Lg project new

CONSUMER AWARNSESS 1

TRAINING REPORT

ON

CONSUMER AWARNESS AT LG ELECTRONICS.

A project report submitted in partial fulfillment of the requirements

For the award of the degree

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

M. S. RAMAIAH MANAGEMENT INSTITUTE

BY

“RAJAT BARANWAL”

REG. NO. 122135

UNDER THE GUIDANCE OF

“Prof. MEGHNA VERMA”

M.S. RAMAIAH MANAGEMENT INSTITUE

NEW BEL ROAD, BANGALORE – 560054


DECLARATION

I hereby declare that this project report conducted at “CONSUMER

AWARNESS” at the “LG ELECTRONICS.”

Under the guidance of “Prof. Meghna Verma ”.

Submitted in partially fulfillments of the requirements for the Degree of POST

GRADUATE DIPLOMA IN MANAGEMENT

TO


In my original work and the same has not been submitted for the award of any

other Degree/Diploma/Fellowship or other similar titles or prizes.

Place: Bangalore Rajat Baranwal

Date: Reg. No. 122135


CERTIFICATE

This is to certify that the Project Report at “LG ELETRONICS” Submitted in

partial fulfillment of the requirement for the award of degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

To


Is a record of bonafide Training carried out by “RAJAT BARANWAL” under my

supervision and guidance and that no part of this report has been submitted for the

award of any other Degree/Diploma/Fellowship or similar other titles or prizes.

FACULTY GUDIE:

Signature:

Name: Prof. Meghna Verma

Qualification: M.B.A. , M.Sc.


ACKNOWLEDGEMENET

I extend my special gratitude to our beloved Dean “ Dr. H.Muralidharan”

Academic Head “Dr. V. NARAYAN” and Program Head “Dr. PADMAJA

VANKA” for inspiring me to take up this is project.

I wish to acknowledge my sincere gratitude and indebtedness to my project guide

“Prof. Meghna Verma” of M.S. RAMAIAH MANAGEMENT INSTITUTE,

Bangalore for her valuable guidance and constructive suggestions in the

preparation of project report.

Rajat Baranwal


CONTENT

S. No. Particular Page No.


1 Execute Summary 8-9

2 Chapter -1 Industry Analysis

2.1 About Electronics 11

2.2 About Electronics Industry 12

2.3 History of Electronics Industry 13

2.4 The Indian Electronics Industry 14-16

3 Chapter – 2 Company Analysis

3.1 History Of Company 19

3.2 The Global Operation 20-22

3.3 Objective, Mission, Vision 23

3.4 Brand Identity 24

3.5 Brand Platform 25-28

3.6 Partnership 29

3.7 The Internal Culture of LG 32

3.8 Quality Innovation 34

3.9 Marketing Strategy 35

3.1 Distribution , Price Strategy 36

3.11 Promotion 37

3.12 Product Range 39-53

3.13 LG Ethics 54-59

3.14 Competitor 60

3.15 Swot Analysis 31-32

4 Chapter - 3 Discussion on Training

4.1 Objective of my Job 65

4.2 Role & Responsibility 66

4.3 Description of Live Experience 67

5 Chapter -4 Analysis of Task

5.1 Statement of the Problem, 69

5.2 Objective 69

5.3 Scope 69

5.4 Methodology 70-71

5.5 Data Collection Method 72

5.6 Sampling 73

5.7 Sample Size 73

5.8 Sample Type 73

5.9 Limitation of Study 74

5.1 Data Analysis 75-82

5.11 Consumer Survey Finding 83

5.12 Recommendation and Suggestion 84

5.13 Limitation 85

Bibliography 86

Annexure 87-89


EXCUTIVE SUMMARY


Indian Consumer durables market used to be dominated by few domestic players

like Godrej, Voltas Allwyn and Kelvinater. But post liberalization much foreign

company have entered into Indian market dethroning the Indian player and

dominating Indian market the major categories in the market CTV,

REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE

India being the second largest growing economy with huge consumer class

has resulted in consumer durables as the fastest growing industries in India LG,

SAMSUNG the two Korean companies has been maintaining the lead in the

industries with LG being leader in almost all the categories.

The rural market is growing faster than the urban market, although the penetration

level is much lower .The CTV segment is expected to the largest contributing

segment to the overall growth the industry. The rising income levels double-

income families and consumer awareness are the main growth drivers of the

industries.

Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest

nearly Rs 500 Cr in India this year in research and development, brand-building

and other marketing initiatives.

The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is

investing Rs 360 Cr on brand-building and other marketing initiatives and around

Rs 140 Cr on research and development, besides launching new platforms in

information technology and related areas.

LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be

expanded from the existing 22 to 40 cities by next month,


The campaign, for which IT infrastructure has been set up, includes the company’s

response to customer complaint within two hours. The fixing time for complaints

varies from one hour to a maximum of 24 hours.


INDUSTRY ANALYSIS


About Electronics

Electronics deals with electrical circuits that involve active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies. The nonlinear behavior of active components and their ability to control electron flows makes amplification of weak signals possible and electronics is widely used in information processing, telecommunications, and signal processing.

The ability of electronic devices to act as switches makes digital information processing possible. Interconnection technologies such as circuit boards, electronics packaging technology, and other varied forms of communication infrastructure complete circuit functionality and transform the mixed components into a regular working system.

Electronics is distinct from electrical and electro-mechanical science and technology, which deals with the generation, distribution, switching, storage, and conversion of electrical energy to and from other energy forms using wires, motors, generators, batteries, switches, relays, transformers, resistors, and other passive components.

This distinction started around 1906 with the invention by Lee De Forest of the triode, which made electrical amplification of weak radio signals and audio signals possible with a non-mechanical device. Until 1950 this field was called "radio technology" because its principal application was the design and theory of radio transmitters, receivers, and vacuum tubes.

Today, most electronic devices use semiconductor components to perform electron control. The study of semiconductor devices and related technology is considered a branch of solid state physics, whereas the design and construction of electronic circuits to solve practical problems come under electronics engineering. This article focuses on engineering aspects of electronics.


ABOUT ELECTRONICS INDUSTRY

The electronics industry, especially meaning consumer electronics emerged in the 20th century and has now become a global industry worth billions of dollars. Contemporary society uses all manner of electronic devices built in automated or semi-automated factories operated by the industry.The size of the industry and the use of toxic materials, as well as the difficulty of recycling has led to a series of problems with electronic waste. International regulation and environmental legislation has been developed in an attempt to address the issues.The electronics industry scope cannot be restricted to mass-market products that are produced in millions and even billions of pieces a year (mobile phones, TVs, PCs, etc.). Mass-market products ‘only’ represented 53% of the electronics industry in 2008.

The electronics scope also encompasses embedded electronics in transport (cars, planes, trains, etc.), in defence equipment, in IT infrastructures as well as electronics used in manufacturing process or professional services in order to boost productivity. In other words, professional electronic equipment.

Contrary to mass-market products, professional electronic equipment is characterized by lower quantities from single units to hundreds of thousands units. They do not address individual clients but private companies or organizations such as governments.

Obviously in order to compete in these respective domains, players need to comply with rather different industrial paradigms. The structure of the electronics equipment industry is reflecting this dichotomy.


HISTORY Of ELECTRONIC INDUSTRY

The generation of electricity began in the 19th century and this led to the development of all manner of inventions. Gramophone’s were an early invention and this was followed by radio transmitters and receivers and televisions. The first digital computers were built in the 1940s with a slow development in technology and total sales. In the 1990s the personal 0computer became popular. A large part of the electronics industry is now involved with digital technology.The industry now employs large numbers of electronics engineers and electronics technicians to design, develop, test, manufacture, install, and repair electrical and electronic equipment such as communication equipment, medical monitoring devices, navigational equipment, and computers.Consumer electronics is that which is intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver. Later products include personal computers, telephones, MP3 players, audio equipment, televisions, calculators, GPS automotive electronics, digital cameras and players and recorders using video media such as DVDs, VCRs or camcorders. Increasingly these products have become based on digital technologies, and have largely merged with the computer industry in what is increasingly referred to as the consumerization of information technology.The CEA (Consumer Electronics Association) estimated the value of 2007 consumer electronics sales at US$150 billion.


THE INDIAN ELECTRONICS INDUSTRY

India has been home to all the major EMS companies including Flextronics, Foxconn, Elcoteq, Jabil Circuits, and Sanmina, etc. There are also numerous home-grown EMS companies catering to multiple but niche application segments. Some pertinent growth drivers for India’s EMS industry include

Strong and growing domestic demand for mobile phones, medical, consumer, aerospace and automotive electronics.

Increasing demand for telecom infrastructure equipment Highly talented workforce, especially for design and engineering services

with good communication skills. Inflation and rising costs of doing business in China. Presence of global EMS majors and their plans for increased investments in

India. More outsourcing of manufacturing by both Indian and global OEMs that

are increasingly focusing on R&D and other core competencies.

Key factors responsible for the evolution and growth of the EMS industry in India are:

1. Low Cost Attraction – Globally India has and is gaining recognition as one of the best low cost destinations for manufacturing. In recent years, with costs rising in neighboring China, India has been able to further its recognition on the cost front. The hourly compensation for Indian workers employed in an electronics manufacturing factory stands below $0.5 even now. In comparison, the hourly compensation for a US worker is between $20 and $22. Even Mexico, one of the early proponents of the EMS industry, pales in comparison to India at $3 per hour.

2. Special Economic Zones (SEZ) – India was the first Asian economy to set up an export processing zone (called SEZ in later years) way back in 1965. The 10th and 11th Five Year Plans are incentivizing the creation of more of electronics hardware SEZs in the country.


3. Local Consumption Volumes – Being the world’s second most populated country and one with a growing economy, India has been and continues to remain one of the largest consumers of electronics products. The high domestic consumption volumes make it an attractive destination for electronics manufacturing services. Over 60 percent of India’s population is in the age band of 15-40 years; this along with the rising levels of disposable income is creating a huge consumption market in the country.

Electronics Consumption

The past decade has been remarkable for the Indian electronics industry from a consumption perspective: 18 million mobile phones in 2003 to 172 million units in 2010; shipment of 3 million PCs in 2003 to over 8.2 million in 2010; from a non-existent market in 2003 to a rapidly growing LCD TV market that witnessed sales of 3.5 million units in 2010. The tremendous growth in all segments of electronics has given the industry a key position on the global map. The Indian electronics industry has been growing at a CAGR of over 25 percent in the past 5 years and the major reasons that can be attributed to this growth are:

GDP growth rates in excess of 8 and 9 percent. Revival of the global economy following the 2000-01 dotcom bubble burst. A rapidly expanding middle class with increasing disposable income. Continual decline in prices of most the electronics goods(a camera mobile

that cost over Rs.15,000 five years ago is available for < Rs. 5,000 today). Presence, expansion and/or entry of all major Electronic OEMs and

suppliers into the country creating greater visibility for brands and products. Steady increase in exports. Exemption of custom duty on 217 products that come under the ITA-1

items.


The Indian electronics industry was estimated to be $65.1 billion in 2010 growing at over 27 percent from 2009. Chart 5.1.2.a below presents the contribution of different segments to the Indian electronics industry in 2010.


COMPANY ANALYSIS


TODAY Consumer durables sector is characterized by the emergence of MNCs,

exchange offers, discounts, and intense competition. The market share of MNCs in

consumer durables sector is 65%. MNC's major target is the growing middle class

of India. MNCs offer superior technology to the

LG, SAMSUNG the two Korean companies has been maintaining the lead in

the industries with LG being leader in almost all the categories.

The company, having a turnover of Rs 9,500 crore and market share of 26 per cent,

is investing Rs 360 crore on brand-building and other marketing initiatives and

around Rs 140 crore on research and development, besides launching new

platforms in information technology and related areas.

LG Electronics is one of the leading companies in the field of electronics with a

global presence in many countries. .


History of company

The company was originally established in 1958 as Gold Star, producing radios,

TVs, refrigerators, washing machines, and air conditioners.

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

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

backronym. Before the corporate Name change to LG, household products were

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

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

brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics

of the United States.

http://en.wikipedia.org/wiki/Zenith_Electronics

http://en.wikipedia.org/wiki/Electronic_products

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Name_change

http://en.wikipedia.org/wiki/Backronym


Global Operation

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

1. LG.Philips LCD

2. LG Chemical

3. LG Telecom

4. LG Powercom

5. LG Twins

6. LG Dacom

Business areas and main products

Mobile communications

(a)CDMA Handsets,

(b)GSM Handsets,

(c) 3G Handsets,

(d)Cellular Phones

http://en.wikipedia.org/wiki/LG_Dacom

http://en.wikipedia.org/wiki/LG_Twins

http://en.wikipedia.org/wiki/LG_Powercom

http://en.wikipedia.org/wiki/LG_Telecom

http://en.wikipedia.org/wiki/LG_Chemical

http://en.wikipedia.org/wiki/LG.Philips_LCD

http://en.wikipedia.org/wiki/LG_Group


Digital appliance

a) Air Conditioners,

b) Refrigerators,

c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) Home Net,

g) Compressors for Air Conditioners and Refrigerators

Digital display

a) Plasma TVs,

b) LCD TVs,

c) Micro Display Panel TVs,

d) Monitors,

e) PDP Modules,

f) OLED Panels,

g) USB Memory,

h) Flat Panel Computer Monitors

http://en.wikipedia.org/wiki/Computer_Monitors

http://en.wikipedia.org/wiki/Liquid_crystal_display_television

http://en.wikipedia.org/wiki/Plasma_display

http://en.wikipedia.org/wiki/Compressors

http://en.wikipedia.org/wiki/Vacuum_cleaner

http://en.wikipedia.org/wiki/Washing_machine

http://en.wikipedia.org/wiki/Microwave_oven

http://en.wikipedia.org/wiki/Refrigerator

http://en.wikipedia.org/wiki/Air_conditioning


Digital media

a) Home Theater Systems,

b) DVD Recordes,

c) Super Multi DVD Rewriters,

d) CD±RW,

e) Notebook PCs,

f) Desktop PCs,

g) PDAs,

h) PDA Phones,

i) MP3 Players,

j) New Karaoke Systems,

k) Car Infotainment

http://en.wikipedia.org/wiki/DVD_recorder

http://en.wikipedia.org/wiki/Home_cinema


Company Vision :- LG Electronics continues to pursue its 21st 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 by 2010.On our way, we hold tight to a philosophy of “Great Company, Great People,” underscoring our 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”.

Company Mission :- LGE's mission statement explains that its goal is to become a top innovative electronics company in the world. It takes pride in its company and employees and believes that this is what will make it into one of the most innovative companies of the 21st century.

Company Objective :- The objectives of the Company are as follows:

1. To manufacture and sell electronic machinery and appliances;

2. To manufacture and sell communications machinery and appliances;

3. To manufacture and sell electric machinery and appliances;

4. To manufacture and sell other machinery and appliances;

5. To manufacture, process and sell plastics;

6. To manufacture, sell, lease and franchise multimedia hardware and software;

7. To manufacture and sell wires and cables for electric powers and communications;


BRAND IDENTITY

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 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.We have two versions of our logo: Corporate Logo and 3D Logo.The updated 3D Logo retains the heritage and equity of the Corporate Logo, while aligning with our new positioning. It was redrawn to strengthen the visual impact of our symbol mark and help communicate our attributes.


The Brand Platform:-

The LG brand is composed of four basic elements –

1. Value

2. Promise

3. Benefits

4. Personality

The Brands core Value that never changes.

a. Trust,

b. Innovation,

c. People

d. Passion

The benefits that are consistently delivered to the customer includes

a. Reliable products

b. Simple design

c. Ease of use

d. Extraordinary Experience

Personality describes the human characteristic that are expressed to the customer

through

a. Trustworthy, Considerate

b. Practical, Friendly


CORPORATE LOGO

3D LOGO

SLOGAN

"Life's Good"

http://www.lg.com/in/download/about-lg/LG_2D_LOGO.zip

http://www.lg.com/in/download/about-lg/LG_3D_LOGO.zip


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

smart products that will make your life good.

The LG Electronics Life's Good signature consists of the LG logo, seal,

and the slogan, "Life's Good" set in Charlotte sans typeface curved

around the LG symbol. The curving of the slogan reinforces LG's

personality and uniqueness. The consistent usage of this signature clearly

establishes the unique identity of the company and unifies every division

and product from LG Electronics across the globe.


THE SYMBOL The symbol of LG is the face of future. The letter “L” and “G” in a circle

symbolizes world, future, youth, humanity & technology.LG philosophy is based

on humanity. It also represents LG’s efforts to keep close relationship with our

customers around the world.

The symbol consists of two elements.

1. The logo in LG gray

2. The stylized image of human face in the unique LG red color.

Red color represents our friendliness and gives a strong impression of LG’s

commitment to deliver the best.

The circle symbolizes The Globe. The stylized image of a smiling face in the

symbol conveys “Friendliness and Approachability”. The one eye on the symbol

represents “Goal-oriented, Focused & Confident”.

The slogan of LG is “Life’s Good”. It expresses “ Brand’s Value, Promises,

Benefits , Personality.

THE PARTNERSHIP


LG Electronics chooses to promote harmony and build constructively on a labor-

management relationship rather than an employee-employer relationship. This

illustrates that management and workers are not in a vertical relationship, but in a

horizontal one.

This culture is necessary for LG Electronics as it strives to become one of the

world's top companies. Such a relationship is transformed into a value-creation

relationship whereby both parties endeavor to address mutual problems and create

new values together.

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 is striving to become number one in the world by mingling

in various business and technological fields and making strategic alliances with

world famous companies. "Strategic association between corporations," in which

companies with different infrastructures cooperate in the fast-developing 21st

century business field, is of key significance in terms of strengthening the existing

industry and creating a new one.


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

4. PHILLIPS

5. TOYOTA

6. MICROSOFT

7. HP

8. GOOGLE

9. GE

10.INTEL

11.NORTEL

12.HITACHI

13.PRADA

14.RENESAS

15.TOSHIBA

16.BESTBUY


And the number follows many more…………………………..

In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile

services will be available from LG mobile. This service is targeting 10 million LG

mobile phones in over 70 countries.

In Mar. 2007 LG Electronics and Google formed a strategic alliance.

Both companies will work together to release, market, and offer LG mobile phones

with Google services (search engine, map, email, and blogs.)


The Internal Culture of LG:

LG practices four cultures

1. Learning Culture

2. Boundary less Environment

3. A Carrier

4. Growth

According to LG, the Learning Culture continuously helps the employee to learn

more and more to develop the habit of continuous learning.

Boundary less Environment means that there is no difference between the levels

of employees. There is transparency between the work and mutual understanding

between all the employees.

A carrier is highly growing in LG and one who is the employee can develop their

carrier largely. A new comer will feel fully comfortable in the company and for a

new comer the company is very helpful in the overall growth of personality.

Growth in LG is very high for those who are in the company and for those who

want to join in LG. The company is growing with fast innovation and the BLUE

Ocean strategy is one of the examples of growth.


Product Leadership

We are focusing on six development areas to become the product leader.

1. New Machine

2. Reliability

3. Conventional Installation

4. Environment Friendly Product

5. Low Noise & Vibration

6. Energy Saving


QUALITY INNOVATION

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

supplying zero defects.

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

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed

through fair management practices and constantly developing our business skill.

A) Honest with our customer

b) Providing great values to customer through constant innovation & and

development.

c) Equal opportunities

d) Equal Treatment

Management Principle - Creating value for customer


MARKETING STRATEGY

Here is the detail of marketing mix of LG including its product, distribution, pricing and promotional strategy.

LG PRODUCT LINE:- Since its initial years in India. LG has focused on bringing out new models regularly in its product range. In its 1st year of operation in India, LG launched 70 models across a range of products. In 1997,it introduce its Golden Eye Technology TV, which had a light sensitive natural algorithm “eye” .

The “eye” respondent to the changes in lighting in the room accordingly and adjusted color sharpness, brightness, contrasts, tint & balance them automatically.

Thus, LG showed that it cared for customers ‘health through its product.

LG concern for health of customers was its unique selling proposition (USP) in the Indian Consumer durables market.

Similarly, LG positioned its refrigerators as the ‘preserve nutrition system’ refrigerators. In 1998, the company launched air condition as Health Air ACs….


DISTRIBUTIONIn its initial years in India, LG realized that it was important to have a good distribution network to reach far-flung towns and the semi-urban markets. To increase brand awareness among consumer, LG sent vans across India covering 5000 km every month. The company focused on building a strong dealer network.

In the late 1990s, when the trend was to give a credit period of 45 to 90 days to dealers, LG did not offer any such schemes to attract dealers.

It instead asked them to pay in advance for its products. This ensured that the dealer pushed the brand in the market to keep their own cash from being blocked.

At the retail and trade level, as the volumes grew faster, LG pushed its dealer towards selling product at lower margins and focusing on quick rotation of stocks.

PRICING STRATEGYWhen LG started its operation in 1997, it sold product that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese ) products. Industry analysts felt that this strategy was adopted To make local consumer feel that LG products were by no means inferior to japaness products in performance or quality .

However , in 1998, LG launched sampoorna its first low priced TV for rural consumers and fallowed it with CINEPLUS according to kim as the indian customer wanted the best products at reasonable prices , LG started introducing quality products in economy range

In the first few years its entry ,LG did not get into price wars . unlike other players ,it did not offer any exchange schemes or discounts .LG officials said that they believed in a ‘HONEST PRICING POLICY” and its message to customers to read ‘NO SCHEME,NO GIMMICK,GREAT PRODUCTS and HONEST PRICE ‘…..


PROMOTIONLG gave immense importance to its promotion and advertising activities . in 2004, the company spent nearly RS. 1.3 billion (5% of its revenue ) towards advertising . analyst commented that LG’s promotion and advertising of its durable segment were similar to that of an FMCG company . unlike many indian brands which advertised seasonally (2-3months during festivals i.e. September, October and November) LG advertised all round the year .


Product Range:


TELEVISION

LG 84" Class Ultra High Definition 3D TV with Smart TV (83.9" diagonally)


LG 3D TV

LG LEDTV

LG LCD TV


LG SMART TV


REFRIGERATOR

DOUBLE DOOR FREEZ SINGLE DOOR FREEZE


ULTRA LARGE CAPACITY DOOR IN DOOR FREEZE


WASHING MACHI

ALL IN ONE WASHER

SEPRATE WASHER


AIR CONDITIONAR

WINDOW A.C

SPLIT A.C.

HOME THEATER


MUSIC SYSTEM


DVD


BLU-RAY


LG ETHICSLG, share and believe in two key corporate principles - "Creating value forcustomers" and "Respecting human dignity." Based on these principles and in thespirit of our Management Charter, we strive to promote self-governing managementAnd its accompanying responsibilities. It is our intention to uphold the principle offree market economy, which embodies the spirit of fair competition. We arecommitted to attaining our goal of becoming a global leader, and as such we willcontinuously pursue mutual benefits for our stakeholders on the basis of trust andcooperation. LG is committed to act uprightly and make value judgments inaccordance to the code of ethics.

Responsibilities and Obligations to CustomersWe highly regard the opinions of our customers in the belief that they form the very basics of our business. We seek to secure unconditional trust from our customers by continuously providing them practical values.

1. Respect for Customers We value the opinions of our customers and validate their real needs at all times.Therefore we regard our customers as the primary standard for our decisions andconducts.

2. Creating ValueWe work to create value for our customers for it is through customer satisfactionthat we build the foundation of our prosperity. We continuously create practicalvalues that fully benefit and satisfy our customers.

3. Providing ValueWe are always truthful to our customers, and are bound to keep our promises. Weoffer top quality products and services to our customers at reasonable prices andrespond to their requests with speed and accuracy.


Fair Competition

Our global business activities conform to relevant laws and regulations of the hostnations. At the same time, we employ only fair and just means in securing ourcompetitive advantage in the global market.

1. Pursuit of Free CompetitionWe uphold the principle of the free market economic system. Therefore we pursuefree competition and earn our customers' trust through top quality products andservices. We compete fairly and capably with our competitors, but do not intrudeupon their interests, or exploit their weaknesses.

2. Compliance with Laws and RegulationsWe conduct our domestic and overseas business activities in strict accordance withlocal laws and regulations, and with respect for local business customs.


Fair Transactions

All business transactions will occur based on the principles of fair competition with equal opportunities for all entities to participate. We build trust and cooperative relationships through fair and transparent transactions. Such relationships are built with a long-term perspective for mutual growth.

1. Equal OpportunityWe offer equal opportunities to all qualified companies seeking to become ourbusiness partners. All applicants are registered and selected in a rational manner following a fair and objective evaluation process.

2. Fair Transaction ProceduresAll business transactions are conducted under equitable circumstances. The termsand procedures of the transaction are to be sufficiently discussed between partiesinvolved. The use of prominence in position to execute an unjust transaction isforbidden. Information required for transaction is exchanged through appropriateprocedures in timely manner. Transaction results are evaluated on a regular basiswhere complementary measures are mutually taken.

3. Support and Aid for Business PartnersWe support the long-term growth of our dealers and vendors by enhancing theircompetitiveness through technological and managerial assistance. We share theprofits derived from business innovations. We pursue cooperation with our dealers and vendors in a mutual effort to promote a healthy trading environment and maintain a fair trading system.


Basic Ethics for Employees

Based on honesty and fairness, LG employees establish a correct values and fulfillthe duties through continuous self-development and fairness in performance.

1. Basic EthicsLG employees take pride in their company and always maintain an honest and fairattitude. LG employees keep a high standard of morality and continuously strive tomaintain their personal dignity and company's honor.

2. Completion of DutyLG employees faithfully accomplish their duties in compliance to the visions andpolicies of the company. Assigned duties are carried out in the best possible and fairest manner while observing relevant laws and regulations. LG employees protect and preserve company property and do not divulge confidential information gained during employment. LG employees exert themselves in enhancing work efficiency through open communication and cooperation with colleagues and related departments.

3. Self DevelopmentLG employees formulate their respective ideal image of an exemplary employee and constantly strive to conform to the image through continuous self development.

4. Fairness in PerformanceLG employees carry out their duties based on honesty and fairness, seeking tofoster a sound business culture. While performing their duties, LG employees do not accept any form of financial benefit from interested parties that may obstruct fair judgment. LG employees do not participate in any immoral and unethical behaviors as prescribed by social norms in performing their duties to the company or in their personal lives.

5. Avoidance of Conflict with Company InterestsLG employees avoid any individual behaviors or relationships that are in conflictwith company interests. LG employees do not use company property to pursue their personal interests without prior permission.


Corporate Responsibilities to EmployeesLG endeavors to respect the human dignity of its employees and provides fairtreatment based on their abilities and performances. LG also strives to fostercreativity among its employees.

1. Respect for Human DignityLG treats each employee with trust and affection and places a high value onindividual human dignity. LG takes great efforts to help employees attain pride and personal fulfillment by instilling a sense of ownership in their jobs.LG establishes fair regulations and educational guidelines necessary for employeesto perform their duties.

2. Fair TreatmentLG offers equal opportunities to all its employees based on their abilities and talents. LG applies fair measures to evaluate abilities and performances of its employees and rewards them accordingly.

3. Promoting CreativityLG makes utmost efforts to promote a working environment conducive to creativethinking and autonomous behaviors. LG develops and manages its human resources on a long-term basis and gives active support to cultivating employees’ abilities. LG creates a mature organizational culture that highlights mutual trust,understanding and respect for personal lifestyle.


Responsibilities to Society and the CountryLG contributes to national welfare and social development through rational business expansion providing stable growth as a corporation and protecting stockholder’s interests.

1. Rational Business DevelopmentLG conducts its business with respect to the social values at home and abroad. LGpromotes its business expansions based on stable corporate growth.

2. Protection of Stockholder InterestLG protects its stockholders' interests by earning healthy profits through effectivemanagement.

3. Contribution to Social DevelopmentLG contributes to national and social development through job creation, taxpayment, and promotion of cultural and welfare programs.

4. Environmental ConservationLG strives to prevent environmental pollution and employs all measures necessary.


COMPETITORSThe company which compete to LG electronics which is also as a MNC level as well as National As Regional level.

The name areas follow:-

MNC LEVEL

SAMSUNG TCL HAIER PHILIPS PANASONIC SANSUI WHIRLPOOL AKAI HITACHI

NATIONAL LEVEL ONIDA VIDEOCON BPL VOLTAS

REGIONAL LEVEL BUSH SALORA WESTON BELTAK OSCAR

SWOT ANALYSIS


Strengths:- LG is a multinational company and a recognized brand around the world. It

has successful established not only in developed countries but also in developing countries.

LG products are reliable, easy to use, and have simple designs which satisfy customers that's why LG have the advantage of having loyal customers.

In LG Corporation the research and development has given greater importance because to satisfy the customers and provide the customers what they want the research and development id required.

LG try to keep products innovative to attract the customers and to capture more market share.

LG is at its growing stage and its growing quickly. It is producing solid products which rapidly satisfying the customers.

Weaknesses:-

The big weakness of LG is that it has very few competent employees mostly are not skilled and also there is no training and development concern for employees.

Opportunities:-


The electronic market is expanding rapidly which is a great opportunity for LG to expand itself in new market and to capture more market share. It also can expand its target market geographically and socially both by introducing new products in existing market and existing products in new markets.

Through the innovation in existing products it can attract more customers because at present it is behind the market leadership so to become a leader it has to make innovations to attract potential buyers and retain existing customers.

Threats:-

As the competitors of LG are more dominant in the market and continuously improving their products so they can take away the existing customers of LG, so it has to work very hard to retain and attract customers.

The condition of economy all around the world is not good and it is affecting the purchasing power and priorities of the customers, people are facing difficulties in satisfying basic and needs so how they can spend on electronics which is considered as luxury items. This situation can affect the sales of the company.


DISCUSSION ON

TRAINING

Awareness is the state or ability to perceive, to feel, or to be conscious of

events, objects, or sensory patterns. In this level of consciousness, sense data

can be confirmed by an observer without necessarily


implying understanding. More broadly, it is the state or quality of being

aware of something.

Awareness is not your thoughts or feelings or your mind. You would not

experience those without awareness. You can have awareness without

thoughts, feelings or mind but you can't have thoughts, feelings or mind

without awareness.

Consumer awareness is the understanding and knowledge that a buyer

should have of his rights as a customer. The awareness is very important for

the buyer since it permits him to get the most from what he buys.

Consumer awareness is making consumers aware of their rights to be safe, to

have choices, to have access to product information and to be heard when

they have something to say.

OBJECTIVES OF MY JOB:


The paramount motive of this on job training is the application of all the theoretical concepts learnt so far in courseware of PGDM.

To acquire the corporate exposure and to learn the corporate culture

To acquire the marketing knowledge.

To develop my skill and familiar with organization

RESPONSIBILITES


In the during on training my responsibility are as follow.

To interact the customer:- Main things of my project is to interact the

customer and find out those customer is aware are not about LG company.

To find out the customer problem which is faced on the particular product?

To increase company Goodwill :- The most important things of any survey

is to increase the company goodwill in the particular market.

To promote the company product :- My responsibility is to promote the LG

company product to the different customers.

ROLES

During the project report my role are as follow.

Collect the data for the customers.

Find out the awareness of this particular brand.

DESCRIPTION OF LIVE EXPERIENCE:


Doing a project for about 6 week was a great achievement for me. Every day came

to me with a new learning and experience. I realized that gaining knowledge from

books regarding marketing and handling the critical situations in the field is

entirely different. One has to implement his on skills along with the book

knowledge as soon as he enters in the market. I had lot of good, bad and new

experience in the marketing training in LG Electronics.


ANALYSIS OF TASK

Statement of the problemWith regard to the increasing competition and the growth of companies in the electronics

industry, consumer awareness and his perception about the company are the main concerns for

the organization. In this view, to organization come to a conclusion and to take a right decision,


right time in right place. Therefore the study is conducted to analyze the consumer awareness of

the LG Electronics.

OBJECTIVE

To find out the awareness level of LG product’s among the customer.

To find the key factor for denial & acceptance of LG products.

To find the which product of LG is most popular among consumer.

To find the satisfaction level of person who are already using LG brand.

SCOPE

This study was conduct to find out the awareness of LG products and consumer

behavior for particular brand. So we can say that the scope of this study is very

wide.

Methdology


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

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

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

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

conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic

behind the methods used in the context of a research study and it explains why a

particular method has been used in the preference of the other methods

Research design:

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers. In fact, it is

the key to the evolution of successful marketing strategies and programmers. It is

an important tool to study buyer’s behavior, consumption pattern, brand loyalty,

and focus market changes. A research design specifies the methods and procedures

for conducting a particular study. According to Kerlinger, “Research Design is a

plan, conceptual structure, and strategy of investigation conceived as to obtain

answers to research questions and to control variance.

Types of research are:

Descriptive Research


The type of research adopted for study is descriptive. Descriptive studies are

undertaken in many circumstances when the researches is interested to know the

characteristic of certain group such as age, sex, education level, occupation or

income. A descriptive study may be necessary in cases when a researcher is

interested in knowing the proportion of people in a given population who have in

particular manner, making projections of a certain thing, or determining the

relationship between two or more variables. The objective of such study is to

answer the “who, what, when, where and how” of the subject under investigation.

There is a general feeling that descriptive studies are factual and very simple. This

is not necessarily true. Descriptive study can be complex, demanding a high degree

of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in

its approach, but a descriptive study in contrast tends to be rigid and its approach

cannot be changed every now and then. It is therefore necessary, the researcher

give sufficient thought to framing research.

Data collection methods:


After the research problem, we have to identify and select which type of data is to

research. At this stage; we have to organize a field survey to collect the data. One

of the important tools for conducting market research is the availability of

necessary and useful data.

Primary data : we collect primary data are as follow.

1. Questionnaires

2. Survey

Secondary Data :- We collect secondary data are as follow.

1. Company’s profile

2. journals

3. Internet

4. Magazines

5. Newspaper

SAMPLING


“Stratified random sampling” was done for each of the specified category

mentioned above, so as to ensure that the sampling represent all section of users as

well as non-users.

SAMPLE SIZE

Sample size was taken to be 500.

SAMPLE TYPE

There are 5 types of sample which are as follow.

Quota Sample

Stratified Sample

Purposive Sample

Random Sample

Convenience Sample

In this project I am choosing Random sample. Because it is the easiest way to

done my project report.

LIMITATION OF THE STUDY


Lack of interest and enthusiastic response may have allowed biases in the report.

Test of sampling error could not be done due to the absence of data regarding the

total population size. Correctness of this report is restricted and limited by the

degree of authenticity of data collected and sincerity and honesty of respondent.


DATA ANALYSIS

1- Are you know about LG company.

500

yes No

Inference

Acc. to survey am find out that all person is know about LG company.

2- How do you know about LG company.

Yes 500No 0


Advertise Friends Relative Other300 50 100 50

Advertise Friends Relative Other0

50

100

150

200

250

300

350

Series 1

Inference

Acc. to survey this result is come out that Max. person is know about LG company

through Advertise but Company needs to more advertise for our product.

3-Are you used LG product.


Yes No400 100

400

100

YesNo

Inference

Acc. to survey this result is come out that Max. people is used LG product.


4-Which type of product you used.

T.V. FREEZE WASHING MACHINE OTHER250 150 80 20

T.V. Freeze Wasing Machine

Other0

50

100

150

200

250

200

100

80

20

Series 1

Inference

Acc. to survey LG TV demand is very good.

Company want to more advertise about his product which demand is less.


5-Are you satisfied for that product.

YES NO480 20

380

20

YesNo

Inference

Acc. to survey 95% people satisfy for the LG product.


6-Are you satisfied for LG Services.

YES NO360 40

360

40

YesNo

Inference

Acc. to survey 90% of people satisfy for LG services.


7- From where you purchases LG product.

EXCLUSIVE SHOW ROOM NORMAL SHOP OTHER

250 150 000

250

150

Sales

Exclusive ShowroomNormal ShopOther

Inference

Acc. to survey this result is come out LG exclusive showroom sale is very good

compare than Normal Electronics Showroom.


7. How frequently you change your consumer durables?

1-3 YEAR 3-5 YEAR 5-10 YEAR MORE THAN 10

YEAR

60 150 210 80

60

150

210

80

Sales

1-3 Year3-5 Year5-10 YearMore than 10 year

Inference

Acc. to survey result is come out that its very good opportunity to the LG company

for sale our product.


Consumer survey Findings

1. The most important things is it is very difficult to meet the individual person

for a survey.

2. By calculating the display share we found that 100% of the consumer know

about LG company.

3. According to the survey 70% Customer are satisfied in services.

4. 60% people purchases the LG product in exclusive showroom.

5. And they also say that is product is also good compare than other company

product.

6. Some of the customer are brand loyal for LG company.

7. They want to buy from the showrooms or from co. showrooms. For them

service is important .Beside convenience and other factors service is key

factor.

8. Also majority of customers do not want any financing scheme for

purchasing the durables.

9. The product is well aware and it is on top of mind of customer.

10.Customers are also now very choosy in buying the product and it is

important for the company to make loyal customer of their brand.


RECOMMENDATIONS AND SUGGESTIONS

1. LG should More improve it’s after sale service.

2. More detailed customaries service is to be provided.

3. LG Should also provide some extra benefit to his customer.

4. LG Should also increase his customer.

5. LG should also increase it’s product demand.


LIMITATIONS

Every study has certain limitations. In my study, also there were certain

limitations, which I could not able to solve.

1. The research was conducted in a small area.

2. Time factor was also important for me. I had only 60 days to complete my

research, for which a full-fledged report was insufficient for me.

3. The customer filled the questionnaire mostly in careless manner, so it was

difficult to make them hold for time.

4. I had only found the upper-middle class family to fill up the questionnaire,

but generally, an average middle class family was required for the study.

5. The sample size is also very small which represent my research on

consumer behavior


BIBLIOGRAPHY

www.lgindia.com

www.google.com

www.wikipedia.com

Business world

Business today

LG magazine

Economics times News paper

Times of India

http://www.wikipedia.com/

http://www.google.com/


Annexure

Name :- _________________________________________

Occupation:-_________________________________________

Age:- _________________________________________

Contact no:-__________________________________________

1- Are you know about LG company.Yes

No

2- How do you know about LG company.

Advertise

Friends

Relative

Other

3-Are you used LG product.


Yes

NO

4-Which type of product you used.

Television

Freeze

Washing machine

Others

5-Are you satisfied for that product.

Yes

No

6-Are you satisfied for LG Services.

Yes

No

7- From where you purchases LG product.

Exclusive showroom

Normal Shop

Other

8. How frequently you change your consumer durables?

1-3 years


3-5 years

5-10 years

More than 10 years

9- Any improvement you want?

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10-Are you Given Any Suggestion.

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Lg project new

Technology

Transcript of Lg project new