19750694 Industrial Exposure

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PROJECT REPORT

ON

MARKETANALYSISOFLG CONSUMERDURABLES

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ACKNOWLEDGEMENT

We wish to express our sincere thanks to

Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATIVIDYAPEETH UNIVERSITYS INSTITUTE OF MANAGEMENT

AND RESEARCHfor giving us the opportunity to work on the

marketing plan of a company. This has given us the insight of

how the various theoretical concepts are applied in an

organization.I got the opportunity to do a challenging project in

LG L!T"#$I! %I$&I'( The project is the important part of our

study and gives us a real practical exposure to the corporateworld.

I also thank to Dr. Sac!" S. V#r"#$ar, D!r#c%or, BHARATI

VIDYAPEETH UNIVERSITY INSTITUTE O MANAGEMENT &

RESEARCHfor giving me chance to get such an experience and

giving me chance to get an industrial experience.

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INDEX

1) Executive Summary

2) Preface

3) Introduction

4) Classification of Consumer Durables

5) Scoe

!) "ortunity # $%reats

&) 'istory of Comany

() lobal "erations

*) +usiness ,reas # -ain Products

1.)Slo/an # Symbol

11)Partners%i

12)Strate/ic ,lliance

13)Internal Culture of 0

14)-ission

15)Product 0eaders%i

1!)Code of Conduct

1&)0 India

1()#D Potential

1*)-aor ey Success actors

2.)-ar6etin/ and Distribution

21)Customer Service

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22)"bective of t%e Proect

23)esearc% -et%odolo/y

24),nalysis

25)ecommendations # Su//estions

2!)Customer Survey indin/s

2&)0imitations

2()Sources of Data Collected

2*)7uestionnaire

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Executive Summ!"

Indian Consumer durables mar6et used to be dominated by fe8 domestic layers

li6e /odre 9oltas all8yn and 6alvinater +ut ost liberali:ation muc% forei/n

comany %ave entered into Indian mar6et det%ronin/ t%e Indian layer and

dominatin/ Indian mar6et t%e maor cate/ories in t%e mar6et C$9;

EI,$"; ,I C"


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0As innovative B211 camai/nA to rovide uality after?sales service; 8ill also be

exanded from t%e existin/ 22 to 4. cities

$%e camai/n; for 8%ic% I$ infrastructure %as been set u; includes t%e

comanyAs resonse to customer comlaint 8it%in t8o %ours $%e fixin/ time for

comlaints varies from one %our to a maximum of 24 %ours

PREFACE

$%is roect /ives me /reat exosure to t%e consumer durable mar6et because it

includes roduct 6no8led/e and t%e filed ob in 8%ic% I %ave visited t%e stores of

Del%i $%is roect %els me to 6no8 t%e mar6et ractically -y ob 8as durin/

t%is roect to see t%e mar6et s%are and also t%e dislay s%are of t%e 0 roduct in

t%e store 0 al8ays insist t%e 5. dislay s%are of 0 roduct because 0

believes t%at #JO DIK$TA $AI WO BIKTA $AI%

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INTRODUCTION

+efore t%e liberali:ation of t%e Indian economy; only a fe8 comanies li6e

elvinator; odre; ,ll8yn; and 9oltas 8ere t%e maor layers in t%e consumer

durables mar6et; accountin/ for no less t%an *. of t%e mar6et $%en; after t%e

liberali:ation; forei/n layers li6e 0; Sony; Samsun/; =%irlool; Dae8oo;

and ,i8a came into t%e icture $oday; t%ese layers control t%e maor s%are of

t%e consumer durables mar6et

Consumer durables mar6et is exected to /ro8 at 1.?15 in 2..*?2.1. It is

/ro8in/ very fast because of rise in livin/ standards; easy access to consumer

finance; and 8ide ran/e of c%oice; as many forei/n layers are enterin/ in t%e

mar6et

=it% t%e increase in income levels; easy availability of finance; increase in

consumer a8areness; and introduction of ne8 models; t%e demand for consumer

durables %as increased si/nificantly Products li6e 8as%in/ mac%ines; air

conditioners; micro8ave ovens; color televisions @C$9s) are no lon/er considered

luxury items 'o8ever; t%ere are still very fe8 layers in cate/ories li6e vacuum

cleaners; and dis%8as%ers

Consumer durables sector is c%aracteri:ed by t%e emer/ence of -


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C&''i(icti)* )( c)*'ume! +u!,&e' 'ect)!

1. Consumer electronic include vcdFdvd; %ome t%eatre; music layer; color

television @C$9s); cameras; camcorders; ortable audio; 'i?i; etc

2. =%ite /oods include dis%8as%ers; air conditioners; %eaters; 8as%in/ mac%ines;

refri/erators; vacuum cleaners; 6itc%en aliances; non?6itc%en aliances;

micro8aves; built?in aliances; $umble dryer; ersonal care roduct etc

3. -oulded lu//a/e include lastics

4 Cloc6s and 8atc%es

5 -obile %ones

Sc)-e

1. In term of urc%asin/ o8er arity @); India is t%e 4t% lar/est economyin t%e 8orld and overta6e Gaan in t%e near future become t%e 3rd lar/est

2. Indian consumer durable mar6et is exected to reac% H4.. billion by on2.1.

3. India %as t%e youn/est oulation amon/st t%e maor countries $%ere arelot of eole in t%e different income cate/ories nearly t%e t8o t%ird

oulation is belo8 t%e a/e of 35 and nearly 5. is belo8 25

4 $%ere are 5! million eole in middle class; 8%o are earnin/ usH4;4..?>SH21;(.. a year ,nd t%ere are ! million ric% %ouse%old in India

5. $%e uer?middle and %i/%?income %ouse%old in urban areas /re8 to 3(2

million in 2..& as a/ainst 14! million in 2....

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O--)!tu*it"1 In India t%e enetration level of 8%ite /oods is lo8er as comared to ot%er

develoin/ countries

2 >nexloited rural mar6et

3 aid urbani:ation

4 Increase in income level; ieincrease in urc%asin/ o8er of consumers

5 Easy availability of finance

T.!et'

'i/%er imort duties on ro8 materials

C%ea imorts from Sin/aore; C%ina and from ot%er ,sian countries

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B!*+' i* c)*'ume! e&ect!)*ic 'ect)!

MNC' NATIONAL REGIONAL

0 )S,-S>J )

TODAYConsumer durables sector is c%aracteri:ed by t%e emer/ence of -


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and around s 14. crore on researc% and develoment; besides launc%in/ ne8

latforms in information tec%nolo/y and related areas;

LG E&ect!)*ic'is one of t%e leadin/ comanies in t%e field of electronics 8it% a

/lobal resence in many countries +efore briefin/; I %ave divided t%e

introduction art into t%ree main sub arts

1 0 lobal

2 0 India

3 0 Pune

$i't)!" )( c)m-*"

$%e comany 8as ori/inally establis%ed in 1*5( as old Star; roducin/ radios;

$9s; refri/erators; 8as%in/ mac%ines; and air conditioners

$%e 0 rou 8as a mer/er of t8o orean comanies; 0uc6y and old Star;

from 8%ic% t%e abbreviation ofLG8as derived $%e current K0ifes /oodK slo/an

is a bac6ronym +efore t%e cororatenited States

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G&),& O-e!ti)*

0 Electronics is layin/ an active role in t%e 8orld mar6et 8it% its assertive

/lobal business olicy ,s a result; 0 Electronics controls 11. local subsidiaries

in t%e 8orld 8it% around (2;... executive and emloyees

LG G!)u-

1. 0 P%ilis 0CD

2. 0 C%emical

3. 0 $elecom

4. 0 Po8ercom

5. 0 $8ins

6. 0 Dacom

Bu'i*e'' !e' *+ mi* -!)+uct'

M),i&e c)mmu*icti)*'

@a) CD-, 'andsets;

@b)S- 'andsets;

@c) 3 'andsets;

@d)Cellular P%ones

Di/it& --&i*ce

12
http://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacomhttp://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacom


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a)

- icro8av e

"vens;

b)

= as%in/

-ac%ines;

c) 9acuum Cleaners;

d) 'ome


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a) 'ome $%eaterSystems;

b) D9D ecorders;

c) Suer -ulti D9D e8riters;

d) CDM=;

e)


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0Li(e1' G))+0 !e-!e'e*t' LG1' +ete!mi*ti)* t) -!)vi+e +e&i/.t(u&&" 'm!t

-!)+uct' t.t 2i&& m3e ")u! &i(e /))+4

$%e 0 Electronics 0ifes ood si/nature consists of t%e 0 lo/o; seal;

and t%e slo/an; K0ifes oodK set in C%arlotte sans tyeface curved

around t%e 0 symbol $%e curvin/ of t%e slo/an reinforces 0s

ersonali ty and uniueness $%e consistent usa/e of t%is si/nature

clearly establis%es t%e uniue identity of t%e comany and unifies every

division and roduct from 0 Electronics across t%e /lobe

T$ESYMBOL$%e symbol of 0 is t%e face of future $%e letter N0O and NO in a circle

symboli:es 8orld; future; yout%; %umanity # tec%nolo/y 0 %iloso%y is based

on %umanity It also reresents 0As efforts to 6ee close relations%i 8it% our

customers around t%e 8orld

T.e '"m,)& c)*'i't' )( t2) e&eme*t'4

1 $%e lo/o in 0 /ray

2 $%e styli:ed ima/e of %uman face in t%e uniue 0 red color

Re+ c)&)! reresents our friendliness and /ives a stron/ imression of 0As

commitment to deliver t%e best

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$%e circle symboli:es T.e G&),e $%e styli:ed ima/e of a smilin/ face in t%e

symbol conveys #F!ie*+&i*e'' *+ A--!)c.,i&it"O $%e one eye on t%e

symbol reresents #G)&5)!ie*te+6 F)cu'e+ 7 C)*(i+e*tO

$%e slo/an of 0 is #Li(e8' G))+O It exresses NB!*+8' 9&ue6 P!)mi'e'6

Be*e(it'; Pe!')*&it"4

T$EPARTNERS$IP

0 Electronics c%ooses to romote %armony and build constructively on a labor?

mana/ement relations%i rat%er t%an an emloyee?emloyer relations%i $%is

illustrates t%at mana/ement and 8or6ers are not in a vertical relations%i; but in a

%ori:ontal one

$%is culture is necessary for 0 Electronics as it strives to become one of t%e8orlds to comanies Suc% a relations%i is transformed into a value?creation

relations%i 8%ereby bot% arties endeavor to address mutual roblems and create

ne8 values to/et%er

STRATEGICALLIANCE

LG E&ect!)*ic' i' m3i*/ tec.*ic& +v*ce' *+ i+e*ti("i*/ ,u'i*e''

)--)!tu*itie' t.!)u/. v!i)u' '')citive !e&ti)*'.i-' 2it. ')me )( t.e

2)!&+1' &e+i*/ c)m-*ie'4

0 Electronics is strivin/ to become number one in t%e 8orld by min/lin/ in

various business and tec%nolo/ical fields and ma6in/ strate/ic alliances 8it%

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8orld famous comanies KStrate/ic association bet8een cororations;K in 8%ic%

comanies 8it% different infrastructures cooerate in t%e fast?develoin/ 21st

century business field; is of 6ey si/nificance in terms of stren/t%enin/ t%e existin/

industry and creatin/ a ne8 one

LG E&ect!)*ic'8ill do its best to create ne8 roducts and services 8it% an oen

mind; 8%ile develoin/ ne8 tec%nolo/ies and business fields t%rou/% various

associations 8it% some of t%e 8orlds most successful comanies

1 3-

2 S>E

"cean strate/y is one of t%e examles of /ro8t%

Mi''i)*

$%e mission of 0 is to rovide t%e customers 8it% utmost satisfaction t%rou/%

leaders%i $%e fundamental olicy of develoment is to secure roduct

leaders%i t%at t%e Customers may %ave t%e utmost satisfaction

P!)+uct Le+e!'.i-

=e are focusin/ on six develoment areas to become t%e roduct leader

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C)+e )( c)*+uct )( LG;

1 esonsibility and obli/ations to customers R

esect for Customers

Creatin/ 9alue Providin/ 9alue

2 air cometition

Pursuit of ree Cometition

Comliance 8it% 0a8s and e/ulations

3 air $ransaction R

Eual "ortunity air $ransaction Procedure

Suort and ,id for +usiness Partners

4 +asic Et%ics for Emloyees

+asic Et%ics Comletion of Duty

Self Develoment

airness in Performance

,voidance of conflict 8it% comany interest

5 Cororate esonsibilities to emloyees

esect for %uman di/nity

air $reatment

Promotin/ Creativity

! esonsibilities to society and country ational +usiness Develoment

Protection of stoc6 %older interest

Contribution to social develoment

Environmental Conservation

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LG INDIA:

0 Electronics India Pvt 0td; a 8%olly o8ned subsidiary of 0 Electronics;

Sout% orea 8as e't,&i'.e+ i* J*u!" after clearance from t%e orei/n

Investment Promotion +oard @IP+) 0 set u a 'tte5)(5t.e !t m*u(ctu!i*/

facility at G!ete! N)i+6 *e! De&.i6 i* dyo/ 9i%ar; asna oad; reater


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LG E&ect!)*ic'India is t%e fastest /ro8in/ comany in t%e consumer electronics;

%ome aliances; and comuter eri%erals industry today

0 Electronics is continually rovidin/; suerior tec%nolo/y roducts # value for

money to more t%an 5. la6% %ouse%olds in India LGEIL i' ce&e,!ti*/ t.e


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T.e c.&&e*/e' (ce+ ," LG 2.e* e*te!e+ i* I*+i* m!3et

1 0o8 brand a8areness about 0 in India

2 "ne of t%e last -


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0EI imlementin/ t%e NDi/ital manufacturin/ systemO @D-S) as t%e cost

cuttin/ innovation t%is system is follo8?u to t%e six si/ma exercise 0EI %ad

initiate earlier

R7D -)te*ti&

0 %as t%e researc% and develoment facilities in +an/alore and Pune +ot% t%e

unit carry out #D deartment for t%e domestic as 8ell as t%e arent comany it

also dose customi:e #D for t%e secific countries to 8%ic% it exort roduct

Re/i)*& c.**e& *+ 2i+e +i't!i,uti)* *et2)!3

1. 0 %as adoted t%e re/ional distribution c%annel in India ,ll t%e

distributers 8or6 directly 8it% t%e comany $%is %as resulted in uic6er

rotation of t%e stoc6 and better enetration into +; C; D; class mar6et

2 0 also follo8s t%e stoc6 rotation olicy rat%er t%en dumin/ stoc6 on

c%annel artners

P!)+uct &)c&i@ti)*;5

1 Product locali:ation is t%e 6ey strate/y used by t%e 0

2. 0 came out 8it% 'indi and re/ional lan/ua/e menus on its $9s

3. Introduced t%e lo8?riced NCinelusO and NsamoomaO for t%e rural

mar6et

4 0 8as t%e first brand to introduce /amin/ in $9s in continuations of its

association 8it% cric6et 0 introduce cric6et /ame in C$9s

MAJOR KEY SUCCESS FACTORS

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1 Innovative mar6etin/ ? 0 8as t%e first brand to enter cric6et in a bi/ 8ay;

by sonsorin/ t%e 1*** =orld Cu and follo8ed it u in 2..3 as 8ell

2 0ocal and efficient manufacturin/ to reduce cost ? $o overcome %i/% imort

duties; 0 manufactures PC monitors and refri/erators in India at its

manufacturin/ facility at


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! Customer is t%e 6in/

& Even +illin/ Qoad to ac% sulier ,

( +e in touc% 8it% t%e mar6et @&. -ar6et; 3. "ffice)

* Plan and Execute annual mar6etin/ Calendar?$ime to mar6et

1.Dislay s%are of 5. ?to /et 5. consumer s%are

LG PUNE

0 Pune is t%e branc% office of 0EI04 It is located in G- oad

In 2..4 0EI0 oened second factory 8%ic% is located in anan/aon $%is lant

manufactures all roduct includin/ D9D 8riters and S- mobiles $%us it

became first comany to manufacture D9D 8riter in India $%e "DP lant aims

to reac% a mano8er base of 15.. eole and an investment of s 3.. crore till

2.1.

0 India 8ill become t%e exort %ub for 0 =orld8ide; caterin/ to t%e -iddle

East and ,frican mar6ets $%e comany aims to touc% an exort turnover of H3

billion by 2.1. from India; 8%ic% 8ill contribute to 3. er cent of t%e Indian

arms turnover

Pune; India; "ctober !; 2..4 ?? 0 announced 3 /ro8t% strate/ies aimed at t%e11 billion eole of India ma6in/ t%e Indian mar6et t%e second lar/est /lobal

Production base follo8in/ C%ina >nder t%is strate/y 0E %as roected 2..&

revenues in India 8ill exceed >SH1. billion; 1. times t%at of 2..4

$%e t%ree strate/ies for t%e Indian mar6et t%at t%e /lobal electronics /iant

disclosed includedR enetrates t%e sout%?8estern mar6et of India t%rou/% t%e

ne8 Pune lant near -umbai; t%e second lar/est city in India; in addition to t%e

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existin/ nort%ern lant installs a ne8 S- %andset roduction line in t%e ne8

Pune lant and uses it as its second?lar/est /lobal S- %andset roduction line

after t%e 7in/dao lant in C%ina and exands t%e current &5. #D staff in India

to 1;5.. by 2..1.; strivin/ to develo remium roducts and exort 3. of

India?manufactured roducts to ,sia; -iddle East and ,frica mar6ets by 2.1.

0 ElectronicsA second ne8 lant in Pune; India covers a total area of 211;2..

suare meters and is currently euied 8it% a roduction line to manufacture

!..;... $9s and one million refri/erators a year $%e comany is set to add

roduction lines of air conditioners; 8as%in/ mac%ines; monitors; and electronic

ovens; by 2.1.

A&')60 Electronics is oised to install a S- %andset roduction line in t%e

ne8 Pune lant by early next year $%e Pune S- %andset line envisa/es a

caacity of manufacturin/ 2 million %andsets annually; and t%e comany exands

it to become a /lobal S- %andset roduction base 8it% a caacity of an annual

1. million units by 2.1.

In connection 8it% its t%ree /ro8t% strate/ies for t%e Indian mar6et; 0

Electronics 8ill invest a total of >SH15. million in establis%in/ facilities and

boostin/ #D efforts in India by 2.1. Secifically; it 8ill invest >SH53 million

in t%e Pune second lant; anot%er >SH43 million in establis%in/ t%e S- line;

and >SH54 million in securin/ #D mano8er and boostin/ ot%er efforts

$%rou/% t%ese strate/ies; 0 Electronics aims to enetrate t%e /lobal mar6et by

usin/ C%ina and India as its core roduction bases; 8%ile oeratin/ its lants in

C%an/8on and umi; orea; as its main roduction bases $%is 8ay; t%e

comany is us%in/ to enetrate t%e /lobal %ome aliance mar6et

$%e resent caacity of t%e facility is of 1 la6% unit er year and it s%all cater to

t%e need of t%e domestic mar6ets 0 lans to uscale its oerations to a fi/ure of

25 la6% units a year in t%e near future $%e Pune lant in addition to its current

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manufacturin/ facility at reater


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4 Day to day advertisement in leadin/ ne8saer

5 Discount at festival time

6. or dealer relations%i t%ey arran/e dealer meetin/ at several time in t%e

year

7. 0 divide dealer in /old silver bron:e etc cate/ory to 6no8 t%e

erformance of t%e dealers

( $%ey %ave t%eir sales ersons at various sub dealer store and at mordent

trade store for articularly for t%e romotion of t%e 0 roduct

* 0 also uses t%e radio - for t%e romotion activities

1.,lso rovide caon and scratc% card for festive season

R8' )( L)/i'tic

ollo8ed by 0R

1 i/%t $ime

2 i/%t Place

3 i/%t Condition

4 i/%t Cost

5 i/%t 'andlin/

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LG Di't!i,uti)*

T.e LG Fct)!" i' &)cte+ t


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I* 2!e.)u'e; t%e roducts are inu 8it% 3?color aer to /et t%e 6no8led/e

about t%e delivery

1. ed Card Q $o sto t%e roduct /oin/ into mar6et;

2 reen card Q $o allo8 t%e roduct for delivery in mar6et;

3 ello8 Card Q ,fter t%e roduct labeled 8it% /reen; allo8 t%is to move in

mar6et

Di't!i,uti)* Time;?

0ocal delivery Q 4 %rs

>country delivery ? 12 %rs

=it%in 2.. 6m Q 24 %rs

+eyond 2.. 6m Q 4( %rs4

$%e above distribution time is t%e time of delivery of roducts from 8are%ouse to

t%e mar6et lace; 8%ic% t%e lo/istic deartment follo8s to fulfill t%e demand in

t%e mar6et at ri/%t time In 0; 8e %ave t%e follo8in/ rocess; 8%ic% is follo8ed

in lo/istic t%rou/% EP

"rder Processin/

Invoicin/

Indentin/

eort

"rder Processin/ boo6in/ for dealers Fdistributors

Invoicin/ after billin/ rocessFbill /eneration

Indentin/ reuirement @Pdt >nit to branc% unit)

eort distributed to all

I* 2!e.)u'e6 t%ere are t8o mode of disersion of roduct from one lace toanot%er 8it%in a) 'ydraulic b) -anual

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In addition; t%ere are 35 fire extin/uis%ers to revent t%e accidental %a:ard 8it%in

t%e 8are%ouse due to fire $%ese fire extin/uis%ers are valid u to year 2.11 "ne

%as to follo8 t%e rule of N


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CUSTOMERSER9ICE

$%e best and t%e bi//est international brands are %ere in India Qbut t%e irony if it

allR 8%ere is t%e after?sales?serviceT So inte/ral to a brand; so critical for itssuccess and so ta6en for /ranted in develoed mar6etsU In India; after sales

service is; for 8ant of a better descrition; t%e its So 8%atAs stoin/ t%e best

comanies from ullin/ out all t%e stos 8%en it comes to rovidin/ t%e best

serviceT Do customers exect for too muc%T "r is it t%at in India t%ey donAt really

care +rand Euity fanned out to -


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But LG .' t3e* some solid stes to8ards imrovin/ customerAs ercetion and

exerience of after sales service +ecause it very imortant in cometitive mar6et

to rovide t%e best service

0 Electronics %as si/ned a memorandum of understandin/ 8it% 23 Industrial

$rainin/ Institutes to stren/t%en its after sales service in India

$%e comany aims to recruit 1.;... eole by t%e end of t%is year as a art of its

brandin/ strate/y to focus on service and move a8ay from discountin/

0 Electronics %as identified ei/%t states 8it% %i/% after sales service call rates toin6 t%e deals 8it% t%e I$I 9 9erma; director ' and mana/ement system;

0 Electronics said; K$%e Comany 8as tryin/ to find a solution for effective

after sales service since last t8o years $%ere is a %u/e need of trained mano8er

for t%e after sales service to ali/n 8it% t%e comanys exansion and focus on t%e

S- mobiles and t%e ersonal comuter se/mentsK

In t%e initial %ase t%e comany %as entered into a/reements 8it% I$Is in t%e

states li6e M.!'.t!6 Gu!t6 De&.i6 Pu*,6 A''m6 *+ K!*t3and

is in t%e last le/ of si/nin/ 8it% Utt! P!+e'.4

1. 0 Electronics; 8it%


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4 $%e comany moved a8ay from t%e discountin/ strate/y since last year and

is uttin/ t%rust on t%e uality and service in its brand communication to

osition 0 as a remium consumer electronics brand

5. ,t t%e to; t%e Service Division in orea reorts to t%e lobal C-" @,s

mentioned in DermotAs ublic intervie8 in E$ on =ednesday) $%is s%o8s

commitment t%at Service must be made into a mar6etin/ differentiator; and

levera/ed t%us

! 0 %as t%e 8idest service net8or6 across t%e country some estimates ut it

at a si/nificant multile of service?infrastructure from our nearest

7. Cometitor =%ile t%e sale si:e may also be a nice multile from nearest; it

s%o8s t%e comany is ready to ut our money 8%ere our mout% is

( $%e comany %as introduced a 211 service ? once you re/ister your

comlaint; 8e 8ill call you bac6 in 2 %ours @%ence 2); set u an aointment

for t%e next convenient day for you @%ence t%e first 1); and s%o8 u in t%e

romised 1?%our slot @%ence t%e second 1) If t%e next convenient day for you

is t%e next day; t%atAs /reat too ItAs a disrutive action in an industry

@includin/ 0) %avin/ traditionally s%ied a8ay from its service

resonsibilities; and t%us not levera/in/ any milea/e from it

* $%e comany is romotin/ 211 t%rou/% ,$0; robably t%e first time after?

sales service is bein/ communicated in t%is fas%ion by any roduct comanyou may %ave seen t%e $9 commercial or %eard t%e radio advert or seen t%e

ne8saer ad or in?s%o osters; bot% of 8%ic% revolve around romt

resonse

10.$%e first 0?o8ned service centre oened in ur/aon @Service in India

/enerally 8or6s t%rou/% aut%ori:ed service centers; in 0As case t%ey 8or6

36


37/53

exclusively for 0) , comany?o8ned service centre tries t%at muc% %arder;

6no8s t%in/s better; and can even contribute as a revenue center

37


38/53

O,ective )( t.e -!)ect

P!im!" ),ective

$%e main obective of filed survey durin/ t%e roect 8as to find out t%e

mar6et s%are of t%e 0 and also calculate t%e dislay s%are

ind out t%e ositional dealer 8%o can sale t%e 0 roduct in lar/e volume

$%e main obective of researc% 8as to identify otential dealer and

develoment t%ese dealer So 0 can ma6e t%em t%eir direct dealer

ind out t%e roblem faced by t%e dealer in sales and t%e distribution

Sec)*+!" ),ective

=%ile urc%asin/ t%e consumer durables 8%ic% arameter is most

imortant for t%e consumerT

Do t%e consumers refer t%e financial facility for buyin/ consumer durableT

'o8 freuently consumers c%an/e t%e consumer durableT

$o en%ances t%e 6no8led/e of consumer durable mar6et

$o increases t%e 6no8led/e consumer durable roduct of 0

$o en%ances t%e 6no8led/e about t%e mar6etin/ and brandin/ activity

38


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Research Methodology:

esearc% met%odolo/y is considered as t%e nerve of t%e roect =it%out a roer

8ell?or/ani:ed researc% lan; it is imossible to comlete t%e roect and reac% to

any conclusion $%e roect 8as based on t%e survey lan $%e main obective of

survey 8as to collect aroriate data; 8%ic% 8or6 as a base for dra8in/

conclusion and /ettin/ result

T.e!e()!e6researc% met%odolo/y is t%e 8ay to systematically solve t%e researc%

roblem esearc% met%odolo/y not only tal6s of t%e met%ods but also lo/ic

be%ind t%e met%ods used in t%e context of a researc% study and it exlains 8%y a

articular met%od %as been used in t%e reference of t%e ot%er met%ods

Re'e!c. +e'i/*;

esearc% desi/n is imortant rimarily because of t%e increased comlexity in t%e

mar6et as 8ell as mar6etin/ aroac%es available to t%e researc%ers In fact; it is

t%e 6ey to t%e evolution of successful mar6etin/ strate/ies and ro/rammers It is

an imortant tool to study buyerAs be%avior; consumtion attern; brand loyalty;

and focus mar6et c%an/es , researc% desi/n secifies t%e met%ods and

rocedures for conductin/ a articular study ,ccordin/ to erlin/er; Nesearc%

Desi/n is a lan; concetual structure; and strate/y of investi/ation conceived as

to obtain ans8ers to researc% uestions and to control variance

T"-e' )( !e'e!c. i';

De'c!i-tive Re'e!c.

$%e tye of researc% adoted for study is descritive Descritive studies are

underta6en in many circumstances 8%en t%e researc%es is interested to 6no8 t%e

c%aracteristic of certain /rou suc% as a/e; sex; education level; occuation or

income , descritive study may be necessary in cases 8%en a researc%er is

interested in 6no8in/ t%e roortion of eole in a /iven oulation 8%o %ave in

39


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articular manner; ma6in/ roections of a certain t%in/; or determinin/ t%e

relations%i bet8een t8o or more variables $%e obective of suc% study is to

ans8er t%e N8%o; 8%at; 8%en; 8%ere and %o8O of t%e subect under investi/ation

$%ere is a /eneral feelin/ t%at descritive studies are factual and very simle $%is

is not necessarily true Descritive study can be comlex; demandin/ a %i/%

de/ree of scientific s6ill on art of t%e researc%er

Descritive studies are 8ell structured ,n exloratory study needs to be flexible

in its aroac%; but a descritive study in contrast tends to be ri/id and its

aroac% cannot be c%an/ed every no8 and t%en It is t%erefore necessary; t%e

researc%er /ive sufficient t%ou/%t to framin/ researc%

ue'ti)*' *+ +eci+i*/ t.e t"-e'of data to be collected and t%e rocedure to be

used in t%is urose Descritive studies can be divided into t8o broad cate/oriesR

Cross Sectional and 0on/itudinal Sectional , cross sectional study is concerned

8it% a samle of elements from a /iven oulation $%us; it may deal 8it%

%ouse%old; dealers; retail stores; or ot%er entities Data on a number ofc%aracteristics from samle elements are collected and analy:ed Cross sectional

studies are of t8o tyesR ield study and Survey ,lt%ou/% t%e distinction bet8een

t%em is not clear? cut; t%ere are some ractical differences; 8%ic% need different

tec%niues and s6ills ield studies are ex?ost?factor scientific inuiries t%at aim

at findin/ t%e relations and interrelations amon/ variables in a real settin/ Suc%

studies are done in live situations li6e communities; sc%ools; factories; and

or/ani:ations

,not%er tye of cross sectional study is survey result; 8%ic% %as been ta6en by

me , maor stren/t% of survey researc% is its 8ide scoe Detail information can

be obtained from a samle of lar/e oulation +esides it is economical as more

information can be collected er unit of cost In addition; it is obvious t%at a

samle survey needs less time t%an a census inuiry Descritive researc% includessurvey and fact findin/ enuiries of different 6inds of t%e maor urose

40


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Descritive researc% is descrition of t%e state of affairs; as it exists at resent

$%e main c%aracteristic of t%is met%od is t%at t%e researc%er %as no control over

t%e variables %e can only reort 8%at %as %aened or 8%at is %aenin/ $%e

met%ods of researc% utili:ed in descritive researc% are survey met%ods of all

6inds includin/ comarative and co relational met%ods $%e reason for usin/ suc%

needs to be flexile in its aroac%; but a descritive study in contrast tends to be

ri/id and its aroac% cannot be c%an/ed ever no8 and t%en

OBJECTI9E OF T$E STUDY

$%e obective 8as to find out t%e mar6et s%are of 0 roducts; advanta/es; anddisadvanta/es of 0 roducts from dealers and to find out 8%at roblems t%ey are

facin/ 8it% t%e 0 roducts so t%at roblems can be resolved to increase t%e sale

PICTURE S$OWING T$E PRODUCT OF LG IN ONE OF T$E S$OP

41


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Dt c)&&ecti)* met.)+';

,fter t%e researc% roblem; 8e %ave to identify and select 8%ic% tye of data is to

researc% ,t t%is sta/e 8e %ave to or/ani:e a field survey to collect t%e data "ne

of t%e imortant tools for conductin/ mar6et researc% is t%e availability of

necessary and useful data

P!im!" +tR or rimary data collection; 8e %ave to lan t%e follo8in/ four

imortant asects

Sm-&i*/

Re'e!c. I*'t!ume*t

Sec)*+!" Dt ? $%e ComanyAs rofile; ournals and various literature

studies are imortant sources of secondary data

Dt *&"'i' *+ i*te!-!etti)*

1 7uestionnaires

2 Pie c%art and +ar c%art

ue'ti)**i!e';

$%is is t%e most oular tool for t%e data collection , uestionnaire contains

uestion t%at t%e researc%er 8is%es to as6 %is resondents 8%ic% is al8ays /uided

by t%e obective of t%e survey

Pie c.!t;

$%is is very useful dia/ram to reresent data; 8%ic% are divided into a number of

cate/ories $%is dia/ram consists of a circle of divided into a number of sectors;

8%ic% are roortional to t%e values t%ey reresent $%e total value is reresented

by t%e full create $%e dia/ram bar c%art can ma6e comarison amon/ t%e various

comonents or bet8een a art and a 8%ole of data

42


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B! c.!t;

$%is is anot%er 8ay of reresentin/ data /ra%ically ,s t%e name imlies; it

consist of a number of 8%isered bar; 8%ic% ori/inate from a common base line

and are eual 8idt%s $%e len/t%s of t%e bards are roortional to t%e value t%ey

reresent

P!e-!ti)* )( !e-)!t;

$%e reort 8as based on t%e analysis and resented 8it% t%e findin/s and

su//estions $%e samle of t%e uestionnaires is attac%ed 8it% t%e reort itself

Sm-&i*/ Met.)+)&)/";

Details of t%e samlin/ met%odolo/y; I %ave made uestionnaire $%e one is made

for t%e Customer


44/53

A*&"'i'

71 'ave you ever urc%ased any consumer durable of 0T

es


45/53

--+

.*+

-+

1*+ 'ttractive 2rice

/ervice

&emonstration

#ffers

.-+

1-+7-+

-+

.81 years

18- years

-8.* years

9ore than .*

years

74ou refer to buy from t%e same as you %ave mentioned in 73 because of

follo8in/ reasons

,ttractive Price

Service

Demonstrations

"ffers

75=%ic% consumer durable of 0 you %aveT

C$9

0CD

EIDE,$"

=,S'I


46/53

7&Do you refer any financin/ sc%eme to urc%ase consumer durablesT

es


47/53

RECOMMENDATIONS AND SUGGESTIONS

1. 0 s%ould imrove itAs after sale service because its %its badly 0s mar6et

s%are

2 -ore detailed customaries service is to be rovided

3 $%e trainin/ to in s%o demonstration s%ould be /iven at freuent time

interval and feed bac6 s%ould be considered ositively

4 $%e comany s%ould loo6 into t%e matter of erson %irin/ for in s%o

demonstration , bi/ 0 s%o8room s%ould %ave at least 2 suc% 6ind of

erson

5. 0 s%ould try ne8 dealer 8%o %ave t%e otential So t%ey can tar/et more

mar6et

! ,s t%ere is a bottle nec6 cometition bet8een Samsun/ and 0; it is

necessary to ta6e measure stes to overcome t%e area of do8nfall in 0

8it% resect to Samsun/

& $%e mar6etin/ mana/ers s%ould ma6e better relations 8it% dealers and

reutation of t%e comany

( Customer considers uality as t%eir first reference; so t%e comany s%ould

/ive more stress on t%is

* $%e s8itc%in/ of customer from 0 roduct to ot%er brand is due to t%e bed

after sell service in s%o

1.$%e roduct is 8ell a8are and it is on to of mind of customer So comany

s%ould al8ays imrove services and udate t%eir tec%nolo/y

47


48/53

CUSTOMER SUR9EY FINDINGS

1 Secondary suorts lay an imortant role in t%e customers mind and create

a8areness amon/ t%e customers $%e secondary suort includes

Demonstration; Ex%ibition # Even Sonsors

2. rom t%e survey it 8as found out t%at t%e maority of customers donAt buy

consumer durables from ex%ibitions $%ey ust visit t%e ex%ibitions to see

t%e co latest model

3 $%ey 8ant to buy from t%e s%o8rooms or from co s%o8rooms or t%em

service is imortant +eside convenience and ot%er factors service is 6ey

factor

4 ,lso maority of customers do not 8ant any financin/ sc%eme for

urc%asin/ t%e durables

5 Customers are also no8 very c%oosy in buyin/ t%e roduct and it isimortant for t%e comany to ma6e loyal customer of t%eir brand

! In survey 8e found t%at 0 %as catured maximum mar6et s%are in every

cate/ory 0 dominates C$9; 0CD; and efri/erator; and =as%in/

mac%ine; cate/ory

& 0 and Samsun/ %ave bottle nec6 cometition in $9 and E cate/ory

( $%e roduct is 8ell a8are and it is on to of mind of customer

* Customers are also no8 very c%oosy in buyin/ t%e roduct and it is

imortant for t%e comany to ma6e loyal customer of t%eir brand

48


49/53

RECOMMENDATIONS AND SUGGESTIONS

1. Dislay s%are s%ould be increased 8%ere t%ere is less t%an 5. as 0 also

believes t%at #JO DIK$TA $AI WO BIKTA $AI%4

2 Comany s%ould try to imrove service


50/53

LIMITATIONS

Every study %as certain limitations In my study; also t%ere 8ere certain

limitations; 8%ic% I could not able to solve

1 $%e researc% 8as conducted in a very small area

2 -y researc% 8or6 eriod 8itness t%e bi//est us and do8ns in roduct sale

of different brands; 8%ic% affected t%e ercetion of t%e customer $%is 8as

bi//est dra8bac6 of my study3 $ime factor 8as also imortant for me

4 I %ad only found t%e uer?middle class family to fill u t%e uestionnaire;

but /enerally; an avera/e middle class family 8as reuired for t%e study

5 $%e samle si:e is also very small 8%ic% reresent my researc% on

consumer be%avior

50


51/53

SOURCES OF DATA COLLECTED

888l/indiacom

888/oo/lecom

8888i6iediacom

+usiness 8orld

+usiness today

0 ma/a:ine

Economics times


52/53

C)*'ume! 'u!ve" ue'ti)**i!e

71 'ave you ever urc%ased any 0 consumer durableT

a) es

b)


53/53

75=%ic% consumer durable of 0 you %aveT

, C$9 ???????????????????

+ 0CD ???????????????????

C. EIDE,$"S ???????????????????

D. =,S'I

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