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PROJECT REPORT
ON
MARKET ANALYSIS OF LG CONSUMER DURABLES &
DEALER DEVELOPMENT
MARKETED BY:
XXXXXXXXX
ROLL NO.: 0000000
ENROLL NO.: 000000
BBS(HON)2010-2013
Under The Supervision of:
MR. XXXXXXXXXXX
Faculty Guide
Acknowledgement
It is indeed of great moment to pleasure to express
our senses of profound gratitude & indebtedness to
all the people who have been instrumental in
making it a rich experience. We found it to be a
challenging project that gave us a real practical
exposure to the corporate world and it is almost
impossible to do the same without the guidance of
peoples around us. It gives us immense pleasure to
acknowledge LG ELECTRONICS INDIA Ltd.
dealers, who have been nice enough to give us a
chance to do our project and providing us
wonderful support throughout our project.
Executive summary
Indian Consumer durables market used to be dominated
by few domestic players like Godrej Voltas Allwyn and
Kelvinator. But post liberalization many foreign
companies have entered into Indian market dethroning
the Indian players and dominating Indian market the
major categories being CTV, REFRIGRATOR, AIR
CONDTIONERS and WASHING MACHINES. India being the
second largest growing economy with huge consumer
class has resulted in consumer durables as the fastest
growing industries in India. LG, SAMSUNG the two Korean
companies have been maintaining the lead in the market
with LG being leader in almost all the categories. The
rural market is growing faster than the urban market,
although the penetration level is much lower .The CTV
segment is expected to the largest contributing segment
to the overall growth of the industry. The rising income
levels double-income families and consumer awareness
are the main growth drivers of the industries. Consumer
durables major LG Electronics India Pvt Ltd (LGEIL) will
invest nearly Rs 500 crore in India this year in research
and development, brand-building and other marketing
initiatives. The company, having a turnover of Rs 9,500
crore and market share of 26 percent, is investing Rs 360
crore on brand-building and other marketing initiatives
and around Rs 140 crore on research and development,
besides launching new platforms in information
technology and related areas, LGs innovative 211
campaign to provide quality after-sales service, will also
be expanded from the existing 22 to 40 cities by next
month, the campaign, for which IT infrastructure has
been set up, includes the companys response to
Scope of project
This project gives us great exposure to the consumer
durable market because it includes product knowledge
and field survey job in which we visited the LG stores in
Delhi. Incidentally Diwali time was nearing during our
survey period which exposed us to another aspect of
product promotion. LG always insist the 50% display
share of LG product because LG believes that JO
DIKHTA HAI WO BIKTA HAI.
INTRODUCTION
Before the liberalization of the Indian economy, only a
few companies like Kelvinator, Godrej, Alwyn, 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 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
Scope
1. In term of purchasing power parity (PPP), India is the
4th
largest economy in the world and overtake Japan in the
near
future become the 3rd largest.
2. Indian consumer durable market is expected to reach
$400
billion by on 2010
3. India has the youngest population amongst the major
countries. There are lot of people in the different
income
categories nearly the two third population is below the
age of
35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are
earning
us$4,400-US$21,800 a year. And there are 6 million
rich
household in India.
5. The upper-middle and high-income household in urban
areas
are expected to grew to 38.2 million in 2007 as against
14.6
million in 2000.
Opportunity
1. In India the penetration level of white goods is lower as
compared to other developing countries.
NATIONAL
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ONIDA
SAMSUNG
CROWN
HYUNDAI
SALORA
KOREA
VIDEOCON
BPL
TCL
SERIES
HAIER
WESTON
) CHINA
GODREJ
TVOLTAS
IFB
BELTAK
PHILIPS
OSKAR
PANASONIC
SHARP
HITACHI
SANSUI
AKAI )
AIWA
WHIRLPOOL
ELECTROLUX
HOLLAND
)
) JAPAN
History of company:
The company was originally established in 1958 as Gold
Star, producing radios, TVs, refrigerators, washing
machines, and air conditioners.
1980-88 :- INTERNATIONALIZATION
1989-94 INOVATION
1999-2003-DIGITAL MANAGEMENT
Global Operation:
LG Electronics is playing an active role in the world
market with its assertive global business policy. As a
result, LG Electronics controls 110 local subsidiaries in
the world with around 82,000 executive and employees.
LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Business areas and main products
Mobile communications
VISION
Global Top 3 by 2010
GROWTH STRATEGY
Fast innovation, Fast growth
CORE COMPETENCY
Product leadership, Market leadership, People
leadership
CORPORATE CULTURE
No excuse, we not I, Fun workplace
SLOGAN
THE SYMBOL
The symbol of LG is the face of future. The letter L and
G in a circle symbolizes world, future, youth, humanity
& technology. LG philosophy is based on humanity. It also
represents LGs efforts to keep close relationship with our
customers around the world.
The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique LG red
color.
Red color represents our friendliness and gives a strong
impression of LGs commitment to deliver the best.
The circle symbolizes The Globe. The stylized image of a
smiling face in the symbol conveys Friendliness and
Approachability.
The one eye on the symbol represents Goal-oriented,
Focused & Confident.
The slogan of LG is Lifes Good. It expresses Brands
Value , Promises, Benefits , Personality .
THE PARTNERSHIP
LG Electronics chooses to promote harmony and build
constructively on a labor-management relationship rather
than an employee-employer relationship. This illustrates
that management and workers are not in a vertical
relationship, but in a horizontal one.
This culture is necessary for LG Electronics as it strives to
become one of the world's top companies. Such a
relationship is transformed into a value-creation
relationship whereby both parties endeavor to address
mutual problems and
create new values together.
STRATEGIC ALLIANCE
LG Electronics is making technical advances and
identifying business opportunities through various
associative relationships with some of the world's
leading companies.
LG Electronics is striving to become number one in the
world by
mingling in various business and technological fields and
making strategic alliances with world famous companies.
"Strategic association between corporations," in which
And
the
number
follows
many
more..
In Feb. 2007 LG Electronics and Yahoo formed a strategic
alliance. Yahoo mobile services will be available from LG
mobile. This service is targeting 10 million LG mobile
phones in over 70 countries.
In Mar. 2007 LG Electronics and Google formed a
strategic alliance. Both companies will work together to
release, market, and offer LG mobile phones with Google
services (search engine, map, email, and blogs).
Value
Promise
Benefits
Personality
Mission
The mission of LG is to provide the customers with utmost
satisfaction through leadership. The fundamental policy
of development is to secure product leadership that the
Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the
product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
Quality Innovation
Code of conduct of LG
1. Responsibility and obligations to customers :
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
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-
India challenges
The challenges faced by LG when entered in Indian
market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (Samsung,
Panasonic
entered in 1995 in India).
3. High import duty
4. Compitition from local market players and other MNCs
in
consumer durable segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as
Innovative marketing strategy
1. Launch new technologies in consumer electronic and
home
appliances.
2. LG was the first brand to enter in cricket in big way a
way,
CTV
Health
has
Golden
eye
air
system
and
R&D potential
LG has the research and development facilities in
Bangalore and . Both the unit carry out R&D department
for the domestic as well as the parent company it also
dose customize R&D for the specific countries to which it
export product.
LG
LG
LG
LG
LG
LG
LG
position
position
position
position
position
position
position
of
of
of
of
of
of
of
LG PUNE
CUSTOMER SERVICE:
Research Methodology:
Research methodology is considered as the nerve of the
project. Without a proper well-organized research plan, it
is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan.
The main objective of survey was to collect appropriate
data, which work as a base for drawing conclusion and
getting result.
Therefore, research methodology is the way to
systematically solve the research problem. Research
methodology not only talks of the methods but also logic
behind the methods used in the context of a research
study and it explains why a particular method has been
used in the preference of the other methods
Research design
Research design is important primarily because of the
increased complexity in the market as well as marketing
approaches available to the researchers. In fact, it is the
key to the evolution of successful marketing strategies
and programmers. It is an important tool to study buyers
behavior, 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,
DEALER MANAGEMENT
Mapping of regional dealers.
They have been divided into three categories on the basis
of their turnover and the selling capacity.
-1
-2
-3
-1 Includes the modern trade and they have direct billing
from the branch office. They have high turnover and the
company depends heavily on them-2 includes the
distributors. They have direct billing from the branch
office. Their turnover is also high.
-3 Includes the sub dealers .They have direct billing from
distributors or from the branch office. Their turnover is
not so high, but there are few sub dealers whose
potential is quite high. According to sales the branch has
designated as gold and silver sub dealers.
OBJECTIVE OF THE STUDY
The objective was to find out the market share of LG
products, advantages and disadvantages of LG products
from dealers and to find out what problems they are
facing with the LG products so that problems can be
resolved to increase the sale.
Data collection methods:
After the research problem, we have to identify and
select which type of data is to research. At this stage; we
have to organize a field survey to collect the data.
One of the important tools for conducting market
research is the availability of necessary and useful data.
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
APPENDIX
A.S.I
A.S.M
B.S.I
CAC
C.S
D.S.C.
L.H.D
R.E.F