vinay pradhan
TRANSCRIPT
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A STUDY TO UNDERSTAND CUSTOMER PREFERENCE OF LG
CONSUMER DURABLES IN INDORE
Major Research Project
Submitted towards partial fu lfi l lment of
Master of Business Administration
Awarded by
Devi Ahi lya VishwaVidhyalaya, I ndore
Guided By: Submitted By:
Prof. Shahina Qureshi Vinay Pradhan
MBA IV Semester
Roll. No.11706674
Facul ty of Management,
Acropolis Technical Campus, I ndore
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CERTIFICATE
This is to certify that the Major Research Project Report entitled A STUDY TO
UNDERSTAND CUSTOMER PREFERENCE OF LG CONSUMER DURABLES IN
INDORE, which is being submitted herewith for partial fulfillment of requirement
for award of the degree of Master of Business Administration (Full time) by Devi
Ahilya VishwaVidhyalaya (DAVV), Indore is successfully completed by Vinay
Pradhan under my supervision and guidance.
Date:
Prof. Shahina Qureshi
Countersigned:
Internal Examiner External examiner
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DECLARATION
I, Vinay Pradhan, hereby declare that the Project Report entitled A STUDY TO
UNDERSTAND CUSTOMER PREFERENCE OF LG CONSUMER DURABLES IN INDOREis an
authentic work done by me under the supervision ofProf.Shahina Qureshi.
The Study was undertaken as a part of the course curriculum of MBA IV Semester (Full
Time) ofFaculty of Management, Acropolis Technical Campus, and Indore affiliated to Devi
Ahilya VishwaVidhyalaya (DAVV), Indore. This project work does not contain any part of
any work which has been submitted for the award of any degree either in this university or in
any other University/ Deemed University without proper citation.
Date: Vinay Pradhan
MBA IV Semester
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ACKNOWLEDGEMENT
I would like to acknowledge my project guide Prof.Shahina Qureshi
for guiding me in my research project. Her/his encouragement, time and effort are greatly
appreciated. I would like to thank all the respondents who offered their opinions and
suggestions for the survey that was conducted by me and all those who supported me directly
or indirectly in completing my Major Research Project.
Date: Vinay Pradhan
MBA IV Semester
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INDEX
Chapter No. Chapter Name Page No.
1 INTRODUCTION 6-24
2 REVIEW OF LITERATURE 25
3 RATIONALE OF THE STUDY 26
4 OBJECT OF THE PROJECT 27
5 RESEARCH METHODOLOGY 28-29
6 DATA ANALYSIS 30-37
7 FINDINGS 38
8 LIMITATIONS 39
9 RECOMMENDATIONS AND SUGGESTIONS 40
10 SCOPE OF PROJECT 41-42
11 CONCLUSION 43
12 BIBLIOGRAPHY 44
13 APPENDIX/QUESTIONNAIRE 45-48
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INTRODUCTION
Preface
It is a matter of great honor for me to present before my humble readers this project based on
Market Analysis of LG Consumer Durables. The data collected by me is both primary as
well as secondary.
This report on Market Analysis of LG Consumer Durables is the outcome of my effort. Thisreport can be easily understood by any person because I try to make more elaborate of thisreport.
This report is design in easy language so that all readers dont face any problem on this
report.
In this report has done the analysis on LG Consumer Durables. Analysis report isrepresented by the graph so that can easily understand by any person.
LG INDIA
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, SouthKorea was established in January 1997 after clearance from the Foreign InvestmentPromotion Board (FIPB). LG set up a state-of the art manufacturing facility at GreaterNoida, near Delhi, in 1998, with an investment of Rs 500 Cores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, GreaterNoida, and India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to launch60premium Brand Shoppes by the end of the first quarter of this year. At present, LG has atotal of 83 LG stores across the country, of which 45 are shops and 38 are exclusive stores.Brand shops will be placed in the premium segment and the target audience will comprise
buyers interested in premium and high end products.
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LG Brand Shoppe goes beyond the concept of a normal exclusive store by having amore interactive environment and additional lifestyle orientation on display so that thecustomer can actually experience the LG products in his or her own home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share,is planning a brand new image. To attract inspirational and young consumers across India,company will roll out a new marketing strategy. The exercise will cost the company Rs 360core.
LG Electronics India is the fastest growing company in the consumer electronics,home appliances, and computer peripherals industry today. LG Electronics is continually
providing, superior technology products & value for money to more than 50 lakh householdsin India. LGEIL is celebrating the 11th anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics'largest R&D centre outside Korea. We at LGSI focus on niche technology areas such asmobile application development, digital video broadcast and biometrics software and supportLG Electronics with our expertise. Motivated by a passion for technology, a strong workculture and loyalty to the organization, we are determined to see LG become one of the topthreebrands globally.
Prominent consumer electronic company, LG Electronics Inc. has said that it expectsthe sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managingdirector of LG Electronics India has said that the company has earmarked 4.8 billion rupeesfor investment purpose in India this year. The said money will be used to market as well asmanufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India,
informed that its sales of GSM mobile phones, color televisions, air conditioners and otherhousehold goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees. In orderto achieve its target, Shin said LG Electronics will concentrate on catering to the high-endconsumer market which will help boost sales this year. India churns out six (6) per cent of LGElectronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries.
Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, and Voltas were the major players in the consumer durables market, accounting for
no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony,Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control
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the major share of the consumer durables market. Consumer durables market is expected to
grow at 10-15% in 2009-2010. It is growing very fast because of rise in living standards, easy
access to consumer finance, and wide range of choice, as many foreign players are entering in
the market with the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for consumer durables hasincreased significantly. Products like washing machines, air conditioners, microwave ovens,
color televisions (CTVs) are no longer considered luxury items. However, there are still very
few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is
characterized by the emergence of MNCs, exchange offers, discounts, and intense
competition. The market share of MNCs in consumer durables sector is 65%. MNC's major
target is the growing middle class of India. MNCs offer superior technology to the
Consumers whereas the Indian companies compete on the basis of firm grasp of the local
market, their well-acknowledged brands, and hold over wide distribution network. However,
the penetration level of the consumer durables is still low in India.
Classification of consumer durables sector
1. Consumer electronic include VCD/DVD, home theatre, music player, color television
(CTVs), cameras, camcorders, portable audio, HI-FI, etc
2. White goods include dishwashers, air conditioners, heaters, washing machines,
refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, and microwaves;built in appliances, tumble dryer, personal care product etc.
3. Moulded luggage include plastics
4. Clocks and watches
5. Mobile phones
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History of Company
The company was originally established in 1958 as Gold Star, producing radios, TVs,
refrigerators, washing machines, and air conditioners.
1958-1969-GoldStar the Electronics Industry Dream
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1970-79 Gold Star symbol of The Technology
1980-88:- INTERNATIONALIZATION
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1989-94 INOVATION
1995-98 GLOBAL LEADERS LG ELECTRONICS
1999-2003-DIGITAL MANAGEMENT
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2004-2006 GREAT PEOPLE GREAT DESIGN
2007-THE PEOPLE COMPANY
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The LG Group was a merger of two Korean companies, Lucky and Gold Star, from
which the abbreviation ofLG was derived. The current "Life's good" slogan is a backronym.
Before the corporate Name change to LG, household products were sold under the Brand
name ofLucky, while electronic products were sold under the brand name of Gold Star. The
Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG
Electronics, and acquired Zenith Electronics of the United States.
Global Operation:
LG Electronics is playing an active role in the world market with its assertive global
business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with
around 82,000 executive and employees. LG Group
1. LG. Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
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Business areas and main products
Mobile communications
(a) CDMA Handsets,
(b)GSM Handsets,
(c) 3G Handsets,
(d) Cellular Phones
Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
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Digital media
a) Home Theater Systems,
b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CDRW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
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VISION
Global Top 3 by 2010
Global Top 3 Electronic/Telecommunication
Company
GROWTH STRATEGY
Fast innovation, Fast growth
CORE COMPETENCY
Product leadership, Market leadership, People leadership
CORPORATE CULTURE
No excuse, we not I, Fun workplace
SLOGAN
"Life's Good" represents LG's determination to provide delightfully smart
products that will make your life good.
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The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan,
"Life's Good" set in Charlotte sans typeface curved around the LG symbol. The curving of
the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature
clearly establishes the unique identity of the company and unifies every division and product
from LG Electronics across the globe.
The Symbol
The symbol of LG is the face of future. The letter L and G in a circle symbolizes world,
future, youth, humanity & technology. LG philosophy is based on humanity. It also
represents LGs efforts to keep close relationship with our customers around the world.
The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique LG red color.
Red color represents our friendliness and gives a strong impression of LGs commitment todeliver the best.
The circle symbolizes The Globe. The stylized image of a smiling face in the symbol
conveys Friendliness and Approachability.
The one eye on the symbol represents Goal-oriented, focused & Confident.
The slogan of LG is Lifes Good. It expresses Brands Value, Promises, Benefits,
Personality.
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The Partnership
LG Electronics chooses to promote harmony and build constructively on a labor-management
relationship rather than an employee- employer relationship. This illustrates that managementand workers are not in a vertical relationship, but in a horizontal one.
This culture is necessary for LG Electronics as it strives to become one of the world's top
companies. Such a relationship is transformed into a value-creation relationship whereby both
parties endeavor to address mutual problems and create new values together.
Strategic Alliance
LG Electronics is making technical advances and identifying business opportunities
through various associative relationships with some of the world's leading companies.
LG Electronics is striving to become number one in the world by mingling in various
business and technological fields and making strategic alliances with world famous
companies. "Strategic association between corporations," in which companies with different
infrastructures cooperate in the fast-developing 21st century business field, is of key
significance in terms of strengthening the existing industry and creating a new one.
LG Electronics will do its best to create new products and services with an open mind, while
developing new technologies and business fields through various associations with some of
the world's most successful companies.
1. 3M
2. SUN
3. YAHOO
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4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10. INTEL
11. NORTEL
12. HITACHI
13. PRADA
14. RENESAS
15. TOSHIBA
16. BESTBUY
And the number follows many more..
In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services
will be available from LG mobile. This service is targeting 10 million LG mobile phones in
over 70 countries.
In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will
work together to release, market, and offer LG mobile phones with Google services (search
engine, map and email).
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LG Brand Identity
The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle
with intelligent features, institutive functionality and exceptional performance.
The brand platform:
The LG brand is composed of four basic elements
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes
a) Reliable products
b) Simple design
c) Ease of use
d) Extraordinary Experience
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Personality describes the human characteristic that are expressed to the customer through
Trustworthy, Considerate Practical, Friendly
The Internal Culture of LG:
LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to learn more and
more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels of
employees. There is transparency between the work and mutual understanding between all
the employees.
A carrier is highly growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a new comer the
company is very helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who want to joinin LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of
the examples of growth.
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Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership.
The fundamental policy of development is to secure product leadership that the Customers
may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
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CUSTOMER SERVICE
The best and the biggest international brands are here in India but the irony if it all:
where is the after-sales service? So integral to a brand, so critical for its success and so takenfor granted in developed markets! In India, after sales service is, for want of a better
description, the pits. So whats stopping the best companies from pulling out all the stops
when it comes to providing the best service? Do customers expect for too much? Or is it that
in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer
durable companies, stockiest and dealers, analysts and market researchers to get feel of
whats really keeping after sales from being used as a cutting edge marketing tool in pushing
products across categories. Customers support following the purchase of a product or service.
In some cases, after-sales service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is included in any warranty (or
guarantee) package. This will include the duration of the warranty traditionally one year from
the date of purchase, but increasingly two or more years maintenance and/or replacement
policy, items included/excluded, labor costs, and speed of response. In the case of a service
provider, after-sales service might include additional training or helpdesk availability. Of
equal importance is the customer's perception of the degree of willingness with which a
supplier deals with a question or complaint, speed of response, and action taken.
LG also had a big problem of after sale service in India. During the project we also
came to know that after sale service becomes the big issue in the region. Customers as well as
dealer were facing the problem of after sales service. Because of this problem many dealer in
the region were not ready to sell LG product. So it becomes the big issue. But LG has taken
some solid steps towards improving customers perception and experience of after sales
service. Because it very important in competitive market to provide the best service. L G
Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes
to strengthen its after sales service in India. The company aims to recruit 10,000 people by
the end of this year as a part of its branding strategy to focus on service and move away from
discounting. LG Electronics has identified eight states with high after sales service call rates
to ink the deals with the ITI. LG Electronics said, "The Company was trying to find a
solution for effective after sales service since last two years. There is a huge need of trained
manpower for the after sales service to align with the company's expansion and focus on the
GSM mobiles and the personal computer segments."
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1. In the initial phase the company has entered into agreements with ITIs in the states like
Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing
with Uttar Pradesh.
2. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to
beef up the number to 10,000 by the year-end.
3. "The company has offered a scholarship to the selected students for the last six months of
their training program,"
4. The company will invest Rs 8 crore (Rs 80 million) in employee development program this
year with an aim to attain a 8 per cent attrition rate.
5. The company moved away from the discounting strategy since last year and is putting
thrust on the quality and service in its brand communication to position LG as a premiumconsumer electronics brand.
6. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in
Dermots public interview in ET on Wednesday). This shows commitment that Service must
be made into a marketing differentiator, and leveraged thus.
7. LG has the widest service network across the country; some estimates put it at a significant
multiple of service infrastructure from our nearest competitor. While the sale size may also
be a nice multiple from nearest, it shows the company is ready to put our money where our
mouth is.
8. The company has introduced a 211 service - once you register your complaint, we will call
you back in 2 hours (hence 2), set up an appointment for the next convenient day for you
(hence the first 1), and show up in the promised 1-hour slot (hence the second 1).If the next
convenient day for you is the next day, thats great too. Its a disruptive action in an industry
(including LG) having traditionally shied away from its service responsibilities, and thus not
leveraging any mileage from it.
9. The company is promoting 211 through ATL, probably the first time after sales service isbeing communicated in this fashion by any product company. You may have seen the TV
commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of
which revolve around prompt response.
10. The first LG-owned service centre opened in Gorgon. (Service in India generally works
through authorized service centers, in LGs case they work exclusively for LG.) A company-
owned service centre tries that much harder, knows things better, and can even contribute as a
revenue center.
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REVIEW OF LITERATURE
Dynamics of Consumer Demand for New Durable Goods
According Gautama Gowrisan Karan, Marc Ryman-Most new consumer durable goods
experience rapid prices declines and quality improvements, suggesting the importance of
modeling dynamics. This paper specifies a dynamic model of consumer preferences for new
durable goods with persistently heterogeneous consumer tastes, rational expectations, and
repeat purchases over time. We estimate the model on the digital camcorder industry using
panel data on prices, sales and characteristics. We find that the one-year elasticity in response
to a transitory industry-wide price shock is about 25% less than the one-month elasticity.
Standard cost-of-living indices overstate welfare gain in later periods due to a changing
composition of buyers.
LG Electronics is making technical advances and identifying business opportunities through
various associative relationships with some of the world's leading companies.
LG Electronics is striving to become number one in the world by
Mingling in various business and technological fields and making strategic alliances with
world famous companies."Strategic association between corporations, "in which companies
with different infrastructures cooperates in the fast-developing21st century business. Field is
of key significance in terms of strengthening the existing industry and creating new one.
13Growth in LG is very high for those who are in the company and froths who wanton join in
LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the
examples of growth.
http://www.nber.org/people/gautam_gowrisankaranhttp://www.nber.org/people/marc_rysmanhttp://www.nber.org/people/marc_rysmanhttp://www.nber.org/people/gautam_gowrisankaran -
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RATIONALE OF THE STUDY
1. This project will give us great exposure to the consumer durable market because it
includes product knowledge and field survey job in which the researcher will visit the
LG stores in Indore. Through this survey the researcher will try to probe more into the
market share of the LG Company with the consumers parameters in buying decisions.
2. The current study will be helpful for the researchers for further research &for the
organization on in framing marketing strategies for the coming period the mission of
LG is to proven the customers with utmost satisfaction through leadership. The fund a
mental policy of development is to secure product leadership that the Customers may
have the utmost satisfaction the resigning one eve double-income families and
consumer awareness are the main growth drivers of the industries.
3. It will help the Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) to a
great extent as it will invest nearly Rs 500 corrosion India this year in research and
development, brand-building and other marketing initiatives.
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OBJECTIVE OF THE PROJECT
Primary objective
The main objective of filed survey during the project was to find out the market share
of the LG and also calculate the display share.
Find out the positional dealer who can sale the LG product in large volume.
The main objective of research was to identify potential dealer and development these
dealer. So LG can make them their direct dealer.
This will ease the dependence on the some big dealer
Find out the problem faced by the dealer in sales and the distribution.
Secondary objective
The Objective was to find out that how far the exhibitions are helpful in branding,
While purchasing the consumer durables which parameter is most important for the
consumer?
Do the consumers prefer the financial facility for buying consumer durable?
How frequently consumers change the consumer durable?
To enhances the knowledge of consumer durable market.
To increases the knowledge consumer durable product of LG.
To enhances the knowledge about the marketing and branding activity.
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RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper
well-organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was to
collect appropriate data, which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used
in the context of a research study and it explains why a particular method has been used in the
preference of the other methods
Research design
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to study
buyers behavior, consumptionpattern, brand loyalty, and focus market changes. A research
design specifies the methods and procedures for conducting a particular study. According to
Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation
conceived as to obtain answers to research questions and to control variance.
Type of research is Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or income. A
descriptive study may be necessary in cases when a researcher is interested in knowing the
proportion of people in a given population who have in particular manner, making projections
of a certain thing, or determining the relationship between two or more variables. The
objective of such study is to answer the who, what, when, where and how of the subject
under investigation. There is a general feeling that descriptive studies are factual and very
simple. This is not necessarily true. Descriptive study can be complex, demanding a high
degree of scientific skill on part of the researcher. Descriptive studies are well structured. An
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exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends
to be rigid and its approach cannot be changed every now and then. It is therefore necessary,
the researcher give sufficient thought to framing research.
Questions and deciding the types of data to be collected and the procedure to be used
in this purpose, Descriptive studies can be divided into two broad categories: Cross Sectional
and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements
from a given population. Thus, it may deal with household, dealers, retail stores, or other
entities. Data on a number of characteristics from sample elements are collected and
analyzed. Cross sectional studies are of two types: Field study and Survey. Although the
distinction between them is not clear- cut, there are some practical differences, which need
different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at
finding the relations and interrelations among variables in a real setting. Such studies are
done in live situations like communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained from a
sample of large population .Besides; it is economical as more information can be collected
per unit of cost. In addition, it is obvious that a sample survey needs less time than a census
inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of
the major purpose. Descriptive research is description of the state of affairs, as it exists at
present. The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. The methods of
research utilized in descriptive research are survey methods of all kinds including
comparative and co-relational methods. The reason for using such needs to be flexile in itsapproach, but a descriptive study.
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DATA ANALYSIS
Q1. Have you purchased any consumer durable during Exhibitions?
Option Percentage Of Respondents
Yes 35
No 65
Inferences
1. 65 % of Customers have not purchased any consumer durable from exhibitions.
2. Only 35 % people have purchased.
3. It shows that consumers are coming in the exhibition for knowledge of product and
also they want to know that weather there is actual price difference in exhibition andshop or not.
Yes No
-20%
0%
20%
40%
60%
80%
35%
0
0
0
65%
0
0
0
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4. Consumers also want to compare to the different brand which are available in the
exhibition.
5. So exhibitions are more useful to increases brand awareness.
6. People are less interested to purchase product from the exhibition.
Q2. While purchasing consumer durable which parameter influences you?
Option Percentage of Respondents
Price 30
Product Feature 19
Brand 26
Service 9
Durability 16
Price30%
ProductFeature
19%Brand26%
Service9%
Durability16%
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Inference
1. 30% of customer gives importance to price. So it shows that Indian consumers are
very price sensitive. They give more importance to price over the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the costumers.
And they are also want best brand in best price.
3. 19% to product feature Service 16% and durability 9% Service is also a big factor
for the customer they are less interested in the durability.
Q3.From where you prefer buying consumer durables?
Exhibition
Showrooms
Other
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Inference:
1. A majority of customers prefer to buy from showrooms. Very less proposition of
customers buys from Exhibitions.
2. 47% customers are prefer to by from the showrooms because the showrooms are
more convenient to customers they also think that these shops give more discounts.
3. People are less interested to buy from the exhibition they only visit the exhibition
for price quotation of the product and the comparison of the product.
Q4. You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons?
Option Percentage of Respondents
Attractive Price 42
Services 27
Offers 31
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Inference:
1. Customers buy from showrooms because of the service and convenience.
These are two main factors.
2. Customers are preferred to buy from the showroom because of they think that these
convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can get more
discounts in these showrooms.
4. Price also a factor that attracts the customer in these showrooms.
AttractivePrice42%
Services27%
Offers31%
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Q5. Which consumer durable you have and of which brand?
o CTV
o LCD
o PLASMA
o REF
o MW
o AC
Inference
In CTV section maximum customers have Onida, in LCD Sony is the leader, in
plasma BPL is the leader, In Ref LG is the leader, and MW LG is the leader. In WM
there are companies and in AC also.
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Q.6. How frequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
More than 10 years
Inference
1. Customers prefer to change consumer durables within 5-10 years. In India people
do not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not prefer to change their consumer durable
frequently.
1-3 Years
3-5 Years
5-10 Years
More than10 Years
1-3 Years
3-5 Years
5-10 Years
More than 10 Years
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Q.7.Do you prefer any financing scheme to purchase consumer durables?
Inference
Majority of customers do not prefer any financial scheme
YesNo
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes
19%
No81%
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FINDINGS
Customer Survey Findings
1. Secondary supports play an important role in the customers mind and create awareness
among the customers. The secondary support includes Demonstration, Exhibition & Even
Sponsors.
2. From the survey it was found out that the majority of customers dont buy consumer
durables from exhibitions. They just visit the exhibitions to see the co. latest model.
3. They want to buy from the showrooms or from co. showrooms. For them service is
important .Beside convenience and other factors service is key factor.
4. Also majority of customers do not want any financing scheme for purchasing the durables.
5. There was heavy rush on weekends so large numbers of ISDs were appointed that day.
Also the live demo calls helps in selling. Exchange offers also generate sale.
6. Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.
7. In survey we found that LG has captured maximum market share in every category. LG
dominates CTV, LCD, and Refrigerator, and Washing machine, category.
8. LG and Samsung have bottle neck competition in TV and REF. category.
9. The product is well aware and it is on top of mind of customer.
10. Customers are also now very choosy in buying the product and it is important for the
company to make loyal customer of their brand.
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LIMITATIONS
Every study has certain limitations. In our study, also there were certain limitations, which I
could not able to solve.
1. The research was conducted in a very small area.
2. Our research work period witness the biggest ups and downs in product sale of different
brands, which affected the perception of the customer. This was biggest drawback of my
study.
3. Time factor was also important for us. We had limited time for the research, for which a
full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was difficult to make
them hold for time.
5. We had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
6. The sample size is also very small which represent my research on consumer behavior.
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RECOMMENDATIONS AND SUGGESTIONS
Customer Survey
1. Exhibitions do not help to generate so much sells but they should be conducted regularly.
This helps in generating awareness regarding the product in customers which ultimately helps
in sales.
2. Also it is helps in advertising for the new products. Like in this exhibition new LCD
SCARLET was advertised. Company should always focus on service.
3. Display share should be increased where there is less than 50% as LG also believes that
JO DIKHTA HAI WO BIKTA HAI.
4. Company should try to improve service. No doubt the company products have technically
edge over competitors but in long run it may hamper the companys profit.
5. Company should concentrate more on its major drivers LCD, IT, and GSM. Branding andpromotions should be done effectively as it creates a long lasting image in the mind of
customers.
6. Company should also cater to the needs of sub dealers as some of the sub dealers have
potential of high sales.
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SCOPE OF PROJECT
This project gives us great exposure to the consumer durable market because it
includes product knowledge and field survey job in which we visited the LG stores in Delhi.
Incidentally summer time was during our survey period which exposed us to another aspect
of product promotion. LG always insist the 50% display share of LG product because LG
believes that JO DIKHTA HAI WO BIKTA HAI. While visiting the shops we
1. Calculated the display share of the LG product in every shop.
2. Collected the data of actual monthly sale of the LG products in few shops.
3. Checked the availability of LG catalogue and the POPs in the store.
4. Found out the problems that the dealer are facing while selling the LG products.
5. Found out the customer response for LG products by asking the owner of the shop.
6. Found out the distributor name from who they were purchasing their products and also
whether they have direct dealership and which brand.
7. Checked whether demo calls are attended or not
Key findings:-
1. By calculating the display share we found that in most of store LG has 50% display share
almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of the store
and how much product can they sell.
3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not andit also helps to find out the new dealers who are capable of being an LG dealer
4. We also came to know while visiting the shops that there was big problem of after sales
service.
5. Many dealers were facing the problem of after sale service because there is no follow up
calls from LG.
6. Demo calls also not done properly.
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Scope
1. In term of purchasing power parity (PPP), India is the 4 th largest economy in the world and
overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on 2010
3. India has the youngest population amongst the major countries. There are lot of people in
the different income categories nearly the two third population is below the age of 35 and
nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year.
And there are 6 million rich household in India.
5. The upper-middle and high-income household in urban areas are expected to grew to 38.2
million in 2007 as against 14.6 million in 2000.
Opportunity
1. In India the penetration level of white goods is lower as compared to other developing
countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Threats
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian countries.
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CONCLUSION
LG is the most preferred brand of consumer. After the liberalization, foreign players like LG,
Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players
control the major share of the consumer durables market.
We found that in most of store LG has 50% displays share almost all categories. The most
competitor brand in market of LG is SAMSUNG. LG is high growth of sale in market due to
booming in new technology and better service.
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BIBLIOGRAPHY
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
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APPENDIX/QUESTIONNAIRE
Q1. Have you purchased any consumer durable during Exhibitions?
Option Percentage Of Respondents
Yes
No
Q2. While purchasing consumer durable which parameter influences
you?
Option Percentage of Respondents
Price
Product Feature
Brand
Service
Durability
Q3.From where you prefer buying consumer durables?
Exhibition
Showrooms
Other
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Q4. You prefer to buy from the same as you have mentioned in Q.3
because of following reasons?
Option Percentage of Respondents
Attractive Price
Services
Offers
Q5. Which consumer durable you have and of which brand?
o CTV
o LCD
o PLASMA
o REF
o MW
o AC
Q.6. How frequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
More than 10 years
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Q7. Have you purchased any consumer durable during Exhibitions?
a)Yes
b)No
Q8. While purchasing consumer durable which parameter influences
you?
a)Price
b)Product feature
c) Brand
d)Service
e)Durability
Q9. From where you prefer buying consumer durables.
a)Exhibition
b)Showroom
c) Other
Q10. You prefer to buy from the same as you have mentioned in Q.3
because of following reasons.
a)Attractive Price
b)Service
c) Demonstrations
d)Offers
e)Convenience
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Q11. Which consumer durable you have and of which brand?
a) CTV -----------------
b) LCD -----------------
c) PLASMA -----------
d) REF -----------------
e) WM ------------------
f) MW ------------------
g) AC -------------------
Q12. How frequently you change your consumer durables?
a) 1-3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
Q13. Do you prefer any financing scheme to purchase consumer durables?
a) Yes
b) No