Research on LG

8/11/2019 Research on LG

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CHAPTER -1

INTRODUCTION

1.1 Overview of Electronics Industry

The consumer durable goods industry is a highly growth oriented Industry,

which is seeing high net growth inspite of the recession which has gripped the

major industries worldwide. In 2003, despite the various global difficulties, the

industry achieved higher yearly Sales growth over the previous year. But 2004

will bring great challenges for the industry as uncertainty in global business

and continued weakness in the world markets carries over from the previous

year. But the Indian market has been able to post robust growth in this industry

inspite of the recession in the world markets. The reason, which has helped this

industry, is the desire of the Indian people to acquire the latest that the

technology and the companies have to offer in the product portfolio ranging

from CTVs & their higher end versions of plasma & projection TVs , Air

conditioners, Refrigerators, Washing machines, Cell phones, Microwave

Ovens etc.

This desire stems from the fact that people have money at their disposal and

want to spend it only on the Products, which give them, value for money. This

is because after a hard dayswork people want to relax for which they purchase

products that help them to do so. For example: washing machines that require

only the clothes be put into it, air conditioners which provide relief fromextreme hot and cold weather, Cell phones that help in connectivity and other

similar products with their associated features that help in making life smooth

for the people. Companies are cashing on this aspect to fuel their growth and

are even succeeding in their efforts if they provide good quality products. This


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industry is also witnessing growth because the companies are concentrating on

strengthening the R&D and expanding investments in home & overseas market

and by also developing core technologies. They are working hard to expand

their market position by producing innovative products as well as improving

product quality and cost competitiveness.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,

South Korea was established in January, 1997 after clearance from the Foreign

Investment Promotion Board (FIPB). LGEIL set up a state-of-the art

manufacturing facility at Greater Noida, near Delhi, in 1998, with an

investment of Rs 500 Crores. This facility manufactured Color Televisions,

Washing Machines, Air-Conditioners and Microwave Ovens. During the year

2001, LGEIL also commenced the home production for its eco-friendly

Refrigerators and established its assembly line for its PC Monitors at its

Greater Noida manufacturing unit.

The Greater Noida manufacturing unit line has been designed with the latest

technologies at par with international standards at Korea and is one of the most

eco-friendly units amongst all LGEIL manufacturing plants in the world. New

and unique products will see us playing a major role in the home appliances

market. Flagship products that will lead our ranges include a stylish Side by

Side Refrigerator with built in LCD TV, large capacity Direct Drive Washing

Machines, round cavity Microwaves and new Vacuum Cleaners with multi-

cyclonic technology.


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1.2 Profile of the Organization

The LG Group is South Korea's third largest conglomerate that produces

electronics, mobile phones, and petrochemical products and operates

subsidiaries like LG Electronics, LG Telecom, Zenith Electronics and LG

Chem in over 80 countries. LG Group sponsors the LG Cup Go Tournament.

LG Group founder Koo In Hwoi established Lak Hui Chemical Industrial

Corp. in 1947.[3] In 1952, Lak Hui (currently LG Chem) became the first

Korean company to enter the plastics industry. As the company expanded its

plastics business, it established Goldstar Co., Ltd., (currently LG Electronics

Inc.) in 1958. In 1959, Goldstar produced Korea's first radio. Many consumer

electronics were sold under the brand name Goldstar, while some other

household products (not available outside South Korea) were sold under the

brand name of Lucky. The Lucky brand was famous for its hygiene products

line such as soaps and Hi-Ti laundrydetergents, but most associated with its

Lucky and Perioe toothpaste. In 1995, it was renamed "LG", the abbreviation

of "Lucky GoldStar". More recently, the company associates its tagline "Life's

Good", with the letters LG.

Established in 1958, LG Electronics, Inc. (LG) is a global leader and

technology innovator in consumer electronics, home appliances and mobile

communications, employing more than 82,000 people working in over 110

operations including 81 subsidiaries around the world. With 2007 global salesof USD 44 billion*, LG is comprised of four business units Mobile

Communications, Digital Appliance Digital Display and Digital Media. LG is

the worlds leading producer of CDMA/GSM handsets, air conditioners, front-

loading washing machines, optical storage products, DVD players, flat panel


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TVs and home Theater systems. LG has created reputation for progressive

technology and innovation with the release of some of the latest technological

developments in consumer electronics, home appliances and IT products. For

example, LG is currently the world's number one manufacturer of plasma

display modules. LG Electronics' goal is to enable the intelligent networking of

digital products that will make consumers' lives better than ever. LG

Electronics has established itself as a major international sports sponsor with

partnerships including the LG Super Racing Weekend touring cars tournament

in conjunction with Eurosport and the ICC cricket tournaments for example the

ICC Trophy in England 2004 and the Cricket World Cup 2007. In 2005 LG are

proud to sponsor all of ITVs Formula 1 coverage for the duration of the 2005

F1 season. For more information, visit the sponsorship page. 2013 will see LG

strengthen our range of large screen, HD and Digital Ready Plasma and LCD

TVs.TV products are not just leaders in technology and innovation but also

offer sleek design and style, our TV products really will be the centre of

attention this year. This year our Digital Appliances will reinforce our presence

in the UK in 2005.

New and unique products will see us playing a major role in the home

appliances market. Flagship products that will lead our ranges include a stylish

Side by Side Refrigerator with built in LCD TV, large capacity Direct Drive

Washing Machines, round cavity Microwaves and new Vacuum Cleaners with

multi-cyclonic technology. Also new in 2005 are LGs stylish and innovative

40 & 80 series LCD Monitors and a growing range of the award winning

Optical Storage Super Multi Drives.


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1.3 History of the Organization

Founder and chairman In-Hwoi Koo, with the pen name of Yonam established

the Lucky Chemical Industrial Co (Pusan Trading Company). Present LGChemical in 1947, heralding the LG history. LG, which started its corporate

activities with the production of Lucky Cream, advanced into plastic industry

for the first time in Korea in order to develop a cap of cosmetics, which is not

breakable. LG elevated the standard of living of the Korean people by

producing plastic goods including combs, soap cases, toothbrushes and

tablewares. With the development of toothpaste for the first time in Korea with

its own technology, LG dominated the domestic toothpaste market. In the mean

time, LG established Goldstar Co. (Present LG Electronics) in 1958 in the

process of expanding its plastic industry area. It has inaugurated a new epoch

of the electronics industry by manufacturing a radio in 1959 for the first time in

Korea. At present LG Electronics is a major player in electronics and

telecommunications,operating 72 subsidiaries around the world with around

51000 employees worldwide.

1.4 Corporate Identity

Significance of Logo:

The symbol-mark, the visual representation of LG, is the most significant

element of LG CIP (Corporate Identification Program). The Letters L and

G in a circle symbolize the World, Future, Youth, Humanity andTechnology. Their philosophy is based on Humanity. Also, it represents LGs

efforts to keep close relationship with their customers in the world. Red, the

main color, represents their friendliness, and also gives a strong impression of

LGs commitment to the best. The elements of the international corporate


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signaturethe most effective visual representation - include the LGs symbol -

mark and the logotype. Different versions of the international signature have

been developed to accommodate the variety of situations requiring its use.

However, in order to present a single image, the exact ratio and size must never

be altered, and must be reproduced by typography or computer graphics, based

upon the manual. It is not necessary to print LG in Korea unless you are

forced to do so.

Competition Information

Corporate Name: LG Electronics Inc.

Established: October 1, 1958 (As a private company)

Corporate Office: LG Twin Towers 20, Yoidodong,

Young1dungpo-gu Seoul, Korea 150-721

Number of Employees: 51300 (25700 in Korea/25600 Overseas)

Key People

1. Chairman, LG Group: Koo Bon Moo

2. Chairman and CEO: Kim Ssang-Su

3. President and CTO: Paik Woo-Hyun

Core Values:

LG Electronics believes in The changing way of thinking can change the

world. We of LG Electronics change our ways constantly. Hatching new ideas

is how we give the customers a greater value. A corporations core values are

mirrored in its business performance innovation, openness, and partnership.

Cultivating a challenging spirit, it musters every bit of creativity it can. With

minds wide open, it treasures the wisdom of customers suggestions. On the


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basis of win -win reciprocity, we are enhancing partnership with customers,

outsourcing contractors, and joint companies.

Core Competencies:

LGs digitalists are building up marketing experience and technical expertise

for greater competence, Intriguing designing for an intricate network. The core

competences they have built up are indispensable for their growth into a global

digital leader. LG hatches products from many bright ideas.

Top Competitors

Daewoo Electronics Corporation

Matsushita Electric Industrial Co. Ltd. (MC)

Samsung Electronics Co. Ltd.

LG has a strong international positioning, with domestic sales accounting for

only 36.6% of sales in 2001. The company has lessened its dependence on the

South Korean market over the review period, with domestic sales accounting

for a slightly larger 37.9% of M.P.Birla Institute of Management sales in 1997.

Sales in South Korea showed notable growth in 2001, although this slowed in

the second half of the year as the economy showed signs of weakening.

LG VISION

Firstly, the vision of LG is to Secure world class competitiveness in core

businesses and keeping up with rapidly changing business environment, LG

has set the management strategies for the 21st Century as to aim at a leading

company in the core business fields such as Information &

Telecommunications,Bio-technology and Internetand to create a new

centurys organizational culture that cultivates human resources equipped with


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creativity and challenging spirit. Since world is rapidly shifting into the

information society, thus the development of information technology

represented by Internet has enabled people to jump over the limit of time and

space and create countless El-Dorados. Just a click brings forward the whole

world and barriers between regions and countries no longer exist. Besides,

cooperation between companies is everyday occurrences under the

circumstances of fierce competition.

Second, LG is introducing more top tier products and services than ever in the

global marketplace. Its R&D experts are developing distinctive technologies

ahead of M.P.Birla Institute of Management. competitors. Marketing,

manufacturing and procurement experts are increasing product value.

Thirdly, the company is changing its way of thinking and attitude and wish to

set up more challenging targets than the competition and taking pole positions

in core industries by rapid adaptation of new and innovative best practices.

Lastly, the company would like to emphasize its preparedness for the future,

while the utmost goal has been to deliver growth and profit. From now, LG is

trying to draw on LGs new strategic vision, together with the hopes and

expectations for the future believes to continue and adhere to the new focus,

driven by a challenging and winning spirit based on the management of

substance philosophy. The potential and tremendous opportunity ahead of LG

is unlimited for 2002 and beyond.

LG Mission

The mission of LG is to provide the customers with utmost satisfaction through

leadership. The fundamental policy of development is to secure product

leadership that the Customers may have the utmost satisfaction.


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Product Leadership

We are focusing on six development areas to become the product leader.

1. New Machine

2. Reliability

3. Conventional Installation

4. Environment Friendly Product

5. Low Noise & Vibration

Quality Innovation

The policy of quality assurance is to provide customers with utmost

satisfaction by supplying zero defects. LG will succeed through fair

management practices and constantly developing our business skill.

a) Honest with our customer

b) Providing great values to customer through constant innovation & and

development.

c) Equal opportunities

d) Equal Treatment

Management Principle - Creating value for customer

Code of conduct of LG:

1) Responsibility and obligations to customers:

Respect for Customers

Creating Value

Providing Value

2) Fair competition

Pursuit of Free Competition

Compliance with Laws and Regulations


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3) Fair Transaction:

Equal Opportunity

Fair Transaction Procedure

Support and Aid for Business Partners

4) Basic Ethics for Employees

Basic Ethics

Completion of Duty

Self Development

Fairness in Performance

Avoidance of conflict with company interest

5) Corporate Responsibilities to employees

Respect for human dignity

Fair Treatment

Promoting Creativity

6) Responsibilities to society and country

Rational Business Development

Protection of stock holder interest

Contribution to social development

Environmental Conservation


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1.5 SWOT ANALYSIS

STRENGTHS

1. Wide range of products to serve all categories and a strong focus on

technology and quality.

2. Effective localization of product offerings for growth markets like India,

Brazil, China

3. Brand offers sound rational appeal good product features and good value

for money

4. Good after sales service and wide distribution network

5. Subsidiaries enjoy independence in decision making and hence have

flexibility in adapting to the local market

6. Sponsorship of sports and entertainment events enhances visibility

7. It has nearly 100,000 employees and is one of the top mobile manufacturers.

WEAKNESS

1. Brand lacks influence in the opinionated segment of early adopters

especially in the social media environment.

2. Brand has limited market share compared to market leaders.


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OPPURTUNITIES

1. Fast growth of home appliances, electronics goods market in emerging

economies.

2. Convert improved brand image and awareness in to market share.

3. Increase the already Wide product portfolio.

THREATS

1. Price war with close Korean competitors like Samsung can disrupt growth in

price sensitive markets.

2. Highly competitive industry dynamics

3. Stagnant urban demand

4. Instances of false green claims can

erode brand value and consumer trust.


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CHAPTER - 2

CONCEPTUAL FRAMEWORK

Dealer behavior is the study of how he purchases, how he sells, how they get

feedback from consumers and after that he came to conclusion about particular

LG product. It is a subcategory of marketing that blends elements from

different fields. It attempts to understand the buyer decision making process,

both individually and in groups. It also tries to assess influences on the

consumer from groups such as Family, friends, reference groups, and society in

general. By understanding the consumer, we will be able to make a more

informed decision as to which strategy to employ. Established in 1958, LG

Electronics, Inc. (LG) is a global leader and technology innovator in consumer

electronics, home appliances and mobile communications, employing more

than 82,000 people working in over 110 operations including 81 subsidiaries

around the world. With 2007 global sales of USD 44 billion*, LG is comprised

of four business units - Mobile Communications, Digital Appliance, Digital

Display and Digital Media. LG is the worlds leading producer of

CDMA/GSM handsets, air conditioners, front-loading washing machines,

optical storage products, DVD players, flat panel TVs and home theater

systems.

LG has created reputation for progressive technology and innovation with the

release of some of the latest technological developments in consumer

electronics, home appliances and IT products. For example, LG is currently the

world's number one manufacturer of plasma display modules. LG Electronics'

goal is to enable the intelligent networking of digital products that will make


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consumers' lives better than ever. LG Electronics has established itself as a

major international sports sponsor with partnerships including the LG Super

Racing Weekend touring cars tournament in conjunction with Eurosport and

the ICC cricket tournaments for example the ICC Trophy in England 2004 and

the Cricket World Cup 2007. In 2005 LG are proud to sponsor all of ITVs

Formula 1 coverage for the duration of the 2005 F1 season. For more

information, visit the sponsorship page.

2005 will see LG strengthen our range of large screen, HD and Digital Ready

Plasma and LCD TVs. Our TV products are not just leaders in technology and

innovation but also offer sleek design and style, our TV products really will be

the centre of attention this year. New and unique products will see us playing a

major role in the home appliances market. Flagship products that will lead our

ranges include a stylish Side by Side Refrigerator with built in LCD TV, large

capacity Direct Drive Washing Machines, round cavity Microwaves and new

Vacuum Cleaners with multi-cyclonic technology.

2.1 Global Operation

LG Electronics is playing an active role in the world market with its assertive

global business policy. As a result, LG Electronics controls 110 local

subsidiaries in the world with around 82,000 executive and employees.

LG Group

LG.Philips LCD

LG Chemical

LG Telecom

LG Powercom

LG Twins


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LG Dacom

Business areas and main products

Mobile communications

(a) CDMA Handsets,

(b)GSM Handsets,

(c) 3G Handsets,

(d)Cellular Phones

Digital appliance

a) Air Conditioners ,

b) Refrigerators ,c) Microwave Ovens ,

d) Washing Machines ,

e) Vacuum Cleaners ,

f) Home Net ,

g) Compressors for Air Conditioners and Refrigerators

Digital display

a) Plasma TVs ,

b) LCD TVs ,

c) Micro Display Panel TVs,

d) Monitors,

e) PDP Modules,

f) OLED Panels,

g) USB Memory,

h) Flat Panel Computer Monitors

Digital media

a) Home Theater Systems,


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b) DVD Recorders ,

c) Super Multi DVD Rewriters,

d) CDRW,

e) Notebook PCs,

f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players ,

j) New Karaoke Systems,

k) Car Infotainment

2.1.1 The Slogan

"Life's Good" represents LG's determination to provide delightfully smart

products that will make your life good. The LG Electronics Life's Good

signature consists of the LG logo, seal, and the slogan, "Life's Good" set in

Charlotte sans typeface curved around the LG symbol. The curving of the

slogan reinforces LG's personality and uniqueness. The consistent usage of this

signature clearly establishes the unique identity of the company and unifies

every division and product from LG Electronics across the globe.

2.1.2 The Symbol

The symbol of LG is the face of future. The letter L and G in a circle

symbolizes world, future, youth, humanity & technology.LG philosophy is

based on humanity. It also represents LGs efforts to keep close relationship

with our customers around the world. The symbol consists of two elements.

1. The logo in LG gray

2. The stylized image of human face in the unique LG red color.


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Red color represents our friendliness and gives a strong impression of LGs

commitment to deliver the best. The circle symbolizes The Globe. The stylized

image of a smiling face in the symbol conveys Friendliness and

Approachability. The one eye on the symbol represents Goal-oriented,

Focused & Confident. The slogan of LG is Lifes Good. It expresses

Brands Value, Promises, Benefits, Personality.

2.1.3 The Partnership

LG Electronics chooses to promote harmony and build constructively on a

labor-management relationship rather than an employee-employer relationship.

This illustrates that management and workers are not in a vertical relationship,

but in a horizontal one. This culture is necessary for LG Electronics as it strives

to become one of the world's top companies. Such a relationship is transformed

into a valuecreation relationship whereby both parties endeavor to address

mutual problems and create new values together.

2.1.4 LG Brand Identity

The brand of LG is delightfully smart. LG strives to enhance the customers

life and lifestyle with intelligent features, institutive functionality and

exceptional performance. The brand platform

The LG brand is composed of four basic elements .

Value

Promise

Benefits

Personality

The Brands core Value that never changes.


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Trust,

Innovation,

People

Passion

The benefits that are consistently delivered to the customer includes

Reliable products

Simple design

Ease of use

Extraordinary Experience

Personality describes the human characteristic that are expressed to the

customer through

Trustworthy, Considerate

Practical, Friendly

The Internal Culture of LG:

LG practices four cultures

Learning Culture Boundary less Environment

A Carrier

Growth

According to LG, the Learning Culture continuously helps the employee to

learn more and more to develop the habit of continuous learning. Boundary

less Environment means that there is no difference between the levels of

employees. There is transparency between the work and mutual understanding

between all the employees. A carrier is highly growing in LG and one who is

the employee can develop their carrier largely. A new comer will feel fully

comfortable in the company and for a new comer the company is very helpful


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in the overall growth of personality. Growth in LG is very high for those who

are in the company and for those who want to join in LG.

2.1.5 Code of conduct of LG

1. Responsibility and obligations to customers :

Respect for Customers

Creating Value

Providing Value

2. Fair competition

Pursuit of Free Competition

Compliance with Laws and Regulations

3. Fair Transaction :

Equal Opportunity

Fair Transaction Procedure

Support and Aid for Business Partners

4 Basic Ethics for Employees

Basic Ethics

Completion of Duty

Self Development

Fairness in Performance

Avoidance of conflict with company interest

5 Corporate Responsibilities to employees

Respect for human dignity

Fair Treatment

Promoting Creativity

6 Responsibilities to society and country

Rational Business Development

Protection of stock holder interest


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Contribution to social development

Environmental Conservation

2.2 Training In LG Electronics

Employee training is a specialized function and is one of the fundamental

operative functions of Human Resource Management.

Acc to FLIPPO,

Training is the act of increasing the knowledge and skill of an employee for

doing a particular job.

It is a short-term educational process and utilizing a systematic and organized

procedure by which employees learn technical knowledge and skills for a

definite purpose. Training refers to the organizations efforts to improve an

individuals ability to perform a job or organizational role. It can be defined as

a learning experience in which it seeks a relatively permanent change in an

individual that would improve his ability to perform the job.

2.2.1 Difference between Training and Development

Training and development go hand in hand and are often used synonymously

but there is a difference between them.

Trainingis the process of learning a sequence of programsd behavior. It is an

application of knowledge. It gives people an awareness of the rules and

procedures to guide their behavior. It intends to improve their performance on

the current job and prepares them for an intended job.

Development is a related process. It covers not only those activities, which

improve job performance, but also those, which bring about growth of the


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personality. It helps individual in the progress towards maturity and

actualization of potential capabilities so that they can become not only good

employees but better human beings.

2.2.2 Principles Of Training

Motivation

Learning is enhanced when the learner is motivated. Learning experience must

be designed so learners can see how it will help in achieving the goals of the

organization. Effectiveness of training depends on motivation.

FeedbackTraining requires feedback. It is required so the trainee can correct his

mistakes. Only getting information about how he is doing to achieve goals, he

can correct the deviations.

Reinforcement

The principle of reinforcement tells the behaviors that are positively reinforced

are encouraged and sustained. It increases the likelihood that a learned

behavior well be repeated.

Practice

Practice increases a trainees performance. When the trainees practice actually,

they gain confidence and are less likely to make errors or to forget what they

have learned.

Individual Differences

Individual training is costly. Group training is advantageous to the

organization. Individuals vary in intelligence and aptitude from person to

person. Training must be geared to the intelligence and aptitude of individual

trainee.


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2.2.3 Objectives Of Training

To increase productivity

An instructor can help employees increase their level of performance on their

assignment. Increase in human performance leads to increase in the operational

productivity and also the increase in the profit of the company.

To improve quality

Better-trained executives are less likely to make operational mistakes. It can be

in relationship to the company or in reference to the intangible organizational

employment atmosphere.

To help a company fulfill its future personnel needsThe organizations having good internal training and development programs

will have to make less changes and adjustments. When the need arises,

vacancies can be easily staffed.

To improve organizational climate

An endless chain of positive reactions result from a well planned training

programs.

To improve health and safety

Proper training can prevent industrial accidents. A safer atmosphere leads to

more stable attitudes on part of the employees.

Obsolescence prevention

Training and development programs foster the initiative and creativity of

employees and can help prevent manpower obsolescence.

Personal growth

Employees on a personal basis gain individually from their exposure to

educational expressions. Training programs give them wider awareness and

skills.


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2.2.4 Requirement Of Training

After employees have been selected for various positions in an organization,

training them for the specific tasks to which they have been assigned assumes

great importance. It is true in many organizations that before an employee is

fitted into a harmonious working relationship with other employees, he/she is

given an adequate training. Training is the act of increasing the knowledge and

skills of an employee for performing a particular job. The major outcome of

training is learning. A trainee learns new habits, refined skills and useful

knowledge during the training that helps him improve performance. Training

enables an employee to do his present job more efficiently and prepare himself

for a higher-level job.

To impart to the new entrants the basic knowledge and skills they need for

definite tasks.

To assist employees to function more effectively in their present positions by

exposing them to new concepts

To build a line of competent people and prepare them to occupy more

responsible positions.

To reduce the supervision time, wastage and spoilage of new material.

To reduce the defects and minimize the industrial accidents.

To ensure the economical output of the required quality.

To prevent obsolescence.

To promote individual and collective morale, responsibility and cooperative

attitudes etc.


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2.2.5 Types Of Training

Training is required for several purposes. Accordingly training programs may

be of the following types:

Orientation training: Induction or orientation training seeks to adjust newly

appointed employees to the work environment. Every new employee needs to

be made fully familiar with his job, his superiors and subordinates and with the

rules and regulations of the organization. Induction training creates self-

confidence in the employees. It is also knows as pre-job training. It is brief and

informative.

Job training: It refers to the training provided with a view to increase theknowledge and skills of an employee for performance on the job. Employees

may be taught the correct methods of handling equipment and machines used

in a job. Such training helps to reduce accidents, waste and inefficiency in the

performance of the job.

Safety training: Training provided to minimize accidents and damage to

machinery is known as safety training. It involves instruction in the use of

safety devices and in safety consciousness.

Promotional training: It involves training of existing employees to enable

them to perform higher-level jobs. Employees with potential are selected and

they are given training before their promotion, so that they do not find it

difficult to shoulder the higher responsibilities of the new positions to which

they are promoted.

Refresher training: When existing techniques become obsolete due to the

development of better techniques, employees have to be trained in the use of

new methods and techniques. With the passage of time employee may forget

some of the methods of doing work. Refresher training is designed to revive


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and refresh the knowledge and to update the skills of the existing employees.

Short-term refresher courses have become popular on account of rapid changes

in technology and work methods. Refresher or re-training programs are

conducted to avoid obsolescence of knowledge and skills.

Remedial training: Such training is arranged to overcome the shortcoming in

the behaviour and performance of old employees. Some of the experienced

employees might have picked up appropriate methods and styles of working.

Such employees are identified and correct work methods and procedures are

taught to them. Psychological experts should conduct remedial training.

2.2.6 Methods Of Training

2.2.6.1 On-the-job techniques

On the job techniques enables managers to practice management skills, make

mistakes and learn from their mistakes under the guidance of an experienced,

competent manager. Some of the methods are as:

Job Rotation: It is also referred to as cross straining. It involves placing an

employee on different jobs for periods of time ranging from a few hours to

several weeks. At lower job levels, it normally consumes a short period, such

as few hours or one or two days. At higher job levels, it may consume much

larger periods because staff trainees may be learning complex functions and

responsibilities. Job rotation for managers usually involves temporary

assignments that may range from several months to one or more years in

various departments, plants and offices. Job rotation for trainees involves

several short-term assignments, that touch a variety of skills and gives the

trainees a greater understanding of how various work areas function. For

middle and upper level management, it serves a slightly different function. At

this stage, it involves lateral promotions, which last for one or more years. It


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The various off- the- job-training programs are as follows:

Vestibule training: Herein, actual work conditions are simulated in a

classroom. Material, files and equipment those are used in actual job

performance are also used in training. This type of training is commonly used

for training personnel for clerical and semiskilled jobs. The duration of this

training ranges from few days to a few weeks. Theory can be related to practice

in this method.

Role playing:It is defined as a method of human interaction that involves

realistic behaviour in imaginary situations. This method involves action doing

and practice. The participants play the role of certain characters, such asproduction manager, HR manager, foreman, executives etc. This method is

mostly used for developing interpersonal interactions and relations.

Lecture method:The lecture is a traditional and direct method of instruction.

The instruction organizes the material and gives it to the group of trainees in

the form of a talk. To be effective, the lecture must motivate and create interest

among the trainees. An advantage of this method is that it is direct and can be

used for a large group of trainees.

Conference or discussion:It is a method in training the clerical, professional

and supervisory personnel. It involves a group of people who pose ideas,

examine and share facts and data, test assumptions and draw conclusions, all of

which contribute to the improvement of job performance. It has an advantage

that it involves two-way communication and hence feedback is provided. The

participants feel free to speak in small groups. Success depends upon the

leadership qualities of the person who leads the group.

Programsd instruction: This method has become popular in recent years. The

subject matter to be learned is presented in a series of carefully planned


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sequential units. These units are arranged from simple to mere complex levels

of instructions. The trainee goes through these units by answering questions or

filling the blanks. This method is expensive and time consuming.

2.3 Training Programs In LGEIL

LGEIL follows the philosophy to establish and build a strong performance

driven culture with greater accountability and responsibility at all levels. To

that extent the Company views capability as a combination of the right people

in the right jobs, supported by the right processes, systems, structure andmetrics.

The Company organizes various training and development programs, both in

house and at other places in order to enhance the skills and efficiency of its

employees. These training and development programs are conducted at various

levels i.e. for executives and for officers etc.

2.3.1 Training in LG

LG provides training to all its employees as per the policy of the organization.

The Training Procedure Identification Of Needs

Management Staff

The Performance Appraisal form of the organization has a section in which the

training and development needs are filed up. The person whom the concerned

employee is reporting fills the Performance Appraisal form annually. Such

person may be a branch head or department head. Identification of training

need is done at the Executive Office (EO) level for the managers through the


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Performance Appraisal forms annually and the records are maintained at the

Executive Office. Managers are nominated for the various training courses by

the Executives Office. Managers may also be nominated to certain training

programs from the branch if the subjects covered are found to be of interest or

if they offer a learning opportunity in some emerging areas of knowledge.

Training needs for the department through their Performance Appraisal forms

identifies the officers, which are filled in by the department head. The\

Performance Appraisal forms thus give the emerging training needs. This

exercise is carried out annually.

Staff

Training needs for managers and executives are identified based on:

1. Companys strategy and policy.

2. Organizational Thrust Areas.

3.New Emerging Areas.

This together gives the consolidated system of needs that is prepared by the

Personnel Officer and approved by the Department Head.

2.3.2 Preparation Of Training Plan

On the basis of identified training needs, the annual training calendar is

prepared by the Personnel officer and approved by the Personnel Head. Annual

Training Budget is prepared by Branch Personnel Head and is approved by

Executive Office. This gives the final list of training activities in a particular

year. It is attempted to carry out all the programs to fulfill the identified needs.

The Head of the Personnel Department monitors the actual training conducted

vis- vis the identified training needs on a monthly basis.


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Imparting Of Training

Actual training is imparted with the help of in-house and outside agencies. The

selection of these agencies is done on the basis of reputation; programs offered

by them, past experience and feedback received from the earlier participants.

Training is also imparted by nominating the concerned employee for an

external training programs. All records of the training are maintained at branch

as per\ Record of Training in the Personnel folder and the same is intimated to

the Executive Office Personnel through the Monthly Personnel Report.

Feedback

A feedback is taken from the participants through a questionnaire on the

programs and their impressions in order to further improve upon the same.\

There are three such questionnaires available and one of these is used

depending upon the nature of the training programs and the level of

participants. Also, a person from the personnel department sits through the

final session of the programs and takes the verbal feedback about the programs.

2.3.3 Induction Training

Staff/ Officers/ Managers

This is carried out as the very first step for any new entrant into the branch at

the Staff/ Officer/ Manager Level.

The department prepares a schedule for the employee as per which he is

required to spend specific time in each department. During such period, he is

reporting to the respective department head. The objective of the induction

programs is to familiarize the participant to the function of different

department. The copies of the same are sent to the General Manager and all

concerned. At the end of the induction, the trainee has to submit a report to the

Personnel Department.


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1. Programs content: Topics being covered during the training.

2. Methodology adopted.

3. Program faculty.

4. Personnel to be covered.

5. Training methodology.

6. Training effectiveness criteria and scale.

7. The training effectiveness is measured by measurement of the achievement

of the objectives.

A person gets nominated for the training program in the following two ways:

Training programs flowing from training needs:

The programs are divided into three broad categories:

1. Functional

2. Behavioral

3. General/ Omnibus programs

Functional:The outcome of the training is measured by comparing the data

pre-training and post-training. A scale is developed for measuring the

effectiveness of training based on the % achievement of the objectives.

Behavioral: The effectiveness of the training of this nature is measured

annually. This is seen through the training need identification for the coming

year for the employee. If the training need is repeated there, then the training

provided is taken as ineffective. If the training need is repeated but with focus

on a part of the need, then the training is partially effective.

General:These are the training needs flowing directly from the organizational

needs. Examples of these can be ISO 9000 training, ISO 14000 training and


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any awareness training. These are omnibus training programs, which are run

for a large number of employees.

The Effectiveness Of Training Is Measured By:

1. Achievement of those organizational objectives within the time lines.

2.Number of audit issues raised on the areas covered in the training.

3. Any other such thing as defined in the training brochure.

The effectiveness of the outside training programs is measured on the same line

as above. However, no detailed brochure is prepared for the same. The

measurement criterion for the programs is defined in the beginning of the

programs and effectiveness measured against the same. A consolidated

effectiveness report of the training programs is prepared at the end of the year.

The programs that are found to be ineffective are reworked.

Training programs for testing out the training

Also there are training programs, which are not flowing directly from the

training needs measurement of effectiveness of the training is not needed to be

measured.

Problems Of The Organization In Respect Of Training Needs

The training department of the Company is confronted with the following

problems:

1. There is no regular training schedule for the officers and staff.

2. The training given to the employees is not standardized.

3.No work-study has been done on the requirement of training.

4.No in-house training programs have been conducted.


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show room display items. They had to be ordered and were not very

visible. After the initial outburst of distribution expansion, LG is

proceeding cautiously into new zones.

8. Mr. Pradeep Tognatta strongly believed in Philip Kotlers ADIACS

Theory of selling Attraction, Desire, Interest, Attention, Conviction and

Selling.

9. Mr. Tognatta stated that the target audiences for AC s are those who

wish to upgrade from room coolers to ACs. Right now, the penetration is

less than 2 percent. Half the country doesnt have electricity, and the

other half experiences power shortage.

10.The company precisely understands that AC satisfaction depends on

service, to some extent. So its no point selling a product where the

service back up is inadequate. If an AC breaks down in the middle of the

night, the consumer wants it fixed immediately. This is why LG has the

Happy Call system. As soon as the dealer concludes a sale, he calls

control cell, which pages the field staff. After three days the control cell

calls back the customer to see if he/she is satisfied.

For 15 days, at the peak of the season, all dealers provide service till 2.30 at

night. All the SSDs are trained intensively by LG, and every technician is

given world-class instructions on how to handle complaints. Some are even

sent to Korea for a stint at the global headquarters, hence involving them

closely with a corporation they can proud of.

LGs credo is clear: if the company is professional, everyone associated

with the brand must project the same image. All those measures add up to

create customer satisfaction. And this spells consumer pull. This gives LG

enormous clout with the trade.


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Corporate Identity - It is what helps organization, or a part of it; feel that it

truly exists and that it is a coherent and unique being, with a history and a place

of its own, different from others.

Identity Vs Change

Brand image is on the receivers side. Image research focuses on the way in

which certain groups perceive a product, a brand etc. The image refers to the

way in which these groups decode all of the signals emanating from the

product, services and communication covered by the brand. Identity is on the

senders side. The purpose in this case is to specify the brands meaning, aim

and self-image. Image is both the result and interpretation thereof. In terms of

brand management identity precedes image. Before projecting an image to the

public, we must know exactly what we want to project.

Brand Architecture

It addresses the crucial issue of brand product relationship. LG follows the

strategy of umbrella brand. This strategy suggests that all the operations of the

company across the globe use a single brand name. It does have various

product lines but all of them use a single brand name. The main advantage of

umbrella strategy is the capitalization of one single name and economies of

scale on an international level. LG follows this strategy and has been quite

successful in its venture across the globe. It also permits considerable savings

when they enter new strategic markets. An umbrella brand strategy allows the

core brand to be nurtured by association with products with which it was not

previously associated. Also umbrella brands impose very few constraints. Each

division has its own communications to increase its market share and to

emphasize the specific qualities of its own brand. A note of caution here is that


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only companies that are able to launch superior new products can use the

umbrella strategy. In each new market, the product will have to succeed on its

own merits, despite its brand name. LG has been extremely successful in not

only launching new product categories in new markets but also in a very short

time span become leaders in the markets it ventures into.

Brand Extension

Brand extension involves entering into new product markets using a single

brand name. LG as a strategic intent announced itself as a company that

follows umbrella brand strategy hence it opts for brand extension. The only

note of caution in Brand extension is that the communication of the product

must be integrated across the various product lines, failing to do so would

almost definitely result in the dilution of the brand. LG has stated its focus

across products has a health focus. This ensures that the brand does not get

diluted and infact assists in creating a strong brand awareness and goodwill.

This ensures that the brand image across products and various segments of

products and consumers remains positive.

Multi Brand Portfolio

This focuses on the companies that would like to focus on developing multiple

brands. The chapter provides insights on the company and strategies that

address the core issues of developing and sustaining multiple brands.

Decline, ageing and revitalization

Brand entropy and degeneracy occur all so frequently in the current marketing

scenario where and competition is intense and companies in order to grow

follow high growth and expansion strategy. The brand value gets diluted and

this leads to decrease in sales in the long run. In the present business


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environment a lot of focus is given to the intangible assets of the company in

deciding the sale value of the company. In such times if the brand is declining

or aging which happens in its normal course of life will lead to significant

financial loss to the company. To ensure that the brand does not degenerate

strategies are chalked out in this. It also states tips as to how to identify

whether a given brand is degenerating or not.

Making brands go global

World is turning into a global village. Given this latest evolution in the

business scenario where the massive revolution in the telecom and

transportation sector has left the companies coming in close proximity of each

other a lot of companies are contemplating opportunities to go global. LG

already is a strong global brand. This gives insight into the various aspects and

resources that are essential for a company to contemplate building a global

brand.

Brand Valuation

This chapter provides processes in valuing a brand. Brand is considered to be

an intangible asset of the company however in recent times the companies have

become sensitive to the fact that this asset actually happens to be a strong force

in the balance sheet and hence various methods of valuing a brand are being

evolved to derive the fair value of the company. This chapter states some of the

methods that are currently in use and also the problems that the company could

encounter while valuing its brand.

Advertising Management by M.V.Kulkarni 4th Edition 2003 published by

Everest Publishing. The advertising management book has totally dedicated to


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the concept of brand management. It has given the steps of brand management,

which have been included in the introduction.

2.4.2 Strategic Brand Management Process by Roland Berger - Strategic

Brand Development Group Roland Berger has published an article that

provides a 5-step model for Strategic Brand Management. Berger has stated the

five main steps to be considered while stating the model for Brand

management the points are:

LG Air conditioners Redefining Satisfaction Strategy

This article was published at a time when LG had just about found a firmfoothold in this lucrative market of India and was at a juncture of making

extremely quick inroads into this market. The author very appropriately in a

concise form states the core of LG Air conditioners strategic focus. The article

starts of with this powerful statement by the author Health focus and power of

reach. These two lines are sufficient to aptly express the strategic intent of the

company

Position the product on the health platform by claiming that the company

is very health conscious and the product is for those consumers who

want the air blowing into their living space to be germ and bacteria free

air.

LGs focus on the aggressive penetration strategy to ensure that the

product reach is extensive.

The focus on the home segment.

The article highlights how the LGs strategists focused on expanding the

AC market than wresting share away from the other players.


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1. The companys insight into the fact that being a multi products company

has turned out to be an advantage. Aware of the fact that an ACs only

company would be seen as the expert, LG laid greate r emphasis on the

product differentiation.

2. It lucidly takes us through the incubation of the company into this

market to the leadership position that it has gained within a short span of

3 years.

3. It further highlights the core competitive advantage that LG had over

Carrier that leveraged the company to the helm of the industry, i.e. its

extremely strong distribution network. LG started the retailing of AC in

the Indian market.

4. LG has a strong retailer network of more than 2500 retailers. Intensive

training is imparted to the sales personnel of these dealer outlets on the

product knowledge and the appropriate way of delivering a convincing

sales pitch.

After the initial burst of distribution expansion the company is now proceeding

cautiously into the new zones. This article also highlights the fact that LG is

quite aware of the needs of the consumer by understanding the fact that AC

satisfaction depends on service, to some extent. So its no point selling a

product where the service back-up is inadequate. For this LG has set up the

Happy Call system that is a 24 -hour call line for service and maintenance

related complaint handling system. This facility also ensures that the customers

have been getting proper service delivery in case of any fault immediately the

service staff is asked to pay a visit to the customer. For 15 days at the peak of

the season, all dealers provide service till 2.30 am. To motivate the technicians

few are even sent to Korea for a stint at the global headquarters, thus involving


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them closely with a corporation they can be proud of.

LG NO 1 Cover Feature, Business India

This article that recently appeared in Business India provides a birds eye view

of the functioning of LG Electronics India operations in the reign of Mr.

Kwang-ro Kim, MD of LG Electronics India Ltd. Over the 7 years of it s

operations in India LG has scaled many a mile. Its been consistently becoming

a market leader in all its various product lines. It touched the astronomical sales

figure of 4500 Crores in 2003. LG has the biggest share of the pie in quite a

few products that have been launched under its single brand name.

Other significant excerpts of this article are:

1. LGs achievement in the first quarter of this year i.e. (January-April 2004)

Vis a Vis the same quarter last year has amplified the Indian managements

positive attitude. During this quarter, LG logged 38% growth in consumer

electronics 51% growth in home appliances 69% growth in its IT business.

Overall sales grew 53% to cross Rs 1000 Crores.

2. The article gave a brief insight into the principal values that drive Kim MD

LG Electronics India. He follows to fundamental principals they are self

control and rational thinking. All wars, even the recent Iraq one, are not

won after the air strikes are over but when the army takes on the enemy on

the ground, he says. This is what Kim believed even before he waged war

for the Korean company in the Indian market. He calls his aggressive

market play feet marketing, which he feels is the key factor that made LG

a formidable force in the consumer durables.

3. Kim has also taken a clue from Jim Clemmer, the Canadian management

expert who has described passion as a burning commitment to a cause.

The article did shed some light on LG expectation and vision in India


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making its intentions about getting the latest technology innovations to

India clear.

4. LG rural focus: Innovation in product offerings and building strong brand

equity are one part of the success story. But the real one that has driven

LGs numbers to heights is the rural mantra. For LG, rural markets include

all other cities excluding metros and the A+ - class cities. In its marketing

framework LG caters to both urban and rural populations. The Indian rural

market with its large size and demand base, offers great opportunities to

marketers. The semi-urban and rural contribution to turnover is 65%.

5. In addition, its association with the health platform and cricket helped it in

wrest a strong position in the mind space of consumers in rural India.

6. LG Marketing Force LG has appointed 4 marketing managers (north, south,

east and west) 40 marketing managers in the branches. LG covers India

with 72 regional offices, 61 central area offices, and 43 branches.

Additionally it has over 1123 regional area offices at the district level.

AdEx India Analysis

The article states numbers based upon their independent research with regards

to the print advertisement spends by the major companies in and the general

trends of advertisement spends in this country. Some important excerpts that

are worth a mention are: Companies have reduced their spend in Air

conditioner advertising as compared to the year 2000. A drop of 12% has been

observed as compared to the year 2000. The research as done over the past

three years i.e. (2000-2003) indicates that the spend peaks in the 2nd quarter of

the year which is when the summer is at its peak and the build up for the same

starts from the 1st quarter. The least spend is observed in the 3rd quarter. An

interesting pattern can be observed with regards to retail advertising


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(advertisements released directly by dealers and not by the manufacturer). The

research indicates :

1. The share of retail advertising of the Air-conditioners category has

always been higher compared to all retail advertising over the past few

years.

2. The share of spend in retail advertising is consistently rising. In the year

2003 it stands at 7%. This trend is observed when the share of all retail

advertising has been more or less stagnant, with a share hovering around

the 2 % mark.

3. Top 10 advertisers in this category contribute 90% of the advertising

expenditure.

4. LG electronics has been the Top advertiser in this category in 2000 and

2003.


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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Objectives of study

* To find out the dealer satisfaction with the consideration of Customer

value.

* To determine the role of media in marketing awareness of existing and

its latest innovative technology.

* To identify the factor and features by which a consumer influenced to

buy the LG products.

* To find out the services provided by the LG is appropriate or not.

The objective was to find out the dealer satisfaction of LG products, role of

media in marketing awareness of LG products from dealers and the services

they are getting from LG so that if any problems then can be resolved to

increase the sale. The first & foremost step in any research work is to identify

the problems or objectives on which the researcher has to work on. There are

two types of objectives met in this study, as explained below:

Major Objective

To analyze the existing training practices, its effectiveness and recommend

measures to improve the training practices in the organization.


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Minor Objective

To study the frequency of training, training methods and their effects on the

trainees and recommend certain measures for improvement.

To study the present practices enforced in respect of training at the

personnel department and recommend any changes if necessary.

To examine present training strategies.

To study Impact of training on productivity.

To study about the requirements of further training needs.

To study effectiveness of training program.

To study and take feedback and analyze the level of satisfaction amongst

the employees in respect of training activities and suggest alternatives.

3.2 SCOPE OF STUDY

1. This Study will help LG Electronics India to know about the position of

their brands as well as their competitors in the respective territory or

localities.

2. This study will help LG Electronics India to know their customers and

their needs more effectively.

3. This Study will help LG Electronics India to know the feedback given

by the consumers for their services given to them.

4. To study LGs share in Indian electronic market.


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SAMPLE DESIGN:

SAMPLE SIZE: 100 customers were interviewed for collecting the data.

SAMPLE UNIT: The area covered was Delhi and NCR (Noida and

Ghaziabad).

TIME FRAME: The research has been done in 4 weeks time.

3.4 LIMITATIONS OF THE STUDY

1. There was Paucity of time2. Some respondents were not willing to give appointment due to their busy

schedule.

3. Due to very large size of the population, only a selected sample of

customer could be contacted.

4. Due to time constraint and other imperative work load during the time

period, it could not be made possible to explore more area of concern

pertaining to study.

5. Also impossible for company to prove information is confidential.

6. Due to fast pace of life, some customers were not able to do justification

to the questionnaire.

7. Personal biases might have come while answer the questionnaire, which

were unavoidable.

8. Although all effort were taken to make the result of the work as accurate

as possible.

The sample size taken by us for the study may not be a true representative of

the entire sector defined for the study.


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2) While purchasing consumer durables which parameter influences you?

Parameters No. of respondents %age of respondents

Price 11 22%

Product features 17 34%

Brand 12 24%

Services 9 18%

Durability 1 2%

Table no. 2Parameters that influence to buy consumer durables.

Figure no. 2Parameters that influences to buy consumer durables

Analysis and Interpretation: As can be inferred from the above pie-chart

there are different parameters that the consumer may consider while purchasing

the consumer durables.22% says price, 34% says product feature, 24% says

brand, 18% says services,2% says its durability.

22%

34%

24%

18%

2%

Parameters influencing to buy consumer durabes

Price

Product features

Brand

Services

Durability


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3) Which product of LG are you using?

Products No. of respondents %age of respondents

Television 17 34%

Refrigerator 10 20%

Microwave 6 12%

Air-Conditioner 6 12%

Washing Machine 4 8%

Other 7 14%

Table no. 3Different products of LG

Figure no. 3Different products of LG.


there are different products which are offered by LG electronics and people are

using them acoording to their preference.As they use the LG products for

different purposes so there is different choices.

34%

0%20%

12%

12%

8%

14%

People using different LG products

Television

Refrigerator

Microwave

Air-Conditioner

Washing Machine

Other


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4) How frequently you change your consumer durables?

Options No. of respondents % age of respondents

1-3 years 10 20%

3-5 years 9 18%

5-10 years 17 34%

More than 10 years 14 28%

Table no. 4Frequency of changing the consumer durables..

Figure no. 4Frequency of changing the consumer durables.


shows the frequency of changing the consumer durables by the consumer.20%

says 1-3 years,18% says 3-5years,34% says 5-10years,28% says more than

10years.

20%

18%

34%

28%

Frequency of changing the consumer durables

1-3 years

3-5 years

5-10 years

More than 10 years


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6) Do you think the product of this brand is value for money?

Option No. of respondents %age of respondents

Yes of course 23 46%

Little bit 15 30%

Not really 6 12%

Not at all 6 12%

Table no.6Products of this brand are value for money

Figure no. 6Products of this brand are value for money


interpret that how the products of LG electronics are value for money to the

different types of consumers.46% says yes,30% says little bit, 12% not

really,125 says not at all.

46%

30%

12%

12%

The product of this brand is value for money

Yes of couse

Little bit

Not really

Not at all


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8) Did you ever made call to customer cell for any query?

Option No. of respondents % age of respondents

Yes 38 76%

No 12 24%

Table no. 8 How many consumer made call to customer cell for queries.

Figure no. 8How many consumer made call to customer cell for queries.


interpret that how much consumers of consumer durables made call to the

customer cell for any queries about the product or the brand information.76%

says its yes,24% says its no.

76%

24%

Made call to customer cell for any query

Yes

No


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9) Did the service executive serve you better?


Yes 35 70%

No 15 30%

Table no. 9: No. of people satisfy with the service executive

Figure no 9: No. of people satisfy with the service executive.


shows that how many people are satisfy with the services offered by the service

executives.70% says yes while 30% says no.

70%

30%

The service executive serve's better

Yes

No


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10) The service executives respond immediately after the call for service?


Yes 35 70%

No 15 30%

Table no. 10: Response from service executive after the call for service

Figure no. 10:Response from service executive after the call for service


interpret at the response of service executive immediately after the call for

service by the consumer.70% says yes while 30% says no.

70%

30%

Service executive responds immediately after the call for service

Yes

No


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11) Did the supervisor of the LG product educate you about the details of the

product you are buying?


Yes 36 72%

No 14 28%

Table no.11: The supervisor educate the consumer about the product

Figure no. 11: The supervisor educate the consumer about the product

Analysis and Interpretation: As can be inferred from the above pie-chartshows that the did supervisor of LG product educate the consumer in detail

about the product that the consumer is buying.72% says yes while 28% says

no.

72%

28%

The supervisor educate the consumer about the product

Yes

No


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12) Do you prefer to buy other brand instead of LG?


Yes 36 72%

No 14 28%

Table no. 12: no. of people ready to buy another brand instead of LG.

Figure no.12: No. of people ready to buy another brand instead of LG.


shows that how many people are ready to buy another brand of product instead

of LG.72% says yes while 28% says no.

72%

28%

Prefer to buy other brand instead of LG

Yes

No


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CHAPTER - 5

CONCLUSION

Result of the Study

1. Coming to home from a tiring job and then to open the wardrobe just too

bad smelling dirty clothes waiting to receive the delicacies of your hand can

easily draw tears from your eyes, but now an easy solution available in

almost all households is the presence of LG refrigerator.

2. My study found that, the dealers are somewhat satisfied with the LG

Company but some retailers are not satisfied by the company neither in the

way of credit facility nor by the distribution system of LG.

3. About the LG company I found that LG having a good position in the

market in terms of pricing but lacking badly in terms of its retailer

satisfaction.

4. Customer gets to know more by the television and they are influenced tobuy new products by the unique products that are newly come to the

market.

5. My study also found that there are various factor influencing customer in

buying decision and the most influencing factor is brand image and

advertisement and other factors play a secondary role in buying decision.


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CHAPTER6

SUGGESTIONS AND RECOMMENDATIONS

1. Company should make advertisement of LG products aggressively in the

way of hoardings which increase the more visualizes customer.

2. Company should provide credit facility to the dealer in a better way by

which they can increase their sale

3. Dealers should consider the demand of people time to time so that they

come to know what people want in a particularperiod of time

4. LG needs to mend and maintain its service network and adopt a good

pricing strategy.

5. Convert improved brand image and awareness in to market share.

6. Effective localization of product offerings for growth markets like India,

Brazil, and China.

7. It should focus on wide range of products to serve all categories and a

strong focus on technology and quality.


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APPENDIX

Dear Sir/Madam

I Naina Nigam student of Sri Guru Tegh Bahadur Institute Of Management

And Information Technology, New Delhi are conducting a survey on The

study of customer satisfaction towards after sales service of LG electronics. I

seek your cooperation for providing following relevant information for my

research.

Name -

Age

Gender-

Occupation -

Annual Income-

1) Have you ever purchased LG products?

a) Yes b) No

2) While purchasing consumer durable which parameter influence you?

a) Price b) Product features

c) Brand d) Services e) Durability

3) Which products of LG are you using?

a) Television b) Refrigerator c) Microwave

d) Air-conditioner e) Washing machine f) If other

Please specify _______________________________________________


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4) How frequently you change your consumer durable?

a) 1-3 years b) 3-5 years

c) 5-10 years d) more than 10 years

5) How is your experience with this brand?

a) Excellent b) Very good c) Good

e) Fair f) Poor

6) Do you think the product of this brand is value for money?

a) Yes of course b) Little bit

c) Not really d) Not at all

7) How do you see the compliant handling of the brand?

a) Excellent b) Very good c) Good

e) Fair f) Poor

8) Did you ever made call to customer cell for any query?

a) Yes b) No

8) Did the service executive serve you better?

a) Yes b) No

9) The service executive responds immediately after your call for service?

a) Yes b) No


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10) Did the supervisor of the LG product educate you about the details of the

product you are buying?

a) Yes b) No

11) Do you prefer to buy other brand instead of LG?

a) Yes b) No

12) What are your suggestions for LG electronics to increase the sales?

Signature


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BIBLIOGRAPHY

Books

1. Kotlar, Philip Marketing management, Kotlar publications, New York,

5thedition, 2007

2. Kothari, C.R Research methodology, Palgrave Macmillan, U.S.A. , 2nd

edition, 2005.

Websites

1. http://www.lge.com/about/sustainability/management_system.jsp

2. http://www.lg.net/about/history/history01.jsp

3. http://www.lginnotek.com/ethics/english/Justice/JusticeAct/LGrule/LGr

ule_main.htm

4. http://www.lg.com/in/corporate-information/overview/strategic-alliances

5. http://www.lg.com/in/corporate-information/overview/global-operations

6. http://www.business-standard.com/article/companies/lg-india-aims-20-

revenue-jump-in-2013-113012800189_1.html

7. http://www.cio.in/view-top/lg%E2%80%99s-intelligent-enterprise8. http://en.wikipedia.org/wiki/LG Electronics
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