CHAPTER-1

INTRODUCTION

1.1.1 Overview of the organization

LG Electronics is a South Korean multi-national electronics company headquartered in Yeouido-dong, Seoul,

and a member of the LG Group . The LG Group was a merger of two Korean companies, Lucky and Gold Star,

from which the abbreviation of LG was derived. The current "Life's good" slogan is a acronym. Before the

corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic

products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount

brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

The company operates its business through five divisions: Mobile Communications, Home Entertainment,

Home Appliances, Air Conditioning, and Energy Solutions. It is the world's second-largest television

manufacturer and the world's fifth-largest mobile phone maker by unit sales in the second quarter of 2012.

LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, mobile

communications and home appliances. With 117 operations around the world, LG achieved global sales of

KRW 54.26 trillion (USD 49 billion) in 2011. LG is comprised of four business units – Home Entertainment,

Mobile Communications, Home Appliance, and Air Conditioning & Energy Solutions – and is one of the

world’s leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and

refrigerators LG Electronics (LGE) makes the products that have tech-savvy consumers chomping at the bit in

the kitchen, in the media room, and on the go. A leader in consumer electronics, mobile communications, and

home appliances, LGE operates through more than 80 subsidiaries worldwide that design and make flat panel

TVs, audio and video products, mobile handsets, air conditioners, washing machines, refrigerators, and more.

Asia and North America are its two largest markets, each contributing about 30% of sales. LGE owns Zenith

Electronics (acquired in 1995) and LG Display. Founded in 1958 as Goldstar, LGE established a North

American headquarters in 2004. South Korea's LG Corp. owns about one-third of LGE.

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1.1.2 Global operations

LG Electronics is playing an active role in the world market with its assertive global business policy. As a

result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees.

LG Group

LG.Philips LCD

 LG Chemical

 LG Telecom

LG Powercom

 LG Twins

LG Dacom

ASIA & PACIFIC

Australia

LGEAP(LG Electronics Australia Pty, Ltd.)

Marketing

2 Wonderland Drive Eastern Creek NSW 2766 Australia

61-2-8805-4000

61-2-8805-4250

India

LGEIL(LG Electronics India Pvt. Ltd.)

Marketing & Production

Plot No. 51, UdyogVihar, Surajpur-Kasna Road, Greater Noida - 201 306(U.P.)

91-120-2560 900/940

91-120-2560-956

Indonesia

LGEIN(P.T. LG Electronics Indonesia)

Marketing & Production

Wisma 77 Jl. S. ParmanKav. 77, 15Fl, Slipi Jakarta 11410 Indonesia

62-21-8998-1555

62-21-8998-2755

Japan

LGEJP(LG Electronics Japan, Inc.)

Marketing

Hon-Kan9F, Akasaka Twin Tower2-17-22 Akasak,Minato-Ku, Tokyo 107-8512-,Japan

81-3-3588-1911

81-3-3586-3984

Korea(Headquarters) LG Electronics LG Twin Towers 20,Yoido-dong, Youngdungpo-gu

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Headquarters

Seoul, Korea 150-721

82-2-3777-1114

Korea(Headquarters)

LG Electronics Changwon Digital Appliance company

Production

391-2, Gaeumjeong-dong, Changwon City, Gyeongnam, 641-711, Korea

82-55-260-3114

82-55-260-3020

Korea(Headquarters)

LG Electronics Cheongju Plant

Production

LG Electronics Cheongju Plant, Hyangjeong-dong, "Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, 361-726 Korea

82-43-279-3114

82-43-279-3116

Korea(Headquarters)

LG Electronics Gumi TV/MNT Plant

Production

642, Jinpyung-dong,Gumi-City,Gyung Buk,730-727,Korea

82-54-470-2114

82-54-470-4721

Korea(Headquarters)

LG Electronics Pyungtaek Digital Park

Production

19-1, Cheongho-ri, Jinwi-myeon, Pyeongteak-Si, Gyeonggi-do, 451-713, Korea

82-31-610-5114

82-31-610-5134

Malaysia

LGEML(LG Electronics Malaysia SDN.BHD)

Marketing

Level 1 & 2, KelanaBrem Tower 2, Jalan Stadium (SS 7/15) 47301 Kelana Jaya Selangor DarulEhsan, Malasia

60-3-7491-2888

60-3-7491-2800

Philippines

LGEPH(LG Electronics Philippines Inc.)

Marketing

15 FRANCISCO LEGASPI STREET MAYBUNGA,PASIG CITY, PHILIPPINES

63-2-641-4181

63-2-641-2656

Singapore

LGESL(LG Electronics Singapore PTE LTD)

Marketing

8 Temasek Boulevard,#27-2 Suntec Tower 3 Singapore 038988

(65)6333-6092

(65)6333-6110

Taiwan LGETT(LG Electronics Taiwan Taipei Co.,Ltd.) 7F, No.47,Lane3, Jihu Road,

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Marketing

NeiHuDistrict,Taipeicity,Taiwan, R.O.C.

886-2-2627-2788

886-2-2627-4977

Thailand

LGETH(LG Electronics (Thailand) Co., Ltd.)

Marketing & Production

75/81 Richmond Bldg. 22nd Fl. Sukhumvit 26, Klongton, Klongtoey, Bangkok 10110

66-2-204-8888

66-2-260-8800

Vietnam

LGEVN(LG Electronics Vietnam co.,Ltd)

Marketing & Production

14th Floor, Hanoi Central Office Blog. 44B Ly ThuongKiet, Hanoi

84-4-9345151

84-4-9345152

1.1.3 Business areas and main products

1. Mobile communications

CDMA Handsets

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GSM Handsets

3G Handsets

Cellular Phones

2. Digital appliance

Air Conditioners

Refrigerators

Microwave Ovens

Washing Machines

Vacuum Cleaners

Home Net

Compressors for Air Conditioners and Refrigerators

3. Digital display

Plasma TVs

LCD TVs

Micro Display Panel TVs

Monitors

PDP Modules

OLED Panels

USB Memory

Flat Panel Computer Monitors

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4. Digital media

Home Theater Systems

DVD Recorders

Super Multi DVD Rewriters

CD±RW

Notebook PCs

Desktop PCs

PDAs

PDA Phones

MP3 PlayersNew

Karaoke Systems

Car Infotainment

HOME ENTERTAINMENT

LG has become a top global player in home entertainment by blending stylish design and cutting-edge 3D

and Smart TV technology in their flat-panel TVs, audio players, monitors, PC and other products.

LG Home Entertainment Company is a major manufacturer of high-tech electronics with an ongoing

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commitment to developing next-generation displays. This gives LG a distinct advantage in this fast-

moving industry.

LG will continue to invest in future technology and redefine expectations for the future of entertainment,

thus positioning itself as the No. 1 global player in the home entertainment market.

MOBILE COMMUNICATIONS

A global leader and innovator in the global mobile communications industry, LG Electronics Mobile

Communications Company (LG) provides consumers with superior mobile experiences through its smart

technology and stylish design, while creating new trends based on consumer insights and demands.

Increasingly emerging as a leader in smart devices, LG produces a full line-up of smartphones from

premium to mass-tier, which deliver exceptional value and a singular user experience to consumers all

around the world. LG aggressively focuses on setting new standards in mobile technologies and

developing market-leading smartphones and tablet PCs with superb hardware functionality, innovative

design and outstanding displays. With strong technology leadership in the mobile industry, LG is at the

forefront of new trends in smart devices with innovative features such as multi-core processors, 3D,

bright and clear displays, and 4G LTE (Long Term Evolution). With innovations and features such as

these, LG continues to roll out an array of market-leading smart devices, raising the bar for consumer

satisfaction. LG is also increasingly helping to shape the course of smartphone platforms, and increase

customer choice, through its close relationship with Google and Microsoft. Through innovations that

enhance users’ everyday lives, LG will continue to set trends and shape the future of mobile phones.

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AIR CONDITIONING & ENERGY SOLUTION

The LG Electronics Air Conditioning and Energy Solution Company is an industry leading complete

heating, ventilation and air conditioning (HVAC) and energy solution company trusted around the

world, which provides Residential Air Conditioning (RAC), Commercial Air Conditioning (CAC) and

Lighting solutions around the world.

Based on technological leadership and combining a full line-up of HVAC system, lighting solutions and

high technology, LG AE has been providing comprehensive, energy efficient and environmentally

responsible solutions to customers with diverse needs across the globe. Recently, LG AE is increasingly

expanding into specialized B2B solutions with a central focus on eco-friendliness and energy efficiency.

Through its innovative technology, heavy investments in R&D and effective marketing strategies, LG

AE has broken its own sales records every year since 2000. Through a comprehensive solution, LG AE

Company is aiming to reach USD 10 billion in global sales by 2015.

HOME APPLIANCES

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LG Home Appliance Company has always provided leading-edge technology with stylish designs. LG is

committed to preserving our natural environment and creating consumer-optimized products. In particular,

LG has long been a top brand in washing machines, delivering innovation, durability and exceptional

performance.

Through their enhanced connectivity, LG’s smart appliances enabled by THINQ technology provide our

customers with the ultimate benefits of empowerment and convenience, delivering a fully integrated smart

solution today.

Underpinning all LG’s achievements are its four core technologies – the Linear Compressor, Inverter Direct

Drive™, Lightwave and KOMPRESSOR. LG is also making homes smarter and more connected with its

THINQ™ technology: the Smart Grid, Smart Diagnosis, Smart Access, Smart Adapt and Smart Manager. LG’s

smart appliances enrich consumers’ lives, making their homes greener, more reliable and more efficient.

Building on its outstanding range of existing products, LG is taking a proactive approach to energy and

environmental issues as it looks to minimize greenhouse gas emissions and increase energy efficiency. LG also

cares about hygiene in the home, creating products with health-conscious features. In addition, to help our

customers lead healthier, more convenient lives, LG is planning to expand its healthcare business with new

health-conscious products based on CoreCare

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1.1.4 Management of LG electronics

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KEY EXECUTIVES

Name Title

Bon-Joon Koo Vice Chairman and Chief Executive Officer

Jong-Sik Kim President and Chief Operating Officer

Young-Ha Lee President and Business Support Officer

Moon-Bum Shin President and Head of China Operations

Seung-Kwon Skott Ahn President and Chief Technology Officer

BOARD MEMBERS

Name Primary Company

Bon-Joon Koo LG Electronics Inc.

David Jung LG Electronics Inc.

Yu-Sig Kang LG Corp.

Bon Moo Koo LG Corp.

In-Ki Joo LG Electronics Inc.

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1.1.5 MANAGEMENT BY PRINCIPLES

The starting point for LG Electronics' business pursuits lies in the company's commitment to society and to

developing new ideas. LG Electronics' "Management by Principles" embodies our high ethical standards of

doing business in a transparent and honest manner.

As LG continues to develop as a global leader, its strength will continue to be derived through this pursuit of a

greater good, while upholding the fundamentals of cooperation, mutual trust, and respect for the free market

economy.

1.1.6 THE LG WAY

"Management by Principle" ("Jeong-do" Management) is the ethical code LG abides by in all its affairs-aiming

to succeed through fair management practices, and constantly striving to better our business skills.

1.1.7 SUSTAINABILITY MANAGEMENT SYSTEM

"Creating value for customers" and "respect-based management" have long been the principles behind LG

Electronics' management activities-aiming, in sum, to promote the basics of sustainable corporate management.

Moving forward, these two philosophies will continue to provide a framework for our corporate style.

LG Electronics has established four basic methods to achieve corporate sustainable management.

Firstly, LG Electronics continually assesses new ways to develop its organization and systems-and to strengthen

its internal competencies-so that the three focal points of sustainable management: economic profitability, eco-

friendliness, and social responsibility, can be assured.

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1.1.8 History of LG company

The trajectory of LG Electronics, its growth and diversification, has always been grounded in the company

ethos of making our customers' lives ever better and easier-happier, even-through increased functionality and

fun. Since its founding in 1958, LG Electronics has led the way to an ever-more advanced digital era. Along the

way, our constantly evolving technological expertise has lent itself to many new products and applied

technologies. Moving forward into the 21st century, LG continues to on its path to becoming the finest global

electronics company, bar none

The company was originally established in 1958 as Gold Star

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1958-1969-GoldStar The Electronics Industry Dream

1970-79 GoldStar symbol of The Technolgoy

1980-88 :- INTERNATIONALIZATION

1989-94  INOVATION

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1995-98 GLOBAL LEADERS LG ELECTRONICS

1999-2003-DIGITAL MANAGEMENT

2004-2006 GREAT PEOPLE GREAT DESIGN

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2007-THE PEOPLE COMPANY

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of

LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG,

household products were sold under the Brand name of Lucky, while electronic products were sold under the

brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

1.1.9 LG India

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in

January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art

manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility

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

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''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand

Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the

country, of which 45 are shops and 38 are exclusive stores. Brand shops will be placed in the premium segment

and the target audience will comprise buyers interested in premium and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive

environment and additional lifestyle orientation on display so that the customer can actually experience the LG

products in his or her own home settings.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new

image. To attract inspirational and young consumers across India, company will roll out a new marketing

strategy. The exercise will cost the company Rs 360 crore.

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

computer peripherals industry today. LG Electronics is continually providing, superior technology products &

value for money to more than 50 lakh households in India. 

1.1.10 Strategic Alliance

LG Electronics is making technical advances and identifying business opportunities through various associative

relationships with some of the world's leading companies.

LG Electronics will do its best to create new products and services with an open mind, while developing new

technologies and business fields through various associations with some of the world's most successful

companies.

1. 3M

2. SUN

3. YAHOO

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4. PHILLIPS

5. TOYOTA

6. MICROSOFT

7. HP

8. GOOGLE

1.1.11 Market Share & Position of LG

LG Electronics Inc for the first time has climbed up the sales ladder and positioned itself on number three after

Apple Inc and Samsung Electronics Co Ltd. As per data LG has acquired this position in a $ 223 billion market.

LG saw its smart phone market share rise to 3.2 percent in the fourth quarter by sales, propelling it to the third

spot for the first time, while rival HTC Corp slid to fourth, data from research firm Strategy Analytics showed.

Together, Samsung and Apple has acquired 71.4 percent of the market and rest  is split among firms such as LG,

HTC, Sony Corp and Blackberry, the data showed.

Reflecting growing optimism that LG’s smart phone business will recover, LG Electronics shares have gained

54 percent from their 2012 low hit in late July. LG is betting high-end models that boast powerful hardware and

software features and a fast 4G connection will help it rebuild its tarnished handset brand quality and increase

its market share of the lower-end segment as well.

The South Korean company announced its software upgrades for its flagship Optimus G Pro model that will

allow consumers access to features that Samsung touted as major selling points of its upcoming Galaxy S4. The

move is its latest attempt to boost appeal to up market consumers before rival products hit the market.

The features LG is adding include motion detecting technology that stops and starts videos depending on

whether someone is looking at the screen and snapping pictures.

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The 5-inch Optimus Pro debuted in South Korea in late February and in Japan this month. It is LG’s fastest-

selling smart phone with sales hitting 500,000 in the first 40 days of the launch, LG said.

If unit shipment is considered, LG occupies the seventh position with 4.0 percent share, following Huawei,

Lenovo Group Ltd, Sony and ZTE Corp which have market share of between 4 and 5 percent.

Analysts expect LG’s smart phone shipments will rise by 16 percent to a record 10 million after 8.6 million

phones sold in the fourth quarter, a strong performance as the overall market is seen contracting by 6 percent

from the strong year-end holiday quarter.

1.1.12 BRAND IDENTITY

LG strives to enhance its customer’s life and lifestyle with intelligent product features, intuitive functionality,

and exceptional performance. Choosing LG is a form of self-expression and a promise of satisfaction. Our

customers take pride in owning an object of excellence and take comfort in knowing they’ve made a smart,

informed purchase, every time.

1.1.13 BRAND PLATFORM

The LG brand is comprised of four basic elements: values, promise, benefits, and personality.

1.1.14 The Slogan

LG is the brand that is Delightfully Smart. "Life's Good" slogan, and

futuristic logo are a great representation of what we stand for.

Global, Tomorrow, Energy, Humanity and Technology are the pillars that

this corporation is founded on; with the capital letters L and G positioned

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inside a circle to center our ideals above all else, humanity. The symbol mark stands for our resolve to establish

a lasting relationship with, and to achieve the highest satisfaction for our customers. 

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

philosophy is based on Humanity. Also, it represents LG's efforts to keep close relationships with our customers

around the world. The symbol mark consists of two elements: the LG logo in LG Grey and the stylized image of

a human face in the unique LG Red color. Red, the main color, represents our friendliness, and also gives a

strong impression of LG's commitment to deliver the best. Therefore, the shape or the color of this symbol mark

must never be changed. 

Our logo is the fundamental visual expression used to identify LG. It expresses the quality and sophistication

that is the hallmark of our products. It is simple, modern and distinctive. Consistent and proper usage of the logo

is absolutely essential. The logo is symbolic of our steadfast reputation for excellence; therefore, any variation

of the logo diminishes the visual identity of LG Electronics and its products. 

1.1.15 CORPORATE LOGO

Applicable Items :

- Stationery

(Business Card, Letterhead, Envelope)

- Office templates (Fax, Memo)

- Awards

- ID badges

- Corporate signs

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3D LOGO

Applicable Items :

- Advertising

(Print, Online, TV and Outdoor)

- Websites and microsites

- Promotional literature

(Leaflet, Brochures, etc)

- Packaging

- Retail signs and POPs- Shopping bags

- Service vehicle

FACE

The stylized image of a smiling face is meant to convey company friendliness and approachability. That the

portrait is one-eyed conveys LG’s profile as goal-oriented, focused, and confident.

CIRCLE

The circle represents the globe, symbolizing the world and all of humanity, as well as youth and the future.

SHAPE

The upper-right corner of the LG logo, intentionally left blank, makes the design distinctly asymmetric—a nod

to LG’s creativity and adaptability to change.

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COLORS

LG Red, the main color, symbolizes friendliness, and is also meant to convey LG’s commitment to delivering

the best. LG Gray represents technology and reliability.

1.1.13 The Face of the Future: The meaning and inspiration behind LG’s logo design.

The letters “L” and “G” in a circle symbolize the world, future, youth, humanity, and technology. Our

philosophy is based on Humanity. Also, it represents LG’s efforts to keep close relationships with our customers

around the world.

The symbol consists of two elements: the LG logo in LG Grey and the stylized image of a human face in the

unique LG Red color. Red, the main color, represents our friendliness, and also gives a strong impression of

LG’s commitment to deliver the best. Therefore, the shape or the color of this symbol must never be changed.

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1.1.16 Vision & Mission of the company

VISION

LG Electronics continues to pursue its 21

St century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative

products and superior service while aiming to rank among the world’s top three electronics, information, and

telecommunications firms by2013.On their way, they hold tight to a philosophy of “Great Company , Great

People,” underscoring their belief that only great people can create a great company. LG strives for greatness in

what we’ve identified as our three core capabilities: Product Leadership, Market Leadership, and People

Leadership—each strength a key part of realizing our growth strategies for “fast innovation” and “fast growth”.

“Global Top 3 by 2013 Global Top 3 Electronic/Telecommunication company”

MISSION

The mission of LG is to provide the customers with utmost with utmost satisfaction through leadership

The fundamental policy of development is to secure product leadership that the customer may have utmost

satisfaction.

1.1.17 Code of conduct of LG

Responsibility and obligations to customers 

Respect for Customers

Creating Value

Providing Value

Fair competition

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Pursuit of Free Competition

Compliance with Laws and Regulations

Fair Transaction

Equal Opportunity

Fair Transaction Procedure

Support and Aid for Business Partners

Basic Ethics for Employees

Basic Ethics

Completion of Duty

Self Development

Fairness in Performance

Avoidance of conflict with company interest

Corporate Responsibilities to employees

Respect for human dignity

Fair Treatment

Promoting Creativity

Responsibilities to society and country

Rational Business Development

Protection of stock holder interest

Contribution to social development

Environmental Conservation

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1.1.18 SWOT Analysis

Strength

1. Wide range of products to serve all categories and a strong focus on technology and quality

2. Effective localization of product offerings for growth markets like India, Brazil, and China

3. Brand offers sound rational appeal – good product features and good value for money

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4. Good after sales service and wide distribution network

5. Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the local market

6. Sponsorship of sports and entertainment events enhances visibility

7. It has nearly 100,000 employees and is one of the top mobile manufacturers.

Weakness

1. Brand lacks influence in the opinionated segment of early adopters especially in the social media environment

2. Brand has limited market share compared to market leaders

Opportunity

1. Fast growth of home appliances, electronics goods market in emerging economies

2. Convert improved brand image and awareness in to market share

3. Increase the already Wide product portfolio.

Threat

1. Price war with close Korean competitors like Samsung can disrupt growth in price sensitive markets

2. Highly competitive industry dynamics

3. Stagnant urban demand

4. Instances of false green claims can erode brand value and consumer trust

1.1.13 Competitors

1. Nokia

2. Samsung

3. Blackberry

4. Apple

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Theoretical design

1.2.1 Meaning of Market potential:-

It is the intensity of possible contacts with markets. If a plant could be located in a number of locations, it is

useful to be able to estimate the probable volume of sales which could be achieved at each possible site. This is

the market potential, which is expressed as the sum of the ratios of the market to distances to each of the points

under consideration. Thus:

where the market potential (Pi) at point i is the summation (∑) of n markets (j), accessible to the point i divided

by their distance (dij) from that point. M is usually a measure of actual retail sales, and transport costs may be

substituted for d.

Once Pi has been calculated for all the possible locations, the site with the highest market potential may be

found, but in practice the prediction of likely sales rarely reflects the true situation.

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Benefits of Market Potential

Understand market potential for a single store, network of stores or a new market

Deploy resources effectively by ranking markets in priority order

Forecast total opportunity in terms of number of customers and revenue potential

Estimate your market share

Market potential analysis

Market potential analysis is a primary analytic service performed by Mapping Analytics. We have the people,

experience, tools, and data required to perform sophisticated and accurate market sizing.

A market potential analysis from Mapping Analytics may include:

A customer profile to understand where to find more like them

Market penetration and market share reports showing performance in existing markets

and expected performance in new markets

Market ranking reports allowing you to prioritize resource deployment into new

markets

A geographic view of market opportunity on detailed maps

1.2.2 Strategic alliance

A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to

meet a critical business need while remaining independent organizations. This form of cooperation lies

between M&A and organic growth.

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Partners may provide the strategic alliance with resources such as products, distribution channels,

manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The

alliance is a cooperation or collaboration which aims for synergy where each partner hopes that the benefits

from the alliance will be greater than those from individual efforts. The alliance often involves technology

transfer (access to knowledge and expertise), specialization, shared expenses and shared risk.

Stages of strategic alliance formulation

A typical strategic alliance formation process involves these steps:

Strategy Development: Strategy development involves studying the alliance’s feasibility, objectives and

rationale, focusing on the major issues and challenges and development of resource strategies for

production, technology, and people. It requires aligning alliance objectives with the overall corporate

strategy.

Partner Assessment: Partner assessment involves analyzing a potential partner’s strengths and weaknesses,

creating strategies for accommodating all partners’ management styles, preparing appropriate partner

selection criteria, understanding a partner’s motives for joining the alliance and addressing resource

capability gaps that may exist for a partner.

Contract Negotiation: Contract negotiations involves determining whether all parties have realistic

objectives, forming high caliber negotiating teams, defining each partner’s contributions and rewards as

well as protect any proprietary information, addressing termination clauses, penalties for poor performance,

and highlighting the degree to which arbitration procedures are clearly stated and understood.

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Alliance Operation: Alliance operations involves addressing senior management’s commitment, finding the

caliber of resources devoted to the alliance, linking of budgets and resources with strategic priorities,

measuring and rewarding alliance performance, and assessing the performance and results of the alliance.

Alliance Termination: Alliance termination involves winding down the alliance, for instance when its

objectives have been met or cannot be met, or when a partner adjusts priorities or re-allocates resources

elsewhere.

The advantages of strategic alliance include:

1. Allowing each partner to concentrate on activities that best match their capabilities.

2. Learning from partners & developing competences that may be more widely exploited elsewhere.

3. Adequate suitability of the resources & competencies of an organization for it to survive.

There are four types of strategic alliances: joint venture, equity strategic alliance, non-equity strategic alliance,

and global strategic alliances.

Joint venture is a strategic alliance in which two or more firms create a legally independent company to

share some of their resources and capabilities to develop a competitive advantage.

Equity strategic alliance is an alliance in which two or more firms own different percentages of the company

they have formed by combining some of their resources and capabilities to create a competitive advantage.

Non-equity strategic alliance is an alliance in which two or more firms develop a contractual-relationship to

share some of their unique resources and capabilities to create a competitive advantage.

Global Strategic Alliances working partnerships between companies (often more than two) across national

boundaries and increasingly across industries, sometimes formed between company and a foreign

government, or among companies and governments.

1.3 Objective of study:-

To know the consumer awareness about LG mobile phones

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To know the market potential of the LG mobile phones

1.4 Scope of Study

The geographical scope of the study is restricted to Delhi only with sample size of 100 people.

All the analysis and suggestions are based on the analysis of the both primary and secondary data.

Therefore the scope of the study revolves around the following aspects:-

Consumer awareness about LG phones .

Factors influencing the choice of customer.

Market potential of LG ph

CHAPTER-2

METHODOLOGY

2.1 Research methodology

Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject

in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology

includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure.

The methodology used in the study consistent of sample survey using both primary & secondary data. The

primary data has been collected with the help of questionnaire as well as personal observation book, magazine;

journals have been referred for secondary data. The questionnaire has been drafted & presented by the

researcher himself.

2.2 Methodology used for Data Collection:

DATA: - Data are values of qualitative or quantitative variables, belonging to a set of items. Data are

typically the results of measurements and can be visualized using graphs or images. Data as an abstract

concept can be viewed as the lowest level of abstraction from which information and then knowledge are

derived.

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DATA COLLECTION:- It refers to collection of information .for a research to succeed raw facts must be

collected in a form which helps in effective production of result and meeting the objective of study.

SOURCES OF DATA COLLECTION:

- PRIMARY DATA:- Primary data is the data which is collected by the researcher directly from his own

observations and experiences. For example, if the researcher conducts a survey for the collected of data

then it is known as primary data.

- SECONDARY DATA:- Secondary data is data that has already been collected and collated by

somebody for some reason other than the current study. It can be used to get a new perspective on the

current study, to supplement or compare the work or to use parts of it, as another study may prove costly

and time consuming e.g. the census.

2.3 Methodology used for Data Analysis:

Sample Size

Sample of 100 people was taken into study, and their data was collected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection:

Collection of data is done by

Secondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.

Data Analysis:

After data collection, I’m able to analyze customer’s views, ideas and opinions related to Auto LG mobile

phones and from this, LG will come to know the customer requirements.

Data Interpretation:

32

Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative

techniques (by using these techniques) accurate information is obtained.

Classification & tabulation of data:

The data thus collected were classified according to the categories, counting sheets & the summary tables were

prepared. The resultant tables were one dimensional, two dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were taken into account while going into

statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are

mainly statistical tools like percentage, ranking, averages, etc.

As per questionnaire and market surveys I have find out different responses from different people. According to

their responses I analyze the findings and draw certain remarks.

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CHAPTER- 3

DATA ANALYSIS & INTERPRETATION

34

Q1. Which of the following mobile phone brands do you own?

LG 5

Nokia 40

Samsung 15

HTC 13

Blackberry 15

Motorola 3

Sony 1

Micromax 2

Lava 1

Apple 3

35

5%

41%

15%

13%

15%

3%1% 2% 1% 3%

LG Nokia Samsung HTC BlackberryMotorola Sony Micromax Lava Apple

Figure:-1

It has been observed that nokia is the most familiar among the people with 40%.. Percentage of people owning

LG mobile phones is very less i.e. 5%.

Q2. If you had to buy a new mobile today, which brand would you prefer?

LG 3

Nokia 45

Samsung 10

HTC 19

Blackberry 15

Motorola 1

Sony 2

Micromax 2

Lava 0

Apple 8

36

3%

43%

10%18%

14%1%

2%2%

8%

LG Nokia Samsung HTC BlackberryMotorola Sony Micromax Lava Apple

Figure:- 2

It has been observed that the people want to purchase nokia instead of any other phone brands with 45%. LG

has neglible amount of demand in the market catering only 3% of future demand.

Q3. What makes you give up using the previous brand?

Out of order easily 18

Other brands more advanced 72

Outlook not attractive 10

37

18%

72%

10%

Out of order easilyOther brands more advancedOutlook not attractive

Figure:-3

It has been observed that 72% of the people give up their previous brand due to other brands being more

attractive. 10% of people give up due to outlook not attractive and 18% due to out of order easily

Q4. What is your current income per annum?

Less than 1 lakh 19

1 lakh- 3 lakh 11

3 lakh – 6 lakh 24

6 lakh- 9 lakh 26

38

More than 9 lakh 20

19%

11%

24%

26%

20%Less than 1 lakh 1 lakh- 3 lakh 3 lakh – 6 lakh 6 lakh- 9 lakh More than 9 lakh

Figure:-4

The income of 24% respondents is between 3 lakh-6lakh. 26% of them are in the 6lakh-9lakh income

bracket.19% have income less than 1 lakh and 11% have income between 1 lakh- 3lakh

Q5. Which of the following LG phones you are aware of?

Name Have seen or heard Have not seen nor heard

LG Optimus 57 43

LG Quad core 21 79

LG L3 26 74

39

LG T375 11 89

LG A290 12 88

LG C660 38 62

LG Optimus LG Quad core LG L3 LG T375 LG a290 LG C660

57

21 2611 12

38

43

79 7489 88

62

Have seen or heard Have not seen nor heard

Figure:- 5

It has been observed that LG optimus and LG C660 is most familiar between the respondents.

Q6. What would you consider most important when choosing a mobile phone?

Functionality 48

Look & feel 8

Applications store 15

Connectivity 7

40

Pricing 2

Battery backup 20

48%

8%15%

7%

2%

20%

Functionality Look & feel Applications storeConnectivity Pricing Battery backup

Figure:- 6

It has been observed that 48% of the respondents consider functionality to be the most important factor while

choosing mobile phones and only 2% consider pricing to be the most important factor.

Q7. What functionality would you mark as most important to have on your phone?

Send/receive calls& sms 58

Camera 3

Mp3 player 2

41

Bluetooth 2

Email application 1

Games 1

Calendar/organizer 5

Google maps 2

Applications store 2

Battery 19

Document reader(PDF,WORD) 5

5% 3% 3%14%

5%

5%

51%

14%

Bluetooth Email application GamesCalendar/organizer Google maps Applications storeBattery Document reader(PDF,WORD)

Figure:-7

It has been observed that 51% of the people consider battery backup to be the most important functionality and

only 3% consider gaming and email application to be important

Q8. Have you seen any advertising for LG phones over the last few weeks?

Yes 28

No 72

42

28%

72%

Yes No

Figure:-8

It has been observed that only 28% of the respondents have seen advertisement of lg mobile phone and 72%

have not seen.

Q9. Which of the following reasons you want to choose LG?

User friendly 28

Competitive price 24

Attractive outlook 38

43

Modern & stylish 10

28%

24%

38%

10%

User friendly Competitive price Attractive outlook Modern & stylish

Figure:-9

It has been observes that 24% of respondents who choose LG make their choice because of its competitive

price. 38% choose because of attractive outlook, 10% choose because of modern & stylish and 28% choose

because they find LG mobile phones user friendly.

Q10. Do you think LG mobile phone have any improvements over the past years?

Yes 88

No 12

44

88%

12%Yes No

Figure:-10

It has been observed that 88% of the respondents believe that there has been an improvement in the LG mobile

phone during past few years whereas 12% believe that there has been no improvements.

CHAPTER-4

CONCLUSIONS

4.1 Results of study

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It has been observed that nokia is the market leader with 40% of respondents presently

owning it and 45% of them want to purchase it.

LG mobile phone is owned by only 5% of the respondents and only 3% are willing to

purchase in future

Due to development of new technology every day 72% of the respondents believe they would

give up their existing brands due to other brands being more attractive.

LG optimus and LG C660 have been most likely seen or observed mobile phones by the

respondents.

Functionality is considered the most important while choosing a mobile with 48% of the

respondents responding to that option.

The most important functionality is the battery backup of the mobile phone

72% of the respondents have not seen any advertisement of LG phones during past few

weeks.

38% of the respondents would choose LG mobile phones for its attractive outlook.

88% of the respondents believe that there has been improvements in the LG mobile phones

during past 2-3 years.

4.2 Limitations of the study

Time was the major limiting factor. Time allotted to conduct the survey was not enough.

Due to time constraint and other supporting factors the study has been limited.

Method of data collection was through personal and therefore bias becomes a major limitation.

The sample size is 100, therefore may not be precise.

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4.3 Suggestions and recommendations

LG is pursuing the vision of becoming a true global digital leader to achieve this, they need to

improve the quality of its products.

LG should focus on formulation of strategies like advertisements and sales promotion measures can

be an effective tool to cut down competitor.

Benchmarking with the leader and following its way of approach towards the customer can be an

effective way to improve the company’s current position in the market.

The customers are not satisfied by the after sales service provided by the company due to delay in

the after sales services provided by the company.

LG should focus on introduction of more number of mobile phone models in all catergories.

4.4 Conclusions

In the market of mobile phone there has been a drastic change in the past two years. The company should

take advantage in improving their current position in this time. While considering LG mobile phones there

has always been a formidable growth while comparing with its competitors. Mobile technology is on the run

for money in the future. Further enhancements in the technology, marketing, logistics can flush in huge

number of sales and thus improving in profits.

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