Sunil Bajaj Project

7/28/2019 Sunil Bajaj Project

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INTRODUCTION

The essence of modern Marketing concept is that all elements of business should be

geared towards the satisfaction of consumers. This requires a thorough understanding of

consumer behaviour and buying motivations. Without such insights Marketers will fail to

segment markets effectively and design strategies for an effective penetration into

defined market segments. The adaptation of the consumer focus is in fact the real

difference between the traditional concept of selling and the modern concept of

Marketing Management to suitably react to the given wants of the consumers in passive

way. They must play a more active role in anticipating consumers needs and wants in

shaping their desires and aspirations and in adding them in the solutions of their

numerous day to day problems .Such a Marketing is way of business and dictates every

activity operation and policy of affirm with customer satisfaction at its root, It does not

mean that business is benevolent and profits are secondary to consumer satisfaction. It

however does mean the guaranteed root to profits is through consumer satisfaction.

Recognizing the Importance of consumer understanding Research into consumer

motivation, cognition, beliefs, attitudes, learning, perception, emotions and opinions had

made tremendous strides during the last decade particularly in competitive marketing

environments. Concepts from various Behavioural and social sciences like

econonmics,Psychology,sociology and anthropology and their related sub disciplines

have all been deployed to develop insights into the How and Why of Consumer

behaviour. A wide variety of sophisticated researches took and techniques from both

quantitative behavioural areas have been serviced into this understanding. Though the job

is in no scene complete nor it will ever be, yet the progress made so far is significant and

had helped in uncovering at least some important aspects of this complex human

behaviour.

Although factors like price, quality, service etc. Are different and drive customers

decision of selecting one particular brand. The success or failure of those concerned

player in a field of identical products can be attributed to Marketing. So talking about


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Marketing is not that easy as it appears literally as a subject because the core concept of

Marketing lies in its practical application. Thats why it is rightly said that it takes only a

semester to learn Marketing but a Lifetime to master it

So this project entitled Consumer Behaviour towards the LG Air Conditioners is

an attempt to understand some of the attributes of consumer behaviour and its Marketing

implication towards a particular brand of a particular product.


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COMPANY PROFILE

THE FOUNDATION OF LG:

LG was established in 1947 as Koreas first chemical company ,also becoming the

nations first electronics company with its expansion into home appliances in 1958.The

new corporate was launched including the change of the group name from LUCKY-

GOLDSTAR to LG in 1995.

BUSINESS FIELDS:

The wide variety of activities that LG conducts are coordinated within three highly

focused business sectors: Chemicals, electronics and telecommunication .each sector has

undergone systematic changes, with improved financial compositions, restructured

business portfolios and realigned equity investment structure

VISION OF LG: GLOBAL TOP 3 BY 2010

LG electronics pursues its 21st century vision of becoming a true global digital leader

who can make its customers world wide happy through its innovative digital products

and its services LG electronics sets its mid term and long term vision anew to rank among

the top 3 electronics, information and telecommunication firms in the world by 2010.

GROWTH STRATEGY:

FAST GROWTH: It is the result of strategies designed to expand the market size and

earnings quickly, in the process improving the growth rate in terms of monetary value

rather than quantity.


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FAST INNOVATION:

It involves setting extremely high innovation goals and securing a competitive edge,

aiming foe a target of 30% more than what our competitors can do. Fast Innovation also

means 30 % more sales and improvement in our market share, new product development

and unveiling these 30 % faster, technology development and establishment of corporate

value 3 years ahead of competitors.

CORE CAPABILITIES:

PRODUCT LEADERSHIP:

It refers to the abilities to develop creative, premium

products through specialized new technologies.

MARKET LEADERSHIP:

It refers to the ability to achieve the LG brand is no. 1

.Goal backed by its formidable market presence worldwide.

PEOPLE LEADERSHIP:

It refers to the talented people who perform excellently by

internalizing and practicing innovations.

CORPAORATE CULTURE:

Though a company implements perfect management

strategies and boasts of outstanding and talented people, it should have an appropriate

corporate culture to unleash the power of these capabilities.

NO EXCUSES:

We foster a corporate culture whereby we suggest an alternative before

saying NO and aggressively work to words fulfilling our goal.

WE NOT I:

We pursue a corporate culture whereby we embrace a strong teamwork.

FUN WORKPLACE:

We create a workplace where individuals creativity and freedom

are respected and working is made fun.


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Comparison of LG HEALTHZONE Performance

Fiscal year of LG starts from 1st Jan and ends on 31st Dec

Year 2006(in $ M) Year 2005(in $ M) Change (in %)

Operating revenues 1803.8 1740.9 3.6

EBIT 721.3 664.3 8.6

Net Income 101.3 89.5 13.2

EPS 0.28 0.26 7.7

Capital Expenditure 309.7 207.8 49

Cash Provided by

operating activities

588.1 404.7 45.3

Free Cash Flow 443.3 267.6 65.7


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LG IN INDIA

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). The trend of beating industry norms started with the fastest

ever-nationwide launch by LG in a period of 4 and months with the commencement of

operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater

Noida, near Delhi, in 1998, with an investment of Rs 500 Cores. This facility

manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave

Ovens. During the year 2001, LG 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 beginning of 2003 will see roll out of the first locally

manufactured Direct Cool Refrigerator from the plant at Greater Noida.

Various studies have shown that the consumer is well informed on the health awareness

front. LG was one of the first companies who recognized the emerging change in

consumer needs and decided to differentiate their products on the basis of technology

which appealed to the consumer on the basis of health benefits. Its vision was to become

a 'Health Partner' for its consumers worldwide and therefore formulated its corporate

philosophy to make peoples' lives better, convenient and healthier. The CTV range

offered by LG has 'Golden Eye' technology, which senses the light levels in the room and

adjusts the picture to make it more comfortable for the eyes. The entire range of LG air-

conditioners have 'Health Air System', which not just cools, but keeps pollution out.

LG Electronics India is the fastest growing company in the consumer electronics, home

appliances and computer peripherals industry today. LG Electronics is continually

providing superior technology products & value for money to over 50 lakh households in

India.


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OBJECTIVES OF PROJECT

The buzzword sweeping the markets of the new millennium is the simple one i.e.

Downtrading. Marketers are pulling up bootstraps, jockstraps and what not, trying to

comprehend this new wave that is sweeping many a market today.

The consumer in the market place is waking up to the reality of the stupendous Choice

on offer on the shelves of her corner market or supermarket alike. For every product

category she craves, there are many alternatives to choose from .the marketer has cleverly

segmented the market in to the manufacturers definition of premium, popular and

discount.

This particular study has been structured on the basis of certain objectives, plannings

and proceedings. Some of the objectives are mentioned below:

To know which one is the largest selling air conditioner in residential sector.

To know which one is the most recalled brand in Rohtak city.

To know the present status of LG Health zone in Rohtak city.

To know the effective medium of advertisement this tends a person to buy a

particular brand.

To find out pre, point and post consumer behaviour before buying an air

conditioner.


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SIGNIFICANCE OF THE PROJECT

As all we know that significance of any project lies in its ability to bring out certain facts

which can be added in decision making regarding the marketing mix of a certain product

which again requires factual and unbiased information about existing and potential

market, their competitor strategy, about the consumers perception for their product and

those of substitutes.

The study that I undertook had the purpose to fulfill the above mentioned

requirements .The significance of the study can be mentioned as below.

To know the pre purchase, point purchase and post purchase behaviour of the

consumer.

To design effective sales promotion schemes to boost up sales

To devise strategies for better customer relation.

To devise effective strategies for LG to patch the weaknesses.

To enable LG to select the best channel of distribution to meet the needs of

customer.


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SCOPE OF THE STUDY

Its been the hot summer for the air conditioning industries. Fall in the prices of ACs and

a significant jump in the demand from the residential segment has sent the total selling in

upward direction.

So our study will provide enormous scope to capitalize in this emerging market.

However some of the scopes are mentioned below:

The study is considered highly useful in identifying the factors influencing the

brand preference of ACs

The study helps us to know the need of the in Rohtak city.

By knowing the preferences and needs effective marketing strategies can be

developed by LG to have a competitive edge.

The identifies the areas, which requires specific attention by the co. for

strengthening the market share.

This study can be used to identify and locate appropriate target markets and to

learn the targets media habit.

This study provides a guideline in certain policy decisions of LG.


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RESEARCH METHODOLOGY

Research methodology in a way is systematic representation of research or any other

problem. It is a written game plan for conducting research. It tends to describe the step

taken by researcher in studying the researchers in studying the research problem along

with a logical background.

It tends to describe the methodology for solution of the problem that has been taken for

the purpose of study. The chapter focuses in the methodology for the technique used for

the collection, classification & tabulation of the data. This plan throws light on the

research problem, the objective of study & limitation of the study. Therefore in order to

solve a problem it is necessary to design a research methodology for problem as the same

way differ from problem to problem.

DEFINITION:

Research methodology is a way to systematically solve a search problem. It is a

procedure, which is followed step by step to solve a particular research problem.


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TYPES OF RESEARCH

Basically there are 3 types of research

EXPLORATORY RESEARCH

To gain familiarity with a phenomenon or to achieve an insight in to it.

DESCRIPTIVE RESEARCH

To poetry accurately the characteristics of a particular individual, situation or a group.

DIAGONOSTIC RESEARCH

TYPES OF RESEARCH

EXPLORATORY DESCRIPTIVE DIAGONOSTIC


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To determine the frequency with which something occurs or with which it is associated

with something else.

MARKETING RESEARCH:

Marketing Research is defined as a function that links the consumer, public to the

markets through information used to identify and define Marketing opportunities and

problems; to generate, to define an enable marketing actions to monitor Marketing

performance and to improve the understanding of Marketing process. Marketing

Research specifies the information needed to address Marketing issues.

This research is based on the consumers and is an extension of Marketing Research .This

research is conducted with a view to understand prospective customers better and to

introduce and modify the products and services of LG Health zone.

Some of the activities in carrying this research are

To form the basis of planning the sales ,sales promotion and advertisements

To enable the marketers to identify the customers need in relation to the

product category and to develop potential markets.

To help the management to determine persuasive advertisement appeals and to

identify the appropriate media choices to reach selected targeted markets.

To determine the markets characteristics, potential markets and share of it

competitors.


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This research consists of four steps. They are as follows

Defining the problem and research objectives.

Developing the research plan.

Implementing the research plan.

Interpreting and reporting the findings.

The research undertaken in this project id descriptive, it tries to portray accurately the

characteristics of a particular situation, individual or a group.

Sets of systematic efforts were followed to achieve the objectives of the project.

DATA COLLECTION SOURCES AND METHODS

Two types of data were required for our consumer research

o Primary Data

o Secondary Data

Primary Data:

This is collected or developed by researchers from the field study or the field work. In

this project primary data and information was collected by a way of specifically designed

Questinnaires.After that many relevant information was collected through filling up of

questionnaires .This questionnaires contain 10 questions. Some of our questions were

specific having sufficient choices and others were open- ended ones. Information was

collected from existing and prospective customers. The motive was to know the views

,attitudes and others various aspects related to Air Conditioners .Besides this there were

demographic questions which revealed their profession and income group to which they

belong.


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Secondary Data:

This data was collected from existing sources or from those sources which were already

and organized and collected previously. For this study secondary data was collected from

newspapers, magazines, books, journals and from the website of LG .This secondary data

also include ideas and views of the officials of LG health zone.

SAMPLE PLAN:

For the collection of primary data we have taken the residential segment of Rohtak city.

Some other segments such as Government organizations, Private companies were

ignored. These have a highly educated population maintaining average life styles and

attitudes .That is why a random sample from various categories of professionals,

businessman , government officials , self employed persons ,housewives and students

were taken for this study .The sample size was 200 ,out of which 103 respondents had air

conditioners and 97 respondents were future prospects having no Air Conditioners.

FIELD PLAN:

After selection of the sample the next step was making a field plan. So groups of existing

Air Conditioner holders were spotted by moving from door to door .Apartments,

individual houses business premises etc. were covered during the data collection process.

The respondents were given questionnaires to fill it up. Same questionnaires were used

for both residents having Air Conditioners and those who does not had any Air

Conditioners .Data regarding the preference of brands which they actually own, reason of

choosing that particular brand, the best media of advertisement and all the likes were

collected .Some data regarding the technology, marketing strategies and channels were

collected from journals, brochures etc.


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FINDINGS AND ANALYSIS

For my survey I have taken 200 respondents out of these 120 respondents already have

Air Conditioners and 80 respondents are future customers for AC companies .This can be

graphically shown below.

Sample Surveyed

130

70 Respondents

having ACs

Respondents Not

having ACs

INCOME GROUP OF THE RESPONDENTS

(AC HOLDERS ONLY)

Less than Rs. 10,000 30

Rs. 10,000 to Rs. 15,000 35

Rs. 15,000 to Rs. 20,000 40

Rs. 20,000 and above 25


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The income group was divided into four parts, viz. less than Rs. 10,000, Rs. 10,000 to Rs.

15,000, Rs. 15,000 to Rs. 20,000, Rs. 20,000 and above.

Income Group

30

3525

40 Less Than Rs 10000

Rs 10000-Rs 15000

Rs 15000-Rs 20000

Rs 20000 and above

Marketing Implication:

This chart shows the percentage of difference in income of people is very nominal and it

has hardly affected the sales .This may be because of this reason that people are now

realizing that AC is a need to cool themselves in the hot climate of Rohtak city. So no

particular income group should be targeted .Consumers in Rohtak city have the potential

to buy irrespective of the income but the sense of need should be created in their mind.


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PROFESSION OF THE RESPONDENTS

(AC HOLDERS ONLY)

For the research four groups of people were chosen having different sources of livelihood

.Some of them were government service holders ,some were businessman ,some self

employed like doctors ,lawyers and consultants and the fourth group included all others

like students ,employees of private companies ,retired employees and housewives.

Govt. Service 25

Business 45

Self-Employed 40

Others 20


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Profession of Respondents

25

4540

20Govt. Service

Business

Self-employed

Others


As per the above diagram we find most of respondents constituting around 42.9% have

ACs are businessmen. It may be due to reason that they want their customer feel

comfortable at their premise and retain them for longer time in explaining the features of

the product they have. By having Air Conditioners they find a change to look of their

showrooms and it can be termed as the other reason for having ACs .This is mainly due

to reason that they are few in numbers and there is always a fluctuation in their income.

POPULARITY OF DIFFERENT BRANDS OF ACS

Brand 1st 2nd 3rd Total Weight

LG 40 31 24 200

Carrier 41 24 20 191


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Voltas 21 23 13 122

Samsung 13 23 15 100

Hitachi 6 5 17 45

Blue Star 6 13 8 52

Usha Sriram 1 2 2 9

Videocon 6 2 25 47

Godrej 3 6 .8 29

Whirlpool 1 2 0 7

For finding this popularity ranking our question was What are the brands of Air

Conditioners that are known to you? This was an open ended question. Three blank

spaces were given to answer the question. A1: the time of analysis the brand which was

filled in the first, second and third blank spaces were given 3, 2 and 1 as weight age

respectively. This was due to the reason that different respondents could write the same

brand in any of the three blank spaces given to them .So buy giving


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Most Popular Brand

200

191122

100

45

529 47

29 7

LG

CarrierVoltas

Samsung

Hitachi

Blue Star

Usha Sriram

Videocon

Godrej

Whirlpool

weightage to different blank spaces we can identify the most recalled brand and reach at a

valid conclusion.


Our chart shows that carrier is the most popular brand followed by LG. As LG has got a

variety of products in its stales and a single advertisement shows for a particular product

makes a positive impact on the other variety of products it has. Here the brand name

helps in gaining popularity for other varieties, so the advertisement cost per product

become very less.

MOST EFFECTIVE MEDIA OF ADVERTISEMENT

Newspaper/Magazine 20

Television 21


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Hoardings/Billboards 0

Friends/Relatives 42

Other Sources 20

In this category of the other sources we have include recommendation of engineers and

contractors ,selling done by direct marketing agents , employees of respective companies

and those customers who have made the decision of buying ACs after feeling the cool of

that particular brand in their offices.

Most Effective Media of communication

20

21

042

20 Newpaper/Magazine

Television

Hoardings/Billboards

Friends/Relatives

Other Sources

This chart shows the most effective media of communicating or advertisement for a

company dealing with Air Conditioners is the recommendation of friends and relatives

which affected around 42% of sales.



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Hoardings and billboards has hardly created any effect on sales but again it is important

to generate brand name and image .Though it has not made any direct impact on sales but

still its presence has its important in recalling a particular brand, Apart from

advertisements in televisions, newspapers and magazines more emphasis should be laid

on relationship building with the existing customer, as their recommendation makes the

highest number of sales.

MOST SELLING BRANDS OF ACS IN ROHTAK CITY

BRANDS In units In %

LG 23 20

Carrier 20 19

Voltas 15 14

Samsung 6 6

Videocon 2 2

National 2 2

Usha Sriram 1 1

Blue Star 6 6

Fedders Lioyd 1 1

Local Made 24 21

Imported 1 1

For the above findings a direct question was asked to the respondents. Thequestion was which brand AC do you have. The following graph depicts the findings.


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Brands of ACs people own

23%

20%

15%6%2%2%

1%6%1%

23%1%

LG

CarrierVoltas

Samsung

Videocon

National

Usha Sriram

Blue Star

Fedders Lioyd

Local Made

Imported


Local made brands hold the largest share because of its low cost .People finds local

brands available at half of the price of that of branded ones. And the human Psychology

is such that they are a bit hesitant to invest a big amount at a time. so they feel Worth in

making investments ill local brands.

LG entered the market in the last few years and established itself. LG has become a major

threat for the market leaders like Voltas and carrier because of its aggressive marketing

strategies and highlighting on the health front.

PERFORMANCE OF MAJOR BRANDS OF ACS

Brands Good Average Bad Total Weight


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LG 20 1 0 62

Carrier 14 4 2 52

Voltas 15 1 0 45

Samsung 3 3 0 15

Blue Star 4 2 0 16

Local Made 12 12 0 60

For finding the performance of Air Conditioners a system of weight age was

developed .Each good performance carries 3 points, each average 2 points, each bad 1

point. The total weight are summed up to get the total weight on which the performance

is evaluated The brand having the highest points is rated as the best performer and the

brand with the least points is the worst performer. This is the because the survey is done

on a sample and not the total population.

There are the cases where a person is rated a brand as a good performer which is only the

sample of that particular brand and there are the cases where a person has rated a badperformer to the brand having more sale.


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Performace of ACs

62

5245

1516

60LG

Carrier

Voltas

Samsung

blue Star

Local Made


Performance wise people have rated LG as the no. 1 brand, local ACs as the no. 2 brand

and the Carrier as the no. 3 brand. This may be due to difference in the expectations for

branded and local ones that people have .People expect the local brands to perform a

limited period .When they did not find any technical defaults in local ones for that limited

period then they gets delighted. On the contrary people expect the branded ones to

perform to perform for a maximum period. But when they find any minor technical

default in branded ones they feel dissatisfied .This is the only reason for which people

have rated LG as no. 1 in performance.


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AFTER SALE SERVICE OF MAJOR BRANDS OF AC

(AC HOLDERS ONLY)

Brands Good Average Bad Total weight

LG 12 8 1 53

Carrier 14 4 2 52

Voltas 13 2 0 43

Samsung 3 3 0 15

Blue Star 4 2 0 16

Local Made 9 9 5 50

To know about the service aspect of LG and its competitor one question was How is the

after sale service of your existing AC?For these 3 ratings were given such as good,

average and bad. The respondents have to tick anyone of the three again weight age were

given as 3, 2, and 1 as given to know the performance.


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After Sale Service of Popular Brands

53

5243

15

16

50LG

Carrier

Voltas

Samsung

Blue Star

local made


Although the LG brand is new in the market but still its after sale services are very good.

Only a few number of people are dissatisfied with its after sale service.


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PURCHASE BEHAVIOUR OF THE CONSUMERS

To know the prospective customers better we have tried to find out the pre, point and post

purchase behaviour of the consumer. For this the question , which was asked to the

respondents , was What would you look for before buying an Air Conditioner/Air

Conditioners .Respondents had seven attributes which they generally look for and they

had to rank them as 1,2,3 .. in order of preference.

This question was relevant for both respondents who had ACs and who did not had. From

this question we had made an attempt to find out

Pre purchase behaviour

Point purchase behaviour

Post purchase behaviour

Lets find out the difference in human attitude dealing each point separately.

PRE PURCHASE BEHAVIOUR:

For knowing this behaviour the respondents who have Air Conditioners and had decided

to buy another one were taken and those respondents who does not have Air Conditioners

and probably buy it in future were taken. So first of all we will look for the attributes of

AC holders and then that of prospective customers.


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Attributes AC Holders Non AC Holders

Lower cost 18 54

Performance 53 66Better Service 38 32

Longer Guarantee 16 39

New Technology 18 21

Popularity 2 4

Installment Schemes 4 22

Again the same system of weightage was followed .Here all the attributes were taken into

consideration and were given weightage as per the ranking done by the respondents.

Attributes AC Holders Look before Buying

18

53

38

16

182 4

Lower cost

Performance

Better Service

Longer Guarantee

periods

New technology

Popularity

Installment

This graph shows weightage for performance is highest at 53 and for better service is i38.

The third attribute which people think about is lower price and new technology having

the same weightage of 18.


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Attribute Non AC Holders Look before

buying

54

6632

39

21 422

Lower Cost

Performance

Better Service

Longer Guarantee

Periods

New Technology

Popularity

InstallmentSchemes

As per the chart shown above performance has got its weightage as 66 followed by low

cost at 54 ,longer guarantee are 39 and good services at 32 respectively.


People who have ACs look for better technology and lower price giving priority to good

performance and better services. On the other hand prospects , who may buy an AC

generally look for longer guarantee periods and installment schemes anyway giving

priority to low cost and performance.


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POINT OF PURCHASE BEHAVIOUR OF THE CONSUMERS:

To find out the point purchase behaviour we have taken ten attributes which influences a

consumer to buy a particular brand, They are converted in percentages.

Low cost 22.6

Performance 39.8

Good Service 10.8

Longer guarantee periods 2.1

New Technology 4.3

Popularity 10.8

Installment Schemes 3.2

Availability 2.1

Design 1.1

Recommendation 3.2


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Customers Look for at time of Purchase

22.6

39.810.82.1

4.310.8

3.22.11.13.2

Low cost

Performance

Good service

Longer Guarantee

periodNew Technology

Popularity

Installment

SchemesAvailability

Design

Recommendations

This chart shows about 40 % of the respondents have looked for performance at the time

of purchase of ACs .23% of the respondents have taken the AC after comparing the lower

price. 11% of the respondents have looked for Good Service and the other 11% have

looked for the popularity aspects.


So at the time of purchase people mainly look for performance, Lower prices, and Good

service and Popularity aspects. That mans 11% of the people who have ACs in Rohtak

city have taken it as a status symbol.


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BRANDS PROSPECTIVE CONSUMERS WANTS TO BUY

LG 47%Voltas 6%

Carrier 18%

Not Decided 29%

Brands Non AC Holdes Wants to Buy

47

618

29 LG

Voltas

Carrier

Not Decided

This chart shows that LG has got the highest of 47% of the respondents saying that they

will buy it 29 % of the respondents saying that they are yet to decide which brand to buy.

Similarly 18% and 6% are the future buyers of Carrier and Voltas.


LG has not only aggressively entered into the market but is also playing in the minds of

the people. Moreover, LG has to convince to those people also who have not decided

about the brand which they have to buy.

LIMITATIONS OF THE PROJECT


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However the real scope of the project is limited .They are limited in the following

manner.

The study was confined to Rohtak market only. The industry and developed

business area as well as urban centers could not be considered for the above

study. Thus the study was limited to specific city of Haryana.

The study is conducted by taking respondents, which is considered as too

limited to arrive at any valid conclusion on several aspects relating to the

marketing of air-conditioners.

In our study we have only considered the residential segments but some other

segments such as government organizations, industries, private and public

companies were ignored. This is worth mentioning here that these segments

which were not considered constitute around 65% of the total demand.

Some of the respondents were not the actual design makers of the family

therefore the information gathered from them might have some biases.

Some suggestions may seem impractical as they suggested without

considering the financial implication of it.

RECOMMENDATIONS


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As the air conditioners are going down from the level of status to necessity, the

companies are keeping a close eye on the fast changing needs of the customer. the four P,

s of marketing is becoming the norm, especially for the White Goods Industry i.e. high

quality technological advancement, aggressive marketing policies, better after sale

services, financial schemes and affordable prices.

Therefore the organization catering to these needs of the customer will definitely have an

edge over its competitors.

After the survey these are some of the suggestions which can hopefully be implemented

by LG Health zone to edge its competitor.

RECOMMENDATION IN PRODUCT ITSELF

Before buying an asset people think of different aspects of that particular asset.

One of the aspects is colour, which should match or match with their liking and

surrounding. As air conditioners are also considered as an asset therefore LG

should improve its aesthetic appeal by introducing different designs and colours

to the front grills and wracks.

Some technological in air conditioners is also required so that they consume less

electricity and withstand high fluctuation. For this LG has to introduce Air

Conditioners with built in stabilizers?

Air Conditioners can prevent in forming unpleasant odours, which occurs due to

improper ventilation system so by overcoming this LG can step ahead in the

direction of consumer delight.

To cater to the needs of various types of customers LG should introduce smaller

or candy models in terms of weight and dimensions, as they are going to be highly

demanded in near future.


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RECOMMENDATION IN THE PRICE OF THE PRODUCT

Customer always wants discounts on the MRP of a product. Therefore LG should

fix a price which will be same in every counter and instructions must be given toevery sales and marketing executives to sell it in that fixed price.

Previously ACs were status for many but today people recognizes the significance

of it .Though the prices of AC s has dropped to 15% but still it is high enough to

suit everybodys pocket . Therefore LG should make a tie-up with financial

companies and introduced installment schemes for the customers.

RECOMMENDATION IN THE SERVICES OF THE PRODUCT

The dealer should ensure the serviceman /technicians pay routine visits or at least

they should make telephone calls on regular time intervals for the servicing of Air

Conditioners .This creates a good image in the minds of customers about the

dealer and the company.

A proper system of controlling the dealers should be developed in order to ensure

that the dealers should attend to the complaints in time, send the service report to

the office and provide routine services. This will help in ensuring that the

customers are getting prompt and efficient after sale service.

The company should increase the number of servicemans/techinicians so as to

provide prompt and efficient services to the customers who take Air Conditioners

directly from the company.

In case if the unit has to be taken down to the service station for repairs, The

dealer can provide a back up unit to the customers so that the customers do notface any difficulty. By doing this the satisfaction level of customers will increase

and he or she become more loyal to the company because this gives a customer

feeling that the company really taking care of its customers.

RECOMMENDATION IN THE PROMOTION OF THE PRODUCT


37/47

Contractors and Engineers are the persons who are involved in the construction of

apartments, buildings and shopping complexes .They either give plans or fit the

Air Conditioners themselves. so the sales or marketing executives should targetthese persons and make regular contacts to them. To make them closely related

with the company some gifts should be given to them.

The company should offer free ACs to major Air ports and railway stations to fit

them in the waiting rooms, passengers coming to these places can really feel the

cooling effect. Secondly it should also display kiosks near the ACs clearly

indicating the contact no of the company so that any person who wants to by or

gather any information about LG can contact.

To facilitate more sales and to earn more revenues LG should introduce

exchange offer .But one thing must be noted that the price which they would

offer in exchange with the older must be attractive one, This offer will act as

bounty for those who are not satisfied with the performance of their existing ACs.

Dealers are the persons who deal with several brands of a particular product. They

generally push the consumer to buy a particular brand, which provides maximum

benefits to them. Therefore LG should fix different levels of target for the dealers.

each target level should contain a good amount of monetary value attached to it

and it must increase with the increase in target level.


38/47

RECOMMENDATION IN THE ADVERTISEMENT OF THE PRODUCT

Consumers are very educated; therefore they should be updated with the technical

up gradations which a company undergoes. So for this LG should make acomparative chart taking other brands into account and highlight the unique

technologies it has in its credit.

LG should display more advertisements in magazines related to business and

computer segments. Because people reading these magazines are highly

professional and educated. so by providing significant knowledge to them about

the product LG can reach closer to their minds.

RECOMMENDATION FOR RELATIONSHIP BUILDING

Our survey shows the best media which had actually affected the sales of ACs is

the recommendation of friends and relatives who had ACs. Therefore more focus

should be given to customer care, for the company should focus on a new concept

relationship marketing. Corporate says one satisfied customer brings in five

new customers and one dissatisfied customer pulls away fifteen probable

customers. So by developing better relations with the customers a co. gains a lot

in the long run.

Company should send cards in occasions like diwali, holi and Christmas. To make

the customers feel personal it should also send cards on their anniversaries and

birthdays.

By telephone calls every month and asking about the performance of the unit

given to them.

RECOMMENDATION FOR DEVELOPING POTENTIAL MARKET


39/47

LG should identify potential market in different places of India by assigning

summer projects to the mint. Students and broaden the its dealers network in

those places. To increase the motivation level of the dealers the co. should conduct annual

dealers meeting every year. in these meeting the problems faced by dealers in the

market must be discussed and some prizes for selling maximum no. of units be

distributed.

CONCLUSION


40/47

The insight into the present market of Air Conditioners in the city of Rohtak brought

many aspects of consumer behaviour in to the light. The findings doesnt gave any

representation of the exact human behaviour as the charts ,figures and analysis ,are

described , as perceived by me .Here are some of the key notes of the wholesome

findings.

Local brands which are either made locally in Rohtak market or assembled by

different local vendors have got the highest market share followed by LG

&Carrier.

LG due to its aggressive marketing and advertising is playing in the minds of the

people and hence, the most recalled brand in Rohtak.

Though carrier and local brands are making neck to neck fight LG holds the

fourth position in Rohtak market.

From our findings in the Rohtak market people mostly ask or take the advice of

their friends and relatives before buying a particular brand. Therefore they are the

best media of advertisement or communication in Rohtak market.

Performance and better service are the only attributes which everybody thinks of

before buying. Those who have ACs feel longer guarantee period is the third

attribute. Those who dont have ACs feel lower cost as the second attribute. At

the time of purchase lower cost is the second attribute that struck the mind where

as good service and popularity comes after it. After purchase people feel they

should have looked, for longer guarantee periods and lower cost after giving

priority to performance and better service.


41/47

Before I write the last lines of this project, I would again emphasis on the concept of

Consumer Behaviour , Because it is the requirement for a planned change in an

organization. It aims at knowing our existing customer and future consumers better and to

develop marketing strategies from it, hence taking an organization to higher level of

performance.

In India the response to the study of consumer behaviour has been mixed and only few

organizations have used it as the strategy for planned change existing, as they do it in a

highly volatile political and economic environment.


42/47

BIBLIOGRAPHY

BOOKS

Research Methodology-By C.R. Kothari

Marketing Management-By Philip Kotler

Indian Consumer Studies and Cases for Marketing Decisions- By Subash Chandra Mehta

Consumer Behavior By ICFAI University

Magazine and Newspaper

Business Today

Indian Management

Marketing Research

Economic Times

The Times of India

WEBSITES

www.lgindia.com

www.amazon.com

QUESTIONNAIRE
http://www.lgindia.com/http://www.amazon.com/http://www.lgindia.com/http://www.amazon.com/


43/47

I am a student of Amity Business School Manesar and making a survey for LG Health

zone. I require your kind operation to accomplish this project.

1. Which of the following provides you the coolest air? (Tick only one)

o Fans

o Air Conditioners

o Air Coolers

2. Mention some of the brands of Air Conditioner known to you. (in order of your

preference)

3. Do you own any Air Conditioner/Air Conditioners at home? (Tick only one)

o Yes (if yes Mention the brand)

o No (if No then ,please move down to 8)

4. From where did you come to know about this particular brand? (Tick only one)

o Advertisements in Magazines and Newspapers

o Advertisements in Television

o Hoardings and Billboards

o Friends and Relatives

o Other Sources(Please specify )

5. Mention why did you decided to buy this particular brand?

6. How is the performance of Your existing Air Conditioners? (Tick only one)

o Good

o Average


44/47

o Poor

7. How is the after sale service of your existing Air Conditioner? (Tick only one)

o

Goodo Average

o Poor

8. Do you have plans to buy an Air Conditioner/Further Air Conditioners in near future?

o Yes

o No(If No ,move to 10)

9. What is the brand you have decide and why?

Brand Name:

Reason:

10. if you are going to buy an Air Conditioner then what will be your Priority? (Rank in

order of Priority)

o To buy an Air Conditioner which is cheaper than other brands?

o To buy an Air Conditioner which will perform betters the other brands?

o To buy an Air Conditioner which is built with new technology than other brands?

o To buy an Air Conditioner which will provide better services then other brands?

o To buy an Air Conditioner which will provide longer guarantees periods than

other brands?

o To buy an Air Conditioner which will provide financial schemes to the

consumers?

o To buy an Air Conditioner which is popular than other brands.

11. What is your Profession?

o Govt. employee

o Businessman


45/47

o Self Employed

o Others

12. To Which income group do you belong?

o Less than Rs. 10,000

o Rs. 10,000-Rs. 15,000

o Rs. 15,000-Rs. 20,000

o Rs. 20,000 and above

Your nameAge

Gender

Present Address

Contact Number


46/47

MODEL INFORMATION

Split Model NoDescriptio

n

Price(INR) Price(USD)

MRP List MRP List

LS-L1262QC

Air

Conditioner

Split

25,990.0

0

22,840.0

0578.84 508.69

LS_A18S1RAE

1 Split AC

26,990.0

0

24,600.0

0 601.11 547.88

LS_B24S1RAE

1Split AC

29,990.0

0

28,500.0

0667.93 634.74

Windo

wModel No

Descriptio

n

Price(INR) Price(USD)

MRP List MRP List

LW-

C1263QCPP

Internet

Series

22,500.0

0

17,000.0

0

501.1

1

378.6

2

LW-

A12G1NA1

Window

AC

13,990.0

0

12,990.0

0

311.5

8

289.3

1

LW-

A12G1RAE1

Window

AC

15,490.0

0

14,990.0

0

344.9

9

333.8

5
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47/47

LW-

A12G2RDL1

Window

AC

15,990.0

0

15,490.0

0

356.1

2

344.9

9

LW_A18G1NA

1

Window

AC

15,990.0

0

15,490.0

0

356.1

2

344.9

9

Whisen Model No DescriptionPrice(INR) Price(USD)

MRP List MRP List

LS-

P1260HD Whisen AC 39,000.00 35,050.00 868.60 780.62

LP-

P2461PHWhisen AC 66,000.00 65,050.00 1,469.93 1,448.78

LP-

K2465QC Whisen AC 52,000.00 50,050.00 1,158.13 1,114.70

LP-

K3065QC Whisen AC 55,000.00 54,050.00 1,224.94 1,203.79

LS-

P1260HM Whisen AC 39,000.00 35,050.00 868.60 780.62
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