PROJECT REPORTON Consumer AwarenessSubmitted toJAMIA HAMDARD UNIVERSITY, NEW DELHIin partial fulfillment of the requirement for the award of the degree ofBachelor of Business Administration(DODL)Submitted By:

Name: Enrollment No. : Roll No. :

SHIKSHAPEETH COLLEGE OF MANAGEMENT AND TECHNOLOGY (SLRC CODE: 1056) 16, BINDRA MARKET TILAK NAGAR NEW DELHI-110018CERTIFICATEThis is to certify that , a student of the Jamia Hamdard University, New Delhi, has prepared his/her Project Report entitled Consumer Awareness, under my guidance. He/ She has fulfilled all requirement leading to award of the degree of BBA. This report is the record of bonafide project undertaken by him/her and no part of it has been submitted to any other University or Educational Institution for award of any other degree /diploma/fellowship or similar titles or prizes. I wish him/her all success in life.

(Ms. Amandeep Kaur) PROJECT GUIDE (Mr.GAURAV AHUJA )ACADEMIC HEAD.

Acknowledgement

The satisfaction that accompanies the successful completion of any task would be incomplete without the people, whose constant guidance and encouragement crowns all efforts with success.I express my deep sense of gratitude to Mr. Gaurav Ahuja, Academic Head for his initiative and constant inspiration. I would like to convey my sincere thanks to Ms. Amandeep Kaur, project in-Charge for her support, innovative ideas & guidance in order to successful completion of this project.Lastly, words run to express my gratitude to all the lectures and friends for their co-operation, constructive criticism and valuable suggestions during the preparation of this project report.

Ashish Kumar

TABLE OF CONTENTS.NO.TOPICSPAGE NO.

1Introduction

2Objective of the project

3Company Profile

4Research Methodology

5Literature Review

6Data Analysis and Interpretations

7Findings

8Recommendations

9Conclusion

10Annexure- Questionnaire

11Bibliography

INTRODUCTION

INTRODUCTIONIndian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas Allwyn and Kelvinator. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth the industry. The rising income levels double-income families and consumer awareness are the main growth drivers of the industries.Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest nearly Rs 500 Cr in India this year in research and development, brand-building and other marketing initiatives.The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development, besides launching new platforms in information technology and related areas,

LGs innovative 211 campaign to provide quality after-sales service, will also be expanded from the existing 22 to 40 cities by next month, The campaign, for which IT infrastructure has been set up, includes the companys response to customer complaint within two hours. The fixing time for complaints varies from one hour to a maximum of 24 hours.

Objective of the projectPrimary 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 like Maharashtra and Mahaveer electronics. 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 enhances the knowledge about the marketing and branding activity.

COMPANY PROFILE

VisionGlobal Top 3 by 2010Global Top 3 Electronic/Telecommunication companyGrowth strategy Fast innovation, Fast growthCore competencyProduct leadership, Market leadership, People leadershipCorporate cultureNo 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.

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 to deliver 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.

The PartnershipLG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship. This illustrates that management and 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 allianceLG 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.

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, 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 the major share of the consumer durables market.Consumer durables market is expected to grow at 10-15% in 2007-2008. 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 marketWith the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashersConsumer 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 theConsumers 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 sector1. Consumer electronic include Vcd / Dvd, home theatre, music player, color television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc2. White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc. 3. Moulded luggage include plastics4. Clocks and watches 5. Mobile phonesScope:- 1. In term of purchasing power parity (ppp), India is the 4th 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 20103. 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:-

Higher import duties on row materials.Cheap imports from Singapore, China and from other Asian countries.

Brands in consumer electronics sector:

MNCsNATIONALREGIONALLG)SAMSUNG)KOREA ONIDABUSHHYUNDAI)VIDEOCONCROWNBPLSALORATCL)CHINAGODREJT-SERIESHAIER)VOLTASWESTONIFBBELTAKPHILIPS)HOLLANDOSKAR

PANASONIC)SHARP)HITACHI)SANSUI)JAPANAKAI)AIWA

WHIRLPOOL)ELECTROLUX

TODAY 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 LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories. The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is investing Rs 360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and development, besides launching new platforms in information technology and related areas,

LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries. . Before briefing, I have divided the introduction part into three main sub parts.1. LG Global2. LG India3. LG Pune

History of company:-

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners.The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of 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 OperationLG 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 Group1. LG.Philips LCD 2. LG Chemical 3. LG Telecom 4. LG Powercom 5. LG Twins 6. LG Dacom

Business areas and main productsMobile communications

(a) CDMA Handsets, (b) GSM Handsets, (c) 3G Handsets, (d) Cellular PhonesDigital appliancea) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net,g) Compressors for Air Conditioners and RefrigeratorsDigital displaya) 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

Digital mediaa) 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 InfotainmentLG 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. 3M2. SUN3. YAHOO4. PHILLIPS5. TOYOTA6. MICROSOFT7. HP8. GOOGLE9. GE10. INTEL11. NORTEL12. HITACHI13. PRADA14. RENESAS15. TOSHIBA16. 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, email, and blogs.)

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. Value2. Promise3. Benefits4. Personality

The Brands core Value that never changes. a. Trust,b. Innovation,c. Peopled. Passion

The benefits that are consistently delivered to the customer includes Reliable products Simple design Ease of use Extraordinary ExperiencePersonality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly

The Internal Culture of LG:LG practices four cultures1. Learning Culture 2. Boundary less Environment 3. A Carrier4. 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 join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth.

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 LeadershipWe are focusing on six development areas to become the product leader.1. New Machine2. Reliability3. Conventional Installation4. Environment Friendly Product5. Low Noise & Vibration6. Energy Saving

Quality Innovation: The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.

LG proceeds in a hierarchal manner. It is named as LG WAY.From top to bottom:No.1 LG is the VISIONJeong-DO Management is LGs unique application to ethics. LG will succeed through fair management practices and constantly developing our business skill.

A) Honest with our customer b) Providing great values to customer through constant innovation & and development. c) Equal opportunitiesd) Equal Treatment Management Principle - Creating value for customer

Code of conduct of LG:

1. Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value 2 Fair competition Pursuit of Free Competition Compliance with Laws and Regulations

3 Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners

4 Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest

5 Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity

6 Responsibilities to society and country Rational Business Development Protection of stock holder interest Contribution to social development Environmental Conservation

LG INDIA:LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crs.LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, 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 launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products.LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer 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 360 Cr.

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 households in 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 as mobile application development, digital video broadcast and biometrics software and support LG Electronics with our expertise. Motivated by a passion for technology, a strong work culture and loyalty to the organization, we are determined to see LG become one of the top three brands globally. Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 4.8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture 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 other household goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees.In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. Challenges in India

The challenges faced by LG when entered in Indian market

1. Low brand awareness about LG in India.2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).3. High import duty4. Compitition from local market players and other MNCs in consumer durable segment.5. Price sensitiveness of the Indian consumer

LGEI over comes these challenges to emerge as Innovative marketing strategy 1. Launch new technologies in consumer electronic and home appliances. 2. LG was the first brand to enter in cricket in big way a way, by sponsoring the 1999 world cup followed it up in 2003 as well.3. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more then US$ 8 million on advertising and marketing in this sport.4. LG has differentiated its product using technology and health benefits. CTV has Golden eye technology Air conditioner has Health air system and microwave ovens have the Health wave system.

Local and efficient manufacturing to reduce the costTo overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and Pune. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce cost.LGEI implementing the Digital manufacturing system (DMS) as the cost cutting innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier.

R&D potential LG has the research and development facilities in Bangalore and Pune. Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product.

Regional channel and wide distribution network1. LG has adopted the regional distribution channel in India. All the distributers work directly with the company. This has resulted in quicker rotation of the stock and better penetration into B, C, D, class market.2. LG also follows the stock rotation policy rather then dumping stock on channel partners.

Product localization:-

1. Product localization is the key strategy used by the LG2. LG came out with Hindi and regional language menus on its TVs.3. Introduced the low-priced Cineplus and sampooma for the rural market.4. LG was the first brand to introduce gaming in TVs in continuations of its association with cricket LG introduce cricket game in CTVs

MAJOR KEY SUCCESS FACTORS1. Innovative marketing - LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup and followed it up in 2003 as well.2. Local and efficient manufacturing to reduce cost - To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi.3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.4. Product localization - Product localization is a key strategy used by LG. It came out with Hindi and regional language menus on its TV.5. Regional distribution model - This has resulted in quicker rotation of stocks and better penetration into the B, C and D class markets.6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG.

Strategies adopted by the organization

LG follows 10 commandments which are as follows.1. Foster working environment-5S Environment2. Fast execution is key to success3. Transparent and fast communication-open communication4. Update market -knowledge Demographics5. Win Win relationship with the trade partners6. Customer is the king7. Even Billing Road to ach supplier A8. Be in touch with the market (70% Market, 30% Office).9. Plan and Execute annual marketing Calendar-Time to market10. Display share of 50% -to get 50% consumer share.

.

LG PUNELG Pune is the branch office of LGEIL. It is located in J.M Road.In 2004 LGEIL opened second factory which is located in Ranjangaon. This plant manufactures all product including DVD writers and GSM mobiles. Thus it became first company to manufacture DVD writer in India. The ODP plant aims to reach a manpower base of 1500 people and an investment of Rs 300 Cr till 2010.LG India will become the export hub for LG Worldwide, catering to the Middle East and African markets. The company aims to touch an export turnover of $3 billion by 2010 from India, which will contribute to 30 per cent of the Indian arm's turnover. Pune, India, October 6, 2004 -- LGE announced 3 growth strategies aimed at the 1.1 billion people of India making the Indian market the second largest global production base following China. Under this strategy LGE has projected 2007 revenues in India will exceed US$10 billion, 10 times that of 2004.The three strategies for the Indian market that the global electronics giant disclosed. included: penetrates the south-western market of India through the new Pune plant near Mumbai, the second largest city in India, in addition to the existing northern plant; installs a new GSM handset production line in the new Pune plant and uses it as its second-largest global GSM handset production line after the Qingdao plant in China; and expands the current 750 R&D staff in India to 1,500 by 2007, striving to develop premium products and export 30% of India-manufactured products to Asia, Middle East and Africa markets by 2007.

LG Electronics second new plant in Pune, India covers a total area of 211,200 square meters and is currently equipped with a production line to manufacture 600,000 TVs and one million refrigerators a year. The company is set to add production lines of air conditioners, washing machines, monitors, and electronic ovens, by 2005.Also, LG Electronics is poised to install a GSM handset production line in the new Pune plant by early next year. The Pune GSM handset line envisages a capacity of manufacturing 2 million handsets annually, and the company expands it to become a global GSM handset production base with a capacity of an annual 10 million units by 2010.In connection with its three growth strategies for the Indian market, LG Electronics will invest a total of US$150 million in establishing facilities and boosting R&D efforts in India by 2007. Specifically, it will invest US$53 million in the Pune second plant, another US$43 million in establishing the GSM line, and US$54 million in securing R&D manpower and boosting other efforts. Through these strategies, LG Electronics aims to penetrate the global market by using China and India as its core production bases, while operating its plants in Changwon and Gumi, Korea, as its main production bases. This way, the company is pushing to penetrate the global home appliance market.The present capacity of the facility is of 1 lakh unit per year and it shall cater to the need of the domestic markets. LG plans to upscale its operations to a figure of 2.5 lakh units a year in the near future. The Pune plant in addition to its current manufacturing facility at Greater Noida will enable the company to enhance its consumer reach and reiterate its commitment towards providing superior technology products to the India consumer.

The key strategies being implemented include increasing the number of its regional offices from six to eight. LG has split its southern regional office into two, one comprising the states of Tamil Nadu and Kerala and the other consisting of Andhra Pradesh and Karnataka. In addition, it has split one of its northern regional offices by making Uttar Pradesh a separate region after spinning it out from Delhi NCR. The other four regional offices take care of East, Gujarat and Madhya Pradesh, Maharashtra & Goa and Punjab, Haryana & Rajasthan respectively.In the coming year, LG is also repositioning its marketing spends, resulting in a significant increase in its mass media expenditure for better brand visibility. LG had a marketing budget of Rs 320 Cr in 2007 with a 60:40 split in favor of below-the-line activities. Next year, the company plans to increase the share of mass media even as overall marketing spends would be raised by just about 10-15%.

LG Pune is the branch office of LGEIL. It is located in J.M Road.The organization structure is one branch manager, one chief accountant, and area sales manager of CE, HA separate for GSM, Marketing manager for CE, HA and separate for GSM. The Pune branch has warehouse at wagholi.

Distribution and MarketingThe company has number of dealers and warehouses. They have LG exclusive shopee. For the marketing of the products a number of activities are followed1. Exhibitions are conducted from time to time.2. Society and college activities are conducted.3. Hoarding, Posters, banners are used so as to grab the attention of the costumers. 4. Day to day advertisement in leading newspaper.5. Discount at festival time.6. For dealer relationship they arrange dealer meting at several time in the year 7. LG divide dealer in gold silver etc. category to know the performance of the dealers.8. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product.9. LG also uses the radio FM for the promotion activities.10. Also provide capon and scratch card for festive season.

The logistics (Supply Chain Management)Visit to warehouse of LG Pune at WagoliLogistics is the art and science of managing and controlling the flow of goods, energy, information, and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.Logistics Management is that part of the supply chain, which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.5Rs of Logistic followed by LG:1. Right Time2. Right Place3. Right Condition4. Right Cost5. Right Handling

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 methodsResearch design: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.

Descriptive ResearchThe 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. Sampling Methodology:Details of the sampling methodology, I have made questionnaire. The one is made for the Customer.No. of questions in questionnaires for customer: 07No. of question related to LG product: 03No. of people met during the research: 200No. of respondents during the research: 50Sample unitProfessionals, Business man, Employees, House wife, Working women, StudentsData collection methods:After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data. Data analysis and interpretation1. Questionnaires2. Pie chart and Bar chart

Questionnaires:This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey.Pie chart:This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.Bar chart:This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.Preparation of report:The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

LITERATURE REVIEW

DATA ANALYSIS &INTERPRETATION

Q1. Have you purchased any consumer durable during Exhibitions? Yes No

Inferences 1. 65 % of Customer 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 and shop or not. 4. Consumer 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.

Q.2While purchasing consumer durable which parameter influences you? Price Product feature Brand Service Durability

Inference1. 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 Exhibitions Co.shoppee Showroom

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.

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons Attractive Price Service Demonstrations Offers

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 attract the customer in these showrooms.

Q.5.Which consumer durable you have and of which brand? CTV LCD PLASMA REF WM MW 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, MW LG is the leader. In WM there are companies and in AC also.

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.

Q.7.Do you prefer any financing scheme to purchase consumer durables? Yes No

Inference Majority of customers do not prefer any financial scheme.

Dealer survey Findings1. 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 sale.3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG.4. We also came to know while visiting the shops that there was big problem of after sale 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.7. The top competitor of LG product in Pune is SAMSUNG.8. In Pune area the performance of LG is in better position but the competitor also hold closer margin.9. There is high growth of sale in market due to booming in new technology and better service.10. Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer.

RECOMMENDATIONS AND SUGGESTIONS1. LG should improve its after sale service because its hits badly LGs market share in Pune region.2. More detailed customaries service is to be provided.3. The training to in shop demonstration should be given at frequent time interval and feed back should be considered positively.4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person.5. LG should try new dealer who have the potential. So they can target more market.6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung.7. The marketing managers should make better relations with dealers and reputation of the company.8. Customer considers quality as their first preference, so the company should give more stress on this.9. The switching of customer from LG product to other brand is due to the bed after sell service in shop. 10. The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology.

CUSTOMER SURVEY FINDINGS1. 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 brandConsumer survey Questionnaire Q1. Have you purchased any consumer durable during Exhibitions?a) Yesb) No

Q.2While purchasing consumer durable which parameter influences you?a) Priceb) Product featurec) Brandd) Servicee) Durability

Q3. From where you prefer buying consumer durablesa) Exhibitionsb) Co.shoppeec) ShowroomQ.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasonsa) Attractive Priceb) Servicec) Demonstrationsd) Offerse) Convenience

Q.5.Which consumer durable you have and of which brand?a) CTV-------------------b) LCD-------------------c) PLASMA-------------------d) REF-------------------e) WM-------------------f) MW-------------------g) AC-------------------Q.6. How frequently you change your consumer durables?a) 1-3 yearsb) 3-5 yearsc) 5-10 yearsd) More than 10 yearsQ.7.Do you prefer any financing scheme to purchase consumer durables?a) Yesb) No

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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