Project of LG (1)

7/31/2019 Project of LG (1)

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This is to certify that the Project entitled, is a bonafide work done by Mr.

kusharg Rohatgi in partial fulfillment of BBA examination and has been

carried out under my direct supervision and guidance. This report or a similar

report on the topic has not been submitted for any other examination and does

not form part of any other course undergone by the candidate

Date: Signature of Guide


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DECLARATION

I, hereby declare that the project work entitled TO ANALYSE THE

EFFECTIVENESS OF MARKETING STRATEGIES OF LG is my

original work submitted in partial fulfillment of BACHELOR OF BUSINESS

ADMINISTRATION from GGSIP University, and not submitted to any other

institute or university for the award of any other degree.


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ACKNOWLEDGEMENT

I would like to give my heart-felt sincere-most thanks to our guides, teachers

and all lab faculty members who always stood as a guiding spirit behind me and

gave their invaluable supervision, guidance and support without which this

project wouldnt have reached its final destination.

Its a sheer pleasure for me to state with candidly that this entire project is a

heartily attempt to reach maximum accuracy, with the help of my Professor Ms.

SUNMEET KAUR.

Last but not least I would like to pleasure a word of appreciation to my family

and friends who supported and helped me to make this project a success.

Kusharg Rohatgi


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TABLE OF CONTENT

TOPIC PAGE NO.

CERTIFICATE 5-7 OBJECTIVES OF THE STUDY 8 RESEARCH METHODOLOGY 9-14 RESEARCH DESIGN 9-10 SAMPLE SIZE 10-11 DATA COLLECTION 12-14 LITERATURE REVIEW 14-17 COMPANY PROFILE 18-38 DATA ANALYSIS 39-59 LIMITAION OF STUDY 60 FINDING AND RECOMMENTATION 61 BIBLIOGRAPHY 6210. ANNEXURE 63-67


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CERTIFICATE

Advertisement, which is a crux of any market economy, plays a pivotal role in the economicprogress of a nation. Advertising is indeed the only direct method, which helps to reachmasses of potential buyers. Advertising, being dynamic, changes with changing methods ofdistribution and consumption. Advertisements have become the part of life for everyone as alistener through some media or other. In the present era of information explosion and mediainfluence, these advertisements play a major role in changing the settled perception orthinking, which is otherwise called attitude, of the consumer and also the consumption

pattern of the society in general. Thus, the impact lead to cultural and social changes to agreat extent. Under this situation efficiency of the manufacturers, marketers and advertisers istested in churning out advertisements, matching the expectation of the consumers, which maygradually bring about desired attitudinal changes in them.


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Need for Advertisement

Advertisement plays a major role in every walk of life. The divergent sections of the society

may need advertisement for a variety of reason from information sharing to consumerpersuasion to decision making. The paramount reason which may necessitate the use ofadvertisements may be:

Advertising is a way of communicating information to the consumer, which enableshim or her to compare and choose from the products and services available.Advertisement enables consumer to exercise their right of free choice.

Advertising is the most economical means by which a manufacturer or an institutionalbody can communicate to an audience whether to sell a product or promote a cause of

social welfare such as a civic drive or an immunization programme.

Advertising, being a necessary means of communication is an inseparable part ofspeech. Any restriction on the right to recommended legitimate goods, services orideas in public will diminish the fundamental right of the freedom of speech.

Advertising can help in improving the economies of developing countries.Advertising stimulates increases in production and consequently generates moreemployment. It can help stabilize prices and thus lead to wider distribution and greateravailability of goods and services.

Advertising is an essential and integral to the marketing system. It is sometimesmaintained that the marketing system is nothing but the consequent of a countryssocial and economic growth. The fact is that advertising is the main key tool used to acountrys growth.

The basic concept based on Telling and Selling. One of the 5 Ms of an advertisingprogramme is Measurement. It denotes how should the results be evaluated. Measurementcan at best be done around an audience/ customers ability to recognize and recall the

advertisement and the total impact formed them by the overall image of the company thatfinally influence the purchase behavior of the customer.

The present scenario of the FMCG has witnessed many a great advertisements in its field.The major players hire top advertising agencies to create memorable advertisements for theirbrands to enhance the sale.

Thus the response of the customers whether existing users on prospective about the impact ofthese advertisements is momentous to help the firms decide how the advertising is benefitingtheir brand and in what proportions and also about the future strategies.


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OBJECTIVES OF THE STUDY

Primary: -

To analyze the Advertising Strategy of LG.Secondary: -

To know the impact of advertisement on consumer attitude. To know the perception of the consumer towards LGs advertising. To know brand recall of LG. To analyze the effectiveness of present advertising strategies of LG.


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RESEARCH METHODOLOGY

Marketing research is the function, which links the consumer, customer and public to themarketer through information.

Information used to identified and define marketing opportunities and problems: generate,refine and evaluate marketing action, monitor marketing performance, and improveunderstanding of market as a process.

Marketing research specifies the information required to address these issues, design the

method for collecting information, manages and implements the data collection process,

analyses the results, and communication the finding and their implications.

The marketing research process involves a number of interrelated activities, which overlapand do not rigidly follow a particular sequence--

Research Design

Primary data

Data Collection

RESEARCH DESIGN

A research design specifies the methods and procedures for conducting a particular study.

Research design is the plan, structure and strategy of investigation conceived so as to obtain

answers to research questions and to control variance.


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Types of Research Design

Research design have been classified in different ways, such as

Exploratory Research Design Descriptive Research Design Casual research Design

Descriptive Research Design:-

Descriptive research studies are those studies which are concerned with described thecharacteristics of particular individual. In descriptive as well as in diagnostic studies, theresearcher must find be able to definite clearly, what he wants to measure and must findadequate methods for measuring it along with a clear cut definition of population he wantsto study. Since the aim is to obtain complete and accurate information in the said studies, theprocedure to be used must be carefully planned. The research design must make enoughprovision for protection against bias and must maximize reliability, with due concern for theeconomical completion of the research study.

I have choosen descriptive research descriptive research design which is well structured. The

objectives of such is to answer the who, what, when and how of the subject under

investigation.

Descriptive studies can be divided in to two broad categories cross sectional and longitudinal.

So, here I have choose a cross sectional study which is concerned with a sample of elements

from a given population. Cross sectional studies are two types-

Field Studies Survey

I have taken survey research because a major strength of survey research is its wide scope.

Detailed information can be obtained from a sample of a large population. Besides, it is

obvious that a sample survey needs less time than a census inquiry.


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-

Primary Data:-

Primary data can be collected through questionnaire. The questionnaire can be classified in tofour main types---

Structured non disguised questionnaire Structured disguised questionnaire Non-structured non disguised questionnaire Non-structured disguised questionnaire

For my market study, I have selected structured non disguised questionnaire because my

questionnaire is well structured, listing of questions are in a prearranged order and where the

object of enquiry is revealed to the respondents.

To making a well structured questionnaire, we have adopted three type of questions-

Open ended questions Dichotomous questions Multiple choice questions

These types of questions are easy to understand and easy to give required answers.

Secondary data:-

Secondary data means data that are already available i.e. they refer the data which have

already been collected and analyzed by someone else. When the researcher utilizes secondary

data, than he has to look into various sources from where he can obtain them, in this case he

is certainly not confronted with the problems that are usually associated with the collection of

original data. Secondary data may either be published data or unpublished data. Usually

published data are available in: (a) Various publications of the central, state and local

government; (b) Various publications of foreign government or of international bodies and

their subsidiary organization; (c) Technical and trade journals; (d) books, magazines and

newspapers; (e) Reports and publications of various associations connected with business and

industry, stock exchanges, etc.; (f) Reports prepared by research scholars, universities,

economists etc.; (g) public records and statistics, historical documents and other source of

published information.


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The source of unpublished data are many; they may be found in diaries, letters, unpublished

biographies and autobiographies and also may be available with scholars and research

workers, trade associations, labour bureaus and other public/private individuals and

organization.

Measurement Techniques

In the questionnaire most of the questions asked based on attitude rating scale, which

consisted rating scales and composite scales.

Tools of Analysis

The role of statistics in research is to function as tool in designing research analyzing its dateand drawing conclusions there from most research studies result in a large volume of rawdata. Which must be suitable reduced so that the same can be read easily and can be used forfurther analysis.

Descriptive statistics concern the development of certain indices from the raw data where as

inferential statistics concern with the process of generalization.


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LITERATURE REVIEW

In this section, we will review the 60 identified studies and analyze their research context,their main results, theoretical bases, the research methods used as well as the analyticaltechniques employed. Examined organizational levels and organizational types are twoelements of the research context. As the core of our literature review, the results sectioncompiles nine factors that influence strategy implementation success, as well as severalframeworks or models that aggregate or relate relevant factors to each other. We then brieflydiscuss the theoretical bases of the reviewed studies. Finally, the research methods andanalytical techniques will be reviewed to see which methods are still underutilized in thecontext of strategy implementation.

A key step in the exploration of potential strategies for Cupertino is a thorough review of thecurrently available research on retail redevelopment, in particular the redevelopment ofenclosed regional shopping malls into mixed-use centers. The literature review that followsseeks to provide insight into the current trends and best practices in shopping mallredevelopment.

The literature review begins with an exploration of the growing problem of enclosed regionalmall decline. The main themes and debates in the field of shopping center redevelopment arethen identified and discussed. Reasons for decline are explored, followed by best practices inredevelopment. The most common practices discussed include the strategies of mixed-use

development and place-making, the necessity of public involvement, and the need for atailored market analysis. The major gaps in this field of research are also identified anddiscussed. The literature supports the development of a hypothesis regarding the mosteffective redevelopment strategies for the area. These include mixed-use development withpedestrian orientation, the certificate of housing, and other land use and urban designimprovements. The methods used in the reviewed literature are next examined to providesupport for the proposed methods of this study. Finally, the potential sources to support andcontradict the findings of this study are briefly analyzed.

Definitions of Strategy Implementation

There is little controversy regarding the labeling of the strategy implementation topic in thesixty articles that we have reviewed. Sashittal & Wildman have pointed out that some termssynonymous with implementation, such as execution, and actualization of goals areoften employed in the management literature, but are not frequently used by managersthemselves.

As far as the terms execution or executing in the strategy context are concerned, most ofthe 60 articles in our literature review, use strategy implementation as a key word or as a partof the title and only very few use the term strategy execution. There are no articlesdifferentiating strategy implementation from strategy execution in the 60 articles that we have


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reviewed, while some authors take strategy execution as an exact synonym of strategyimplementation. Hrebiniak notes for example: Formulating strategy is difficult. Makingstrategy work executing or implementing it throughout the organization is even moredifficult. Thompson & Strickland have stressed that the strategy-implementing / strategy-executing task is the most complicated and time-consuming part of strategic management.

Consequently, we will not distinguish strategy implementation from execution. We will usethe former term as the descriptive domain label, as it is more widely used in the relevantliterature.

Strategy formulation

It is clear that a poor or vague strategy can limit implementation efforts dramatically. Good

execution cannot overcome the shortcomings of a bad strategy or a poor strategic planningeffort.

Several studies mention the fact that the kind of strategy that is developed and the actualprocess of strategy formulation, namely, how a strategy is developed will influence the effectof implementation. Alexander believes that the need to start with a formulated strategy thatinvolves a good idea or concept is mentioned most often in helping promote successfulimplementation. As Allio notes, good implementation naturally starts with good strategicinput: the soup is only as good as the ingredients.

Whether a strategy itself is consistent and fitting or not is a key question for successfulstrategy implementation, but even a consistent strategy cannot be all things to all people. Bantsuggests that particular product/market strategies are effective at achieving particularperformance goals to the exclusion of others. One of his conclusions is that synergiesbetween strategy types and implementation 12 capabilities exist and should be exploited.


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Relationships among different units/departments and different

strategy levels

Business unit autonomy, sharing programs and synergies across SBUs, as well as control andreward systems. In addition, functional competencies, allocation of resources, decision-making participation and influence, inter-functional conflict and coordination may havevastly different effects on the implementation of 13 different kinds of strategies. Walker andRuekert also assume that decision-making and coordination structures in the marketingdepartment, and marketing policies and programs within the business unit, affect theperformance of different business strategies in different ways.

After all, marketing is meant to enhance the efficiency of an exchange, solve the problem in

an exchange and increase frequency of an exchange .a simple example can be to find out thereasons why a product with otherwise market demanded quality is unpopular.

THE MOST EXCHANGE RELATIONSHIPS


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Executors

Executors are comprised of top management, middle management, lower management and

non-management. Effectiveness of strategy implementation is, at least in part, affected by the

quality of people involved in the process. Here, quality refers to skills, attitudes, capabilities,

experiences and other characteristics of people required by a specific task or position.

Viseras, Baines, and Sweeney group 36 key success factors into three research categories:

people, organization, systems in the manufacturing environment. Their intriguing findings

indicate that strategy implementation success depends crucially on the human or people side

of project management, and less on organization and systems related factors. Similarly,

Harrington finds that a higher level in total organizational involvement during strategy

implementation had positive effects on the level of implementation success, firm profits and

overall firm success. Next to these overall findings regarding the who of strategyimplementation, we will now review the individual groups of strategy executors at different

hierarchical levels.


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COMPANYPROFILE


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HISTORY OF LG WORLD

LG Electronics was established in 1958 as Gold star Company Ltd. And has been trendsetterin the electronics industry ever since. The corporate name was changed to LG Electronics in1995 as of an effort to make the company a major player in the world market.

Gold star brand product sale in 1996 came to US $ 9 billion, which ranked one of the t opelectronics industry in the world. LG is known by consumers in more than 171 countries foroffering products that deliver ultimate satisfaction.

Along with the new corporate mission, LG electronics has been reborn. The organizationremains youthful and vibrant. Building a better future for customers is the top priority and thecompany is going top gear to make the Better Future a reality.

The management philosophy-

Great Company, Great people Where by only great people can create a great company, andpursue two growth strategies involving Fast Innovation and Fast Growth. Likewise, weseek to secure three core capabilities: Product Leadership, Market Leadership, and Peoplecentered Leadership. The products manufactured internationally cover multimedia players,video/Audio products, Home Appliances, Information Systems products, CommunicationDevices, Display products, Magnetic Recording Media and Electric/Electronics parts andcomponents. Heavy investments are being made in the next generation and environmentfriendly products.


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LG (The Global Company)

LG India the Indian wing of the South Korean chaebol formally known as Lucky Gold star.LG Electronics India Ltd. (LGEIL) is the wholly owned subsidiary of LG Electronics andstarted operation in its current Avatar in Delhi in May 97 and spread itself across thecountry within months. Company launched the entire product profile under the LG brandname, which the company had decided to change its previous brand GOLD STAR aroundthe World.

To day in a short span of the 4 years, LG has twenty models of colour televisions rangingfrom 14 inches to 60 inches; 15 models of large capacity refrigerators ranging from 175 litresto 890 litres; 9 models of washing machines ranging from 5.5 kgs to 10 kgs; 12 models of airconditioners; 45 models of microwave ovens; 2 models v/c; 11 models of monitor along with

power entertainment devices i.e. audio CD recorder, MP3 player and DVD player, LCDprojector, and have subsequently launched the same all India.

In the first phase of Investment from 1998 to 2001, the company had decided to invest US $146 million (Rs. 525 crores) to establish manufacturing facility at Greater Noida. This facilitywill be capable of churning out 8,00,000 CTVs 4,00,000 Refrigerators, 2,00,000 AudioSystems, 2,00,000 Washing Machines, 1,00,000 Air Conditioners etc.

In the second phase, from 2001 to 2005, LG Electronics Will invest $ 143 million to increaseits existing capabilities in finished products and capabilities to manufacture compressors, flytransformers, motors and deflection yokes.

After setting up of LG software center in Bangalore in 1996, LGEIL has also set up In houseR & D and HRD center in India not only to train the Indians employees but to serve foreignemployees of LG Electronics in South Asia and North Africa.

In five years from now LGEIL will become one of the largest industrial houses in India andstrive to become NO. 1 global company in India by 2010. LGEIL has already achieved aturnover of Rs. 904 crores in the year 1999 and Rs. 950 crores in 2000. The target turnoverfor LGEIL in the vision LEAP 2005 is Rs. 5,000 crores.

LG is already No. 1 in the sale of air conditioners in India and among the top priority in thesale of all other electronics.

In addition, LGs Golden Eye televisions offer the worlds largest most advanced picturesystem.

There are 18 branch offices covering whole of India in the following cities:-Ahmedabad, Bangalore, Hyderabad, Indore, Jaipur, Lucknow, Mumbai, New Delhi, Haryana,Patna & Pune. While corporate office is situated at Greater Noida, U.P. and Regd. Office atOkhla Industrial estate, New Delhi.


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VISION

To be No. 1 global Leader in the world by 2010.

LG electronics pursues its 21st century vision of becoming a true global digital leaderwho can make its customers worldwide happy through its innovative digital productsand services.

LG electronics sets its mid term and long term vision a new to rank among the top 3electronics, information and telecommunication firms in the world by 2010.

PHILOSOPHY

Compete in the International market with a Global Mindset. Maximize value for customers, employees and shareholders. Pursue the best in the class through management by principal. Contribute to the society through good corporate citizenship.

INITIATIVES

Redesign business portfolio. Develop new strategic business. Globalization. Acquire promising differentiate technology. Cultivate high Performing leader.


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LGs PERSPECTIVE

Korean firms which together account for the 5th largest foreign investment in India have

outperformed Japanese and Chinese firms.

LG echoes the sentiments of Korean president Roh Moo-Hyun. With a littlesupport from thegovernment in terms of fiscal incentives, we can increase our exports from India manifold.

For LG, India is one of its biggest global markets and therefore its strategies are much moreaggressive to ensure huge growth. LG India has done a creditable job of making it big in theconsumer durable market, roping in massive Rs. 5,500 crores in sales in the relatively shortspan of seven years. As a company we manufacture almost everything in consumer durableand electronics: colour televisions, refrigerators, washing machines, mobile phones and ITproducts like computer monitors.

Our new plant in Pune, in addition to our current manufacturing facility at Greater Noida,U.P. (on the outskirts of Delhi) will enable us to expand its consumer reach and ensure bettersupply chain management that would translate into a faster response time.

The new greenfield facility is a wholly owned subsidiary of LG Electronics India located atRanjangaon, 50 km from the city of Pune. Covering over 50 acres, the facility will bemanufacturing colour televisions, air conditioners, refrigerators, washing machines,microwave ovens and colour monitors by the end of 2005. the plant that involves aninvestment of Rs. 150 crores (4 32 million) till 2004 will commence operations now.

LG India will become the export hub for LG worldwide catering to the Middle East andAfrican markets. The company aims to touch an export turnover os USD 3 billion by 2010,which will contribute to 30 per cent of LGEILs turnover.

The contribution of mobile phone segment gaining prominence in India, LG Electronicsannounced the setting up of a mobile phone production plant in India. The plant is expectedto start production by 2005. by 2010, we aim to produce 20 million units of which 50 per centwill cater to the export market. The facility will involve an investment of $ 60 million by theyear 2010.

Promoted by our success in this country, we plan to set up a mobile phone plant in India. Itwill give us an edge over other players in terms of quality, production and subsequent marketshare. We are investing close to 2 3 per cent of our turnover towards PROJECT anddevelopment of products and hope that will soon be able to establish India as an R&D hub forconsumer electronics, home appliances and GSM phones.

With a strong R&D and export focus, LG India intends to become a USD 10 billion companyby 2010 of which 30 per cent will be from exports. With our firm resolution to realize ourobjectives, we will further consolidate our leadership position in the consumer electronics,home appliances, IT and GSM markets.


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PRODUCT PROFILE OF LG

The products of LG are divided into different-different segments:

TV PDP TV LCD TV MDP TV PROJECTION TV FLAT TV PROJECTOR

VIDEO

VCR/VCP DVD PLAYER DIGITAL SETTOP BOX VIDEO RECORDING MEDIA

AUDIO

HOME THEATER HIFI SYSTEM PORTABLE INCAR KARAOKE SYSTEM AUDIO RECORDING MEDIA

HOME APPLIANCS

REFRIGERATOR AIR CONDTIONER VACCUME CLEANER WASHING MACHINE MICROWAVE OVEN

MOBILE & TELEPHONE MOBILE


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Worlds Only Intellowash Technology

Self Error Detection Showering Rinse Spray Imbalance Detection

SEMI AUTOMATIC WASHING MACHINES

Main Features:

Power saver (240 watts motor) Saves water( low water Consumption) Anti vibratory Rubber(For noise-Free washing) Tough wash tub(Rust Proof Polypropylene) Liquid balancing Ring(Automatic distribution of wash load) Punch+3 Technology

Worlds only Fabricare System Washing machines


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Internet Microwave Oven:

The Internet Microwave, which has an embedded modem & LCD panel, will enable

consumers to download recipes from the internet, automatically set appropriate cooking

directions and sense when a food or drink is perfectly heated by downloading information

from the internet, the microwave will be able to cook food automatically. There is also a

function for consumers to bookmark major food related sites for the latest information and

cooking trends.

In India there is 3 major types of models are available Solo Grill ConvectionMain Features (Indias First Anti-Bacteria Cavity)

Five way Cooking One Touch Indian Auto Cook Dimpled Cavity Power Saving Technology Five Power Level Non Stick Tawa Intello Custom Set


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WORLDS ONLY HEALTHGUARD VACUUM CLEANER

EXTRON V-C3920 SPARK V-C2620

1400W Suction Power Cloth Bag Filter (3.3 ltr) 7 Steps Hygienic Filtration Blower Function Dust Punch System Automatic Cord Rewinder 360 Swivel System On - Off (Foot Operated) Metallic Pipe Dust Bag Indicator


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LG My PC

Specification of My PC Model No. CM 312 A:

Feature LG My PCCPU Intel Pentium IV 1.8 Ghz

Motherboard 400 Mhz FSB,Support upto 2.4 Ghz, Micro ATX Form Factor

Chipset Intel 845 GL chipset

Cache 256 KB L2 Cache

RAM 128 MB DDR RAM 266 Mhz, Support up to 2 Ghz

FDD 1.44 MB,

HDD 40,GB, Seagate

CDROM 52 X LG Make

Modem 56.6 KBPS, Internal

Sound Onboard AC 97 Compliant

Mouse LG 2 Button Scroll Mouse ,PS2 Type, Silver Black

Keyboard Special Multimedia Keyboard, Silver Black Color

Cabinet Special Slim Silver Black Colour Book Shelf Cabinet

SMPS 200 W


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Bays External 1 x 5.25, 1x 3.5,Internal 1 x 3.5

Expansion slot 3 PCI,1 CNR

Operating system Turbo Linux 8.0

Speakers 160 W LG Silver Black Stereo Speakers

Monitor 15 LG Studio Works Monitor (Options of others )

CTV

How Golden Eye Works:

A natural Algorithm EYE adjusts the picture according to changing light conditions. While

Digital Gamma Correction further improves picture. Ensuring no matter how long you watch

television, your eyes have it easy.


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DVD Entertainment System

Our product is one of the best products in this segment, but the main problem is low marketstrategy & not to give attention to this product Cateogary.Our products are with extra features

Full remote Super woofer system Logic Deck Dolby Digital

The

smartest way to entertain your family:

Home Theater system Mini compo Dvd system Micro compo Dvd system


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COMPETITORS OF LG

SAMSUNG BPL VIDEOCON ONIDA SONY SANSUI PANASONIC IGO NATIONAL BELTEK OSCAR WHIRLPOOL GODREJ AND OTHERS

EFFECTIVE ADVERTISEMENT AND CONSUMER

ATTITUDE

The following model exemplifies the attitude or response of a consumer to an advertisementand a glance through the following pictorial presentation would simplify our understanding ofthe advertisements effects on thinking response and it also magnifies the peripheral andassociative effect of an advertisement.


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A Model of the FeelingResponse to Advertisement

A rather simple explanation of how a feeling response advertisement works is that people

like it or dislike it is an advertisement, and this attitude gets transformed to or associated withthe product in the advertisement. There is thus the potential for a direct casual link betweenthe attitude towards an advertisement and the attitude and behaviour towards a product. Asnoted in the diagram, feelings engendered by an advertisement can create or influence anattitude towards the advertisement directly, as well as indirectly, through assessment of thequality of the advertisements exceptional characteristics. In fact, some researchers believethat attitude to the advertisement really has two different components; an effective one,reflecting the direct effect of the feelings evoked by the advertisement, and a second morecognitive one, reflecting how well is the advertisement made and how useful is theadvertisement.

It is important, in understanding how an advertisement ultimately affects consumer attitude;to see what kind of attitude people develop toward the advertisement itself. If the feeling thatthe advertisement creates are positive, and if the way the advertisement is made is evaluatedfavourably, then the advertisement should elicit a favourable attitude towards itself and vice-versa.

In respect of the viewers of the advertisement, the matter of concern is that, how far does itinfluence them and how should it influence them in the right direction. Viewers ofadvertisement, who are the mass, have got their own outlook and their own way ofunderstanding. The customers are to depend on the advertisements, only till he gets theproduct. After buying and using the product for the first time, comes the response to theadvertisement. This can be in three different levels viz.

At the first level, when the consumers are fully satisfied, they will respond favorably to usethe product continuously, subject to the price and the availability of the product. Continuousadvertisement in various media further influences the listeners to build up a positive attitudetowards the product. This leads to the change in the consumption behaviour of the society,which leads to a great level of social and cultural change among the people in general.

The next level is the stage of getting dis-satisfaction by the consumers on the use of theproduct, on persuasion by the advertisement. This will lead to consumer resistance to the

product. The dissatisfaction at this state means that the quality or the contents of the utilityvalue of the product might not have reached the height expectations created by theadvertisement. If the product or service at this stage is able to satisfy at least a section of thepeople, then it can service higher and thus will serve as forbidding factor. As far as theattitude formation is concerned, this stage can be considered as a formative stage.

The third situation leads to a stage, when the viewers understanding that the advertisementmisguides them or giving a wrong information deliberately. Under this situation the viewerloses confidence on the advertiser, producer and the seller. This leads to a negative attitudeon the marketing of the products of the company in general. The defects are to be brought tothe knowledge of the producer to give a chance for him to correct the mistakes, if it is so.

When there is no proper response for this complaint, then it leads to earning discredit fromthe customers.


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ESSENTIALS OF EFFECTIVE ADVERTISING

The measure of any advertisement is its effectiveness in reaching out to the consumers; there

are a few agreed principles, which govern the effectiveness of an advertisement. Some of theprinciples, which are the ingredients of an effective advertisement, have been dealt here.

Importance of claim:The most important factor determining the effectiveness of an advertisement is theimportance of claim made in it. Many advertisements make important claims. But theseclaims should be important for the consumer too. If a buyer gives importance for quality,there is no point in speaking about cheap price, similarly if cheap price is important theadvertisement should highlight only that. Nowadays advertisement agencies concentrate onUSP, i.e., unique selling proposition. Each advertisement must make a strong factual claim to

pull the consumer into the store to buy.

Believable:An advertisement must be believable. This can be incorporated in many ways. One way is toquote facts and figures about tests proving your claim. However, negatively speaking, theadvertisement should not mention anything unbelievable. Sometimes advertisement given inprestigious magazines is believed by the readers.

Uniqueness:The advertisement itself must have something unique about it. Uniqueness draws attention.According to the four-fold principle of AIDA (Attention, Interest, Desire and Action-buying),

any effective advertisement should draw the attention of the customer. It is a mistake todepend entirely on uniqueness. It should be followed by proper claims, and believability.Typically advertisements whose major objective is to gain brand recognition and acceptancerather than gaining conviction or buying action rely on uniqueness.

Repetition:Repetition is one of the key concept of advertising. It is better to have a long series of smalladvertisement than one extremely long advertisement. Repetition is a basic principle ofmemory. Naturally, the more times an advertisement is run, the more likely it is that anyperson has seen one of the most advertisements recently. Repetition and regency are usually

closely related. In fact, an advertisement is better read upon repeating, certainly repetitionlowers advertisement cost.


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SITUATION FAVOURING ADVERTISEMENT

It is imperative that the situation must be ripe for an advertisement to bear the fruits of

optimum return or reward. The advertiser must constantly assess the situation to choose theright environment and ideal time for an advertisement to be launched. The conditionsfavoring an advertisement are as follows:

When there is a favorable primary demand of particular product. When there is a distinctive product differentiation from other competitive brands. Availability of favorable hidden qualities in the advertised products not found in

competitive products.

When mass market is penetrated. Possibility of powerful emotional buying motive is seen in the advertised product. Favorable managerial personnel personal and company policies. Non-Exaggeration of facts in product advertisement. Effective or systematic project work conducted for a particular product to be

advertised.


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AN IDEAL CONSUMER FEELING

In order to ensure that the advertisements reach the target consumers in a most effective way

and begets right response from, it has to be ensuring that such advertisements are presented inthe right way. The following steps on the part of consumer may ensure that theadvertisements are on the right track.

Getting attracted towards the advertisements. Listening and observing the contents of the advertisements in full. Continuous watching of the same over a period. Comparing the advertisements of similar products. Learning more about the product, the producer and the advertiser. Making a trail purchase as follow up activity. Using the product as per the instructions. Assessing the level of utility of the product individually. Assessing the level of utility derived with other similar consumers. Comparing the level of utility of the product with similar products. Decision-making regarding the continuous use of the product, and to recommend to

others, positively or negatively.

If not satisfied with the product discrepancy regarding the quality and thecharacteristics of the product are to be taken to the knowledge of the producer and theadvertiser.


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CONSUMER AWARENESS OF ADVERTISING

The effects of exposures on audience awareness depends on the Reach, Frequency, andImpact:-

Reach (R) : The number of different persons or households exposed to a particular media

schedule at least once during a specified time period.

Frequency (F) : The number of times within the specified time period that an average

person or household is exposed to the message.

Impact (I) : The qualitative value of an exposure through a given medium (thus a food ad in

good housekeeping would have a higher impact than in the police gazette.

The relationship between reach, frequency and impact is captured in the following concepts:

Total number of exposure (E) : This is the reach times the average frequency; that is

E = R * F

This measure is referred to as the Gross Rating Points (GRP).

Weighted number of exposures (WE) : this is the reach times average frequency times

average impact; that is

WE = R * F * I

Many advertisers believe a target audience needs a large number of exposures for theadvertising to work. Others doubt the value of high frequency. They believe that after people

see the same ad a few times, they act on it, get irritated by it, or stop noticing it.


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DATA ANALYSIS


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Q1) Are you user of LGs Home Product?

Yes [ ], No [ ]

CATEGORYRESPONDENTS PERCENTAGE

User

Non User

44

56

44%

56%

TOTAL 100 100%

Table 1: Users /Non user Of LG Products

Graph 1 : Users /Non user Of LG Products

ANALYSIS:

44% (44 respondents) are user of LGs products. Rest 56% (56 respondents) are non user of LGs product

Q2) By which Medium you come to know about LG?

Advertisement [ ]

Family Member [ ]

Friends/Relative/Neighbor [ ]

Other source


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SOURCESRESPONDENTS PERCENTAGE

Advertisement

Family member

Friend/relative/neighbor

Other source

58

14

28

0

58%

14%

28%

TOTAL 100 100%

Table 2 : Source of Information

Graph; Source of Information

ANALYSIS:

Most of the respondents(58%) come to know about LG by the Advertisement. Second largest source of information are relatives/friends/ neighbors. Third information souce are family members.

Q.3: Which advertisement feature influenced you most in a particular Ad?

Concept/Message [ ]

Logo/Slogan [ ]

Picturisation [ ]

Overall [ ]


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FEATURE RESPONDENTS PERCENTAGE

Message/concept

Logo/slogan

Picturisation

Overall

12

36

28

24

12%

36%

28%

24%

TOTAL 100 100%

Table3 : Most Influencing Features of Ads

Graph: Most Influencing Features of Ads

ANALYSIS:

24 respondents thinks overall Ad is influencing them. 36 respondents thinks, Logo/Slogan is the second largest influencing feature in the

Ad. 28 respondents are influenced by Picturisation of the Ad and 12 respondents are influenced by the message of the Ad.


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RECALL FACTORE RESPONDENTS PERCENTAGE

Logo/slogan

Message

Presentation of ad

Model/celebrity

22

37

35

6

22%

37%

35%

6%

TOTAL100 100%

Table5: Recall of LG

Graph : Recall of LG

ANALYSIS:

22 respondents have respond that It is easy to remember LG logo/Slogan. On the part of Message there are 37 respondents in favoring. The presentation of ad suits more to 35 respondents. While rest of the respondents remembered the Model/Celebrity.

Q. 6 What do you like of the advertisement of LG?

Impressive [ ], Satisfactory [ ]

Unsatisfactory [ ]

Table 6 : Impact of LGs Ad


Impressive

Satisfaction

Unsatisfactory

36

52

12

36%

52%

12%

TOTAL 100 100%


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Graph : Impact of LGs Ad

ANALYSIS:

36 respondents think that the LGs ads are impressive. 52 respondents favor it as satisfactory. While rest of respondents (12) are unsatisfied with LG ad strategy.

Q. 7 What do you think about the most striking media to advertise LG?

Television [ ], Radio [ ]

Internet [ ], Newspaper [ ]

Banner/Hoardings [ ], Magazine [ ]

SOURCE OF MEDIARESPONDENTS PERCENTAGE

Television

Radio

Newspaper

magazine

Banner/hoarding

40

24

16

18

2

40%

24%

16%

18%

2%

TOTAL100 100%

Table 7 : Effective Media to Giving an Ad


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Graph : Effective Media to Giving an Ad

ANALYSIS:

40 respondents seek that TV is the best medium to go through Ad. While in against of it 24 are favoring Radio. Newspaper also has 16 respondents in their favor. Rest of the respondents favor to Magazine 18 and Banner/Hoarding 2.

Q. 8 Based on the price range what impression do you carry of LGs product?

Economical Costly [ ]

Neither Economical nor Costly [ ]


Economical

Costly

Neither economical nor costly

0

36

64

-

36%

64%

TOTAL 100 100%

Table 8 : Perception about LG


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Graph: Perception about LG

ANALYSIS:

36 of the respondents seek that the LG Product is Costly. While 64 of the respondents seek it as Mid ranged product. Most surprisingly, none of the respondents seek it as Economical product.

Q. 9 Does the advertisement reflect actual product profile?

Yes [ ], No [ ]

DEGREE OF REFLECTIONRESPONDENTS PERCENTAGE

Yes

No

70

30

70%

30%

TOTAL 00 100%

Table 9 : Reflection of Product Profile by The Ads

Graph: Reflection of Product Profile by The Ads

ANALYSIS:

30 respondents are in favoring that the ad doesnt reflect the true value or information. Rest of the 70 respondents deny the above respondents view.


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Q. 10 The advertising strategy of LG is

Very good & Promising [ ]

Good & Promising [ ]

Good but Need Alteration [ ]

Need complete Alteration [ ]


Very good & promising

Good & promising

Good but need alteration

Need complete alteration

8

23

42

27

8%

23%

42%

27%

TOTAL 100 100%

Table 10: Perception about LGs Ad Strategy

Graph: Perception about LGs Ad Strategy

ANALYSIS:

42 respondents think there is some need to change LGs ad strategy. 27 seek for a complete change in that.

While 31(8 + 23) respondents says it as very good / good and promising.


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Q. 11 Did you went to go exclusive LGs Showroom?

Yes [ ], No [ ]

CATEGORY RESPONDENTS PERCENTAGE

Yes

No

Total

68

32

100

68%

32%

100%

Table 11: Exclusive LGs showroom

Graph: Exclusive LGs showroom

ANALYSIS:

68 respondents are satisfied from exclusive LGs showroom. They are favor to LGsshowroom.

32 respondent are not satisfied from LGs showroom .


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Q. 12 Did you went to go purchase LGs product after watching the ad and ended up

Buying other product, influence by the specific reason? Mention it.

Yes [ ],

No [ ]

CATEGORY RESPONDENTSPERCENTAGE

Yes

No

Total

75

25

100

75%

25%

100%

Table 12: Influence by the specific reason

Q 14 :Gender Classification of RespondentsMale [ ], Female [ ]

GENDER RESPONDENTSPERCENTAGE

Male

Female

64

36

64%

36%

TOTAL100 100%

Table 14: Gender Classification of Respondents

Graph: Gender Classification of Respondents


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ANALYSIS:

Out of 100 respondents, 36 are male and 64 are female.

Q. 15 Do you want to give any suggestion for LGs advertisement?

Yes [ ], No [ ]


Yes

No

72

28

72%

28%

TOTAL100 100%

Table 15: suggestion for LGs advertisement

.

LIMITATIONS


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Some of these limitations can be overcome whole some can be overlooked for a smooth

conduction of research. Some of those restrictions that some on my way during the research

are:

Due to time limitation, It was not possible to cover all areas of Ghaziabad. Scope of the study is limited, so it can not be said that it is true representation of

whole nation.

On the basis of this data analysis, we can not assume the final situation of the market.

Sample size of 200 respondents is not enough to collect accurate information.

FINDINGS

According to A Study of Advertising Strategy of the Indian Corporate World, I have found

following facts:-


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On the basis of primary data, we can say that 22% products of LG are existing in thehouses.

Most of the household are using the LGs colour televisions. Television is the most striking media for Advertising. Logo/slogan is the main part, which makes an effective advertisement. The slogan of

LG is not so remind able by the consumers.

If we measure the awareness of LG ad, it is 92% (according to survey). The advertisement of LG need some modification in it. According to report 32% respondents think that LGs brands are costly. Samsung and Videocon are the best competitors in the same segment.

BIBLIOGRAPHY

BOOKS:

Kotler, Philip (2004)Marketing Management, Eleventh Edition (New Delhi: Prentice Hall of India)

Kothari, C.R (1999)Research Methodology (Delhi: Global Business press)


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S.L. Gupta and V.V. Ratna (2004)Advertising and Sales Promotion Management, First Edition (New Delhi: Sultan

Chand & Sons)

]

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