Dinu Mudukad LG MUMBAI

8/14/2019 Dinu Mudukad LG MUMBAI

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Submitted in partial fulfilment of the course requirements of

Masters in Business Administration

Dated: August 31, 2008

Submitted by -

Dinu Mudukad (CPG 07 BM 029)Amrita School of Business

Amrtia Vishwa Vidyapeetham

Coimbatore- 641105

Under the guidance of:

External Guide: Faculty Guide:

Mr. Nishkam Bhasin Shri. Easwar Krishna Iyer

Branch Manager Professor, Marketing

LG Electronics India Pvt. Ltd Amrita School of Business

Mumbai Branch Office Ettimadai, Coimbatore


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DECLARATION

I, Dinu Mudukad, second year MBA student of Amrita School Of Business, hereby

declare that the project titled Why LG is not the market leader in the GSM

mobile segment in the Mumbai region, has been done by me under the guidance of

Prof. Easwar Krishna Iyer, Asst. Professor Marketing, Amrita Vishwa

Vidyapeetham, Mr.Nishkam Bhasin, Branch Manager at LG Electronics India Pvt.

Ltd, Mumbai and Mr. Samir Sheik, Area Manager - GSM, LG Electronics India Pvt.

Ltd, Mumbai during the period May-June 2008.

I also declare that this project has not been submitted by me, fully or partially, for the

award of any other degree, diploma, title or recognition elsewhere.

Date: August 31, 2008 Dinu Mudukad,

Amrita School of Business


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ACKNOWLEDGEMENT

I have great pleasure in thanking LG Electronics India Pvt. Ltd for having given me

this opportunity to do my Summer Project with them.

I would like to thank my Project Guide in the Company, Mr. Nishkam Bhasin and

Mr. Samir sheik, for their invaluable assistance and support.

I also take great pleasure to thank my project guide in college, Prof. Easwar

Krishna Iyer for his guidance throughout the project.

I would like to thank all the employees and customers of LG, who helped me

complete my project successfully.

Finally, I would like to extend my esteem gratitude to my family for the constant

support and encouragement. I would also like to thank the Almighty without whose

grace; this endeavour of mine would not have been possible.

Dinu Mudukad

Amrita School of Business


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EXECUTIVE SUMMARY

India is the fastest growing mobile phone market in the world, adding around 6million subscribers every month. The total mobile phone user population in the

country is around 250 million. It is again expected to grow and reach 500 million by

2010. One of the major reasons for this particular phenomenon is that the disposable

incomes of the people are increasing. In this 250 million more than 50% are GSM

users. The size of the Indian mobile handset market was found to be Rs 8,805 crores.

India is currently the third largest mobile phone market in the world.

LG Electronics India Pvt. Ltd is the market leader in consumer durables industry and

is recognised as a leading technology innovator in the information technology and

mobile communications business. It is a wholly owned subsidiary of LG Electronics,

South Korea, and was established in India in January, 1997. It has an impressive

portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT

products. It is the fifth largest mobile handset manufacturer in the world and it also

retains the same position in India. In India, LG is the market leader in the case of

CDMA phones with a market share of more than 59%.

The Mumbai market scenario is not favouring LG GSM mobiles. Company stands last

when we consider major players like Nokia, Sony Ericsson, Samsung, Motorola etc.

LG GSM mobile segment has a current market share of 2% in Mumbai region. LG

wants to achieve the feat of being the top seller by bringing in better priced models

which are also better phones and also by improving the support from the retailers by

providing better schemes. LG wanted to know the reasons for why LG is not the

market leader in Mumbai market

The objective was to find out why LG is not the market leader in Mumbai region. The

entire project was divided into two objectives. First one was to find out the consumer

perception and the second one was finding out the retailers perception. The

effectiveness of promotional activities of the company was also checked


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The research design that followed started with an Exploratory Research, during this

period, interviews and discussions were conducted both with the company officials

and also the major mobile phone retailers. Mystery shopping was also instrumented.

Interactions with LG distributors and competitors distributors were also arranged. In

the consumers side depth interviews were conducted. This process helped to

understand and study the current scenario. From the study questionnaire was framed

for retailers and consumers. The survey was conducted across Mumbai, with a

retailers sample size of 100 and consumers with 200.

At the end of the study, a few of the conclusions and recommendations that were

arrived at following study have been mentioned below:

Retailers are not satisfied about the current scheme; company should introduce

new schemes which benefit the retailers. From the survey it is found that 65%

of retailers wanted more benefits and also satisfaction level of current scheme

is also very low

Company should increase shop promotional activities. In the 100 retail outlets

surveyed LGs presence was only in 18 retail outlets and market leader was

present in all the retail outlet surveyed

Company should improve the technical parameters of the handsets like the

ease of use, battery backup, signal strength etc. In the consumers survey, it is

found that the 157 consumers gave the above reasons for not preferring LG

GSM mobile phones and it is also found that the 43 consumers who has used

LG mobile phone gave very poor ratings for the above parameters

Company should give consumers more choice of products in the range of Rs

8000-12000 price tags. It is found that average budget of a consumer in

Mumbai comes in this range.

Company should improve the advertisement campaign to consumers because

in the survey it is found that consumers are less aware of LG mobiles and in

consumers surveyed only 30.5% has seen LGs ads. Those who have seen the

ad showed a poor recall.


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List of figures ................................................................................................................. 7List of tables ................................................................................................................... 9CHAPTER 1: INTRODUCTION TO THE PROJECT ............................................... 12

1.1 OBJECTIVE AND SCOPE OF THE PROJECT .............................................. 131.2 METHODOLOGY ............................................................................................ 131.3 LIMITATIONS .................................................................................................. 14

CHAPTER 2: INDUSTRY OVERVIEW .................................................................... 142.1 INDIAN SCENARIO ........................................................................................ 15

CHAPTER 3: COMPANY OVERVIEW - LG ELECTRONICS ............................... 173.1 Vision: Global Top 3 by 2010 ........................................................................... 173.2 Growth Strategy ................................................................................................. 183.3 Core Capabilities ................................................................................................ 183.4 The LG Brand .................................................................................................... 18

3.5 Positioning Statement ........................................................................................ 183.6 Slogan ................................................................................................................ 193.7 LG Electronics in Indian Mobile Market ........................................................... 20

CHAPTER 4: RESEARCH DESIGN .......................................................................... 214.1 Management Decision problem ......................................................................... 214.2 Marketing Research problem ............................................................................. 214.3 PROJECT FLOW .............................................................................................. 22

CHAPTER 5: OBJECTIVE 1 ...................................................................................... 235.1 APPROACH TO THE PROBLEM: - ................................................................ 235.2 METHODOLOGY ............................................................................................ 245.3 RESEARCH DESIGN ....................................................................................... 24

5.4 DATA ANALYSIS ............................................................................................ 255.4.1 QUESTIONNAIRE DESIGN ..................................................................... 255.4.2 SAMPLING PLAN ..................................................................................... 255.4.3 DATA COLLECTION AND CLEANING ................................................ 255.4.4 EXPLORATORY RESEARCH ................................................................. 265.4.5. SECONDARY RESEARCH ..................................................................... 285.4.6. COMPETITORS ........................................................................................ 315.4.7 New Offers from LG ................................................................................... 34

CHAPTER 6: OBJECTIVE 2 ...................................................................................... 356.1 APPROACH TO THE PROBLEM: .................................................................. 356.2 METHODOLOGY ............................................................................................ 36

6.3 RESEARCH DESIGN ....................................................................................... 366.4 DATA ANALYSIS ............................................................................................ 37

6.4.1 QUESTIONNAIRE DESIGN ..................................................................... 376.4.2 SAMPLING PLAN ..................................................................................... 376.4.3 DATA COLLECTION and CLEANING ................................................... 376.4.4 EXPLORATORY RESEARCH ................................................................. 386.4.5 SECONDARY RESEARCH ...................................................................... 39

CHAPTER 7: DATA ANALYSIS AND FINDINGS ................................................. 407.1. RETAILERS ..................................................................................................... 407.2 CONSUMERS ................................................................................................... 78

CHAPTER 8: RECOMMENDATIONS.................................................................... 113

8.1 RETAILERS .................................................................................................. 1138.2 CONSUMERS ................................................................................................. 114


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CHAPTER 9: REFERENCES ................................................................................... 116CHAPTER 10: APPENDIX ...................................................................................... 117

10.1 RETAIL QUESTIONNAIRE ........................................................................ 117 ...................................................................................................................... 117

10.2 CONSUMERS QUESTIONNAIRE .............................................................. 123

...................................................................................................................... 123

Figure 1. WORLD MARKET SHARE ...................................................................... 15Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS... 20Figure 3. PROJECT FLOW ......................................................................................... 22Figure 4. APPROACH TO OBJECTIVE 1 ................................................................. 23Figure 5. INDIAN GSM HANDSETS MARKET SHARE ....................................... 28Figure 6. NEW LAUNCHES IN MONTH OF MARCH08 ...................................... 29Figure 7. MUMBAI GSM HANDSET MARKET SHARE ....................................... 30

Figure 8. APPROACH TO OBJECTIVE 2 ................................................................. 35Figure 9. SEGMENT CONTRIBUTION TO ZONES ................................................ 39Figure 10. RATINGS OF NOKIA ............................................................................... 41Figure 11. RATINGS OF SONY ERICSSON ............................................................ 42Figure 12 RATINGS OF SAMSUNG ......................................................................... 42Figure 13. RATINGS OF MOTOROLA ..................................................................... 43Figure 14. RATINGS OF LG ...................................................................................... 44Figure 15. RATINGS OF FLY .................................................................................... 44Figure 16. PROMOTION OF NOKIA ....................................................................... 46Figure 17. TABLETOP OF NOKIA ........................................................................... 47Figure 18. WALL PAINTINGS OF NOKIA .............................................................. 47Figure 19. DISPLAYS OF NOKIAS NEW MODELS .............................................. 48Figure 20. NOKIA FLUX ............................................................................................ 48Figure 21. PROMOTION OF SONY ERICSSON ..................................................... 50Figure 22. TABLELTOPS OF SONY ERICSSON ..................................................... 51Figure 23. SONY ERICSSON WALL PAINTINGS .................................................. 51Figure 24. SONY ERICSSON FLUX ......................................................................... 52Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL ................................. 52Figure 26. PROMOTION OF SAMSUNG .................................................................. 54Figure 27.SAMSUNG TABLE TOPS ......................................................................... 55Figure 28. SAMSUNG WALL PAINTINGS .............................................................. 55Figure 29. SAMSUNG DISPLAYS OF NEW MODEL ............................................. 56Figure 30. SAMSUNG FLUX ..................................................................................... 56Figure 31. PROMOTION OF MOTOROLA.............................................................. 58Figure 32. MOTOROLA TABLETOPS ...................................................................... 58Figure 33. MOTOROLA WALL PAINTINGS ........................................................... 58Figure 34. MOTOROLA FLUX .................................................................................. 59Figure 35. PROMOTION OF FLY ............................................................................. 61Figure 36. FLY TABLETOP ....................................................................................... 61Figure 37. FLY FLUX ................................................................................................ 61Figure 38. FLY WALL PAINTINGS .......................................................................... 62Figure 39. FLY DISPLAYS OF NEW MODEL ......................................................... 62Figure 40. PROMOTION OF LG ............................................................................... 64Figure 41. TABLETOPS OF LG ................................................................................. 64


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Figure 42. LG WALL PAINTINGS ............................................................................ 64Figure 43. LG DISPLAYS OF NEW MODEL ........................................................... 65Figure 44. LG FLUX ................................................................................................... 65Figure 45. LIVE DEMO SUPPLY .............................................................................. 66Figure 46. LG SATISFACTION OF AWARENESS .................................................. 68Figure 47. MOTOROLA SATISFACTION OF AWARENESS ................................ 68Figure 48. NOKIA SATISFACTION OF AWARENESS .......................................... 69Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS ........................ 69Figure 50. SAMSUNG SATISFACTION OF AWARENESS................................... 70Figure 51. FLY SATISFACTION OF AWARENESS................................................ 70Figure 52. OFFLINE MODE ....................................................................................... 71Figure 53. PROBLEMATIC AREA - USERFRIENDLY .......................................... 72Figure 54. PROBLEMATIC AREA - OFFERS .......................................................... 73Figure 55. PROBLEMATIC AREA- PRODUCT RANGE ........................................ 74Figure 56. SATISFACTION LEVEL AFTER SALES SUPPORT.......................... 75Figure 57. SATISFACTION LEVEL OF ACCESSORIES AVAILABILITY ........... 76Figure 58. RETAILERS RECOMMENDATIONS ..................................................... 77Figure 59. BREAK UP- GENDER ............................................................................. 79Figure 60. BREAK UP - AGE ..................................................................................... 79Figure 61. BREAK UP OCCUPATION ...................................................................... 80Figure 62. BREAK UP ANNUAL INCOME .............................................................. 80Figure 63. HANDSET TYPE ...................................................................................... 81Figure 64 . AWARENESS OF LG .............................................................................. 81Figure 65. BUDGET .................................................................................................... 82Figure 66. FORM OF HANDSETS ............................................................................ 83Figure 67. DUAL SIM ................................................................................................. 84Figure 68. PHONE WITH BOTH GSM&CDMA ...................................................... 85Figure 69. ACCESSORY SPECIFIC .......................................................................... 86Figure 70. MEMORY OPTION .................................................................................. 90Figure 71. USER FRIENDLY ..................................................................................... 90Figure 72. LESS CHOICE ........................................................................................... 91Figure 73. LESS PRODUCT FEATURES .................................................................. 91Figure 74. PICTURE AND SOUND QUALITY ........................................................ 92Figure 75. BATTERY UP............................................................................................ 92Figure 76. AWARENESS OF MODEL ...................................................................... 92Figure 77. AVAILABILITY ....................................................................................... 93Figure 78.COST OF PHONE ...................................................................................... 93Figure 79. OTHER REASONS.................................................................................... 94

Figure 80. FIRST TIME EXPERIANCE..................................................................... 97Figure 81. HEATING UP OF PHONE ....................................................................... 97Figure 82. POOR BATTERY ...................................................................................... 98Figure 83. AVAILABILITY OF ACCESSORIES ...................................................... 98Figure 84. LOW SIGNAL STRENGTH ..................................................................... 99Figure 85. NOT SUITABLE FOR ROUGH USE ....................................................... 99Figure 86. FREQUENT COMPLAINTS ................................................................... 100Figure 87. POOR AFTER SALES SERVICE ........................................................... 100Figure 88. RATING OF USER FRIENDLINESS ..................................................... 104Figure 89. RATINGS OF PICTURE AND SOUND QUALITY .............................. 104Figure 90. RATINGS OF SIGNAL STRENGTH ..................................................... 105Figure 91. RATINGS OF BATTERY LIFE .............................................................. 105


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Figure 92. RATING OF AFTER SALE SERVICE................................................... 106Figure 93. RATING OF PROMOTION AND LOW COST ..................................... 106Figure 94. RATING OF LONG LASTING .............................................................. 107Figure 95. PRICE FACTOR ..................................................................................... 108Figure 96. RANGING TV& OTHER COMMERCIALS......................................... 109Figure 97. REACH OF AD ...................................................................................... 110Figure 98. AD FEED BACK .................................................................................... 111Figure 99. PREFERANCE OF TOUCH SCREEN .................................................. 112

Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS .................................... 40Table 2. RATINGS OF NOKIA .................................................................................. 40Table 3. RATINGS OF SONY ERICSSON ................................................................ 41Table 4. RATINGS OF SAMSUNG ........................................................................... 42Table 5. RATINGS OF MOTOROLA ........................................................................ 43Table 6. RATINGS OF LG .......................................................................................... 43Table 7. RATINGS OF FLY ....................................................................................... 44Table 8. PROMOTION OF NOKIA ............................................................................ 45Table 9 . NOKIA TABLETOP DISPLAY .................................................................. 45Table 10. NOKIA DISPLAY OF NEW MODEL ....................................................... 45Table 11. NOKIA FLUX ............................................................................................. 46Table 12. NOKIA WALL PAINTING ........................................................................ 46Table 13. SONY ERICSSON PROMOTION ............................................................. 49Table 14. SONY ERICSSON DISPLAY OF NEW MODEL ..................................... 49Table 15. SONY ERICSSON WALL PAINTING ...................................................... 49Table 16. SONY ERICSSON TABLETOP ................................................................. 49Table 17. SONY ERICSSON FLUX ........................................................................... 50Table 18. PROMOTION OF SAMSUNG .................................................................. 53Table 19. SAMSUNG WALL PAINTINGS ............................................................... 53Table 20. SAMSUNG TABLE TOP ........................................................................... 53Table 21. SAMSUNG DISPLAYS OF NEW MODEL .............................................. 53Table 22. SAMSUNG FLUX ...................................................................................... 54Table 23. PROMOTION OF MOTOROLA ................................................................ 56Table 24. MOTOROLA TABLETOP ........................................................................ 57Table 25. MOTOROLA WALL PAINTINGS ............................................................ 57Table 26. MOTOROLA DISPLAYS OF NEW MODEL ........................................... 57Table 27. MOTOROLA FLUX ................................................................................... 57Table 28. PROMOTION OF FLY ............................................................................... 59Table 29. TABLE TOP OF FLY ................................................................................. 59Table 30. FLY WALL PAINTINGS ........................................................................... 60Table 31. FLY DISPLAYS OF NEW MODEL .......................................................... 60Table 32. FLY FLUX .................................................................................................. 60Table 33. PROMOTION OF LG ................................................................................ 62Table 34. LG TABLE TOP .......................................................................................... 63Table 35. LG WALL PAINTING ................................................................................ 63Table 36. LG DISLPLAYS OF NEW MODEL .......................................................... 63Table 37. LG FLUX ..................................................................................................... 63Table 38. LIVE DEMO SUPPLY ................................................................................ 66


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Table 39. AWARENESS OF LG................................................................................. 66Table 40. AWARENESS OF MOTOROLA ............................................................... 67Table 41. AWARENESS OF NOKIA ......................................................................... 67Table 42. AWARENESS OF SONY ERICSSON ....................................................... 67Table 43. AWARENESS OF FLY .............................................................................. 67Table 44. AWARENESS OF SAMSUNG .................................................................. 68Table 45. OFFLINE MODE ........................................................................................ 71Table 46. CROSS TABULATION .............................................................................. 72Table 47. USER FRIENDLY ...................................................................................... 72Table 48. OFFERS ....................................................................................................... 73Table 49. PRODUCT RANGE .................................................................................... 74Table 50. AFTER SALE SUPPORT ........................................................................... 75Table 51. AVALABILITY OF ACCESSORIES......................................................... 76Table 52. RETAILERS RECOMMENDATIONS ...................................................... 77Table 53. TOTAL BREAK UP .................................................................................... 78Table 54. GENDER BREAK UP................................................................................. 78Table 55. AGE BREAK UP........................................................................................ 78Table 56. OCCUPATION BREAK UP ....................................................................... 78Table 57. ANNUAL INCOME BREAK UP ............................................................... 79Table 58. AWARENESS OF LG................................................................................. 80Table 59. BUDGET ..................................................................................................... 81Table 60. TYPE OF HANDSET PREFERENCE........................................................ 82Table 61. DUAL SIM .................................................................................................. 83Table 62. SUPPORT BOTH GSM & CDMA ............................................................. 84Table 63. ACCESSORY SPECIFIC ............................................................................ 85Table 64. LESS MEMORY OPTION ......................................................................... 87Table 65. NOT USER FRIENDLY ............................................................................. 87Table 66. LESS CHOICE ............................................................................................ 87Table 67. BAD PICTURE AND SOUND ................................................................... 87Table 68. LESS BATTERY UP................................................................................... 88Table 69. LESS PRODUCT FEATURES ................................................................... 88Table 70. NOT AWARE OF MODELS ...................................................................... 88Table 71. NON AVAILABILITY ............................................................................... 88Table 72. COST FACTOR .......................................................................................... 89Table 73. INTEREST FACTOR .................................................................................. 89Table 74. OTHER OPTIONS ...................................................................................... 89Table 75. FIST TIME EXPERIENCE ......................................................................... 95Table 76. HEATING UP OF PHONE ......................................................................... 95

Table 77. POOR BATTERY ...................................................................................... 95Table 78. AVAILABILITY OF ACCESSORIES ....................................................... 96Table 79. SIGNAL STRENGTH ................................................................................. 96Table 80. COMPLAINTS ............................................................................................ 96Table 81. ROUGH USE ............................................................................................... 96Table 82. POOR SERVICE ......................................................................................... 96Table 83. TOTAL RESPONDENTS IN RATINGS.................................................. 101Table 84. RATINGS IN USER FRIENDLY ............................................................. 101Table 85. RATINGS IN PICTURE & SOUNG ........................................................ 102Table 86. RATINGS IN SIGNAL STRENGTH ....................................................... 102Table 87. RATINGS IN BATTERY LIFE ................................................................ 102Table 88. RATINGS IN PROMOTIONS AND LOW COST ................................... 102


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Table 89. RATINGS IN AFTER SALES .................................................................. 103Table 90. RATING IN LONLASTING ..................................................................... 103Table 91. PRICE FACTOR ....................................................................................... 107Table 92. RANK FOR TV& OTHER COMMERCIALS ......................................... 108Table 93. LGS NEW AD ........................................................................................ 110Table 94. AD FEED BACK....................................................................................... 111Table 95. TOUCH SCREEN PREFERANCE ........................................................... 112


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This project was aimed at finding the reasons of LG not selling properly in the

Mumbai region, in retailers and consumers perspective. The whole project was

divided into two phases.

Phase one involved knowing more about the GSM handset market in this region,

learning more about the schemes that each company provides to the retailers, the priceprotection details of each company, the marketing strategies of each company and

also learn more about the LG strategies. This was accomplished by conducting expert

interviews, i.e. speaking with the major GSM retailers in the region. It also included

tracking of different promotional activities present in each of the outlets visited. The

other part of this phase included talking to the consumers about their general

preferences while buying a GSM mobile phone and analysing this data for utilising it

to increase the sales of LG.

The second phase was featured by data collection in both consumers and retailers

end with the help of properly framed questionnaires. Retailers survey was mainly

focussed under the distributors and consumers survey was mainly focussing on

different areas of Mumbai

An additional job that came in my way was to check whether the promoters were

good enough and whether they had adequate information about the product. This was

completely done in the retail outlets under different distributors in which they have a

company appointed LG promoter. The way used to accomplish this objective was

mystery shopping.


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1.1 OBJECTIVE AND SCOPE OF THE PROJECT

To find out why LG is selling less in the Mumbai region.

To find out the perception of retailers towards LG mobiles and its competitors

To find out the reach and effect of promotional activities in retail outlets

To find out the attributes a consumer considers while buying a mobile phone

To understand the consumers perception towards LG GSM mobile phones and

its competitors

To find out the awareness about LG GSM mobiles in consumers

1.2 METHODOLOGY

The entire primary research study was done in Mumbai market. The project was

conducted in both the retailers and consumers perspective. In order to provide a

current snapshot, the data collection was achieved through direct interviews and

questionnaire survey in both perspectives. The selected retail outlets under five

distributors were selected and survey was conducted. Questionnaire design was based

on the facts obtained from the exploratory research. One-on-one interviews withretailers were also conducted. The total sample size was 100 retailers. The technique

used to find out the effectiveness of promoters was mystery shopping.

The techniques used for the data collection was oneon-one interview with

consumers. The instrument used for data collection is Structured Questionnaire

which is designed from the findings in the exploratory research. The questionnaire

was administrated through the central, western and harbour parts of Mumbai. The

sample consists of the consumers aged 18 to 55 years. Sampling technique used is

judgemental. In addition to primary research the secondary data was collected from

magazines, internet etc.


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1.3 LIMITATIONS

1. The findings are based entirely upon the research conducted in Mumbai and hence

may not be applicable to other metropolitan cities on account of socio cultural

diversity and contextual factors.

2. Surveys should be taken periodically because the consumer perception will change

with time.

3. The accuracy of the data collected cannot be verified.

Mobile phones have gained a lot of popularity and are considered to be great

multimedia tools. Mobile phones are being used for entertainment purposes owing to

the introduction of new features every day. They have become more than just calling

and receiving devices. Mobile phone handsets now have more business-friendly

applications that can enhance anybodys business. With emerging technology, mobile

phones have become more than communication devices; they are the tools to stay

ahead of competitors and peers in the present times.

According to a report by RNCOS, the mobile handset sales increased from 482.5

million in 2003 to 561 million in 2004. But it was expected that there will be a slow

down in the growth rate of the sales in the next five years. The growth rate is expected

to be just 4.8 percent in 2008 and 2.6 percent in 2009. Even withstanding that, the

annual sales figures are predicted to reach 767 million by the end of 2009. Mobile

handsets with better and innovative features have great markets in the developed

countries and they have also gained large popularity among the population of these

countries. But it is said that it will be the developing markets which are not yet

saturated, namely India, Russia, Brazil, Mexico and China that will mainly contribute

to the global handset sales.


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Figure 1. WORLD MARKET SHARE

There are mainly five major players in the world market; they are Nokia, Samsung,

Motorola, LG and Sony Ericsson. Nokia is the market leader with 39.1% market share

with Samsung in the second position with 14.4%. Motorola and Sony Ericsson stand

with third and fourth market shares respectively with 8.4% and 8.2%. LG mobile

phone stands in the fifth position with a market-share of 6.2%. Others include players

like Apple, Benq, Blackberry, Dopod, Haier, i-mate, O2, Panasonic, Philips, and

Siemens etc.

2.1 INDIAN SCENARIO

India is a country with the third largest number of mobile users in the world. Still

India is considered as a great market for mobile phone growth. Less than 40% of the

countrys total area is covered by mobile networks and only 8 in every 100 Indian

owns a mobile phone. A lack of adequate infrastructure to support fixed landline

services has led to a situation where there are only 50 million fixed landline customers

in India, leaving the stage for mobile operators and thereby for the handset

manufacturers.

According to a research conducted by Gartner, they expect the mobile phone

production in India to grow from 31 million units in 2006 at a compound annual


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growth rate (CAGR) of 28.3 percent to reach 107 million units by 2011. According to

the same research, the mobile phone production revenue is expected to reach $13.6

billion by 2011, from $4.6 billion in 2006.

IDC has forecasted a 32 percent growth in the mobile handset market and the overall

shipments of mobile phones is expected to reach an astounding amount of 80 million.

As the mobile service operators are adding more than 5 million subscribers every

month, this growth in shipments can be expected. India is also considered as the

potential market for the mobile phone manufacturers such that many mobile phone

companies have decided to or have already set up mobile phone manufacturing units

in India. According to the same research, as many as 10,000 mobile phones are being

sold every hour in India.


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!"#$

3.1 Vision: Global Top 3 by 2010

LG Electronics is pursuing its 21st century vision of becoming a true global digital

leader that can make its customers happy throughout the world by means of its

innovative digital products and services. LG Electronics has set a new mid-term and

long-term vision, aiming to achieve the position of one of the top three electronics,

information, and telecommunication firms in the world by 2010. As such, they are

embracing the philosophy of "Great Company, Great People," whereby only great

people can create a great company, and pursuing two growth strategies involving "fast

innovation" and "fast growth." Likewise, they are also seeking to secure three corecapabilities - product leadership, market leadership, and people-centred leadership.


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3.2 Growth Strategy

Fast Growth - It is the result of strategies designed to expand the earnings quickly,

while improving the growth rate in terms of monetary value rather than quantity.

Fast Innovation - It involves setting extremely high innovation goals and securing a

competitive edge, aiming for a target of 30% more than what competitors can achieve.

Fast innovation also means 30% more sales and improvement in market share, new

product development and unveiling such products 30% faster, developing technology

and establishing corporate value three years ahead of competitors.

3.3 Core Capabilities

Product Leadership - Refers to the ability to develop creative, top-quality products

using specialized new technologies.

Market Leadership - Refers to the ability to achieve the "LG brand is No. 1" goal,

thanks to its formidable market presence worldwide.

People Leadership - Refers to talented people, who perform extremely well by

internalizing and executing innovations.

The LG brand comprises four basic elements: values, promise, benefits, and

personality.

3.4 The LG Brand

3.5 Positioning Statement

LG strives to enhance the customers life (and lifestyle) with intelligent features,

intuitive functionality, and exceptional performance. Choosing LG is a form of self-

expression and self-satisfaction. The customer will take pride in owning it and take

comfort in knowing he/she has made a smart and informed decision.


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3.6 Slogan

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

that will make the customers life good. It best expresses the brand's values, promises,

benefits and personality. It is an ultimate expression for what the brand stands for and

what they strive to deliver continuously.


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3.7 LG Electronics in Indian Mobile Market

LG is a Korean based consumer durables company, which has always set its mark in

all the fields it has ventured into. This company is already one of the biggestconsumer durables company in India and it is also the fifth largest mobile maker in

the world. LG ventured into Indian mobile market IN 2003, by launching CDMA-

enabled services when operators like Reliance started offering WLL. By the end of

2003, LG forayed into the GSM segment by launching two models G5300 AND

G7030. Initially, LG had targeted only the premium segment and did not target or did

not have any models to compete in the other segments, but later they came out with

different models which belonged to different segments so that they could compete

with all the other manufacturers like Nokia, Sony Ericcson, Motorola and Samsung.

Currently LG has 14 handset models catering to all segments of the people; the price

of these mobile phones varies from Rs. 1000 to Rs 25000.

Market Share

Nokia: 62.5% Sony: 12.8%

Samsung: 6.2% Motorola: 5%

LG: 2.5% Others: 11%

Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS


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Nokias success is mainly attributed to distribution deals they inked - Of the estimated

79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of

them .The other brands include FLY, CHINA PHONES, PHILIPS BLACKBERRY,

SIEMENS, PANASONIC etc.

%$

4.1 Management Decision problem

To increase the market share of LG mobile phones in Mumbai region.

4.2 Marketing Research problem

In this particular scenario, we find the below defined problem as the most apt market

research problem:

1. To understand the overall perception of retailers towards LG mobile

phones and the effect of promotions and offers

2. To determine underlying factors for less preference for LG GSM mobile

phones by consumers

The two different research problems can be best explained under two different

chapters as the mode of survey and work done for the above cases are different. The

work done in the survey can be divided under two basic objectives which mainly

focus on retailers and consumers perspective which best explains the two research

problems.


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4.3 PROJECT FLOW

Figure 3. PROJECT FLOW


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&'

TO UNDERSTAND OVERALL PERCEPTION OF RETAILERS TOWARDS LG

MOBILE PHONES AND EFFECT OF PROMOTIONAL ACTIVITIES AND

OFFERS.

COMPONENTS: -

1. To understand the retailers preference towards the brands of LG as compared

to its competitors.

2. To understand the satisfaction level of LG mobile brands and its competitors

brands.

3. To find the problematic areas that retailers are facing while selling an LG

GSM mobile phone.

4. To find out the effect of promotional activities inside the shop, considering

both LG and its competitors.

5.1 APPROACH TO THE PROBLEM: -

Figure 4. APPROACH TO OBJECTIVE 1


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5.2 METHODOLOGY

The methodology that has been followed is that of direct interviews with

the retailers,

Direct interviews with service centre people,

Questionnaire for retailers was focussed on the problems they are currently

facing while selling an LG GSM mobile phone and about the effectiveness

of promotion/ advertising activities in their shops,

In-depth interviews with LG distributors and competitors distributors

Sample size contains 100 retailers in Mumbai city

Secondary data collection from internet, magazines, company resources.

5.3 RESEARCH DESIGN

This section discusses the various methods, techniques and tools that were used for the

project.

Exploratory research: This method was used at the commencement of the project. This

helped in orienting the research process and focus on the appropriate course of action.

In this case, the following methods were adopted to get an insight into the problem:

Secondary data

Internet

Magazines

Primary data

a. Qualitative data

Interviews with retailers

Interview with the service centre people

b. Quantitative data

Survey

Observational and other data


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5.4 DATA ANALYSIS

&(%()$

Questionnaire was designed with a primary objective to find the reasons for less sales

of LG mobile phones and to find the overall perception of retailers towards the brands

of LG GSM mobiles. Questions were also aimed to find out the retailers perception

about the competitor brands. Questionnaire also focussed on checking satisfaction

level of retailers towards different attributes of LG when compared to its competitors.

Questions for understanding the promotional activities of LG and its competitors were

also included. Questions to check the awareness among consumers in retailers point

of view was also included. Feed back and recommendations from retailers was asked

through open ended questions in order to obtain more precise answers.

&(%("$

The target population of the research is all the retailers who sell GSM mobile phones

in Mumbai, which includes places like Andheri, Vileparle, Goregaon, Santakruz, VT,

Church gate, Mumbai central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra,

Powai, Marol, etc. The number of sample was directed from the company. In

demographic sampling judgemental process was used. Retailers under five major

distributors area were covered. The selection of shops was on judgemental basis.

Sample size: 100

&(%(!$

The questionnaire was pretested in the market before data collection. Two questions

were added and again pretested. The whole process of data collection took 10 days.

The responses were analysed using SPSS. The missing values were considerably

negligent. One question was eliminated because of the irrelevance in survey.


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&(%(%*

PRIMARY RESEARCH

a) Face to face interactions with retailers.

This included a formal talk with retail owners under major distributor area.

Retailers were selected according to counter size. The selected retailers were

from different distributors area. There was around 20 retailers interaction,

these included retailers who sell 200 LG handsets a month and also few who

sell fewer than 5 handsets a month. The interaction was not with the aid of any

properly framed questionnaire. This interaction was mainly focussed on the

problems that they are facing while selling a LG mobile handset. The

discussion was also pointing about schemes of LG and its competitors. They

also gave some valuable recommendations

Retailers were really unhappy about the offers and benefits that LG Company is

offering. LG had come out with different schemes like Scratch Card, Point schemes

and now the Basket scheme. According to these retailers, these schemes were not very

beneficial and that stood out as one reason why retailers were not purchasing LG

phones. As per these retailers the schemes provided by the competitors like Sony

Ericsson, Samsung and Motorola were better than that of LG. They also informed that

companies like Sony Ericsson and Samsung also gave a large discount of 2 - 3%

when they purchased a bulk amount; this was in addition to the schemes they

provided. This also helped them to sell these products at lesser price and earn the

same profit as that of LG.

They also said that Nokia had a classification of retailers according to the salesvolume and each retailer was getting Rs 20 extra on each of the model they sold.

Nokia also did better promotional activities in the shops of the most preferred

retailers. They also indicated that the billing system of NOKIA is perfect; as far as LG

is concerned retailers have to wait for one week. Nokia also provides target sales

achievement which is also a benefit for retailers

Retailers were also complaining about the price protection scheme of the company.

The retailer who sells more than 200 handsets of LG mobiles which comes under the


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S+ category said that the price protection scheme should be increased for the high end

mobile phones of LG. This point was raised by almost all the retailers.

The retailers other than the category of S+ were complaining about the non

availability of brochures of new models. They said that whenever a new model was

launched they received the brochure typically after one month. They said that this

negligence from the companys side results in missing valuable sales opportunities,

because the promoters were finding hard to explain about the product without a

brochure and it is not practical to open a sealed box to show the product.

The retailers were also complaining about the bad service quality of LG service

centres. They are also unaware of the location of service centres which LG Company

operates in Mumbai. Retailers also complained about the bad promotional campaigns

of LG. According to retailers, consumers are unaware of the products launched by

LG; they quoted the example of KS 20 model. They also said that the accessories of

LG are not available and more over costly.

The request from retailers was to give live demo models in order to show the features

and technology that LG is offering to consumers.

a) MYSTERY SHOPPING

This was employed to find out the effect of promotions inside the shop.

Mystery shopping was conducted in five major shops in Mumbai. Acting as

consumer who wanted to buy a mobile preferably LG. The conclusions are LG

promoters are not aware of the new models launched in the market and they

were also not smart in convincing consumer. They also lack in communication

skills.

b) DIRECT INTERVIEW WITH SERVICE CENTRE STAFF

In Mumbai there are 18 service centres for LG which is directly operated by

the company. The interview with service centre people was mainly focussing

on the type of complaints that LG phones are currently encountering. The

major complaints that LG phones are facing is error in the software. The other

major complaint is that of poor battery back -up of the phones. The complaints

are generally fixed within 36 hours. The major feedback from the service


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centre people is that consumers are unaware of the location of service centres

in Mumbai.

&(%(&(

This process involved getting data regarding the schemes of LG and its competitors; it

also involved the analysis of all the data that was collected from secondary sources.

In India the total number of mobile subscribers is nearly 201 million. Earlier mobile

phones were used just to make and receive calls but now it is not so, it is called as the

Fourth Power. It has emerged as an alternative to cinema, TV and computer screens

(Business world). Now people are looking for value added services with each mobilephone. All the mobile manufacturers in India are trying to upgrade their networks to

Edge and 3G.

MARKET SHARE

Nokia: 62.5% Sony: 12.8%

Samsung: 6.2% Motorola: 5%

LG: 2.5% Others : 11%

Nokia

Sony

Samsung

Motorola

LG

Others

Figure 5. INDIAN GSM HANDSETS MARKET SHARE


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Nokias success is mainly attributed to distribution deals they inked - of the estimated

79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of

them.(www.gartner.com)

NEW MODELS LAUNCHED

In the month of March 08 there are the following new models launched by various

companies.

Figure 6. NEW LAUNCHES IN MONTH OF MARCH08


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In India the top selling model for the month of March was Nokia 1208, which sold

around 2, 60, 000 handsets all over the country. The other models are 1200, 1650,

2626. These models are also from Nokia.

In Mumbai the total market share of LG is 2%. Nokia is the market leader with

64% share. In Mumbai in the month of May Nokia sold around 160000 handsets

approximately. LG sold around 10,000 handsets.

Figure 7. MUMBAI GSM HANDSET MARKET SHARE


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&(%(+("

The major players in the Indian mobile market are Nokia, Sony Ericsson, Samsung,

Motorola and other regional players like Fly, Bird, Sagem etc. Recently a new threat

is being posed by China mobile handsets. These companies come out with large

number of models which tend to be stylish and have added features.

NOKIA

Nokia is currently the market leader in the GSM mobile phone segment with a market

share of 59.5%. It started its operations in India in the year 1995 and presently

operates from offices in major cities like New Delhi, Mumbai, Kolkata, Bangalore,Hyderabad and Ahmedabad. In India it mainly operates on handsets and network

infrastructure business. The company has a great R&D back up in cities like

Bangalore, Hyderabad and Mumbai. The handsets are manufactured from Chennai.

The decade year old company has now got a man power strength of around 6000

people.Nokia's revenues from the mobile phone segment stood at Rs 15,000 crores,

up by 30.6 percent, compared to Rs 11,486 crore in 2006-07. Nokias 50% total

market share comes from India. In India, Nokia has a product range of about 50

running models and three more models are in the pipeline to be launched this year.

The price ranges from Rs 1200 - 54000 which is intended to serve all the classes of

people.

SONY ERICSSON

Sony Ericsson is the second largest company in terms of market share in India. It has

a market share of 12.8% in India. Sony Ericsson mobile communication was

established in the year 2001 by telecommunication leader Ericsson and consumer

durables giant Sony Corporation. The company was equally owned by the two giants

and they announced their first product in the year 2002. The companys products have

a universal appeal and are different in their key areas of imaging, music and

technology. Now they also cater to the entry level mobiles. In India, Sony Ericsson


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has around 38 running models and two more in the pipeline for this year. Its price

ranges from Rs 1800 26000.

SAMSUNG

Samsung was founded in the year 1938, as a consumer durable giant which produced

cathode ray tube for computer peripherals. Samsung is known for its innovation and

style in the GSM arena. This company has a market share of 6.2% in the Indian

market. Samsung has recorded an exponential growth in this sector for the last two

years with some innovative stylish products. It has around 17 running models in India

with 6 models yet to be launched this year. The phones price ranges from Rs 1700

19000.

MOTOROLA

Motorola was started in the year 1928 in USA. It started with the production of radio

sets and later focused on wireless devices. Motorola started the Indian operations of

GSM mobile phones in late 2001. The companys market share has dipped to 5% this

year in India. It has a product range of about 17 running models which is priced from

Rs 1700 18000. The company is famous for its R&D which is situated in Bangalore.

In the Indian context, the GSM devices are segregated into four categories based on

prices: -

Sub-Entry Level - This segment covers phones of prices up to Rs. 2499, this segment

include models like A38,A31,AL21 from Benq Siemens, 245x,250x,214x,253x from

Bleu, V60, M90 from Fly, KG 276, KG 271,KG285,KG288 from LG, W180 and

W215 from Motorola, 1200, 1112, 1208, 1600, 2310, 1650,2610 from Nokia etc.

Entry Level - This segment covers all the phones from Rs. 2500 Rs. 5999. All the

leading mobile manufacturers in India have their models in this particular segment.

There are more than 70 models under different brands currently positioned in thisparticular segment.


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Mid Level - This segment includes all the models which are priced between Rs 6000

and Rs. 11,999. All the major companies have their presence in this segment. Models

like KG300, KE770, KE500, KE590, and KE970 are the phones from LG in this

particular segment. Even in this segment there are more than 70 models from different

companies.

High Level - This segment includes phones which are priced above Rs 12000. Even in

this segment we can find that all the phone manufactures have their presence. This

includes models like KF600, Prada, Viewty, and KS20 from LG. There are mainly 30

models in this particular segment from the houses of LG, Motorola, Samsung, Nokia

and Sony Ericsson.

There is also segment called the Enterprise Segment, it is not based on the prices, it

includes all the business phone models.

Enterprise Level - This segment has all the business phone models and in this segment

LG has no presence, there are no business phone models for LG. This segment

includes 56 models from different manufacturers like Nokia, Sony Ericsson,

Blackberry, Asus, Vertu, HTC, I mate, Motorola and Palm.

(The source for this piece of information is www.mymobile.co.in)


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&(%(,-../$

Mobile theft is a major area of concern for all the mobile users across the world. Now

LG has come with a new insurance plan. LG has tied up with United India Insurance

co. to offer this benefit to all its mobile users with no extra charge levied on it. In such

an event of handset theft, the user files an FIR within a 24 hours and then blocks the

SIM card through the respective service provider and then should inform the

insurance company within 7 days after the loss.

The 4 simple steps to avail insurance are as follows:

1. Fill the claim form.

2. Attach a copy of the bill given to you at the time of purchase. The invoice mustcontain the IMEI number of the handset.

3. Lodge FIR under Section 379 IPC for handset theft and attach a copy with theclaim form.

4. Mail the documents to the insurance company through registered post.

Once the claim form and all these are done, the insurance company will settle the

claim within 15 days.

Some of LG mobiles (selected models) also contain LGs anti mobile theft tracker

(ATMT) which can track the mobile phone when it is stolen and a new sim card is

inserted into it. In these kinds of phones, we have an option to save two phone

numbers and when the phone is stolen and a new SIM is inserted, phone automatically

sends messages to these two numbers (LG company sources).

The new scheme provided by LG is called the Basket offer; there are threeclassifications for this offer A, B and C. These offers are according to the volume that

each retailer purchases.


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CUSTOMER

Dissatisfiedreasons

ReasonsEnd

+'

TO DETERMINE THE UNDERLYING FACTORS FOR CONSUMERS NOT

PREFERRING LG GSM MOBILE PHONES.

COMPONENTS:

1. To understand the factors that consumers consider while buying a mobile

phone.

2. To understand the overall perception of consumers about LG and its

competitors.

3. To check the extent of awareness about LG mobile phones.4. To understand the satisfaction level of LG consumers.

5. To check the reach of LG mobiles phones promotional activities.

6.1 APPROACH TO THE PROBLEM:

Desired to purchase a mobile phone / Change existing phone

Purchase LG Not purchased LG

Satisfied

Figure 8. APPROACH TO OBJECTIVE 2


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6.2 METHODOLOGY

1. Direct interview with consumers

2. Consumer survey was focusing on the consumer perception

about LG and its competitors and the factors they consider

while buying a mobile phone.

3. Sample size is 200

4. Secondary data collection from internet, magazines, company

resources.

6.3 RESEARCH DESIGN

This section discusses the various methods, techniques and tools that were used forthe project.

Exploratory research: This method was used at the commencement of the project a.

This helped in orienting the research process and focus on the appropriate course of

action. In this case, the following methods were adopted to get an insight into the

problem,

Secondary data

Internet

Magazines

Primary data

a. Qualitative data

Direct Interview

b. Quantitative data Survey

Observational and other data


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6.4 DATA ANALYSIS

+(%()$

Questions were designed to get a clear understanding of consumer perception. It was

also aimed to find the factors that consumers consider while buying a mobile phone.

There were questions specially targeted to obtain the extent of awareness about LG

mobiles. Questionnaire also contained the questions to check the perception of

consumers towards LG mobiles and its competitors. The extent of promotional

activities was also checked. Questionnaire also contained open ended questions which

are aimed to find what consumers really need in a mobile phone. Consumers were

also asked to associate different companys or brands to given phrases.

+(%("$

The target population was consumers in all age groups who currently are using GSM

mobile phone and also who are planning to buy a GSM mobile phone in Mumbai city.

The places like Andheri, Vileparle, Goregaon, Santakruz, VT, Church gate, Mumbai

central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra, Powai etc was

considered for survey. The survey was carried out in malls, railway stations and also

in some house holds. The sampling technique used is judgemental sampling.

Consumers from different age group were considered and questions were asked

according to the questionnaire.

Sample size 200

+(%(!0$

The questionnaire was pretested and surveyed. The filled questionnaire was analyzed

through SPSS. The missing values were high on some questions like people who used

LG phones.


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+(%(%*

PRIMARY RESEARCH

Direct interview with consumers

This involved conducting an informal talk with consumers. The consumers were

selected on a judgmental basis. Direct interview was conducted with ten consumers in

different age group. The whole process was to get an overview of the consumer

perception and the factors they look for while buying a mobile phone.

The consumers are generally not aware of the LG mobiles. Most of the consumers

associate LG mobile as a CDMA phone. They have a general perception that LG

mobile phones are not user friendly and have a less battery backup. The direct

interview with aged consumers really gave a new insight that no company is

producing simple user friendly phone to aged consumers, their point is that they use

phone only for picking up the call and for making a call. There are no phones in the

market which are so user friendly that they can handle. One consumer who is around

65 years, complained that she cant even use Nokia basic model which her son got for

her. She uses the phone only to make and answer calls.

The youth are generally focused on the entertainment part of mobile phone. They said

that LG lacks picture and sound quality. They also conveyed that there is less memory

option in LG mobile phones. The general view of female consumers is that LG

phones are not trendy.

Most of the consumers are happy with bar type phones and they showed less interest

in slider phones. They also have an opinion that LG mobiles are giving less choice to

consumers.

Most of the consumers prefer Nokia or Sony Ericsson because they are superior in

some attributes.


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+(%(&

For consumer perspective, the secondary data are mainly considered in checking the

price of various mobile phones. Websites of LG and its competitor was also surfed. In

the competitors website the details of up coming models are shown, it lacks in LGcompanies official website. The secondary data from the blogs, discussion forums

were also considered.

The main feed back from the website is that people are using their mobile phone not

only as an instrument to talk but also as a music player, camera, internet accessing

device etc. They are focusing more on value added services.

Figure 9. SEGMENT CONTRIBUTION TO ZONES

Source: GFK

It is found from the survey conducted from GFK that people using that colour phones

with camera is around 28% in March and colour phones without camera is around

52%. People using monochrome phones are around 20% as of March 08. This survey


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is conducted in 35 major towns in India. This is the clear indication that consumers

are moving to phones with more product features.

,1$

Data analysis and findings was done in two phases:

Retailers Consumers

The total sample size was 300, retailers sample being 100 and consumers 200.The commonly used test was frequency test. Hypothesis was created and the testis performed. Graphs for each test are shown.

7.1. RETAILERS

HYPOTHESIS 1: AMONG THE RETAILERS, NOKIA IS THE MOST PREFERED

BRAND IN THE MUMBAI REGION.

Test performed: frequency test

Over-all respondents:

Statistics

Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS

NokiaSony

Ericsson LG Samsung Motorola FLY Others

N Valid 100 100 100 100 100 100 100Missing 0 0 0 0 0 0 0

(1 = worst, 5 = best)

NOKIA

Table 2. RATINGS OF NOKIA

Frequency Percent Valid PercentCumulative

Percent

Valid 5 99 99.0 99.0 99.0

1 1 1.0 1.0 100.0Total 100 100.0 100.0


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.

SONY ERICSSON

Table 3. RATINGS OF SONY ERICSSON


Percent

Valid 4 65 65.0 65.0 65.03 35 35.0 35.0 100.0

Total 100 100.0 100.0

From this frequency test, wecan see that 99 out of 100respondents chose Nokia astheir most preferred brand

Figure 10. RATINGS OF NOKIA


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Figure 11. RATINGS OF SONY ERICSSON

SAMSUNG

Table 4. RATINGS OF SAMSUNG


Percent

Valid 4 6 6.0 6.0 6.03 9 9.0 9.0 15.0

2 61 61.0 61.0 76.01 24 24.0 24.0 100.0

Total 100 100.0 100.0

From this frequency test, wecan see This test shows thatout of 100 respondents 65

respondents gave SonyEricsson as their second bestpreference and 35 respondentsgave it as their third bestoption

Here for the brand

Samsung, 6 respondents

gave it as their second best

option, 9 gave it as their

third option while 24

respondents gave it as the

worst option. 61 gave it as

the next worst option.

Figure 12 RATINGS OF SAMSUNG


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MOTOROLA

Table 5. RATINGS OF MOTOROLA


Percent

Valid 4 21 21.0 21.0 21.0

3 56 56.0 56.0 77.0

2 23 23.0 23.0 100.0

Total 100 100.0 100.0

LG

Table 6. RATINGS OF LG


Percent

Valid 4 8 8.0 8.0 8.02 10 10.0 10.0 18.01 76 76.0 76.0 94.0

NA 6 6.0 6.0 100.0Total 100 100.0 100.0

For the brands of Motorola, 56

out of 100 respondents gavethis brand a value three and 21

gave it as the second best

option a value of four. 23

respondents gave the second

worst option.

Figure 13. RATINGS OF MOTOROLA


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FLY

Table 7. RATINGS OF FLY


Percent

Valid 2 6 6.0 6.0 6.0

NA 94 94.0 94.0 100.0

Total 100 100.0 100.0

For LG, 76 out of 100

respondents marked thecompany as their worstpreference. 10 responded forthe second worst option, 8responded for second bestoption, while six retailersdidnt give LG any preference

For FLY it is found that 6retailers give rating 2 for and

rest of 94 retailers didnt giveany preference

Figure 14. RATINGS OF LG

Figure 15. RATINGS OF FLY


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H2: LG HAS THE LEAST PROMOTIONAL CAMPAIGNS WHEN COMPAREDTO ITS COMPETITOR BRANDS.


Over-all respondents:

NOKIA

NOKIAS PROMOTIONAL ACTIVITIES

Table 8. PROMOTION OF NOKIA

Frequency PercentValid

PercentCumulative

Percent

Valid Yes 100 100.0 100.0 100.0

TABLE TOP DISPLAYS

Table 9 . NOKIA TABLETOP DISPLAY


Percent

Valid Yes 9 9.0 9.0 9.0

No 91 91.0 91.0 100.0

Total 100 100.0 100.0

Nokias Display of New Models

Table 10. NOKIA DISPLAY OF NEW MODEL


Percent

Valid Yes 36 36.0 36.0 36.0No 64 64.0 64.0 100.0

Total 100 100.0 100.0


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Nokia FluxTable 11. NOKIA FLUX


PercentCumulative

Percent

Valid Yes 89 89.0 89.0 89.0No 11 11.0 11.0 100.0

Total 100 100.0 100.0

Nokia Wall Painting

Table 12. NOKIA WALL PAINTING


Percent

Valid Yes 100 100.0 100.0 100.0

Figure 16. PROMOTION OF NOKIA


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Figure 17. TABLETOP OF NOKIA

Figure 18. WALL PAINTINGS OF NOKIA


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Nokia has the highest promotional activity reach, i.e. out of 100 retailers Brand Promo

of Nokia has reached in all the retail outlets. In 9 outlets they have table top displays,

36 outlets have displays of new models, 89 outlets have Nokia flux. Wall paintings of

Nokia are present in all the 100 outlets.

Figure 19. DISPLAYS OF NOKIAS NEW MODELS

Figure 20. NOKIA FLUX


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SONY ERICSSON

Sonys Promotional Activities

Table 13. SONY ERICSSON PROMOTION


Percent

Valid Yes 88 88.0 88.0 88.0No 12 12.0 12.0 100.0

Total 100 100.0 100.0

Sonys display of new models

Table 14. SONY ERICSSON DISPLAY OF NEW MODEL


Percent

Valid Yes 30 30.0 30.0 30.0

No 58 58.0 58.0 88.0

NA 12 12.0 12.0 100.0

Total 100 100.0 100.0

Sonys wall painting

Table 15. SONY ERICSSON WALL PAINTING


Percent

Valid Yes 69 69.0 69.0 69.0No 19 19.0 19.0 88.0NA 12 12.0 12.0 100.0

Total 100 100.0 100.0

Sony table top

Table 16. SONY ERICSSON TABLETOP


Percent

Valid No 88 88.0 88.0 88.0NA 12 12.0 12.0 100.0

Total 100 100.0 100.0

Sony flux


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Table 17. SONY ERICSSON FLUX


Percent

Valid Yes 88 88.0 88.0 88.0

NA 12 12.0 12.0 100.0Total 100 100.0 100.0

Figure 21. PROMOTION OF SONY ERICSSON


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Figure 22. TABLELTOPS OF SONY ERICSSON

Figure 23. SONY ERICSSON WALL PAINTINGS


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In Mumbai, out of 100 retail outlets Sony Ericssons promotional activities has a

reach to 88 retail outlets. Amongst these, 30 shops had the displays of new models, 69

outlets had Sony wall paintings and 88 shops had Sony flux. There were no shops

with Sony table top displays.

Figure 24. SONY ERICSSON FLUX

Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL


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SAMSUNG

Samsung if promo

Table 18. PROMOTION OF SAMSUNG


Percent

Valid Yes 75 75.0 75.0 75.0No 25 25.0 25.0 100.0

Total 100 100.0 100.0

Samsung wall painting

Table 19. SAMSUNG WALL PAINTINGS


Percent

Valid Yes 75 75.0 84.3 84.3NA 14 14.0 15.7 100.0

Total 89 89.0 100.0Missing System 11 11.0

Total 100 100.0

Samsung table top

Table 20. SAMSUNG TABLE TOP


Percent

Valid Yes 6 6.0 6.7 6.7No 69 69.0 77.5 84.3NA 14 14.0 15.7 100.0


Total 100 100.0

Samsung display of new models

Table 21. SAMSUNG DISPLAYS OF NEW MODEL


Percent

Valid Yes 75 75.0 84.3 84.3NA 14 14.0 15.7 100.0


Total 100 100.0


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Samsung flux

Table 22. SAMSUNG FLUX

Frequency Percent Valid Percent

Cumulative

PercentValid Yes 65 65.0 73.0 73.0

No 10 10.0 11.2 84.3NA 14 14.0 15.7 100.0


Total 100 100.0

Figure 26. PROMOTION OF SAMSUNG


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Figure 27.SAMSUNG TABLE TOPS

Figure 28. SAMSUNG WALL PAINTINGS


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In the Mumbai region Samsungs promotional activities is in 75 retail outlets out of

100. In these, all 75 outlets have displays of new models and wall paintings. The same

flux is covered in 65 outlets and 6 shops have Samsung table top displays.

MOTOROLAMotorola promotion

Table 23. PROMOTION OF MOTOROLA


Percent

Valid Yes 86 86.0 86.0 86.0

No 14 14.0 14.0 100.0Total 100 100.0 100.0

Figure 29. SAMSUNG DISPLAYS OF NEW MODEL

Figure 30. SAMSUNG FLUX


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Motorola table top

Table 24. MOTOROLA TABLETOP


Percent

Valid Yes 20 20.0 21.3 21.3No 60 60.0 63.8 85.1NA 14 14.0 14.9 100.0


Total 100 100.0

Motorola wall painting

Table 25. MOTOROLA WALL PAINTINGS


Percent

Valid Yes 86 86.0 86.0 86.0

NA 14 14.0 14.0 100.0

Total 100 100.0 100.0

Motorola display of new model

Table 26. MOTOROLA DISPLAYS OF NEW MODEL


Percent

Valid Yes 80 80.0 85.1 85.1NA 14 14.0 14.9 100.0


Total 100 100.0

Motorola flux

Table 27. MOTOROLA FLUX


Percent

Valid Yes 80 80.0 85.1 85.1NA 14 14.0 14.9 100.0

Total 94 94.0 100.0

Missing System 6 6.0Total 100 100.0


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Figure 31. PROMOTION OF MOTOROLA

Figure 32. MOTOROLA TABLETOPS

Figure 33. MOTOROLA WALL PAINTINGS


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In the Mumbai region, out of 100 retail respondents Motorola promos were present in86 retail outlets amongst which there were 20 tabletop displays and 86 wall paintingsin shops. In 100 outlets Motorola recorded 80 flux and 80 displays of new models.

FLYFly promotion

Table 28. PROMOTION OF FLY


Percent

Valid Yes 30 30.0 30.0 30.0No 70 70.0 70.0 100.0

Total 100 100.0 100.0

Fly table top

Table 29. TABLE TOP OF FLY


Percent

Valid No 40 40.0 76.9 76.9NA 12 12.0 23.1 100.0


Total 100 100.0

Figure 34. MOTOROLA FLUX


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Fly wall painting

Table 30. FLY WALL PAINTINGS


Percent

Valid No 30 30.0 57.7 57.7

NA 22 22.0 42.3 100.0

Total 52 52.0 100.0

Missing System 48 48.0

Total 100 100.0

Fly display of new model

Table 31. FLY DISPLAYS OF NEW MODEL


Percent

Valid Yes 30 30.0 57.7 57.7

NA 22 22.0 42.3 100.0

Total 52 52.0 100.0

Missing System 48 48.0

Total 100 100.0

Fly flux

Table 32. FLY FLUX


Percent

Valid No 30 30.0 57.7 57.7NA 22 22.0 42.3 100.0


Total 100 100.0


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Figure 35. PROMOTION OF FLY

Figure 36. FLY TABLETOP

Figure 37. FLY FLUX


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In the region flux promos was recorded in 30 retail outlets out of 100. No table topdisplays were recorded. In all 30 outlets companys wall paintings, flux and displaysof new model was recorded.

LGLG promotion

Table 33. PROMOTION OF LG


Percent

Valid Yes 18 18.0 18.0 18.0No 82 82.0 82.0 100.0

Total 100 100.0 100.0

Figure 38. FLY WALL PAINTINGS

Figure 39. FLY DISPLAYS OF NEW MODEL


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LG table top

Table 34. LG TABLE TOP

Frequency Percent Valid Percent CumulativePercent

Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0


Total 100 100.0

LG wall painting

Table 35. LG WALL PAINTING


Percent

Valid Yes 18 18.0 30.0 30.0NA 42 42.0 70.0 100.0


Total 100 100.0

LG display of new model

Table 36. LG DISLPLAYS OF NEW MODEL


Percent

Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0


Total 100 100.0

LG fluxTable 37. LG FLUX


Percent

Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0

Total 60 60.0 100.0

Missing System 40 40.0Total 100 100.0


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Figure 40. PROMOTION OF LG

Figure 41. TABLETOPS OF LG

Figure 42. LG WALL PAINTINGS


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In the Mumbai region, LG recorded the lowest promotional penetration whencompared to its competitor brands. In 100 respondents of retailers, LG recorded only

in 18 outlets. In the 18 outlets, 8 have LG tabletop displays and 18 have LG wallpaintings. While only 8 outlets recorded LG flux and displays of new models.

H3: LACK OF LIVE DEMO IN THEIR RETAIL OUTLET IS ONE OF MOSTIMPORTANT PROBLEMATIC AREAS THAT RETAILERS ARE CURRENTLYFACING WHILE SELLING AN LG GSM MOBILE


Over-all respondent

Figure 43. LG DISPLAYS OF NEW MODEL

Figure 44. LG FLUX


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Live demo supply

Table 38. LIVE DEMO SUPPLY

Frequency Percent

Valid

Percent

Cumulative

PercentValid highly

problematic100 100.0 100.0 100.0

Figure 45. LIVE DEMO SUPPLY

HYPOTHESIS 4: RETAILERS ARE LEAST SATISFIED FOR AWARENESSABOUT LG PRODUCTS AMONG CONSUMERS

Test performed: Frequency test

LG

Table 39. AWARENESS OF LG


PercentCumulative

Percent

Valid Least Satisfied 84 84.0 84.0 84.0Moderately Less

Satisfied16 16.0 16.0 100.0

Total 100 100.0 100.0

In the survey conductedamong retailers, the mostimportant and problematic

region while selling a LGGSM phone is supply of livedemo. All the retailers i.e. 100out of 100 believe its onemost important problematicareas. They find it difficult tosell a LG mobile without livedemo


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MOTOROLA

Table 40. AWARENESS OF MOTOROLA


Cumulative

PercentValid Moderately

Highly Satisfied54 54.0 54.0 54.0

Highly Satisfied 46 46.0 46.0 100.0Total 100 100.0 100.0

NOKIA

Table 41. AWARENESS OF NOKIA


Percent

Valid Highly Satisfied 100 100.0 100.0 100.0

SONY ERICSSON

Table 42. AWARENESS OF SONY ERICSSON


Percent

Valid ModeratelyHighly Satisfied

21 21.0 21.0 21.0

Highly Satisfied 79 79.0 79.0 100.0Total 100 100.0 100.0

FLY

Table 43. AWARENESS OF FLY

Frequency Percent Valid Percent CumulativePercent

Valid Least Satisfied 9 9.0 9.0 9.0Average Satisfaction 91 91.0 91.0 100.0

Total 100 100.0 100.0


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SAMSUNG

Table 44. AWARENESS OF SAMSUNG


Cumulative

PercentValid Moderately

Highly Satisfied100 100.0 100.0 100.0

Figure 46. LG SATISFACTION OF AWARENESSLG

MOTOROLAFigure 47. MOTOROLA SATISFACTION OF AWARENESS


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NOKIA

SONY ERICSSON

Figure 48. NOKIA SATISFACTION OF AWARENESS

Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS


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SAMSUNG

FLY

1. From the above frequency test and graph its clear that among 100 retailers 84were least satisfied and 16 was moderately less satisfies for the awareness ofLG products among consumers.

2. From the test 100 out of 100 retailers were very satisfied for Nokia awarenessamong consumers

3. For the company Motorola the 54 retailers were moderately highly satisfiedand 46 were highly satisfied for the awareness among consumers

Figure 50. SAMSUNG SATISFACTION OF AWARENESS

Figure 51. FLY SATISFACTION OF AWARENESS


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4. For the company Samsung 100 out of 100 were moderately highly satisfied for thereason

5. Sony Ericsson recorded 71 for high satisfaction and 29 for moderately lesssatisfaction

6. For fly 91 average satisfaction and 9 was for least satisfaction.

HYPOTHESIS 5: LG HANDSETS CANNOT BE OPERATED WITHOUT A SIMWHICH POSE A DIFFICULTY WHILE SELLING A LG GSM MOBILE PHONE.

Dinu Mudukad LG MUMBAI

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