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Market Survey

on LGconsumer and

comparative

study of

various A/C

brands

PGDMSummer Internship

Project

By Vikas Rana

Roll No. - 09DM134

Course PGDM (2009-2011)

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ACKNOWLEDGEMENT

It is indeed a great pleasure to express my senses of profound gratitude &

indebtedness to all the people who have been instrumental in making my internship a

rich experience. I got the opportunity to do a challenging project in LG ELECTRONICS

INDIA LTD. The project is the important part of our study and gives us a real practical

exposure to the corporate world and it is almost impossible to do the same without

the guidance of mentors .While doing the topic MarketSurvey on LG consumer and

comparative study of various A/C brandsI received immense guidance and help from

several mentors

It gives me immense pleasure to acknowledge LG ELECTRONICS INDIA Ltd.,

which has been kind enough to give me a chance to do my summer training andprovided me wonderful support throughout my training period..

I am thankful to MR. Nitin Beri (Product Marketing Manager) for allowing me to do

my research in his office on LG consumer durables and dealer development issues.

I am grateful for his exceptional support for my study throughout these eight weeks. I

have learned the meaning of marketing and professionalism from this great

personality.

I wish to thank my project guide Prof. R.J. Masilamani for his guidance during myproject. I am grateful to my college director Dr. H Chaturvedi.for his support.

Vikas Rana

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Summer Project Certificate

This is to certify that Mr. Vikas Rana Roll No. 09DM134 a

student of PGDM has worked on a summer project titled

Market Survey on LG consumer and comparative study

of various A/C brands at LG Electronics India Limited

after Trimester-III in partial fulfillment of the requirement

for the Post Graduate Diploma in Management

programme. This is his/her original work to the best of my

knowledge.

Date:___________ Signature________________

(Prof. R.J Masilamani)

BIMTECH SEAL

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Contents

1. ACKNOWLEDGEMENT 02. EXECUTIVE SUMMARY 53. INTRODUCTION 64. REVIEW OF LITERATURE 7

4.1. LG Electronics 74.2. Summary: 74.3. COMPANY HISTORY: 74.4. VISION: 84.5.

MISSION: 9

4.6. CORPORATE IDENTITY: 114.7. BUSINESS DIVISIONS: 134.8. Organizational Chart (Worldwide): 144.9. LG INDIA (Greater Noida) 15

4.9.1.SWOT Analysis 214.9.2.INTRODUCTION: (About Air-conditioners) 224.9.3.THE INDUSTRY:- 234.9.4.THE GOVT. POLICY REGARDING A.C.S: 234.9.5.DEMAND:- 244.9.6.PROFITABILITY:- 244.9.7.IMPORTANT FACTORS: 244.9.8.TYPES OF LG AIR-CONDITIONER 264.9.9.BRIEF ABOUT COMPETITORS PROFILE 29

5. STATEMENT OF THE PROBLEM 305.1. OBJECTIVES 30

6. RESEARCH METHODOLOGY 316.1. Data Collection Methods: 316.2. Research Instruments 326.3. Limitations of the Study 33

7. ANALYSIS AND RESULTS 347.1. Demographics 347.2. Air Conditioner Ownership 387.3. Findings from Dealers Survey 507.4. Dealer Satisfaction with LG Scheme 59

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7.5. Observations from Dealers 627.6. Observations from Sales and Service Dealers (SSD) 63

8. CONCLUSION 658.1. From Customers 658.2. For Dealers 66

9. SUGGESTIONS 6710.BIBLIOGRAPHY 69

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EXECUTIVE SUMMARY

LG is a well-known company. It is a company which is focused on maintaining the

highest international standards of excellence through quality, technology and

innovation. For over a decade now, LG has been bringing the latest and very best in

Consumer Electronics and Home Appliances to the Indian consumer. Successfully

adapting the best of international technology to suit Indian needs, and crafting it to

improve the quality of life as millions of satisfied customers will agree. This tells the

success story of LG. Sustainability is at the center of LGs strategy. Being a greatcompany LG always tried to improve people lives through its products but some times

due to changing environment or customers mind the product doesnt do as well as

expected.

The main objective of the research is to find out that what the condition of

LGs service in the market and know whether consumers and dealers are satisfied with

the services which are provided to them. Other objectives were to analyze the current

scenario of the market in the consumer durable sector. And assess the main

competitors of LG. Specifically we had to determine the current position of LG Air

Conditioners in the market.

Towards these objectives, I have conducted a survey of consumers and dealers in the

NCR region. I have taken a Sample size of 175 consumers and 80 dealers. Dealers were

also surveyed to check on the new scheme offered by LG on the purchase of every

A/C.

It was found that LG had maximum ownership (38%) among the respondents

and performance and customer satisfaction wise LG was considered best. Even dealersconsider LG as the best brand. But with regards to promotion Samsung was

considered the best. In the case of LG Schemes, dealers were mostly unhappy with

them as it required filling up of online forms and sending Demand Drafts of a value of

Rs. 99 which they considered an unnecessary inconvenience.

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INTRODUCTION

LG is the market leader in Air-Conditioner segment in India, thus the most appropriate

place to conduct my project. This project gives me great exposure to the consumer

durable market because it includes product knowledge and the filed job in which I

have visited the stores comes under the region of NCR and interviewed the consumer.

During this project I also reviewed LG call center in Gurgaon, Haryana and got to know

about the working of a LGs customer care for which I have made another report. This

project helps me to know the market practically. My job was during this project to see

the marketing and ownership of LG and also the schemes/offers provided by the LG to

the customers. For that I surveyed 180 consumers and 80 dealers. I also visited threedifferent types of dealership such as Multiple Brand Outlets (MBO), Exclusive Shops

(LG Shopee) and Sales and Service Department.

My job included

1. Calculate the ownership of LG A/Cs in comparison to its competitors.2. Check the response of the LG A/C scheme (Reebok).3. Check the response of LG SSD service known as A.C.E.4. Checking the customer satisfaction.5. Find out the problems that the dealer are facing while selling the LG product.6. Finding out the customer response for the LG product by asking the owner of

the shop and the customer itself.

7. Finding out the most influencing mediums (TV Advertisements, friends, Radioetc.) for the customers.

8. Check the catalogue and POP availability (Promotion).9. Asked various questions to dealers regarding sales, promotion, margins etc.10.Writing of the complaints from dealers and their suggestion.

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REVIEW OF LITERATURE

LG Electronics

LG, (Korean: KRX: 066570, LSE: LGLD) is the world's second largest manufacturer

of televisions and third-largest producer of mobile phones.

With its headquarters in the LG Twin Towers in Yeouido, Seoul, South Korea,

LG Electronics is the flagship company of LG Group, one of the world's largest

electronic conglomerates.

The company has 75 subsidiaries worldwide that design and manufacture

televisions, home appliances, and telecommunications devices. LG Electronics

owns Zenith Electronics and controls 37.9 percent of LG Display.LG has been able to

craft out in ten years, a premium brand positioning in the Indian market and is today

the most preferred brand in the segment.

Summary:

By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand

growth of 14%.Now the world's largest plasma panel manufacturer, its affiliate, LG

Display, is one of the largest manufacturers of liquid crystal displays. Also in 2006, the

company's mobile phone division, LG Mobile, marketed the LG Chocolate phone,

changing the company's image of the maker of thick 3G phones. It now focuses on thedesign and marketing of phones such as the LG Shine, the LG Glimmer and LG Prada

(KE850). As a result, the company was picked as "The Design Team of the Year" by

the red dot design award in 2006~2007 and is often called the "New Apple" in the

industry and online communities.

COMPANY HISTORY:

The company was originally established in 1958 as GoldStar, producing radios,

TVs, refrigerators, washing machines, and air conditioners. The LG Group was a

merger of two Korean companies, Lucky (from the Korean "Lakhui") and GoldStar,

from which the abbreviation ofLG was derived. The current "Life's Good" slogan is

a backronym. Before the corporate name change to LG, household products were sold

under the brand name ofLucky, while electronic products were sold under the brand

name ofGoldStar(Hangul:). In January 2009 LG was able to buy the domain

name, LG.com, placing it among the companies who own their two letter brand's

domain name.

In 1994 GoldStar gained sponsorship from The 3DO Company to make thefirst 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and

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acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary

formed in 2007 to allow LG Chem to supply polysilicon to LG Electronics for production

of solar cells. In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune,

Maharashtra that commences operations in October 2004. Covering over 50 acres, the

facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners,Refrigerators, Microwave Ovens Color Monitors. In 2008, LG took its first dive into

the solar-panel manufacturing pool, as it announced a preliminary deal to form a joint

venture with Conergy. Under the deal, set to be completed by year's end, LG would

acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant. LG has produced

camcorders called ARTCAM and DSLRs.

VISION:

LG Electronics is pursuing the vision of becoming a true global digital leader,

attracting customers worldwide through its innovative products and design. The

companys goal is to rank among the top 3 consumer electronics and

telecommunications companies in the world by 2010. To achieve this, we have

embraced the idea of Great Company, Great People, recognizing that only great

people can create a great company.

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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.

PRODUCT LEADERSHIP

LG focuses on six development areas to become the product leader.

1. New Machine2. Reliability3. Conventional Installation4. Environment Friendly Product5. Low Noise & Vibration6. Energy Saving

QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost satisfaction by

supplying zero defects.

LG proceeds in a hierarchal manner. It is named as LG WAY.

The essence of the LG WAY is found in LG's management principles of creating

value for customers and respecting human dignity. As they are put into action

through "Jeong-Do" management, LG is able to accomplish its vision and reach

our final goal of becoming No.1 LG.

Management by Principle not only includes open and fair competition but also

highlights building the competence necessary for LG people to createsubstantial value for customers, and to earn their confidence.

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Jeong-DO Managementis LGs unique application to ethics. LG will succeed through

fair management practices and constantly developing our business skill.

Honest with our customer

Providing great values to customer through constant innovation & and

development.

Equal opportunities

Equal Treatment

Management Principle - Creating value for customer

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CORPORATE IDENTITY:

BRAND IDENTITY

SLOGAN

SYMBOL

BRAND IDENTITY:

The LG brand comprises four basic elements: values, innovation, people, and

passion.

EVOLUTION OF SYMBOL:

LG was formed from two different companies named Lucky (chemical cosmetic

company, 1947) and Goldstar (radio manufacturing plant, 1958). Though, these were

different companies they were essentially owned by one person. In 1995, Lucky

Goldstar was renamed to LG Electronics.

Actually, LG is a chaebol (a South Korean conglomerate), so theres a whole range of

LG companies that also changed their names, such as LG Chemicals, LT Telecom, and

even a baseball team called the LG Twins. These companies all adopted the Life is

Good tagline you often see alongside its logo. LG denies that their name now stands

for Lucky Goldstar. Theyre just LG.

http://www.lge.com/

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SLOGAN:

"LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO PROVIDE DELIGHTFULLY

SMART PRODUCTS THAT WILL MAKE YOUR LIFE GOOD.

'Life's Good' best expresses our brand's values, promises, benefits and

personality. It is an ultimate expression for what our brand stands for and what we

strive to deliver continuously. LG's delightfully smart products 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.

SYMBOL:

The letters "L" and "G" in a circle symbolize the world, future, youth, humanity,

and technology. LGs philosophy is based on Humanity. Also, it represents LG's efforts

to keep close relationships with customers around the world.

The symbol consists of two elements: the LG logo in LG Grey and the stylized

image of a human face in the unique LG Red color. Red, the main color, represents our

friendliness, and also gives a strong impression of LG's commitment to deliver the

best. Therefore, the shape or the color of this symbol must never be changed.

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BUSINESS DIVISIONS:

Mobile communications:

LG Electronics is the world's third largest handset maker.

Digital appliance:

The home appliance division makes products like refrigerators, air

conditioners and washing machines. Its 2007 sales totaled KRW 11.8

trillion, accounting for 29% of the company's total revenue. The division's

profit was KRW 717.1 billion. About 35% of the company's home appliance

revenue comes from the North American market.

Digital display:

Plasma TVs, LCD TVs, Micro`Display`Panel` TVs, Monitors, PDP Modules,

OLED Panels, USB Memory, Flat Panel Computer Monitors.

Digital media:

Home Theater Systems, Blu-ray Disc players, DVD Recorders, Super Multi

DVD Rewriters, CDRW, Notebook PCs, Desktop PCs, PDAs, PDA

Phones, MP3 Players, New Karaoke Systems, Car Infotainment

LG mobile devices are made for GSM networks as well as for CDMAnetworks worldwide. LG phones are available also in unlocked versions that

can be used on any GSM network worldwide and not just for a specific

carrier's network

R&D:

From mobile innovations to digital media technology, LG is

leading the electronics industry and bringing technology into

your home. The LG Institute of Technology was founded tonurture ongoing innovation like improving energy devices,

multimedia processing, and wireless networks around the

world.

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Organizational Chart (Worldwide):

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LG INDIA (Greater Noida)

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Koreawas established in January 1997 after clearance from the Foreign Investment

Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater

Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at

Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India.

This facility manufactured Color Televisions, Washing Machines, Air-Conditioners andMicrowave Ovens.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market

share, is planning a brand new image. To attract inspirational and young consumers

across India, company will roll out a new marketing strategy. The exercise will cost the

company Rs 360 crore.

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 more than 50 lakh households in India. LGEIL is celebrating the 11th

anniversary this year.

LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics'

largest R&D centre outside Korea. We at LGSI focus on niche technology areas such as

mobile application development, digital video broadcast and biometrics software and

support LG Electronics with our expertise. Motivated by a passion for technology, a

strong work culture and loyalty to the organization, we are determined to see LG

become one of the top three brands globally.

Prominent consumer electronic company, LG Electronics Inc. has said that it

expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin,

managing director of LG Electronics India has said that the company has earmarked

4.8 billion rupees for investment purpose in India this year. The said money will be

used to market as well as manufacture new products.

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LG Electronics, which is originally a South Korean Company with branch in

India, informed that its sales of GSM mobile phones, color televisions, air conditioners

and other household goods in the Indian market was to the tune of 95 billion rupees

($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110

billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on catering to

the high-end consumer market which will help boost sales this year. India churns out

six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of

LG exports to 40 countries.

FACTS AND FIGURES:

Established In : Jan 1997

Managing Director : Mr. Moon B. Shin

Corporate Office :Plot No51, Udyog Vihar, Surajpur Kasna Road, Greater Noida

(UP)

Corporate Website : http://www.lgindia.com

Number of Employees: 3000+

Business Areas & Main Products

Home Entertainment

Plasma Display Panels, LCD TV, Colour TVs, Audios, Home Theatre System, DVD

Recorder/Player

Home Appliances

Refrigerators, Washing Machines, Microwaves, Vacuum Cleaners

AC

Split AC, Windows AC, Commercial ACs

Business Solutions

LCD monitors, CRT monitors, Network Monitors, Graphic Monitor, Optical Storage

Devices, LED Projectors, NAS( Network attached Storage) and Digital signage

GSM

Colour Screen GSM Handsets, Camera Phones, Touch Screen Phones, 3G Phones

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India challenges

The challenges faced by LG when entered in Indian market

1. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 inIndia).

2. High import duty3. Competition from local market players and other MNCs in consumer durable

segment.

4. Price sensitiveness of the Indian consumerLGEI over comes these challenges to emerge as

1) Innovative marketing strategya) Launch new technologies in consumer electronic and home appliances.b) LG was the first brand to enter in cricket in big way a way, by sponsoring the

1999 world cup followed it up in 2003 as well.

c) LG brought in four captains of the Indian cricket team to endorse its products.LG invested more than US$ 8 million on advertising and marketing in this sport.

d) LG has differentiated its product using technology and health benefits. CTV hasGolden eye technology Air conditioner has Health air system and

microwave ovens have the Health wave system.

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2) Local and efficient manufacturing to reduce the costTo overcome high import duties LG manufactures TV refrigerator in India at

manufacturing facility at Noida and Pune. LGEI had already commissioned contract

manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI toreduce cost.

LGEI implementing the Digital manufacturing system (DMS) as the cost cutting

innovation this system is follow-up to the six sigma exercise LGEI had initiate

earlier.

3) R&D potentialLG has the research and development facilities in Bangalore and Pune. Both the

unit carry out R&D department for the domestic as well as the parent company italso dose customize R&D for the specific countries to which it export product.

4) Regional channel and wide distribution network1. LG has adopted the regional distribution channel in India. All the distributers

work directly with the company. This has resulted in quicker rotation of the

stock and better penetration into B, C, D, class market.

2. LG also follows the stock rotation policy rather then dumping stock on channelpartners.

Major Key Success Factors

1. Innovative marketing - LG was the first brand to enter cricket in a big way, bysponsoring the 1999 World Cup and followed it up in 2003 as well.

2. Local and efficient manufacturing to reduce cost - To overcome high importduties, LG manufactures PC monitors and refrigerators in India at its

manufacturing facility at Noida, Delhi.

3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.4. Product localization - Product localization is a key strategy used by LG. It came

out with Hindi and regional language menus on its TV.

5. Regional distribution model - This has resulted in quicker rotation of stocks andbetter penetration into the B, C and D class markets.

6. Leveraging Indias IT advantage - LG Electronics has awarded a contract todevelop IT solutions to LG Soft India (LGSI). The project involves development

and support for ERP, SCM, CRM and IT-enabled services for LG.

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Strategies adopted by the organization

LG follows 10 commandments which are as follows.1. Foster working environment-5S Environment2. Fast execution is key to success3. Transparent and fast communication-open communication4. Update market -knowledgeDemographics5. WinWin relationship with the trade partners6. Customer is the king7. Even BillingRoad to ach supplier A8. Be in touch with the market (70% Market, 30% Office).9. Plan and Execute annual marketing Calendar-Time to market10.Display share of 50% -to get 50% consumer share.

LG PUNE

LG Pune is the branch office of LGEIL. It is located in J.M Road.

In 2004 LGEIL opened second factory which is located in Ranjangaon. This plant

manufactures all product including DVD writers and GSM mobiles. Thus it became first

company to manufacture DVD writer in India. The ODP plant aims to reach amanpower base of 1500 people and an investment of Rs 300 crore till 2010.

LG India will become the export hub for LG Worldwide, catering to the Middle East

and African markets. The company aims to touch an export turnover of $3 billion by

2010 from India, which will contribute to 30 per cent of the Indian arm's turnover.

Pune, India, October 6, 2004 -- LGE announced 3 growth strategies aimed at the 1.1

billion people of India making the Indian market the second largest global production

base following China. Under this strategy LGE has projected 2007 revenues in Indiawill exceed US$10 billion, 10 times that of 2004.

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LGEIL PRODUCT MIX

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SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

It involves specifying the objective of the business venture or project and identifying

the internal and external factors that are favorable and unfavorable to achieving that.

StrengthMarket leader in home appliances segment.

LG customer service is one of the best in India.Manufacturing unit in tax incentives areas.Wide range of product categories to tap the consumer of middle class,

upper middle class and high class.LG having the widest distribution network in the industry (47

branches,175 area offices and over 10,000 trade partners).Shifting to the rural market.

WeaknessProduct rang is very big in case of LG thus it gets difficult to provide

good quality and constant innovation.

OpportunityShifting to rural market

Control over the white goods market, as we know the highest market

share in home appliance market.

ThreatThe closest competitor of LG ,Samsung is also from South Korea and

consumers confuse LG product with Samsung products

Price war with its closest competitors, Samsung

Competitors from Indian brands and from new entrants

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INTRODUCTION: (About Air-conditioners)

The invention of Willis Haviland Carriers A.C. system was back in 1902, marked thegenesis of a new industry without which summers scorching heat and intolerable

humidity would not have been surmounted.

Air conditioning may be defined as the simultaneous control of all those factors

affecting both the physical and chemical conditions of the atmosphere within any

structure. These factors include temperature, humidity, motion, distribution, dust,

bacteria, odors and toxic gases, most of which affect in greater or lesser degree,

human health and comfort.

Air that has been properly conditioned has one or a combination of the foregoing

processes performed on it e.g., it has been heated or cooled; it has had moisture

removed from it (dehumidified); it has been placed in motion by means of fans or

other apparatus; and it has been filtered and clean.

The Indian white goods category, which includes washing machines,

refrigerators, air conditioners, vacuum cleaners, televisions et al, accounts for the

largest chunk of domestic appliances market in value terms. Increasing income levels

and changes in life styles have led to heavy demand for consumer durable, especiallyrefrigerators, washing machines and air conditioners. Only two years ago, these were

regarded as luxuries.

Since then, they have penetrated most urban households. Estimated, the existing

market for the consumer durable in India is over 30-35 million households with the

top three-income groups-middle, upper and high accounting for a sixth of the

population. Between 1986 and 1995, while the proportion of the low-income group

has fallen by eight percent, there was an almost equal rise in the top three groups.

The air conditioner industry can be broadly divided into room air conditioners and

central air conditioners-while the latter is suitable for controlling and maintaining

ambient temperature and humidity in large establishments, high rise buildings and

apartment complexes, the former is applicable for smaller areas, usually single rooms.

The room air-conditioner is either Window A.C. or Split A.C. the Window A.C.s have

been around for 40 years, whereas the split version originated in late 80s.

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THE INDUSTRY:-

The Air Conditioners has a total market size of approx. RS. 4,000 crore. It can be

classified into window, split, cassette Tower, packaged and chilling plant. Further, the

split segment is divided into ducted and non-ducted. In the split air conditioner, the

evaporator/cooling unit is separated from the condenser unit (having compressor).

The window & split have a current market of RS. 2400 crore and the central air

conditioners, including chilling plant, command a market of RS. 1600 crore.

The market for air conditioner was earlier dominated by the unorganised sector as a

result of high excise duties. The sector accounted for around 55-60% of the market

share only twelve years ago.

This unorganized sector looms large over profits. This segment is plagued the most by

the unorganized sector, as it requires the low level of investment on technology. This

proportion used to be 30:70 during 1991-92. Then lowering of excise duties from 110-

16% favored the organized sector by narrowing the price gap e.g., a 1.5 ton air

conditioner which cost RS. 45,000/- in 1991-92 now costs only RS. 15,000/- in the

organized sector against about RS. 13,000/- in the unorganized sector.

THE GOVT. POLICY REGARDING A.C.S:

The attitude of the government to the industry in general has been influenced by the

perception of white goods as luxury items. Therefore, with every new central budget,

the levies on these goods were jacked up, making these unaffordable for the better

off. This considerably reduced the off-take of these items though huge demand was

building up. Only after 1993 did the government liberalizes its attitude towards white

goods.

Till 2006, excise duty on air-conditioners varied from RS. 1,800/- for 0.8 ton to RS.3,500/- for 1.5 ton to 2.0 ton models. In the year 1994-95 to 2005-2006 budgets, the

government gives considerable relief to air conditioning sector. The excise duty was

reduced from 80% to 60% in 1994-95 and from 60% to 18% in the following years. In

the Exim Policy, A.C.s continue to be in the negative list, which means they cannot be

imported without license or a baggage.

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DEMAND:-

Demand for A.C.s has never been better. The reason ; fall in prices coupled with the

increased purchasing power of the middle-class and the perception that an A.C. is no

longer a luxury but a necessity due to increase in Ambient Temperature & Humidity.

According to industry sources earlier 70-80 percent of the A.C.s sold are used for

essential industrial applications, hospitals and pharmaceuticals and not merely for

comfort, as it widely believed. A large part of the demand comes from the commercial

and industrial sector, even the government is the major customer but now it

proportionately covered by domestic sector also.

The boom is luring many players including M.N.C.s to setup in India. Some of the

major players are L.G., Videocon Samsung, Hitachi, etc. These MNCs & Indians

expected to be added this year are to the extent of one-lakh units in the windows &

split segment. In the central and chiller segment, new capacities being added are by

Carrier, Amtrex, Voltas and Blue Star.

PROFITABILITY:-

Margins in the industry vary depending upon the segment, model and sizes, between

a broad range of 5-10 percent. However, margins in the window segment are the

least. But these are reasonable in case of Split A.C.s and higher in case of Cassette &

Tower A.C. Even then, for players who have packed and chilly plant manufacturing

facilities e.g. Carrier Aircon, Voltas, Blue Star, Daikin, Hitachi & L.G. margins are higher.

Of Course, Margins are the highest in the central and packaged air conditioning

segments ranging between 15-20 percent.

IMPORTANT FACTORS:

The important factors that govern profitability in the air conditioning industry are

product technology, volumes, distribution network, after sales service and aesthetics.

Most critical in the product technology is the compressor, which contributes about

40% of the total cost. The most common type is the rotary compressor. This is well

suited for the Indian conditions where the Humidity Ratio and ambient temperature

are relatively high up to 52%. But the wear and tear is quite high if not properly used

& voltage fluctuations are high necessitating frequent repairs.

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The reciprocating compressor is suitable for conditions where temperature does not

exceed 45 degree Celsius. Beyond this, its cooling efficiency decreases. Hence, it is

suitable for dusty areas. Also it can withstand voltage fluctuations which are common

in India up to the limit.

The advantage of Rotary Compressor is that it is much more efficient than the

reciprocating one at moderate temperatures, consuming less power with negligible

wear and tear problems. Now scroll compressors are also used for higher Tonnage

A.C. i.e. above 2 Ton.

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TYPES OF LG AIR-CONDITIONER

Split AC: -

It is the most versatile and little bit costlier than Window AC. It is assembled in two

separate parts, one is evaporator/cooling unit and other is condensing unit. Cooling

unit is installed at any part of room/basement, which cools the room and condensing

unit at outside wherever suitable for easily delivering of hot air. These two units are

connected with copper tubes and the gas charging process is also done at site where is

installed. It is known as split AC because it is spitted in two parts.

Series Name A/C TonnageStar

Ratings

Features

L-ARCTIC1.0, 1.5 &

2.0 Ton

2,3 & 5

stars

Jet Cool, 4 Way

Swing, Dreamz Mode,

Gold Fin Condenser,

Jet Cool, Dual Display

(Hidden Type)

L-VOGUE1.0, 1.5 &

2.0 Ton

2,3 & 5

stars

Big 88 display,

Dreamz mode , 4 way

swing, Jet Cool.

L-DESIRE

1.5 & 2.0

Ton 3 & 5 stars

It has Neo Plasma

Filter, Auto Clean, 3

Eva, 4 Way Swing,

Dual Display (Hidden

Type)

L-GLITZ 1.5 Ton 3 Star

Anti-Bacteria Filter,

Sleep Mode, Multi-

Flow Condenser, On-

Off Timer

L-GLORY1.0, 1.5 &

2.0 Ton

2,3 & 5

stars

Jet Cool, Dual display,

Intelloeye, Auto

Clean

L-CRESCENT

0.75, 1.0,

1.5 & 2.0Ton

2,3 & 5

stars

Anti Bacteria Filter,

Sleep Mode, Jet Cool,On-Off Timer

L- ENERGIA 1.5 Ton 5 Star

Jet Cool, 4 Way

selectable swing, 3G

Cyclone Plasma, Auto

Clean

L-IMPERIA1.0 & 1.5

TonN/A

3G Cyclotron Plasma,

Allergy Care System,

Jet Cool, Jet Heat,

Hot and Cold

Function

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Window AC: -

It is a most compact, versatile and cheapest air-conditioning system. It has the

advantage of using single motor for both condenser and cooling coil side. It is

machinery assembled in one piece due to which installation at any site is very easy

and maintenance is also easier, cheaper and faster. Its front part (cooling coil side) is

always kept in the room part and back part (condenser coil side) is in freshenvironment i.e., outside for easy delivery of hot air.

Series Name A/C Tonnage Star Ratings Features

L- GRATIS 1.5 Ton 1,2,3 StarsGold Fin Condenser,

Jet Cool, Anti Bacteria

Filter, VFO Deodrizer.

L-CRESCENT0.75 & 1

Ton1,3 & 4 stars

It has Energy Saver,

Sleep Mode, 4 Way

Swing, Dreamz Mode,

Gold Fin Condenser

L- EUPHORIA1, 1.5 & 2.0

Ton1 &2 Stars

Gold Fin Condenser,

VFO Deodorizer, Anti

Bacteria Filter, Energy

Saver Mode

L-VOGUE 1.5 Ton1, 2 & 3

Stars

Aero Comfort System,

Auto Clean, Jet Cool,

Big Display, VFO

Deodriser

L-MAGNA1.5 & 2.0

Ton1,2 & 3 Stars

Gold Fin Condenser,

Energy Saver, Sleep

Mode, Anti Bacteria

Filter, VFO Deodrizer.

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Cassette AC

Cassette AC is a type of split AC but the difference is in the indoor unit, the indoor unit

of cassette AC is installed in ceiling rather than on the wall. This type of installationhelps in more wide spread air throw thus cooling the room equally.

Tower AC

Tower or Floor Standing ACs is another type of Split AC in which the indoor unit stands

on the floor rather hanging to a wall or a ceiling. The main advantage of floor standing

AC is that it has long air throw range due to its powerful fan. LG is the only AC

manufacturer who is making floor standing ACs in India.

Packaged ACIt is used the area where the tonnage is high (approx., above 3.0 ton to 30 ton). It is

economical inspite of Window/Split AC it is useful where the whole area is to be

chilled simultaneously.

Central AC:

It is used for the area where the tonnage required is more than 30 tons. Thought the

capital cost is higher but the running cost is very economical. In Central Air-

conditioning, a final air-conditioning is done through cold water running through

tubes.

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BRIEF ABOUT COMPETITORS PROFILE:

Voltas:

Voltas Limited is an engineering, air conditioning and refrigeration company

based in Mumbai, India. It offers engineering solutions for a wide spectrum of

industries in areas such as heating, ventilation and air conditioning, refrigeration,

construction equipment, materials handling, water management, building

management systems, indoor air quality and chemicals.

Voltas is a part of the Tata Group. The managing director is Mr. Sanjay Johri. Its

shares are traded on the Bombay Stock Exchange under symbol 500575 with a

turnover of 4300 Crore in 2008-09.

Samsung:

Samsung India is the Regional Headquarters for Samsungs operations in

Southwest Asia, and a leading provider of high tech information technology, telecom,

consumer electronics and home appliance products in the country.

Samsung Electronics. Co Ltd. is a global leader in semi-conductor,

telecommunication, digital media and digital convergence technologies with 2004

parent company sales of US$ 55.2 billion and net income of US$ 10.3 billion.

Onida:

Onida is one ofIndia's leading electronics brands, established as "MIRC

Electronics" in 1981. Onida has a network of 33 branch offices, 208 Customer Relation

Centers and 41 depots spread across India. As on 31 March 2005, Onida had a market

capitalization of Rs.301.46 crore. Onida with its Sales & Marketing office in Dubai

reported a 215 per cent export growth in two years, setting the base for an increased

robust international presence.

Godrej:

Godrej Appliances Ltd. brings out refrigerators, washing machines, air-

conditioners, microwave ovens, and DVD players in India with the latest technology.

Every consumer good comes with price range and variety to serve absolutely all the

strata of the society. . Recently it has announced to increase the number of retail

stores from 49 to 100 by 2010. Investment of Rs 20 crore will be made to make it a

success.

http://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigerationhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigerationhttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Refrigerationhttp://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Refrigerationhttp://en.wikipedia.org/wiki/Air_conditioning

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STATEMENT OF THE PROBLEM

OBJECTIVES

Major Objective:

To study the Air Conditioners (A.C.) market of NCR region and to analyze Customers

satisfaction regarding various aspects.

Sub-objectives:

1) To compare LGs existing market vis-a-vis competition. (Air-conditioners)2) To identify the LGs Customer Satisfaction Level regarding various aspects vis-

a-vis competition. (Air-conditioners).

3) To assess the demographics of the consumers.4) To check dealers response regarding the new scheme(Reebok) provided by LG.5) To ascertain weak and strong areas for LG and its competition.6) To assess effectiveness of existing brands for the products category i.e.

Advertisement Inputs

Availability of brochures and POP

Availability Of Product

Influencing mediums

Schemes And Margins

Service Backup

Product Range

Ownership

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Research Methodology

Research methodology is considered as the nerve of the project. Without a proper

well-organized research plan, it is impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The main objective of survey

was to collect appropriate data, which work as a base for drawing conclusion and

getting result.

The project research type is DESCRIPTIVE RESEARCH TYPE in which I know what I have

to measure & also the adequate method for measuring it along clear-cut definition of

population I wanted to study.

Since the aim was to obtain complete & accurate information in the said studies, the

procedure to be used was also planned.

Following are the steps to be followed while carrying out diagnostic research studies

1) Formulating the objective of the study (what the study is about & why is itbeing made)

2) Designing the methods of data collection3) Selecting the sample4) Collection the sample5) Processing & analyzing the data6) Reporting the finding

Data Collection Methods:

Data was gathered through Primary and Secondary Data:

1) Primary Data -It consists of original information gathered for the specific purpose. This data is

generally collected by Observation, Survey or Experimental Method.

2) Secondary Method -It consists of information that already exists somewhere, having been collected

for another purpose. They offer the advantage of low cost and already

availability. With the help of Secondary Data collected from various magazines,

newspapers, Industries Trade Association and Computer. The actual sales of

the industries, its growth rates and the share of different companies in the

market were found out.

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Research Instruments

To collect the primary data, the most common research instrument used was:

QuestionnaireA questionnaire consists of a set of questions presented to respondents for their

answers. For that two types of questionnaires were developed:

For the present/prospective customers.

For the experts (i.e., Dealers, Distributors, etc.)

Questionnaires are enclosed in Appendices.

Sampling Plan -This call for three decisions:-

1) Sample Units:(Who is to be surveyed ?)

As the Air conditioner is still a luxury product so far the survey purpose, the

following people were considered :

Exporters

Banking Sector

Hotel Industries

Doctors

Computer Centers

Industrial Sector

High Income Class

2) Sample Size:(How many are to be surveyed?)

Due to the limitations in the budget, a small sample size was taken and

surveyed by adopting Judgment Sampling Procedure. In this method,

researcher uses judgment to select population member who are good

prospects for accurate information.

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3) Sample Procedure:(How they are to be surveyed?)

Three types of contact method are used:

The Mail Questionnaire

Telephone Interview

Personal Interview

For the present study, Personal Interview Method was chosen as it was the

most versatile of the three methods. Here the interviewer can ask more

question and can record additional observations about

Limitations of the Study

In spite of working under the banner of such a magnificent company and also under

the guidance of highly matured, capable, and understanding people certain

constraints do played the role of hindrance in the way of accomplishing the assigned

task. I would definitely like to share those aspects too

1) Small no. of sample size may give inadequate results2) Non-cooperation shown by certain retailers and their ignoring attitude.3) Each and every region is not easily accessible.4) Some of the confidential information viz. margins, schemes, policies and sales

figure were not disclosed by the competitors.

5) A limited time frame i.e. of just 8 weeks, due to which we were not able toreach those destinations which we wish we would.

6) Secondly, we cannot say that the data taken for our study is fully adequate toget the desired or accurate result.

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ANALYSIS AND RESULTS

DemographicsIn order to determine the demographics, consumers were asked questions regarding

Gender, Age, Household income, no. of A/Cs owned in a household etc. This will help

LG in taking decisions regarding Promotion, Advertisements and Schemes etc. to be

offered to consumer.

Gender of the buyer

Inference:

As it can be seen 71% of the buyers (decision makers) are male, for buying an A/C. LG

can take advantage of this by advertisements targeted towards the male audience to

attract them more.

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Age of the

buyer

Inference:

It was observed that 53% of the consumers were below the age of 30 years thus it is

required that advertisements and schemes should target this segment as most of

buyers will be first time buyers hence it can help LG in making a long term customer

relationship.

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Inference:

1) 64% of the surveyed consumers were living in Nuclear family (4 or less than 4family members).

2) 70% of the families had 1 or 2 members with earning power.3) Offers such as family holidays can be provided with every purchase of the A/C

to lure the customer.

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Inference:

1) 58% of the consumers were having income between Rs. 3 to 6 Lakhs perannum

2) And 55% of above mentioned consumer below the age of 30 years.3) Hence they have Low Disposable Income and are more price sensitive.4) By providing an A/C at right price point this segment can be tapped again to

buy LG.

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Air Conditioner Ownership

Ownership of A/C

Q. Do you own an Air Conditioner?

1) Yes2) No

Inference:

1) 85% of the respondents surveyed already had A/C in their house.2) 15% were potential A/C customers.3) Most of the owners were there to buy their second A/C and they had clear idea

about which A/C to buy.

4) Their choice was more affected by the performance of the current A/C theyhad.

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No. of A/Cs in a Household

Q. How many AC(s) do you have at your home? (select only one option)i) 1ii) 2iii) 3iv) 4v) 5vi)Above 5

Inference:

1) 41% of the household had only one A/C installed.2) 24% had two A/Cs installed.

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A/C Types

Q. What are the types of AC(s) you have at you home?

(Multiple options can be selected depending upon the number of AC(s))

i) Windowii) Splitiii) Cassetteiv) Tower

Inference:

1) Window A/C is still the popular choice among the consumers with 61% ofownership.

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A/C Tonnage

Q. What is the tonnage of AC?

(How much ton AC(s) you have at your place? Multiple options can be marked)

i) 0.75 Tonii) 1 Toniii) 1.5 Toniv) 2 Tonv) 3 Ton and Above

Inference:

1) 65% of the consumers surveyed had 1.5 Ton A/C installed.2) Whereas 0.75 tone was least preferred by consumers with only 3% of

ownership

3) Most of consumers prefer 1 Ton A/C over 0.75 Ton A/C.

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Star Rating

Q. Do the AC(s) have star rating?

i) Yesii) No

Inference:

1) 80% of respondents already had star rated A/C installed in their home2) It can be said that people are getting conscious regarding power consumption

and environment.

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Ownership of A/C Brands

Q. Which Brand of AC(s) are you using?

i) Samsungii) LGiii) Onidaiv) Godrejv) Voltasvi) Other (Please specify)-

Inference:

1) LG had the maximum ownership, 37% of the total respondents.2) Second most owned A/C brand was Samsung.3) This was due to their aggressive promotion.

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Inference:

1) This pie-chart depicts the A/C brands which potential customer is thinkingseriously considering to buy.

2) Maximum (67%) of them selected LG.3) This was due to its good service and performance.

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Inference:

1) 45% of the current LG users wanted to buy LG again.2) This is a bad news because more than half of the users do not want to buy LG

again.

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Inference:

1) Consumers who wanted to buy LG again chose this brand because of itsimpeccable service and good performance.

2) Brand name came after these two.

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Inference:

When asked for the reasons to not buy LG again mainly were

1) Other brands have better performance than LG.2) Or the brand name is good than the LG.

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Inference:

1) 48% of the consumers selected word of mouth as their most influencingmediums in form of friends, relatives or the dealer himself.

2) TV was select as the second most influencing medium.

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Findings from Dealers Survey

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Dealer Satisfaction with LG Scheme

LG Scheme- This scheme was given with LG A/Cs in which when a customer buys a LGA/C he/she gets a Reebok Gift. In order to obtain these gift customers has to register

him/her through internet and then send a Rs. 99/- Demand Draft to LG. And the gift

will be delivered to the customer.

Inference:

Mostly dealers were not satisfied with scheme as it involved filling up of online

form and sending of Rs. 99 demand draft which is more of a hassle to customer than a

pleasant experience.

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Inference:

Besides the DD problem many dealers never had the scheme in their shop.

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Observations from Dealers

The supplies of LG A/Cs are very LOW, customers are ready to buy LG but due

to low SKUs we are unable to fulfill their demand. And they end up buying

other brands.

Most of the models shown in Brochure are not available in the shop hence

they are reluctant to show brochures to the customers.

Some dealers also complained about the POP being not updated regularly,

whereas as Samsung is very aggressive in its promotions.

Dealers also complained that some of registered LG dealers are de-selling LGA/Cs but those who are actually selling LG are not getting its dealers

membership.

There were many dealers who were not even aware of the ongoing Reebok

scheme.

Dealers were provided with LG reebok scheme posters but there was no actual

scheme present in that shop.

Customers are asking for discount rather than the Reebok gift. Whereas some

dealers even praised the coupon scheme given with Whirlpool A/C

Quality of the gift is sub-standard.

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Observations from Sales and Service Dealers (SSD)

Club A.C.E

Club A.C.E (Air-Conditioning Experts) is a club started by LG which SSDs and A/C

solution plazas were involved. The Club members are given special reward system in

which these dealers are rewarded on a point system for selling a specific no. of A/Cs.

These members are taken care properly by sending free gifts on regular basis.

The following were the observations

Almost all the SSDs that were surveyed had LG A.C.E club membership but there was

a huge problem, all the SSDs which have the membership had following problems:

1. Nobody contacted them after they received their membership cards and gifts,some of the SSDs never received Membership cards only the Gifts were

received.2. They had no clue about the reward system and the point system.3. Those who knew about the point system said they never knew how much

points they have as the Website never worked.

4. One of the shop keeper even tried calling the club but nobody picked up thephone.

5. Many of the SSDs never checked back again.

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Other SSD observation apart from Club A.C.E

Most of the SSDs complaint about unresponsive LG executives and said thatLG is not taking proper care of these SSDs

They also complained about the distributors, that they are selling A/Cs for the

less price and these SSDs cant compete with that price.

They get very less margins from LG A/Cs, compared to Hitachi, Videocon ,

Daiken etc.

Some of the SSD dealers suggested that LG should capture corporate market

by taking Architects and constructors into confidence because these peoplecan influence decision on Air Conditioning.

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Conclusion

From Customers

LG has a 37%market share in the organized A/C market which includes major

players such as Voltas, Samsung, Onida, Godrej , and Panasonic.

Samsung has emerged as the second largest market player .

43% of the respondents opted for LG A/C again followed by 21% for Samsung.

Pricing of LG A/Cs (Split and window) are not competitive in comparision with

Godrej, Onida & Panasonic.

Word of Mouth was rated most the most influential medium followed by TV.

Quality of LGs product was appreciated on the average.

LGs After Sales Service is considered the best among the competitors.

A.S.S is done within 24 hour of complaint registration.

Customers are preferring star rated A/Cs as they concerned about power

consumption.

The Product Range of LG is very good ;customers get a lot of choice in terms of

design and features.

There is an acceptable level of advertisements being aired in the NCR region.

Repeat buyers do not opt for LG since most of them are moving to the higher

segment like Hitachi, OGeneral, Daiken, Bluestar etc.

The LG Reebok scheme is not attracting customers as it requires the customer

to fill an online form and send a Demand Draft to LG in order to receive the

gift.

LG advertisements are not easily understood by an average consumer.

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For Dealers

Many of the dealers are not satisfied with the Reebok gift schemes provided by

LG. Customers is prefer discounts to the free gift.

LG had the maximum sales followed by Samsung.

Availability of the product is inadequate to the demand at the height of the

buying season

Promotional material including POPs, banners and Brochures put up by LG

found favour with the dealers.

It is not necessary for the dealer to have a service department as the after

sales service of LG is more than adequate to meet ASS requirements..

Sales and service dealers are not happy with the Club A.C.E reward systems.

Sales and service dealers are getting A/Cs at a higher price from LG as compare

to the A/C sold through the distributor channel hence they are having lower

margins when compared to a normal dealer.

Most of the dealers provide installation through their own resources..

LG also provides training program for dealers.

Sometimes LG takes a long time to deliver A/Cs to direct buyers (i.e. SSD etc.).

Most of the delivery to the regular distributor is done within 36 hours of

request.

Dealers are getting low margins from LG A/Cs in comparison to Voltas,

Samsung, and Onida

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Suggestions

Price:

LG should reduce the price of the A/Cs in order to compete with brandslike Onida, Samsung, and Godrej.

Promotion Schemes :

Incentives to the customers should be given to attract them, like a free giftin the way of credit cards, inter cards, executive watches, membership of

executive clubs, camera, mobile phones, etc. was purchase of every A.C.

The unit wise incentives can be given, like worth of gifts should beincreased depending upon the increase in the number of units purchased.

For examples, for purchase of two air-conditioners a pair of Ray Ban SunGlasses can be given, for three or more units, a music system can be given.

Handsome Discount or free gift on a joint purchaseof television, audiosor refrigerators along with an A.C. can be given to the customers. It will

help the company to make the customer totally LG products oriented, thus

paving way for other LG products in that house.

The existing actual loyal customers are motivated through promotionschemes, like if any existing customer helps in bringing a demand of A.C.,

he/she can be awarded by a gift. A.C., being a luxury service based andcostly product, people generally discuss with other A.C. users before

buying. Thus their involvement in buying a brand and the product is very

high. This gift will be like fixed discount in % for buying any LG Product once

in a year.

Advertisements:

Electronic Media has a very effective reach in each and every potentialhousehold, but LG is not using this media effectively. LG must have very

effective and attractive T.V. and radio advertisements, so that all the

family members can be acquainted with the special features of LG A.C.s.

This is necessary because the decision of purchasing any high involvementproduct has the pre purchase consent of all the family members.

Print Media has a widespread reach to the customers and it makes a goodimpact on them when they read advertisements in newspapers and

magazines, so there must be frequent advertisements in magazines and

local newspapers on corporate level.

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The advertisements should be of bigger size and more attractive withsome unique features. And at least one colorful advertisement must be

given in the newspaper in a month at the time of season.

Contact Building :

LG must arrange timely get-together for building contacts with higherofficials of the corporate and government, which will help in developingand strengthening their brand loyalty towards LG.

There should be schemes for Architects, Builders and Interior Decoratorssuch as subsidized A.C.s for their offices, free gifts with every unit sold,

etc., so that good contacts can be maintained with them.

Display Model :

Dummy A.C.smust be arranged for the display at the dealers showroomwith stand.

Product availability :

Since LG has a very good brand equity in the market, in terms of strongbrand image, wider brand awareness, product quality and after sales

service, so there is a rising trend in the demand of LG A.C.s but due to the

demand exceeding the supply, the product is poorly available to the

customers sometimes at that time, benefit goes to competitors.

So, to create good brand image of LG A.C.s in the market, to bui ld goodrelations with the customers and to retain customer loyalty, it is very

essential that the product must be available all the time.

After Sales Service :

A Very good and quick sales service not only satisfies the customer havinghigh expectations but also provides him a feeling of satisfaction and thus

ensures his loyalty towards the brand. For thus, LG must provide a sound

facility and faculty for technical training for the dealers to train their

service personnel. These training centers must be setup at branch levels to

facilitate easiness in providing training.

Leaflets : Leaflets for A.C.`s which are being supplied to dealers have information for

all type of A.C.`s being shown together. This leaflet supplies all the

information concisely for all type of A.C.`s but it appears that this leaflet

falls to create interests about a particular A.C. according to the

requirement of the customer.

In addition to this leaflet, separate single sheet leaflet must be designedfor separate A.C.`s By this way, customer will spend more time in seeing

and understanding about the particular A.C. according to his requirement.

This will create more interest in customers mind which will lead into moreacquaintance and more information about that particular A.C.

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BIBLIOGRAPHY

1) www.lge.com2) www.google.co.in3) www.wikipedia.com4) C.R. Kothari, Research Methodology5) Philip Kotler, Marketing Management

http://www.lge.com/http://www.lge.com/http://www.google.co.in/http://www.google.co.in/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.co.in/http://www.lge.com/