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    Awareness and Concept of Microwave Oven as a product and

    Consumer Behavior in respect of LG brand

    CHAPTER CONTENTS

    Chapter 1

    INTRODUCTION

    Objective of Study

    Scope of Study Methodology

    Statement of Problem

    Limitations

    Chapter 2

    RESEARCH DESIGN

    Chapter 3

    INDUSTRY PROFILE Consumer Durables

    Market Definition

    Market Analysis

    Problem of Indian Appliances Brand

    Success of Korean Brands in India

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    Chapter 4

    COMPANY PROFILE

    History

    Vision Branch Hierarchy

    Microwave Oven Industry -An Overview

    Chapter 5

    PRODUCT PROFILE

    Chapter 6

    DATA ANALYSIS & INTERPRETATION

    Chapter - 7

    FINDINGS, SUGGESTIONS & CONCLUSION

    Appendix

    Questionnaires

    References

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    Chapter 1

    INTRODUCTION

    Objective of Study

    Scope of Study

    Methodology

    Statement of Problem

    Limitations

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    Objective of Study

    To find out the awareness level of Microwave ovens among the

    customers.

    To find out the most effective media for accelerating awareness

    level of Microwave ovens.

    To find the key factors for denial & acceptance of Microwave

    ovens.

    To find the reasons for low rate of acceptance for Microwave

    ovens.

    To find brand preference among consumers while purchasing

    Microwave Ovens.

    To find out consumer attitude towards LG brand among various

    other competitive brands lined up.

    To find which product category of LG is most popular among

    consumers and dealers.

    To find satisfaction level of persons who are already using LG

    brand.

    To find the key factors for stocking of LG products by the dealers.

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    Scope of Study:

    This study was conducted to find out the awareness of microwave

    ovens and consumer behaviour in respect of Electrolux brand, so the

    scope of this study is very wide. Microwave ovens as a product are still

    new in the market and yet to get its acceptance globally. People are

    Methodology:

    The study was qualitative in nature and based primarily on

    consumers opinion survey.

    Data source : Primary & Secondary.

    Research Approach : Descriptive Data (Survey Data & Observational &

    other data).

    Research instruments : Well structured questionnaires comprising of

    open and close ended questions.

    Sampling plan : All respondents surveyed were selected in Random order

    and the same were taken from Shimoga.

    Statement of Problem

    The nuclear intention in designing such a project was to understand

    factual benefits and acceptance of LG microwave oven or just could I

    speak of only a microwave oven. Its unawareness is a cause that it sells

    less. Its lesser sales statistics in North Eastern States evidently is a

    consequence of the reason that people here are adapted to their own life

    style and no new circumstantial changes are even accepted by this

    section.

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    Nevertheless, a theory runs of change. Nothing in this world is

    absolute except the word itself. Hence an attempt is reconciled to put

    forth the fact that an acceptance of such kind of equipment actually can

    change life. The analysis of this subject would be an effort that however

    strong promotions could be its only important, how the niche or the

    requirement of that need is created and mankind faces erratic changes. He

    should envisage at a time that without a microwave oven, life could be

    possible but would be really difficult.

    The objective also speaks about just, not a requirement in a

    kitchen, but also its accessibility modes & availability in all sections of

    people. Life should never be categorized on the basis of a product that

    its not meant for us!

    It should be there, used proportionately to equate lifestyles and

    hence then the brand would reign in the kingdom called MARKET and

    hence it steps into an arena called SUCCESS.

    Specification is perhaps, a mirror which gives us clarity of thought

    in a right direction. If Microwave Oven has to spoken with consumer

    behaviour, lets take LG as the spokesperson amongst the hardcore

    loyalist who made LG directly proportional to microwave ovens, beyond

    several of its other products which it might be catering. The

    modernization in the concept, its acceptability in the global reach and its

    usage in the common made LG more of a bigger brand. Its technical

    viabilities are specific in accordance with Indian kitchen psychology. If a

    Pizza is absent on a snacks table, a Spicy Dhokla could also be there.

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    Never mind brownies to be non prevalent in a coffee gossip, but plain

    bisque also could be served hot from a LG Microwave Oven. Hence the

    design, the models and overall study analysis would yield of certain

    additions or deletions or modifications, but underlying statement is LG

    microwave ovens should be more available and often seen in North

    Eastern kitchen.

    Sometimes, financial constraint comes out to be a reason that service

    class or if correctively spoken, the lower middle class finds it to be a

    hindrance in purchase. A dealer, at times comes out with schemes with

    companies, when they feel of an implementation of installments, which

    would catalyse sales. At times, even dealers, with the help of local

    finance companies comes up with interest less modes of installments.

    Then life becomes so easy! Packets of LG microwave ovens are seen

    more in the hands of obeying husbands followed by LG microwave

    ovens well understood by wives.

    Limitations:

    Lack of interest and enthusiastic responses may have allowed

    biases in this 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 respondents.

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    Chapter 2

    Research Design

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    Research Design

    Research Methodology

    The methodology adopted to accomplish this project was in accordance

    with the topic assigned. The study was based on data collected mainly

    from primary as well as secondary sources. Descriptive research

    methodology was adopted for the purpose of study.

    Designing the QuestionnairesThis study was conducted in five parts and accordingly questionnaires are

    also set categorically:

    Questionnaire for those who have microwave ovens

    Questionnaire for those who dont have microwave ovens

    Questionnaire for those who have used LG brand

    Questionnaire for the dealers

    The method adopted for developing the above mentioned questionnaires

    followed the following sequential order :

    Determining the objective of the project and specific data to be sought.

    Determining the process of interviewing.

    Scrutinizing the question content.

    Setting the response format.

    Setting the wording of the questions.

    Setting the questionnaire structure.

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    Pre-testing, revising, redesigning and final draft.

    The questionnaires were prepared in consultation with the Company

    guide as well as the institutional guide.

    Pre-Testing The Questionnaire

    Before implementing the questionnaires in the field, it was pre-

    tested to avoid any ambiguous questions and to see the effectiveness of

    the questionnaires. For this reason a pilot survey with 10 consumers was

    conducted.After Pre-Testing it was found that, few questions were not

    apprehend able by the respondents; these were accordingly redesigned

    and revised so as to make them more understandable. Finally the

    questionnaires were printed and used in collecting responses for the

    survey.

    Methods Of Collecting Data

    The data was collected mostly from primary sources. During the

    period of this study I got the responsibility to give demonstrations to

    consumers and thus I got the opportunity to talk to the consumers directly

    and check their awareness level about microwave ovens. During my

    interactions with the consumers I always tried my best to make them

    understand that our local food habits are fully compatible with

    microwave ovens and tried to reveal various relative advantages of

    microwave cooking:

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    Food cooks evenly, quickly and efficiently in the microwave. Also the

    nutrients are preserved and the actual taste of the food is retained to a

    higher degree.

    Only a minimum amount of oil is required for cooking continental

    as well as traditional Indian dishes and so it seems desirable from the

    health point of view.

    Also shorter and controlled cooking time means that the food does

    not get burnt or over-cooked.

    Food may be cooked and served in the same dish.

    Another major advantage is that food is cooked minus the smoke, grease

    and heat and so the kitchen remains neat and tidy always.

    Microwave has multifarious uses like de-frosting, re-heating, etc.

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    Chapter 3

    Industry Profile

    Consumer Durables

    Market Definition

    Market Analysis

    Problem of Indian Appliances Brand

    Success of Korean Brands in India

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    Today, these players control the major share of the consumer durables

    market.

    Consumer durables market is expected to grow at 10-15% in 2009-2010.

    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.

    On the flip side, the presence of a large number of players in the

    consumer durables market sometimes results in excess supply.

    Overview

    Market Definition

    The consumer electronics market consists of the total revenues

    generated through the sale of audio, video, and games console products

    designed primarily for domestic use. The audio sector consists of hifi

    systems, cassette, CD, Mini disc and MP3 recorders and players, personal

    stereos, and radios. The video sector consists of CRT and flat-panel

    television sets, videocassette and DVD players and recorders (standalone

    and integrated with TV sets), camcorders, digital cameras, and set-top

    boxes. Games consoles consist of all hand-held and plug-in consoles. The

    market is valued at retail selling price (RSP) with any currency

    conversions calculated using constant 2006 annual average exchange

    rates.

    Asia-Pacific comprises Australia, China, Japan, India, Singapore, South

    Korea and Taiwan.

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    Highlights

    The Indian Consumer Electronics market generated total revenues

    of $4.8 billion in 2010, this representing a compound annual growth rate

    (CAGR) of 11.1% for the period spanning 2002-2009.Video equipment

    sales proved the most lucrative for the Indian Consumer Electronics

    market in 2006, generating total revenues of $3 billion, equivalent to

    80.8% of the market's overall value. The performance of the market is

    forecast to accelerate, with an anticipated CAGR of 5.4% for the 2006-

    2011 period expected to drive the market to a value of $4.9 billion

    by the end of 2011.

    Market Analysis

    The Indian Consumer Electronics market generated total revenues

    of $4.8 billion in 2010, this representing a compound annual growth rate

    (CAGR) of 11.1% for the period spanning 2002-2006. In comparison, the

    Chinese and Japanese markets grew with CAGRs of 11.8% and 15.7%

    over the same period, to reach respective values of $17.6 billion and

    $20.5 billion in 2010.

    Video equipment sales proved the most lucrative for the Indian

    Consumer Electronics market in 2010, generating total revenues of $3

    billion, equivalent to 80.8% of the market's overall value. In comparison,

    sales of audio equipment generated revenues of $0.6 billion in 2010,

    equating to 14.9% of the market's aggregate revenues. The performance

    of the market is forecast to accelerate, with an anticipated CAGR of 5.4%

    for the 2006-2011 period expected to drive the market to a value of $4.9

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    billion by the end of 2011. Comparatively, the Chinese and Japanese

    markets will grow with CAGRs of 9.2% and 7% respectively over the

    same period, to reach respective values of $27.4 billion and $28.6 billion

    in 2011.

    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

    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 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. An important factor behind low

    penetration is poor government spending on infrastructure. For example,

    the government spending is very less on electrification programs in rural

    areas. This factor discourages the consumer durables companies to

    market their products in rural areas.

    Some Facts,

    1. Bargaining power of suppliers in consumer durables sector is

    limited due to threat of imports and intense competition.

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    2. Some of the entry barriers in consumer durables sector are distribution

    network, capital, and ability to hire purchases.

    3. Demand is seasonal and cyclical.

    4. Competition among players is on the basis of difference in prices and

    well-acknowledged brands.

    Market Value

    The Indian consumer electronics market grew by 7.6% in 2010 to

    reach a value of$3.8 billion. The compound annual growth rate of the

    market in the period 2006-2010 was 11.1%.

    Table 1: India Consumer Electronics Market Value: $ billion, 2006-2010

    Year $ billion INR billion % Growth

    2006 2.5 109.2

    2007 2.9 126.8 16.10%

    2008 3.2 141.7 11.80%

    2009 3.5 154.7 9.20%

    2010 3.8 166.5 7.60%

    CAGR, 2006-2010: 11.1%

    Sector Outlook

    There has been strong competition between the major MNCs like

    Samsung, LG, and Sony.

    According to isuppli Corporation (Applied Market Intelligence),

    country's fiscal policy has encouraged Indian consumer electronic

    industry. The reduction on import duty in the year 2005-06 has benefited

    many companies, such as Samsung, LG, and Sony. These companies

    import their premium end products from manufacturing facilities that are

    located outside India.

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    Indian consumers are now replacing their existing appliances with

    frost-free refrigerators, split air conditioners, fully automatic washing

    machines, and color televisions (CTVs), which are boosting the sales in

    these categories.

    Some companies like. LG Electronics India Ltd. & Samsung Electronics

    Co. Ltd is now focusing on rural areas also. These companies are

    introducing gift schemes and providing easy finance to capture the

    consumer base in rural areas.

    Growth in 2009-10

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    Consumer Durables Growth

    Air Conditioner 25-35%

    Refrigerator 25-30%

    Microwave Ovens 35%

    Washing Machines 10-20%

    Color Televisions (CTVs) 25-40%

    Black & White Televisions -25%

    VCDs 40%

    Consumer Electronics (Overall) 15%

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    Scope

    In terms of Purchasing Power Parity (PPP), India is the 4th largest

    economy in the world and is expected to overtake Japan in the near future

    to become the 3rd largest. Indian consumer goods market is expected to

    reach $400 billion by 2010. India has the youngest population amongst

    the major countries. There are a lot of young people in India in different

    income categories. Nearly two- thirds of its population is below the age

    of 35, and nearly 50 % is below 25. There are 56 million people in

    middle class, who are earning US$ 4,400- US$ 21,800 a year. And there

    are 6 million rich households in India. The upper-middle and high-

    income households in urban areas are expected to grow to 38.2 million in

    2007 as against 14.6 million in 2000.

    -

    Rural sector offers huge scope for consumer durables industry, as it

    accounts for 70% of the Indian population. Rural areas have the

    penetration level of only 2% and 0.5% for refrigerators and washing

    machines respectively. The urban market and the rural market are

    growing at the annual rates of 7%-10%and 25% respectively. The rural

    market is growing faster than the urban market. The urban market has

    now largely become a product replacement market.

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    The bottom line is that Indian market is changing rapidly and is showing

    unprecedented business opportunity.

    Current Scenario

    The consumer durables market in India is valued at US $ 4.5

    billions currently. In 2007, microwave ovens and air conditioners

    registered a growth of about 30%. Frost-free refrigerators have registered

    significant growth as many urban families are replacing their old

    refrigerators. Refrigerator sales amounted to 4.2 millions in 2006,

    whereas the production of the refrigerators went up by 17% as compared

    to the preceding year. Washing machines, which have always seen poor

    growth, have seen reasonable growth in 2006. More and more Indians are

    now buying electrical appliances due to change in electricity scenario.

    The penetration level of color televisions (CTVs) is expected to increase

    3 times by 2008.

    According to National Council for Applied Economic

    Research (NCAER), Indian consumer class is growing at a fast rate.

    This in turn is benefiting the consumer durables Manufacturers.

    Future Scenario

    With easy availability of finance, emergence of double-income

    families, fall in prices due to increased competition, government support,

    growth of media, availability of disposable incomes, improvements in

    technology, reduction in customs duty, rise in temperatures, growth in

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    consumer base of rural sector, the consumer durables industry is growing

    at a fast pace. Given these factors, a good growth is projected in the

    future, too.

    The penetration level of consumer durables is very low in India, as

    compared with other countries. This translates into vast unrealized

    potential.

    For example, in case of color televisions (CTVs), the penetration

    level of various countries is:

    India 24%Brazil 11%

    China 98%

    US 333%

    France 235%

    Japan 250%

    Demand and Penetration Level of White Goods in India

    1995-1996 2005-2006 2009-2010

    Demand 3.43 million 8.72 million 13.14 million

    Penetration level149 per 1,000households

    319 per 1,000households

    451 per 1,000households

    In a study conducted by Frost & Sullivan and commissioned by India

    Semiconductor Association (ISA), the demand for Electronic Appliances

    is projected to grow exponentially at a compounded annual growth rate

    (CAGR) of 30%.

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    In billions

    Rising India

    India, as one of the four BRIC nations, along with Brazil, Russia

    and China, is running an average of 7 percent annual economic growth,

    mostly driven by a growing IT sector. Some experts predict that Indiawill become the world's largest economy by 2035.

    The economic reforms initiated by the government in the early

    1990s have done much to boost the Indian economy, and it seems they

    have also transformed Indian consumer perceptions about CONSUMER

    GOODS.

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    Huge Middle Class Demand

    Demand for consumer durables is set to grow 12-15 per cent a year in

    India over the next five years, helped by rising salaries and soaring

    aspirations among the nation's estimated 270 million middle class.

    LG -- which sells plasma color TVs, air-conditioners, refrigerators,

    washing machines, computers and mobile phones -- expects Indian sales

    to hit $1.9 billion in 2005, and reach $6.7 billion in 2010, up about 29 per

    cent each year.

    The appliance market in India is dominated by foreign brands. Korean

    brands, followed by American brands like Whirlpool, have replaced

    once-popular Indian names Samsung, Onida, BPL, Voltas, Kelvinator,

    and Godrej as brand leaders. Only Indias Videocon is perceived to be

    competitive with foreign brands.

    Problem of Indian Appliances Brand

    The problem with Indian appliances brands seems to be the

    perception that they have not delivered innovative products. Korean

    brands, in contrast, performed much better on this score while offering

    value-for-money products, and this has earned them the confidence of

    Indian consumers.

    Further, Indian appliance producers have not focused on

    harnessing the power of their brands by targeting smaller town markets

    and lower price points. At one time Indian appliance makers like Sumeet

    and other local brands garnered sales volume through bargains, discounts

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    and exchange offers. When Chinese players entered the market with

    competitively priced products, due to their extremely low production

    costs, the Indian players lost ground here as well. The only appliance

    segment in which Indian brands continue to steadfastly rule the market is

    mixer-grinders/food processors, where Indian products are designed to

    meet unique Indian kitchen needs.

    Recognizing the fact that Indian brands need a wider product

    portfolio, Godrej, a traditional home appliance manufacturer, is making a

    foray into production of color TVs and DVD players. Mirc Electronics, a

    maker of Onida brand TVs, has moved into appliances with its washing

    machines and air-conditioners. Perhaps they are hoping to duplicate the

    success of Korean brands, which flooded the Indian market with a wide

    range of products, but it remains to be seen if Indian brands in the

    appliance segment will win back the confidence of Indian consumers.

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    NEW LAUNCHES AND INNOVATION FUEL GROWTH

    Detergent-free washing machines, freestanding cooker hoods and

    microwaves helped drive growth as manufacturers targeted the premium

    end of the industry. Up to eight microwaves were launched in 2005 with

    LG Electronics India Pvt. Ltd. taking the lead. As Indian consumers

    became more sophisticated in their buying habits, companies were forced

    to bring in the latest products, designs and innovations to meet demand.

    Also interesting were the LPG-based and halogen heaters within the

    heating appliances range as LPG- bases heaters helped marketers to

    further expand their market into villages and smaller towns as well where

    electricity is still not frequently available.

    SUCCESS OF KOREAN BRANDS IN INDIA

    According to a recent survey conducted by GFK Marketing Services, one

    of the world's top-five market research companies, LG Electronics Inc.

    was found to lead in India's five major home appliances categories; Color

    televisions, Refrigerators, Washing machines, Air conditioners and

    Microwave ovens, during the April-June period.

    LG-brand air conditioners held a 41 percent market share, televisions

    26.7 percent, refrigerators 29.4 percent, washing machines 35.1 percent

    and microwave ovens 38.9 percent.

    Televisions rose 2.3 percent, while refrigerators and washing machines

    rose 3.4 percent and 2.7 percent respectively, from a year ago.

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    Swot Analysis

    Strengths

    1. Presence of established distribution networks in both urban and rural areas

    2. Presence of well-known brands.3. In recent years, organized sector has increased its share in the market vis a

    vis the unorganized sector.

    Weaknesses

    1. Demand is seasonal and is high during festive season

    2. Demand is dependent on good monsoons

    3. Poor government spending on infrastructure4. Low purchasing power of consumers

    Opportunities

    1. In India, the penetration level of white goods is lower as compared to other

    developing countries.

    2. Unexploited rural market

    3. Rapid urbanization.

    4. Increase in income levels, i.e. increase in purchasing power of

    consumers

    5. Easy availability of finance.

    Threats.

    1. Higher import duties on raw materials imposed in the Budget 2009-10

    2. Cheap imports from Singapore, China and other Asian countries

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    Chapter 4

    Company Profile

    History

    Vision

    Branch Hierarchy

    Microwave Oven Industry -An Overview

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    Company Profile

    History

    LG Group is a large South Korean chaebol (conglomerate), which

    produces electronics (including domotics), mobile phones and

    petrochemical products and operates subsidiaries like LG Electronics.

    The company was originally established in 1958 as GoldStar,

    producing radios, TVs, refrigerators, washing machines, and air

    conditioners.

    The LG Group was a merger of two Korean companies, Luckyand GoldStar, 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 GoldStar (Hangul:).

    Based in South Korea, LG Electronics (LGE) had a global

    turnover of US$ 29.9 billion in 2003 . LGE has 50 affiliated

    companies across the globe, with 300 offices and presence in 120

    countries. With over 64,000 employees, it focuses on four main

    businesses - Electronics and Telecommunications, Services, Finance

    and Chemicals. LGE has 20 R&D centers worldwide and has

    subsidiaries in 76 countries.

    Created in 1947 as "Lucky-Goldstar", it assumed the abbreviated

    name of "LG" in 1995. LG is also an abbreviation of "Lucky

    Geumseong" in South Korea, which is translated into English as Lucky

    Venus (Goldstar). Before then, many electronic products were sold under

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    the brand name Goldstar, while some other household products (not

    available outside South Korea) were sold under the brand name of Lucky.

    The Lucky brand was famous for producing household cleaning products

    and laundry detergents in South Korea. Before massive industrialization

    of South Korean society, the name Lucky was synonymous with

    toothpaste.

    Since 2001, LG has two joint ventures with Royal Philips Electronics:

    LG Philips Display and LG.Philips LCD. LG has made a joint venture

    with Nortel Networks and has created LG-Nortel Co. Ltd.

    LG also has a joint venture with Hitachi which manufactures optical data

    storage solutions like DVD-ROM drives, CD writers, etc. LG has owned

    the LG Twins baseball club since 1989.

    LG acquired a majority share of the American television manufacturing

    company Zenith in 1995.

    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).

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

    nationwide launch by LG in a period of 4 and 1/2 months with the

    commencement of operations in May 1997. LG set up a state-of-the art

    manufacturing facility at Greater Noida, near Delhi, in 1998, with an

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    investment of Rs 500 Crores. This facility manufactured Colour

    Televisions, Washing Machines, Air-Conditioners and Microwave

    Ovens.

    During the year 2001, LG also commenced the home production for its

    eco-friendly Refrigerators and established its assembly line for its PC

    Monitors at its Greater Noida manufacturing unit. The beginning of 2003

    saw the roll out of the first locally manufactured Direct Cool Refrigerator

    from the plant at Greater Noida.

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

    Pune, Maharashtra that commences operations in October this year.

    Covering over 50 acres, the facility manufactures Color Televisions, Air

    Conditioners, Refrigerators, Washing Machines Microwave Ovens Color

    Monitors and GSM phones.

    The Greater Noida manufacturing unit line has been designed with the

    latest technologies at par with international standards at Korea and is one

    of the most Eco-friendly units amongst all LG manufacturing plants in

    the world.

    Established in 1997, LG Electronics India (LGEI) is a wholly-

    owned subsidiary of LG Electronics South Korea. It is one of the

    leading companies in consumer electronics, home appliances and

    computer peripherals in India. It has a turnover of almost US$ 1000

    million in India. LGEIs sales are increasing with a CAGR of 40

    % over the past five years.

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    LG is the market leader in various segments like CTVs,

    Microwave ovens, Frost-Free Refrigerators, Washing Machines and Air-

    Conditioners, with market shares of 26.2 percent, 41.2 percent, 37.9

    percent, 34.1 percent and 34 percent respectively.

    LG Electronics India received the Occupational Health & Safety

    Management System OHSAS 18001:1999 certification from the British

    Standards Institution (BSI), India, for a systematic approach towards

    Occupational Health and Safety Management.

    Various studies have shown that the consumer is well informed on the

    health awareness front. LG was one of the first companies who

    recognized the emerging change in consumer needs and decided to

    differentiate their products on the basis of technology which appealed to

    the consumer on the basis of health benefits. Its vision was to become a

    'Health Partner' for its consumers worldwide and therefore formulated its

    corporate philosophy to make peoples' lives better, convenient and

    healthier

    The CTV range offered by LG has 'Golden Eye' technology, which

    senses the light levels in the room and adjusts the picture to make it more

    comfortable for the eyes. The entire range of LG air-conditioners have

    'Health Air System', which not just cools, but keeps pollution out.

    Similarly, microwave ovens have the 'Health Wave System', refrigerators

    have the 'PN System', which preserve the nutrition in food and washing

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    machines have 'Fabricare System', which takes the health factor down to

    ones clothes. All the products offered by the company have unique

    technologies, developed by its R&D departments that give customers a

    healthier environment to live-in.

    The year 2001 witnessed LG becoming the fastest growing company in

    the consumer electronics, home appliances and computer peripherals

    industry. The company had till the month of October 2001 achieved a

    cumulative turnover of Rs 5000 Crores in India since its inception in

    1997, making it the fastest ever Rs 5000 Crores clocked by any company

    in the Indian consumer electronics and home appliances industry. Having

    achieved this milestone, LG achieved another benchmark with the first

    ever sales of One Lakh ACs (Windows and Splits) in a calendar year.

    In Colour Televisions having set the sales target of one million units of

    Color Televisions for 2002, LG has already achieved the one million

    mark in the month ahead of its target. In 2003, LG has emerged as the

    leader in Colour Televisions, Washing Machines, Air Conditioners,

    Frost-Free Refrigerators and Microwaves Ovens.

    In the year 2004, LGEIL achieved unprecedented sales efficiency both in

    Direct Cool and Frost Free segment and sold more than 1 million units of

    refrigerators outperforming industry expectations.

    LG Electronics India is the fastest growing company in the consumer

    electronics, home appliances and computer peripherals industry today.

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    LG Electronics is continually providing superior technology products &

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

    The company has achieved a turnover of Rs 6500 crore in 2004 and aims

    to touch a turnover of 10 Billion US Dollars by 2010 and commands an

    enviable position in the GSM mobile phone market. It has already started

    manufacturing of GSM phones in its plant at Pune.

    LG India has also been taking on a slew of initiatives as a part of

    Corporate Social Responsibility. LGEIL is proud to have adopted about

    24 villages around our Greater Noida facility. LG extends Free Medical

    Care, which comprises of free check ups and a free distribution of

    medicines on a daily basis. LGEIL is also generating self-employment

    opportunities for the people in the form of tailoring, knitting etc. in

    addition to all this, LG also sends veterinary doctors regularly to these

    villages.

    Besides all this, LG India is one of the very few companies in the country

    that has an internal Energy, Environment, Safety and Health Department.

    This function caters to activities like Energy Conservation,

    Environmental Issues, Work Place Fire and Safety as well as

    Occupational Health for the benefit of the employees.

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    LG BENEFITS: LG delivers a different experience

    LG: THE PERSONALITY LG is delightful

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    Branch Hierarchy

    VISION :

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    LG has a positive perception of India and the Indian consumer.

    LG is making a foray into the e-commerce market in India and has

    partnered with various local websites like fabmall.com, rediff.com,

    indiatimes.com, and indiaplaza.com.

    Secondly launching of new technologies in consumer electronics

    and home appliances .

    Thirdly LGEIL is implementing a digital manufacturing system

    (DMS) as a cost-cutting innovation. This system is a follow-up to

    the Six Sigma exercise LGEIL had initiated earlier.

    LG is also planning to invest over US$ 208 million in India over

    the next three years to expand the business. Mobile software

    development is also on LGs agenda.

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    MICROWAVE OVEN

    MICROWAVE OVEN INDUSTRY

    ---AN OVERVIEW.

    Even as a host of electronic products made rapids inroads into Indian

    homes in the last decade, the microwave oven an essential item in every

    kitchen in developed countries-did not.

    Homemakers preferred to make do with their gas stoves, tawas and

    pressure cookers.

    Last year was different though. The microwave oven market jumped as

    much as 25 percent to about 2.4 lakh units. This is still a fraction of the

    colour television market, which stands at over 6 million units, but going

    by the current level of activity, microwaves in India appear set to go the

    global way.

    A combination of factors has brought the market alive. Leading players

    like Samsung, LG, Whirlpool and Electrolux have introduced a range of

    models, with prices of entry level ones coming down to below Rs 6,000

    last year. Many local players are sourcing products from China and

    selling it here at very attractive rates.

    LG, Samsung , Electrolux are also making determined efforts to get the

    homemaker to see the microwave as a cooking device, rather than as a

    mere reheating one, by holding country-wide cookery classes and home

    demonstrations.

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    Some has also customized microwaves to Indian conditionsthere are,

    for instance, Whirlpool microwaves that seek to replicate the tawa effect

    to make Indian items like parathas and crisp dosas, and those which

    enable steam cooking for items like idlis and dhoklas.

    Innovations are also making the product look increasingly attractive. The

    longstanding concern that microwaves destroy a lot of valuable nutrients,

    far more than other forms of cooking, is being sought to be addressed

    technologically. Samsung claims its patented bio ceramic enamel coating

    helps retain essential vitamins while cooking.

    With the increased purchasing power of the younger generation and with

    more and more women balancing home and careers, any product that

    provide convenience and saves time will be well accepted in time to

    come. As for the companies, with competition heating up with increasing

    capacities and players, companies with the ability to cater the

    requirements of middle income households and with a certain level of

    indigenous know-how will emerge winners in this cluttered market.

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    Chapter 5

    Product Profile

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    Product Profile

    During a radar-related research project in 1946 that Dr. Percy

    Spencer, engineer with the Raytheon Corporation, noticed something

    very unusual. He was testing a new vacuum tube called a magnetron

    when he discovered that the candy bar in his pocket had melted. This

    intrigued Dr. Spencer, so he tried another experiment. This time he

    placed some popcorn kernels near the tube and, perhaps standing a little

    farther away, he watched with an inventive sparkle in his eye as the

    popcorn sputtered, cracked and popped all over his lab.In 1946, the Raytheon Company had filed a patent proposing that

    microwaves be used to cook food. An oven was then placed in a Boston

    restaurant for testing.

    At last, in 1947, the first commercial microwave oven hit the

    market. These primitive units where gigantic and enormously expensive,

    standing 5 1/2 feet tall, and costing about $5000 each. The magnetron

    tube had to be water-cooled, so plumbing installations were also required.

    WHAT ARE MICROWAVES?

    Microwaves are a means of transferring energy through space.

    They are a form of electromagnetic energy , like light waves or radio

    waves, and occupy a part of the electromagnetic spectrum. Microwaves

    are used to relay longdistance telephone signals, television programs

    and computer information across the earth or to a satellite in space. They

    are used to detect speeding cars.

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    http://www.gallawa.com/microtech/magnetron.htmlhttp://www.gallawa.com/microtech/magnetron.html
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    Microwave is perhaps the most familiar as the energy source for

    cooking food.

    Electromagnetic radiation exists in a range of frequencies called the

    electromagnetic spectrum. Each frequency has a specific wavelength and

    as the frequency decreases, the actual length of the wave gets longer.

    As the frequency of the wave changes, their property also undergoes a

    change. For instance, as the frequency increases to 1000 MHz [1000 x

    10], you get infrared heat. As the frequency increases further, we get

    visible light, up to [(4237320 x (10) MHz.

    The frequency of domestic microwave ovens is standardized at 2450

    MHz, which is equal to 245 x 10.

    PROPERTIES OF A MICROWAVE AT FREQUENCY OF 2450 MHz:

    Can pass through anything but metal.

    Gets reflected by metal.

    Acts on moisture and fats [vibration @ (2450 x 10) ] times per second.

    HOW A MICROWAVE OVEN WORKS.

    To put it briefly, microwaves penetrate food directly raising its

    temperature and resulting in its cooking.

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    The cooking takes place through the process of reversal of polarity in the

    following manner :

    All wave energy changes polarity from positive to negative with each

    cycle of the wave. In microwaves, these polarity changes happen millions

    of time every second.

    Food molecules especially the molecules of water have a positive and

    negative end, in the same way a bar magnet has a north pole and a south

    pole.

    When microwaves at the right frequency bombard food, they cause the

    polar molecules to vibrate at the same frequency, millions of times a

    second. All this agitation at the molecular level creates friction, which

    heats up the food.

    The microwaves pass through the container [which is generally of glass,

    plastic or paper] and, therefore, only the food is heated.

    The microwaves are:-

    Generated by the magnetron,

    Transmitted down the waveguide,

    Reflected off the wall of the microwave ovens cavity, and

    Disturbed evenly in the oven cavity to cook the food.

    METHODS OF COOKING.

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    Transfer of energy to heat food can occur in three different ways :

    Conduction :

    Conduction occurs when there is a direct contact with a heat source such

    as a burner on a gas or electric stove. As the stoves burner gets hot, the

    heat is transferred through the pan sitting on the burner via conductor and

    then transferred through to the food inside the pan.

    Convection :

    Convection occurs when rising [of fan assisted ] hot air or steam

    circulates in an enclosed area such as a gas or electric oven. When the air

    surrounding the food heats up, this heat is passed first to the foods outer

    layers and then progressively to its inner ones.

    Radiation :

    Radiation occurs when electromagnetic heat waves flow through space.

    In this case, heating is caused mainly by the vibration of water molecules

    in the food. So, microwave ovens produce heat directly inside the food,

    heating is more evenly and more quickly than conventional ovens.

    Microwaves ovens cook food by radiation and by conduction and in

    some brands of microwaves by convection too. Once in the ovens

    cavity, microwaves actually penetrate the food upto a depth of 1.5 inch,

    depending on the density of the food and the amount of the food that is in

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    the oven. The centre of thicker foods may not be affected by the radiation

    and therefore only become cooked as the heat conducts to the centre.

    Broadly, a microwave oven works as follows:

    A vacuum tube called magnetron is electrically activated and generates

    these microwaves with a frequency of 2450 megacycles per second or

    2.45 GHz.

    The microwaves are directed through waveguides to be effectively

    distributed in the oven cavity. The microwaves then reflect off the walls

    of the ovens interior and are absorbed by molecules in the food.

    Because each wave has a positive and negative component, the molecules

    in the food are back and forth at the rate of the microwave frequency.

    Conventional Vs. Microwave Cooking

    Conventional Microwave

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    Layer-by-layer, outside to inside

    Spoils the kitchen wall withsprinkling of oil

    Separate utensils for cooking &serving

    Same utensils can be used to cook &serve

    Cooking through Oil

    More usage of Oil/Ghee

    More time consuming & tiring Less time consuming & enjoyable

    Less Oily food

    Cooking through Water molecules

    Even cooking, inside to outside

    Non- messy , more neat & cleankitchen walls

    Nutritional Value of the food is lostdue to longer cooking

    Nutritional Value of the food ispreserved

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    What all can be done in a MWO?

    Cooking

    Warming/ Simmering

    Re-heating

    Roasting

    Baking

    Defrosting

    QUALITY OF COOKING

    Uniform and even cooking.

    Research has proved that it preserves 90% of nutrients and vitamins, and

    retained foods natural colour and flavor all contributing to a healthy

    meal.

    All frozen food can be quickly and effectively thawed before cooking so

    that the taste, colour and flavor are not lost while cooking.

    Cooking is optimum accurate due to precise control over duration and

    temperature.

    SAVING OF TIME

    Faster cooking.

    You dont have to spent time in front of the oven stirring the food and

    adjusting the flame, thus saving a lot of cooking time and your own time.

    Faster cooking means saving on electricity bills.

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    LG MICRO OVEN MODELS

    LG Microwave Oven Convection

    MC-7840UL

    Capacity : 28LtrElectricalInput(Microwave) :1350WCavity type : StainlessSteel

    Price : Rs. 16,090

    LG Microwave Oven Convection

    MC-7880PSR

    Capacity : 28LtrElectricalInput(Microwave) :1350WCavity type : StainlessSteel

    Price : Rs. 13,590

    LG Microwave Oven Convection

    MC-8041PVR

    Capacity : 30LtrElectricalInput(Microwave) :1350WCavity type : StainlessSteel

    Price : Rs. 16,090

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    LG Microwave Oven Convection

    MC-8081ALR

    Capacity : 30LtrElectricalInput(Microwave) :1350WCavity type : Stainless

    SteelPrice : Rs. 15,690

    LG Microwave Oven Convection

    MC-8082PRR

    Capacity : 30LtrElectricalInput(Microwave) :1350WCavity type : Stainless

    SteelPrice : Rs. 16,490

    LG Microwave Oven Convection

    MC-8091HLQ

    Capacity : 30LtrElectricalInput(Microwave) :1350WCavity type : Stainless

    SteelPrice : Rs. 17,290

    LG Microwave Oven Convection

    MC-8188HRC

    Capacity : 31LtrElectricalInput(Microwave) :1500WCavity type : StainlessSteel

    Price : Rs. 20,490

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    LG Microwave Oven Convection

    MC-8040NSR

    Capacity : 30LtrElectricalInput(Microwave) :1350WCavity type : Stainless

    SteelPrice : Rs. 13,990

    LG Microwave Oven Convection

    MC 8080PRR

    Capacity : 30LtrElectricalInput(Microwave) :900WCavity type : StainlessSteel

    Price :Rs. 16,090

    LG Microwave Oven Convection

    MC 8088NRH

    Capacity : 30LtrElectricalInput(Microwave) :900WCavity type : StainlessSteel

    Price : Rs. 16,090

    LG Microwave Oven Convection

    MC 8089TLR

    Capacity :30Ltr

    ElectricalInput(Microwave) :900WCavity type : StainlessSteel

    Price : Rs. 16,090

    LG Microwave Oven Convection

    MC 8087ABR

    Capacity : 30LtrElectricalInput(Microwave) :900W

    Cavity type : StainlessSteelPrice : Rs. 16,090

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    Latest Microwave Oven Models Launched By LG

    Specification and Price of LGMicrowave Oven MC-7880PSR ConvectionModel

    Key Features:LG microwaveoven model MC-7880PSR is ofconvection type, with a capacity of28Liters. It has a stainless steelcavity which ensures betterreflection and uniform heatinginside the cavity. It is easier toclean and unlike coated materialcavity there is no peel off problem.

    The light disinfect feature in LGmicrowave oven model MC-7880PSR helps in cleaning thecavity clean and keeping ithygienic and germ-free at thetouch of a button.

    Price and Specification of LGMicrowave Oven MH-6589DRL Grill Model

    This article focuses its discussionon MH-6589DRL LG MicrowaveOven price and its detailedspecifications.

    Key Features:LG microwaveoven model MH-6589DRL is ofgrill type, with a capacity of23Liters. It has a humidity sensorwhich detects the level of humidityinside the microwave oven andadjusts the cooking time and

    weight accordingly. The lightdisinfect feature in LG microwaveoven model MH-6589DRL helpsin cleaning the cavity clean andkeeping it hygienic and germ-freeat the touch of a button. This

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    model comes with a steam chefwhich is especially designed forlow calorie cooking. It is alsoequipped with 52 auto cook menu.The next step guide will help youin locating the next button that hasto be pressed.

    LG MP-9889FCR Solar DomMicrowave Oven

    Key Features:LG MP-9889FCRmicrowave oven is of Solar Domtype, with a capacity of 38Liters. Ithas a stainless steel cavity whichensures better reflection anduniform heating inside the cavity.

    It is easier to clean and unlikecoated material cavity there is no

    peel off problem. The lightdisinfect feature helps in cleaningthe cavity clean

    LG MS-2348BS SoloMicrowave Oven

    Key Features:LG MS-2348BSmicrowave oven is of solo type,with a capacity of 23Liters. It uses

    the Intellowave technology whichenables faster and healthiercooking by circulatingmicrowaves. It comes with 32 autocook menu. The anti bacteriacavity

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    Intellowave

    Technology

    This unique technology has arevolutionary wave guide thattransforms ordinary waves into3Dimentional hot pockets.

    This ensures that food iscooked from all sidesleading to even anduniform cooking.

    LG Competition

    Bigger TurnTable

    LG MWO wider turntable. Enables you to place abigger dish or two dishesat the same time .

    Round Cavity

    More Usable Space,Easier to cleanSpeed Cooking

    Fast Cook

    5 PowerLevels

    Child Lock

    Feature Benefit

    At one touch, the MWO

    operates at 900 W level at30 sec pulses.

    Helps in reheating purposes.

    The output Power Levelscan be adjusted at 100%,80%, 60%,40% and 20%according to the food beingcooked

    Utilizes optimum power andhelps in saving the powerbeing consumed.

    Once the child lock is

    pressed, the panel cannotbe tampered with.

    Protects the panel from being

    tampered by the child.

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    Select programmed Indianrecipes. One touchoperation.

    One can feed the settingsof the favorite recipesonce.

    Indicates the caloriesdepending on the weightand type of food cooked.

    Indian AutoCook

    Faster and easier cooking ofday today recipes.

    DietCook

    Enables the monitoring ofcalorie intake.

    IntelloCustom

    Cook

    Helps easier cooking offood cooked everyday.The cavity is round fromthe inside and not squarelike other cavities

    CombinationCooking

    High RackLow Rack

    Combination cooking optionslike M+G or M+C, dependingon the type of food beingcooked.

    Adjustable Tray heights withhigh and low tray stands. Better Grilling of food likePizzas etc where the crusthas to be crisp.

    Better cooking of the fooddue to the combinationoptions.

    AutoBakePreset Programs for baking

    Pizza, Baked Vegetables,Cake and Cookies

    One touch option for baking.

    Just need to enter weights.

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    Chapter 6Data Analysis & Interpretation

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    Data Analysis & Interpretation

    Introduction

    The actual fact seen in the process of executing this project was a

    social, behavioral, psychographic & economic segmented reason.

    The area, under persistent development is really lagging behind in

    its social & behavioral potentials. A lay back attitude or perhaps a life not

    harnessed by restricted Professionalism has been a curse to bridge such

    gap, a venedicta aroused with the psychological variances of people. The

    mass may seem to adapt changes, yet the nominal value of their thoughts

    & ideologies if given a priority also would be seen that the social statusmay have improvised but the behavioral patterns would not coordinate

    with the rest of parameters.

    Survey Method

    a) Personal Interviewing

    The entire project has been divided into five different parts :

    Analysis for those who have microwave ovens.

    Analysis for those who dont have microwave ovens.

    Analysis for those who have used LG brand.

    Analysis for the dealers.

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    Analysis for those who dont have microwave ovens

    Q1. Are you aware of the concept & benefits of Microwave ovens?

    OBJECTIVE:

    Thorough this question an attempt was made to gauge the awareness

    level of Microwave ovens among respondents of different various

    categories.

    ANALYSIS :

    YES NO

    85% 17%

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    Q2. How did you come to know about Microwave Ovens for the first

    time?

    OBJECTIVE:

    Through this question an attempt was made to find out, which is the most

    effective media for crating awareness of Microwave ovens?

    ANALYSIS:

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    Television. 16%

    Friends & Relatives. 23%Exhibitions & MWO Demo. 31%

    Newspapers. 30%

    Negative. 0%

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    It is seen & proved that a visual display procures 16 % in influencing a

    brain work in deciding factors. What seems interesting sells exciting

    and hence electronic media plays vitally in psycho type in inclining an

    individual towards any product.

    The 23% friends and relatives concerns to a great extent as they are also

    partial percentage of media who disburse & distribute their views.

    Nevertheless, a nearest friend on the psychology that he would not

    misguide his friend, would also mould the former psychology to be a part

    of the same brand as the later.

    Exhibitions & newspapers actually also helps in building mental

    brainwork in decisions making ability. An exhibition exhilarates a

    circumstantial camp that may or may not linger for a long time. Hence,

    exhibitions live MWO Demo, under any circumstances play in decision

    making factors at initial glance.

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    Q3. Which is the criteria for why should you go for a microwave oven?

    OBJECTIVE:

    By asking this question an attempt was made to find out which is the

    most instigating factor, for why should one go for a Microwave Oven.

    ANALYSIS:

    Time saving. 52%

    Healthy method of cooking. 18%

    Compact kitchen utility. 9%Energy saving. 9%

    Want. 6%

    Necessity. 6%

    ANALYSIS:

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    Health consciousness is the prime time reason why an individual invests

    money on anything. Health reasons are as vital as a persons question of

    being healthy would mean, he promotes more that on using such of a

    brand, and he is still healthy.

    But a major percentage (52%) said about time saving as this is a key

    factor in todays cat & mice run scenario. Everyone running in todays

    world is whip lashed by an invisible demon, and that too, after money.

    For that reason, Microwave Oven may have helped them easy cooking &

    time saving.

    Though a nominal percentage spoke about necessity, the same crowd

    spoke about as a status symbol. This means that this percentage is

    actually unaware of the true benefits of such products.

    A kitchen in concept or energy saving would be talked about only on the

    statistics when one owns a product only then he would come to know

    about what is important.

    Time Saving or Healthy Cooking, I believe both. Any strategy, which

    would mould the aforementioned category into one, more than 60%

    comes with LG Microwave Ovens.

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    Q4. A microwave oven is of more utility to the children category as Well

    as for working mothers?

    OBJECTIVE:

    Through this question an attempt was made to check whether people

    think that the need of Microwave oven is only for children category and

    working mothers.

    ANALYSIS:

    Agree 74 %

    Disagree. 26 %

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    Qs5. If you think of even buying a microwave oven what brand should

    you think you buy one?

    OBJECTIVE:

    Through this question, an attempt was made to check the brand

    inclination level, while one decides of purchasing a Microwave oven.

    ANALYSIS:

    52% spoke of LG, as Brand Pull theory run in full in this brand. As, we

    can see that mostly people are interested to buy LGs MWO, not just by

    looking into the brand but the USPs and invincible technology used in

    LG MWOs ,it can also be seen that because of continuous promotions

    and awareness made , modules or any other factors must have made LG

    hard core consumer loyalist.

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    52%

    3%

    24%

    11%

    0%0%0% 5%0% 5%

    LG

    IFB

    SAMSUNG

    ELECTROLUX

    GODREJ

    TCL

    KENSTAR

    ONIDA

    BAJAJ

    WHIRLPOOL

    IF YOU THINK OF EVEN BUYING A MICROWAVE OVEN WHAT BRAND SHOULD YOU THINK

    YOU BUY ONE

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    Qs6. Which brand of Microwave oven you currently own?

    OBJECTIVE:

    Through this question we tried to find out, which brand of Microwaveoven is mostly owned by people. An attempt was also made to check ifthere is any brand pulling while purchasing a microwave oven.

    ANALYSIS:

    LG 18 Kenstar 1

    IFB 0 Onida 3

    Samsung 8 Bajaj 0

    Electrolux 6 Whirlpool 0

    Godrej 0 Others 2

    TCL 1

    0%

    21%

    15%

    45%

    0%

    5%0%

    8%

    0%

    3%

    3%

    LG

    IFB

    SAMSUNG

    ELECTROLUX

    GODREJ

    TCL

    KENSTAR

    ONIDA

    BAJAJ

    WHIRLPOOL

    OTHERS

    WHICH BRAND OF MICROWAVE OVEN YOU CURRENTLY OWN

    c

    From the above diagram, it is clearly seen that LG with 45% people

    owing its Microwave oven is leading the market and then comes

    Samsung 21%, Electrolux with 15 % & others 34% respectively

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    Q8. The new models could be made handier on table top on Kitchens?

    OBJECTIVE:

    Through this question an attempt was made to check, whether people

    want certain changes in the model and design of Microwave ovens.

    ANALYSIS:

    YES 96%

    NO 4%

    96%

    4%

    0%

    20%

    40%

    60%

    80%

    100%

    YES NO

    96% expects of a fine model , technically perfect & steel body , whichdoes not give the model a posh look , consumers spoke of a fiber coated

    body which would seem shock resistant , though steel bodies are also thesame , but even then , a fibre body looks more safe as they seem to be

    bad conductors of electricity. Few of them even spoke of an elegantlysleek remake of current models. Expectations rise high in consumermarket , but if a synopsis is taken out of all anticipations perhaps amakeover could be done on such a model and a new launch with a newlook may create an added hype in consumer behavioral policies.

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    Q9. Are you satisfied with the after sales service?

    OBJECTIVE:

    This is to enquire that, whether people are satisfied with the after sales

    service provided by their respective Microwave oven manufacturer.

    ANALYSIS:

    YES 70%

    NO 30%

    The after sales service is a sector which is not monitored well in most ofthe organizations. Media hype, promotions, advertisements and all othertall claims rendered and a product is sold. But what after the product issold and reached home of that person, who was tapped & motivated so

    badly that at one point of time, it was compulsion which made the dealcrack.

    No one even bother to call back and ask him whether he is comfortablewith the product. His target is achieved on selling one unit & the storyended here according to the sales department.

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    Q10. What is the key reason of buying a microwave oven, if you happen

    to buy one?

    OBJECTIVE:

    Through this question, an attempt was made to see, which is the key

    reason, for why should one go for a Microwave Oven.

    ANALYSIS:

    Economicallyviable

    Time feasible Healthconcious

    Making an independentfamily in terms of cooking Total

    2 10 12 1 25

    8% 40% 48% 4% 100%

    8%

    40%

    48%

    4%

    0%

    10%

    20%

    30%

    40%

    50%

    ECONOMICALLY VIABLE

    TIME FEASIBLE

    HEALTH CONCIOUS

    MAKINGAN INDEPENDENT FAMILY IN TERMS OF COOKING

    48% spoke of health consciousness as it would help a person restrict hisdiet & simultaneously pamper his palate in a healthy way.

    40% (time feasible) who spoke about feasibility with respect to time

    is also one reason who boasts about their stringent work schedule , but itis also observed that these section also likes to be independent at theirkitchen outfit as well as health conscious. The whole mileage is wrappedto that slot who would diversify for buying a Microwave Oven forirrespective reasons , but the goal is one organized life.

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    Analysis for the dealers

    Qs1. Do you keep stock of LG products? (Yes/No)

    ANALYSIS:

    YES NO

    93% 7%

    7% penetrated to the issue of denying as they spoke of poor after sales

    services and hence, are scared to keep such products which may bring

    irritant customers in the long run.

    93% spoke about proud ambassador of the brand and they boast to be

    associated with the name.

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    Qs2. If Yes, What made you decide to join hands with LG?

    OBJECTIVE:

    This is to find out, which factors influence the dealers to join hands with

    LG.

    ANALYSIS:

    EASY ACCESSIBILITYTO THE MARKET

    BRAND

    Better Business Opportunities

    5 6 4

    31.25 37.5 25

    31.25

    37.5

    25

    05

    1015

    2025

    3035

    40

    EASY

    ACCESSIBILITY TOTHE MARKET

    BRAND Better Business

    Oppurtunities

    Series2

    73% spoke of Brand and a negligible 27% spoke of Easy accessibility

    to the market. This shows that dealers carry Electrolux products because

    of its brand image. The brand image of LG is enhanced when it

    associated the Green Ion Door Cooling (i.e LG) with it. LG is having

    a very strong brand image in Indian market, so it obviously helped LG inbrand making strategy.

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    Qs3. Are you satisfied to carry LG products? (If Yes, Why) (If No, Why)

    OBJECTIVE:

    With this question, an attempt was made to find out, what are the

    instigating factors that made dealers to sell LG products.

    ANALYSIS :

    Pricing Updated productdesign

    Promotionalstrategies

    Suitableschemes

    14 2 5 816 16 16 16

    From the above diagram it is seen that, out of 16 dealers interviewed, 14

    are happy with pricing and then comes suitable schemes & promotional

    strategies updated product design.

    14

    2

    5

    8

    0

    2

    4

    6

    8

    10

    12

    14

    PRICING UPDATED

    PRODUCT

    DESIGN

    PROMOTIONAL

    STRATEGIES

    SUITABLE

    SCHEMES

    PRICING

    UPDATED

    PRODUCT DESIGN

    PROMOTIONAL

    STRATEGIES

    SUITABLE

    SCHEMES

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    Chapter - 7

    Findings, Suggestions & Conclusion

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    Findings, Suggestions and Conclusion

    Findings

    A direct analysis proves that a great percentage of people are aware of

    microwave ovens but peoples perception about this product is not to

    the expectation.

    It is found that newspapers & live MWO Demo as a medium of

    advertisement, friends &relatives & promotion procures a higher

    percentage in influencing a brain work in deciding factors.

    It is seen that a higher percentage of people prefer cooking in

    microwave ovens as it cooks food in quick span of time (time saving)

    and retains the nutritional value of food (healthy method of

    cooking).

    It is also seen that people from higher income group and in the age

    group of 26-40 years (mostly working mother category) prefer

    cooking in microwave ovens.

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    It is also found that people are still very reluctant to accept modernism

    and like to continue with the conventional methodology of cooking.

    Among various product category of LG, CTVs, Washing Machines,

    Refrigerators and Air Conditioners are more popular among

    consumers and dealers.

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    Suggestions

    Although people are aware of microwave ovens but their perception

    level about this product is still not satisfactory. So to improve this

    perception level, more live demonstrations of the products must be

    arranged.

    Company should also take care of the cost, reducing which would

    build upward graph of acceptance of product.

    It is seen that LG as a brand is popular for its CTVs, Washing

    Machines, Refrigerators and then ACs, so LG should spend more to

    increase the popularity of its other range of products (i.e. LCDs ,

    Front Load Washing Machines, DVDs & MWOs too).

    After Sales Service should be improved to a large extent.

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    Conclusion

    The overall study & observation done, findings & other hypothetical

    issues as well reveals a message --- message of development, more

    development would energize, more awareness.

    More awareness should also promote, more acquaintance with the

    product, more acquaintance should lead to more presence of this product.

    The word "More ", redefined here equates to mass & proportionate to the

    jury, who says that LG as a whole has lit the market & added to the

    maturity of mindset that accepts it.

    Nevertheless contradictions may occur, and has occurred also.

    Coalitions, actually occurs with differentiated ideologies, two different

    ideologies fighting to come down to a single conclusion.

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    History evades that such conclusions do not occur. But with such

    conflicts, erupts newer brain wares, potential thoughts, minds that

    credentials updates & thereby a market is reborn, which drapes along

    with veils of augmented sales strategies that resulted to a wide product

    acceptance. Product presence everywhere whispers tales of product

    success. It's just that a mind which do not do different things, but does a

    strategy differently.

    A good percentage of people accepted the brand & many users accepted

    LG Micro Wave Oven.

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    42% spoke of likely attitude as they would recommend the brand and a

    great % spoke of a satisfied mind of after sales service with 25 %

    speaking its negatives.

    One thing which could be exclaimed about is that irrespective of such

    diversities, many supported the brand "LG "' and also the product

    "Microwave Oven ". But its differentiated rating to acceptance would

    have a different story to say altogether.

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    Annexure

    Questionnaires

    Bibliography

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    QUESTIONNAIRES

    Introducing myself as a student of Govt. First Grade College,

    Shivamogga, initiating a part of the course curriculum of BBM, I am

    executing an analytical research on Awareness and concept of

    Microwave Oven and consumer behavior in respect of LG brand. I

    would put forth a please to spare a few moments of your precious

    schedule in answering some queries pertinent to my analysis. I assure and

    further indemnify you of strict confidentiality and the valuable dotes of

    yours would be used only for such emphatic academic analyses. I would

    express my sincere gratitude for the aid initiated by your good self in

    helping me acquiring accomplishment of my allotted research work.

    Yours

    Manohara .C

    Name : __________________________________________

    Address: _________________________________________

    Contact No:____________________

    1. Age group

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    Below 25 years

    26-40 years

    40 years and above

    2. Occupation

    Private Company

    Public company

    Govt. company

    Business

    Others

    3. Monthly Income

    Rs. 5,000 10,000

    Rs 11,000 - 20,000

    Rs 21,000 - 30,000

    Rs 30,000 above

    4. Are you aware of the concept & benefits of Microwave ovens?

    Yes No

    5. If yes, How did you come to know about microwave oven for the first

    time?

    Television

    Newspaper

    Magazine

    Friends, peers & relatives

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    10. Which brand of Microwave oven you currently own?

    LG

    SamsungElectrolux

    Godrej

    Kenstar

    Onida

    Bajaj

    Whirlpool

    Others

    11. Are you satisfied with the model and design of the Microwave Oven?Yes No

    If No, why _________________________________________

    12. Are you satisfied with the after sales service?

    Yes No

    13. What is the key reason of buying a microwave oven, if you happen to

    buy one?

    Economically viable

    Time feasible

    Health conscious

    Making an independent family in terms of cooking

    14. Which product category of LG are you using at present?

    Refrigerator

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    Air Conditioner

    Washing Machine

    Micro Wave Oven

    15. What is your mode of purchase?

    Cash

    Installment basis

    16. Do you keep stock of LG products?

    Yes No

    17. If Yes, What made you decide to join hands with LG?

    Brand

    Easy accessibility to the market

    18. If any Suggestions _____________________________________

    Date: Signature

    Place

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    BIBLIOGRAPHY

    Marketing Research ---By: Naresh K Malhotra

    Marketing Management ---By: Prof. Philip Kotler.

    The Economics Times website.

    Journal on product information --- Microwave Oven

    LGs Website

    www.lg.com/in

    www.microwave_ovens.com

    http://www.lg.com/inhttp://www.lg.com/in