8/3/2019 Sales & Distribution Channel
1/81
1.1 INTRODUCTION
The present day Indian economy is viewed a highly competitive and
market oriented. At this s tate the success of any organization is total ly
depends on customer and h is sat is fac tion only . So , every bus iness
organization should see that the customer as sovereign of the market
who decides the fete of i t . Hence, i t is the responsibil i ty of any concern
to meet the requirements of cus tomers f rom t ime- to- t ime wi th greater
dynamism.
Customer sat isfaction is total ly intangible and i ts management is
very crucial aspect on the par t of the bus iness ent repreneurs . Making
such an intangible property in to tangible is great challenge among the
various organizations. This depends on customer orientat ion, customer
dynamism, t apping new avenues by the business unit , qual ity of the
product, price of the product, proper supply of materials , t imely ness in
supply, effective channel of distr ibution, customer treatment, after sale
service, product chiqueness professionalism in marketing strong grand
i mage , e ff ec ti ve packi ng s ys tem, and con ti nuous i mprovement i nbusiness and so on.
1
8/3/2019 Sales & Distribution Channel
2/81
1.2 NEE D FOR THE ST UDY :
Consumer sat is fac tion i s the mos t important object ive for any
manufactur ing concern to successfully market i t s products . Penna has
from gradually and would want to take a stock of the satisfaction level of
consumers and define areas where possible improvement may be made.
The research work has been therefore selected in this area.
The company which produces products doesnt give life to sustain
in competition without sales of products. So sales are important function
of the manufacturing company to get profi ts . Through sales only wealth
maximization if possible.
Distributions are also one of the important functions in marketing.
Through dis t r ibut ion only one company can sel l i t s products . Here the
dis tr ibution channel s contain the dealer s. Who are very near to the
customers and act as middlemen between the organizations. So there is a
need to study sales and distribute on strategies.
Distr ibution system includes distr ibution channels. Which are sets
of independent organizations involves in the process of making a product
(or) a service available for the consumption. Dist r ibut ion network is
necessary for smooth flow of goods.
2
8/3/2019 Sales & Distribution Channel
3/81
1.3 SCOPE OF THE STUDY:
The s tudy aims to measure sat is fact ion level of the dealers
regarding LG Electronics Limited. The area within which the study was
conducted regarding the information the primary data is collected in the
form of questionnaire collected from the dealers in Twin Cit ies. To sum
u p t he p ro je ct h ad w it h i n th e s co pe o f t he s tu dy i n th e a re a o f
PEREFORMANCE of SALES and DISTRIBUTION CHANNEL of LG
Electronics Limited in Twin Cities for a particular time.
1.4 OBJEC TIVES OF TH E STUD Y :
1. To assess the role of dealers in LG Electronics Limited.
2. To assess the channel performance in LG Electronics Limited.
3. To find dealers opinion on various issues of the present marketsituation and furthering (strengthening) channel effectiveness.
4. To offer suggestion in building effective channel s trategy to LGElectronics Limited
To know different brands which are preferred by customer in LG
3
8/3/2019 Sales & Distribution Channel
4/81
1.5 METHODOLOGY OF STUDY :
In view of the objectives of the study, an exploratory design
has been adopted. Fur ther the researcher also touched the descr ipt ive
r es ea rche r des ign and causa l ana ly si s t o r el at e bet ween d if fe rent
variables . Explora tory research i s one which l arge ly interpre ts the
available information on the study and i t lays emphasis on the analysis
and interpretation of the exiting and available information. This research
is general ly useful when we use the informat ion col lected f rom three
sources , viz. , s tudy of secondary sources , discuss ion wi th individuals
and analyzing the some specific case.
Sources of Data:
To perform the Research s tudy by Researcher , the sources of da ta
obtained are:
This data i s obtained by interact ing and interviewing the
dealers in Twin Cities.
This data is obtained directly from the company in the form
of broachers, charts, diagrams, document and other forms.
Data Collection Tool:Questionnaire:
This is one of the data collection tools . I t is quite popular
par ti cu la rl y i n cas e b ig enqui res. I t i s bei ng adopt ed by p ri va te
individuals , research worker, private and public organization and even
government . In this method, a quest ionnaire i s i ssued to the persons
conce rned wit h a r equest t o ans wer t he quest ions and r et ur n t he
questionnaire. A questionnaire consists of number of questions printed or
typed in a definite order or a form or set of forms.
The researcher used the structured questionnaire in which the questions
were:
4
8/3/2019 Sales & Distribution Channel
5/81
Open-ended questions
Close-ended questions
Dichotomous questions
Multiple choice questions
Sampling Design
The r es ea rche r has done h is r es ea rch s tudy on t he dea le rs o f LG
Electronics Limited to know their present sat isfaction and expectat ion
from this brand. The researcher selected the dealers of LG Electronics
Limited at HYDERABAD& SECUNDERABAD for this research study.
Sampling Plan
Sample size: Sample size consists of 100 dealers.
Sampling unit: The Sampling unit includes al l the dealers of LG
E le ct ro ni cs L im it ed p ro du cts p re se nt i n H YD ER AB AD &
SECUNDERABAD.
Sampling method: For collecting information from dealers , non-
probabilistic simple random sampling method is used.
Tools of analysis:
Th e da ta co lle cted tro ugh su rv ey ha s be en c arefu lly an d
meaningful ly analyzed by us ing well es tabl ished s tat i st ical tool and
techniques. Important statistical technique is percentage method.
5
8/3/2019 Sales & Distribution Channel
6/81
1.6 LIMITATIONS OF THE S TUDY :
The selec ted sample members are conspicuous and inconspicuous in
nature. So, there is chance to arise some errors in the courts of survey.
The errors may be as follows:
1. Respondents may not disclose the r ight informat ion, because the
researcher is very stranger to them.
2 . Respondent s may g ive p leasing answers to the r esearchers even
though it is not correct from the prospective.
3. The percept ional values l ike s tatus, not-disclosure of the correct
information and diff iculty in expressing their personal feeling to
an unknown researcher can bring wrong opinion poll ton f i l l ing
the questionnaire.
4. Since, the sample s ize i s smal l ; a perfect mix of the respondents
may not be avai l able for the r esearcher to conduct the opin ion
survey.
6
8/3/2019 Sales & Distribution Channel
7/81
1.7 CHAPTERIZATION :
1.Chapter-1 It includes Need for the study, Scope and objectives of the study,
the methodology of the study, Limitations and chapterization.
2.Chapter-II Present frame work regarding research design of the
study.
3.Chapter-III gives the brief account of industry profile and company profile and
background of the company.
4.Chapter-IV Data analysis and interpretation, this method is used to analyze and
interpretate the effectiveness of the data.
5.Chapter-V is devoted to compare the findings and suggesting on the
implementation of coca cola company.
Bibliography
Annexure
7
8/3/2019 Sales & Distribution Channel
8/81
Market:-
A m ar ke t, in g en er al , m ay b e d es cr ib ed a s a p la ce o r
geographical area where buyers and sellers meet and function, goods of
services are offered for sale, and transfers of t i t le of ownership occur.
F rom t he poi nt o f v iew o f economi cs , a mar ke t i s def ined as an
aggregate of the potenti al buyers for a product or serv ice . But , in
practice, the term market is used to denote any body of persons who are
in int imate business relat ion and carry on any extensive transaction in
any commodity.
Marketing:-
Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.
The present generation of producers is intel l igent in regard to the
application of procedures. They first want to find out what the consumers
want. Then they produce goods according to the needs of the consumers.
T he y r ea li ze d t ha t o nly s uc h p ro du cts c ou ld b e so ld t o th e b es ts at is fa ct io n o f t he u se rs a nd a t a p ro fi t to th e m ak er . F or t his
arrangement, however, the whole organization has to be rearranged in a
most complex manner.
Marketing starts and ends with the consumer:-
Marketing activity is concerned only with the flow of goods, from
the producer to the consumer.
In other words, to achieve maximum efficiency in marketing, there
must also be a f low of informat ion vis --vis the f low of goods . This
informat ion, for pract ical purpose, has to be col lected even before a
product i s p lanned. Subsequent information would a lso enable the
manufacturer to assess periodical changes that are required. That is why
i t i s very of ten remarked that marketing s tart s and ends with the
8
8/3/2019 Sales & Distribution Channel
9/81
consumer, with information f lowing form the consumer to the producer
and goods flowing back to the consumer from the producer.
Today they have a full-f ledged function added to marketing, viz.
Market information and Marketing Research. Under consumer oriented
marketing, it is highly essential to know what the consumer really wants.
This i s possib le only when proper informat ion i s co ll ec ted f rom the
consumers
A push s t rategy means a channel member di rects i t s promot ion
p ri mari ly a t t he middl e men t ha t a re t he meant l inks f or ward i n
distribution channel.
The product i s Pushed through the channel the producer wi l l
promote heavily to wholesalers which then also use a push strategy to
retailers in turn the retailers promote to consumers.
As market condi t ions change over t ime a company they shi f t product
growth strategies.
A company tr ies to sel l more of i ts present products to i ts present
markets. Supporting tactics might include grater spending on advert is ing
of personal selling. A firm continues to sell its present products, but to a
new market
This strategy sells for a company to develop new products to sel l to i ts
existing markets.
A company develops new products to sell to new markets.
Determining Intensity of distribution:
Distribution intensity ordinarily is thought to be a single decision.
However i f the channel was more than one l evel of middlemen the
appropriate intensity must be selected for each level.
9
8/3/2019 Sales & Distribution Channel
10/81
Intensive Selective Exclusive
Product sells its product through every available outlet in a market where
consumer might r easonable look for i t. Ult imate consumers demand
immediate sat is fact ion f rom convenience goods and wil l not defer
purchases to f ind a part icular brand. This intensive distr ibution is often
used by manufactures of this category of product.
A p roduct s el ls i ts p roduct t hr ough mul ti pl e but not a ll pos si bl e,
wholesalers and retailers in a market where a consumer might reasonable
look for i t . Selective distr ibution if appropriate for consumer shopping
goods.
The supplier agrees to se ll i ts product only to a s ingle wholesal ing
middlemen and retailer in a given market producer it is essential that the
retailer carry a large inventers.
Sales and Distribution strategy:
Sales and dist r ibut ion management const i tutes one of the most
important parts of marketing management. Exchange is the core, aspect
of market ing, and i t i s the sales and dist r ibut ion management which
facil i ties i t . Sales management has been defined as the management of a
f ir m per sona l s el li ng f unct ion. The i mpor tance o f t he s al es and
dist r ibut ion funct ion var ies across organizat ions depending upon i t s
na ture and veri ty of products , t arge t market. Consumer dens ity and
dispersion and the competi t ive practices among the other things. Sales
and distribution function is organized internally, externally or jointly.
10
Distribution Distribution Distributionthrough every through multiple through a single
whole selling
Reasonable But not all reasonable Middlemen and/Out let in a market Out lets in market or retaileinmarket
8/3/2019 Sales & Distribution Channel
11/81
Finding and communication with prospective buyer.
Bringing together the markets offering and the prospective buyer.
Reaching an agreement on pr ice and other terms of the offer so
that ownership and possession can be transferred.
Of the markets offerings, and his satisfaction generating potential.
Actual transfer of possession i.e. timely and safe delivery.
Of relevant consumers informat ion and revenue in exchange of
goods of services.
Selling
The basic task of marketing is to bring the buyers and the sel lers
together. Regardless of the desire one has to sell and the other to buy, no
exchange can take place unt i l each one knows the des i re of the other .
The funct ion of market ing is to ensure that the r ight product i s made
available at the place, in the r ight t ime and under the r ight impression to
the consumer.
Distribution of Consumer Market:
Five channels are widely used in marketing tangible products to ult imate
consumers:
Producer consumer: The shortest , s implest distr ibution channel
for consumer goods involves no middlemen. The producer may sell from
door to door of by mail . For ins tance , south-western company uses
college students to market its books on a house-to-house basis.
Producer retailer consumer: Many large retailers buy directly
from manufactures and agricultural products. To the chagrin of various
wholesaling middlemen. Walmart has increased i ts direct dealings withproducts.
Producer wholesaler retailer consumer: If there is a
t radi t ional channel for consumer goods , this i s i t , smal l retai lers and
manufactures buy the thousands f ind this channel the only economically
feasible choice.
11
8/3/2019 Sales & Distribution Channel
12/81
Producer agent retailer consumer: Instead of using
wholesalers , many producers prefer to use agent middlemen to reach the
retai l market , especial ly large scale retai lers . For example. Clorox uses
agent middlemen such as Eisenhart & wholesaler that distr ibute a wide
range of products to retailers. In turn, Dierbergs offers its assortment of
products to final c onsumers.
Distribution of Business Goods:
A variety of channels are available to reach organizations that
in corporate the products into their manufacturing process of use them in
t he ir ope ra ti ons. I n t he d is tr ibut ion o f bus ines s goods , t he t er ms
industrial distr ibutor and merchant wholesaler are synonymous. The four
common channels for business goods:
Producer user: This direct channel accounts for a greater dollar
volume of business products than any o ther d is tr ibution s truc ture.
Manufactured of large installat ions , such as ai rplanes , generators, and
heating plants, usually sell directly to users.
Producer industrial distributor user: producers of
ope ra ti ng s uppl ie s and s ma ll acces so ry equ ipment f requen tl y use
industr ial distr ibutors to reach their markets . Manufactures of building
materials and air condit ioning equipment are two examples of f irms that
make heavy use of industrial distributors.
Producer agent user: Firm without thei r own sales
departments f id this desirable channel. Also, a company that wants to
introduce a new market may prefer to use agents rather than its own sales
force.
Producer agent industrial distributors user:
This channel is s imilar to the preceding one. I t is used when, for some
reason, i t is not feasible to sel l through agents directly to the business
user. The unit sale may be too small for direct sel l ing. Of decentral ized
inventory may be needed to supply rapidly , in which case the s torage
services of an industrial distributor are required.
12
8/3/2019 Sales & Distribution Channel
13/81
Indian Distribution System:
I t i s also impor tant to assess how the dis t r ibut ion task is being
performed in India . This t ask can be undertaken by measuring the
number of functionaries in each class, their organizational s tructure and
their capital s tructure. The margins charged by them would be a function
of the quantum i f goods moved and the populat ion served by them and
services rendered by them and would also assist in the task if measuring
their performance. Dividing the members involved in each type of trade
we can briefly get an idea about the average productive capital required
in each class of t rade. Having assessed the inputs , s t ructure and s ize
their distr ibution al l over India we are now in la posit ion to assess how
the task is being performed in terms of output.
Distribution logistics:
Logist ics was a mil it ary t erm refer ring to comple te sys tem of
moving, supply ing and quar tering t roops . Businessmen broadened
logis t ics to include any type of t ranspor tat ion and s torage. Marketers
appl ied the term to mean the physical handing of products . They also
began employing the term physical distr ibution in place of logist ics.
The area of physical dist r ibut ion has received considerable at tent ion.
The attention was quite justified for a country such as ours because of its
traditional short supply markets of for the gaps often witnessed between
the demand and available of products. Prices of essential commodities of
da ily consumptions are part icu lar ly amenable to any d is locat ion in
physical distr ibution. If any evidence is required, we need the concerns
and anxieties associated with news of strike in Rail and road transport.
Role of Distribution:
13
8/3/2019 Sales & Distribution Channel
14/81
The major role that dis t r ibut ion pays in any economy is that i t
constitutes the process by which goods and services become available for
consumpti on . Manuf ac tu re rs o f goods and s er vi ces s peci al ize i n
generating structural of form uti l i ty for their products, in the sense that
t hey c reat e a uni que s et o f demand s at is fi er s i n t he f or m o f t he ir
o ff er ing. The act ua l mas s s ca le del iver y o f t hese o ff er ings t o t he
consuming publ ic requires a di f ferent kind of special ized ef for t . This
generates t ime, place and possession uti l i ty. In other words, you cannot
obtain and consume a f inalized product unless the product is t ransported
to a place where you can get access to i t ; s tored t i ll you are ready to buy
it and ult imately exchange for money so that you can gain possession of
it.
Physical Distribution and Channels of Distribution:
If distr ibution could be treated as a whole function of marketing,
physical distr ibution and channels of distr ibution. I t is found that these
two terms are used, sometimes, interchangeably. Channels of distribution
refer, primarily, to the middlemen of intermediary marketing instructions
which perform certain market ing funct ions . More than performing the
function , these ins ti tu tions t ry to ga in access to the t arge t market .
Physical distr ibution, on the other hand, concerns with material aspects
of the f low of goods to the consumers. I t inc ludes t ransportat ion ,
storage, warehousing, packaging, etc. it is technical function in the sense
that it ensures availability of products at the right time, at the right place
and in the r ight form. The term is used often in aboard sense to include
channels of distribution also.
Service to the manufacturers:
The wholesaler provides perpetual and definite customers to the
man ufa cture rs. He e ith er pu rch ases larg e qu an tities fro m th e
manufacturer and sells them to the retai lers , of col lects smal l orders
from a number of retailers and places a bulk order with the manufacturer.
The manufacturer is thus relived of the trouble and expense of collecting
14
8/3/2019 Sales & Distribution Channel
15/81
a large number of small orders. He collects and provides the information
required for planning the production ahead. He maintains stock and thus
a ss ur es e qu ita bl e d is tr ib ut io n. H e p la ce s b ulk o rd er s w it h t he
manufacturer and thus enables him to concentrate on production and reap
the benefi ts of l arge- sca le operat ions. He shoulders a l l marketing
functions\
Position of the Wholesalers in modern marketing:
In spite of gloomy forebodings common nowadays, the wholesaler
s t i l l manages to hold his pos i t ion because of the very real services he
renders . But the wholesaler today, as compared wi th that of a hundred
years ago, is a much less important member of the business fraternity.
The following are the impor tant factors responsible for reducing his
importance:
i . Growing d isp leasure of thi s system of channel in al l quarter s.
i i. Growt h o f l ar ge r et ai l s t or es s uch as cha in s to res, Depar tmen ta l
stores, super markets, etc.
iii . M anu fac tu rers d esire to e sta blish d irect c on tra cts w ith the
customers.
iv. Development of tr anspor t and communication sys tems .
v . Frequent and unexpected changes in s ty le and fashion .
v i. Emergence of new and bi gger market s.
v ii . Growth of consumers co-opera tive in a lmos t al l fi elds .
Transportation:
Transportat ion is necessary function of marketing because most of
the markets are geographically separated from the areas of production.
Majority of manufacturing plants are far away from their most important
markets because of var ious factors . Al l goods are not ut i l ized at the
place of their origin. They require some kind of transportat ion to create
place uti l i ty. Holtz Claw vividly puts the importance of transportat ion
i n t he f ol lowi ng l iens : Mi nera ls o f o ther r aw mat er ia ls a re t o be
t ranspor ted f rom the place of ext ract ion of product ion to the factory ,
15
8/3/2019 Sales & Distribution Channel
16/81
crops are to be car r i ed f rom the farm to the loca l market or pr imary
market and from there to the places of consumption. Finished products
are to be transported from the warehouse to the wholesalers warehouses,
from warehouse to the retai l dealer , and from the dealer to the ult imate
consumer. The various modes of transport fall under the three categories:
Road transport
Rail transport
Water transport
Air transport
Pipeline transport
3.1 INDUSTRY PROFILE
16
8/3/2019 Sales & Distribution Channel
17/81
Electronics is the study of the flow of charge through various materials anddevices such as, semiconductors, resistors, inductors, capacitors, nano-structures,and vacuum tubes. All applications of electronics involve the transmission ofeither information or power. Although considered to be a theoretical branch ofphysics, the design and construction of electronic circuits to solve practical
problems is an essential technique in the fields of electronics engineering andcomputer engineering.
The study of new semiconductor devices and surrounding technology issometimes considered a branch of physics. This article focuses on engineeringaspects of electronics. Other important topics include electronic waste andoccupational health impacts of semiconductor manufacturing.
Consumer Durables(Data table headings are shown Year-wise in descending order)
Air Conditioners
Bicycles
Crystal Glass
Domestic Electrical Appliances
Gems and Jewellery
Glass Products
Kitchen Equipment
Liquefied Petroleum Gas Cylinders
Microwave Ovens
Refrigerators
Sewing Machines
Sunglasses
17
8/3/2019 Sales & Distribution Channel
18/81
Toys and Games
Washing Machines and Vacuum Cleaners
Watches and Clocks
White Goods
3.2 COMPANY PROFILE :
18
8/3/2019 Sales & Distribution Channel
19/81
About LG
Established in 1958, LG Electronics, Inc. (LG) is a global leaderand technology innovator in consumer electronics, home appliancesand mobile communications, employing more than 82,000 peopleworking in over 110 operations including 81 subsidiaries around theworld.
Comprising four business units - Mobile Communications, DigitalAppliance, Digital Display and Digital Media with 2006 global sales ofUSD 38.5 billion - LG is the world's leading producer of CDMA/GSMhandsets, air conditioners, front-loading washing machine, opticalstorage products, DVD players, flat panel TVs and home theater
Corporate
Name
LG Electronics Inc.
Established October 1, 1958 (As a private Company)
Corporate
Office
LG Twin Towers20, Yeouido-dong, Youngdungpo-gu, Seoul, Korea 150-721Tel: 82-2-3777-1114URL: http://www.LGE.com
Vice Chairman
& CEO
Yong Nam
Business Area
and
Main Product
Mobile Communications Company
CDMA Handsets, GSM Handsets, 3G Handsets
Monitor, PDP Module, OLED Panel, USB Memory
Digital Media Company
Home Theater System, DVD Recorder, Super Multi DVDRewriter, CDRW, Notebook PC, Desktop PC, PDA, PDAPhone, MP3 Player, New Karaoke System, Car Infotainment
Number of
Employees
82,772 (29,948 in Korea/ 52,824 overseas) - as of 2006
19
http://www.lge.com/http://www.lge.com/8/3/2019 Sales & Distribution Channel
20/81
Financial Highlights (in billion won)
2004 2005 2006 2007 2008 2009
SALES 16,601 18,602 20,176 24,659 23,774 23,170Domestic 6,084 6,654 4,793 5,086 5,509 5,947
Export 10,516 11,948 15,383 19,573 18,264 17,223
Ordinary
Profit
OrdinaryProfit
573 675 836 1,860 741 261
History
1958 Founded as Gold Star 1960sProduces Koreas first radios, TVs, refrigerators, washing machines and
air conditioners
1995 Renamed LG ElectronicsAcquires US-based Zenith
1997 Worlds first CDMA digital mobile handsets supplied to Ameritech andGTE in U.S. Achieves UL certification in U.S. Develops worlds first ICset for DTV
1998 Develops worlds first 60-inch plasma TV
1999 Establishes LG. Philips LCD, a joint venture with Philips2001 Launches worlds first internet refrigerator Exports synchronous IMT-
2000 to Marconi Wireless of Italy Significant exports to Verizon Wirelessin U.S.
2002 GSM mobile handset exports to Russia, Italy and Indonesia Establishesmarket leadership in Australian CDMA market Launches worlds firstinternet washing machine, air conditioner, and microwave oven
2003 Under LG Holding Company system, spins off to become LG Electronicsand LG Corporation Full-scale export of GPRS color mobile phones toEurope Establishes CDMA handset production line and R&D center in
China2005 Enters North-European and Middle East GSM handset market Achieves
monthly export volume above 2.5 million units (July) Top global CDMAproducer
2006 EVSB, the next-generation DTV transmission technology, chosen to be theUS/Canada Industry standard by the US ATSC Commercializes worldsfirst 55 all-in-one LCD TV
20
8/3/2019 Sales & Distribution Channel
21/81
Commercializes worlds first 71 plasma TV Develops worlds firstSatellite- and Terrestrial-DMB handsets
2007 Becomes fourth-largest supplier of mobile handsets market worldwideDevelops worlds first 3G UMTS DMB handset, 3G-based DVB-H andMedia FLO phones, DMB Phone with time-shift function, and DMBnotebook computer Establishes LG-Nortel, a network solution jointventure with Nortel
2008 LG Chocolate, the first model in LGs Black Label series of premiumhandsets, sells 7.5million units world wide Develops the first single-scan60 HD PDP module Establishes the s trategic partnership with ULAcquires the worlds first IPv6 Gold Ready logo
2009 Launches the industry-first dual-format high-definition disc player anddrive
2010 Launches soundless washing machines
Introduces new global brand identity: "Stylish design and smarttechnology, in products that fit our consumer's lives."
CEO PROFILE
Biography
Yong Nam was appointed Vice Chairman and CEO of LG Electronics
effective January 1, 2007. His appointment signifies LG's desire to achievethe status of a highly profitable, technological leader with strong brandpower.Mr. Nam honed his st rong bus iness ins ight dur ing his 30 years of experience with LG Electronics, LG Corporate and LG Telecom. He is well-known in the industry for his strategic outlook, in-depth IT experience andglobal perspective.
21
8/3/2019 Sales & Distribution Channel
22/81
Prior to his appointment, Mr. Nam served as Head of Strategic Business forLG Corporation and was responsible for overall s trategic businessinitiatives. He directly supported the LG Group chairman on a variety ofbusiness issues, including telecommunications.
Mr. Nam served as the President and CEO of LG Telecom from 1998 until2006. Under his leadership, the company's revenue increased fivefold from$560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7mil lion; and profi ts grew to around $250 mi ll ion in 2005. He wasinstrumental in introducing the world first mobile internet service, ez-i, andin commercializing mobile banking service Bank ON, now the number oneconvergence service in Korea.
In 1997, he assumed additional responsibilities, overseeing the Executive
Off ice for S trategic Projec ts , LG's corpora te-level new bus inessdevelopment arm. Later that year, he led the Multimedia Division of LGElectronics as Vice President and transformed the division into a profitablebusiness within just one year.
Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistantto the Group Chairman, he ran the in-house team that drove changemanagement. He also led corporate-wide efforts to achieve operationalexcellence and redefine LG's strategic direction.
Mr. Nam's career at LG began in 1976 when he joined LG Electronics in theoverseas business planning division. As part of this role, he spent sevenyears in the U.S. in several management positions centered on marketingand sales, which helped him, develop a global perspective on LG's business.
Mr. Nam is a graduate of Seoul National University, and is fluent inEnglish and Japanese in addition to his native Korean. He and enjoys golf,reading and hiking during his leisure time.
Yong Nam was appointed Vice Chairman and CEO of LG Electronicseffective January 1, 2007. His appointment signifies LG's desire to achievethe status of a highly profitable, technological leader with strong brandpower.
Mr. Nam honed his strong business insight during his 30 years ofexperience with LG Electronics, LG Corporate and LG Telecom. He is well-known in the industry for his strategic outlook, in-depth IT experience and
22
8/3/2019 Sales & Distribution Channel
23/81
global perspective.
Prior to his appointment, Mr. Nam served as Head of Strategic Business forLG Corporation and was responsible for overall strategic businessinitiatives. He directly supported the LG Group chairman on a variety of
business issues, including telecommunications.
Mr. Nam served as the President and CEO of LG Telecom from 1998 until2006. Under his leadership, the company's revenue increased fivefold from$560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7mil lion; and profi ts grew to around $250 mi ll ion in 2005. He wasinstrumental in introducing the world first mobile internet service, ez-i, andin commercializing mobile banking service Bank ON, now the number oneconvergence service in Korea.
In 1997, he assumed additional responsibilities, overseeing the ExecutiveOff ice for S trategic Projec ts , LG's corpora te-level new bus inessdevelopment arm. Later that year, he led the Multimedia Division of LGElectronics as Vice President and transformed the division into a profitablebusiness within just one year.
Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistantto the Group Chairman, he ran the in-house team that drove changemanagement. He also led corporate-wide efforts to achieve operationalexcellence and redefine LG's strategic direction.
Mr. Nam's career at LG began in 1976 when he joined LG Electronics in theoverseas business planning division. As part of this role, he spent sevenyears in the U.S. in several management positions centered on marketingand sales, which helped him develop a global perspective on LG's business.
Mr. Nam is a graduate of Seoul National University, and is fluent inEnglish and Japanese in addition to his native Korean. He and enjoys golf,reading and hiking during his leisure time.
Apr. 19, 2010
LG ELECTRONICS REPORTS FIRST QUARTER 2010 EARNINGS
RESULTS
23
8/3/2019 Sales & Distribution Channel
24/81
LG Electronics (LG), a leader in consumer electronics and mobilecommunications, announced un-audited earnings results of the three month per iod ended March 31, 2009. Amount in Korean Won (KRW) aretranslated into US dollars (USD) at the average rate of three month periodin each quarter, which was KRW 939 per US dollar (2010 1Q), KRW 938per US dollar (2009. 4Q, QoQ), KRW 977 per US dollar (2009. 1Q, YoY).
To accommodate comprehension of LGs global business, the companyreleased financial earnings in parent format plus additional consolidatedearnings of each division and overseas subsidiaries.
Sales and Profit
For the quarter, the company posted a revenue of KRW 6.03 trillion (USD6.43 billion) on a parent basis, increased by 4.0% from a year earlier
thanks to robust sales of premium handsets and home appliances. On aconsolidated basis which includes sales of LGs overseas subsidiaries,revenue reached KRW 9.59 trillion (USD 10.22 billion), increased by 8.3%from the previous year.
Operating profit was KRW 173 billion (USD 184 million) on a parent basiswith a margin of 2.9% compared to KRW 191 billion (USD 204 million)from a year earlier primarily due to a sluggish display and media businessin spite of a remarkable turnover in mobile business and solid performanceof appliance business. Situation on a consolidated basis was KRW 28billion (USD 29.4 million) hurt by overseas subsidiaries operating loss of
KRW 133 billion (USD 142 million).
Net Profit was a loss of KRW 123 billion (USD 131 million) on a parent basis mainly due to loss in equity method of KRW 193 billion (USD 205million) from LG. Philips LCD and overseas subsidiaries.
Consolidated performances by business division are as follows;
Mobile Communication Company recorded sales of KRW 2.51 trillion (USD2.67 billion), 14.7% higher than a year earlier. Revenue from the handsetbusiness rose 17.8% to KRW 2.35 trillion (USD 2.50 billion) from KRW 2.00trillion (USD 2.05 billion). Consolidated sales based total shipments were15.8 million units, compared to 14.1 million units YoY and 17.9 million units
QoQ. Success of Shine phone and DMB line-ups in Korea pushed upshipments 46% QoQ, and continued high demand of premium Chocolate phone in GSM open-markets led a shift of 28% QoQ. Strong growth inWCDMA phones sales was realized in Korea and the United States.
24
8/3/2019 Sales & Distribution Channel
25/81
Operating margin was 4.7%, a bit less than 6.6% on a parent basis, butrecovered from a loss of 2.6% from the first quarter of 2006.
Digital Appliance Company sales rose 15.1% to KRW 2.94 trillion (USD
3.13 billion) from a year earlier, thanks to growth in premium productlines. Improvement of an operating profit was remarkable. KRW 169billion (USD 17.9 million) was 43.6% higher than a year earlier and 37.1%from the previous quarter. Operating margin increased 1.1% point to 5.7%despite won appreciation and rise in material costs. On a parent basis themargin rose 1.8% point to 12.0%.
Digital Display Company sales including plasma display panels and flatpanel TVs and monitors rose 1.5% to KRW 2.75 trillion (USD 2.93 billion)from the previous year, but posted an operating loss of KRW 262 billion
(USD 2.79 million). Sales from Digital Media Companys media and ITproducts posted KRW 1.38 trillion (USD 1.47 million), 4.7 % down from ayear earlier. Slow in display and media business stems from seasonality plus intensified price erosion, but mainly due to lower efficiency incapacity of plasma display panels.
Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned
subsidiary of LG Electronics, South Korea. In India for a decade now,
25
8/3/2019 Sales & Distribution Channel
26/81
LG is the market leader in consumer durables and recognised as a
leading
Establ ished in 1997, LG Elect ronics India Pvt . Ltd. , i s a whol ly owned
subsidiary of LG Electronics, South Korea. In India for a decade now, LG
is the market leader in consumer durables and recognised as a leading
te ch no lo gy in no va to r in t he in fo rm at io n t ec hn ol og y a nd m ob il e
communicat ions bus iness . LG is the acknowledged t rendset ter for the
consumer durable industry in India with the fastest ever nationwide reach,
latest global technology and product innovation.
One of the most formidable brands, LGEIL has an impressive portfolio of
Consumer Elec tronics , Home Appl iances, GSM mobile phones and IT
products.
LG E lect roni cs I nd ia Pvt . L td ., a who ll y owned s ubsi di ar y o f LG
Elect roni cs , Sou th Kor ea was e st ab li shed i n J anuary , 1997 a ft er
c learance f rom the Fore ign Inves tment Promot ion Board (FIPB).
The t rend of beat ing indust ry norms s tart ed wi th the fas test ever -
na t i onwi de l aunch by LG i n a pe r i od o f 4 and 1 / 2 mon t hs w i t h t he
commencement of operations in May 1997. LG set up a state-of-the art
manufactur ing faci l i ty at Greater Noida, near Delhi , in 1998, wi th an
i nves tmen t o f Rs 500 Crores. Thi s f ac il it y manuf ac tu red Col our
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.
During the year 2001, LG also commenced the home production for i ts
eco-fr iendly Refrigerators and established i ts assembly l ine for i ts PC
Monitors at i ts Greater Noida manufacturing unit .The beginning of 2003
s aw t he r oll o ut o f t he f irs t lo ca ll y ma nu fa ctu re d D ir ec t C oo l
Refrigerator from the plant at Greater Noida.
In 2004, LGEIL also up i t s second Greenf ield manufactur ing uni t in
26
8/3/2019 Sales & Distribution Channel
27/81
Pune, Maharashtra that commences operations in October 2004. Covering
over 50 acres , the faci l i ty manufactures LCD TV, GSM Phones , Color
Televisions, Air Condi t ioners , Refrigerators , Microwave Ovens Color
Monitors.
Both the Indian manufactur ing uni ts has been des igned wi th the lates t
technologies at par with international s tandards at South Korea and are
one of the most Eco-fr iendly units amongst al l LG manufacturing plants
in the world.
LG has been able to craft out in ten years, a premium brand posit ioning
i n t he I nd ian mar ke t and i s t oday t he mos t p re fe rr ed b rand i n t he
segment.
Vision:LG Elect ronics i s pursuing the vis ion of becoming a t rue global
digital leader , at tracting cus tomers wor ldwide through i t s innovative
products and des ign. The companys goal i s to rank among the top 3
consumer electronics and telecommunications companies in the world by
2010. To achieve this , we have embraced the idea of Great Company,
Great People , r ecognizing tha t only grea t people can crea te a grea t
company.
27
8/3/2019 Sales & Distribution Channel
28/81
History& corp. milestones
1958
Gold Star (todays LG
Electronics) established
1959
Koreas first radio
produced
1962
Radio exported to the US
and Hong Kong as Koreas
first
1965
Koreas first refrigerator
produced
2000
LG Information & Communications merged
The worlds first Internet-enabled
refrigerator launched Global sales of
refrigerators reached the number one position
2001
Asynchronous IMT-2000 equipment
commercialized The worlds first Internet
enabled washing machine, air conditioner,
and microwave oven launched LG. Philips
Displays, a joint venture with Philips
established
2002
Under the LG Holding Company system, the
28
8/3/2019 Sales & Distribution Channel
29/81
1966
Koreas first black & white
TV produced
1968
Koreas first air conditioner
produced
1969
Koreas first washing
machine produced
1974
Gold Star Communications
went public
1977
Color TV produced
1978Exports surpassed US$100
million, a first for Koreas
electronics industry
1980
First EU sales subsidiary in
Germany (LGEWG)
established
1982
Color TV plant established
in the US in Huntsville,
Company spun off to LG Electronics (LGE)&
LG Electronics Investment (LGEI) The first
home network system commercialized in the
global market
2003
Worlds first synchronous-asynchronous
IMT-2000 mobile phone developed The
worlds first 76-inch Plasma TV developed
CDMA mobile handsets took the largest
share in the US and world CDMA market
Launched the worlds first Super Multi DVD
Rewriter
2004
EVSB, the next-generation DTV transmission
technology, chosen to be the US/Canada
DTV transmission standard by the US ATSC
All-in-one LG 55-inch LCD TV, the worldsfirst and largest among LCD
TVs, commercialized The worlds largest and
first 71-inch Plasma TV commercialized The
worlds first terrestrial DMB phone
developed Developed Wireless Speaker
Home Cinema System
2005
The worlds first DMB notebook
commercialized The worlds slimmest TV
commercialized The worlds largest
102-inch Plasma TV developed LG and
29
8/3/2019 Sales & Distribution Channel
30/81
Alabama
1984
Sales surpassed 1 trillion
Won
1986
European-standard VCR
plant established in
Germany
1989
Sales subsidiary and a joint
production subsidiary
established in Thailand
1990
Ireland-based design
technology center
established
1993
With the establishment of
Huizhou subsidiary in
China(LGEHZ), marketing
in China took full swing
1995
Company name changed to
LG Electronics and US-
based Zenith acquired
Nortel Networks agreed to establish a joint
venture for telecommunication network
equipment Satellite-based DMB phone
commercialized The largest share seized in
the global CDMA market
2006
Launched the LG Shine, the second handset
in the Black Label Series Globally launched
the steam washing machine and interactive
TV refrigerator Developed the
world's first 100-inch LCD TV Launched the
world's largest Full HD 102-inch Plasma TV
(1080p) Developed the world's first dual-
format high-definition Disc
Player& Drive
2007
Launches the industry's first dual-format,high-definition disc player and drive
Launches 120Hz Full HD LCD TV
Demonstrated the world-first MIMO 4G-
Enabled technologies with 3G LTE Won
contract for GSMA's 3G campaign
2008
Introduces new global brand identity:
"Stylish design and smart technology, in
products that fit ou r consumer's lives."
30
8/3/2019 Sales & Distribution Channel
31/81
1997
40-inch Plasma TV and the
worlds first IC set for
DTVs developed India
production subsidiary
(LGEIL) established
1998
Worlds first 60-inch
Plasma TV developed
1999
LG. Philips LCD
established
Facts& figures:
Business Areas & Main Products
CategoryMain
ProductsConsumer
Electronics
LCD TV , Plasma Display , Display Panel, Color
Television, Home Theatre System, Music system,
DVD Recorder/Player, MP3 & MP4 Player
Home Appliances
Room Air Conditioner, Commercial Air
Conditioner , Refrigerator, Washing Machine,
Dishwasher, Microwave, Vacuum Cleaner
Computer ProductsLaptop, Personal Computer, LCD monitor, CRT
monitor, Optical Storage Devices
Mobile PhonePremium trend setter phone , Camera Phone , Music
Phone , Color Screen GSM Handset
31
8/3/2019 Sales & Distribution Channel
32/81
Lg business domain:
THE DIGITAL FUTURE OF LG
Mobile communications, digital appliances, digital displays, and digital
media - LG is paving the way for the future.
Mobile Communications
LG is a global leader in mobile
co mmu nic atio ns, spe cializ in g in
UMTS, CDMA, and GSM hands et s.
Thanks to i t s wide range of wired and
wireless op tio ns, the c omp any is
becoming a force to be reckoned wi th
on the international market.
In India LG is target ing GSM handset
b us in es s i n p re mi um t re nd s ett er
segment , Camera & music segment &
color screen segment.
32
8/3/2019 Sales & Distribution Channel
33/81
Digital Appliances
LG changing homes in many ways,
offering customers exceptional value
and convenience. Innovative digital
appliances from 100% washer dryer
with direct drive technology, built-in
LCD TV refrigerator, Lightwave
cooking oven (solardom) to artcool
split air conditioner illustrate LG's
commitment to digital convergence.
Digital Display
LG o ffe rs a w ide ran ge o f d igitaldisp la y pro du cts, eq uipp ed with
customer-oriented designs and
technologies . With i t s LCD TVs, Ful l
HD Plasma TVs, Ultra-slim Color TVs,
LCD monitors LG is pull ing out al l the
s to ps t o r em ai n th e f ro nt ru nn er i n
today's digital display industry.
Digital Media
LG has a great interest in digital media
a nd i s c on tin ua ll y d ev el op in g a nd
producing digital convergence products
that promise to enr ich the l ives of i t s
customers. Its main focus is on
p roduci ng h igh- de fi ni ti on , qua li ty
products in a va riety of areas.
33
8/3/2019 Sales & Distribution Channel
34/81
THE LG BRAND COMPRISES FOUR BASIC ELEMENTS: VALUES,
INNOVATION, PEOPLE, AND PASSION.
Positioning Statement
LG strives to enhance the customers life (and lifestyle) with intelligent
features, intuitive functionality, and exceptional performance. Choosing
LG is a form of self-expression and self-satisfaction. Our customer will
take pride in owning the amazing and take comfort in knowing he/she
made a smart, informed decision.
Brand Platform The LG brand comprises four basic elements: Values, Innovation,
People, and Passion.
34
8/3/2019 Sales & Distribution Channel
35/81
" LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO
PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL
MAKE YOUR LIFE GOOD.
Our s logan, 'Li fe 's Good' bes t expresses our brand's values , promises ,
benefi ts and personali ty. I t is an ult imate expression for what our brand
stands for and what we str ive to deliver continuously. LG's delightfully
smart products will make your life good.
High resolution image / eps,51.8KB
Low resolution image / jpg,410KB
The LG Electronics Life's Good signature consists of the LG logo, seal ,and the s logan, "Life 's Good" set in Char lo tt e Sans typeface curved
around t he LG s ymbol. The cur vi ng o f t he s logan r ei nf or ces LG' s
personality and uniqueness.
The consis tent usage of this s ignature clear ly es tablishes the unique
identi ty of the company and unifies every division and product from LG
Electronics across the globe.
" THE FACE OF THE FUTURE. FIND OUT ABOUT THE MEANING
AND INSPIRATION BEHIND LG'S LOGO DESIGN.
The let ters "L" and "G" in a ci rcle symbol ize the wor ld, future, youth,
humanity, and technology. Our philosophy is based on Humanity. Also, it
35
http://www.in.lge.com/images/Life'sGood_BI.ziphttp://www.in.lge.com/images/Life'sGood_BI_eps.zip8/3/2019 Sales & Distribution Channel
36/81
represents LG's ef for ts to keep close relat ionships wi th our cus tomers
around the world
.
The symbol consists of two elements: the LG logo in LG Grey and the
stylized image of a human face in the unique LG Red color. Red, the
main color, represents our friendliness, and also gives a strong
impression of LG's commitment to deliver the best. Therefore, the shape
or the color of this symbol must never be changed.
High resolution image / ai,87.6KB
Low resolution image / jpg,40.0KB
Design
The circle symbolizes the globe. The stylized image of a smiling face in
the symbol conveys friendliness and approachability. Overall, LGs
symbol represents the world, future, youth, humanity, and technology.
One eye
Goal-oriented, focused, confident.
Upper- right hand space
Intentionally left blank and asymmetric, which represents LG's creativity
and adaptability to changes.
Colors
36
http://www.in.lge.com/images/lglogo.ziphttp://www.in.lge.com/images/lglogo_ai.zip8/3/2019 Sales & Distribution Channel
37/81
LG Red, the main color, symbolizes friendliness, and also gives a strong
impression of LG's commitment to be the best. LG Grey represents
technology and reliability. Brand Identity
Learn about the meaning behind the LG brand.
Product Recycling: Take Back Policy
Though telecommunication service
providers , mobile phone retai l shops and
some supermarket chains offer the
possibility of returning used mobile phones
and their accessories for reuse or
recycl ing, i t i s not a common pract ice in
today' s soc ie ty . LG Elec tronics p lans to
m ak e i t m uc h e as ie r f or c on su me rs t oreturn thei r end-of- li fe or used phones.
In In dia, the d raft rules fo r E-wa ste
(Management and Handling) Rules 2008
have been notified by the Central
Government . Though the said rules have
not been finalized as yet, but since
5th June 2009, we have voluntar ily and pro-actively made avai lable 50
mobil e phone d rop- of f poi nt s and a re expandi ng t he Count ry l evel
access ibi l i ty of take-back channels to al l of our cus tomers . To maximize
resource efficiency through mobile phone recycling, LG Electronics works
closely with al l mobile phone supply chains including telecommunication
37
8/3/2019 Sales & Distribution Channel
38/81
service providers, distributors, merchandisers customers, and the recycling
industry.
Guidance for the disposal of End of Life Products:
Consumers could contr ibute to resource conservat ion
and prevent potenti al envi ronmenta l problems by a
s imple ac tion the proper deposi ting of the i r o ld
Mobiles. Electronic waste is to be collected separately
from the general waste stream via designated collection
faci li ti es appoin ted by the government or the loca l
authorities as per the said draft rules.
Mobile Phone Voluntary Take Back:
As you are no doubt a l r eady aware , the
responsibili ty of the environment
protection has accelerated the expansion
of end-of-life product take-back
regula tions throughout the country. At
present, many company in various regions
are trying to f inalize their own take-back
poli cy . LG Elec tronics India has been
involved in the process of es tabli sh ing
such policy much ahead of the draft rules
being f inal ized and has appreciated the
int roduct ion of take-back sys tems by the
Central Government.
Recycling Mobile Phones:
Many customers might think that end-of-life mobile phones are worthless,
but they still contain many reusable or recyclable materials. This means
that leaving old phones in your desk drawer is a huge waste of valuable
resources. Let 's see how all parts of mobile phone could be recycled*.
1)Valuable metals are used as component materials
for the circuit board, LCD module, and camera
module.
38
8/3/2019 Sales & Distribution Channel
39/81
1)Plastic materials are used for structural
components such as the case and cover.2)The plast ic materials that have been collected are
recycled as energy resources after going through aheat recovery process. Alternatively , they can be
used as a form of recycled plast ic once they have
been broken down and processed.3)Recycled plast ic can be used to produce products
such as t ra ff ic cones , p las ti c f encing , and car
bumpers.
1) It i s important to coll ec t ba tt er ies separa te ly ,
given the variety of batteries that are used. Li-Ion
batteries are frequently used in mobile phones.2)Cobal t can be col lected once the bat ter ies have
been pret rea ted to avoid the r isk of explos ion
during the recycling process.3)I t is possible to sel l the cobalt that is collected or
use i t a s a r aw mat er ia l f or p roduct s s uch as
padlocks and speakers.
1)Paper is the main component used in packaging.
2)Paper can be recycled.
3)I t i s then used as recycled paper or in products
made of paper
*the above usages are only suggestive and may not necessarily mean about
the current usage
This initiative is a voluntary effort by us towards the first step towards a
cleaner and greener earth. This move is one of the ways to show that we are
concerned and thus we request all our customers to join this movement to
make it successful by way of contributing their used handsets.
39
8/3/2019 Sales & Distribution Channel
40/81
Mobile Phone India Network:
You can f ind det ai ls o f y our nea rest mob il e phone col lect ion poi nt ,
court es y o f LG E lect roni cs , and get val uabl e i nf or mati on about t he
coll ect ion of end-of -l if e e lec tronic products in your r egion , inc luding
mobil e phones. The par ti ci pa ti on i n t hi s movement i s w it hout any
obligation or consideration.
Mobile Collection Center Details
LG National Take Back Recycling Program:
Vendor : Attero RecyclingTo protect the environment LG Electronics India has
p ar tn er ed w ith A tt ero R ec yc li ng . A tt er o i s a n
author ized e-waste recycler recognized by MoEF.
Let us save the environment for a better tomorrow. We
urge you to jo in us and conver t your e-was te to e-
goods.
4.1DATA ANALYSIS & INTERPRETATION :
1) How long have you been dealing with LG Electronics Limited?a)
8/3/2019 Sales & Distribution Channel
41/81
Interpretation:
From the above table and graph the number of responding are 6-years
8%(8),
8/3/2019 Sales & Distribution Channel
42/81
Inference:
Maximum number of respondents have 60% of the dealers with 3-6 years
experience.
2) How do you feel the companies image?a) Highly satisfiedb) Satisfiedc) Neutrald) Dissatisfied
Dealers OpinionNumber of
respondentsPercentage
Highly satisfied 30 30
Satisfied 60 60
Neutral 10 10
Dissatisfied 0 0
Total 100 100
42
8/3/2019 Sales & Distribution Channel
43/81
Interpretation:
43
8/3/2019 Sales & Distribution Channel
44/81
From the above table and graph the number of responding are
highly satisfied 30%(30),satisfied 60%(60),neutral10%(10),dissatisfied
0%(0).
Inference:-
Maximum number of the respondents feel satisfied
3)How to customer more satisfaction in this field?a) Brand nameb) Pricec) Qualityd) Usages
Dealers opinion Number of
respondents
Percentage
Brand name 12 12
Price 4 4
Quality 76 76
Usages 8 8
Total 100 100
44
8/3/2019 Sales & Distribution Channel
45/81
Interpretation:
From the above table and graph the number of responding are brand
name 12%(12),price 4%(4),quality 76%(76),usages8%(8).
45
8/3/2019 Sales & Distribution Channel
46/81
Inference: -
Maximum number of respondents are satisfied with the quality.
4) How customers came to your shop?a) By your influenceb) By friendsc) By advertisingd) By brand name
Dealers opinion Number of
respondents
Percentage
By your influence 16 16
By friends 16 16
By advertising 16 16
By Brand Name 52 52
Total 100 100
46
8/3/2019 Sales & Distribution Channel
47/81
Interpretation:
47
8/3/2019 Sales & Distribution Channel
48/81
From the above table and graph the number of responding are by you
influence 16%(16),by friends 16%(16),by advertising 16%(16),by brand
name 52%(52).
Inferenc e: -
Maximum number of respondents were come to shop By Brand
Name.
5) Do you face any difficulty in dealing with the customers?a) Yesb) NoIf yes please specify----------
Dealers opinion
Yes
No
total
48
0
20
40
60
80
100
120
yes no total
No. Of. Respondents
Percentage
8/3/2019 Sales & Distribution Channel
49/81
Interpretation:
From the above table and graph the number of responding are yes
30%(30),no 70%(70).
Inferenc e: -
Maximum number of respondents are not facing problem while
dealing with customer.
49
8/3/2019 Sales & Distribution Channel
50/81
6) Do you face stock out problems for LG Electronics Limited?a) Frequentlyb) Rarelyc) Nod) yes
Dealers opinion Number of
respondents
Percentage
Frequently 0 0
Rarely 10 10
No 90 90
yes 0 0
Total 100 100
50
0
20
40
60
80
100
120
Number of respondents
Percentage
8/3/2019 Sales & Distribution Channel
51/81
Interpretation:
From the above table and graph the number of responding are
frequently 0%(0),rarely 10%(10),no 90%(90),yes 0%(0).
Inferenc e: -
Maximum number of respondents are Not facing stock out
problems for LG Electron ics Limited.
51
8/3/2019 Sales & Distribution Channel
52/81
7) Are you satisfied with the supply from the company?a) Highly satisfiedb) moderately satisfiedc) Satisfiedd) Dissatisfied
Dealers Opinion No. of.
Respondents
Percentage
Highly satisfied 24 24
Moderately satisfied 24 24
Satisfied 48 48
Dissatisfied 4 4
Total 100 100
0
20
40
60
80
100
120
No. of. Respondents
Percentage
52
8/3/2019 Sales & Distribution Channel
53/81
Interpretation:
From the above table and graph the number of responding are
highly satisfied 24%(24),moderately satisfied 24%(24),satisfied
48%(48),dissatisfied 4%(4).
Inferenc e: -
Maximum number of respondents are satisfied with the supply.
53
8/3/2019 Sales & Distribution Channel
54/81
8) How much floor space you have provide for ----------?
a) Goods storing purpose-------b) Office purpose------
Business experienceNumber of
respondentsPercentage
Goods storing purpose 80 80
Office purpose 20 20
Total 100 100
54
8/3/2019 Sales & Distribution Channel
55/81
Interpretation:
From the above table and graph the number of responding are
goods storing purpose 80%(80),office purpose 20%(20).
Inference:
Maximum of the dealers are space providing for a goods
storage purpose
55
8/3/2019 Sales & Distribution Channel
56/81
9) In time delivery is very important for better serving the market. Inthis connection are you satisfied with the mode o dispatch by thecompany?
a) Highly satisfiedb) moderately satisfied
c) Satisfiedd) Dissatisfied
Dealers opinion No. Of.
Respondents
Percentage
Highly satisfied 4 4
Moderately
satisfied
32 32
Satisfied 64 64
Dissatisfied 0 0Total 100 100
56
8/3/2019 Sales & Distribution Channel
57/81
Interpretation:
From the above table and graph the number of responding are highly
satisfied 4%(4),moderately satisfied 32%(32),satisfied
64%(64),dissatisfied 0%(0).
Inference:-
The majority of the dealers are satisfied with the mode of dispatch
by the comp any
57
8/3/2019 Sales & Distribution Channel
58/81
10) According to you most of the customers are aware of LG ElectronicsLimited through
a) Advertisementb) Campaignc) Dealer
d) Others
Dealers opinion No. Of.
Respondents
Percentage
Advertisement 38 38
Campaign 8 8
Dealer 54 54
Others 0 0
Total 100 100
58
8/3/2019 Sales & Distribution Channel
59/81
Interpretation:
From the above t ab le and graph the number of r esponding are
advertisement 38%(38),campaign 8%(8),dealer 54%(54),others 0%(0).
Inference:-
Maximum number of respondents are saying dealers play majors in
customers awareness about the product
59
8/3/2019 Sales & Distribution Channel
60/81
11) Do you satisfy with the sales of LG Electronics Limited?a) Highly satisfiedb) moderately satisfiedc) Satisfiedd) Dissatisfied
Dealers opinion No. of.
Respondents
Percentage
Highly satisfied 18 8
Moderately
satisfied
22 22
Satisfied 60 60
Dissatisfied 0 0
Total 100 100
60
8/3/2019 Sales & Distribution Channel
61/81
Interpretation:
From the above table and graph the number of responding are highly
satisfied 18%(18),moderately satisfied 22%(22),satisfied
60%(60),dissatisfied 0%(0).
Inference:
18% of the dealers were highly satisfying the sale of LG Electronics
Limited
61
8/3/2019 Sales & Distribution Channel
62/81
12) How do estimate the demand for various products?a) Past salesb) Seasonalc) Ordersd) Others
Dealers opinion No. of.
Respondents
Percentage
Past sales 18 18
Seasonal 26 26
Orders 56 56
Others 0 0
Total 100 100
62
8/3/2019 Sales & Distribution Channel
63/81
Interpretation:
From the above table and graph the number of responding are past
sales 18%(18),seasonal 26%(26),orders 56%(56),others 0%(0).
Inference:-
Maximum number of respondents are estimate the sales by order
63
8/3/2019 Sales & Distribution Channel
64/81
13) Do you face any difficult in dealing with the company?
a) Yesb) No
If yes please specify____________________________________
Dealers opinion No. Of. Respondents Percentage
yes 10 10
no 90 90
total 100 100
64
8/3/2019 Sales & Distribution Channel
65/81
Interpretation:
From the above table and graph the number of responding are yes
10%(10),no 90%(90).
Inferenc e: -
Maximum number of respondents are not fell difficulty.
65
8/3/2019 Sales & Distribution Channel
66/81
14) What percentage of fright if incurs you to received goods fromcompany to your store point?
a) 2%b) 3%c) 4%
d) 5%
Dealers opinion No. Of.
Respondents
Percentage
2% 60 60
3% 20 20
4% 16 16
5% 4 4
Total 100 100
66
8/3/2019 Sales & Distribution Channel
67/81
Interpretation:
From the above table and graph the number of responding are 2%
60%(60), 3% 20%(20),4% 16%(16),5% 4% (4).
Inference:
The dealers are incurs very less fright charges representing 2%, to
receive goods from company to your stock point.
67
8/3/2019 Sales & Distribution Channel
68/81
15) Do you feel like to suggest any thing which improves distributioneffectiveness?
a) yesb) no
Dealers opinion No. of. Respondents Percentage
Yes 60 60
No 40 40
Total 100 100
68
8/3/2019 Sales & Distribution Channel
69/81
Interpretation:
From the above table and graph the number of responding are yes 60%
(60),no 40%(40).
Inference:
Maximum number of respondents are like to suggest.
16) Which brands is most asked by customers?a) LG
b)Sonyc) Samsung
69
No. of. Respondents
yes
no
total
8/3/2019 Sales & Distribution Channel
70/81
d) Videocon
Dealers opinion No. Of. Respondents Percentage
LG 30 30
SONY 40 40
SAMSANG 16 16
VIDEOCON 14 14
total 100 100
70
8/3/2019 Sales & Distribution Channel
71/81
Interpretation:
From the above table and graph the number of responding are lg
30%(30),Sony 40% (40),Samsung 16% (16),Videocon 14%(14).
Inferenc e: -
Maximum number of respondents like to ask Sony.
71
8/3/2019 Sales & Distribution Channel
72/81
17) Do you get any credit period from the company?
a) yesb) no
If yes, what is the credit period you get.
Dealers opinion No. Of. Respondents Percentage
yes 99 99
no 1 1
total 100 100
72
8/3/2019 Sales & Distribution Channel
73/81
Interpretation:
From the above table and graph the number of responding are yes
99%(99),no 1%(1).
Inference:
Maximum number of dealers get credit period from thecompany
73
8/3/2019 Sales & Distribution Channel
74/81
18) What is the average order cycle time taken by the company?a) 15 days
Dealers opinionNo. Of.
RespondentsPercentage
15 days 10 10
total 100 100
74
8/3/2019 Sales & Distribution Channel
75/81
Interpretation:
From the above table and graph the number of responding are 15days 10%(10).
Inference:
Maximum number of respondents are clear that t ime taken by the
company is less than 5days.
75
8/3/2019 Sales & Distribution Channel
76/81
19) How will you rate the efficiency of your sales persons?
a) very goodb) goodc) satisfactoryd) poor
Dealers opinion No. Of. Respondents Percentage
very good 40 40
good 30 30
satisfactory 30 30
poor 0 10
total 100 100
76
0
20
40
60
80
100
120
No. Of. Respondents
Percentage
No. Of. Respondents
very good
good
satisfactiory
poor
total
8/3/2019 Sales & Distribution Channel
77/81
Interpretation:
From the above table and graph the number of responding are very
good 40%(40),good 30%(30),satisfactiory 30%(30),poor 0%(0).
Inferenc e: -
Maximum number of respondents rate of efficiency is very good.
20) Do you provide appraisals to your sales persons?a) Yesb) no
Dealers opinion No. Of. Respondents Percentage
yes 80 80
no 20 20
total 100 100
77
0
20
40
60
80
100
120
yes no total
No. Of. Respondents
Percentage
8/3/2019 Sales & Distribution Channel
78/81
Interpretation:
From the above table and graph the number of responding are yes
80%(80),no 20%(20).
Inferenc e: -
Maximum number of respondents provide the sales persons
78
8/3/2019 Sales & Distribution Channel
79/81
FINDINGS
1. Majori ty of the dealers having 3 to 6 year s experience , and l es s
number of dealers having above 6 years experience.
2 . Maj or it y o f dea le rs j us t s at is fi ed about t he company s i mage ,
remaining are neutral, Highly satisfied.
3 . Maj or it y o f t he cus tomers s at is fy ing about t he qua li ty o f t he
product next preference given brand name followed by usages ,
price.
4 . Most of the dealer s expresses cus tomers v i s it to shop by brand
name onl y. And f ol lowed dea le rs i nf luence , by f ri ends , by
advertising.
5. The ent ire dealers were saying they do not face any di ff icul t ies to
deal with the customers to selling the product.
6 . Majori ty of the dealer s saying they do no come across s tock out
problems.
7 . M aj or ity o f th e d ea le rs sa ti sf yi ng w ith th e s up ply fr om th e
company and very few members satisfied, dissatisfied.
8. Al l the dealers were saying the ent ire f loor space were providingonly for goods storing purpose.
9. Major i ty of the dealers sat isf ied wi th the mode of dispatch by the
company . And few members were modera te ly sat is fi ed , h ighly
satisfied.
10 . Majority of the d ealers th ey estimate the dema nd for vario us
products by the orders and fol lowed by seasonal base and pas t
sales.
11 . All th e d eale rs we re sayin g the y do no t fac e a ny diffic ult in
dealing with the company.
Major i ty of the dealer s were say ing about the f r ight i t incurs 2% to
receive goods from company to your stock point.
79
8/3/2019 Sales & Distribution Channel
80/81
SUGGESTIONS
1. Provide opportunity for new entrants in the business.
2. To create awareness about the company, us ing of var ious ways of
promotional activities such as advertisement, to maintain the better
relation with dealers.
3. If possible increase the quali ty of the product and reduce the price.
4 . C om pa ny a nd d ea le rs s ho ul d t ry t o m ai nta in c us to me r g oo d
relationship as much as the possible.
5 . T ry to ma in ta in b ett er s up ply c ha in in o rd er t o im pr ov e th e
services. Supply the products with in time to the dealers.6. Try to provide discounts to dealers and credit facil i t ies .
7 . Customers , who purchase the huge amount of products , provide
free home delivery to customers place.
80
8/3/2019 Sales & Distribution Channel
81/81
CONCLUSION
In the present competi t ive world the success of the company depends on
satisfying the customers as well as channel members.This is the area of retai l business and to win the race and be on the topcompanies are out performing by spending more on trade promotions.The channel members play a key role in increas ing the sales of FMCGproducts.The company has to pay more at tention on distr ibution, promotion andavailability of brand to win sales in the market.
The study concludes that the L.G ELECTRONICS PRODUCTS L.T.D hasto strengthen its product line by introducing new styles and new sizes.I t a lso has to increase the s tock hold ing and avai labil ity of various
brands through mot iva ting channel members by offering a t tr ac t iveschemes and incentives .