INTRODUCTION Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the marketWith the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashersConsumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to theConsumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India. Classification of consumer durables sector1. Consumer electronic include Vcd/Dvd, home theatre, music player, color television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc2. White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc. 3. Moulded luggage include plastics4. Clocks and watches 5. Mobile phonesScope:-

1. In term of purchasing power parity (ppp), India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest.2. Indian consumer durable market is expected to reach $400 billion by on 20103. India has the youngest population amongst the major countries. There are lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25.4. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year. And there are 6 million rich household in India.

5. The upper-middle and high-income household in urban areas are expected to grew to 38.2 million in 2007 as against 14.6 million in 2000.

Brands in consumer electronics sector:

MNCsNATIONALREGIONALLG)SAMSUNG)KOREA ONIDABUSHHYUNDAI)VIDEOCONCROWNBPLSALORATCL)CHINAGODREJT-SERIESHAIER)VOLTASWESTONIFBBELTAKPHILIPS)HOLLANDOSKAR

PANASONIC)SHARP)HITACHI)SANSUI)JAPANAKAI)AIWA

WHIRLPOOL)ELECTROLUX

TODAY Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development, besides launching new platforms in information technology and related areas,

LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. . Before briefing, I have divided the introduction part into three main sub parts.1. LG Global2. LG India3. LG BAREILLY

COMPANY PROFILE

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.

The Symbol:The symbol of LG is the face of future. The letter L and G in a circle symbolizes world, future, youth, humanity & technology.LG philosophy is based on humanity. It also represents LGs efforts to keep close relationship with our customers around the world.

The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color.

Red color represents our friendliness and gives a strong impression of LGs commitment to deliver the best. The circle symbolizes The Globe. The stylized image of a smiling face in the symbol conveys Friendliness and Approachability. The one eye on the symbol represents Goal-oriented, Focused & Confident.

The slogan of LG is Lifes Good. It expresses Brands Value, Promises, Benefits, Personality.The PartnershipLG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship. This illustrates that management and workers are not in a vertical relationship, but in a horizontal one.This culture is necessary for LG Electronics as it strives to become one of the world's top companies. Such a relationship is transformed into a value-creation relationship whereby both parties endeavor to address mutual problems and create new values together.History of company:-

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners.The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG 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 of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.Global OperationLG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees.

LG Group1. LG.Philips LCD 2. LG Chemical 3. LG Telecom 4. LG Powercom 5. LG Twins 6. LG Dacom

Business areas and main productsMobile communications

(a) CDMA Handsets, (b) GSM Handsets, (c) 3G Handsets, (d) Cellular PhonesDigital appliancea) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net,g) Compressors for Air Conditioners and RefrigeratorsDigital displaya) Plasma TVs, b) LCD TVs,c) Micro Display Panel TVs, d) Monitors, e) PDP Modules, f) OLED Panels, g) USB Memory,

Digital mediaa) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CDRW, e) Notebook PCs, f) Desktop PCs, g) PDAs, h) PDA Phones, i) MP3 Players, j) New Karaoke Systems, k) Car InfotainmentLG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies.1. 3M2. SUN3. YAHOO4. PHILLIPS5. TOYOTA6. MICROSOFT7. HP8. GOOGLE9. GE

And the number follows many more..

In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries.In Mar. 2007 LG Electronics and Google formed a strategic alliance.Both companies will work together to release, market, and offer LG mobile phones with Google services (search engine, map, email, and blogs.)

LG BRAND IDENTITY:-The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle with intelligent features, institutive functionality and exceptional performance.The brand platform:-The LG brand is composed of four basic elements 1. Value2. Promise3. Benefits4. Personality

The Brands core Value that never changes. a. Trust,b. Innovation,c. Peopled. Passion

The benefits that are consistently delivered to the customer includes Reliable products Simple design Ease of use Extraordinary ExperiencePersonality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly

The Internal Culture of LG:LG practices four cultures1. Learning Culture 2. Boundary less Environment 3. A Carrier4. Growth

According to LG, the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning.

Boundary less Environment means that there is no difference between the levels of employees. There is transparency between the work and mutual understanding between all the employees. A carrier is highly growing in LG and one who is the employee can develop their carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality.Growth in LG is very high for those who are in the company and for those who want to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth.

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 LeadershipWe are focusing 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.From top to bottom:No.1 LG is the VISIONJeong-DO Management is LGs unique application to ethics. LG will succeed through fair management practices and constantly developing our business skill.

A) Honest with our customer b) Providing great values to customer through constant innovation & and development. c) Equal opportunitiesd) Equal Treatment Management Principle - Creating value for customer

Code of conduct of LG:

1. Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value 2 Fair competition Pursuit of Free Competition Compliance with Laws and Regulations

3 Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners

4 Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest

5 Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity

6 Responsibilities to society and country Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation

LG 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). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crs.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 and Microwave Ovens.''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products.LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings.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 Cr.

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.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. Challenges in India

The challenges faced by LG when entered in Indian market

1. Low brand awareness about LG in India.2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).3. High import duty4. Compitition from local market players and other MNCs in consumer durable segment.5. Price sensitiveness of the Indian consumer

LGEI over comes these challenges to emerge as Innovative marketing strategy 1. Launch new technologies in consumer electronic and home appliances. 2. 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.3. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more then US$ 8 million on advertising and marketing in this sport.4. LG has differentiated its product using technology and health benefits. CTV has Golden eye technology Air conditioner has Health air system and microwave ovens have the Health wave system.

Local and efficient manufacturing to reduce the costTo overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and BAREILLY. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce 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.

R&D potential LG has the research and development facilities in Bangalore and BAREILLY. Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product.

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 channel partners.

Product localization:-

1. Product localization is the key strategy used by the LG2. LG came out with Hindi and regional language menus on its TVs.3. Introduced the low-priced Cineplus and sampooma for the rural market.4. LG was the first brand to introduce gaming in TVs in continuations of its association with cricket LG introduce cricket game in CTVs

LG market share of consumer appliances and consumer electronic:-LG position of CTV in various states in India

LG position of REF in various states in India

LG position of WM in various states in India

LG position of AC in various States in India

LG position of Audio & Home Theater in various in India LG position of DVD in various in India

LG position of MWO in various states in India

This analysis is based on the ORG survey conducted by LG which represent the LG position of different consumer durables in various states in India. I select different brand in different category as per the market share and the demand of product in market. This analysis represents the LG market position during the period of March 2008. It shows that LG has captured maximum market share almost in every category. LG and Samsung have the maximum market in consumer durable market but LG dominate the almost all the category in consumer durable. 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.

LG Electronics, 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. Shin remarked that the company was targeting an increase of exports to $300 million in 2008 from $230 million in 2007.

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Distribution and MarketingThe company has number of dealers and warehouses. They have LG exclusive shope. For the marketing of the products a number of activities are followed1. Exhibitions are conducted from time to time.2. Society and college activities are conducted.3. Hoarding, Posters, banners are used so as to grab the attention of the costumers. 4. Day to day advertisement in leading newspaper.5. Discount at festival time.6. For dealer relationship they arrange dealer meeting at several time in the year 7. LG divide dealer in gold silver etc. category to know the performance of the dealers.8. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product.9. LG also uses the radio FM for the promotion activities.10. Also provide capon and scratch card for festive season.

The logistics (Supply Chain Management)Visit to warehouse of LG BAREILLY

Logistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.Logistics Management is that part of the supply chain, which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.5Rs of Logistic followed by LG:1. Right Time2. Right Place3. Right Condition4. Right Cost5. Right Handling

The LG Factory is located at NOIDA . There are three types of Warehouse-1. Mother Warehouse2. Branch Warehouse3. Spare part warehouseThe mother warehouse is that where the products from the factory are kept and from that warehouse, the products are sent to the branch warehouse. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

5s of warehouse, which the LG strictly follow.1. Sweeping2. Sorting3. Systematic Arrangement4. Simplification5. Self- discipline

In warehouse, the products are pinup with 3-color paper to get the knowledge about the delivery.1. Red Card To stop the product going into market, 2. Green card To allow the product for delivery in market,3. Yellow Card After the product labeled with green, allow this to move in marketDistribution Time:- Local delivery 4 hrs. Upcountry delivery - 12 hrs. Within 200 km. 24 hrs. Beyond 200 km. 48 hrs.The above distribution time is the time of delivery of products from warehouse to the market place, which the logistic department follows to fulfill the demand in the market at right time. In LG, we have the following process, which is followed in logistic through ERP. Order Processing Invoicing Indenting ReportOrder Processing booking for dealers /distributorsInvoicing after billing process/bill generationIndenting requirement (Pdt Unit to branch unit)Report distributed to all

In warehouse, there are two mode of dispersion of product from one place to another within. a) Hydraulic b) ManualIn addition, there are 35 fire extinguishers to prevent the accidental hazard within the warehouse due to fire. These fire extinguishers are valid up to year 2011. One has to follow the rule of NO Smoking within the warehouse

Logistics Ten Commandments Golden Rules1 - Warehouse 5S to be strictly followed FG 2, 5 & 7 to be properly maintained.2 - 100% Bar-coding for all inward & outward transaction.3 - Follow standard pick ship process religiously.4 No inventory mismatch, shortage or excess monthly 100% physical stocktaking.5 Nil 30+ for FG 2, 3 & 5.6 Nil transit damage.7 File insurance claim within 2 days. Settle all claim all within 30 days.8 No inter branch transfer without HO clearance.9 PSI feeding into system by 25th of every month. Ensure 90% accuracy.10 Apply physical FMFO.

Problem1- In transit material damage checking.2- Cost target achievement.3- Natural events tracking.

Equipments

1- 100% Bar code scanner.2- ERP Invoice Generation Process.3- Hydraulic Trolleys for material movement.4- Pallets for safety of material.

WAREHOUSE WITH THE EQUIPMENT.

WAREHOUSE: REFRIGERATOR AND CTV SECTION

Customer serviceThe best and the biggest international brands are here in India but the irony if it all: where is the after-sales-service? So integral to a brand, so critical for its success and so taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. So whats stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer durable companies, stockiest and dealers, analysts and market researchers to get a feel of whats really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories.Customers support following the purchase of a product or service. In some cases, after-sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken.

In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing with Uttar Pradesh. 1. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to beef up the number to 10,000 by the year-end. 2. "The company has offered a scholarship to the selected students for the last six months of their training programme," 3. The company will invest Rs 8 Cr (Rs 80 million) in employee development programme this year with an aim to attain a 8 per cent attrition rate. 4. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand.5. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in Dermots public interview in ET on Wednesday). This shows commitment that Service must be made into a marketing differentiator, and leveraged thus.6. LG has the widest service network across the country; some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. While the sale size may also be a nice multiple from nearest, it shows the company is ready to put our money where our mouth is.

7. The company has introduced a 211 service - once you register your complaint, we will call you back in 2 hours (hence 2), set up an appointment for the next convenient day for you (hence the first 1), and show up in the promised 1-hour slot (hence the second 1). If the next convenient day for you is the next day, thats great too. Its a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities, and thus not leveraging any mileage from it.8. The company is promoting 211 through ATL, probably the first time after-sales service is being communicated in this fashion by any product company. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of which revolve around prompt response.9. The first LG-owned service centre opened in Gurgaon. (Service in India generally works through authorized service centers, in LGs case they work exclusively for LG.) A company-owned service centre tries that much harder, knows things better, and can even contribute as a revenue center.

CONSUMER SURVEY DURING EXHIBITIONFrom 16th to 25th May a consumer exhibition was organized at the college of Engineering ground. The exhibition was sponsored by Sakal group in which number of companies participated.

EXHIBITIONS PICTURES SHOWING THE PRODUCTS

LITERATURE REVIEWLG 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). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crs.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 and Microwave Ovens.''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products.LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings.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 Cr.

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.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. . PRODUCTS(e) CDMA Handsets, (f) GSM Handsets, (g) 3G Handsets, (h) Cellular PhonesDigital applianceh) Air Conditioners, i) Refrigerators, j) Microwave Ovens, k) Washing Machines, l) Vacuum Cleaners, m) Home Net,n) Compressors for Air Conditioners and RefrigeratorsDigital displayh) Plasma TVs, i) LCD TVs,j) Micro Display Panel TVs, k) Monitors, l) PDP Modules, m) OLED Panels, n) USB Memory, o) Flat Panel Computer Monitors

Digital medial) Home Theater Systems, m) DVD Recorders, n) Super Multi DVD Rewriters, o) CDRW, p) Notebook PCs, q) Desktop PCs, r) PDAs, s) PDA Phones, t) MP3 Players, u) New Karaoke Systems, v) Car Infotainment

Research MethodologyResearch 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.Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methodsResearch design:Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Types of research are: Descriptive ResearchThe type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research.

Data collection methods:After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data.

Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data. Data analysis and interpretation1. Questionnaires2. Pie chart and Bar chart

DATA ANALYSIS & INTERPRETATIONQ1. Have you purchased any consumer durable during Exhibitions? Yes No

Inferences 1. 65 % of Customer have not purchased any consumer durable from exhibitions.2. Only 35 % people have purchased.3. It shows that consumers are coming in the exhibition for knowledge of product and also they want to know that weather there is actual price difference in exhibition and shop or not. 4. Consumer also want to compare to the different brand which are available in the exhibition.5. So exhibitions are more useful to increases brand awareness.

Q.2While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability

Inference1. 30% of customer gives importance to price. So it shows that Indian consumers are very price sensitive. They give more importance to price over the brand.2. 26% give importance to brand. So price and Brand matter a lots for the costumers. And they are also want best brand in best price.3. 19% to product feature Service 16% and durability 9% Service is also a big factor for the customer they are less interested in the durability.

Q3. From where you prefer buying consumer durables Exhibitions Co.shoppee Showroom

Inference: 1. A majority of customers prefer to buy from showrooms. Very less proposition of customers buys from Exhibitions.2. 47% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts.3. People are less interested to buy from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product.

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons Attractive Price Service Demonstrations Offers

Inference 1. Customers buy from showrooms because of the service and convenience. These are two main factors.2. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service.3. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms.4. Price also a factor that attract the customer in these showrooms.

Q.5.Which consumer durable you have and of which brand? CTV LCD PLASMA REF WM MW AC

Inference In CTV section maximum customers have Onida, in LCD Sony is the leader, In plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM there are companies and in AC also.

Q.6. How frequently you change your consumer durables? 1-3 years 3-5 years 5-10 years More than 10 years

Inference 1. Customers prefer to change consumer durables within 5-10 years. In India people do not change consumer durable frequently.2. 23% customers do not change their consumer durable within 10 year. 3. It represent that Indian consumer do not prefer to change their consumer durable frequently.

Q.7.Do you prefer any financing scheme to purchase consumer durables? Yes No

Inference Majority of customers do not prefer any financial scheme.

Findings1. By calculating the display share we found that in most of store LG has 50% display share almost all categories.2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale.3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG.4. We also came to know while visiting the shops that there was big problem of after sale service.5. Many dealers were facing the problem of after sale service because there is no follow up calls from LG.6. Demo calls also not done properly.7. The top competitor of LG product in BAREILLY is SAMSUNG.

LIMITATIONSEvery study has certain limitations. In my study, also there were certain limitations, which I could not able to solve.

1. The research was conducted in a very small area.2. My research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer. This was biggest drawback of my study.3. Time factor was also important for me. I had only 60 days to complete my research, for which a full-fledged report was insufficient for me.4. The customer filled the questionnaire mostly in careless manner, so it was difficult to make them hold for time. 5. I had only found the upper-middle class family to fill up the questionnaire, but generally, an average middle class family was required for the study.6. The sample size is also very small which represent my research on consumer behavior

My study is not recognizable in whole INDIA as well as outside Ranchi due to the above limitations and less area coverage.

RECOMMENDATIONS AND SUGGESTIONS1. LG should improve its after sale service because its hits badly LGs market share in Bareilly region.2. More detailed customaries service is to be provided.3. The training to in shop demonstration should be given at frequent time interval and feedback should be considered positively.4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person.5. LG should try new dealer who have the potential. So they can target more market.6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung.7. The marketing managers should make better relations with dealers and reputation of the company.

CONCLUSION

Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas Allwyn and Kelvinater. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth the industry. The rising income levels double-income families and consumer awareness are the main growth drivers of the industries.Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest nearly Rs 500 Cr in India this year in research and development, brand-building and other marketing initiatives.The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development, besides launching new platforms in information technology and related areas,

BIBLIOGRAPHY

www.lgindia.com www.google.com www.wikipedia.com Business world Business today LG magazine Economics times News paper Times of India

Questionnaire Q1. Have you purchased any consumer durable during Exhibitions?a) Yesb) No

Q.2While purchasing consumer durable which parameter influences you?a) Priceb) Product featurec) Brandd) Servicee) Durability

Q3. From where you prefer buying consumer durablesa) Exhibitionsb) Co.shoppeec) Showroom

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasonsa) Attractive Priceb) Servicec) Demonstrationsd) Offerse) Convenience

Q.5.Which consumer durable you have and of which brand?a) CTV-------------------b) LCD-------------------c) PLASMA-------------------d) REF-------------------e) WM-------------------f) MW-------------------g) AC-------------------

Q.6. How frequently you change your consumer durables?a) 1-3 yearsb) 3-5 yearsc) 5-10 yearsd) More than 10 years

Q.7.Do you prefer any financing scheme to purchase consumer durables?a) Yesb) No

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