LG (Marketing Strategies)

PROJECT REPORT

ON

“MARKETING STRATEGIES OF LG”

SUBMITTED TO M.D.UNIVERSITY ROHTAK IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF DEGREE OF MASTER OF

BUSINESSADMINISTRATION

Session(2010-2012)

SUBMITTED BY:

MUKESH KUMAR

M. B. A 3RD SEM

Regn. No:

UNIVERSITY INSTITUTE OF LAW AND MANAGEMENT

STUDIES, SEC-40 GURGAON

DECLARATION

I, MUKESH KUMAR,Reng.No-1079173405,Class MBA 2nd SEM of University

Institute of Law and Management Studies Hereby declare that the project entitled

“MARKETING STRATEGIES” is an Original Work and the same has not been

submitted to any other institute for the award of any other degree.

Signature of Candidate

ACKNOWLEDGEMENT

This study would not have been possible without the cooperation of and generous help

from a number of people. While it may not be possible for me to express my gratitude to

all of them individually, I wish to place on my record my appreciation to them for all

the help they extended to me during the project.

I am extremely thankful to Mr. Sanjeev Singh [Marketing Mgr.] for his support and

guidance to complete this project.

Report was completed successfully because of the grace of the god and the blessings of

my parents.

(MUKESH KUMAR)

PREFACE

No professional curriculum is considered complete without work experience. Every

individual who is doing management studies has to undergo this phase of practical study

before he/she can consider himself/herself fully qualified as potential manager.

I got an opportunity to do training with LG ELECTRONICS I under take the training in

my 2nd Yr., on Marketing Strategies of LG India Ltd. The basic aim of my study was to

know how to deal with customer & how I can make better relation with them.

People affiliated with management studies have a different view on this aspect of

management that “classroom studies have nothing to do with practical work.” But during

my research I realized that a training report plays a crucial part as it prepares a MBA for

the impending responsibility that awaits him/her in the future. It integrates the theoretical

aspects with the practical life and helps in understanding business solutions in a better

manner.

TABLE OF CONTENTS

CHAPTER - I

INTRODUCTION

Objective of the Study

Significance of the Study

Research Methodology

CHAPTER – II

REVIEW OF LITERATURE

CHAPTER – III

COMPANY PROFILE

CHAPTER – IV

DATA ANALYSIS & FINDINGS

CHAPTER – V

CONCLUSIONS & RECOMMENDATIONS

CHAPTER –VI

BIBLIOGRAPHY

CHAPTER –VII

Appendices

SUMMER TRAINING REPORT

Chapter-I

1.1 Objective of the study.

1.2 Significance of the study.

1.3 Research Methodology.

1.4 Tools & technique of analysis.

INTRODUCTION

Consumer durable industry is one of the most lucrative industries and is rapidly growing.

The Indian economic industry witnessed proliferation of global companies in the national

scene, liberalization of Indian economy coupled with the media explosion ushered in a

new era of consumerism, increased purchasing power and leads to the creation of

budding consumer durable market.

The version Indian market offered tremendous scope to the multinationals. The growth

rates were as high as 22% in the wide goods segment compared to the nearly 2-3%

growth in the European market. No wonder it will witness major takeovers strategic

alliances, technical collaboration and formation of fully owned subsidiaries.

Adding value to the customer's life as a motto was upheld when LG touched the Indian

shores way back in 1997. Today, when LG is entering a decade, it is very heartening so

see that the company and all it’s employees have not only lived up to this motto, but

taken it to tremendous heights through sheer hard work and determination. Company’s

mission simply was to provide valued customers with the products which add value to

their life, and to build an ever lasting relationship based on that foundation.

Today, this mission has emerged as leaders across categories in the Indian Consumer

Electronics and Home Appliance segment. LG has in a short span of ten years setup state-

of-the art manufacturing facilities and achieved a un-precedence turnover figure of Rs.

9500 Crores in 2007. It has laid out an extensive network of 77 subsidiaries across the

country employing a total of 72000 people, making LG one of the most respected and

visible brands in India.

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

customers worldwide through its innovative products and design. The company’s goal is

to rank among the top 3 consumer electronics and telecommunications companies in the

world by 2010. To achieve this, we have embraced the idea of “Great Company, Great

People,” recognizing that only great people can create a great company.

NEED OR SIGNIFICANCE OF THE STUDY

LG entered in Indian consumer electronic and home appliances industry when the price

war was bitter and exchange offers were ruling the Indian market. In such scenario, high

quality premium product was seen as a foolish step. But over a time span of 2 yrs LG has

proved to be a great gun.

But as we know that consumer taste and preference is fast changing and don’t follow any

rules and regulations if any company wants to be a leader it should be well informed

about the changes taking place in market consumer’s mind and taste and formulate

strategies to counter these changes.

A successful company is that which changes itself with preferences and needs of

consumers as well as create need for their product not letting others to take the initial

step.

OBJECTIVE OF THE STUDY

The main objectives of the project are the following:

To study the LG’s advertising strategy vis-à-vis its competitors.

To see how effective is the promotional and positioning strategy of LG.

To find out the problems faced by dealers in selling the LG products.

To find out the market share of products of LG in Delhi.

To find out the most preferred brand in the market.

To know the awareness level of consumers about the products of LG.

RESEARCH OBJECTIVES

Globalization has affected today’s market towards the competitiveness. There are so

many domestic and multinational companies growing up rapidly. Survival is being

the core concept of the companies. A company must know the strategy of the

competitors because it directly affects it. So there is a need for a company to know its

rivals market potential, market share and selling strategies.

Today the choice and preferences of consumer is also changing. Customer is now

aware about the products. Customer is better educated more sophisticated. He is

aggressive and critical who demands his money’s worth and pays only for what he

wants.

Dealers are the customers of the company and consumers are the main source of the

information. This project has certain objectives for which I covered both dealers and

consumers all over Delhi region.

RESEARCH METHODOLOGY

Methodology is the specification of the method for acquiring the information needed

to structure the study.

Universe:

Universe for dealer survey was Delhi.

Universe for consumer survey was Delhi.

Sampling Size: sampling size for both consumers and dealers is:

Sample size for consumer survey was 100 covering Residential areas and

markets from different areas of Delhi.

Company survey consisted of visiting 70 dealers of Delhi.

Sampling Techniques:

For Consumers survey “Convenient Sampling” techniques was applied.

For Dealer’s survey “Random Sampling” technique was used.

Collection of Data :

Secondary Collection :

1. Internal Data :

a.a. Went through some previous market studies provided by the guide.

b.b. Previous summer training reports to grasp knowledge about white

goods market.

c.c. Study of product manual and salesman training report to get product

knowledge.

2. External data :

a. Scanning of various business magazines.

b. Collected relevant information from the newspaper.

Primary Data :

1. Interview Method :

Some of the employees of LG from Sales & marketing department and a few dealers of

LG were interviewed for the purpose of exploratory

a. study. The response obtained from them was very helpful in preparing

the questionnaire for dealers and deciding upon various classificatory

and data variables.

b. Two questionnaires were designed one for the consumers and the other

for the dealers. I visited 70 dealers and 100 consumers.

2. Observation Method :

Observation about the consumer behavior at dealer counter gave us lots of

knowledge about the customer expectations regarding products, counter

preferences for brand and after sales service.

LIMITATIONS IN RESEARCH

Every study has its own limitations in terms of methodology and the resources available

for its conduct. This study has no expectation to it and has been carried under following

limitation:

Some of the dealers as well as the customers were not forthcoming with

information as they thought it to be a waste of time. Some customers were not

able to respond due to lack of awareness.

A number of dealers were biased towards a particular brand, which was giving

them better returns.

Some of the shop owners were not available so, contacted person was not able to

present a fair view.

Respondent’s lack of time to give information and their casual attitude was a big

hindrance in the study.

The dealers were biased by some recent experiences, which they had with a

particular distributor regarding the service or distribution.

TOOLS & TECHNIQUES OF ANALYSIS

Following tools and techniques for analyzing data collected from various methods of

data collection such as questionnaire method, observation method etc. is as follows:

Figureical representation of the data.

Tabular representation of collected data etc.

Chapter-II

MARKETING STRATEGIES

In today's very competitive marketplace a strategy that insures a consistent approach to

offering your product or service in a way that will outsell the competition is critical.

However, in concert with defining the marketing strategy one must also have a well -

defined methodology for the day-to-day process of implementing it. It is of little value to

have a strategy if you lack either the resources or the expertise to implement it. There are

two major components of marketing strategy:

How the enterprise will address the competitive marketplace

How will it implement and support day-to-day operations.

In the process of creating a marketing strategy one must consider all the relevant factors.

Each strategy must address some unique considerations; it is not reasonable to identify

every important factor at a generic level. However, many are common to all marketing

strategies. Some of the more critical are described below. In general this falls into one of

four categories:

Where the market is very attractive and the enterprise is strong, one will invest the

best resources in support of the offering.

Where the market is very attractive but the enterprise is weak, one must concentrate

on strengthening the enterprise, using the offering as a stepping-stone toward this

objective.

Where the market is not especially attractive, but the enterprise is strong then an

effective marketing and sales effort for the offering will be good for generating near

term profits.

Where the market is not especially attractive and the enterprise is weak, one should

promote this offering only if it supports a more profitable part of the business.

Otherwise, one should determine the most cost effective way to divest the enterprise

of this offering.

Now, the next step is to choose a strategy for the offering that will be most effective in

the market. This means choosing one of the following 'generic' strategies:

A COST LEADERSHIP STRATEGY

It is based on the concept that one can produce and market a good quality product or

service at a lower cost than its competitors. These low costs should translate to profit

margins that are higher than the industry average.

Some conditions that should exist to support a cost leadership strategy include an on-

going availability of operating capital, good process engineering skills, and close

management of labor, products designed for ease of manufacturing and low cost

distribution.

A DIFFERENTIATION STRATEGY

It is the one, which creates a product or service that is perceived as being unique

"throughout the industry". The emphasis can be on brand image, proprietary technology,

special features, superior service, a strong distributor network or other aspects that might

be specific to the industry. This uniqueness should also translate to profit margins that are

higher than the industry average. Some of the conditions that should exist to support a

differentiation strategy include strong marketing abilities, effective product engineering,

creative personnel, the ability to perform basic research and a good reputation.

A FOCUS STRATEGY

It may be the most sophisticated of the generic strategies, in the sense that it is a more

'intense' form of either the cost leadership or differentiation strategy. It is based on the

concept of serving a particular target in such an exceptional manner, those others cannot

compete. Usually this means addressing a substantially smaller market segment than

others in the industry, but because of minimal competition, profit margins can be very

high.

PRICING STRATEGY

Having defined the overall offering objective and selecting the generic strategy one must

decide on a variety of closely related operational strategies. One of these is how one will

price the offering. A pricing strategy is mostly influenced by the net income. There are

three basic strategies one can consider.

A SKIMMING STRATEGY :

Where the offering has enough differentiation to justify a high price and one desire

quick cash and have minimal desires for significant market penetration and control,

then one sets the prices very high.

A MARKET PENETRATION STRATEGY:

Where near term income is not so critical and rapid market penetration for eventual

market control is desired, then one must set the prices very low.

A COMPARABLE PRICING STRATEGY :

Where one is not the market leader in the industry then the leaders will most likely

have created a 'price expectation' in the minds of the marketplace. In this case one can

price the offering comparably to those of its competitors.

PROMOTION

To sell an offering one must effectively promote and advertise it. There are two basic

promotional strategies, PUSH and PULL.

THE PUSH STRATEGY :

It maximizes the use of all available channels of distribution to "push" the offering

into the marketplace. This usually requires generous discounts to achieve the

objective of giving the channels incentive to promote the offering, thus minimizing

the need for advertising.

THE PULL STRATEGY :

It requires direct interface with the end user of the offering. Use of channels of

distribution is minimized during the first stages of promotion and a major

commitment to advertising is required. The objective is to "pull" the prospects into

the various channel outlets creating a demand the channels cannot ignore.

DISTRIBUTION

One must also select the distribution strategy(s) which should get the offering into the

hands of the customer. These include:

On-premise Sales involving the sale of the offering using a field sales

organization that visits the prospect's facilities to make the sale.

Direct Sales involves the sale of the offering using a direct, in-house sales

organization that does all selling through the Internet, telephone or mail order

contacts.

Wholesale Sales involves the sale of the offering using intermediaries or "middle-

men" to distribute product or service to the retailers.

Self-service Retail Sales involves the sale of the offering using self-service retail

methods of distribution.

Full-service Retail Sales involves the sale of the offering through a full service

retail distribution channel.

CONCLUSION

After defining the strategy one must use the information one has gathered to determine

whether this strategy will achieve the objective of making the enterprise competitive in

the marketplace. It is essential to know who the competitors are and to understand their

strengths and weaknesses.

Various factors to consider include:

Each of the competitor’s experience,

Staying power,

Market position,

Strength,

Predictability and

Freedom to abandon the market must be evaluated.

Chapter-III

COMPANY PROFILE

“LG Group- The best global company”

U.S. $73 billion LG Group is one of the world’s top conglomerates today, having

established its supremacy in diversified fields ranging from electronics, chemicals, and

cosmetics to trade and services. The LG Group was born as “Lucky Chemicals” in 1947,

a pioneer in the fledging chemical industry with a pioneering spirit. Founder chairman

planted the seed of the industry in the barren land.

LG was the First Korean Company to make cosmetics and to enter the synthetic resins

industry. LG established “Gold Star” in 1958, opening the door to electronic industry in

Korea. In the early 1970’s after Founder/Chairman passed away, Mr. Chakyung took

over as a chairman. Under his leadership, in a decade more than 20 sister companies and

schools, increased its sales by 36 times and exports by 90 times and was regarded as

Korea’s best leading business school.

“Gold Star” brand product sales in 1996 came to U.S. $ 9 billion, which ranked one of the

top electronic industries in the world. LG is known by consumers in more than 171

countries for offering products that deliver ultimate satisfaction. Along with the new

corporate mission, LG electronics has been reborn. The organization remains fruitful and

vibrant.

Building a better future for customer is the top priority and the company is going top gear

to make the “Better Future” a reality. The new corporate name and identity will continue

to offer full satisfaction to customers around the world and will come to symbolize the

face of the future. The management philosophy- “We create value for customers through

management based on esteem for human dignity”

The product manufactured internationally cover multimedia players, video audio

products, home appliances, Information system products, communication devices, display

products, magnetic recording media and electric/ electronic parts and components. Heavy

investments are being made in the next generation and Environment Friendly Products.

HOW LG GREW

1958 Gold Star (today’s LG

Electronics) established.

1959 Korea’s first radio produced.

1962 Radio exported to the US and

Hong Kong as Korea’s first.

1965 Korea’s first refrigerator

produced.

1966 Korea’s first black & white TV

produced.

1968 Korea’s first air conditioner

produced.

1969 Korea’s first washing machine

produced.

1974 Gold Star Communications went

public.

1977 Color TV produced. 1978 Exports surpassed US$ 100 mill.

a first for Korea’s electronics

industry.

1980 First EU sales subsidiary in

Germany (LGEWG)

established.

1982 Color TV plant established in the

US in Huntsville, Alabama.

1984 Sales surpassed 1 trillion Won. 1986 European-standard VCR plant

established in Germany.

1989 Sales subsidiary and a joint

production subsidiary

established in Thailand.

1990 Ireland-based design technology

center established.

1993 With the establishment of

Huizhou subsidiary in hina

(LGEHZ), marketing in China

took full swing.

1995 Company name changed to LG

Electronics and US-based Zenith

acquired.

1997 40-inch Plasma TV and the

world’s first IC set for DTVs

developed India production

subsidiary (LGEIL)

established.

1998 World’s first 60-inch Plasma TV

developed1999 LG.Philips LCD

established.

2000 LG Information & 2001 Asynchronous IMT-2000

Communications merged the

world’s first Internet-enabled

refrigerator launched Global

sales of refrigerators reached

the number one position.

equipment. Commercialized The

world’s first Internet enabled

washing machine, air conditioner

& microwave oven launched

LG.Philips Displays, a joint

venture with Philips established.

2002 Under the LG Holding

Company system, the

Company spun off to LG

Electronics (LGE) & LG

Electronics Investment (LGEI)

The

first home network system

commercialized in the global

market.

2003 World’s first synchronous-

asynchronous IMT-2000 mobile

phone developed the world’s first

76-inch Plasma TV developed

CDMA mobile handsets took the

largest share in the US and world

CDMA market Launched the

world’s first Super Multi DVD

Rewriter.

2004 EVSB, the next-generation

DTV transmission technology,

chosen to be the US/Canada

DTV transmission standard by

the US ATSC All-in-one LG

55-inch LCD TV, the world’s

first and largest among LCD

TVs, commercialized The

world’s largest and first 71-

inch Plasma TV

commercialized The world’s

first terrestrial DMB phone

developed Wireless Speaker

Home Cinema System.

2005 The world’s first DMB notebook

commercialized The world’s

slimmest TV commercialized The

world’s largest 102-inch Plasma

TV developed LG and Nortel

Networks agreed to establish a

joint venture for

telecommunication network

equipment Satellite-based DMB

hone

commercialized The largest share

seized in the global CDMA

market.

2006 Launched the LG Shine, the

second handset in the Black

Label Series Globally launched

2008 Launched Latest technology LCD

and Plasma Televisions and

various types of handsets with

the steam washing machine

and

interactive TV refrigerator

developed the world’s first

100-inch LCD TV Launched.

The world’s largest Full HD

102-inch Plasma TV (1080p)

developed the world’s first

dual-format high-definition

Disc Player& Drive

latest technology. The world’s

largest Full HD 102-inch Plasma

TV (1080p) developed the

world’s first dual-format high-

definition Disc Player& Drive

Table: 3.1

A VISION FOR THE FUTURE

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

customers worldwide through its innovative products and design. The company’s goal is

to rank among the top 3 consumer electronics and telecommunications companies in the

world by 2010. To achieve this, we have embraced the idea of “Great Company, Great

People,” recognizing that only great people can create a great company.

Figure: 3.1

LOGO CONCEPT

Figure: 3.2

The symbol mark, which represents the “Face of the Future”, incorporates full concepts

and sentiments of the World, Future, Youth, People and Technology.

The Circle with the letter “L” and “G” symbolizes that human beings are the most

important aspects of business and express the resolution to do the best to maintain close

ties with customer and to ensure their satisfaction. The Red Color reinforces an image of

worth and familiarity highlights LG’s challenge to become world Class Company.

LG’s symbol marks the most important element of the corporate identification system; it

is a representative system of LG throughout the world. The symbol creates a unified

mental image of LG necessary in international communication. It is the “Face of the

Future”. It incorporates five concepts and sentiments:-

The World

The Future

Youth

Humanity

Technology

LG IN INDIA

Established in 1997, LG Electronics India Pvt. Ltd. is a wholly owned subsidiary of LG

Electronics, South Korea. In India for a decade now, LG is the market leader in consumer

durables and recognized as a leading technology innovator in the information technology

and mobile communications business. LG is the acknowledged trendsetter for the

consumer durable industry in India with the fastest ever nationwide reach, latest global

technology and product innovation.

One of the most formidable brands, LGEIL has an impressive portfolio of Consumer

Electronics, Home Appliances, GSM mobile phones and IT products.

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

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

Promotion Board (FIPB).

The trend of beating industry norms started with the fastest ever-nationwide launch by

LG in a period of 4 and 1/2 months with the commencement of operations in May 1997.

LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998,

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

Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG

also commenced the home production for its eco-friendly Refrigerators and established

its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The

beginning of 2003 saw the roll out of the first locally manufactured Direct Cool

Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra

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

manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators,

Microwave Ovens Color Monitors.

Both the Indian manufacturing units has been designed with the latest technologies at par

with international standards at South Korea and are one of the most Eco-friendly units

amongst all LG manufacturing plants in the world.

LG has been able to craft out in ten years, a premium brand positioning in the Indian

market and is today the most preferred brand in the segment.

Figure: 3.3

MARKETING STRATEGY OF LG

In a short span of just 26 months, since its inception in May 1997, the brand has

attained a brand awareness level of about 90% in the consumer durable Indian

market.

Considering the fact that LG electronics is a Korean multinational, entering the Indian

market meant establishing itself in a different market altogether with varied culture and

consumer tastes and preferences. Also that so many multinationals are sweeping into the

country, it is evident that each and every company has a cutting edge over another. These

global corporations are deviating from their international methodologies and improvising

their strategies for local markets.

LG’s localization of strategy covers the following areas:

Entry Strategy : It is always better to establish as fully owned subsidiaries. It is

considered better if the company has a local partner but, since LG’s earlier two attempts

had already failed, it decided to do it all alone this time. The strategy that LG has adopted

is presenting an Indianised face to its products but keeping the technology at global

levels.

Operations : LG opted for starting its own manufacturing facility at Greater Noida. The

20 month schedule to commission its manufacturing plant was compressed to 10 months.

The company decided to go in for a Green Field Project rather than acquisitions or

mergers. (For all products except refrigerators).

Products : LG decided to go in for Product Adaptation Strategy. Globally LG does not

operate in the direct cool refrigerator, semi automatic washing machine and 21 inch

CTV’s. But the company had to develop these products for the Indian market because

these areas constitute a major bulk of buys for the Indian consumer. Also LG launched,

Sampoorna, India’s first TV with a devangiri script on screen display on the 50 th

anniversary of Indian Independence. LG’s strategy of localizing its products to suit

Indian tastes added to its strength.

Segmentation : The Company decided to enter the high - end middle-class onward

segment in the initial stages, since most of the Indian brands were targeting the low and

middle end customers. In the past 3 years due to LG’s distinct strategy it has carved a

niche for itself in a crowded segment of 20 manufacturers.

Brand : The Company launched its products in country with “LG, the global leader”. It

did not opt for any established brands in the country to be associated with it.

Leadershi p : At LG electronics, keeping the localized strategy in mind, the strategic areas

such as sales and marketing are headed by an Indian. Generally it happens that the senior

management is deprived of Indians in a transnational but LG wanted to follow this path.

It wanted that the marketing division be headed by an Indian because he would be well-

versed of the Indian market and cultures. Ultimately it is this step, determined whether

the company wants to make profits or obtain a market share. LG definitely wants to be

the leader in the consumer electronics industry. LG Electronics is pursuing the vision of

becoming a true global digital leader, attracting customers worldwide through its

innovative products and design. The company’s goal is to rank among the top 3 consumer

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

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

people can create a great company

THE BUSINESS MODEL

MARKETING MODEL

Figure: 3.4

THE SEGMENTTHE SEGMENT THE PRODUCTTHE PRODUCT THE BRANDTHE BRAND

NICHE/MASSNICHE/MASS TOP OF LINE/MASS MARKET

TOP OF LINE/MASS MARKET

GLOBALGLOBAL

THE PRICETHE PRICE

PREMIUM/ MID RANGE

PREMIUM/ MID RANGE

GROWNGROWN

PREMIUM/ECONOMIC

PREMIUM/ECONOMIC

M A R K E T I N G M O D E L

Table: 3.5

PRODUCT OFFERINGS & RELATED STRATEGIES

OPERATIONAL MODEL

O P E R A T I O N A L M O D E L

ALLIANCEALLIANCE ENTRY STRATEGY

ENTRY STRATEGY

LEADERSHIPLEADERSHIP

FULLY OWNED

FULLY OWNED

GREENFIELDGREENFIELD INDIANINDIAN

INVESTMENTINVESTMENT

INCREMENTALINCREMENTAL

BOTTOMLINEOBJECTIVE

BOTTOMLINEOBJECTIVE

MARKET SHAREMARKET SHARE

LG has right from its inception launched a series of state-of-the-art

technology backed products. The sales and the marketing

department keeps altering & refining the product portfolio

according to the requirements of the consumers.

Business Areas & Main Products

Category Main Products

Consumer

Electronics

LCD TV , Plasma Display , Display Panel, Color

Television, Home Theatre System, Music system, DVD

Recorder/Player, MP3 & MP4 Player

Home Appliances Room Air Conditioner, Commercial Air Conditioner ,

Refrigerator, Washing Machine, Dishwasher,

Microwave, Vacuum Cleaner

Computer

Products

Laptop, Personal Computer, LCD monitor, CRT

monitor, Optical Storage Devices

Mobile Phone Premium trend setter phone , Camera Phone , Music

Phone , Color Screen GSM Handset

Table: 3.2

Initially in 1997, the company had launched only 12 models of CTV’s, 8 models of

refrigerators (300 it + frost free) and 3 models of fully automatic washing machines.

Gradually as the company showed signs of profitability it expanded its range of products

in its portfolio.

Products:

LG decided to go in for Product Adaptation Strategy. Globally LG does not operate

in the direct cool refrigerator, semi automatic washing machine and 21 inch CTV’s.

But the company had to develop these products for the Indian market because these

areas constitute a major bulk of buys for the Indian consumer. Also LG launched,

Sampoorna, India’s first TV with a devangiri script on screen display on the 50th

anniversary of Indian Independence. LG’s strategy of localizing its products to suit

Indian tastes added to its strength.

Product positioning:

“The Unique Selling Proposition (USP) is based on health. “

The company wanted a USP for its products which no other company in the industry

had. Hence it piggybacked on health. This is a niche which none of the other

company’s had thought of. Each of its product lines were positioned based on health:

Golden Eye television- Ensuring wrinkle free viewing

Refrigerators – PN System (preserve nutrition system)

Air conditioners – Health Air AC’s

Washing Machines – Chaos Punch +3-Fabricare system

Microwave Oven –Health wave cooking system

PRICING AND RELATED STRATEGIES

LG believes in “Ethical Pricing”. No compromise has been made by the company on the

price front despite the cut-throat price war existing amongst various players in the

industry. In electronics it was one of the late entrants to enter the market in 1997. While

other companies that time were playing the low price high volumes game, the company

decided to concentrate on the high - end of all the product segments. When the company

entered the market, Baron International (Akai) was on a rampage then, with the Akai

television exchange scheme. Price offs were in and the trade was enjoying credit periods

of any thing between 45 and 90 days.

LG believes in value marketing .

It is exactly opposite of what Akai stands for. Akai is pushing volume by sacrificing

value. LG is sacrificing volume for value. The refusal to interpret Indian price-

sensitivity as value insensitivity seems to have pushed LG into delving deep into

consumer behavior for insights missed by other companies. The big gain of doing it

this way is pricing power and maintaining this will remain critical. The company

when it entered the market in 1997 was targeting the premium end consumer. For

example:

In the refrigerator category it entered the frost free 300 lit + segment which form a

very little portion of the entire refrigerator market. Its 330 lit refrigerator was

priced at Rs. 26,000. On the other hand Godrej and BPL were offering FF

refrigerators any thing between Rs. 16,000 to Rs, 20,000.

LG’s basic 21 inch model of CTV is priced at Rs. 15,500. This price is higher

than Sony’s comparable model (Rs. 14,500). LG holding a price higher than Sony

is something that is unheard of in other markets.

LG’s microwave ovens are nothing less than Rs. 12,500; IFB & BPL (Market

leaders for microwaves) are selling them for less than Rs. 10,000 also.

However the company after three years in the market has come down to mass marketing.

Now it is targeting all the segments in the market. It is even concentrating on the rural

areas now. It has a refrigerator for as low as Rs. 9,300 and a T V for as low as Rs. 9000.

But the company’s premium image in the market could be affected in the short run but

this would enable the company to gain market share in the long run.

DISTRIBUTION AND RELATED STRATEGIES

LG is currently selling its products in 1800 towns and cities with population of one lakh

and above. It has 186 branch offices, 40 distributors and 2,000 dealers all over the

country.

By the end of 2008, the company plans to reach another 8000 towns with a population of

50,000 or more. In this process it will add on to 100 distributors and 1500 dealers. To

achieve this, the company engages eight vans to feed the country covering 5000 km every

month, to familiarize the trade and the customers with LG products.

In every city, LG approached the best dealers but in a scheme-ridden market, it refused to

offer any schemes. It positioned itself as an ethical company, instead of discounts. LG

wanted dealers to pay an advance for LG products. This ensured that the dealer would

push the brand in the market place, even if it was just to keep his oven cash from staying

blocked. In the long run this created a pent-up demand for the brand. LG since its

inception laid stress on Proper Channel Merchandising and Management. Due to a very

calculated network expansion plan, LG has the fastest dealer network expansion in the

industry and the highest dealer productivity.

Dealer loyalty and retention has been high, right from the beginning due to proper

inventory management, higher dealer profitability and incentives, proper POP and other

promotional material to the dealers and a basket full of products for the dealers to choose

from.

SUPPLY CHAIN OF LG:

Figure: 3.6

LG FACTORYLG FACTORY EXCLUSIVE OUTLETSEXCLUSIVE OUTLETS

C & F AGENTSC & F AGENTS

DISTRIBUTORDISTRIBUTOR

DEALERDEALER

SUPPLY CHAIN OF LG.

PROMOTION AND RELATED STRATEGIES

Following are the promotion tools used by LG electronics to promote the company as

well as its products:

Advertising

Public Relations

Sales Promotion

LG has devised an effective advertising and promotional strategy. By using appropriate

media vehicles, strong concepts and USPs were developed. Also, various aspects about

the brand performance, the products and strategies to the media, has been communicated

very well with its excellent public relations. “Today, LG stands as the No. 1 PR

Company in the industry”.

ADVERTISING:

The company started with advertising on print and outdoor media in 1997.The

advertising had to be straight and simple aimed at both the head and heart. For e.g. to

advertise for refrigerators the ad - line went “From today all other refrigerators will

become history”. This was something that pushed the end benefit further toward the

consumer. Over time, the media used extensively to advertise are electronic, print and

outdoor. It is 60% TV, 30% print and 10% outdoor. Also the company has started

with web advertising over the site.

Ratio for its products is the same for promotion :

In order to boost secondary sales the sales and marketing department has launched a

new activity. Two LG lady chefs have been taken on board for cooking demonstration

with the help of LG Microwave Oven. The demos will be held at kitty parties

arranged by DSL members, at dealer counters (to attract walk in customers), to new

LG microwave customers (they would be requested to invite at least 6-7 people to

their house at the time of demo). Currently this activity has started only in Delhi and

Mumbai and will be gradually extended to other branches.

Now that LG is coming up with its digital range of products, the vehicle that the

company plans to adopt would be direct selling, in order to demonstrate the products

wherever possible. The company keeps in mind the seasonality of product while

promoting for its products. It advertises heavily during festive season and also during

summers when the demand for ACs, washing machines is on the rise.

The company considers the Advertising: Sales ratio, if sales are increasing the

company tries to reduce the ad – budget of late LG has got more into corporate

advertising i.e. promoting the brand and its achievements rather than promoting the

product. Even the ads seen on TV these days, LG is trying to promote the brand and

not the product. For e.g. It sponsors a 2- minute programme on Zee TV by name of

“LG Hero’s” where a personality or anybody who has excelled in his/her field speaks

for about two minutes. The clipping showing people who are successful has got

significance with relation to LG’s success in the country. LG was one of the four

sponsors of world cup

PUBLIC RELATIONS

The company takes care of the PR activities on its own mostly for press releases etc.

The officials at LG are very media friendly hence 90% of the media comes to the

company itself. LG stands as the no.1 PR Company in the industry. The company

organizes press conferences very often to keep the media updated on its activities.

SALES PROMOTION

LG since its inception has believed in “No Schemes, no Scheming”.

It is only once in a while that the company comes up with promotional schemes. For

consumers, it has schemes like 10% off on pre- peak purchases and low finance

schemes.

For dealers, the company gives them good margins based on sales, sending them to

Korea etc. Some of the recent schemes that LG has come up with:

Lucky draws on purchase of every LG product, to a lucky customer, he’ll get a

free trip to Singapore for 4 days.

“Save up to Rs. 1000 on LG Microwave” LG microwaves available at

introductory prices till 16th Aug 2006.

According to the stages of the product life cycle, LG is in the growth stage

considering the company’s success over the past 3 years.

Marketing objectives and strategies for the introductory and the growth stage are

summarized below:

Introduction Growth

Marketing

objectivesTo offer technological

superior products in the

market

Preparing for “Digitally

yours” image for the now

millennium

ProductOffering about in total 23

products to the premium

end of the market

Launching digitally

superior products for all

its product ranges

Price Initially prices high to

cater the premium end

Catering to the mass

market via its diverse

priced.

Distribution Selective Intensive

Promotion

Heavy advertising to create

awareness about its

products

More into corporate

advertising i.e. promotion

the brand

Table: 3.3

Chapter-IV

ANALYSIS & FINDINGS

To study the promotional strategies of various brands only newspapers were studied due

to practical limitations. Four newspapers were studied for a period of more than one

month from 20th March to 30th Apr 2008. 2 of them were English Newspapers i.e. Times

of India and Hindustan Times and 2 Hindi Newspapers i.e. Dainik Bhaskar and Rajasthan

patrika.

( Assumption : Advertisement published by individual dealers was not taken into

consideration, only the advertisements given by the branch offices or Head office were

studied.)

COMPARISON ON THE BASIS OF TYPE OF ADVERTISEMENTS

Figure of different type of advertisement of various brands is plotted below. From the

Figure it can be concluded that LG has maximum variety in advertisement. Over a

period

Figure: 4.1

of one month LG published 15 different types of advertisement, followed by Samsung

having 10 types of advertisement. Electrolux and Godrej publish 2 different type of

advertisement, Videocon publish 3 different type of advertisement, Hitachi and Voltas

publish 4 different type of advertisement, and Whirlpool Publish 7 different type of

advertisement with in a period of one month.

Thus we can conclude that LG & Samsung publish maximum variety of advertisement

with in a period of one month.

COMPARISON ON THE BASIS OF TOTAL NUMBER OF

ADVERTISEMENT:

Figure of total number of advertisement of various brands is plotted below. From the

Figure it can be concluded LG published a total of 32 advertisements, which is maximum

in number. After LG other brands are left far behind with Samsung and Whirlpool having

Figure: 4.2

19 and 18 advertisements respectively.

From the above Figure it can also be concluded that the brand Godrej publish minimum

number of advertisement with in a period of one month, Electrolux publish 5

advertisement, Hitachi publish 7 advertisement, Videocon publish 8 advertisement, and

Voltas publish 6 advertisement with in a period of one month.

COMPARISON OF ADVERTISEMENT ON THE BASIS OF NEWS PAPERS:

Total no. of advertisements of individual brands in different Newspapers is noted

percentage-wise. DB publishes total 34 advertisements of the total 99 advertisements

published in all 4 newspapers, i.e. 34%.

Figure: 4.3

DB is preferred by Samsung and Whirlpool, which gives 60% and 45% of its total

advertisement in DB respectively.

HT is preferred by Voltas, Videocon and Godrej as they all give 50% of their

advertisement in HT.

RP is preferred by Electrolux and LG as each of them gives 40% of their

advertisement in RP. TOI is preferred by Hitachi and Whirlpool, which gives 55%

and 45% of its total advertisement in TOI respectively.

COMPARISON OF ADVERTISEMENTS ON THE BASIS OF DAYS:

Figure of total number of advertisement of various brands published on different days is

plotted below. From the Figure it can be concluded that 13 advertisements are given on

Fridays, which is maximum in number.

Figure: 4.4

LG prefers giving its advertisement on Saturdays and Sundays; it gives 21% of its

advertisement on each of these days. LG gives About 7 advertisement on both day

Saturdays and Sundays.

Samsung prefers Friday for giving its advertisement as it gives 26% of its

advertisement on Fridays. Samsung Gives 5 advertisement on Friday and 4 on

Wednesday.

Whirlpool prefers Wednesday for giving its advertisement as it gives 22% of its

advertisement on Wednesdays.

COMPARISON ON THE BASIS OF SIZE OF ADVERTISEMENT:

Advertisement was categorized into 4 categories on basis of their size. Of all the

advertisement 45% of advertisement are of 300 - 600 cm2 categories. Advertisement of

Figure: 4.5

[Note Here: In the above Figure

1 = Electrolux (5), 2 = Godrej (4), 3 = Hitachi (7),

4 = LG (32), 5 = Samsung (19), 6 = Videocon (8),

7 = Voltas (6), 8 = Whirlpool (18) ]

size >600cm2 were highest of Electrolux equal to 80%. All the advertisement of Godrej

was of 300-600 cm2 size. All the advertisement of Videocon was of 150- 300 cm2 size.

Thus brand Electrolux prefer to big size advertisement.

COMPARISON ON THE BASIS OF MOSTLY TEXT/ ILLUSTRATION :

Advertisement was categorized on basis of whether it contains mostly text or illustration.

All the advertisement of Videocon had mostly text. In rest of the brands, advertisement

had more of illustration.

Figure: 4.6





In Godrej, Electrolux and Hitachi all the advertisement had mostly illustration.

Comparison on the basis of mostly text or illustration can be understood easily with the

help of below chart.

COMPARISON ON THE BASIS OF PRESENCE OF HUMAN MODEL:

Advertisement was categorized on basis of whether it contains a human model or

not. All the advertisement of Electrolux, Godrej and Whirlpool had human model.

While none of the advertisement of Hitachi and Videocon had human model.

Figure: 4.7





About 90% advertisement of LG had no human model while only 10% of

advertisement of LG had human model.

COMPARISON ON BASIS OF FREQUENCY OF ADVERTISEMENT:

Advertisement was categorized on basis of their frequency in newspaper. It can be

concluded that 77% of the times LG gives its advertisement everyday in newspaper.

Highest Gap of 4 days was found in LG. 44% of the times Samsung gives its

advertisement everyday in newspaper. Highest Gap of 4 days was found in Samsung.

54% of the times Whirlpool gives its advertisement everyday in newspaper. Highest Gap

of 3 days was found in Whirlpool.

COMPARISON OF ADVERTISEMENTS ON THE BASIS OF

PRODUCTS:

Of all the advertisements, AC has maximum of 36 advertisement followed by Ref. having

32 advertisement. Hitachi, Voltas and Videocon give advertisement of only AC. While

Electrolux and Godrej gives advertisement of only Ref. Whirlpool gives 40%

advertisement of both AC and Ref each. Samsung gives 55% advertisement of Ref.

While LG gives maximum of 40% advertisement of All Product range.

Figure: 4.8

FINDINGS OF CONSUMER’S PERCEPTION

A total of 100 consumers were taken into consideration for the analysis. The survey

covered different houses and markets in Delhi.

Consumer’s Perception In Delhi:

Consumer’s Perception was analyzed on basis of various variables. They are

discussed below.

Figure: 4.9

Perception on the Basis of Recall of Brand for Consumer Electronic Items:

Consumer electronic items include Television, Refrigerator and Air Conditioners.

Consumers were asked to recall the advertisement of any brand and their responses are

measured and plotted in the Figure. From the Figure it is observed that advertisement of

LG brand was recalled mostly.

Figure: 4.10

Perception on The Basis of Recall of Brand for Home Appliances:

Home electronic items include Washing Machine and Micro Wave Ovens. Consumers

were asked to recall the advertisement of any home appliance brand and their responses

are measured and plotted in the Figure. From the Figure it is observed that advertisement

of LG brand was recalled mostly.

Figure: 4.11

Perception Towards Products of LG:

Consumers were asked to rate various factors of LG products and their response was

measured and plotted. From the figure it is observed that LG products were perceived to

have high cost, better quality and have high brand equity.

Figure: 4.12

AGE-WISE CLASSIFICATION OF CONSUMER’S PERCEPTION:

Consumers Perception was analyzed on basis of various Age groups.

Perception of Factors Affecting Buying Behavior:

Various factors affecting buying behavior were asked to be ranked by consumers in the

questionnaire

Figure: 4.13

They are plotted in a Figure. From the Figure it can be observed that in the age group20-

34, Price and Discount Offers were found to be most important factor. In the age group

35-50, Price and Brand were found to be most important factors. In the age group >50,

Convenience and Adv. And Publicity was found to be most important factors.

Perception on The Basis of Recall of Advertisement:

Consumers were asked to recall the advertisement of LG products and their response was

measured and plotted in the Figure. From the Figure it is observed that age group of 20-

34

Figure: 4.14

recalled mostly advertisement of Ref. and AC. While age group of 35-50 recalled mostly

advertisement of CTV and Washing Machines while age group > 50 recalled Adv. of Ref.

and W/M.

Data Table : CTV Ref. AC W/MMW.

50 yrs & above 20 20 6 20 15

B/W 34 to 50yrs 30 25 20 30 45

B/W 18 to 34 yrs 35 38 30 35 40

SEX-WISE CLASSIFICATION OF CONSUMER’S PERCEPTION:

Consumers Perception was analyzed on basis of Sex.

Perception of Factors Affecting Buying Behavior:


questionnaire.

Figure: 4.15

From the above Figure it can be observed that in males, Adv. and Publicity were found to

be most important factors. In females, Capacity and Convenience were found to be most

important factors.

Perception on Basis of Recall of Advertisement:


measured and plotted in the Figure.

Figure: 4.16

From the figure it is observed that females recalled adv. of Micro Wave and Washing

Machines. While males recalled mostly advertisement of CTV and Ref.

USAGE WISE CLASSIFICATION OF CONSUMER’S PERCEPTION

Consumers Perception was analyzed on basis of whether they already possess LG product

or not.

Perception of Factors Affecting Buying Behavior :


questionnaire.

Figure: 4.17

From the Figure it can be observed that in Non-users, Price and Brand equity were found

to be most important factors. In Users, Services provided and Durability was found to be

most important factors.

Perception on Basis of Recall of Advertisement:


measured and plotted in the Figure.

Figure: 4.18

From the figure it is observed that Non Users recalled Adv. of AC and W/M. While Users

recalled mostly advertisement of CTV, Ref. and M/W.

FINDINGS OF DEALER’S PERCEPTION:

Dealer’s Perception :

Dealers were asked questions regarding various factors and were asked to rate them on a

5 point scale. Points scored by individual brands were added. Maximum points, which

could be scored by any brand, were 21. Their responses are plotted in the Figure.

From the figure it is concluded that Sansui and Samsung were perceived as the best

brands with 10 points i.e. 47%.

Samsung and Crown were told to have highest Warranty period, a total of 66%

points.

Sansui and Crown were told to have best after sales service, a total of 83% points.

Crown and Electrolux offers highest credit period, a total of 66% points.

Akai has best Employee behavior, a total of 66% points.

Godrej offers best supply, a total of 66% points.

LG has best POPs, a total of 66% points.

Sansui, Crown and Videocon offer best incentives to its dealers, a total of 50% points.

Comparison of various brands on the basis of dealer’s Perception:

Figure: 4.19

Data table:

Warranty period 1.6 2 2 0.8 1.6 1.6 1.6 1.6 1.6 1.2 0.8

After sales services 2.4 1.8 2.4 2 0.8 1.2 0.8 0.8 0.8 1.2 1.6

Credit period 1.6 1.2 2 0.8 2 1.2 1.2 - 1.6 1.6 0.8

Employee behavior 2 1.6 1.2 1.6 0.8 1.2 2 0.8 1.2

Supply 0.8 1.2 - 1.2 1.2 1.2 - 2.4

POP 1.2 2 0.4 1.2 0.8 1.2 0.4 1.6 0.4

Incentive 1.6 1.2 1.2 0.6 0.8 1.2 1.4 1.2 1.2 1.0 1.2

SWOT ANALYSIS:

Strengths Weaknesses

Premium pricing, no discounts.

Focus on technology and quality.

Strong commitment from parent.

In – house manufacturing

capability.

Products localized to suite Indian

tastes.

Lack of transparency with dealers.

Focus on niche segments.

Dominance of Korean work culture.

Little presence in A&B class towns.

Threats Opportunity

Way behind market leader.

Stagnant urban demand.

Nothing unique about strategy.

Highly competitive market.

Convert image into market

share.

Wide product portfolio.

Positive rub-off due to high

quality.

Healthy resource generation.

Table: 4.1

The strategy adopted by the company of premium pricing could turn out to be its

weakness in the long run. It would enable it to remain a low volumes player only. Even a

company like Sony, which believes in selling premium products globally, has decided to

introduce cheaper washing machine models to increase its volumes in small towns. The

reason for doing this is because future demand will come from the small towns and the

rural areas where consumers are extremely price sensitive.

However, within the past three years the marketing efforts of LG has paid fruits but now

the company must move ahead with better proposals and ideas to survive in the

competitive market. The key to survive in a competitive market place is the ability to

launch models with innovative features at regular intervals. Currently LG has a wide

range of products but it needs to aggressively introduce more models.

LG electronics has to go a long way before it becomes a major in the consumer durables

market. Becoming India’s top consumer electronics company, it means surging past BPL,

Videocon and Philips. At the moment BPL is the largest player in consumer electronics

and home appliances. And these companies definitely have its eyes open to know what is

happening in the industry. However “LG’s technological superiority will provide the

cutting edge to its marketing strategy”. Also the support that the company is getting

from the parent company that is willing to invest in more money, the company’s growth

is assured.

Chapter-V

CONCLUSION:

The result of success in today’s highly charged competitive market depends not only in

product innovation and level of productivity but also in hands of efficient service network

with technological advancements and more adaptability towards information edge.

It has been seen that companies are trying to lower the cost of production and trying to

give more emphasis in creating value added customer base and customer service. It has

lead to extreme innovation and cost reduction to the marketer. It is also seen during last

few years that the companies, which have more, efficient, and meaningful service

network and also the companies who have controlled the cost of distribution have

eventually controlled the market. Companies are finding that they can attract more

customers by giving better service or lower prices through better physical distribution.

On the other hand, companies may lose customers when they fail to provide service to its

customers at the right time because a satisfied customer brings five new customers while

a dissatisfied customer takes away fifty.

In order to multiply sales volume, only an efficient dealer and retail network can widen

the geoFigureical reach of a company’s products. There is substantial over capacity in the

industry. A shakeout is most likely and survival will depend upon technology, pricing

power, efficient after sales service and to a limited extend branding power.

One thing has become quite clear now, strategic marketing is critical for survival and

growth.

Assessment of environmental information and determining the relative significance of

threats and opportunities is an important aspect carried by all the major players. For this

preparation of a profile of threats and opportunities is done.

Environmental Threats:

Competition- Indian market is becoming highly competitive after the globalization;

MNC’s are giving very high competition to the Indian domestic brands.

Value for money- Indian market is very price sensitive, customer’s value for their

money.

Distribution channel- Every company concentrates on its strong distribution.

Check on unorganized market thriving- inputs that are imported ones in at excise

paid cost has no Modified Value Added Tax paid.

Customers now days are very much aware about the products, so companies work

hard on providing information, offers, specialty of their products to customers.

Every company stress on promotional based marketing.

Environmental Opportunities:

Building Brand- Company’s image and brand name plays a great role in the

purchasing behavior of consumers. Every company tries to increase their brand name.

Untapped rural market- Certain market surveys show that market is growing at the

rate of around 25%, so company’s like BPL, LG, Samsung are ahead in this category

and are trying to tap this big market.

Technology- These days the customer preference are taking a shift to technological

awareness, they do not any more rely on the technology heard, rather they have the

potential to get aware, and analyze the same and adapt them.

Socio Economic Condition- Socio Economic Condition is a major aspect which is

giving a boom to the Consumer durable industry, the purchasing power and the

expenditure in entertainment of the customer is increasing day by day.

CRM- Customer Relation Management is another area where all companies are

trying to make their imprint.

RECOMMENDATIONS

Advertisement to build the brand image that will provide the required

ground to establish the authenticity to the product.

POP (Point of Purchase) displaying the cost electronic product at

Rs. 10000 per unit.

Awareness programs at health club, schools & Nursing homes.

To win over the consumer belief and faith over the genuity of the product.

Chapter-VI

BIBLIOGRAPHY

BIBLIOGRAPH

Y:

1)1) A&M 2006, February, "LG's Fine Push & Pull Strategy".

2)2) Business Today, April 2006, "Will LG be Lucky Enough to Strike Gold",

George Skaria.

3)3) Johnson & Schools, "Exploring Corporate Strategy", Text and Cases.

Prentice Hall of India, 5 th Edition, 2002

4)4) Kotler Philip, "Marketing Management", Prentice Hall of India, 2004.

5)5) Strategic Marketing by Watson and Sons 2004 edition

6)6) Wilson & Gilligan, "Strategic Marketing Management", Viva Books

Private Limited.

7)7) T.N. chhabra & S.K. Grover, “Marketing Management”, Dhanpat Rai & Co. (Pvt.)

Ltd.

8)8) www.lgindia.com .

9)9) www.top.education.com

http://www.top.education.com/

http://www.lgindia.com/

Chapter-VII

APPENDICES

APPENDICES

“CONSUMER ELECTRONICS MARKET STUDY”

For the purpose of collection of the data various methods are used, one of these is

Questionnaire Method. In this study two Questionnaires are prepared one for customers

and another one for dealers. These two Questionnaires are given to 100 customers and 70

Dealers in Delhi for filling up. Thus data collected from these Questionnaires is analyzed

by representing Figureically. Thus following two Questionnaires are taken into consider:

Questionnaire for Customers, and

Questionnaire for Dealers

QUESTIONNAIRE FOR CONSUMERS

1) Full Name: ……………………………………………………………………………….

2) Which of the following Age group do you belong?

Above 50yrs 20yrs to 35 yrs

35yrs to 50 yrs Less than 20 yrs. (terminate.)

3) Sex:

Male Female

4) Monthly Income:

Less than Rs 3000 Rs 3000 to 9000

Rs 9000 to 15000 above than Rs 15000

5) Are you planning to buy any consumer electronics item within a year?

Yes (continue) No (terminate)

6) Are you or someone else in your family working for a consumer electronics

company?

No (continue) Yes (terminate)

7) What is your total monthly household income?

Less than Rs 3000 Rs 3000 to 9000

Rs 9000 to 15000 above than Rs 15000

8) What all products of consumer electronics are there in your house?

CTV:

LG Samsung Sansui

BPL Videocon Onida

Other ………

Refrigerator:

LG Whirlpool Electrolux

Godrej Other………

Air Conditioner:

LG Carrier Hitachi

Voltas Samsung Other………

Washing Machine:

LG Samsung Whirlpool

Videocon Other………

Microwave:

LG Samsung Kenstar

IFB Whirlpool Other………

9) Rank the following factors in the way they affect your buying decision of a

consumer electronics product? (Rank 1 being least important and 5 being most

important)

Price Brand Durability

Capacity Convenience Adv. & Pub.

Discount Offers Service provided by the co.

10) Which two brands first come in your mind when you talk of consumer Electronic

items and Home Appliances?

Consumer Electronic Item: ___________________

___________________

Home Appliances: ___________________

___________________

11) What is your impression about the following on LG products? (Rank these

factors from 0 to 100.)

High Cost ……..

Better Appearance ……..

More Functions ……..

Durable ……..

Easy to use ……..

Better After Sale Services ……..

Good Brand Equity ……..

Better Quality ……..

Take Care of Health ……..

Better Variety ……..

Effective Advertisement ……..

12) What additional features you require to become a prospective Customer of LG?

________________________________________________________________________

________________________________________________________________________

13) Any Recommendations and Suggestions.

________________________________________________________________________

________________________________________________________________________

(Thank you for participating in our survey)

QUESTIONNAIRE FOR DEALERS

1) Name of Dealer: …………………………………………………………………………...

2) Name of Owner: …………………………………………………………………………..

3) What all items of consumer electronics are sold in this shop?

(Read below list and mark check box before the consumer electronic items which

are sold in this shop and write others also, if any)

None (terminate). Refrigerator. Air Conditioner.

Colour Television. Washing Machine. Microwave.

Others…………

4) For how long you have been selling consumer electronics items in this shop?

Less than one year (terminate).

One year or more (continue).

5) What all brands of consumer electronics are sold in this shop?

(Read list, given below, and mark check box before the Brand, consumer electronic

items of which are sold in this shop and write others also, if any)

LG Samsung Whirlpool

Voltas Videocon Electrolux

Godrej Hitachi Sony

Others………..

6) What are your annual sales of following products of various brands during past

year?

(Annual sales in units)

(Record answers of questions 3 in table below; ask sales of ticked

items only)

Brands.

Different electronic products.

Ref. AC CTV W/M M/W

LG.

Samsung.

Whirlpool.

Voltas.

Videocon.

Electrolux.

Godrej.

................

………….

………….

7) What is your opinion about Warranty Period offered by company in its products?

(Ask about ticked brands only.)

(Record answer of question 4 in table below :)

BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsung

Whirlpo

ol

Voltas

Videoco

n

Electrolu

x

Godrej

………

…

………

…

………

…

8) What is your opinion about Credit Period offered by company?

(Ask about ticked brands only)


BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsun

g

Whirlpo

ol

Voltas

Videoco

n

Electrol

ux

Godrej

………

…

………

…

………

…

9) What is your opinion about Supply offered by company?



BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsung

Whirlpo

ol

Voltas

Videoco

n

Electrolu

x

Godrej

………

…

………

…

………

…

10) Do you think that Catalogues and POPs (Point of Purchase) provided by company

are effective?



BrandsCompletely

Agreed

Vary much

Agreed

Somewhat

AgreedNeutral.

Somewhat

Disagreed

Vary much

Disagreed

Complete.

Disagreed

LG

Samsung

Whirlpool

Voltas

Videocon

Electrolux

Godrej

…………

…………

…………

11) What is your opinion about After Sales Service offered by company to its

customers?



BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsung

Whirlpoo

l

Voltas

Videocon

Electrolu

x

Godrej

…………

…………

…………

12) What is your opinion about Sales Incentives offered by company to you?



BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsung

Whirlpool

Voltas

Videocon

Electrolux

Godrej

…………

…………

…………

13) What is your opinion about Employee Behavior of following Companies?

(Ask about ticked brands only.)


BrandsTotally

Unsatisfied

Very much

Unsatisfied

Somewhat

UnsatisfiedNeutral

Somewhat

Unsatisfied

Very much

Unsatisfied

Totally

Unsatisfied

LG

Samsung

Whirlpool

Voltas

Videocon

Electrolux

Godrej

…………

…………

…………

LG (Marketing Strategies)

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