTS”” Under

the guidance of Prof. A.C Gupta Submitted in partial

fulfillment of the requirements for the St. John’s College Agra

is my original work and the same has not been submitted for

the award of any other Degree/diploma.

NIKITA KALYANI

ii

ACKNOWLEDGEMENT

It gives me immense pleasure in submitting this project on

“MARKETING STRATEGIES OF LG PRODUCTS” I have

developed this project in partial fulfillment of B.Com from St. John’s

College, Agra I would like to express my sincere ineptness to my

Project Guide Prof. A.C Gupta for his constant guidance and valuable

support during the project work. Encouragement and excellent

guidance in the successful completion of the project work. And of

course nothing could have come true without the support of my

family, friends and all the classmates for their constant

encouragement and useful tips through out my project. I will always

grateful to them.

Nikita Kalyani

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EXEXUTIVE SUMMARY

This report is an analysis of the Marketing Strategies of LG.

LG is a Multinational Company having its presence all over the world. A

thorough study of LG Electronics, how it came into existence & operations of LG

Electronics India, has been presented along with an Indian industry analysis.

Analyzing the company in the backdrop of the Indian Home Electronics was

considered to be important because it is a highly competitive market and it is

very important to know where a company stands in this industry.

There after an intense study has been done into LG’s corporate history, its

origin, developments, expansions, strategies etc. A discussion about LG’s

operations in India follows, and thereby the two chosen areas i.e. Marketing is

discussed in the subsequent sections.

The four P’s of marketing have been discussed in detail individually along with

the product’s brand awareness under the marketing section.

Product: Highlights the addition and change in the product range of the

company and the significance of each of its product lines.

Pricing: The basis used for pricing and how the products have been priced.

Place: The kind of distribution network used to market its products.

Promotion: All the promotion activities to promote the company’s brand and

its products in order its increase its market share.

Findings and recommendations have been drawn keeping the industry and

company analysis in mind. Graphs & Tables have been included in the data

analysis chapter.

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TABLE OF CONTENTS

Chapter 1: Introduction

1.1 Overview of the Industry

1.2 Profile of the Organization

1.3 Problems of the Organization

1.4 Competition Information

1.5 S.W.O.T. Analysis of the Organization

Chapter 2: Objective & Methodology

2.1 Significance of the study

2.2 Managerial usefulness of the study

2.3 Objectives of the study

2.4 Scope of the study

2.5 Methodology

Limitation

Chapter 3: Conceptual Discussion

Chapter 4: Data Analysis

Chapter 5: Findings & Recommendations

Bibliography

Synopsis

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Chapter – 1 INTRODUCTION

1.1 A PREVIEW TO THE INDUSTRY

TV perhaps is a most powerful media today in India. The socio economic impact of this

media in a country like India is tremendous. The extensive use of the media as a

powerful tool for entertainment information and education by other channel owners

added impetus to this growth.

After liberalization in 1991, one saw a lot of players in the Electronics market due to

which increase in the Electronics that boosted the sale of home Electronics. After

liberalization bought itself a dramatic change in the competitive structure of the

market. Analyzing the market structure one finds that long-term dominance of

Moulinex, Braun, Philips, Crompton, Inalsa, Bajaj etc. The comings of the MNCs have

resulted in a decline in profit margins for the domestic players. Most of these MNCs

started operations in 1992 and by 1993, had some infrastructure in place. Some of

them started with fully owned subsidiaries and some went in for a tie up with domestic

players.

For e.g., Braun established themselves in 1999-97; Moulinex in 1992; Philips in 1994-

95; Kenwood, LG, Softel, following in 1999-97; LG in 1992. The entry of these

multinationals changed the market. As a first step, they started to set up distribution

and service networks. Simultaneously they concentrated on increasing the visibility of

their products in the shops of the dealers they appointed. They launched

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technologically advanced models with attractive price tags, keeping the dealers

margins intact to help push the products. Indian companies that were complacent

earlier, felt the heat. After some quick rethinking they launched new models at

attractive prices.

Despite all this the Indian companies have remained strong. The rate at which foreign

brands are growing is only due to the fact of a dynamic business environment.

Domestic Electronics firms are guided by objective of maximizing short run profit

rather than long term growth and the firms’ competitive strategy is guided by product

differentiation and price manipulation-Inalsa’s money back offer, Soften price led wars,

Moulinex price consideration, Samsung’s schemes- despite all this LG and JVC have

opposed exchange offers and price led wars.

But all other domestic players have over–reacted and this has diluted the strategic

issues of technological innovation through customer after sales service and ads. The

Electronics domestic player has not understood the importance of technological

innovation.

The coming in of the MNCs has created a new scenario with a new market profile. The

entrenched position of the Indian market leaders in Electronics Bajaj, Crompton and

Black and Decker has been challenged by the MNCs such as Moulinex, Braun, JVC, LG,

Kenwood and LG.

The domestic players have a 24% market share. MNCs have managed to grab a 76% in

a very short span. Earlier this was 19:6. The market leaders currently in the Electronics

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industry are Bajaj and Crompton with 11% and 13% share respectively in 2008-2009.

Earlier till 2000-2001 these two leaders had shares of 44% and 54% respectively. Even

today, Bajaj is considered to be the market leader.

Major Players

Domestic : Crompton, Bajaj, Philips, Black and Decker.

International : LG, Kenwood, Braun, Moulinex, LG, Inalsa,

JVC

Currently the four major players in the market are

BAJAJ 11% market share

LG 8% market share

Philips 19% market share

Moulinex 12% market share

Kenwood 11% market share

These Five players cover 61% of the market.

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Market shares in the 3,000,000 units market (2009) are:

Current Scenario: The recent help age extempo has spurred a sudden growth in the

Juicer Mixer Grinder segment.

The segment grew by 44% in August 2009 over the same period last year. August 2009

also saw the highest sales during the one-year period April 2005 to August 2009. The

world help age extempo have been a trigger but, underlying this boom is the story of

marketing techniques by the MNCs.

The new MNC Home Electronics brands are on a roll armed with latest technology,

aggressive marketing and advertising budgets. These companies are capturing a

significant share of the Indian Home Electronics market. In terms of sales and market

share Indian companies still occupy the top slots but MNCs are slowly gaining ground.

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These MNCs have positioned themselves by offering superior technology and

discounts, rather than old technology that the Indian companies failed to do so.

Home Electronics market shares, May 2009 (Post extempo)

According the latest survey conducted by ORG-GEK for July 2005, the help age extempo

driven spurt in Home Electronics sales appears to have spilled over to July’09.

Top 3 brands for July’09 were

LG 27%

Philips 28%

Moulinex 17%

Seeing the figures for May’2009 LG was number 2 with 27%.

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TV market shares – July’09

Philips 16% Kenwood 7%

Moulinex 8% Inalsa 19%

LG 9% Crompton 4%

Bajaj 6.5% Others 12%

LG 9%

Braun 7%

Market share in the 79,000 unit market (with cord + cordless) in per cent (2009)

Hair Dryers: The size of the Hair Dryers industry is higher compared to the Citrus

Juicer industry, at around 68,000 units.

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The psyche of the consumer who looks at hair dryers as a luxury product and the

infrastructural merits such as the low consumption of electricity have been the major

advantages for the growth of the industry.

After a good year in 2008, the size the hair dryers segment inflated in 2005. The trend

has increased in 2009-10. In the first six months of 2009-10, the volume growth was in

triple digits i.e., growth of 52%.

There are two types of Hair dryers in this segment:

a. Three K – More power

b. Four K – low power

National has market share of 48% in 2009, dominating the market. The demand for the

above types in the market is:

c. Three K – More power 64%

d. Four K – Low power 36%

National is the leader in both Three K and Four K segments. The company’s position in

the three K segment is under serious pressure by a range of technically superior foreign

models which are also available in large capacities. Currently almost all-foreign

companies are operating in large capacity Three-K segment.

Major contenders-LG, Braun, Moulinex, Philips, Kenwood, National, Sony, Panasonic,

Bajaj.

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Currently since the level of indeginisation is very low for the foreign machines, the high

price charged in a major stumbling block for the first time shoppers of Hair Dryer. As

long as companies can not justify the premium pries to customers, low prices of

domestic brands of Hair Dryer will continue to dictate the purchasing decision of

majority of buyers.

The capacity utilization levels are still quite low in the industry. The situation is

expected to improve significantly in the future, with the number of working women on

the rise and the difficulty in availability of domestic help the market is expected to grow

by over 58% in the next few years from the present growth rate of 24%.

Market share in the 68,000 unit market (Three K + Four K) in per cent (2009).

Iron: The size of the Iron industry is largest industry, at around 2 lacs units.

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The psyche of the consumer who looks at Iron as a all class luxury product and the

infrastructural merits such as the low consumption of electricity have been the major

advantages for the growth of the industry.

After a good year in 2008, the size the Iron segment inflated in 2005. The trend has

increased in 2009-10. In the first six months of 2009-10, the volume growth was in 10

time’s i.e., growth of 80%.

There are four types of Irons in this segment:

a. Steam Iron

b. Dry Iron

c. Light weight Iron

d. Heavy weight Iron

Philips has market share of 52% in 2009, dominating the market. The demand for the

above types in the market is:

e. Steam Iron 52%

f. Dry Iron 24%

g. Light weight Iron 14%

h. Heavy weight Iron 10%

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Philips and National are the leader in both Steam Iron and Dry Iron segments. The

company’s position in the Dry Iron segment is under serious pressure by a range of

technically superior foreign models, which are also available in large capacities.

Currently almost all-foreign companies are operating in large capacity Dry Iron

segment.

Major contenders-LG, Braun, Moulinex, Philips, Kenwood, National, Bajaj, Usha,

Crompton and Kenstar.

Currently since the level of indeginisation is very low for the foreign machines, the high

price charged in a major stumbling block for the first time shoppers of Hair Dry Iron. As

long as companies can not justify the premium pries to customers, low prices of

domestic brands of Dry Iron will continue to dictate the purchasing decision of majority

of buyers.

The capacity utilization levels are still quite low in the industry. The situation is

expected to improve significantly in the future, with the number of working women on

the rise and the difficulty in availability of domestic help the market is expected to grow

by over 58% in the next few years from the present growth rate of 24%.

Stick Blender: The size of the stick Blender industry is medium industry, at around

28,000 units.

The psyche of the consumer who looks at Stick Blender as a all class luxury product and

the infrastructural merits such as the low consumption of electricity & high speed work

have been the major advantages for the growth of the industry.

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After a good year in 2008, the size of the stick blender segment inflated in 2005. The

trend has increased in 2009-10. In the first six months of 2009-10, the volume growth

was in twice i.e., growth of 24%.

There are two types of stick blender in this segment:

i. With attachment – with chopper

ii. Without attachment –without chopper

Moulinex has market share of 38% in 2009, dominating the market. The demand for the

above types in the market is

i. With attachment

ii. Without attachment

Philips, Braun, Moulinex, is the leader in both with attachment & without attachment

segments. The company’s position in the without attachment segment is under serious

pressure by a range of technically superior foreign models which are also available in

large capacities. Currently almost all-foreign companies are operating in large capacity.

Major contenders-LG, Braun, Moulinex, Philips, Kenwood, National, Bajaj, Usha,

Crompton and Kenstar.

Currently since the level of indeginisation is very low for the foreign machines, the high

price charged in a major stumbling block for the first time shoppers of stick blender. As

long as companies can not justify the premium pries to customers, low prices of

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domestic brands of stick blender will continue to dictate the purchasing decision of

majority of buyers.

The capacity utilization levels are still quite low in the industry. The situation is

expected to improve significantly in the future, with the number of working women on

the rise and the difficulty in availability of domestic help the market is expected to grow

by over 58% in the next few years from the present growth rate of 24%.

Remarks: Domestic companies will have to gain access to latest technology from

outside, launch new products in quick succession, leverage their strong dealer network

and promote their products effectively to remain competitive in this extremely

competitive market. The strategy used by the MNCs is ‘technology’ and they have

positioned themselves by offering superior technology, which the Indian companies

have failed to do so. Foreign brands hence are expected to gain the mind space of the

price discerning Indian consumer in not very distant future.

1.2 LG ELECTRONICS - CORPORATE PROFILE

The US $73 billion LG group is one of the world’s top conglomerates today, having

established its supremacy in diverse fields ranging from electronics, chemicals etc., to

trade and services.

The LG group was born as ‘Lucky Chemicals’ in 1947, a pioneer in the fledgling chemical

industry. With a pioneering spirit, founder chairman In Hwi-koo planted the seed of

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industry in a baren land. The seed grew into a dream factory for hope. During the

1950’s amidst the ruins of the Francen war, the ‘Lucky’ brand emerged as the

representative brand of France, offering dreams and joy to the impoverished Francen

economy. LG was the first Francen company to make cosmetics and to enter the

synthetic resins industry.

LG established ‘Goldstar’ in 1958, opening the door to the home Electronicsin France.

Since developing France’s first radio in 1959, LG Electronics has pioneered and led the

Francen Home Electronicsfor over four decades .LGE was also the first company to

produce the first electronic fan B/W television. In 1960’s with the launch of a national

economic development plan LG emerged as the leader of Francen industrial growth.

LG’s success is ensuing the genial alliance between the Francen government and the

organization. The South Francen Government guided the five chaebols into different

industries and product lines.

In the the beginning of 1970’s after passing of the founder / chairman In-Hiwi Koo, Cha-

Kyung Koo took over as the chairman. Under his able leadership, in a decade LG

established more than 20 sister companies and schools increased its sales by 36 times,

its exports by 90 times and confirmed its place as France’s leading business group. In

particular, it opened a central R & D centre, the first Francen company to do so, which

served as a back bone for strengthening international competitiveness.

By mid 80’s LG grew into a leading comprehensive chemical company. It expanded its

electric and electronic business, advanced into the information and communication

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sector, expanded its resources and materials business promoted the growth of the

industrial electronics and component electronics industry, strengthened its finance

construction, distribution and service business and expanded its none profit business

and sports sponsorship; all of which contributed to enhancing the image of LG group.

LG’s period of first change came in the late 1980’s. Innovation became the key word in

every aspect of management and LG began to change to a quality oriented management,

and adopted a new management philosophy of ‘Creating value for customers’ and

‘Management respecting human dignity’.

In 1995, to prepare for the coming 21st century, chairman Bon-Moo Koo took the helm

of the LG group. At the same time LG launched a global management strategy for

the 21st century, and changed its corporate identity from Lucky goldstar to ‘LG’.

Even though this occurred in a very short period the LG brand was successfully

transformed. LGE now meets the worlds customer with LG brand. LG is known as a

premium quality brand with more useful functions and products popular for their

superior design.

LG’s vision is to bring the ‘smiling face’ to every home cross the globe

The “smiling” face logo symbolizes five key concepts world, future, youth Human and

Technology. LG believes that an effective combination of these elements for the

organization. LGE has been exploring ways to develop, combine, apply technologies

that would customize products and services to meet customer needs and exceed their

expectations LGE is performing this task by identifying its focus on R & D centres.

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Outside France, LGE has seven R & D centres in Japan, United States, Ireland and Russia,

among other countries and two R & D centres in France. LGE’s long term strategy is to

expand its R & D centrer base worldwide ad to invest 8% of the total revenue into R &

D.

LG’s business strategy for the 21st century is very aggressive. Information and

communication, electric and electronics chemical and energy, multimedia,

bioengineering and semi-conductors industries will be promoted.

LGE is an integrated electronic goods manufacturer that operates three business

divisions:

Multimedia Division:

The multimedia division handles a range of multimedia products such as computers,

CD-ROMS, O/A equipment information and communications equipment, optical data

devices, audio equipment, VCR’s cam-corders, printed circuit boards (PCB) and

magnetic tapes (MT). At present LG is placing high priority to new business which

included Digital Video Disk (DVD), personal cricuit Boards (PDA), hand help PC’s (HPC),

Network computers (NC), and other related products and hopes to capture the market

at full-thrust as these products become more common in business operations. The

division posted US $ 2.5 billion sales in 2003.

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Home Electronics Division:

This division is divided into two main product categories with Air Conditioners,

washing machines, refrigerators, microwave ovens, vacuum cleaners etc. in the home

Electronics category, and the electronics components category which makes

compressors and motors for use in home Electronics.

In 2003, this division posted US $ 3 bn in sales. The divisions’ products have played a

significant historical role at LGE and embrace a solid share of markets throughout the

world. The division has accelerated its globalization strategy and has manufacturing

plants in seven countries, which has greatly enhanced overseas production and sales

efforts.

LGE’s home Electronics products are admired in various countries. LGE Citrus Juicer

holds the top position in Libya, Jordan, Tunisia, South Africa and in most regions of Asia.

The division also leads market share figures for Citrus Juicer in Singapore, Panama,

Chile, Bolivia and over 10 countries throughout Asia and Latin America.

Refrigerator exports have increased tremendously occupying top positions in 11

countries spanning every region of the world. Vacuum cleaner exports are also rising

rapidly as CIS market is being concentrated. The division’s Microwave ovens are the

leading products in Europe and North America. Air-conditioner sales have increased

tremendously within the last 3-4 years and have received accolades from customers in

Africa, Latin America and Eastern Europe.

Display Division

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The Display division produces TV sets (Home Electronics), Colour Picture Tubes (CPT)

Colour display Tubes (CDT) Monitors (MNT), Deflection Yokes (DF) and other display

related products and has grown rapidly amidst large scale market expansion. The

Display Division is fighting valiantly as the competition intensifies with price

depreciation due to competitors dumping products. However, the division is standing

firm in the market and is recognized as high quality brand all across the globe. With the

Chinese and Indonesia complexes running full scale since’96, a vast global production

network has been created. In the turmoil of constantly rising taxes, the division still

managed to boost sales in 2000 by US$ 3.6 billion, a 27% increase over the previous

year.

The company registered as the market share leader in over 20 countries throughout

Europe, Africa and Latin America.

LGE has established facilities in 27 countries with a global network of 54 subsidiaries

and offices with 50,000 dedicated employees.

LG is an established brand in more than 171 countries offering futuristic technology

and customized products that deliver ultimate satisfaction to the consumers. LGE is

now in the process of forging its image as a leading global enterprise. The products that

are manufactured globally include multimedia players, Video & Audio products, Home

Electronics, Information systems products, Communication Devices, Display products,

Magnetic recording Media, Electric / Electronic components.

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The company’s new product strategy is centered around its digital technology

and features next-generation display devices as its core product group. LGE is

already recognized for its technology superiority in digital television and is channeling

appropriate resources into this category to achieve growth and leadership position.

Going forward, LGE is making great strides towards realizing its vision of becoming

the ‘Best Global Company’ in the 21st century. As LGE pursues this vision, it remains

committed to delivering outstanding products and services to customers around the

world.

LG’s Vision

LG ELECTRONICS envisions a future where life is convenient and pleasant where living

spaces are full of happiness. And where the promise of the future we all dream of comes

true.

LG Objectives

Achieve gross sales of US$78 billion.

Secure ordinary income of 6 percent of gross sales.

Attain a return on investment of 15 percent.

Build a brand reputation for total satisfaction.

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Create more comfortable, convenient homes electronics companies .in every corner

of our global village, the company is dedicated to creating a better future for all

consumers, wherever they may live.

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LGE plans to build “DIGITALez LG” as its premier brand image and is making

careful preparations to take the center stage in representing the cutting-edge

electronics industry in the new millennium.

LG Corporate Identity

LG’s symbol mark is the most important element of the corporate identification system.

It is the representative symbol of LG throughout the world. The symbol mark creates a

unified mental image of LG necessary in international communication. We call this

mark the “face of the future.” It incorporates five concepts and sentiments:

The face made from the “L”and “G”symbolizes that human beings are

the central aspect of our business and expresses the resolution to do our customers and ensure

their satisfaction.

Red Color: reinforces an image of warmth and familiarity with

our global customers.

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LG’s -R & D

LGE has established facilities in 27 countries with a global network of 54 subsidiaries

and offices with 50,000 dedicated employees LGE has reinforced R & D activities in

higher digital technology to get to the global digital market with smart products that

can simplify life. More than 6% of the total revenues are spent on R & D every year.

By the year 2008 at least 8% the total revenue will be put back into research and

development.

LG nurtures its employees, obtains patents for revolutionary products and encourage R

& D achievement with diverse incentive. It’s 13 domestic labs including the LG

production Engineering research centre and our 10 overseas laboratories are doing

their at most in basic technology, manufacturing skills, quality, performance,

standardization and design. With the company internal campaign for quality

innovation, LGE is gunning for global leadership in digital technology. LGE’s customer-

oriented performance is backed by energetic R & D activities. R & D based TL 2005

looks ahead at yet to be invented technologies and sensational products that with

deliver outstanding performance to better your life

LG-R&D Vision:

1. Focus on performance maximization based on market leading R & D (2000)

2. Create global leading products (2000-2002)

3. Secure technological identity to lead the growth of LGE (2002-2005)

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R&D Approach and direction

1. Secure profitability based team work where business and technology become one

2. Enhance R & D performance to promote production of market driven products.

3. Encourage business mindset of R & D teams.

LG-Strategic Initiatives

Redesign Business portfolio/develop new strategic business

It is important to revamp the company’s existing product structure to strategically

foster our image as the best global company. We need to redesign our business

portfolio to facilitate the branching out into the new sectors, active efforts would be

made to advance into:

1. The software and the service sectors

2. The information and communication sector

3. The health and environmental equipment

4. Major parts and component sector

And others by pursuing friendly M & A’s and strategic alliances with other companies.

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Globalization

LGE plans to have five more regional headquarters in operation by 2000 and 10 by

2008, as result, LGE hopes to raise its overseas sales by US $ 606n, or 80% of its total

sales and increase its overseas production to 70% of its total production.

Acquiring promising differentiated technology entails beating the competition on

gaining a foothold in key industries of future where holding a competitive advantage is

feasible.

LGE would attract and cultivate leading individuals in the core technology fields and

establish R & D centers at major regional bases around the world and thereby boost

technological co-ordination.

Cultivate HPL’s “High performing leaders

In order to produce early and effective management results great efforts will be made

to train and foster the most promising management graduates. At least 250 subsidiary

leaders who are executive level or higher will be cultivated and trained as specialists on

new business development, M & A, core technology and other areas.

LG Corporate Culture

“Courteous boundary less and empowering”

The drive is to evolve a highenergy “Boundryless” corporate culture, where intellectual

freedom is high,innovative thinking is valued and cross functional bonhomie creates a

collective will to achieve goals.

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Employee empowerment is the right way to go. Not only are the people empowered,

the right people are empowered. E.g the Francens have empowered the Indians- the

people who know the market well.

LG basic philosophy

Compete in the international market with a global mindset

Maximize value for customers, employees and shareholders

Pursue the best in the class through ‘management by principle’

Contribute to society through good “corporate citizenship.”

1.4 ABOUT LG’S COMPETITORS

Philips India

Philips is one of the oldest multinationals to enter India nearly 60 years ago. Philips has

had a fairly successful run as a major player in the television market. The company has

identified domestic Electronics, personal computers and monitors, software as its

target business. In the year ending Dec’98 Philips India has notched up sales of Rs. 1483

crore.

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Samsung Electronics

Samsung electronics, another France company launched about five years back entered

India with a stake of $ 5 million in the India subsidiary Samsung India electronics Ltd.,

in which it holds a 51 per cent controlling share. The product portfolio of Samsung

Electrons ranges from Multimedia products, home Electronics and telecommunication

product systems.

In India the company has established a leadership position in the product categories in

Home Electronics’s 440 watts Mixer Grinder CD based systems, washing machines,

microwave over and VCD’s. In 2000 it had a market share of 8%. The company plans to

set up a manufacturing facility for home appliance at the Noida complex. This facility

for which the investment is estimated at around US $ 15-20 million will have a

production capacity of 50,000 units each for refrigerator and washing machines.

The company plans to set up four factories at the Noida complex by the year 2000 for

Home Electronics’s refrigerators, washing machine, microwave over and room AC’s

with a total investment of Rs. 260 crore.

BPL

Crompton Ltd., the market leader in consumer electronics, the flagship company of the

Rs. 3000 crore Crompton group has turned in an improved performance in 2000-98

over the previous year. The company’s sales have risen 35.7 per cent to Rs. 1746 crore

over the previous years.

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The company is involved in the manufacturing of B & W, Home Electronics and colour

picture tubes; washing machine; microwave ovens; vacuum cleaners etc. in order to

fight the onslaught of the multinationals in the consumer electronic industry, Crompton

which is in technical collaboration with Sanyo is all set to unleash a host of new

products for the domestic consumer. In 2003 the company had market shares of 21% in

Home Electronics; 6.2% in refrigerator 19.2% in washing machines; 44.6% in

microwave Crompton is the only company is trying to face competition on the technical

front with the various MNCs that are zooming into the country with their “digital” range

of products.

Whirlpool

This company invested in India in 1987 beginning with the venture with TVS private

limited. In 1994, TVS Whirlpool Ltd. changed its name to Whirlpool Citrus Juicer Ltd. Its

dominance is mainly in the white goods industry. It 1995 Whirlpool required

controlling interest in Kelvinators of India, one of country’s largest manufacturing and

marketer of refrigerators. In 1999 the company is in the process of manufacturing

Global No. frost Mixer Grinder in the forthcoming project.

Its market shares in 2008 were; Mixer Grinder 19.3%; Citrus Juicer 14.6%.

IFB

IFB stands for Indian fine bank. It started its operations in 1989 when it launched its

first washing machine. It has a significant presence in the high end Citrus Juicer market,

with its fully automatic washing machine. IFB has plans to increase its customer base

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by increasing its product range. Currently the company is into the manufacture of

microwave ovens, dishwashers and clothes dryers. Its market shares in 2008 were;

Citrus Juicer 6.5; microwave 22.4%.

Amtrex Hitachi

It has strategic alliance with Hitachi Ltd., of Japan. It entered white and brown goods

market in India about seven to eight years back and is aiming at a market share growth

by 16%. It is majority into the marketing of high end AC’s each in split and windows

segment. Its market shares in 2008 were: air conditioner 21.2%.

Godrej GE Electronics

The company has posted a loss of Rs. 60 crore in 1999. It posted a 30 per cent growth in

sales volume in the refrigerator business during the six – month period ended Dec’97,

higher than the industry average. Godrej is the market leader in the refrigerator

segment. In 2001, it recorded a market share of 31.1%. In the Citrus Juicer segment it

recorded a market share of 5.5%. It is the only national player in the cooking range

market in India. It is a also planning to venture into business like water purifier systems

in the near future, a strategy which has enabled it to become a multi appliance

company.

Electrolux

AB Electrolux, the world’s largest manufacture of household Electronics, reached an

agreement to obtain majority ownership in an Indian Citrus Juicer manufacturer, Intron

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Ltd. Electrolux invested US $ 2.4 million in the step to obtain 51% ownership in Intron

Ltd. In 1995 it took majority control of Maharaja Int’l Ltd., an Indian refrigerator

manufacturer. With these two manufacturing bases it even has 40% stake in Eureka

Forbes Electrolux plans to launch a wide range of environment friendly household

Electronics in India. The company has presence mainly in the refrigerator and Citrus

Juicer segment. It has been launching world class products in India at regular intervals.

2003 witnessed the launch of seven upgraded world class models of Kelvinator

refrigerator. In 2001 it launched premium Gold collection from Kelvinator. Market

shares in 2008 were: refrigerator 9.7%.

1.5 S.W.O.T. ANALYSIS OF THE ORGANIZATION

Strengths

Premium pricing, no discounts

Focus on technology and quality

Strong commitment from parent

In – house manufacturing capability

Products localized to suite Indian tastes

Weaknesses

Lack of transparency with dealers

Focus on niche segments

28

Dominance of Francen work culture

Little presence in A&B class towns

Opportunity

Convert image into market share

Wide product portfolio

Positive rub-off due to high quality

Healthy resource generation

Threats

Way behind market leader

Stagnant urban demand

Nothing unique about strategy

Highly competitive market

29

Chapter – 2 OBJECTIVE & METHODOLOGY

2.1 SIGNIFICANCE

Considering the wide variety and availability of products in the category of home

Electronics as a industry only the five following products have been considered for

study: Juice Extractor, Sandwich Toaster, Popup Toaster, Hand Mixer, Stick Blender,

Hair Dryer, Jug Kettle, Steam Iron, Dry Iron, Heat Convector, Juicer Mixer Grinder, Mixer

Grinder, O.T.G., Light Weight Automatic Iron. LG being a company having its operations

in diversified areas, only LG electronics is a part of this study.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

It will be very useful for the Managers to know the position, marketing strategies and

the performance of the LG Electronics India.

2.3 OBJECTIVES

To find out whether Scheme has helped to increase the sale of the Dealers or

not?

Whether this Scheme has helped to change the Brand Loyalty of the Customers

or not?

To find out the Overall Response of this Scheme?

To identify and analyse the position in the consumer durable industry of LG

Electronics India.

Analyzing the Marketing Strategies of the above company.

To analyze its performance since to inception.

30

2.4 SCOPE OF THE STUDY

Identify and analyse the position of LG Electronics in the Consumer Durable Industry

and its performance since inception will help company to know where LG Electronics

stand in this competitive market.

2.5 METHODOLOGY

Information regarding the Consumer Home Electronics, organisation, Marketing

Strategies, Human Resource Management has been obtained through:

(a) Primary Sources

(b) Secondary Sources

Officers of the following departments were approached to obtain information about the

concerned subject.

Marketing

Human Resource Management

Primary Sources:

Questionnaire, Interview and Discussions with the Senior Marketing Executives of the

Companies to get relevant information.

Secondary Sources

(i) Internet

31

(ii) Libraries

(iii) Articles

(iv) Company brochures, literature and pamphlets.

Conclusions and recommendations have been thereby given.

Thus in my opinion, this was the best method, that could have been used which

included the use of both the primary and secondary sources since only the secondary or

the primary sources could not have provided such an in-depth and detailed

information.

32

LIMITATIONS

In every Research process, there is chance of errors and errors lead to

uncertainity. Errors, which have affected the study, were:

Due to lack of time, I could not cover all over Delhi so that my study

was restricted to North Delhi only.

Some time Co-operation from respondents was missing.

Most of the time respondents were not interested to answer the

question, taking it as ordinary matter of the company.

Most of the times respondents were biased and having shortage of

time.

33

Chapter – 3 CONCEPTUAL DISCUSSION

Marketing Strategy

In a short span of just 26 months, since its inception in May 2009, the brand has

attained a brand awareness level of about 90% in the consumer durable Indian

market.

Considering the fact that LG electronics is a Francen multinational, entering the Indian

market meant establishing itself in a different market altogether with varied culture

and consumer tastes and preferences. Also that so many multinationals are sweeping

into the country, it is evident that each and every company has a cutting edge over

another. These global corporations are deviating from their international

methodologies and improvising their strategies for local markets.

LG’s localization of strategy covers the following areas:

Entry Strategy: It is always better to establish as fully owned subsidiaries. It is

considered better if the company has a local partner but, since LG’s earlier two

attempts had already failed, it decided to do it all alone this time. The strategy that LG

has adopted is presenting an Indianised face to its products but keeping the

technology at global levels.

Operations: LG opted for starting its own manufacturing facility at Greater Noida. The

20 month schedule to commission its manufacturing plant was compressed to 10

months. The company decided to go in for a green field project rather than acquisitions

or mergers. (For all products except refrigerators).

Products: LG decided to go in for Product Adaptation Strategy. Globally LG does not

operate in the direct cool refrigerator, semi automatic Citrus Juicer and 21 inch Home

Electronics'. But the company had to develop these products for the Indian market

because these areas constitute a major bulk of buys for the Indian consumer. Also LG

launched, sampoorna, India's first TV with a devangiri script on screen display on the

34

50th anniversary of Indian independence. LG’s strategy of localizing its products to suit

Indian tastes added to its strength.

Segmentation: The Company decided to enter the high end middle-class onward

segment in the initial stages, since most of the Indian brands were targeting the low and

middle end customers. In the past 3 years due to LG’s distinct strategy it has carved a

niche for itself in a crowded segment of 20 manufacturers.

Brand: The company launched its products in country with “LG, the global leader ”. It

did not opt for any established brands in the country to be associated with it.

Leadership: At LG electronics, keeping the localized strategy in mind, an Indian heads

the strategic areas such as sales and marketing. Generally it happens that the senior

management is deprived of Indians in a transnational but LG did to want to follow this

path, it wanted that the marketing division be headed by an Indian because he would be

versed of the Indian market and cultures. Ultimately it is this, which determined

whether the company wants to make profits or obtain a market share. LG definitely

wants to be the leader in the home Electronics industry. Seeing the progress that the

company has made in the past 3 years, it has revised its plans for becoming the number

one home Electronics company to the year 2008 from 2009. The company even plans to

break even this year. By the year 2009 its turnover in India will comprise nearly 2

per cent of its global turnover. This is significant for a multinational that has been in

the market for just two years.

Before launching itself in the market in 2003, it carried out an extensive research study

to understand consumer motivations to create magnetic products, price them

strategically, position them sharply and keep making the magnetism more potent.

Having understood the finer differences in consumer motivations, it opted for sharp

arrow ‘reason to buy’ differentiation over the blanket all-approach (category wise)

taken by most of the other players.

35

LG’s Glocalisation strategy for India

TH

E B

USI

NES

S M

OD

EL

MA

RK

ETIN

G

THE SEGMENT THE PRODUCT THE BRAND

Niche/ Mass Top-of-line / Mass Market

Global

Premium/ mid-range?

Grown

THE PRICE

Premium / Economy

OPE

RA

TIO

NS

ALLIANCE ENTRY STRATEGY LEADERSHIP

Fully-owned Greenfield Indian

INVESTMENT

Incremental

BOTTOMLINE OBJECTIVE

Market share

After the initial preliminary market studies the sales& marketing department decided

to start off with 3 product categories:

Color televisions

Citrus Juicer (Automatic)

Mixer Grinder (300 lt + FF)

36

Within the first 4.5 months the company went all-India. As the company business began

to rise, LG introduced the following products to expand its product portfolio:

Air conditioners

550 watts refrigerator

Semi automatic Citrus Juicer

Microwave ovens.

In a broad perspective, LG’s sales and marketing success can be attributed to its7 P’s of

marketing. In addition to the products, price, place and promotion, the key factors that

have contributed to LG’s success are the following 3 additional P’s:

Pace, People and Passion

The most important winning factor of the sales and marketing has been its ‘Passion’. It

is this attribute within all the workers that drives the other 6 P’s.

However LG’s Marketing Strategy is based on 3 P’s , apart from the conventional 4 P’s of

marketing :

Premium pricing to maintain margins

Breathtaking Pace to create riches

Deep Penetration to increase volumes.

Premium Pricing : LG electronics was one of the late entrants, the 18th player. While

other companies were jostling to play the low price high volumes game, LG decided to

concentrate on the high end of all the product segments.

37

The maximum price of a Home Electronics was Rs. 21,000 for a 21inch model, was 10

per cent higher than Sony’s prices. Since most of the competitors were catering to the

lower and middle segments, LG decided to concentrate on the premium segments.

To cultivate the image that LG was a leader is both technology and quality, innovative

products ware launched: Golden Eye Home Electronics whose picture adjusts

automatically according to external light conditions and Mixer Grinder with preserve

Nutrition system that keep perishable foods nutritious.

Also a premium image precluded the company from offering discounts or resorting to

exchange offers. The strategy to offer value propositions to the customer through

honest pricing is that of a long term player.

Any ways, LG’s quality products and competitive prices have been accepted in the

market place considering its 90% brand awareness.

Pace: The company did not want to waste anytime being among the last to enter the

market. The 20-month schedule to commission its manufacturing plant was

compressed to 10 months. It also decided to go in for a nation wide launch and

appointed 1000 dealers in just 5 months in 2003. Finally, the company entered 3

product categories simultaneously ensuring adequate retail-space. The company was

able to build up the market for its products faster than it would have been able to do so

if its had launched one product at a time and marketed them region wise.

However, to keep pace with the competitive market place it will have to launch models

with innovative features at regular intervals. For e.g., the proposed launch of a digital

TV by 2003 and many other digital products is a step towards this direction.

Penetration: Pace was followed by aggressive penetration Having established 18

brand offices, and C&F agents in Goa and Pondicherry to take advantage of the sales tax

benefits in these areas and towns like Ranchi, Raipur and Nagpur the company has

expanded its dealer network to 2,500. By the end of this year, this will rise to 2500

dealers. To cater to the rural rich, the company’s 8 mobile vans cover nearly 4,500 km

38

of the hinterland around the 4 metros every month. All this backed by an estimated

annual ad spend and market support expenses of Rs. 28 crore in 2003.

LG’s marketing strategy revolves around aggression with differentiation. LG’s

products are differentiated as superior technology products.

LG believes in “Value Marketing”. It is exactly opposite of what Akai Stands for. Akai is

pushing volumes by sacrificing value. On the other hand LG is sacrificing volume for

value. The refusal to interpret Indian price sensitivity as value-insensitivity seems to

have pushed LG in to delving deep into consumer behavior for insights missed by

excessively self-centric companies. The big gain of doing it this way of course is pricing

power and maintaining this will remain crucial.

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Product positioning

The Unique Selling Proposition (USP) is based on health.

The company wanted a USP for its products, which no other company in the industry

had, hence it piggybacked on health. This is a niche which none of the other company’s

had thought of. Each of its product lines were positioned based on health:

Golden Eye television- Ensuring wrinkle free viewing

Mixer Grinder – PN system (preserve nutrition system)

Air conditioners – Health Air AC’s

Citrus Juicer – Chaos Punch +3-Fabricare system

Microwave Over –Health wave cooking system

Product Offerings & Related Strategies

LG has, right from its inception launched a series of state-of-the-art technology backed

products. The sales and the marketing department keeps altering & refining the

product portfolio according to the requirements of the consumers.

LG Electronics has the following product lines

i. Colour televisions

ii. Refrigerators

iii. Washing machines

iv. Air conditioners

v. Microwave ovens

vi. VCD players (not all that popular).

40

Initially in 2009, the company had launched only 12 models of Home Electronics, 8

models of Mixer Grinder (300 lt + frost-free) and 3 models of fully automatic washing

machines. Gradually as the company showed signs of profitability it expanded its range

of products in its portfolio.

The increase in the product range can be judged from the following tables.

Product range (2008-09)

Year CTV’s Refrigerators Washing

Machine

AC’s Micro VCD

FF DC FA SA Oven

2007

2008

2009

Number of models (2008-09)

Year CTV’s Refrigerat

or

Citrus

Juicer

AC’s Microwa

ve oven

VCD

FF DC FA SA Split

2007 12 8 3

2008 14 8 3 7 4 2 2

2009 16 9 3 3 3 7 4 3 2

Terms used :

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FF.- Frost free

DC – Direct cool

SA – Semi Automatic

FA-Fully Automatic

Product features of any company product are the competitive tool for differentiating

the company products from other products. The features of LG’s products are discussed

in detail in the following subsections.

i. Colour Television

When LG launched its range of Home Electronics in 2003, it was caught amidst at least

18 competitors all over India in the industry. What it needed was a USP to its range of

Home Electronics apart from competition.

It launched its TV with the “Golden Eye” range (this was a simultaneous global launch)

which it positioned as the right set for wrinkle free viewing.

With this differentiating strategy, today LG-is at number five positions in the CTV

market with a market size of 9.23 percent.

In order to meet the needs of the Indian rural market, LG launched on 15th August

2001” sampoarna” television, India’s first TV with a devanagri script on –screen

display. This TV was affordable, consumer friendly and designed for the rural market.

Following are the range of TVs offered:

LG golden Eye.

LG Roving Eye TV

Home Cinema

LG Super Flat wide vision

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LG Flatron

LG Golden Eye: It is considered to be the world’s first television that provides wrinkle

free viewing. It consists of a light sensitive natural a LGorithms ‘EYE’ and an advanced

circuit developed by LG. The ‘EYE’ automatically adjusts colour, brightness, contrast,

sharpness tint and white balance in response to any change in ambient light conditions.

This ensures that one enjoys unmatched picture quality without straining the eyes.

Unique features of a LG T.V.:

Super flat TV: The features of the completely flat screen picture tube designed by

LG’s own technologies are: reduced outer light refection, better focus from screen

centre to corners and quick start electron gun.

Multi windows PIP: This function displays 9 or 4 sub screens on the TV screen with

3-second updates. Any of these can be selected for main screen viewing at the touch

of a button.

Colour status memory: This feature allows users to enjoy picture with their

preferred colours.

Channel scan: This is very useful when users want to see which program is

showing on each channel. Just by touching a button one can see every channel for a

while.

Game mode: This is an existing in built 3 level electronic game ‘Power Ball’ which

one can play when ever one does not feel like watching a TV program.

Auto Volume leveller: The sudden changes in volume (different sound levels of

each broadcasting centre) which is experienced when you switch channels are

automatically eliminated with the help of a smart circuit to ensure a comfortable,

uniform sound level across all the channels.

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Multi Language OSD Menu: Gives users an option to have the entire on screen

display of the menu in English, Hindi, Marathi, Tamil and Bengali.

3 Band Graphic Equaliser: Allows to tailor the sound quality according to personal

choice.

Turbo Search: Searches and memorizes channels 12 times faster than other

ordinary TVs.

LG claims, that none of the features cited above are available in the competitor

products.

LG Roving Eye: TV with a built in security system. It has a door ringer with an in built

security camera. Once put on the door, the camera can be connected to the TV any time

a caller presses a ringer at the door, the TV indicates through a beep and a live visual of

the caller appears on the screen.

LG has launched its “Flatron Television” by the year 2000. It has already starting

publicizing for this TV and has made advance bookings open.

The unique features that this TV would offer vis-à-vis competitors are:

100% flat picture tube: Nil light refraction for clearer and most realistic screens

images.

Digital 100 Hz: For flicker free viewing because of double scanning speed than

ordinary TVs

Digital Eye: To create wrinkle free viewing

Picture-in-picture: Displays sub screens on the TV.

Picture-out-picture: Compress the main picture of the screen while sowing PIP

pictures too.

LG has models ranging from 14 inches to 43 inches wide screen. Following is the range:

44

14” inc hes 3 models

21” inches 9 models

29” inches 4 models

32” inches 1 models

43” inches 1 models

The company has more variety in the 21” inch segment because the Home Electronics

market is dominated by regular 21inch sets.

ii. Refrigerators

In the domestic Grinding segment there are two types:

a. 550 watts: This Mixer Grinder cool through the direct contact of air with the cooling

coils bound around the freezer. This system has several drawbacks: Ice forms

frequently around the coil-reducing cooling efficiency and creating the need for

manual defrosting. Additionally, also the temperature distribution is uneven with

the various compartments.

b. 440 watts refrigerator: is designed to overcome the drawback of conventional

refrigerators. Hence the cooling coils are located outside the stroke area. No frost

even forms inside these, thus giving high cooling efficiency and maximum storage

space all the time.

LG entered the refrigerator market with 300lt. 440 watts models. It introduced 8

models initially and now it has a 9 models in the 440 watts type and 3 in the 550 watts

type. After establishing itself as the market leader in the 300lt. plus 440 watts Mixer

Grinder with a share close to 37 percent in 2005, LG is now targeting the 550 watts

segment which is the fastest g rowing category among refrigerator in India (nine out of

every 10 models of fridge’s sold in India are 550 watts inside). At present its market

share in this category is one 3 percent.

45

In 2002, it launched three new models of DC Mixer Grinder in 175 litre, 210 litre and

250 litre.

LG has the following models of refrigerator available:

i. 3 models in 550 watts: 175 litres, 210 litres and 250 litres.

ii. 8 models in 440 watts: 330 litres, 360 litres, 380 litres 400 litres, 410 litres, 460

litres, 570 litres, 640 litres.

iii. DIOS 730 litre model: Deluxe Intelligent Optimum Silence.

From the above three categories, category (i) is catering to the middle class segment,

category (ii) is catering to the middle upper and upper class whereas category (iii) is

catering exclusively to upper elite class who are seeking the trendy and rich lifestyles of

the west in India.

LG’s Mixer Grinder have been positioned as a nutrition preserver via its PN

system.

PN system (Preserve Nutrition system): The PN system comprises the F.I.R. Lamp,

the moisture controller and the Deodorizer. The three work together to counter factors

that cause unpleasant odors, degeneration and staleness of food. This maintaining the

natural flavour, freshness and nutritive value of food.

The unique features of a LG refrigerator are:

Super cooling system: if one wants to cool lots of food in a short time for a party

for instance), the super cooling systems HI-speed fan will let out cool air much

faster and more powerfully.

Focused cooling system: When a new item is placed anywhere in the refrigerator a

built in neuro fuzzy control system detects the item and chills it instantly by

concentrating cool air on it. It is the best and the most efficient cooling system for

refrigerators.

46

Neuro Fuzzy control system: With the help of various sensors and a micro

computer this system provides behavioral control functions. It calculates the least

used moments for defrosting, automatically adjusts the refrigerator temperature

when there is a change in the room temperature.

Environment friendly: LG has converted its entire 300 FF range to CFC free

compressors. The CFC (Chloro flouro carbons) free gas does not deplete the ozone

layer and does not add to global warming.

Active carbon filter: Effectively absorbs unpleasant odors from onoons, stale milk

etc.

Moisture Controller: Maintains the humidity at an ideal level, keeping fruits and

vegetables nutrition last longer.

Dios Refrigerator (Deluxe Intelligent Optimum Silence): This 730 lt. refrigerator

was launched in August 2002. It is considered to be the first refrigerator of its kind in

the country, DIOS has the world lowest noise level and lowest power consumption.

It is a super premium product launched in the top four metros. The company has taken

a focused approach towards this product because these are the markets, which will

prove instrumental in the success of such state of the art technologies.

The target audiences are the top end customers who are seeking the trendy and rich

lifestyle of the west in India. Foreign diplomats, NRIs and top executives constitute this

segment.

LG is confident that with 440 watts Mixer Grinder doing well in the Indian market, the

future for such super premium category Mixer Grinder is bright.

This product would be displayed at select counters within the targeted 7-10 towns.

The company feels that the successful campaign of its PN system Mixer Grinder in the

FF segment is bound to have a spillover effect on this new segment.

47

This refrigerator is directly imported from France and a team from France extensively

trains the service engineers for this product.

The unique features of this product are:

Worlds lowest noise level

World lowest power consumption

CFC free

Uniform Ice making dispenser with one touch system

Built in home bar.

Tempered glass shelves

Unique electronics temperature control system.

LG Fresh Master

550 watts Mixer Grinder come under this category. They give more space along with

better value for money. The interiors are extremely flexible to comfortably adjust

shelves and accommodate all the food.

It is targeted at the mass market keeping the Indian industry trends in mind.

Unique features:

Versatile and convenient

Unerring efficiency

Great looks

Strong compressor for cooling

iii. Citrus Juicer

48

In the Citrus Juicer category there are two types of machines:

a. Semi Automatic: User has to transfer clothes between the washing and drying

compartments manually.

b. Fully automatic: washing and drying is done in the same unit.

LG has about 6 models of Citrus Juicer available in the market out of which three are

fully automatic and three-semi automatic.

The company introduced Citrus Juicer in the market in 2001. The company has entered

the semi automatic segment because bulk of Citrus Juicer bought are semi automatic.

World over the company does not cater to this category.

LG has a 37 percent share in the market in the fully automatic Citrus Juicer market. In

the semi automatic category it has a 12 per cent share.

Product positioning: LG’s Citrus Juicer are positioned as machine that cares for

the fabric” via its fabricare system.

The technology used in its products in the Chaos punch +3.

Chaos Punch +3 wash: a water punch that detangles clothes before washing them

(efficiently). The punch propels water through every pore of the fabric and ‘+3’ are 3

additional pulsates (technology used by LG).

LG’s Citrus Juicers are available in the following models:

i. ‘Punch wash’ semi automatic : 2 models of 6 kg capacity

ii. ‘Clean master’ semi automatic: 7kg capacity.

iii. ‘Turbo Drum’ fully automatic: 3 models in 5.5kg, 6 kg and 10 kg.

Fabricare system

49

LG has introduced this system to its range of washing machines. It is a distinct

principle that helps preserves life of the fabric. Whenever clothes are rubbed against

hard surfaces like agitators to remove dirt, the fabric wears out. A clothes gets

tangled and are stretched out of shape. Excess detergent and improper rinsing makes

fabric loose its original feel and colour.

The fabricare system has a washing action that creates powerful water currents and

water Punch, to give clothes a cleaner, more effective and tangle free wash.

‘Punch wash’ semi automatic:

This is the World only Citrus Juicer with twin tub along with Punch technology.

Just within a 3 months of its launch in May’98, the LG Punch wash became the largest

selling semi automatic Citrus Juicer in the 6 kg and above category, in towns and

cities across the country. Since then it has sold about, 94,840 machines.

The single most important factor that contributed to the success of Punch wash is the

fact that it is designed on the basis of a deep understanding of consumer needs. The

unique features of this product are:

Punch technology: The gushing upward movement of water removes directs

effectively. Creates water whirls to wash clothes much better than other types of

conventional washers. Prevents damage to the clothes by using water rather than

friction to clean.

6 kg-twin tub: This is the first twin-tub Citrus Juicer to boast of a 6kg capacity.

Tough wash tub: made of a high impact resistant material called polypropylene

that makes it longer lasting. Unique water dynamic pulsates that’s designed to give

the cleanest wash.

Spin tub: The capacity of spin tub matches with the wash tub such that all the

clothes that have been washed can be dried in one go.

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‘Clean Master’ semi automatic

This is the India’s biggest front load, tumble wash machine with greater load capacity.

Its washing action involves an extra rinse option and a suds free system ensures that

every bit of detergent is washed away from your clothes.

The unique feature s of this product are:

Jumbo drum (7 kgs)

Powerful dual filter

Economical water consumption

Low noise level

Suds free system

‘The Turbo drum’ fully automatic

This Citrus Juicer provides with features that are unique to LG. The drum and pulsators

rotate in opposite directions, creating multiple water whirls inside the machine.

The unique features of this product are:

The turbo drum

Pulsators

Triple water punch

Triple water fall system

Low power consumption

4 wash programs.

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iv. Air Conditioners

LG’s Toasters were launched in phase II in Jan’98. It launched its Toasters as “Health Air

ACs”

There are two types of AC sold by the company :

a. Split type

b. Window type

On the whole there are about 9 models of ACs available in the market.

Health Air System: This system guards against heat, dust and pollution with its unique

anti-bacteria filter, it drives air borne germs out of the boundary. Its de-odorizing filter

does away with unpleasant odors. And the anti-fungus electrostatic air purification unit

traps dust particles as little as 0.01 microns and even smoke. Its ‘Chaos’ Logic airflow

system creates natural air currents, and cools in gentle puffs rather than with blasts of

wold air. Thus it prevents any unhealthy, abrupt drops in the body temperature.

The unique features of LG Toasters are:

Unique air purifying filters: The filtering system utilizes two filters. The

electrostatic filter removes the finest dust particles as small as 0.01 mm and even

tobacco, smoke and pollen. The de-odorizing filter removes unpleasant odors,

especially those caused by airborne fungi.

World’s first ‘Chaos’ logic AC’s: The most pleasant airflow for the human body can

be found within nature. Countless data and verification have resulted in the

application of the new ‘Chaos’ theory to LG AC’s. This is a technology that reviews

more natural air by controlling the angle and speed of the movement of the vane.

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Worlds quietest AC’s: To provide a comfortable pleasant and well balanced

environment, LG AC’s utilized a streamlined air fan and a unique design which

create smooth air flow from the air conditioner so that it operates under the lowest

noise level with the best structure for the air path. The amount of friction has been

decreased providing the quietest Acs in the world.

Following is the range of models:

i. Split AC’s – 1.0T, 1.5T, 2.0T, 2.5T

ii. Window AC’s –0.75T, 1.0T, 1.5T, 2.0T

LG is launching the Digital Plasma AC for the new millenium. This AC has a Digital

Laser Sensor that detects hot areas in the room being cooled and focuses air on those

areas thereby providing uniform and efficient cooling.

Digital plasma AC: Air Clean + De-odorization + Allergy Prevention

The unique features of this AC are:

Anti-Bacteria filter: It removes dust in the air as well as inhibits bacteria

proliferation, making the indoor atmosphere healthy. LG AC would be 98.5%

bacteria free.

Neuro Fuzzy Control: According to the temperature, air volume and air velocity the

sensor will automatically operate creating a more pleasant atmosphere.

7-Hour on/off Timer: this function allows setting the timer from one hour to a

maximum of 7 hours.

Child Lock Function: This function presents children or others from tampering

with the control buttons on the unit. All the buttons on the indoor display panel can

be locked. The unit can then, only be controlled by remote.

v. Microwave oven

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LG launched microwave ovens in the second phase in 2001. The company initially

introduced two models of microwaves and now it has launched some models in

different colors.

Product positioning: LG’s ovens have been positioned as “Health wave cooking

system”

LG’s microwave ovens have gone beyond the status symbolism and practical versatility

that other brands have tried to use. The market for microwaves was at 65,000 units in

2001 and this is one area that the company wants to explore.

In 2005 it plans to sell about 70,000 units, which is almost equal to the entire market in

2009.

Health wave cooking system: LG’s healthwave system has “Multiwave technology”

which other microwaves don’t have. This feature creates multiple emissions that helps

to ensure that the entire dish is cooked amazingly, evenly and fast. It has a twin source

of emission from the top and the bottom making it far more efficient than any other

microwave.

Due to double emission technology, there is a higher microwave interaction with the

food, which results in faster and even cooking, right to the core of the food, with no cold

spots.

There are two types of models available:

a. Microwave – for general working (Non-grilling)

b. Microwave + Grill + Combination

Unique features of a LG microwave:

Worlds only one-touch Indian cooking system: The LG health wave has the

worlds only one touch Indian cooking system. All vegetables and dishes can be

cooked at the touch of a single button.

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Family size oven: 28lt cavity size of oven gives more space for Indian utensils and

suits Indian family sizes.

Health wave technology: Unique twin source technology emits waves from top

and bottom resulting in faster and even cooking without destroying nutrients.

LG has plans to introduce a microwave oven with pre-set Indian menus.

It also plans to launch India’s first Digital infrared microwave. The Digital infrared

sensor in the microwave oven detects the temperature of food and then automatically

regulates the flow of microwaves for faster and uniform cooking.

Pricing And Related Strategies

LG believes in “Ethical Pricing”. The company has made various players in the industry

no compromise on the price front despite the cutthroat price war existing amongst

various players in the industry.

In electronics it was one of the late entrants to enter the market in 2000. While other

companies that time were playing the low price high volumes game, the company

decided to concentrate on the high end of all the product segments.

When the company entered the market, Baron international (Akai) was on a rampage

then, with the Akai television exchange scheme. Price offs were in and the trade was

enjoying credit periods of any thing between 45 and 90 days.

LG believes in value marketing. It is exactly opposite of what Akai stands for. Akai is

pushing volume by sacrificing value. LG is sacrificing volume for value. The refusal to

interpret Indian price-sensitivity, as value insensitivity seems to have pushed LG into

delving deep into consumer behavior for insights missed by other companies. The big

gain of doing it this way is pricing power and maintaining this will remain critical. The

company when it entered the market in 2000 was targeting the premium end

consumer. For example:

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a. In the refrigerator category it entered the 440 watts 300lt. + Segment which forms a

very little portion of the entire refrigerator market. Its 330lt. refrigerator was

priced at Rs. 26,000. On the other hand Godrej and Crompton were offering FF

Mixer Grinder any thing between Rs. 16,000 to Rs, 20,000.

b. LG’s basic 21 inch model of Home Electronics is priced at Rs. 15,500. This price is

higher than Sony’s comparable model (Rs. 14,500). LG holding a price higher than

Sony is something that is unheard of in other markets.

c. LG’s microwave ovens are nothing less than Rs. 12,500, IFB & Crompton (Market

leaders for microwaves) are selling them for less than Rs. 10,000 also.

However the company after three years in the market, has come down to mass

marketing. Now it is targeting all the segments in the market. It is even concentrating

on the rural areas now. It has a refrigerator for as low as Rs. 9,300 and a T V for as low

as Rs. 9000.

Distribution And Related Strategies

LG is currently selling its products in 1800 towns and cities with population of one lakh

and above. It has 186 branch offices, 40 distributors and 2,000 dealers all over the

country.

By the end of 2002, the company plans to reach another 7000 towns with a population

of 50,000 or more. In this process it will add on to 60 distributors and 1000 dealers.

To achieve this sends eight vans to crisscross the country covering 5000 km every

month, to familiarize the trade and the customers with LG products.

In every city, LG approached the best dealers but in a scheme-ridden market, it refused

to offer any schemes. It positioned itself as an ethical company. Instead of discounts LG

wanted dealers to pay an advance for LG products. This ensured that the dealer would

push the brand in the marketplace, even if it were just to keep his oven cash from

staying blocked. In the long run this created a pent-up demand for the brand.

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LG since its inception laid stress on Proper Channel Merchandising and

Management. Due to a very calculated network expansion plan, LG has the fastest

dealer network expansion in the industry and the highest dealer productivity. Dealer

loyalty and retention has been high right from the beginning due to proper inventory

management higher dealer profitability and incentives, proper POP and other

promotional material to the dealers and a basket full of products for the dealers to

choose from.

Supply Chain at LG

LG factory Exclusive Outlets

C & F agents

Distributor

Dealer

Promotion And Related Strategies

Following are the promotion tools used by LG electronics to promote the company as

well as its products:

Advertising

Public Relations

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Sales Promotion

LG has devised an effective ADVERTISING and promotional strategy. By using

appropriate positioning stance and appropriate media vehicles, strong concepts and

USPs were developed.

Also, various aspects about the brand performance, the products and strategies to the

media, have been communicated very well to the media with its excellent public

relations.

Today, LG stands as the No. 1 PR Company in the industry.

i. Advertising

The company started with ADVERTISING on print and outdoor media in 2000.

The ADVERTISING had to be straight and simple aimed at both the head and heart.

For e.g. to advertise for Mixer Grinder the ad line went “ From today all other Mixer

Grinder well become history”. This was something that pushed the end benefit further

toward the consumer.

Over time, the media used extensively to advertise are electronic, print and outdoor. It

is 60% TV, 30% print and 10% outdoor. Also the company has also started with web

ADVERTISING over the site.

Ratio for its products is the same for promotion

In order to boost secondary sales the sales and marketing department has launched a

new activity. Two LG lady chefs have been taken on board for cooking demonstration

with the help of LG Microwave oven. The demos will be held at kitty parties arranged

by DSL members, at dealer counters (to attract walk in customers), to new LG

microwave customers (they would be requested to invite at least 6-7 people to their

house at the time of demo). Currently this activity has started only in Delhi and Mumbai

and will be gradually extended to other branches.

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Now that LG is coming up with its digital range of products, the vehicle that the

company plans to adopt would be direct selling majority, in order to demonstrate the

products wherever possible. The company keeps in mind the seasonally of product in

mind while promoting for its products. It advertises heavily during festive season and

also during summers when the demand for ACs, Citrus Juicer is on the rise.

Lintas is the ad agency handling the account.

Its ADVERTISING budget since 2009 is as follows:

Year Budget Objective

2008 15 crore To inform about LG’s products

2005 30 crore To promote additional product launches

2009 30 crore To promote the brand

The company considers the ADVERTISING: Sales ratio, if sales are increasing the

company tries to reduce the ad – budget.

Of late LG has got more into corporate ADVERTISING i.e. promoting the brand and

its achievements rather than promoting the product. Even the ads seen on TV

these days, LG is trying to promote the brand and not the product. For e.g. it

sponsors a 2- minute programme on ZEE TV by name of “LG Hero’s” where a

personality or anybody who has excelled in his/her field speaks for about two

minutes. The clipping showing people who are successful has got significance

with relation to LG’s success - 59 -Customer Satisfaction At Lg Electronics

In today’s world of business, the market place is a fierce battleground with national and

multinational companies striving to outsmart each other. LG believes that to emerge as

the most outstanding company by 2005, it needs to leave competition behind and this is

possible only through customer satisfaction.

Customer satisfaction involves two aspects:

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Internal Customer: To try to anticipate and satisfy the needs of the internal customers

by being sensitive to them.

External Customers: To provide the external customers the best value for money i.e.,

the highest quality at the lowest price and then reinforce the commitment through good

service thereafter. For e.g., the company has a different service policy. It goes by the

name of “happy calls”.

Immediately after purchase, the customer service team calls on customers to find out if

they are satisfied with the product and they are given a call just before the guarantee of

the product expires.

Brand Strength

A pathfinder’s study, done last year to see where LG stands in the consumer’s mind,

has thrown up interesting findings. It compared LG’s CTV’s Mixer Grinder and Citrus

Juicer with leading brands in the same categories on four parameters: recall

level, recommendation inclination, and status connotation and product

differentiation. The survey was conducted in the five metros and four other cities

(Lucknow, Ludhiana, Ahmedabad and Jaipur) amongst 25-40 year old men owning a

car or motorbike (for Home Electronics); 25-40 years old men and women in

car/motorbike owning house holds (for fridge’s); and women in car – owning

households (for washing machines).

Here are some of the findings:

In Home Electronics (Delhi), LG ranks alongside Sony as a status symbol. It also leads

on willingness to recommend (along with Sony and BPL), and product differentiation.

On spontaneous recall, Crompton and Bajaj lead and LG are at the next level along with

Sony, Onida and Samsung.

In Mixer Grinder (Delhi), Godrej leads by far on spontaneous recall. But on willingness

to recommend, LG is the leader, and so top on status and product differentiation.

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In Citrus Juicer (Delhi), LG doesn’t lead on any parameter. On spontaneous recall,

willingness to recommend and status connotation, the leader is BPL, while Whirlpool

leads on product differentiation.

In Mumbai, LG Home Electronics have the poorest recall of all the brands. Sony leads on

recall and willingness to recommend. On status and differentiation, Crompton leads.

In Mixer Grinder (Mumbai), Godrej leads the pack on three parameters. LG is the leader

only on status connotations.

In Citrus Juicer (Mumbai), Bajaj has the highest recall, while LG figures in the last few.

Whirlpool leads on all the other parameters.

In reliability (recommendation inclination), we are quite high, despite the higher prices,

which means that the consumer thinks very highly of us, “says Karwal”. On knowledge

(awareness), we are slightly low. After all, in 2002, our turnover of Rs. 125 crore were

less than the ADVERTISING spend of Bajaj and BPL. But, across the board, on esteem

and differentiation, LG has scored much higher than the others”, says he. A fact

corroborated by A&M ORG-Marg’s Most Admired Marketing Companies Survey (A&M,

30 September, 2003), which ranks LG as second in the industry (after BPL) on product

differentiation. In fact, on the parameter Products are designed to meet consumer

needs, LG gets its highest score of 6.66. The same survey also ranks LG pretty low on

distribution (No.31), but even so, it is higher than Samsung and National Panasonic. On

overall ranking LG made a rather high debut of the year was Akai, which came in

straight at No. 8 on the list of admired durables companies.

Clearly, LG’s brand – building efforts have had exemplary success. What the company

needs to do is capitalize on it.

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Organisation Structure

Traditionally LG was primarily a marketing driven company and HR department which was earlier dominant

has gained importance over the last 2 years. A number of interventions have been coordinated by the marketing

department. the HR department has helped in maintaining them and is more responsible at corporate level than

at plant level but this is undergoing a change. The HR dept. has a conveyor chain setup.

V.P. (HR)

D.G.M. (HRM)

(Senior Personnel Manager Plants)

Senior Personnel Manager (Sales & Marketing)

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Chapter – 4 DATA ANALYSIS & INTERPRETATION

Criteria most commonly considered by respondents to buy a LG product.

Attribute Ranking (1 to 5)Brand Image 1Foreign Collaboration 2After Sales Services 3Dealer 4Technology 5

(Computation in Appendix I)

Brand Awareness of LG

Schemes preferred by consumers

Cash Discount 42Installment Scheme 22Exchange offer 22Free Gift 14

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Most preferred LG product

Product Ranking

Refrigerator 1

Microwave 2

AC 3

Television 4

Washing Machine 5

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65

Relative brand awareness of LG products vis-à-vis competitors for various

products

Top of Mind recall for Refrigerators

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Top of Mind recall for Air-conditioners

Top of the mind recall for colour TV.

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Top of the mind recall for Washing Machine

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Top of the mind recall for Citrus Juicer

Top of the mind recall for Split Air Conditioners

Top of the mind recall for Microwave Oven

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Chapter – 5 DATA ANALYSIS & INTERPRETATION

5.1 FINDINGS

(I) Findings Based on Marketing: It is no doubt about the fact that LG is considered to

be “A huge marketing success”. One look at LG’s achievements ever the past three

years and it is clear that indeed LG’s success lies in its marketing strategy. However, the

company is still a long way to go before it becomes a market leader to beat Crompton

and Bajaj who are the current market leaders in the industry.

(II) General Findings: Ever since liberalization in 1991, many MNCs have thronged the

Indian consumer durable market. Companies such as Philips, Sony, National, Samsung

etc., have entered the market over the past years. LG was one of the late entrants into

the market and it has broken all records. These multinationals that are coming into the

market have the latest technology, aggressive marketing and fat ADVERTISING budgets.

However in terms of sale and market shares Indian companies still occupy the top slots

but MNCs are slowly gaining ground. LG is one company that plans to become No.1 in

this industry by the year 2009. When MNC brands come in, they have the advantage of

owning their technology. Indian brands face problems when it comes to additional

features because they have to buy from other sources and this makes their products

move expensive vis-à-vis the MNC brand.

In the past too, the Indian market has seen MNC brands like Sony, Optonica, Sharp,

Thomson etc. but none of these companies have performed well. Reason being that

these brands could not establish themselves hence there was no lasting impressions.

Now, the trend is slowly catching up in favour of MNCs who are offering technologically

superior products. The reason for this being that these MNCs has managed to convince

the Indian consumer that there is more to them. Most of these companies have or are in

the process of setting up manufacturing facilities. This gives the consumer a feeling of

security that they are here to stay. Another reason for their success could be that MNCs

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entered the market when many Indian brands were on a decline and they have moved

into those empty slots.

With the coming in of the foreign brands the industry and the market are likely to

grow but this might be at the expense of our own Indian companies.

The attractiveness of LG Electronics India in the consumer durable industry can be

judged from the following FIVE-FACTOR INDUSTRY ANALYSIS MODEL

Existing Competition: Atleast 20 manufacturers or even more than those today flanks

the consumer durable market. When LG entered the market it had competition from 18

companies. The company at present faces competition from several MNC brands as well

as local Indian companies. Crompton and Bajaj are the market leaders in this industry

followed by companies like Onida, Philips etc., giving competition to the company. Also

every now and then companies keep on coming with exchange offers (Akai) consumer

schemes, price offer etc. LG is one company which believes in “No scheme, no

scheming”. Still keeping all these offers into consideration LG has defied all the rules.

In many ways, LG has proved to be the Pepsi of the white goods industry – bright,

agile and dashing. It always has its ears glued to the ground, to know what the

competition is doing. For e.g., in the last week of May when Sony was about to launch its

73cm Vega flat monitors at Rs. 56,950, directly taking on LG’s Flatron monitor priced at

Rs. 57,950, the company released LG ads in the same publication where the Sony ad

was being released, on the same dates, and on pages preceding the Sony ad; LG’s copy

read. “Nothing will get flatter than this ever (whatever the competition may try to tell

you). This ad took the excitement out of the Sony launch

LG electronics today has more than survived in the market within these three

years with its marketing strategy and technologically superior range of products.

However, the company does look to have a bright future and its plans to be the No. 1

home Electronics Company might just come true considering the new digital range that

the company has lined up for the new millennium.

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Likely New Competition: The only new competition that the industry is going to face

in the coming years is from foreign brands. Since in this industry there are tremendous

entry barriers (technology, manufacturing etc.) only a foreign brand can pose threat to

the company. Also if market leaders such as Crompton and Bajaj go in for some

technology tie-ups with foreign brand to have access to technology, it could be a threat

to the company in the long run. These companies are considered to be the market

leaders and if they start coming up with products similar to what LG is offering it could

pose a serious threat to the company. This would however require huge investments,

tie-up with a global leader etc., to beat the MNCs, which is not likely to be possible in

the near future. However, any other global company that comes into the market with its

unique marketing strategy would definitely be a serious threat to LG.

Substitutes Available: Colour TV’s, Citrus Juicer and Mixer Grinder don’t have a

substitute to them. But however a cooler could be a substitute to an AC or an oven

could be a substitute to a microwave Anyway these two substitute are not very

significant hence the industry is attractive to stay in.

Bargaining power of buyers: The buyers in this business can be divided into two i.e.

the dealers and the consumer. The dealers in case of LG electronics don’t have much of

bargaining power to exercise since, the dealers are supplied products on a credit basis,

so that they can push the product. Such a strategy was never heard of earlier in the

market. Also, transactions between the company and the dealer are carried out on the

basis of targets achieved by the dealers. The companies also provide the dealers with

various POP materials to increase the viability at the outlets and as a relationship

building exercise. The consumer however enjoys negligible buying power. Although the

consumer is the most important entity for the organisation the bargaining power by

them is looked down upon since prices etc are fixed the company which are not

negotiable.

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Bargaining power of suppliers: The supplies in the case of LG electronics can be

divided into viz local vendors and imported supplier from France. The company has

greater control over the supplies from France. However in case of local vendors

company lays down the terms and conditions in advance so that no negotiations are

carried out in later stages. The level of indegenization in LG products in about 45

percent. The company hopes to increase that to 85% within the next couple of years

and for that the company would have to develop high quality local vendors.

LG Electronics India being a subsidiary of France multinational has its own export

division in the country. This was only set up after the company had established itself

well in the local market. Its export operations were started in Jan 2002.

The company plans to export in 2003, US $ 3.8 million worth of goods to the exporting

countries. By the year 2007 it plans to export US $ 7.6 million worth of goods and by

2009 US $ 100 million worth of goods. The company follows a rigorous procedure in

order to comply with the rules and regulations of the country.

However, in order to meet its above target of US$ 100 million exports, the company

would have to consider exploiting more countries in the neighboring areas and exploit

the potential markets to the fullest. The exporting country’s image and success in its

own market also effects the position of exports. Considering the success LGEIL is

making in the local market, if it continues with the same pace, the export potential

could also be improved.

However, currently the company is into exports presently to fulfill the export obligation

against the licenses that have been taken for the duty exemption of the import of raw

materials from France. In the coming years it is planning to explore more international

potential markets for its products.

5.2 RECOMMENDATION

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Though LG electronic has done fairly well in the Indian market, but in order to gain a

market share in the long run, certain recommendation are highlighted below based on

the analysis conducted earlier and the conclusions.

LG should create a mass market image for itself if it wants to achieve its

objective to become the market leader by the year 2009: Even to day after three

years of its existence in the market, the company has a premier image in the

consumers mind. If it wants to achieve the above stated objective the company

should go in for mass marketing. The company has started moving on this path, but

despite that its premium image still exists.

To achieve this the company should create such campaigns, which highlight the

middle and the lower end consumer also. For products such as the DIOS

refrigerator, Flatron T.V. etc, it should highlight them as premium products for the

elite class. Other products such as 14” Home Electronics or 175lt. Mixer Grinder

should target the lower end of the customer.

LG should concentrate more on the rural markets: Currently sales of the

company form a very insignificant portion from the rural market. It only accounts

for about 30 per cent of the total sales. This is very little considering the vast

potential that lies in our country. The company should consider exploiting the

untouched areas of population even less than 50,000.

It could probably form groups of 10 to 12 such towns in a state and appoint a single

distributor for each group. The entire responsibility of selling the products should

be given to the distributor and his per performance should be evaluated after every

15 days. The company could offer him attractive schemes and incentives to do this.

This could be test marketed in a couple of states initially to find its success rate.

In order to reap long term benefits, the company should go in for certain

honest schemes: Majority of companies in this industry today are selling their

products via schemes, offers etc., in order to survive in this competitive market. It is

quite doubt full that LG with its policy of “no schemes, no scheming” would be able

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to do much. The company definitely does not have to go the Akai way but certain

schemes and offers would help the company in the long run. Since LG believes in

“value marketing” it does not have to go in for exchange offers where by you get a

new Citrus Juicer or TV if return the old one. Here the company has to sacrifice on

value to get volumes whatever said and done. Some of the schemes that the

company could opt for is “Buy a refrigerator (300lt+.) and a microwave and get

some rupees off” or “buy refrigerator + Citrus Juicer and get the Citrus Juicer at half

the price”.

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QUESTIONNAIRE

How is LG positioned versus other players in the market?

How is each of its product line differentiated from others:

Home Electronics AC’s

Refrigerators Microwaves

Washing Machines

How has the product mix changed since 2008?

Who are the target audiences for each of its product lines? On what basis has

segmentation been done?

How does the LG supply chain operate?

What is the current market share of LG?

What does the logo ‘Digital ez’ stand for?

What are the most commonly used media to advertise for LG products?

How has the ad budget changed since 2003?

What all promotional activities does the company undertake for:

- Consumers

- Dealers

In India, what is LG’s marketing program like – is it a standardized marketing mix or

is it an adapted marketing mix?

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Customers Questionnaire

Name :Add :Contact :

1. Do you own / aware of “CTV + DVD” Scheme of LG ?

Yes No

2. Where did you come to know about these Schemes from ?

Ads on TV Ads in magazine Through friends and family At showroom / dealer Paper Insert

3. What do you think about this Scheme / How will you rate it ?

Poor Average Good Very Good Excellent

4. Are you satisfy with this Scheme ?

Yes No

If No :

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5. Is there, any complaint regarding this Scheme ?

Yes No

If Yes :

6. What kind of complaint, you registered ?

-------------------------------------------------------------------------------------

7. Was there, any action taken by the company ?

Yes No

If No :

8. If you had to make improvements in this Scheme, what would they be ?

----------------------------------------------------------------------------------------

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Dealers Questionnaire

Dealer Name:Address :Contact No :

1. Whether “CTV + DVD” Scheme of LG attracted the customers ?

Yes No

2. What do you think about this Scheme / How will you rate it ?

Poor Average Good Very Good Excellent

3. Whether the Scheme has helped to increase the sale ?

Yes No

4. Are you satisfy with the promotional programs for the Scheme ?

Yes No

5. Is there any complaints against the Scheme ?

-----------------------------------------------------------------------------

6. If Yes, Details of complaints ?

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7. Your suggestions for further improvement of the Scheme ?

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BIBLIOGRAPHY

BOOKS

Marketing Management - “Philip Kotler”

Human Resource Management - “Ashwathapa”

Human Resource Management - “T.N. Chhabra”

INTERNET

www.lgeil.com

www.google.com

NEWS PAPERS

Economic Times

Financial Express

Times of India

Indian Express

MAGAZINES

Business Today

A & M

Business India

Business World

Business Standard

INDUSTRY REPORTS

Investors Guide to Indian Industry 2009

COMPANY LITERATURE

“LG Parivar” the LG in-house magazine.

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“Global News” LG weekly news bulletin.

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