CONTENTS

Chapter I : Introduction…………………………………04-13

Introduction

Scope of the study

Importance of the study

Objective of the study

Chapter II : About the company…………………………14-44

Brief history of LG

Brief history of Samsung

Chapter III : Research Methodology…………………….45-65

Research Design

Sampling

Data collection methods

Limitation

Chapter IV : Data Analysis & Interpretation…………...66-81

Chapter V : Finding & Recommendations………………...82-87

Suggestion

Conclusion

Bibliography……………………………………………………88-89

Annexure…………………………………………………........90-102

1

ABSTRACT

This Dissertation project is a study of Market Strategy in white goods

products of LG and Samsung will be based on the comparison between LG

and Samsung consumer satisfaction.

What are the factors that affect the consumer satisfaction?

Determining the factors affecting the consumer satisfaction.

What is the magnitude of those factors regarding the consumer

satisfaction?

Korean brands, LG and Samsung, have cornered nearly half of the Rs 10,000

crore (Rs 100 billion) Indian home appliances market for the first time in the

later half of this year. While the LG leads the market with around 35 per

cent of the overall market, Samsung improved its position from around 13 to

around 16 per cent now.

In fact, except in the refrigerator segment, the two now have combined

turnovers greater than the rest of the brands in all the major segments of the

market. In the refrigerator market, which accounts for the biggest chunk of

the market at around Rs 4,000 crore (Rs 40 billion) this year, Samsung

emerged as the biggest gainer since the close of last financial year. Since

April, it has not only overtaken Godrej to become the number three after LG

and Whirlpool, but has also seen a steady increase in its market share since

then from around 12.5 percent of the total value to around 17 per cent now.

In the washing machine segment too, estimated to be worth around Rs 1,500

crore (Rs 15 billion) this year, the company was able to increase its presence

2

from 13.3 per cent share to 19.2 per cent share while its share in the

microwave market too improved from 18.5 to 24.6 per cent.

The company, which had a 15 per cent share in the retail-consumer AC

market, was also able to improved its position by around 1.5 per cent over

the last seven months.

However LG continued to be the dominant player in the market. Leading in

all the four product segments, it has around 50 per cent more market share

than its closest competitor in each segment. By value, the company has

around 30 per cent of the refrigerator market, 34 per cent of the washing

machine segment, 40 per cent in the home AC segment and 38.7 per cent of

the microwave market.

3

INTRODUCTION

4

Consumers expect electrical household appliances to be safe, for themselves,

their children and the older members of their families.

Individual consumption expenditure by households covers the actual and

imputed final consumption expenditure incurred by households on the goods

and services they require to satisfy their individual needs and wants.

The White Goods organization is part of a major group of companies that

sells electrical appliances in industrial, commercial and domestic markets.

At the time the events in this case took place, it was not a company in its

own right but a division of a larger organization called Complete Energy

Systems. The division dealt only with the domestic market (households) and

two other divisions dealt respectively with industrial and commercial

markets. The case appears in two parts, both dealing with a proposed

reorganization. The first part sets the scene by describing the situation that

led up to the proposed reorganization and part two describes management

proposals for the reorganization itself and the reactions of groups of staff

and individuals to the proposals.

It is important to stress that while a trade union plays a prominent part in

events, this is not a case study in industrial relations. Therefore, while

reactions to management’s proposals largely surfaced through the trade

union, it is the reactions themselves on which you should focus your

attention, rather than the industrial relations aspects. Like most industrial

relations issues involving negotiation, management’s motives and

considerations were largely unknown to the trade union, which had to deal

with the information provided by management at face value. Nor was

management privy to a great deal of what went on behind the scenes

5

between the trade union and its members. Therefore, unless the case

explicitly states that something was revealed by one party to the other, you

should assume that it was known only to the party concerned.

Heavy consumer durables such as air conditioners, refrigerators, stoves,

etc., which used to be painted only in white enamel finish. Despite their

availability in varied colors now, they are still called white goods. See also

brown goods.

LG and Samsung both are big white goods product manufacturing

companies from South Korea. Both are equally strong, global companies,

and more or less with equal presence in Indian market.

A major appliance, or domestic appliance, is usually defined as a large

machine which accomplishes some routine housekeeping task, which

includes purposes such as cooking, food preservation, or cleaning, whether

in a household, institutional, commercial or industrial setting. An appliance

is differentiated from a plumbing fixture because it uses an energy input for

its operation other than water, generally using electricity or natural

gas/propane. An object run by a watermill would also be considered an

appliance. The term white goods or white ware is also used for these items,

primarily where British English is spoken, although definitions for the term

"white goods" can differ. In the United States, the term white goods more

commonly refers to linens rather than appliances.

Major appliances are differentiated from small appliances because they are

large, difficult to move, and generally fixed in place to some extent. They

are often considered fixtures and part of real estate and as such they are

often supplied to tenants as part of otherwise unfurnished rental properties.

6

Another frequent characteristic of major appliances is that they may have

substantial electricity requirements that necessitate special electrical wiring

to supply higher current than standard electrical outlets can deliver. This

limits where they can be placed in a home.

Major appliances have become more technically complex from the control

side recently with the introduction of the various Energy Labelling rules

across the world. This has meant that the appliances have been forced to

become more and more efficient leading to more accurate controllers in

order to meet the regulations.

. SCOPE OF THE STUDY

7

The electrical goods are those goods which already exist in the market.

Because without it, it is not possible that anybody can survive with his/her

life. We define scope of Mathura region. Scope is a very broad term. The

customers purchase the electrical appliances through market, exhibition, and

showroom for fulfillment of needs.

This report analyzes the markets for Electric Household Appliances in

Thousand Units by the following Segments: Major Electric Household

Appliances (Compactors, Dishwashers, Disposers, Dryers, Freezers,

Microwave Ovens, Range Hoods, Electric Ranges, Refrigerators, Vacuum

Cleaners, Washing Machines, Water Heater (Electric), Room ACs, & Other

Major Electric Household Appliances), and Small Electric Household

Appliances (Blenders, Bread Makers, Broilers, Can Openers (electric),

Coffee Makers, Electric Knives, Food Choppers, Food Processors, Irons,

Mixers, Toaster Ovens, Toasters, Waffle Irons, & Miscellaneous Small

Electric Household Appliances). The report provides separate

comprehensive analytics for the Mathura.

This report is prepared in Mathura region with the help of owner and

customer. It defines the marketing strategy (product, price, place, promotion)

of LG with Samsung.

LIMITATIONS OF THE STUDY: Subjective nature of the study may affect its interpretation by different

individuals.

8

Regional differences, area differences may change the scope of study also

At different places, different implementation of applied CRM (consumer relationship management) can be seen.

The information given over Internet and other sources may be different from practical experiences of the customers.

IMPORTANCE OF THE STUDY

9

To know the position of LG and Samsung in the market and to gauge the

impact of market strategy vis-à-vis consumer durables in Mathura region.

Till the early nineties in the area of marketing whole effort was focused on

fine – tuning the four ‘P’s: product, price, place and promotion. It was only

in the early nineties that a few marketers began realizing that companies

basically existed to serve consumers - and that the consumer did not exist

merely to buy a company's products.

LG and Samsung both are big white goods product manufacturing

companies from South Korea. Both are equally strong, global companies,

and more or less with equal presence in Indian market. So it will be quite

rational to compare these two brands.

ISSUES TO BE ADDRESSED:

What are the factors that affect the consumer satisfaction?

Determining the factors affecting the consumer satisfaction.

What is the magnitude of those factors regarding the consumer

satisfaction?

RESEARCH PROJECT AIMS:

10

The overall purpose of this work is to analyze the level of

satisfaction of consumer of LG and Samsung.

To develop insight about the factors involved in consumer

satisfaction related to white goods product in the transition phase of

globalization.

11

OBJECTIVE OF STUDY

The research will provide an invaluable opportunity to conduct a research

and practicing the theoretical knowledge while pursuing BBA and

examining them against the ground realities.

I am ‘HR, Marketing’ specialization student it will provide me an

opportunity to gain first hand information in depth knowledge about

consumer behavior and issues related to comparative study.

I am concentrating on developing questionnaire and retrieving information.

Apart from it I also collect secondary data, mainly taken from journals,

newspapers and Internet will also be taken into account for this research.

PROFESSIONAL OBJECTIVE:

This Dissertation project is a study of consumer satisfaction in white goods

products of LG and Samsung will be based on the comparison between LG

and Samsung consumer satisfaction.

What are the factors that affect the

consumer satisfaction?

Determining the factors affecting the

consumer satisfaction.

What is the magnitude of those factors

regarding the consumer satisfaction?

12

PERSONAL OBJECTIVE:

Personal objectives in this project are to gain experience of working in the

market and interacting with people and knowing their views as consumer.

Enhancing the indirect learning about the market and consumer behaviour is

another objective which will be helpful further in future in the field of

marketing.

13

\

14

CONSUMER DURABLE HISTORY

The Consumer Durables industry consists of durable goods and appliances

for domestic use such as televisions, refrigerators, air conditioners and

washing machines. Instruments such as cell phones and kitchen appliances

like microwave ovens were also included in this category. The sector has

been witnessing significant growth in recent years, helped by several drivers

such as the emerging retail boom, real estate and housing demand, greater

disposable income and an overall increase in the level of affluence of a

significant section of the population. The industry is represented by major

international and local players such as BPL, Videocon, Voltas, Blue Star,

MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments:

Consumer Electronics and Consumer Appliances. Consumer Appliances can

be further categorized into Brown Goods and White Goods. The key product

lines under each segment were as follows.

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 market

15

With 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 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.

INDUSTRY SIZE, GROWTH, TRENDS:

The consumer durables market in India was estimated to be around US$ 5

billion in 2007-08. More than 7 million units of consumer durable

appliances have been sold in the year 2006-07 with colour televisions (CTV)

forming the bulk of the sales with 30 per cent share of volumes. CTV,

refrigerators and Air-conditioners together constitute more than 60 per cent

of the sales in terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent

while direct cool segment has grown by 9 per cent. Companies like LG,

Whirlpool and Samsung have registered double-digit growth in the direct

cool refrigerator market.

16

In the case of washing machines, the semi-automatic category with a higher

base and fully-automatic categories have grown by 4 per cent to 526,000

units and by 8 per cent to 229,000 units, respectively. In the air-conditioners

segment, the sales of window ACs have grown by 32 per cent and that of

split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite

high, the markets for both C-TV and refrigerators were shifting to the semi-

urban and rural areas. The growth across product categories in different

segments is assessed in the following sections.

Consumer appliances are electronically operated machines that are used

primarily in domestic activities like cooling, heating, cooking, cleaning,

refrigerating, entertainment etc. Based on the tasks performed by them they

are classified as entertainment products, cooling products, heating products,

photographic products, household etc.

Appliances which are required for fulfilling daily needs of a household come

under kitchen appliances. Consumer appliances are electronically operated

machines that are used primarily in domestic activities like cooling, heating,

cooking, cleaning, refrigerating, entertainment etc. Based on the tasks

performed by them they are classified as entertainment products, cooling

products, heating products, photographic products, household appliances etc.

Appliances which are required for fulfilling daily needs of a household,

come under kitchen appliances like refrigerator, water purifier, air purifier,

toaster, microwave ovens etc. Entertainment products are further divided

into two sectors- audio & video. The audio sector consists of hi-fi systems,

cassette, CD, MP3 players, stereos, wireless headphone. While the video

sector consists of television, plasma TV, LCD TV etc. Another industry

17

which is on a boom is gaming industry consisting of video games, game

consoles etc.

The growing needs of the consumers are driving the latest technological

innovations in the consumer appliances industry. A look at today's consumer

appliances market, there are consumer electronics products with features like

ultra thin designs, function convergence, environmental protection, energy

saving and lower prices. New products, which are easy to use and provide a

lot of facilities, are being launched by the consumer appliance manufactures,

which provide a wide choice to the consumers. With so many selections and

so many different technologies, products have increased considerable market

demands and giving a hard time to manufacturers & suppliers of consumer

electronics appliances.

China, Taiwan and Italy are the largest manufacturers of consumer

appliances. Global consumer appliances industry's sales revenues reached

US$950 billion in 2006.According to an estimate the consumer appliances

industry in China will be the strongest by 2010, as the demand for consumer

appliances is rising because of the rapid pace of economic development

taking place in China and low cost of manufacturing of these appliances.

China is expected to become the second largest market for consumer

appliances in the world after US.

One of the biggest working parts of any household is home appliances for

the kitchen, and without a solid line up, could be difficult to manage home

cooking. When choosing any set of appliances, it's important to look at

several key features, prices, and warranty information. Making an educated

decision about these things can help save time and money.

18

First and foremost, before buying anything in regards to home appliances for

the kitchen, it's important to measure the space that you have free. This is a

crucial thing to remember no matter what you're purchasing in the near

future. By measuring the free space that you have, you can make sure that

you will be utilizing your appliance without any major complications. The

second step is to set a budget. Setting a budget might seem trivial, but it will

save you energy when you're ready to purchase your items, and are faced

with a purchasing decision.

After measuring your space and setting a budget, consider looking at the

various color options that are available to you. Many people want to match

their kitchen décor with their appliances. It's important to consider what

style and décor you want to go with, especially if you're buying home

appliances for the kitchen, separately. If you purchase a limited edition

color, or a color that isn't necessarily the norm, you might have a hard time

matching everything in your kitchen. Consider something standard like

black, white, or stainless steel if you're purchasing items one by one. If

you're buying sets, you might be able to match everything with relative ease,

but it might cost more up front.

Energy star rated options are gaining popularity amongst all different walks

of life. Look for highly efficient, energy saving appliances, and you'll ensure

money is saved over time. Highly efficient machines run better and faster,

and consume at least 30% less energy than other options. You'll be amazed

at the low cost of use, and definitely be happy to own one. It is true that they

cost more up front, but you will save money over time. Traditional options

still abound, so if you're not ready to take the energy saver leap, do not fret,

there are still other options available for the consumer.

19

Another key point to looking at home appliances for the kitchen is warranty

information. Never forget to read the fine print on any warranty information

that comes coupled with your investment. Some manufacturers offer a

limited time; limited warranty and that could end up costing you down the

road. To make sure you have peace of mind, always look for extended

warranty options, or make sure you understand the terms of your limited

warranty. Making sure your appliance works for the longevity you desire

from your home is vital to picking out the right appliance.

There is a plethora of options to explore in regards to ovens, sinks,

refrigerators, and so much more. Always shop around for the best price, and

make sure you look at several key points before investing in anything. You

can ensure peace of mind by doing some preliminary thinking, and investing

in the right option that fits your needs.

20

CONSUMER DURABLE PRODUCTS

REFRIGERATOR

WASHING MACHINE

21

LCD TV

22

SWOT ANALYSIS: CONSUMER DURABLE HISTORY

STRENGTH WEAKNESS

o       “Accessory to Necessary” Air-conditioners are no longer perceived to be a item of luxury.

o       Advancement of technology which gives the companies ability to introduce new products and new product features.

o       High Growth. Key drivers being Urban and Rural.

o       Government Policies in favour of

Industry includes infrastructure

development, reduction in excise duty

and so on.

o       Supply continues to outstrip Demand. Demand Cyclical and seasonal.

o       Volatile performance of the agricultural sector have a negative impact on demand. The sector's performance is highly dependent on monsoon and reforms, which has failed often.

OPPORTUNITY THREAT

o       Diversification. Developing new products for new markets.

 

o       Easy availability of finance has stimulated consumers to buy durables.

 

o       Changes in Consumer Outlook from spend now-save later mentality leading to high disposable income.

o       Dozen companies operating in the white goods segment. Prices would continue to remain depressed and margins will be under pressure.

 

o       Threats of cheaper imports from

China and other South East Asian

countries

23

BRIEF HISTORY OF LG

LG INDIA PVT.LTD

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).

The trend of beating industry norms started with the fastest ever-nationwide

launch by LG in a period of 4 and 1/2 months with the commencement of

operations in May 1997. LG set up a state-of-the art manufacturing facility

at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

This facility manufactured Colour Televisions, Washing Machines, Air-

Conditioners and Microwave Ovens. During the year 2001, LG also

24

commenced the home production for its eco-friendly Refrigerators and

established its assembly line for its PC Monitors at its Greater Noida

manufacturing unit. The beginning of 2003 saw the roll out of the first

locally manufactured Direct Cool Refrigerator from the plant at Greater

Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune,

Maharashtra that commences operations in October this year. Covering over

50 acres, the facility manufactures Color Televisions, Air Conditioners,

Refrigerators, Washing Machines Microwave Ovens Color Monitors and

GSM phone. The Greater Noida manufacturing unit line has been designed

with the latest technologies at par with international standards at Korea and

is one of the most Eco-friendly units amongst all LG manufacturing plants in

the world. LG has been able to craft out in eight years, a premium brand

positioning in the Indian market and is today the most preferred brand in the

segment. Various studies have shown that the consumer is well informed on

the health awareness front.

LG was one of the first companies who recognized the emerging change in

consumer needs and decided to differentiate their products on the basis of

technology which appealed to the consumer on the basis of health benefits.

Its vision was to become a 'Health Partner' for its consumers worldwide and

therefore formulated its corporate philosophy to make peoples' lives better,

convenient and healthier. The CTV range offered by LG has 'Golden Eye'

technology, which senses the light levels in the room and adjusts the picture

to make it more comfortable for the eyes. The entire range of LG air-

conditioners have 'Health Air System', which not just cools, but keeps

25

pollution out. Similarly, microwave ovens have the 'Health Wave System',

refrigerators have the 'PN System', which preserve the nutrition in food and

washing machines have 'Fabricare System', which takes the health factor

down to ones clothes. All the products offered by the company have unique

technologies, developed by its R&D departments that give consumers a

healthier environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the

consumer electronics, home appliances and computer peripherals industry.

The company had till the month of October 2001 achieved a cumulative

turnover of Rs 5000 Crores in India since its inception in 1997, making it the

fastest ever Rs 5000 Crores clocked by any company in the Indian consumer

electronics and home appliances industry. Having achieved this milestone,

LG achieved another benchmark with the first ever sales of One lakh ACs

(Windows and Splits) in a calendar year.

In Colour Televisions having set the sales target of one million units of

Color Televisions for 2002, LG has already achieved the one million mark in

the month ahead of its target. In 2003, LG has emerged as the leader in

Colour Televisions, Semi Automatic Washing Machines, Air Conditioners,

Frost-Free Refrigerators and Microwaves Ovens. In the year 2004, LGEIL

achieved unprecedented sales efficiency both in Direct Cool and Frost Free

segment and sold more than 1 million units of refrigerators outperforming

industry expectations.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances and computer peripherals industry today. LG

26

Electronics is continually providing superior technology products & value

for money to more than 50 lakh households in India.

The company has achieved a turnover of Rs 6500 crore in 2004 and aims to

touch a turnover of 10 Billion US Dollars by 2010 and commands an

enviable position in the GSM mobile phone market. It has already started

manufacturing of GSM phones in its plant at Pune.

LG India has also been taking on a slew of initiatives as a part of Corporate

Social Responsibility. LGEIL is proud to have adopted about 24 villages

around our Greater Noida facility. LG extends Free Medical Care, which

comprises of free checkups and a free distribution of medicines on a daily

basis. LGEIL is also generating self-employment opportunities for the

people in the form of tailoring, knitting etc. in addition to all this, LG also

sends veterinary doctors regularly to these villages. Besides all this, LG

India is one of the very few companies in the country that has an internal

Energy, Environment, Safety and Health Department. This function caters to

activities like Energy Conservation, Environmental Issues, Work Place Fire

and Safety as well as Occupational Health for the benefit of the employees.

VISION OF LG INDIA PVT.LTD.

LG Electronics is pursuing the vision of becoming a true global digital

leader, attracting customers worldwide through its innovative products and

design. The company’s goal is to rank among the top 3 consumer electronics

and telecommunications companies in the world by 2010. To achieve this,

27

we have embraced the idea of “Great Company, Great People,” recognizing

that only great people can create a great company.

28

AWARDS

New Delhi, October 24th October, 2007: LG Electronics India Pvt. Ltd.

today achieved another landmark by bagging the award for excellence in

Exports of Electronic Hardware by the Electronics and Computer Software

Export promotion Council of India (ESC) .This achievement is another

feather in the cap for the company after achieving a milestone of USD 186

million in exports for calendar year 2006. This milestone has reiterated LG’s

prime position not only in the domestic but the international markets as well.

The award was received by Mr. Ajay Sapra, DGM, Corporate Exim,

LGEIL and Mr.Jatin Madan, AGM, Exports, LGEIL, on behalf of LG

on 24th October, 2007 at a function held at Hall Kamal Mahal, Hotel

Maurya Sheraton, Sardar Patel Marg, New Delhi. Shri A. Raja, Union

Minister for IT and Communications presented the Awards.

LG has emerged as top player in Consumer Electronics Exports and is

exporting a range of products primarily to the highly competitive markets of

Middle East, Asia and Africa. The award was given to LG for its excellent

exports performance in Consumer Electronics (CTV, Monitors, GSM,

Personal Computers and ODD) during the financial year 2005-2006.

During this period, LG achieved exports worth USD 133 Million defined

product categories.

29

QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost

satisfaction by supplying zero defects.

30

LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s 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 opportunities

d) Equal Treatment

Management Principle - Creating value for customer

CODE OF CONDUCT LG

1. Responsibility and obligations to customers :• Respect for Customers

31

• 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-

32

the art manufacturing facility at Greater Noida, near Delhi, in 1998, with

an investment of Rs 500 Crores.

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 crore.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances, and computer peripherals industry today.

33

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.

34

BRIEF HISTORY OF SAMSUNG

35

INDIASamsung India is the hub for Samsung’s South West Asia Regional

operations. The South West Asia Regional Headquarters looks after the

Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan

besides India. Samsung India which commenced its operations in India in

December 1995, today enjoys a sales turnover of over US$ 1Bn in just a

decade of operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch

Offices located all over the country. The Samsung manufacturing complex

housing manufacturing facilities for Colour Televisions, Colour Monitors,

Refrigerators and Washing Machines are located at Noida, near Delhi.

Samsung ‘Made in India’ products like Colour Televisions, Colour Monitors

and Refrigerators are being exported to Middle East, CIS and SAARC

countries from its Noida manufacturing complex. Samsung India currently

36

employs over 1600 employees, with around 18% of its employees working

in Research & Development.

GROWING TO BE THE BEST:- Samsung India aims to be the ‘Best

Company’ in India by the Year 2006. ‘Best Company’ in terms of both the

internal workplace environment as well as the external context in which the

Company operates. Samsung aims to grow in India by contributing to the

Indian economy and making the lives of its consumers simpler, easier and

richer through its superior quality products.

“Our aim is to gain technological leadership in the Indian marketplace even

as our goal is to earn the love and respect of more and more of our Indian

consumers.”

Mr. S.H. Oh, President & CEO

Samsung South-West Asia Regional Headquarter.

MANUFACTURING:

Samsung’s state of the art highly automated manufacturing facilities are

located at the Company’s sprawling Noida Complex. Enjoying the Number

1 position amongst all Samsung subsidiaries in terms of productivity and

having been ranked as the subsidiary with the ‘Best Quality System’,

Samsung India prides itself for its Manufacturing Value Innovation.

The manufacturing capacities of the Samsung products manufactured in

India (as of Year 2004) are:

37

PRODUCT CAPACITY DETAILS

CTV 1.5 million Curved & Flat TVs

Colour Monitor 1.5 million CRT & TFT LCD Monitor

Refrigerator 0.6 million Frost-free and Conventional Refrigerators

Washing

Machine

0.5 million Fully Automatic and Semi Automatic

AC 0.4 million Window and Split ACs

Samsung India is working with and contributing to the development of the

domestic component industry in the country. The Company is working with

its partners to improve their product quality and processes. Thus, Samsung

vendors are sent to different Samsung subsidiaries to meet the Samsung

overseas vendors in order to benchmark their own processes. Samsung is

also training its vendors on eco-partnership so that the components

manufactured by them are ‘eco friendly’ as per ROHS norms.

VISION OF SAMSUNG INDIA PVT. LTD.

38

The vision of SAMSUNG Electronics is "Leading the Digital Convergence

Revolution" and our mission to carry out this vision is "Digital-ε Company.

There are two requirements for being "Digital-ε Company", and the first is

clearly about being "Digital" producing not just digital products, but

products that inspire digital integration across our entire company. The

second part of being a "ε" is to use ε- Processes connecting R&D,

production, and marketing to customers, partners, and the market-disciplined

approach is the way we bring value to every part of our supply chain,

including products data and customer relationship through Enterprise

Resource Planning (ERP).

SAMSUNG Electronics will network core components such as memory

chips, system-LSI and LCDs as well as A/V, computers, telecommunication

devices, home appliances and other stand-alone products into a total solution

of digital convergence era.

AWARDS

Manufacturing Value Innovation – Gold Award for Productivity,

Cost, Speed at the Visual Display Plant – November 2004.

Management Innovation Award – December 2004

Samsung Quality Award – November 2004 for Colour Television &

Colour Monitor Plants

Samsung Innovation Award – November 2004 for Refrigerator Plants.

LG V/S SAMSUNG

39

COMMUNICATION STRATEGY OF LG

- Tag line “Life’s Good”.

- Brand ambassador “Abhishek Bachchan”.

- LG positioned itself as an Indian brand. They are hitting the

emotional attributes of Indian consumer.

- The warmth and affection that a brand showers upon its

target audience will be reciprocated.

For Television market they are using child, because child

plays the role of influencer in purchase of TV sets.

LG home appliances communication message is totally

based on health message like “Golden eye technology” and

“Intello”.

40

They want to position the brand as being young, vibrant and

premium. So they picked Abhishek as he portrays Indian

values.

COMMUNICATIONSTRATEGY OF

SAMSUNG

Tag line “Everyone's Invited or Its hard to

- Brand ambassador “Amir Khan”.

- Samsung the second market in home appliances in India.

- Brand communication message “Digit All Inspiration”.

- They positioned themselves as a brand which offers freshness

and technology strong.

- Samsung in India signed seven cricket celebrities to cash the

image and popularity of cricket.

41

In order to create brand awareness, they came up with Team Samsung

India.

They want to tap their target audience by offering them fresh product.

OTHER MAJOR PLAYERS

42

A Man of ideas. A man of substance. A man of vision, Shri Nandlal

Madhavlal Dhoot, the founder of the Videocon group, completed his

education in Ahmednagar, Pune and in Maharashtra, India. A successful

sugarcane and cotton grower, he boldly ventured forth and imported

machinery from Europe, setting up the Gangapur Sakhar Karkhana (Sugar

Mill) in 1955, at a time when the village had no electricity, thereby

unleashing an industrial revolution.

The die was cast. Over the years, Nandlalji's pioneering spirit found

expression in a myriad ways, earning him the well-deserved reputation of

the doyen of industrial activity in Marathwada, India.

In early 80s, Nandlalji initiated his three sons - Venugopal, Rajkumar and

Pradeep into the business. Through a technical tie-up with Toshiba

Corporation of Japan, he launched India's first world -class Colour

Television: Videocon.

Today, Videocon is a household name across the nation - India's No.1 brand

of Consumer Electronics and Home Appliances, trusted by over 50 million

people to improve their quality of life.

Onida was started by G.L. Mirchandani and Vijay Mansukhani in 1981 in

Mumbai.[4] In 1982, Onida started assembling television sets at their factory

43

in Andheri, Mumbai. Since then, Onida has evolved into a multi-product

company in the consumer durables and appliances sector. Onida achieved a

100% growth in ACs and microwave ovens and a 40% growth in washing

machines last year. ONIDA came out with the famous caption 'Neighbour's

envy, Owner's Pride', another popular theme of the ads was a devil

complete with horns and tail in the 1980s. The devil was replaced by a

married couple- Siddharth and Ritu.

ONIDA TODAY

Onida is a popular electronics brand in India. Onida has a network of 33

branch offices, 208 Customer Relation Centers and 41 depots spread across

India.[6] As on 31 March 2005, Onida had a market capitalization of 301.46

crore.

Mirc Electronics won an “Award for Excellence in Electronics” in 1999,

from the Ministry of Information Technology, Government of India.

Onida with its Sales & Marketing office in Dubai reported a 215 per cent

export growth in two years, setting the base for an increased robust

international presence.

In addition to the Gulf countries ONIDA has now a sizeable presence in

Russia, Ukraine and neighboring CIS countries. ONIDA has already crossed

100000 marks in CTV exports to Russia in a span of just 2 years and plans

to grow in these markets at a much faster pace.

Apart from Television Exports to Russia, Onida also exports DVD Players

and High end LCD Televisions.

Ranked 34th most trusted brands in India according to The Brand Trust

Report published by Trust Research Advisory.

44

45

RESEARCH METHODOLOGY

HYPOTHESIS:

There is no significance difference between market strategy of LG and

Samsung’s white goods products.

This project has been structured in the following manner. This is followed

by scope of research and sample design, which encompasses the following:

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

46

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 buyer’s behavior, consumption

pattern, 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. 

Research design specifies methods and procedures for study. In this study

the company was interested to know the demand of different consumer

47

durable product, about competitors, and potential for LG and SAMSUNG

procedures to be used for the study among retailers/dealer and. However it

was exclusively personal interview.

TYPES OF RESEARCH

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

48

study can be complex, demanding a high degree of scientific skill on part of

the researcher.

Descriptive studies are well structured. An 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

49

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 flexible in its approach, but a descriptive study in contrast tends to be

rigid and its approach cannot be changed ever now and then.

DATA COLLECTION METHOD

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.

This report was prepared after collecting data from the retailers/ dealers and

past data was arranged from the various studies conducted in last few years

and various other records of company. 

PRIMARY DATA:

50

These data were collected by personal interview with retailers/ dealer. For

this purpose questionnaires were prepared in such that all necessary data

would be collected.

: For primary data collection, we have to plan the following four important

aspects.

Sampling

Research Instrument

SECONDARY DATA:

Information regarding the project, secondary data was also required. These

data were collected from various past studies and other sources of the

company.

- The Company’s profile, journals and various literature studies are

important sources of secondary data.

DATA ANALYSIS AND INTERPRETATION

1. Questionnaires

2. Pie chart and Bar chart

51

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.

52

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: 07

No. of question related to LG product: 03

No. of people met during the research: 200

No. of respondents during the research: 50

SAMPLE UNIT

Professionals, Business man,

53

Employees, House wife,

Working women, Students

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE

10 Dealers

RESEARCH TOOL

Questionnaires

RESEARCH AREA

          Mathura District-

Mathura city

Holi Gate

Krishna Gate

Dampier Nagar

54

SCOPE OF RESEARCH AND SAMPLE DESIGN

1. SCOPE OF RESEARCH

The scope of research can be classified across two aspects:

(a) Target Market:

The Study is restricted to the Mathura region. Target region is one of the

industrialized locations and densely populated with middle class family.

(b) Target Respondents:

The Study is focused to the owner’s of the white goods products of LG and

Samsung.

2. SAMPLE DESIGN

55

Universe: Mathura.

Population: consumer of white goods movers across Mathura in Uttar

Pradesh.

Sample Size: A sample size of 40 has been taken for this study. 20

consumers for LG and 20 consumers for Samsung.

The key determinants of the sampling universe are:

o Consumers feedback

o Self Generated responses

o Existing and well informed Universe

3. METHOD OF HYPOTHESIS TESTING

My sample size was small (n < 30), independent and equally populated

mean. For the hypothesis testing t-test was used as statistical tool. A t-test

can be used for comparison of two population means in order to establish

whether there is any significant difference between two population means,

provided the following conditions are met:

4. SURVEY AND DATA COLLECTION

Primary data was collected through formal structured questionnaires, which

were administered personally. The structured format ensured greater control

over responses and facilitated easy tabulation, editing and analysis.

In last a projection was also made with the help of bar diagram of MS office.

56

POTENTIAL PROBLEMS

Reluctant ness of prospective subject to give time for filling

questionnaire.

Financial and time constraints are making me to compromise to some

extent.

LIMITATIONS

Every study has certain limitations. In this study, also there were certain

limitations, which could not able to solve.

1. The research was conducted in a very small area.

2. This 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 me. I had only 25 days to complete

my 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.

57

5. Only the upper-middle class family was considered while filling up

this questionnaire, whereas an average middle class family would

have made a good choice as well for the study.

6. The sample size is also very small which represent my research on

consumer behavior.

This study doesn’t reflect the customer’s perception and preferences

regarding the two brands in the entire nation. No region outside Mathura

was considered for the same due to the above limitations as well as lack

of movement on the part of researcher.

DESCRIPTIVE WORK OF SUBTOPIC

SAMPLING PROCEDURE

Single stage Non-random convenience sampling was undertaken to obtain

information promptly and inexpensively. The sample size of 30 was taken.

The respondents were contacted mainly at their home and the questionnaire

was administered by me in person and the doubts regarding questions were

cleared.

METHOD OF ANALYSIS AND INTERPRETATION

Microsoft Office was used during project for analyzing the results and

preparing graphs, which were prepared especially for the survey, Microsoft

Word was used for designing the Questionnaire and Microsoft Excel was

used for analysis of data gathered. Data was recorded on regular basis and

58

the results were obtained at the end from which inferences were drawn. In

order to minimize the error in result and obtaining result in tabular and

systematic manner, I had used computer.

METHOD OF HYPOTHESIS TESTING

My sample size was small (n < 30), independent and equally populated

mean. For the hypothesis testing t-test was used as statistical tool. A t-test

can be used for comparison of two population means in order to establish

whether there is any significant difference between two population means,

provided the following conditions are met:

Each population is approximately normally distributed.

Sample size taken from each population is small (n < 30), but sample

do not have to be equal in size.

SURVEY AND DATA COLLECTION

Primary data was collected through formal structured questionnaires, which

were administered personally. The structured format ensured greater control

over responses and facilitated easy tabulation, editing and analysis.

Steps involved in this process are as follows:

First step was the literature review about the research topic and

then the preliminary proposal was prepared. For all this

internet, news paper was explored.

59

The next step involved was selecting research topic and

assessing the feasibility of topic regarding research and

developing hypothesis for which I contacted my mentor.

Then, questionnaire for the interview was prepared. It was the

most critical and important phase. The whole research and it

relevance was based on the right questionnaire.

Then, all data gathered was sorted, compiled and arranged for

analysis.

CONSUMER ELECTRONICS

OVERVIEW

The consumer electronics market is valued at $25 billion in 2006 and is

growing at a rate of 20% per annum.

PRODUCT COVERED

The consumer electronics sector can be segmented into VCD/DVD, home

theatre, music players, and color televisions (CTVs), MP3, digital cameras,

laptop etc. and white goods, such as, dish washers, air conditioners, water

heaters, washing machines, refrigerators, etc.

MAJOR PLAYERS

60

Before economic liberalization, there were only a few players like

Kelvinator, Godrej, Allwyn, and Voltas in the consumer durable market.

90% of the market was captured by these companies alone.

Then, after the liberalization, foreign players like LG, Sony, Samsung,

Whirlpool, Daewoo and Aiwa came into the picture. And today, these

players control major share of the consumer durable market.

Consumer electronics market is projected as shown in the graph

Growth

61

Consumer Durable/ White Goods Growth

Air Conditioner 20-25%

Refrigerator 5-10%

Microwave Ovens 25%

Washing Machines 5-10%

Consumer Electronics (Overall) 9%

GROWTH DRIVERS

Electronic market is growing very fast because rising living standards of

individuals, easy access to consumer finance, growing consumerism,

increase in disposable income, and large variety of choice as many foreign

players are entering in the market. But, sometimes due to the presence of

large number of players in the consumer electronics market, over-supply

situation arises.

62

LEADERSHIP

LG LEADERSHIP

63

Source: ORG-GFK

SAMSUNG PROFILE 2010

Wherever you are... in the hustle of the streets or the comfort of the

home...Samsung is part of the fabric of your life. As a global leader we are at

64

the forefront of change, anticipating today what our customers around the

world will want tomorrow.

FINANCIAL HIGHLIGHTS

AMOUNTS IN BILLIONS WON DOLLARS EUROS

65

Net Sales* 220,120.40 172.5 124.1

Total Assets 343,811.60 294.5 205.3

Total Liabilities 212,512.90 182 126.9

Total Stockholder's Equity 131,298.60 112.5 78.4

Net Income* 17,663.80 13.8 10

66

DATA ANALYSIS & INTERPRETATION

Q1.Which brand are you using?

67

INFERENCE

This depiction shows 55 respondents to the survey conducted and the

number of respondents who use specific brands.

Q2. Have you purchased any consumer durable during Exhibitions?

Yes

68

No

INFERENCES

1. 65 % of Customers have not purchased any consumer durable from

exhibitions. Only 35 % people have purchased.

2. 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.

3. Consumer also wants to compare to the different brand which are

available in the exhibition.

4. So exhibitions are more useful to increase brand awareness.

5. People are less interested to purchase product from exhibitions.

Q3. While purchasing consumer durable which parameter influences

you?

69

Price

Product feature

Brand

Service

Durability

INFERENCES

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% give importance to product feature Service 16% and durability

9%. Service is also a big factor for the customer they are less

interested in the durability.

Q4. From where you prefer buying consumer durables.

70

Exhibitions

Co.shoppee

Showroom

INFERENCES

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 5. You prefer to buy from the same as you have mentioned in Q.3

because of following reasons

71

Attractive Price

Service

Demonstrations

Offers

INFERENCES

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.

Q6. Which consumer durable you have and of which brand?

CTV

72

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.

Q7. How frequently you change your consumer durables?

73

1-3 years

3-5 years

5-10 years

More than 10 years

INFERENCES

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.

Q8. Complaint handling of the brand.

74

0

2

4

6

8

10

12

14

16

18

LG SAMSUNG

Excellent

very good

Good

Fair

Poor

INFERENCE

By the above bar diagram it is clear that the complaint handling of both the

brand is quite satisfactory. Most of the consumers using Samsung consider

that the brand’s complaint handling is excellent & very good. On the other

hand LG consumers are also quite satisfied with the service provided.

Q9. Did the consumers find in product what they were looking for?

75

0

2

4

6

8

10

12

1 EXECTLY

2 3 4 5 NOT ATALL

LG

SAMSUNG

INFERENCE

Most of the consumers of both the brand have responded positively but

consumers of Samsung are more satisfied with the features of their white

goods product they are using.

Few consumers of LG are not satisfied with features of the product they are

using.

Q10. Consumers using the brand since.

76

0

1

2

3

4

5

6

7

8

9

5 Yr.orabove

3 Yr. orabove

2 yr. orabove

1 Yr. orabove

6 monthsor above

LG

SAMSUNG

INFERENCE

Customer uses LG and SAMSUNG brands last some time. After using given his preference.

Q11. Number of white goods product consumers are using.

77

0 5 10 15 20

LG

SAMSUNG

One

Two

3 or more

INFERENCE

From the above graph we can say that most of the respondents were using on one to two products of Samsung but these is still LG which is used by the consumer and they are two to three white goods product of LG.

So on an average most of the consumers are having LG products.

Q12. Consumers’ buying intention in next six month regarding the brands.

78

0

2

4

6

8

10

12

14

LG SAMSUNG

Definotely will buy

Probably will buy

Undecided

Probably will not buy

Definetly will not buy

INFERENCE

If we see the bar diagram it is clear that there is very less consumer loyalty

in the white goods product and the consumers are supposed to analyze every

possible option and they are indecisive about their further buying. A bunch

of consumer is definitely not going to buy the Samsung and LG products.

On the other hand a substantial bunch of consumer is definitely going to

purchase the LG product.

Q13. Perception of consumers regarding ‘white goods products of this brand as value for money’.

79

0

2

4

6

8

10

12

1 Exactly 2 3 4 5 Not atall

LG

SAMSUNG

INFERENCE

From the above graph, we can say that most of the LG white goods , consumers are of the perception that the product is worth of the money. But it is not in the case of Samsung.

So LG is having the more positive response then the Samsung.

Q14. Consumers’ experience with the brand.

80

0

2

4

6

8

10

12

Excellent Verygood

Good Fair Poor

SAMSUNG

LG

INFERENCE

If we see the Bar diagram it is evident that the overall experience of LG and Samsung’s consumers satisfaction is average or more than average but Samsungs consumers experience with the product is excellent while the none LG consumer has responded as excellence experience.

Q15. Sales of LG and SAMSUNG in Monthly basis at Mathura region.

81

UsersLG SAMSUNG

INFERENCE

Through the inspection we know that LG have more sale compare to SAMSUNG in Mathura region

REASON:

LG provide “good quality of services” and SAMSUNG provide “customer satisfaction”.

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FINDINGS

CUSTOMER SURVEY FINDINGS

83

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 don’t

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 ISD’s 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.

84

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.

RECOMMENDATIONS AND SUGGESTIONS

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.

85

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” and in

SAMSUNG “AB KULKHE JEEYO INDIA”

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 company’s profit.

5. Company should concentrate more on its major drivers LCD, IT, and

GSM. Branding and promotions 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.

CONCLUSION

Before conclusion, it would be prudent to share the key learning derived

from this project. This has been enumerated below as follows: -

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The learning specific to this project has been that it provided us with a

real exposure to the market of white goods and its consumers level of

satisfaction.

People have different personalities and different attitudes and

therefore good communication is required to approach the consumers.

Gaining in-depth knowledge about the consumer’s behaviour and

white goods business in India as-well-as consumer loyalty.

LG Electronics & SAMSUNG Electronics Digital Appliances

Company is a global leader in the home appliance industry.

Dedicated to enhancing consumer lifestyles through its stylish and

advanced products by offering creative solutions for consumers’

everyday lives.

LIMITATION

The sample size chosen for interview was small in size (10). If the

sample size would have been large, the study will be more accurate and

near to reality as the confidence limit will be more.

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Another limitation was the scope of research is limited to Mathura only,

as personal interview couldn’t be conducted in more areas due to

inconvenience.

The questionnaire prepared for interviews has limitations also; the

questionnaire can’t cover the whole complexity of the topic. The

questionnaire covers some important points only.

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BIBLIOGRAPHY

BIBLIOGRAPHY

The majority of the project has been primarily our own research, findings and endeavor. Wherever the support of the Internet and books has been taken, the name of sites and books used are as mentioned below: -

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C.R. Kothari - Business Research methodology

Naresh K. Malhotra - Marketing research an applied orientation (4th

edition)

Philip Kotler - Marketing Management (11th edition)

Economic Times Newspaper

Business Line Newspaper

Business world

Business today

LG magazine

SAMSUNG magazine

www.1gindia.com

www.LG.com

www.samsung.com

www.google.co.in

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ANNEXURE

QUESTIONNAIRE FOR THE STUDY OF CONSUMER SATISFACTION

IN WHITE GOODS

Name of the researcher: ___________________________

Brands concerned: Samsung / LG

Location: ------Mathura-------------------------------------------------------

1. Are you using any electronic appliances?

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Yes No

2. Which brand are you using?

LG Samsung other,

Please specify: -----------------------------------

3. Why do you prefer LG/Samsung?

Durability Reasonable price better service

Quality other

4. Have you purchased any consumer durable during exhibitions?

Yes NO

5. While purchasing consumer durable which parameters influence you?

Price Product feature Brand

Services Durability

6. From where do you prefer buying consumer durables?

Exhibitions company shop showroom

7. You preferred to buy form the same as you have mentioned in Q.3

Because of following reason

Attractive price services demonstration

Offers convenience

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8. Which consumer durable you have and of which brand?

CTV LCD PLASMA REF

WM MW AC

9. How frequently you change your consumer durables?

1-3 years 3-5 years

5-10 ears More than 10 years

10. How do you see the compliant handling of the brand?

Excellent Very Good Good Fair Poor

1 2 3 4 5

11. Did you find what you were looking for?

Exactly Not at all

2 2 3 4 5

12. Why have you chosen this brand?

Price packaging availability others

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13. Since when have you been using this brand?

Last 5 years Last 3 years Last 2 years Last 1 year Last 6 months

Or above or above or above or above or above

1 2 3 4 5

14. How many white goods product of this brand you are using?

Three or more Two One

15. Do you intend to buy a new white goods product of this brand within

next six months?

Definitely Probably Undecided Probably will Definitely will

Will buy will buy not buy not buy

1 2 3 4 5

16. Do you think the products of this brand are value for money?

Exactly Not at all

1 2 3 4 5

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17. How is your experience with this brand?

Excellent Very good Good Fair Poor

1 2 3 4 5

Questionnaire

1) Study of Consumer Durable Market for SAMSUNG Electronics Ltd. With

Special reference To Mathura district.

Name of shop:

Address:

Contact no.:

95

1) Which consumer durable product you sell?

□C-TV

□Refrigerator

□Washing Machine

□DVD

□Microwave

□All of the above

2. How many no. of company’s product you sell?□ONE_______________________________________________□TWO______________________________________________

□THREE____________________________________________ □FOUR______________________________________________ □FIVE_______________________________________________ □SIX________________________________________________

3) Which is major brand of Colour-Television you sell from your shop?

□SAMSUNG

□LG

□ Videocon

□ Onida

□ Sansui

□Any other, please spacify------------------------

96

4) What is the important parameter for more sales of Colour-Television brand?

□Price

□ Quality

□ Services

□ Advertisement

□ Schemes

□All of the above

5) Which is major brand of Refrigerator you sell from your shop?

□ Godrej

□ Whirlpool

□ Ken star

□ LG

□ SAMSUNG

□ Videocon

□ Kelvinator

6) What is the important parameter for more sales of Refrigerator brand?

□ Price

□ Quality

□ Services

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□ Advertisement

□Schemes

7) What is the important parameter for more sales of Washing Machine brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes

8) What is the important parameter for more sales of DVD brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes

9) What is the important parameter for more sales of Microwave brand?

□Price

□ Quality

□ Services

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□ Advertisement

□ Schemes

10) Which product you give high profit margin?

□ Refrigerator

□ Air conditioner

□Television

11) What are your suggestions for SAMSUNG to increase the sales?

_____________________________________________________________

_____________________________________________________________

ANNEXURE

A. Questionnaire

1) Study of Consumer Durable Market for LG Electronics Ltd. With

Special reference To Mathura district.

Name of shop:

Address:

Contact no.:

99

1) Which consumer durable product you sell?

□C-TV

□Refrigerator

□Washing Machine

□DVD

□Microwave

□All of the above

2. How many no. of company’s product you sell?□ONE_______________________________________________□TWO______________________________________________

□THREE____________________________________________ □FOUR______________________________________________ □FIVE_______________________________________________ □SIX________________________________________________

3) Which is major brand of Colour-Television you sell from your shop?

□SAMSUNG

□LG

□ Videocon

□ Onida

□ Sansui

□Any other, please spacify------------------------

100

4) What is the important parameter for more sales of Colour-Television brand?

□Price

□ Quality

□ Services

□ Advertisement

□ Schemes

□All of the above

5) Which is major brand of Refrigerator you sell from your shop?

□ Godrej

□ Whirlpool

□ Ken star

□ LG

□ SAMSUNG

□ Videocon

□ Kelvinator

6) What is the important parameter for more sales of Refrigerator brand?

□ Price

□ Quality

□ Services

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□ Advertisement

□Schemes

7) What is the important parameter for more sales of Washing Machine brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes

8) What is the important parameter for more sales of DVD brand?

□ Price

□ Quality

□ Services

□ Advertisement

□ Schemes

9) What is the important parameter for more sales of Microwave brand?

□Price

□ Quality

□ Services

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□ Advertisement

□ Schemes

10) Which product you give high profit margin?

□ Refrigerator

□ Air conditioner

□Television

11) What are your suggestions for LG to increase the sales?

_____________________________________________________________

____________________________________________________________

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