Market Analysis of LG 21' T.V

A

Project Report

On

“ MARKET ANALYSIS OF LG 21” INCHES T.V ”

Submitted By

Mr. Vishal Devanand Panchal

In partial fulfillment of the requirements for the award ofMBA (Marketing)

Under The Guidance Of

Mr. Sourav ShuklaSubmitted To

J.M.S.S.G. Sanstha’s

Nandigram Institute Of Management

Studies,Pangri, Nanded

March 2012Swami Ramanand Teerth

Marathwada University, Nanded

CertificateThis is to certify that Project Report on

“ MARKET ANALYSIS OF LG 21” INCHES T.V.

”

Was successfully carried out By


In the partial fulfillment of MBA course being conducted by Nandigram

Institute Of Management Studies,Nanded during the academic year 2011

– 2012

Mr.Sourav Shukla Dr.Uday Kumthekar

Project Guide DIRECTOR

I hereby declare that the Project Report entitled “Market Analysis of

LG 21’’ inches TV in Nanded” has been composed by me under the guidance

of Mr.sourav Shukla and submitted to the Nandigram Institute Of

Management Studies,Nanded of SWAMI RAMANAND TEERTH

MARATHWADA UNIVERSITY, NANDED for the award of degree of Master

of Business Administration (MBA).

I assure that this project has not been submitted by any degree

anywhere in any college or University so far.

Date:

Place: Nanded


MBA IV (Sem)

Declaration

I wish to take opportunity to convey my profound gratitude to

several key personalities involved in the success of my project and I am

deeply indebted to all of them.

I would like to thank in particular Mr. Sourav Shukla who

has given her valuable time and taken the efforts to help me to prepare this

project. I would like to thank for her numerous suggestions and discussions.

I am also thankful to my Director Dr. uday Kumthekar for

his constant support and kind co-operation. I would like to thank to all the

staff members of MBA department for their suggestions and encouragement

time to time.

Finally I thank to my parents and my colleagues who have directly or

indirectly helped me in the completion of this project work.

Mr.Vishal Devanand Panchal

MBA IV Sem

Acknowledgement

Contents

Sr. No. Particulars Page No.

1. Introduction

2. Scope of project

3. Objectives of project

4. Limitations

5. History of company

6. Customer service

7. Research methodology

8. Data Analysis & interpretation

9. Findings

10. Conclusion

11. Recommendations & suggestions

12. Bibliography

13. Questionnaire

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, and Voltas were the major players in the

consumer durables market, accounting for no less than 90% of the market.

Then, after the liberalization, foreign players like LG, Sony, Samsung,

Whirlpool, Daewoo, and Aiwa came into the picture.

Today, these players control the major share of the consumer

durables market. Consumer durables market is expected to grow at 10-15%

in 2007-2008. It is growing very fast because of rise in living standards, easy

access to consumer finance, and wide range of choice, as many foreign

players are entering in the market with the increase in income levels, easy

availability of finance, increase in consumer awareness, and introduction of

new models, the demand for consumer durables has increased significantly.

Products like washing machines, air conditioners, microwave ovens,

color televisions (CTVs) are no longer considered luxury items. However,

there are still very few players in categories like vacuum cleaners, and

dishwashers Consumer durables sector is characterized by the emergence of

MNC’s, exchange offers, discounts, and intense competition.

INTRODUCTION

The market share of MNC’s in consumer durables sector is 65%.

MNC's major target is the growing middle class of India. MNC’s offer superior

technology to the Consumers whereas the Indian companies compete on the

basis of firm grasp of the local market, their well-acknowledged brands, and

hold over wide distribution network. However, the penetration level of the

consumer durables is still low in India.

SCOPE OF PROJECT

This project gives great exposure to the consumer durable market

because it includes product knowledge and field survey job of LG stores in

Nanded. LG always insist the 50% display share of LG product because LG

believes that “JO DIKHTA HAI WO BIKTA HAI”.

This project consist the survey of the following --

Calculate the display share of the LG product in every shop.

Collected the data of actual monthly sale of the LG products in

few shops.

Checked the availability of LG catalogue and the POPs in the

store.

Found out the problems that the dealer are facing while selling

the LG products.

Found out the customer response for LG products by asking the

owner of the shop.

Found out the distributor name from who they were purchasing

their products.

Checked whether demo calls are attended or not.

Objective

1. The main objective of filed survey during the project was to find out

the customer satisfaction of the LG 21” inches TV.

2. To find out the positional dealer who can sale the LG product in large

volume.

3. To find out the problem faced by dealer in the sales and in the

distribution.

4. To find out that how far the exhibitions are helpful in branding.

5. While purchasing the consumer durables which parameter is most

important for the consumer?

6. Do the consumers prefer the financial facility for buying consumer

durable?

7. To enhances the knowledge of consumer durable market.

8. To enhances the knowledge about the marketing and branding activity.

LIMITATIONS

Every study has certain limitations. In this there were certain

limitations, which could not able to solve.

1. The research was conducted in a very small area.

2. The research work period witness the biggest ups and downs in product

sale of different brands, which affected the perception of the customer.

3. Time factor was also important for us. We had limited time for the

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

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

difficult to make them hold for time.

5. This project found the upper-middle class family to fill up the

questionnaire, but generally, an average middle class family was required

for the study.

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

consumer behavior.

Introduction OF COMPANY

The company was originally established in 1958 as Gold Star,

producing radios, TV’s, 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.

1958-1969 : Gold Star the Electronics Industry Dream

1970-1979 : Gold Star symbol of The Technology

1980-1988 : Internationalization

1989-1994 : Inovation

1995-1998 : Globle Leaders LG Electronics

1999-2003 : Digital Management

2004-2006 : Great People Great Design

2007 : The People Company

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 :

LG Philips LCD

LG Chemical

LG Telecom

LG Powerco

LG Twins

LG Dacom

LG has the different business areas and main products. These are

as follows --

1. Mobile Communications

CDMA Handsets

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

4. Digital media

Home Theater Systems

DVD Recorders

Super Multi DVD Rewriters

CD±RW

Notebook PCs

Desktop PCs

PDAs

PDA Phones

MP3 Players

New Karaoke Systems

Growth Strategy :

“ Fast innovation, Fast growth ”

Core Competency :

“ Product leadership, Market leadership, People

leadership ”

Corporate Culture :

“ No excuse, ‘we’ not ‘I’, Fun workplace ”

Slogan:

“ ‘Life's Good’ represents the 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.

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.

3M

YAHOO

PHILLIPS

TOYOTA

MICROSOFT

HP

GOOGLE

INTEL

NORTEL

HITACHI

LG Brand Identity:

The brand of LG is delightfully smart. LG strives to enhance the

customer’s life and lifestyle with intelligent features, institutive functionality

and exceptional performance.

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 are as follows--

a. Trust

b. Innovation

c. People

d. Passion

The benefits that are consistently delivered to the customer

includes --

i. Reliable products

ii. Simple design

iii. Ease of use

iv. Extraordinary Experience

The best and the biggest international brands are here in India –

but the irony if it all: where is the after-sales-service? So integral to a brand,

so critical for its success and so taken for granted in developed markets! In

India, after sales service is, for want of a better description, the pits.

Brand Equity fanned out to MNC as well as Indian consumer

durable companies, stockiest and dealers, analysts and market researchers

to get feel of what’s really keeping after sales from being used as a cutting

edge marketing tool in pushing products across categories.

In the case of a service provider, after-sales service might include

additional training or helpdesk availability. Of equal importance is the

CUSTOMER SERVICE

customer's perception of the degree of willingness with which a supplier

deals with a question or complaint, speed of response, and action taken.

LG also had a big problem of after sale service in India. During the

project we also came to know that after sale service becomes the big issue

in the region. Customers as well as dealer were facing the problem of after

sales service. Because of this problem many dealer in the region were not

ready to sell LG product. So it becomes the big issue.

But LG has taken some solid steps towards improving customer’s

perception and experience of after sales service. LG Electronics has signed a

memorandum of understanding with 23 Industrial Training Institutes to

strengthen its after sales service in India.

The company aims to recruit 10,000 people by the end of this year

as a part of its branding strategy to focus on service and move away from

discounting. LG Electronics has identified eight states with high after sales

service call rates to ink the deals with the ITI.

Y V Verma, director HR and management system, LG Electronics

said, "The Company was trying to find a solution for effective after sales

service since last two years. There is a huge need of trained manpower for

the after sales service to align with the company's expansion and focus on

the GSM mobiles and the personal computer segments."

1. In the initial phase the company has entered into agreements with ITIs

in the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and

Karnataka and is in the last leg of signing with Uttar Pradesh.

2. L G Electronics, with 1200 service centers, has already recruited 300

students and plans to beef up the number to 10,000 by the year-end.

3. "The company has offered a scholarship to the selected students for

the last six months of their training program"

4. The company will invest Rs 8 crore (Rs 80 million) in employee

development program this year with an aim to attain a 8 per cent

attrition rate.

5. The company moved away from the discounting strategy since last

year and is putting thrust on the quality and service in its brand

communication to position LG as a premium consumer electronics

brand.

6. At the top, the Service Division in Korea reports to the Global CMO.

This shows commitment that Service must be made into a marketing

differentiator, and leveraged thus.

7. LG has the widest service network across the country; some estimates

put it at a significant multiple of service-infrastructure from our nearest

competitor.

8. The company has introduced a 211 service - once you register your

complaint, they will call you back in 2 hours (hence 2), set up an

appointment for the next convenient day for you (hence the first 1),

and show up in the promised 1-hour slot (hence the second 1). If the

next convenient day for you is the next day, that’s great too.

9. The company is promoting 211 through ATL, probably the first time

after sales service is being communicated in this fashion by any

product company.

10. The first LG-owned service centre opened in Gurgaon. (Service in

India generally works through authorized service centers, in LG’s case

they work exclusively for LG.)

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.

Research Design :

Research design is important primarily because of the

increased complexity in the market as well as marketing approaches

available to the researchers. 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.

Research METHODOLOGY

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. ”

Type of 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. Descriptive study can be

complex, demanding a high degree of scientific skill on part of the

researcher. Descriptive studies are well structured.

Descriptive studies can be divided into two broad categories: Cross

Sectional and Longitudinal Sectional. A cross sectional study is concerned

with a sample of elements from a given population. Thus, it may deal with

household, dealers, retail stores, or other entities. Data on a number of

characteristics from sample elements are collected and analyzed.

Descriptive research includes survey and fact finding enquiries of

different kinds of the major purpose. Descriptive research is description of

the state of affairs, as it exists at present. The main characteristic of this

method is that the researcher has no control over the variables; he can only

report what has happened or what is happening.

Data Collection Methods :

After the research problem, we have to identify

and select which type of data is to research. At this stage; we have to

organize a field survey to collect the data. One of the important tools for

conducting market research is the availability of necessary and useful data.

Primary Data :

For primary data collection, we have to plan the following

important aspects.

Sampling

Research Instrument

Data analysis and interpretation

1. Questionnaires

2. Pie chart

3. Bar chart

Secondary Data :

The Company’s profile, journals and various literature

studies are important sources of secondary data.

Data analysis andInterpretation

Table 1 : You have LG 21’’ TV

You Have Respondents Percentage

Yes 33 66

No 17 34

Total 50 100

Source: Field Survey

Chart No. 1 : You have LG 21’’ TV

Yes66%

No34%

You have LG 21’’ TV

Interpretation :

1) 66% of the respondents have said that they have LG 21’’ TV.

2) 34% of the respondents have said that they do not have LG 21’’ TV.

Table 2 : Preferable products of LG T.V.


Chart No. 2 : Preferable products of LG T.V.

Variety preference No. of respondents Percentage

LCD 7 20

CRT 13 40

Flatron 10 30

Plasma 3 10

Total 33 100

20%

40%

30%

10%

No. of respondentsLCD CRT Flatiron Plasma

Interpretation :

1) 20 % of the respondents has preferred for LCD TV.

2) 40 % of the respondents has preferred for CRT TV.

3) 30% of the respondents has preferred for Flatron.

4) 10% of the respondents has preferred for Plasma.

Table 3: Parameters influencing purchasing of L.G. 21” T.V.

Variety preference No. of respondents Percentage

Price 7 20

Product Feature 8 26

Brand 10 30

Service 4 12

Durability 4 12

Total 33 100


Chart No. 3 : Parameters influencing purchasing of L.G. 21” T.V.

20%

26%

30%

12%12%

Parameters InfluencesPrice Product feature BrandService Durability

Interpretation:

1) 20% of the respondents have preferred for price.

2) 26% of the respondents have preferred for product feature.

3) 30% of the respondents have preferred for brand.

4) 12% of the respondents have preferred for service.

5) 12% of the respondents have preferred for durability.

Table 4: Point of Purchase of L.G. 21” T.V.

Purchase Respondents Percentage

Dealer 23 70

Retailer 10 30

Total 33 100


Chart No. 4: Point of Purchase of L.G. 21” T.V.

70%

30%

Point of Purchase of L.G. 21” T.V.

Dealer Retailer

Interpretation:

1) 70% of respondents have preferred for purchasing the T.V. from

the dealer.

2) 30% of the respondents have preferred for purchasing the T.V.

from the retailer.

Table 5: Preference to buy T.V.

Reason Respondents Percentage

Attractive Prices 10 30

Services 7 20

Demonstration 8 26

Offers 5 16

Convenience 3 8

Total 33 100


Chart No. 5 : Preference to buy T.V.

Interpretation:

1) 30% of the respondents have preference to buy T.V. because of

attractive prices.

2) 20% of the respondents have preference to buy T.V. because of good

services.

3) 26% of the respondents have preference to buy T.V. because they get

from demonstration.

4) 16% of the respondents have preferred to buy T.V. because they firstly

preferred to services.

5) 8% of the respondents have preferred to buy T.V. because they get

convenience.

Attractive Prices30%

Services20%

Demonstration26%

Offers16%

Convenience8%

Preference to Buy

Table 6: Initiators to prefer LG T.V.

Initiators Respondents Percentage

Father 12 36

Mother 10 28

Self 6 18

Children 4 16

Other 1 2

Total 33 100


Chart No. 6: Initiators to prefer LG T.V.

FatherMother

SelfChildren

Other

05

10152025303540

Father; 36

Mother; 28

Self; 18Children; 16

Other, 2

Initaitors at the time of buying

Interpretation:

1) 36% father initiates the shopping of LG 21’’ TV.

2) 28% mother initiates the shopping of LG 21’’ TV.

3) 18% self initiates the shopping of LG 21’’ TV.

4) 16% children initiates the shopping of LG 21’’ TV.

5) 2% other people initiates the shopping of LG 21’’ TV.

Table 7: Advised to purchase LG TV

Advisor Respondents Percentage

Advertisement 15 44

Friends 9 26

Dealer 4 12

Any Other 5 18

Total 33 100


Chart No. 7: Advised to purchase LG TV

Advertisement44%

Friends26%

Dealer12%

Any Other 18%

Advised to purchase LG TV

Interpretation:

1) From the survey it is to be found that 44% of the respondents

have influenced by the advertisement.

2) 26 % of the respondents have influenced by friends.

3) 12 % of the respondents have influenced by dealer.

4) 18 % of the respondents have influenced by some other reason.

Table 8: Opinion about service Quality of LG T.V

Service quality Respondents Percentage

Good 17 50

Moderate 12 36

Bad 4 14

Total 33 100


Chart No. 8: Opinion about service Quality of LG T.V

Good50%

Moderate36%

Bad14%

Opinion about service Quality of LG T.V

Interpretation:

1) 50 % of the respondents have satisfied by service quality.

2) 36% of the respondents have moderately satisfied by service quality.

3) 14% of the respondents have not satisfied by the service quality.

Table 9: Easy availability of product

Easy Available Respondents Percentage

Yes 22 66

No 11 34

Total 33 100


Chart No. 9: Easy availability of product

Interpretation:

1) 66% of the respondents have said the product is easily available to

them.

2) 34% of the respondents have said that product is not easily available to

them.

Yes66%

No34%

Easy availability of product

Table 10: Specialty of LG T.V.

Specialty Respondents Percentage

Good quality 13 40

Good features 10 30

Good durability 7 20

Any Other 3 10

Percentage 33 100


Chart No. 10: Specialty of LG T.V.

Good quality40%

Good features30%

Good durability20%

Any Other10%

Specialty of LG T.V.

Interpretation:

1) 40% of the respondents have preferred the T.V. because of good

quality.


features.


durability.

4) 10% of the respondents have preferred the T.V. because of any

other reason.

Table 11: Satisfaction Level of the Respondents

Satisfaction level Respondents Percentage

Fully Satisfied 10 20

Satisfied 22 44

Partially Satisfied 12 24

Unsatisfied 6 12

Total 33 100


Chart No. 11: Satisfaction Level of the Respondents

Fully Satisfied20%

Satisfied44%

Partially Satisfied 24%

Unsatisfied12%

Satisfaction Level

Interpretation:

1) 20% of the respondents are fully satisfied after buying the TV.

2) 44% of the respondents are satisfied after buying the TV.

3) 24% of the respondents are partially satisfied after buying the TV.

4) 12% of the respondents are unsatisfied after buying the TV.

1) 40% of the respondents have preferred for CRT TV.

2) 30% of respondents have preferred for brand.

3) Most of the respondents near about 70% have preferred to buy TV

from dealer.

4) Near about 30% respondents have preferred TV because of attractive

prices.

5) As per the survey it is to be found that 36% of the respondents are

father as initiator.

Findings

6) Most of the respondents i.e. near about 44% have influenced by

advertisement while at the time of purchasing.

7) Near about 50% of the respondents have satisfied by the service

quality.

8) Most of the people i.e. 40% have preferred TV because of good quality.

9) As per the survey 44% of the respondents are satisfied after buying

the TV.

1. As per the changing needs of the customers the company is providing

good quality of products as they earlier also do.

2. Most people are buying the T.V. because it is durable and eye sensitive

also which is firstly done by this company.

3. Due to various demonstration and price satisfaction by the customers

it could help them enormously.

4. While after purchasing the T.V. the response of the people is also quite

good.

Conclusions

5. As per the part of service quality and durability respondents shows a

good feedback.

Along with respondents, dealer and observation this report came

to know that;

1) Company should provide some additional facilities of product.

2) Various issues regarding to the new series of product could be

launched in the city like Nanded so it more consumption may also

takes place.

3) As per the growth of the consumption they should follow some

additional features of the product.

4) Company should always focus on service so it could get maximum

output.

Suggestions

5) Company should try to improve service. No doubt the company

products have technically edge over competitors but in long run it may

hamper the company’s profit.

6) Company should also be focus on LCD’s other size of T.V. it will also

helpful for them.

1. Kothari C.R, Methodology Research

2. www.lgindia.com

3. www.google.com

4. www.wikipedia.com

5. LG magazine

Bibliography

Consumer Satisfaction Questionnaire for LG 21” T.V.

Name of the customer: ……………………………………………

Address: …………………………………………………………….

Income (Monthly): …………………………………………………

Sex: - Male Female

Q.1 Do you have a LG 21”T.V.?

a. Yes

b. No

Q.2 Which LG 21”T.V. does you has?

a. CRT

b. LCD

c. Flatiron

d. Any Other

Questionnaire

Q.3 While purchasing L.G. 21” T.V. which parameter influences you?

a. Price

b. Product feature

c. Brand

d. Service

e. Durability

Q.4 From where you purchase LG 21” T.V.?

a. Dealer

b. Retailer

Q.5 You prefer to buy from the same as you have mentioned in above

question because of following reason;

a. Attractive price

b. Service

c. Demonstrations

d. Offers

e. Convenience

Q.6 Who initiates the shopping of LG 21” T.V. in your family?

a. Father

b. Mother

c. Self

d. Children/Teenager

e. Other

Q.7 Who has advised you to purchase the LG 21” T.V.?

a. Advertisement

b. Friends

c. Dealer

d. Any Other

Q.8 How is the service quality of L.G. 21” T.V.?

a. Good

b. Moderate

c. Bad

Q.9 Can you get the LG product easily from dealer?

a. Yes

b. No

Q.10 What is the specialty of LG 21” T.V.?

a. Good quality

b. Good features

c. Good durability

d. Any other

Q.11 Are you satisfied by the services offered LG 21”T.V. products?

a. Fully Satisfied

b. Satisfied

c. Partially Satisfied

d. Unsatisfied

Market Analysis of LG 21' T.V

Documents

Transcript of Market Analysis of LG 21' T.V