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Consumer Satisfaction level of LG Products

A PROJECT REPORT ON

Study the consumer

satisfaction of L.G. product


Submitted To Maharishi Dayanand University, Rohtak In partial fulfillment of the requirement For the award of degree of MASTER OF BUSINESS ADMINISTRATION (Session 2009-2011) UNDER THE GUIDANCE OF: Ms. PARVEEN MANN Assistant Professor M.B.A Deptt. SUBMITTED BY: RUCHI KAPOOR 09/MBA/40

ROYAL INSTITUTE & TECHNOLOGY CHIDANA (SONIPAT)

OFMANAGEMENT

Consumer Satisfaction level of LG Products

DECLARATION

I RUCHI KAPOOR Roll no. 40 of class MBA 4th sem. of ROYAL INSTITUTE OF MANAGEMENT AND TECHNOLOGY CHIDANA hereby declare that the project entitled Study

the consumer satisfaction of L.G.

product

is an original work and same has not been submitted to any other

institution for awards of any other degree partially or wholly.

(RUCHI KAPOOR)

Consumer Satisfaction level of LG Products

PREFACE
All the learnings in our MBA course is practice oriented. However, hands-on experience in the corporate world during our course is very necessary to be able to test the ability and extent of learning of the student before fully entering the corporate world. Study

The

project

report

which

underwent

the consumer

satisfaction of L.G. product, was a wonderful learning experience. I


was assigned the project to study the effectiveness of motivation. With the guidance and suggestion provided by MS. Parveen Mann, my project guider, I started first phase of my project by preparing a questionnaire. After that I started with the second phase which involves research work pertaining to the employee analysis. In this report I have explained what I undertook based on research and my personal experience.

(RUCHI KAPOOR)

Consumer Satisfaction level of LG Products

ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of cut throat competition project is likely a bridge between theoretical and practical working, willingly I have prepared this particular project. First of all I would like to thank the supreme power, the almighty God who is obviously the one who has always directed me to work on the right path of my life. With his grace this project could become a reality. I feel highly delighted with the way my dissertation report on topic: Study

the consumer satisfaction of

L.G. product
Any accomplishment requires the effort of many people and this work is not different. Firstly, I would like to extend my sincere thanks to Ms. Parveen Mann for his able guidance, regular counseling, keen interest and constant encouragement, without which the project would not have, a successful end. I am highly thankful to him for his helpful attitude, regular coaching and inspiration. Also, I would like to thank to all my friends and family members for their support given to me time to time. I dont have words to express my thanks, but still my heart is full of gratitude for the favors received to me from the every person

(RUCHI KAPOOR)

Consumer Satisfaction level of LG Products

EXECUTIVE SUMMARY
The study has been carried out to Study the consumer satisfaction of L.G. product. L.G.is the first major Korean business group to introduce the holding company structure and it has become popular among the many countries of the world. In which INDIA is one.L.G.corporate has been divided in to three parts. These are as follow (1) L.G Electronics (2) L.G. Chemicals (3) L.G. Telecommunication In this emerging world L.G. product satisfy the needs of various income groups. Today is the world of competition where every product has to face it L.G. is also facing it because of its good quality and variety of product. Research methodology refers to the tools and methods used for obtaining information for the purpose of the subject study. Both primary and secondary data are used to obtain information. The main objective of the research is to study the satisfaction level of the L.G product users A sincere effort has been made to carry out the study of not only the customer response but also facts about the company and the competition faced by the company. L.G. Company has to face the competition from Samsung, ONIDA, VIDEOCON and SONY, etc.

Consumer Satisfaction level of LG Products

OBJECTIVE OF THE STUDY

Today L.G. provides a variety of products. Many people in India prefer to buy a L.G. product. So the main objective of the research is to study the satisfaction level of the L.G product users. Besides the main objective there are some SUB objectives are as under: 1) 2) 3) 4) 5) To study about the company. To study the variety of products provided by the company. To know the share of the company in the overall Indian market. To know why people prefer to buy L.G.products. To know the various features which people like in the L.G. products?

Consumer Satisfaction level of LG Products

SIGNIFICANCE OF THE STUDY


L.G. is major Korean business group to introduce the holding company structure and it has become popular among the many countries. Its important to see why people buy L.G. products. In India there are lot of companies, which provides the same products. Now its important to see how L.G face the competition makes a good position in the market. L.G is aiming at first class company. It attracts the customers. . The project study throws a light on what features in L.G. products the customer like the most and to what extent they are satisfied from the performance of the L.G. products.

Consumer Satisfaction level of LG Products

Consumer Satisfaction level of LG Products

Corporate identity

What does LG stand for?


As LG is not an acronym, there is no full name for LG.

On renaming the Group, we considered 'LG' to be the most appropriate for a new Group name that could integrate different images of two main streams of the Group's businesses, the Chemicals led by 'Lucky' and the Electronics & Telecommunications led by 'GOLDSTAR' while including various brand images of other business fields. Signature The signature of LG being the most important element in communicating with LG's Brand Image, any change or distortion of proportion, spacing or resizing at will is absolutely prohibited. The signature shall be used with consistency and uniformity among all kinds of media. Restrictions and rules of the corporate Identification Program shall always be respected.

LG Companies which share not only the LG brand and business philosophy but also the goal of being among the top in their categories

Consumer Satisfaction level of LG Products

L.G. COMPANIES

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Consumer Satisfaction level of LG Products

HISTORY OF L.G. COMPANY


FIRST PHASE (1998-1999): Improvement of the Financial structure
During this phase, the goal of restructuring was to overcome the Asian financial crisis of the late 90's by improving LG's underlying financial structure. Within these two years, LG attacted a total of US$3.65 billion and the total amount of rights offerings reached \4.8 trillion. These efforts helped ensure a solid financial structure and successful avoidance of a cash flow crisis.

Second Phase (1999-2000): Restructuring of Business Portfolio


At this second stage, LG implemented arrange of strategic restructuring initiatives such as selling non-core assets, separating non-cord affiliates from the group and spinning-off units based on its 'select and focus' strategy.

Third Phase (2000-2003): Realignment of Equity Investment Structure


LG has entered the third strategic phase of its proactive restructuring program, leading to the company's improved investment structure. LG announced '21st Century Vision Management Structure' in July 2001. This forms the logical conclusion of LG's conversion to a holding company management structure by 2003, and is set to enhance LG's competitive ability on the global stage

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Consumer Satisfaction level of LG Products

Vision of the L.G.


LG's vision is to become the best in its class by winning customers' acclaim as a true leader in the global market

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Consumer Satisfaction level of LG Products

MANAGEMENT PRINCIPLES
LG's management principles state the purpose of LG's business activities, and also provide a basis for its operations. It embodies the key concepts of "Creating value for customers" and "Respecting human dignity."

LG believes that customers make up the very foundation of our business. That is why LG places the highest priority on serving encourages through principle customers, its people and to This strong

create true value for customers innovation. provides a

basis for LG's operation that is targeted at winning the hearts of the customers by offering them truly innovative products.

LG believes that the source of its innovation lies in its people. "Respecting human dignity" implies that LG values the 13

Consumer Satisfaction level of LG Products

Essential Education System by Rank


LG executives and employees should complete essential educational courses by rank in order to develop as core talented individuals with superior working abilities and base knowledge

CODE OF CONDUCT
Jeong-Do" Management is LG's unique code of conduct that governs our management activities. English translation of "Jeong-Do" is "Right Way." "Jeong-

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Consumer Satisfaction level of LG Products

Do" Management is the way we display our uncompromising integrity in pursuing LG's management principles.

LG realizes it management principles through the practice of "Jeong-Do" Management. "Jeong-Do" Management is a code of conduct that is indigenous to LG and governs every aspect of LG's management activities. This code is founded on the principles of ethics, but goes beyond ethical management and requires a continuous build-up of competence. The practice of "Jeong-Do" Management not only includes open and fair competition but also highlights building the competence necessary for LG people to create substantial value for customers, and to earn their confidence. "Jeong-Do" Management is a manifestation of the uncompromising integrity that LG exercises to fulfill our fundamental beliefs of creating value for customers through management based on respect for human dignity.

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Consumer Satisfaction level of LG Products

L.G.CHAIRMAN

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Consumer Satisfaction level of LG Products

ORGANISATION

Business Results in 2008


Mobile Communications Company is leading growth in both sales and profit largely due to the remarkable performance by the mobile handset division. As a cash cow business, Digital Appliance Company showed the highest profitability despite the very challenging business environment. Digital Display Companys profitability was relatively low mainly due to the fierce competition in PDP module business. Digital 17

Consumer Satisfaction level of LG Products

Media

Company,

however,

maintained

its

profitability

through

continuous business rationalization .

(bn KRW)
2008 Sales DA DD DM MC Others Total 6,216 4,983 3,803 9,484 174 24,659 Operating Operating Profit Margin 448 89 174 636 -97 2,503 7.2% 1.8% 4.6% 6.7% -55.7% 5.1% Sales 5,649 4,174 4,069 6,106 179 20,177 2009 Operating Operating Profit Margin 497 191 173 319 -118 1,062 8.8% 4.6% 4.3% 5.2% -65.9% 5.3% Growth Sales 10% 19% -7% 55% -3% 22% Operating Profit -10% -53% 1% 99% -18% 18%

2008

2009

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Consumer Satisfaction level of LG Products

BOARD OF DIRECTORS(AS OF MARCH 2009)

S.S. Kim CEO of LG Electronics (Vice Chairman) Director

Young-Soo Kwon CFO of LG Electronics (Executive Vice President) Director

Suk-Jean Kang Chairman of CEO Consulting Group Outside Director

Yu-Sig Kang COO of LG Corp. (Vice Chairman) Director

Il-Sup Kim Chairman of Dasan Accounting Corporation Outside Director

Nyum Jin Professor of Sogang University Outside Director

Sung-Won Hong Chairman of G-Mobile Outside Director

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Consumer Satisfaction level of LG Products

Enhancing the Independence and Responsibility of the Audit Committee


To secure complete independence from the Company management and major shareholders, The Audit Committee is composed of three outside directors. The Committee's role is to examine all kinds of financial reports, and enhance In managerial the transparency and fairness approve as the supervisors. addition, committee members

appointment of outside auditors after carefully reviewing the outside auditor candidates' professionalism, independence, reputation, service capability, and ability to audit international businesses, as well as any possible business conflicts with the Company.

Audit Committee (As of March, 2009)


Suk-Jean Kang Chairman of CEO Consulting Group Outside Director Il-Sup Kim Chairman of Dasan Accounting Corporation Outside Director

Nyum Jin Professor of Sogang University Outside Director

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

L.G.WORLD CLASS PRODUCT


LG Electronics continues to develop and unveil cutting-edge digital products, and is consistently drawing the worlds attention as the fastest growing electronics and Telecommunications Company. Through its top-notch digital technologies and product leadership, the company is vigorously leaping forward to establish itself among the global top 3, while its wide variety of digital convergence products are advancing the ubiquitous age. LG Electronics is striving to create a convenient, pleasurable digital world for all customers around the world through its more innovative technologies and products.

GLOBAL NO. 1
Residential Air Conditioners - M/S 17.5% Through its outstanding product leadership, LG Electronics has landed No. 1 in sales in the global market boast for of residential air conditioners for six years in a row. Its air conditioners cutting-edge technologies such as health cooling, plasma air cleaning, and multi-power systems, thus offers the most optimum cooling, air cleaning, and power saving functions geared toward high-efficiency. Its picture-frame-type air conditioners also sport beautiful designs and colors, enhancing most interior decorations.

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Consumer Satisfaction level of LG Products

CDMA Handset - M/S 20.9% In 2005, LG Electronics sold 30.4 million CDMA mobile handsets around the world, posting the largest market share of 21%, according to a global mobile handset market survey Analytics, high-end effectively up-market market. report a released by Strategic research in North WCDMA global world-authoritative unveiled even the in

agency. This comes as LGs cutting-edge handsets, penetrating premium America, are gaining popularity and are market, thus establishing LG handsets as an brand the

Home Theater - M/S 16% LG Electronics rose to the top spot in the global home theater market in 2005. In particular, the company grabbed the No. 1 market share in countries such as Italy, the Czech Republic, Hungary, Australia, and South Africa. LG Electronics continues to develop a variety of world-class products ranging from VCRs to DVD recorders, digital amplifiers, to the worlds first wireless home theater systems, to super-slim DVD players.

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Consumer Satisfaction level of LG Products

DVD players M/S 10%

Since 2003, our DVD players took the biggest share in the global market for three consecutive years. Especially in 2004, received European magazinesBest Buy prize in recognition of its rightful place in advanced markets. The company is determined to develop a wide variety of nextgeneration audio-video products like portable DVD players and DVD recorders, to maintain its world leadership.

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Consumer Satisfaction level of LG Products

LG Electronics

Plasma TV

Driving Music Car

DVD Recorder

LG Art Cool

Robot Cleaner

LG Linear Compressor

LG Super Multi

LG Dishwasher

Personal Navigation

P1 Express Dual

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

MAJOR COMPETITORS OF L.G. IN INDIA

The major competitors of L.G.in INDIA are: Samsung ONIDA Whirlpool

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Consumer Satisfaction level of LG Products

WHIRLPOOL

The History of Whirlpool Corporation

90 Years of Bringing the Best to Every Home ... Everywhere


Since 1911, Whirlpool Corporation has grown from humble beginnings to a global enterprise with manufacturing locations on every major continent, 68,000 employees worldwide, and the leading brands in major home appliances.

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Consumer Satisfaction level of LG Products

Whirlpool has grown to the leadership position within the global appliance industry thanks to a keen understanding of our customers' needs and a firm commitment to addressing those requirements through our superb brands, products and services.

Every Home... Everywhere With Pride, Passion and Performance


These words represent the vision that will guide Whirlpool into the future. We create the world's best home appliances, designed to make life easier and more enjoyable for all people. Our goal is a Whirlpool product in every home, everywhere. We will achieve this by creating: Pride... brands Performance... results that excite and reward global investors with superior returns We bring this dream to life through the power of our unique global enterprise and our outstanding people... working together... everywhere. Our employees live by the values-based strategy that has made Whirlpool the international leader that we are today. Our values represent who we are to our customers, our investors and to each other. And the way they represent the company demonstrates how we do business: the right way. Respect in our work and each other

Passion... for creating unmatched customer loyalty for our

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Consumer Satisfaction level of LG Products

We've built an employee culture where all beliefs, perspectives and opinions are welcomed and valued. Integrity The high road is the only one we take; from the people we hire to the clients we serve. As we often say, There's no right way to do the wrong thing.

Diversity
By constantly seeking fresh approaches, new ideas and different outlooks, we build our success and secure our future.

Teamwork
From the first to the last, we take each step forward as a team.

Future Growth through Global Presence


After 75 years of providing U.S. customers with quality home appliances, Whirlpool turned its attention to global growth.

In

the late

1980s, Whirlpool

began

expanding its

manufacturing and marketing presence through a series of acquisitions that would eventually transform the U.S. company into the worlds largest major home appliance manufacturer serving customers everywhere.
Whirlpool in Brazil

Whirlpool continually leverages its significant global resources, brands and business processes to offer innovative solutions that are responsive to the unique lifestyles and needs of customers in ever region around the world. 32

Consumer Satisfaction level of LG Products

Our global procurement organization leverages the volume purchasing power of our worldwide operations to eliminate costs and redundancies across regions. Cross-regional teams of product development engineers collaborate on innovation initiatives for regional and global distribution. And our information technology organization provides Internet tools that cut the complexity and costs of doing business for Whirlpool and its trade partners. We also use our global platform to transfer key innovation and processes across regions and brands.

Whirlpools global platformwhich is supported by 68,000 employees and nearly 50 manufacturing and technology research centers around the globeprovides our operations and brands with capabilities that no other appliance manufacturer can match.

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Consumer Satisfaction level of LG Products

ONIDA
How it all began
ONIDA was started by Mr.G.L.Mirchandani and Mr.Vijay Mansukhani in 1981 in Mumbai. In 1982, ONIDA started assembling television sets at their factory in Andheri, Mumbai. Superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that ONIDA became a household name. Over the years, ONIDA has strengthened its reputation for the intelligent and pioneering application of technologies.

ONIDA Today
ONIDA today enjoys a strong equity among consumers making it one of the leading brands in India. Our constant endeavor to introduce products of substance that offer the very best in technology and the finest design have made ONIDA a leading player in the electronics and entertainment business today. ONIDA has recently made a foray in other household appliances including airconditioners, washing machines, DVDs, Plasma & LCD televisions and home theatre systems.

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Consumer Satisfaction level of LG Products

For offices, ONIDA has also introduced state-of-the-art multi-media presentation products.

The Network
ONIDA has a network of 33 branch offices, 208 Customer Relation Centers and 41 depots spread across India. MIRC Electronics shares are listed on the National and Mumbai Stock Exchanges. The company enjoyed a market capitalization of Rs.301.46 Cr. as on 31st March 2005. The transition of ONIDA from a family-owned business to a professionally managed company has largely been made possible by the vision of the Chairman & Managing Director, Mr.G.L.Mirchandani. Vision and Mission

Our Vision
To build a brand around substance. To communicate simple truths that customers understand. To become a leader in our chosen field and become a globally recognized, prestigious company through synergistic business investment, differentiation through innovation, passion through empowerment, cost through economies of scale and world class systems and procedures that bring in delight of stakeholders.

Our Mission

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Consumer Satisfaction level of LG Products

To benefit society at large through Innovation, Quality, Productivity, Human Development and Growth, and to generate sustained surpluses, always striving for excellence, within the framework of law, and in nothing but the truth in which we base every action.

MANUFACTURING PLANT

ONIDAS principal assembly operations are conducted in a state-of-the-art plant at Wada, 80 kms from Mumbai. The plant in Delhi caters to the production requirements for the Northern region. Our network of 33 branch offices 208 Customer Relation Center's and 41 depots across India ensuring that ONIDA products are available on retail shelves. At ONIDA, we recognize that we can strengthen our competitive edge if we produce as much as possible from a given capacity at the lowest possible cost. We reduced the time it takes for a single color television to be produced from 20 seconds to 12 seconds and increased the capacity from 0.5 million to 1.2 million sets during the year under review. 36

Consumer Satisfaction level of LG Products

In 2002-03, using the existing infrastructure, a decisive step forward was taken by entering into the manufacture of washing m

SAMSUNG

We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.

VALUES AND PHILOSOPHY

We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.

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Consumer Satisfaction level of LG Products

CEO

SAMSUNG delivers management reform through "New Management" to maintain high international competitiveness.

SAMSUNG stands by its commitment to its shareholders to continually excel as a world-class company.

SAMSUNG CHAIRMAN

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

COMPARATIVE SALES OF VARIOUS BRANDS


Refrigerators
he refrigerator market in India has been growing at a CAGR of 11.75% over the last four years. The sale of refrigerators increased from 2.15mn units in FY96 to 3mn units in FY00. However, the industry is still plagued with the problem of over capacities, as the installed capacity is about 5.2mn units.

The most selling Refrigerator Brand

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Consumer Satisfaction level of LG Products

Whirlpool has been a clear winner as the highest selling brand with about 36% of the respondents supporting it. The company has taken a clear lead over the others by concentrating on aggressive marketing, promotional activities and vastly improved brand image. LG and Samsung are fast gaining popularity as they together account for 40% of the response. These two Korean MNCs are concentrating on the >300ltrs Frost-Free segment. They have almost swept the entire market in this segment. Based on the chart above, Electrolux is not a very popular brand in Mumbai. This may be due to the fact that the Mumbai consumers are shifting their preference for frost-free type of refrigerators with larger capacities. LG and Samsung who are largely concentrating on this segment have very well leveraged this shift.

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Consumer Satisfaction level of LG Products

The refrigerator market in India has been dominated by the 165ltrs capacity. However, in the last 2-3 years there has been increasing demand for 200ltrs & above capacity. Presently, about 60% of the capacity is in the 165ltrs segment. The new capacities being installed (especially by the MNCs) are in the 220ltrs & above segment. The increasing competition in all segments of the refrigerator market has resulted in lower margins for both the manufacturers and the dealers. The market for refrigerators is expected to grow but at the same time the capacity is also expected to grow with LG, Samsung and Daewoo setting up their plants.

Washing Machines
Washing machines in India are divided into two broad segments semi-automatic and fully automatic. The semiautomatic machines form around 75-80% of the total washing machines market. The fully automatic machine was not very popular mainly in the earlier years due to the high price differential between the two. In addition to this, just as we saw above, the washing machine per se, is not as popular as a television or a refrigerator. Thus, most of the buyers have preferred to make smaller investments in this product category. However, with the washing machine becoming a widely accepted consumer durable and the price of the fully automatic machines being slashed, the demand for fully automatic machines is slowly picking up. Moreover, the replacement buyers who already have a semi-automatic washing machine, are the ones who prefer the fully automatic washing machine.

The most selling Washing Machine Brand


The market for washing machines in India has been growing at a significantly slow rate. Until 1998 Videocon was the market leader with about 50% of the total market share. However, with the entry of Whirlpool, LG & Samsung the competition scenario has changed. Market share of Videocon tumbled to 25% while Whirlpool grew at a healthy rate to attain a share of 17.5% during FY99. 42

Consumer Satisfaction level of LG Products

In the survey conducted, the dealers were asked to rate the popularity of the various washing machine brands based on the sales turnover at their dealerships. Their responses indicate the following trend.

Whirlpool is preferred by 34% of the dealers as the most selling brand, which is way ahead of the others. This trend completely reflects the expected market share for the various companies at the end of the current year. Whirlpool and Samsung have out done the other players in the washing machine market. Overall, the market for washing machines is expected to grow faster in the coming years with prices coming down and a variety of models being offered to the consumers. Consequently, there are many new entrants in this sector.

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Consumer Satisfaction level of LG Products

Whirlpool is the market leader in the refrigerators and is all set to lead in the washing machines sector as well. However, it will face tough competition from LG and Samsung, who are also growing at a healthy pace. Domestic companies like Videocon, BPL and Godrej are steadily losing popularity and will have to come up with new products and smart marketing techniques if they are to regain their market share. Besides taking a first hand knowledge on the performances of the various brands, we found some interesting facts about the consumer finance schemes and the importance given to the After Sales Services aspect by companies.

After Sales Service


The dealers have observed that the customers add a lot of value to the after sales service provided by the company while making a purchase decision. Customer Relationship Management is assuming more and more importance these days and companies cannot afford to ignore this. Based on the above response, Whirlpool and Samsung, provide better customer services as compared to others. The dealers were not very happy with Videocon in particular. In fact, some of them have stopped pushing Videocon products because of frequent consumer complaints.

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Consumer Satisfaction level of LG Products

The growing importance of Relationship Management

Consumer financing
Another area gaining importance in the industry is Consumer financing schemes. All the dealers agreed to the fact that the consumer finance schemes have resulted in the rise in the demand in a big way. Many Low and Middle income 45

Consumer Satisfaction level of LG Products

families who couldnt afford superior quality products are now finding it easier to satisfy their aspiring needs.

RESEARCH METHODOLOGY

Research refers to a search for knowledge. Research can also be defined as scientific and systematic search for pertinent information on the specific topic. So research means careful investigation or inquiry especially through search for new fact in branch of knowledge. Research is an academic activity and as such as term should be used in a technical sense. Research comprises defining and redefining problem, formulation hypothesis or suggested solution, collection, organizing and evaluating data, make deduction and research conclusion and careful testing the conclusion to determine whether they fit or not . Research purpose is to discover answer to question through the procedure of scientific procedure.

OBJECTIVE OF RESEARCH METHODOLOGY


Objective of the Research Methodology is to find out the customer satisfaction level of L.G.product users and to find out the variety of products offered by the company. Which is based on the survey of customer of L.G. To attain this objective the sample sizes are taken as below:

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Consumer Satisfaction level of LG Products

SAMPLE SIZE
100 people having L.G.products will be surveyed through a questionnaire. Questionnaire included some question, which check the satisfaction level and also cross check the answers of the responders.

SAMPLING TECHNIQUE: - Judgment sampling technique was used.

DATA COLLECTION
Both primary and secondary source were used to collect data for this project. The description of these data is as follows:

Primary data
Primary source include personal meeting with the customer having the L.G. products

SECONDARY DATA
Secondary source include various websites, magazines and brochures of the respective company.

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

Q1) Do you have L.G. product?

10% 13%

7% L.G. SAMSUNG BPL OTHERS

70%

INTERPERTATION
Out of 100 people 70 people were having the L.G. products. This shows that importance of L.G. is increasing day by day and more people preferred to buy a L.G. product.

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Consumer Satisfaction level of LG Products

Q2) ARE YOU FIRST TIME USER?

RESPONSE

NO 24%

YES 76%

INTERPERTATION
76 % people are using the L.G. products for the first time. Only 24% people are second time user of the same product. That is because of the less time period since L.G Company entered in to INDIA.

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Consumer Satisfaction level of LG Products

Q3) NAME ANY FIVE BRAND OF ELECTRONICS PRODUCTS AVAILABLE IN THE MARKET?

AWARENESS

90%

78%

83% 80%

79%

SAMSUNG ONIDA BPL WHIRLPOOL VIDEOCON

INTERPERTATION
There are a lot of MNC companies which provide the same product. So L.G. has to face tuff competition from these companies. The above diagram shows the awareness of various brands among the customers. Mostly people are aware of the VIDEOCON.

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Consumer Satisfaction level of LG Products

Q4) MENTION THE FEATURE YOU LIKE MOST IN THE L.G. PRODUCTS?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FEATURES DESIGN TECHNOLOGY DURABILITY QUALITY AVAILABILITY

INTERPERTATION
90% customers purchase L.G. product because of the design of the L.G. products. Availability of L.G. products is very high. It also affect the purchase decision of the customers.

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Consumer Satisfaction level of LG Products

Q5) IS THERE ANY FEATURE WHICH YOU DISLIKE IN YOUR BRAND?

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 RESPONSE YES NO

INTERPERTATION
73% people do not have any complaint about the feature of the L.G. products. They are satisfied with them. But 27% people dislike some feature in their brand.

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Consumer Satisfaction level of LG Products

Q6) WHICH FACTOR INFLUENCED YOUR BUYING DECISION OF THIS PARTICULAR BRAND?

FACTOTRS 87% 50% 67% 69% 80% 90% AVAILABILITY DURABILITY DESIGN FRIENDS QUALITY SHOPKEEPER ADVERTISEMENT

70%

INTERPERTATION
90% people buy L.G. product because of durability. Various other factors have the significant contribution in the sale of the L.G. products.

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Consumer Satisfaction level of LG Products

Q7) WILL YOU REPURCHASE THE L.G. PRODUCT?

11% 89% 0 0.2 0.4 0.6 0.8 1

NO

YES

RESPONSE

INTERPERTATION
89% people are ready to purchase the L.G. product again. It shows that L.G. products have a huge potential market in INDIA. These people are satisfied with the present performance of their brand thats why they want to repurchase the L.G. products.

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Consumer Satisfaction level of LG Products

Q8) DOES YOUR BRAND PROVIDE AFTER SALES SERVICES, IF YES, ARE YOU SATISFIED WITH THAT?

0%5%

95%

RESONSE YES NO CAN'T SAY

INTERPERTATION
95% people are satisfying with the after sale services of the L.G. products. 5% people did not give response.

Q9) DOES YOUR BRAND MEET YOUR EXPECTATION?

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Consumer Satisfaction level of LG Products

NO

81%

YES

19%

RESPONSE

INTERPERTATION
Mostly people said the brand meet their expectation. 19% people are not satisfied with the L.G. products.

Q10) WHAT IS MOST IMPORTANT CONSIDERATION WHEN YOU CHOOSE AN PRODUCT?

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Consumer Satisfaction level of LG Products

20% 70%

CONSIDERATIO N QUALITY PRICE BOTH

50%

INTERPERTATION
50% people are more concerned about the price of the products. 70% people are concerned about the quality. 20% people are those who are concerned with both price and quality.

Q11) DO YOU WANT ANY ADDITIONAL FEATURE TO BE ADDED IN YOUR L.G. PRODUCT

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Consumer Satisfaction level of LG Products

2%

RESPONSE YES NO

98%

INTERPERTATION
98% people do not want to add any additional feature in their products. Only 2% people are those who wants that there should be any additional feature.

Q12) WILL YOU REFER L.G. PRODUCT TO YOUR FRIENDS?

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Consumer Satisfaction level of LG Products

NO

2%

YES

98%

RESPONSE

INTERPERTATION
98% people are ready to refer L.G. products to their friends and relatives. This shows that mostly people spread positive word of mouth about the L.G. products.

Q13) WHEN YOU PURCHASE A PRODUCT HOW MUCH BRANDS ARE IMPORTANT TO YOU?

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Consumer Satisfaction level of LG Products

VERY IMPORTANT

62%

30%

IMPORTANT

8% 0% 20% 40% 60% 80%


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IRRELEVANT

INTERPERTATION
For 62% people brands are very important. This shows their loyalty towards a particular brand. For 30% people brands are important. These people can switch to other brands if they are not satisfied with their present brand.

Q14) GIVE RATING TO L.G

Consumer Satisfaction level of LG Products

60% 50% 40% 30% 20% 10% 0% A B C D Series1

INTERPERTATION
60% people gives A rating to L.G. on the basis of the overall performance of the L.G. product. 30% people give B rating to the L.G. products.

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

FINDINGS
Customer preferences are changing very rapidly. Consumer wants newer models with the latest features. On the basis of whole study, conclude the following findings: Customers prefer L.G.products and share of L.G. products in market are increasing day by day. People have become more brand conscious. If demand grows in the semi-urban and rural areas L.G. can increase its share in the market. Mostly people are satisfied with the after sale service provide by the L.G. company. 98% users of L.G. are ready to refer L.G. product to their relatives and friend. It means that people spread positive word of mouth about the company. 60% people give A grade to the L.G. on the basis of the overall performance.

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Consumer Satisfaction level of LG Products

CONCLUSION

This industry typically behaves like a fashion industry. The consumer taste changes rapidly. He/She wants newer models with the latest features. It is a very hard fight. The competition is on features differentiation, time to market, price, and promotion, basically on every front. The dealer-push and brand pull, both play a very crucial role. Hence, the company concentrating on both fronts equally will have an upper hand over the others. Companies like Whirlpool, LG and Samsung have practiced this very well and currently are the leading on the sales front. The past few years has seen a constant realignment of market shares in the industry. The question constantly ringing in our minds would be, "With the MNCs gradually eating away the share of the domestic companies, are we witnessing a shake out here?" The answer probably is, "Not yet!" In the low-price segment, brand strengths are less relevant as compared to mid priced segment.. Though companies like BPL, Videocon, and Mirc have shown lower sales, they continue to maintain decent operating margins. The manner, in which the Korean MNCs have established themselves in a very short time, is a clear indication that they are here to stay. Players like Sony and Philips are long term players while the financial performances of Sharp and Panasonic have been gradually improving. Thomson is doing well in the South.

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Consumer Satisfaction level of LG Products

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Consumer Satisfaction level of LG Products

BIBLIOGRAPHY BOOKS
Research methodology (C.R.KOTHARI) Marketing (PHILIP KOTLER)

Magazines
Business today Business world

INTERNET
www.google.com www.L.G.com www.onida.com www.vidocon.com

NEWSPAPERS
Economic Times Business standard

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Consumer Satisfaction level of LG Products

QUESTIONNAIRE
Name: Age : ------------------------------------Gender: ----------------------------Occupation :

Q.1) Ans. Q.2)

Do you have L.G. product (electronics)? . Are you first time user? Yes (2) No

Ans. (1) Q.3)

Name any 5 other L.G. brands available in the market. ------------------------------(2) (5) --------------------------------(3) --------------(4)

Ans. (1)

Q.4)

Mention any 5 features you like the most in your brand. --------------------------------------(2) (5) ----------------------------------(3) -----------------(4)

Ans. (1)

Q.6)

which factors influenced your buying decision of this particular brand? (2) Design (4) Shopkeeper (6) Friends (8) Advertisement (3) Availability (5) Quality (7) Resale value

Ans. (1) Price

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Consumer Satisfaction level of LG Products

(9) Other

Q7) Will you repurchase the L.G, product again? Ans. 1) Yes 2) No

Q.8) Does your brand provide after sale services, if yes, are you satisfied with that? Ans. Q.9) (1)Yes (2) No (3)Cant say

Does your brand meet your expectation? (2)No (3)Cant say

Ans. (1)Yes

Q10) what is most important consideration when you purchase a product? Ans. 1) Price 2) Quality 3) Both

Q.11) what additional features you want to be added in your L.G. product? Ans. Q.12) will you refer L.G. products to your friends? Ans. (1) Yes (2) No

Q13) when you purchase a product how many brands are important to you? Ans. 1) Irrelevant 2) Important 3) Very important

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Consumer Satisfaction level of LG Products

Q.14) Give rating to your preferred brand on the basis of following features. (1) (3) Ans (1) (3) Quality Price A C (2) (4) (2) (4) B D Durability After sale services

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