A

Project Study Report

On

CUSTOMER PERCEPTION AGAINST ELECTRONIC

MARKET

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

SESSION - 2008-2010
Submitted By: -

Submitted To:-

MUNESH KUMAR SHARMA

Vishnu Dutt

Part IInd year

(Project Guide )

TABLE OF CONTENTS

ACKNOWLEDGEMENT..3
PREFACE4
DECLARATION.5
EXECUTIVE SUMMARY6
COMPANY PROFILE7
SWOT ANALYSIS.43
MEANING OF PROJECT47
OBJECTIVE OF THE STUDY..49
CUSTOMERS PERCEPTION50
RESEARCH METHODOLOGY.63
SUGGESTIONS AND RECOMMENDATION67
LIMITATIONS68
APPENDIX..69
ANNEXURES QUESTIONNAIRE..71
BIBLIOGRAPHY...77
CONCLUSION78
2

ACKNOWLEDGEMENT

I wish to thank and express my gratitude to the management of LG

ELECTRONICS INDIA LTD. for giving me permission and offering training
facilities for my summer training & corporate exposure as an Integral part
of my MBA curriculum. It is a great experience and pleasure for me to
present this report on the practical training at LG products.

I sincere to acknowledge my indebtedness to Mr. SATAYA MOHENTY

marketing manager , for the generous and valuable guidance
provided him to complete my assigned project on customer perception
against electronic market.

I am also grateful to Mr. K .R. SINGH Branch manager and all members
of the marketing department who gave me constant guidance &
support to complete my assigned project.

I am also grateful to Mr. ROHAN LADDHA Area sales manager and all
members of the marketing department who gave me constant
guidance & support to complete my assigned project.
I also thankful to Mr. MANDAL DAMLE Logistic head for their help and
support.

Finally , I am also thankful to those respondents directly and indirectly

help me and who have spared their valuable time for me.

(MUNESH KUMAR SHARMA)

PREFACE

Marketing activities can be regarded as lifeblood of all business

concern. In order to enhance the performance of marketing department and
overall success of a business concern, study of consumer behavior and their
satisfaction, sales and distribution channels, advertisement and competitive
advantages. The performance of a company very much depends on
marketing department. These activities are very much important for an
organization
.
No study can be termed complete if there is no practical
experience. Hence need for training has become a real necessity. Practical
exposure no doubt has contributed a significant amount of knowledge to me
along with real life experience & was an ideal combination of academic
knowledge & practical experience.

LG Is infects a very ideal location to gain practical experience. The

experience gained in short duration, I am sure will go a long way in all my
future endeavors.

DECLARATION

I,

MUNESH KUMAR SHARMA

Student of M.B.A., Alwar Institute

of Engineering & Technology, MIA, Alwar (Rajasthan) hereby declare

that all the information facts and figures produced in this report is based on
my own experience and study during my open market research in analyzing
the CUSTOMER PERCEPTION AGAINST ELECTRONIC MARKET .

I further declare that all the information and facts furnished in this project
report are based on my intensive research findings. They are first hand and
original in nature.

MUNESH KUMAR SHARMA

Student of M.B.A.- 2 YEAR

EXECUTIVE SUMMARY

India being a second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in India LG.
SAMSUNG the two Korean companies has been maintaining the lead in
industries with LG being leader in almost all the categories.

The rural market is growing faster tan urban market, although the penetration
level is much lower. The CTV segmentation is expected to the largest
contributing segment to the overall growth the industries. The rising income
levels double-income families and consumer awareness are the main growth
drivers of the industries.

Consumer perception major LG ELECTRONICS INDIA PVT. LTD. (LGEIL) will

invest nearly Rs. 500 crore in India this year in research & development,
brand-building and other marketing initiatives.

The company, having a turnover of Rs. 9500 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.

INTRODUCTION

LG ELECTRONICS

Founded

January 5, 1947

Headquarters Address

LG Twin Towers, 20 Yoido-dong,

Youngdungpo-gu, Seoul, South Korea

CEO

Bon Moo Koo

Our Businesses (Number of Companies: 52)

LG Electronics
LG Display
LG Innotek
LG Micron
Hiplaza
Hi Logistics
System Air-Con Engineering
Siltron
Lusem
Chemicals
LG Chem
LG DOW Polycarbonate
SEETEC
LG Household & Health Care
CocaCola Beverage Company
LG Hausys

LG Life Sciences
LG MMA
Telecommunications and Services
LG TeleCom
CS Leader
AIN
LG Dacom
LG Powercom
DACOM Crossing
DACOM Multimedia Internet
CS ONE Partner
LG CNS
LG N-Sys
V-ENS
BIZTECH & EKTIMO
Ucess Partners
SERVEONE
LG International
TWIN WINE
Geovine
pixdix
Korea Commercial Vehicle
LG Solar Energy
G2R
HS Ad
Wisebell
TAMS Media
Alchemedia
W Brand Connection
Twenty Twenty
M. Hub
Pressline
G Outdoor
Bugs Com Ad
L. Best
LG Management Development Institute: Economic Research Institute
LG Management Development Institute: Academy
LG Sports

Total Sales

115 Trillion KRW (as of 2008)

Investment

11.3 Trillion KRW (as of 2008)

Overseas Subsidiaries

147

Number of Employees

Approximately 177,000

The LG Way includes LG's core beliefs, values, and aspirations. It illustrates a vision
that guides the thoughts and actions of LG employees in attaining the ultimate goal of
becoming a "No. 1 LG." The LG Way is reached through the practice of "Jeong-Do"
Management* and LG's management principles, "Creating value for customers" and
"Respecting human dignity."

HISTORY

10

LG Group founder In Hwoi,Koo set LG history in motion with the establishment of the
Lak Hui Chemical Industrial Corp. in 1947. During those formative years, the company
emphasized the principle of creating harmony among people. The employees believed
that mutual trust and responsibility were crucial to accomplishing business objectives.
In 1952, Lak Hui (currently LG Chem) became the first Korean company to enter the
plastics industry. As the company expanded its plastics business, it established Goldstar
Co., Ltd., (currently LG Electronics Inc.) in 1958. In 1959, Goldstar produced Korea's
first radio, opening a new era for the nation's electronics industry. In the early 1950s, LG
had already established the foundation for its two major sectors-the chemical and
electronics businesses-thereby leading the development of Korea's industries.

Lak Hui Chemical Industrial Corp.

established

11

Company produces Lak Hui cream (cosmetic)

Cosmetics lab founded

Lak Hui begins producing the first plastic daily

necessities in Korea

Lak Hui Industry (currently LG International Co.)

established

Lak Hui develops Lak Hui dental cream, the first

cream-type toothpaste in Korea

12

Lak Hui produces the first PVC pipe in Korea

Goldstar Co., Ltd., established

Goldstar produces the first radio in Korea

Electronics

13

LG Electronics
LG Display
LG Innotek
LG Micron
Hiplaza
Hi Logistics
System Air-Con Engineering
Siltron
Lusem

LG Chem
LG DOW Polycarbonate
SEETEC
LG Household & Health Care
CocaCola Beverage Company
LG Hausys
LG Life Sciences
LG MMA

Chemicals

Telecommunications and Services

LG TeleCom
CS Leader
AIN
LG Dacom
LG Powercom
DACOM Crossing
DACOM Multimedia Internet

14

CS ONE Partner
LG CNS
LG N-Sys
V-ENS
BIZTECH & EKTIMO
Ucess Partners
SERVEONE
LG International
TWIN WINE
Geovine
pixdix
Korea Commercial Vehicle
LG Solar Energy
G2R
HS Ad
Wisebell
TAMS Media
Alchemedia
W Brand Connection
Twenty Twenty
M. Hub
Pressline
G Outdoor
Bugs Com Ad
L. Best
LG ManagementDevelopment Institute: Economic Research
Institute
LG ManagementDevelopment Institute: Academy
LG Sports

15

The LG Welfare Foundation conducted social volunteer services in Vietnam, improving

school environments for physically disabled people and providing occupational
education for them. These community services provided in Vietnam, over the course of
three years, are aimed to enhance services for physically disabled children.
Also the key achievements of the LG Welfare Foundation include donation projects of
welfare centers, welfare programs for community teenagers, self-support education
programs for underprivileged children and youth, care programs for abandoned seniors,
rehabilitation
programs
for
people
with
disabilities.
LG Electronics helps to provide a better educational environment for underprivileged

16

children and young people. In China, LG Electronics is forging ahead with its "I love
China" campaign and has established the "LG Hope Primary School." Also in Mexico,
LG Electronics continues to sponsor the secondary education to underprivileged female
students, who show good academic potential.

With the CSR motto, "A love that makes dreams come true," LG Electronics conducts a
diverse range of programs around the world. The company offers free medical treatment
to many people, who are physically challenged or to children, inflicted with various
diseases. In Pakistan, Egypt, Morocco, and Kenya, provided funding for operations on
children
with
hereditary
cleft
lip
and
palate.
In addition, LG Electronics funded medical operations for visually-impaired children in
Pakistan, Egypt, and Kenya. LG Electronics and Vision Care Services (VCS) are
making free eye care services freely available by offering eye care camps where
members of the communities can receive comprehensive and quality eye care.

LG will continue to take our responsibilities toward society seriously, engaging in

extensive international education, community aid, arts and culture programs.

17

LG Corp. 48.6%

Subsidiaries 16
Sub-subsidiaries 30 (Global Affiliates excluded)
Listed 13
Electronics
LG Electronics

34.8%

LG Display

37.9%

LG Innotek

50.1%

LG Micron

52.0%

Hiplaza

100.0
%

Hi Logistics

100.0
%

System Air-Con Engineering

100.0
%

Siltron

51.0%

Lusem

64.8%

Chemicals
33.5
%

LG Chem
LG DOW Polycarbonate

50.0%

SEETEC

50.0%

LG Household & Health Care

34.0%

Coca-Cola Beverage Company

90.0%

LG Hausys

33.5%

LG Life Sciences

30.4%

18

Chemicals
LG MMA

50.0%

Telecommunications
& Services
LG TeleCom

37.4%

CS Leader

100.0%

AIN Teleservice

100.0%

LG Dacom

30.0%

LG Powercomm

45.4%

DACOM Crossing

51.0%

DACOM Multimedia Internet

88.1%

CS ONE Partner

100.0%

LG CNS

85.0%

LG N-Sys

100.0%

V-ENS

100.0%

BIZTECH & EKTIMO CO. LTD.

61.3%

Ucess Partners Co., Ltd.

100.0%

SERVEONE

100.0%

LG Solar Energy

100.0%

G2R

35.0%

HSAD

100.0%

Wisebell

100.0%

TAMS Media

100.0%

Alchemedia

51.0%

W Brand Connection

100.0%

Twenty Twenty

100.0%

19

Telecommunications
& Services

M. Hub

50.6%

Pressline

70.0%

G Outdoor

100.0%

Bugs Com Ad

70.0%

L. Best

100.0%

LG Management Development Institute:

Economic Research Institute

100.0%

LG Sports

100.0%

20

List of shares
owned by
LG Corp.

Subsidiaries

Number of
shares owned

Total
number of
Owne
shares
issued

Business
LG Electronics
Electronics

Chemicals

Siltron

3,418,141

6,702,335

Lusem

1,400,000

2,160,000

LG Chem

22,219,326

66,271,100

LG Household &
Health Care

5,315,500

15,618,197

LG Hausys

3,006,674

8,967,670

LG Life Sciences

5,044,114

16,576,990

LG MMA

1,200,000

2,400,000

LG TeleCom

Telecommunication
s
& Services

50,341,430 144,647,814

103,614,396 277,278,430

LG Dacom

25,018,906

83,287,151

LG CNS

74,076,292

87,175,865

SERVEONE

5,000,000

5,000,000

928,000

928,000

G2R

5,798,593

16,567,409

LG Management
Development Institute:
Economic Research
Institute

1,200,000

1,200,000

600,000

600,000

LG Solar Energy

LG Sports

21

Canada
* note : Companies are listed in alphabetical order
LG Electronics
URL
http://ca.lge.com/

Sales
Subsidiary

LGECI (LG Electronics Canada, Inc.)

Address

550 Matheson Blvd. East Mississauga

Ontario L4Z 4G3

LG Electronics
LG Display
LG Innotek
LG Micron
Hiplaza
Hi Logistics
Siltron
Lusem

22

LG Electronics
* note : Companies are listed in alphabetical order
Argentina
URL

http://ar.lge.com

Sales
Subsidiary

LGEAR(LG Electronics Argentina S.A.)

Address

Av. Del Libertador 498 Piso 22 (C1001ABR)

Bs. As. Argentina

Australia
URL

http://au.lge.com/

Sales
Subsidiary

LGEAP(LG Electronics Australia Pty, Ltd.)

Address

2 Wonderland Drive Eastem Creek NSW

2766 Australia

Austria
URL

http://at.lge.com/

Sales
Subsidiary

LGEAG (LG Electronics Austria GmbH)

Address

Office Campus Gasometer Guglgasse

15/4A(5F~6F), A-1110, Vienna

Brazil
URL

http://br.lge.com/

Sales
Subsidiary

LGEAZ (LG Electronics da Amazonia Ltda.)

Address

Rua. Javari,No 615-Dist. Industrial CEP

69075-110- Manaus AM

Canada
URL

http://ca.lge.com/

Sales
Subsidiary

LGECI (LG Electronics Canada, Inc.)

Address

550 Matheson Blvd. East Mississauga

23

Ontario L4Z 4G3

China
URL

http://cn.lge.com/

Sales
Subsidiary

LGEHZ (LG Electronics Huizhou Ltd.)

Address

District 19, Zhongkai Hi-Tech Industry

Development Zone, Hiuzhou, Guangdong,
China

China
Sales
Subsidiary

LG Electronics Inc.Shanghai IPO

Room 806.zhao feng Building, Shanghai
Multimedia park, 1027,ChangNing
Road,Shanghai,China

Address

France
URL

http://fr.lge.com/

Sales
Subsidiary

LGEMF(LG Electronics Mobilecomm France)

Address

Paris Nord II-117, Avenue des Nations - B.P.

59372 Villepinte 95942 Roissy CDG CEDEX

Germany
URL

http://de.lge.com/

Sales
Subsidiary

LGEDG (LG Electronics Deutschland

GmbH)

Address

Jakob Kaiser Str 12, 47877 Willich,

Germany

India
URL

Related URL

Sales
Subsidiary

LG Electronics New Delhi Liasion Office

(Mobile)

Address

3037, A-Wing, 3rd Floor, Oberoi Garden Estate,

Chandivali Farm Road,Andheri(E), Mumbai -

24

400072, INDIA,

India
URL

Related URL

Sales
Subsidiary

LG Electronics New Delhi Liasion Office

Address

A-41, Mohan Co-operative Industrail Estate

Mathura Road,New Delhi 110 044

India
URL

http://www.lgindia.com/

Sales
Subsidiary

LGEIL (LG Electronics India Pvt. Ltd.)

Address

Plot No. 51, Udyog Vihar, Surajpur-Kasna

Road, Greater Noida - 201 306(U.P.)

India
URL

http://www.lgindia.com/

Sales
Subsidiary

LGSI(LG Soft India Private Limited)

Address

Cherry Hills, Embassy Golf Links Business Park,

Off Intermediate Ring Road, Bangalore, 560
071, India

Indonesia
URL

http://id.lge.com/

Sales
Subsidiary

LGEIN (P.T. LG Electronics Indonesia)

Address

Wisma 77 Jl. S. Parman Kav. 77, 15Fl, Slipi

Jakarta 11410 Indonesia

Italy
Sales
Subsidiary

LGEIS (LG Electronics Italia S.p.A.)

Address

Via Dell Unione Europea, 6 20097 San Donato

Milanese (MI) Italia

Japan
Sales

LG Electronics Japan Inc. (Tokyo Office)

25

Subsidiary
Address

5F.KAI BLDG. 3-9-5, IWAMOTO-CHO,

CHIYODA-KU, TOKYO 101-0032 JAPAN

Malaysia
URL

http://my.lge.com/

Sales
Subsidiary

LGEML(LG Electronics Malaysia SDN.BHD)

Address

Level 1&2, Kelana Brem Tower 2, Jalan

Stadium(SS 7/15) 47301 Kelana Jaya Selangor
Darul Ehsan, Malasia

Netherlands
URL

http://nl.lge.com/

Sales
Subsidiary

LGELS(LG Electronics European Logistics &

Services B.V)

Address

Veluwezoom 15 1327AE Almere, Netherlands

Pakistan
Sales
Subsidiary

LG Electronics Karachi Office

Technology Park, 4th Floor, Tower-A,
Shahrah-e-Faisal, Karachi.

Address

Philippines
URL

http://ph.lge.com/

Sales
Subsidiary

LGEPH (LG Electronics Philipines Inc.)

Address

15 Francisco Legaspi Street Maybunga, Pasig

City Philippines

Russia
URL

http://ru.lge.com/

26

Sales
Subsidiary

LGERI (LG Alina Electronics)

Address

Beregovoy pr-d, 4/6, bld.2, 121087, Moscow,

Russia

Saudi Arabia
URL
Sales
Subsidiary

LGESR (LG-Shaker Company Ltd.)

Address

P.O. Box 911 Riyadh 11383 Kingdom of

Saudi Arabia

Singapore
Sales
Subsidiary
Address

http://sa.lge.com

LG Electronics Inc. SINGAPORE IPO

(International Procurement Office)
8 TEMASEK BOULEVARD, #26-02 SUNTEC
TOWER 3, SINGAPORE 038988

Singapore
URL

http://sg.lge.com/

Sales
Subsidiary

LGESL(LG Electronics Singapore PTE LTD)

Address

8 Temasek Boulevard, #27-2 Suntec Tower 3

Singapore 038988

South Africa
URL

http://za.lge.com/

Sales
Subsidiary

LGESA (LG Electronics S.A. (Pty) Ltd.)

Address

181 Barbara Road, Elandsfontein,

Johannesburg P.O. Box 473, Isando 1600

Spain
URL

http://es.lge.com/

Sales
Subsidiary

LGEES (LG Electronics Espana S.A)

Address

Europa Empresarial - Edificio Madrid Ctra. N.VI,

Km. 24 -28230 Las Rozas - MADRID.

27

Sweden
URL
Sales
Subsidiary

LGESW (LG Electronics Nordic AB)

Address

Esbogatan 18 Akalla P.O.Box 83 SE-164 94

KISTA, Sweden

Taiwan
URL

LGETT (LG Electronics Taiwan Taipei Co.,Ltd.)

Address

7F, No.47,Lane3, Jihu Road, NeiHu

District,Taipei city,Taiwan, R.O.C.

Thailand
Sales
Subsidiary

Turkey
Sales
Subsidiary
Address

http://tw.lge.com/

Sales
Subsidiary

Address

http://nordic.lge.com/

LGETH (LG Electronics (Thailand) Co., Ltd.)

75/81 Richmond Bldg. 22nd Fl. Sukhumvit 26,
Klongton, Klongtoey, Bangkok 10110

LGETK (LG Electronics Ticaret A.S.)

Kaptanpaa mah., Piyalepaa bulvar? No:14,
Okmeydan?, L / STANBUL, TUKEY

Turkey
URL

http://tr.lge.com/

Sales
Subsidiary

LGEAT (Arcelik-LG Klima Sanayi ve Ticaret

A.S)

Address

Organize Sanayi Ihsan Dede Cad. 41400

Gebze / Kocaeli, Turkey

U.S.A
Sales
Subsidiary
Address

ZENITH (Zenith Electronics Corporation)

2000 Millbrook Drive, Lincolnshire, IL 60069
USA

28

U.S.A
URL

http://us.lge.com/

Sales
Subsidiary

LGEMU (LG Electronics Mobilecomm U.S.A

Inc.)

Address

10101 Old Grove Rd. San Diego, CA 92131

U.S.A
Sales
Subsidiary
Address

10225 Willow Creek Road, San Diego CA

92131

UAE
Sales Subsidiary LG Electronics Middle East Co., Ltd.
Address

LGEMR (LG Electronics Mobile Research.

U.S.A., L.L.C)

P.O.Box 16782, Jebel Ali, Dubai, U.A.E

Ukraine
URL

http://ua.lge.com/

Sales
Subsidiary

LGEUR (LG Electronics Ukraine Inc.)

Address

2A Geroev Dnepra Str., 2nd Floor 04214,

Kiev, Ukraine

Vietnam
Sales
Subsidiary
Address

LGEVN (LG Electronics Vietnam co.,Ltd.)

14th Floor,Hanoi Central Office Bldg. 44B Ly
Thuong Kiet, Hanoi

29

Products
TV

TV
Plasma TV

LCD TV

Flat TV

Projector

Audio

Video

Security

Home Appliances

Computer Products

Mobile Phone

Commercial Products

Home Network

Components

Flagship Products

30

PG70 series
The FULL HD - TAKE IT TO THE EDGE (...

PG30 series
The PG30 series complements v...

LG80 series
LG80 is part of LGs continui...

Why choose a Plasma TV?

The Super Bright Panel realizes top class contrast ratio of 30,000:1 and provides
clarity and brightness.
Read More

31

Smart Shopper TV Buying Guide

To help you better choose, we've put some additional information on TV. Visit the site
Global Leading Products

You will find images of our digital display products here, including PDP and LCD TVs and
monitors.
Read More

LG in the News

LG Aims for Display Sales of USD 20 Billion in 2010

LG to Showcase Smart Living at IFA 2008

32

Audio

TV
Audio

Home Theater

Home Audio

In Car

Portable

Video

Security

Home Appliances

Computer Products

Mobile Phone

Commercial Products

Home Network

Components

Flagship Products

LAC7800R
Revitalize your in-car experience w...

33

HB954PBW
Champagne glass design and state-of...

MF-FM37
Winner of EISA Award 2007 &...

Car Sound System

LGs Innovative New Personal Navigation Device to Improve Your Driving

Experience.

Stylish DVD micro audio

34

Transform your family romm into not a just stylish space but an inspiration place to
be with the sensational eclipse lighting.

Audio & Video Photo Library

View photos of mp3 players, DVD recorders, and personal navigation

systems, etc.

35

LG in the News

LG Aims for Display Sales of USD 20 Billion in 2010

LG to Showcase Smart Living at IFA 2008

For Your Information

Find more information about

your product.

Product manual
Register your product

Where to buy

Video

TV
Audio

Video

High Definition Disc Player

DVD Player

DVD Recorder

Portable Device

Digital Set Top Box

Video Recording Media

Security

Home Appliances

36

Computer Products

Mobile Phone

Commercial Products

Home Network

Components

Flagship Products

RH299H

Super Multi-DVD Recorder with 400GB...

RHT299H

DVB-T Super Multi-DV...

37

Mobile Phone

TV
Audio

Video

Security

Home Appliances

Computer Products

Mobile Phone

CDMA Mobile Phone

GSM Mobile Phone

WLL

Commercial Products

Home Network

Components

CU920

With the sleek and stunning Vu&trad...

38

enV2(VX9100)

Get ready to join the next generati...

KP500

This attractively-priced full touch...

The 3rd Black Label Series, Secret

Elegant design and cutting edge technology merge seamlessly in Secret, the 3rd Black Label
Series. Read More
Mobile Phone Voluntary Take-Back

You can find details of your nearest mobile phone collection point. Read More
Eco-friendly mobile phone

39

Computer Products

TV
Audio

Video

Security

Home Appliances

Computer Products

Notebook

Monitor

Optical Storage

Consumable & Data Recording Media

Mobile Phone

Commercial Products

Home Network

Components

Flagship Products
R710

- Intel Centrino 2 Proces...

40

W2452V

Fun at Your Fingertips

P310

- Intel Centrino 2 Proces...

User Guide for Monitor

FLATRON f Engine, DFC 5000:1, forteManager. Read More

LG Super multi blue

The Super Multi Blue is 100% compatible. It plays Blue-ray, HD DVD. Visit the site

Eco Products - Notebook Computers

LG market share of consumer appliances and consumer

electronic
LG position of CTV in various states in India:
90.00

41

%
80.00
%
70.00
%
60.00
%
50.00
%
40.00
%
30.00
%
20.00
%
10.00
%
0.00%
DELHI

GUJRA
T

URRIS
A

RAJASTH
AN

W.BENG
AL

MAHARASHT
RA

LG

SAMSUNG

LG position of AC in various states in India :

70.00%
60.00%
50.00%

42

40.00%
30.00%
20.00%
10.00%
0.00%
DELHI

GUJRAT

URRISA

RAJASTH
N

KOLKATA

MUMBAI

LG

SAMSUNG

VOLTAS

GODREJ

SWOT ANALYSIS
A).STRENGTHS:
Human Resources
It is the quality of the employees that make the human resources
a strong point of the LG group. Their expertise extends to areas

43

such as the design and development of Television, commercial

product, electronic instrumentation as well as prototype
manufacturing and testing.

Manufacturing

&

Design

Capabilities

The excellent manufacturing and design

capabilities of the group comes as a result of
the Engineering Services Center of Excellence
which has been set up as part of LG's major
initiative to focus on product development and
engineering. This Center functions as an
autonomous unit catering to high-end CAD/
CAM/ CAE requirements of all LG businesses.
The COE also provides consulting services to
non-LG domestic and international clients.
The center is equipped with state of the art technology for 3-D modelling using
top down design approach, mock up and visualization, finite element modeling
and analysis in the area of static, dynamic, vibration and fatigue life estimation of
product and its aggregates. The softwares include latest versions of ProENGINEER, Pro/MECHANICA, MSC/PATRAN,ANSYS, ADAMS and FEMFAT operating
in a modern client server environment with dedicated high-end workstations on
individual desktops. The hardware environment consists of UNIX and NT machines
on a high-speed 100 Mbps switch network.
The COE is equipped to take on challenging consulting projects in the areas of
CAD / CAE. High-end CAE capabilities include medium to large scale finite element
analysis (above 200,000 degrees of freedom) for single component as well as
multi-component assemblies involving non-linear contact simulations, structural
analysis, thermal analysis, modal analysis, value engineering, size and shape
optimization, kinematics and dynamics analysis for motion simulation and fatigue
life estimation.
SAP
LG implemented SAP, a world-class Supply Chain Solution, in 1998, in most of its
business units and divisions. SAP serves as an information backbone for all business
processes, transactions and data requirements in the group. End users and
decision-makers in the organization from all over the country log on to the servers,
which are centrally located at Delhi and carry out various transactions. Effective
usage is taking deeper roots. Experienced key users and Client Support Managers

44

hand-hold the users in respective locations for routine support. SAP Solutions Group
(SSG), consisting of Process, Programming and System administrators, based out
of Corporate IT Centre, serves the group in the areas of problem shooting, process
modifications and fine tuning for higher effectiveness, and implementing newer
business functionalities and modules for better management. Solutions to issues
are provided within the agreed Service Level Agreements with the internal
customers. Large-scale training is also one of the focus areas aiming considerable
skill-spread. This outfit is also the India's first (sixth in Asia Pacific) SAP certified
Customer Competence Centre.
Wide Service Network
LG's ever-increasing dealer base enables the company to reach out to the
customers based in the remote corners of the country. Today LG enjoys a
widespread and impressive dealer network throughout the length and breadth of
the country brought by its almost 800 strong dealer force. This network is spread
across our product range and gives LG a strong presence on the national front.
Besides the widespread dealer network for the products, LG also has set up a large
network of service stations, spare part dealers and company trained mechanics.
Regular training is imparted to these large numbers of mechanics at various
locations throughout the country in order to ensure assistance to our customers at
the nearest point possible. The quality of the product combined with such strong
after sales service gives our customer the reinforced faith in the LG product.

B). WEAKNESSES:

Less advertising as compared to Other

Organizations.

Fewer locations as compared with Other

Organizations.
45

C). OPPORTUNITIES:

In India the penetration level of white goods is lower

as compared to other developing countries.
Unexploited rural market.
Rapid urbanization.
Increase in income level. i.e. increase in purchasing
power of customers.
Easy availability of finance.
LG can offer a complete Relationship.
Advantage of Large Network over other electronic
Companies.
Opportunity to pitch in for National and
International Convenience.

D). THREATS:

Higher import duties on raw material.

46

 Cheap imports from Singapore , China and from

other Asian
countries.

Aware about the close competitors.

Make sure about the financers.

PROJECT PROFILE
MEANING OF PROJECT

47

The meaning of the project is to give physical existence to the brain ideas
and thoughts. Project is a great source to develop technical skills in the
students. During the programming of the project, students go through
different problems and experiences. A student gets a chance to climb
on the roof of practical, step by step through ladder of theory. Thus, he
gets adequate practical knowledge of economizing. A very important
aim of a project is that it should be as feasible and economies as
possible.
Actually the word project consists of seven alphabets, each of them
has separate meaning.

P FOR PLANNING
Planning is must to start a work or scheme. If planning is good and
impressive, half work is done.

R FOR RELIABLE SOURCES

Practical and theoretical material, an inspiring guidance and assistance is
achieved from different sources to promote the functions of planned area.

O FOR OVERALL EXPENSES

Overall expenses to provide final design to any project are also considerable.
These expenses are analyzed for each concept and methods of working on
the computer.

J FOR JOINT EFFORT

Joint efforts are very necessary for programming and results of any project.
Many a times battles are won by help from others.

48

E FOR ECONOMIC FEASIBILITY

It is important that the planned scheme is economically feasible. It is a must
to analyze & estimate too for completion of the project.

C FOR CONSTRUCTION
After analyzing the program, complete project report is done to give logical
existence of planned scheme.

T FOR TESTING
Testing of program is done before submitting the project. After testing it is
judged whether the project is OK for use or not.

OBJECTIVE OF PROJECT

To serve the national interest in the electronic product and

related sectors in accordance and consistent with government
polices.

49

To earn a reasonable rate of interest on investment.

To maximize utilization of the existing facilities in order to

improve efficiency and increase productivity.

To work towards the achievement of self-sufficiency in the

field.

To achieve higher growth through integration increase merger

and acquisition by diversification new business opportunities.

A Customer's Perception of Relationship between Buyer

& Seller against electronic market.
It is impossible to set up any yardstick for relationship between a buyer and a seller. No two
organizations can have similar set of rules for maintaining relationship. Even if on a particular
occasion a situation prompted a particular behavior, it is not necessary that a similar behavior is
necessary on another occasion. The time, place and group of person might be the same but
behave in different way, though circumstances and situations might be identical.
To a great extent relationship depends upon the: character of contracting parties. This is thus a

50

study of human behavior and forms part of the behavioural science. Here the contracting parties
do not mean only those who are in direct contact but also include those who might be present
around. No person is acting in isolation. Therefore, there is always an influence of surroundings
on human behaviour.
A buyer is also a seller. A seller is also a buyer. Both could also be customers. To make the point
clear let us take the example of a trader who buys goods for resale or a buyer who buys goods
and then sells it after value addition. Therefore , you can not show same behaviour when you are
in the role of a buyer as then your priorities are different then when you are in the role of a seller.
Let us for some time consider our own behaviour in our own house with our family members.
Are we at all times act in similar manner in a given set of situation? Perhaps not! What are the
factors that motivate our behaviour?
It is my sincere opinion that our senses, mental state of mind and our capacity of physical
endurance to react to given situation play an important role in our behaviour as seller, buyer or
customer. At no two given time perhaps we are in alike condition. Our behaviour will therefore,
show different relationships. The relationship is product of our own emotions. We may be have
more or less in similar given condition if we can control our emotions. This is very difficult if
perhaps not impossible.
Looking purely from the viewpoint of a customer the relationship could be short time or long
time. It is Primarily dependent on the objective of the customer and the supplier or vendor.. A
customer will always wish for a long term relationship with the vendor. The vendor on the other
hand has his own values and objectives. The whole talk about customer satisfaction or customer
delight turn meaningless when all over the place we see customers not satisfied with the service
level provided by the vendors. Whether it is sellers market or buyers market in India generally
the customer is taken for granted and his endurance is tested to breaking limit. We have live
examples of customer taken for a ride all around us. The voter is customer to the Government
elected by him. In return he is entitled for certain basic fulfillments of promises by the elected
members of the Government. This is the guarantee clause attached to the democratic system. But
where are we in customer satisfaction. What about a builder who has taken advance from persons
who booked the flats and then fails to provide the flats by scheduled dates? Or if he has provided
the flat then the work is not done as promised.
We talk of customer focused management. Who is the customer we are talking about? It is the
ultimate user of goods and services? It is an intermediate customer like trader or value adder? Or
it is the internal as also external customer? Perhaps we are referring to the ultimate customer.
Who so ever it may be, there is a foundation laid to build up or develop relationship on business
objectives. The business objectives are based on the return on the investment. Speaking as a
matter of fact no businessman will extend any facility without charging the price to remain
remunerative on the investment made. The talk about the customer focus is a mere slogan and a
jargon used by management pundits. To explain the point precisely let us see some of the
motives kept in mind to set objectives for customer satisfaction.
1. Personal Gains : 0ne of the parties for its hidden desire of some personal gain develops

51

relationship by showing friendship, nearness and some advantage. The personal gain is so intense
that the party pretend to be a well wisher of the other. In more than 60% cases innocent people
fall prey to the cunnings of one party and repent later. There are several cases in Indian industry
where for personal gains deals have been finalized both in public and private sectors. Some have
been termed as scams other as scandals. This does nor require any further explanation.
2. Mutual Gains : The two parties In this situation joint together for mutual gain irrespective of
the fact that by their personal gains the organization they serve and the ultimate customer is
going to suffer. This involves a give and take policy. One is giving advantage to the other for
mutual gains at the cost of their organizational interest. Both are cheats and form an unholy
alliance. The organization should see through their game plan and take corrective action in time
lest loose the ultimate customers. Unfortunately such mutual gain programmes are on rise in
present day economic scene. Many a time dealership is awarded on consideration of mutual
gains. This is very common in large variety of consumer durable, projects floated for investments
in mutual funds, plantation programme etc. Where every day we read in newspapers that
customers are left with hardly any avenue for relief. The principal party and agents just disappear
in thin air. Very little legal remedy is available against such unholy alliances. Many eminent
personalities have formed such unholy alliances for mutual gains to attract simple customers.
3. Social Gains: Alliance formed for social gains are those where society at large is the gainer.
Nationalization of banks, petroleum companies, coal-mining industry are few examples of
alliances formed for social gain. The objective was to ensure proper and planned growth of core,
sector and save the customers and public at large from exploitation. The story is however,
different as desired objectives could not be reached due to formation of alliances in Government
and within organizations based on personal or mutual gains. Nowhere the focus is on customer.
Many of us have experienced rude and unbearable treatment at nationalized banks while drawing
our own money. We are drawing our money and not begging. I have seen a senior citizen at the
bank counter virtually begging for hours to get his pension cheque encashed. It is an ordeal to get
the bank draft made at the banks. However, this are easy if one enters into unholy alliance for
mutual and personal gains.
4. Organizational Gains : This is the area where we should have main thrust for long-term benefit
to customers. Customer focused management should be the only objective of every organisation.
It is at this place that buyer, seller and customer should form a strategic alliance without taking
advantage of one or the other. If they join hand and work for all round gain then the result would
be great. The theory of organizational gain in many western nations, Japan and some other
southeastern countries have already been recognized. These countries have long back focused
their business on customer satisfaction and customer delight. Unfortunately, in India even
alliance made with industrial giants and premier brand names of these countries could not show
the same results. The only reason that come to my mind is that we as Indian do not have a sincere
desire or managerial attitude towards customer focused business or trade. The Indian
entrepreneurs perhaps still not aware of market volatility and the foreign partners have studied
the Indian business mentality. Unfortunately, the economic planners and their mentor have not
seen the plight of ultimate customer both in the industrial or domestic consumables. There
remains a gap in programmes and implementation. This is again due to the relationship
developed for personal or mutual gains. It is for this reason that Indian economy is not able to

52

reach to a level where it should be after 51 years of independence and our rich heritage. None of
our programmes and policies are really customer oriented. It is therefore, right time that
management at least in Indian industry try and focus attention on the customers.
5. One Time Gains : There are situations where a relationship is made for one time gain. Both the
parties join together, fulfil the task expected from each and then depart with no obligation what
so ever on either side. All onetime contracts are example of such one time gain. Once the deal is
concluded the relationship is severed. But do we have such one time gain contracts?
6. Permanent Gains : Such alliances are made in business world for long time gain to both the
sides i.e., the buyer and seller. This is more or less lifetime alliance and therefore, permanent in
nature. The buyer or customer gets goods or services from a supplier for a life time use. The
seller on the other hand buildup a life time goodwill. This is based on zero defect principle. The
seller ensures that after sales service is provided to the customer for the life time utility of the
product, goods and services. The customer receives maximum return on his investment. A
satisfied customer is perhaps the best and least costly advertiser. A dissatisfied customer is
perhaps the worst enemy moving loose in the cruel world of business. Recommendation of a
delightful customer is having stronger unpack on prospective customers than any amount of
multimedia advertisements. A goodwill build upon satisfied customers will be more potent for
growth in sales than any sales promotion gimmicks adopted by any smart salesman. Several
examples of customers delight are available for goods and services. A customer makes sacrifice
and in return he expect that he is relieved of after purchase headaches and botherations. For the
sacrifices made the customer expects sound sleep in the night.
7. Promotional Gains : Such alliances are formed at the time of launching of a new products and
or a company. Glorious future is projected to lure the prospective customers. Alliance is made
between the launcher and brokerage agency or advertising agency. Both the partners to the
alliance are gainers. The customer may or may not be the gainer.
It is therefore, clear that objectively all relationships first of all have vested interest. When we
talk about the customer-focused management we implied to certain predetermined objectives as
narrated above. Organizational culture, the work environment and the perception of seller about
customer focus play a very important role in setting up the objective for customer satisfaction. In
the business world the relationship are not platonically constructed. There has to be some
motive! Holy or unholy.
The management pundits in recent past in India have been quoting and advocating for Japanese
style of buyer and seller relationship. It is long lasting and rests on very well established sense of
trust. Above all both parties have real price in such long-term relationship. Customer delight is
there fore possible. Japan can boast about the national culture and all citizens have great
patriotism. This is reflected in there business dealings. It is for this reason the war shattered
country rose to a dominating economic and trading force in about thirty years. Japan can today
proudly say that it has best of alliances world over. Other nationals look forward to enter in to
business collaborations with Japan. India is also one such nation! Over and above personal or
mutual gains a Japanese concern would also see the national and social gains. This is customerfocused management. Can we in India have same perception and fix up out strategies for

53

customer satisfaction and elight? Unfortunately in India Japanese collaboration could not get
same amount of success due to attitude and outlook of their Indian Counterpart.
Opening of economy and liberalization in trade in the country brought a sea of change in
customers perception of buyer and seller relationship. The customer today is not only very
demanding but also likes to know the relationship between the supplier of goods and services
and its relationship with the manufacturer or principal and its antecedents. It is on this
relationship depends the guarantee and warranty terms to which the customer is entitled. A
customer expects trouble free service during the guarantee period. Thereafter it is expected that a
product will last to its full productive life with minimum down time and the vendor will provide
the required support service to ensure that customer is not put to trouble.
What is the scene today? There has been a wide gap between the preaching and practice. Very
few organizations in the country with certainty can say that their main concern is the customer,
By and large even today customers are taken for granted. The objective today also is same what
it was yesterday! Just pass on the goods. Get the payment and forget the customer. It is indeed
surprising to see the cases pending before the consumer courts. Some of the TV channels have
also started programmes to help customers and provide some assistance in solving customerrelated problems. To narrate some examples of famous brand names and their customer oriented
programmes I first refer to a customers letter in a newspaper where after making advance
payment a company could not supply a well advertised cooking range for weeks. It is only after
prolonged correspondence and follow up the money was returned to the prospective customer
without any interest. A friend has some time back purchased a Samsung TV set from an
authorized dealer. The TV set developed some problem and it stopped showing picture. Inspite of
regular complaints the TV set is still not rectified as the dealer feel that guarantee period is over
and dealers responsibility is over. Beside, the service engineer i& over worked attending long
list of complaints. The famous AIWA brand of music system came out with sales promotional
scheme on its music system with supply of fifty CDs free of cost. Many of the customers are still
to get all the CDs. A local dealer of computer came out with a sale promotional scheme of cash
discount if an Ink Jet printer and a scanner is taken as a package. I become a victim myself when
the scanner was collected back by the dealer for repairs after three days of delivery and only after
scanning four or five pictures. It is now more than three weeks that a brand new scanner highly
recommended by the dealer is not returned after repairs. Most-depressing part is that neither the
dealer nor the service center at Delhi could provide positive reply except that they want me to
bear some more time with them These are few examples of customer oriented, customer focused
management by International Brands. What return is there on the investment made by the
customer? The vendor is concerned with getting his money and goes for all sorts of savings by
remaining understaffed and under prepared for immediately and promptly attending to the
complaints.
The situation in large number of big and small public and private sectors is still worse as far as
purely Indian market is concerned. What we are now witnessing is an era of takeovers, mergers
and business adjustments. Survivals first than the customer is buzz word. In such a situation the
customer is out of focus. Commitment is lacking and generally there is an air of doubt and
mistrust. Delayed deliveries, cost-over run projects, untimely payments frequent rejections are
the consequences. MNCs entry in the local market has created an atmosphere of uncertainty. Top

54

it all the Swadeshi slogan led to a situation of panic and every surviving industry small or big
want to make a quick-buck and run away leaving the customer marooned. Be it power supply,
railway amenities, air services or public distribution system, what is customer level of
satisfaction compared to the price paid? How the international customer rates us in global scene?
We have to admire the patience of Indian customer that against all the adverse conditions he is
surving. The deaf ear given by the seller is not motivating the buyer but some how he is
compelled to tag along with the market conditions hoping to get better days. We leave lot of
things to luck and destiny while making financial investments. If it works we are lucky. It is
destiny if things do not work. If issue relating to complaint are followed up the customer is a
naggingone.
For adopting Japanese management or for customer oriented management we should first have
the willingness and a determination much above the petty personal gains. It needs an attitudinal
change. Looking towards present socioeconomic and political conditions such change is not
foreseen in immediate future. Market forces will have to play the game with only customer in
mind if India has to make global presence. There is little time in hand as we are having
challenges from all sides. Small nations like Korea, Taiwan, Singapore etc. have already
surpassed us. These nations are working on a vision and resultant plans. It is the right time for
market players to pamper the customer. As the saying goes, the four deadly sins of corporate
management-complacency, blindness, megalomania, and greed. The Chinese know the rule but
Japanese observed it that business go where it is invited and stays where it is well treated.
Customer is the Boss. The price is what customer pays for goods; the goodwill is what vendor
receives from the customer for the value he receives from the goods. It is the value part of the
goods that is very important. That is why it is said that customer is the profit everything else is
overhead!.
1. A sign of modernization for enterprises is to create overall
values for customers.
A strong wave of globalization has been influencing and changing the
lives and thinking modes of all industries and consumers throughout
the world. As for enterprises in the manufacturing and service industry,
the changes of such environment have more or less affected their
value chains, cultures, marketing objectives and operation
methodologies. One of the remarkable influences is on how to serve
our customer.
Let's first take a look at the evolution of an enterprise's strategy in
serving customers.
A typical enterprise during its initial developing stages pushes the new
product to consumers right after finding the demands, and provides
related after-sales service in order to get profits. In such a way, it finds
the new demand, and pushes new product into market repeatedly.
As the enterprise grows, under the great pressure of competition from

55

globalization, it gets more and more mature and considers actively or

passively how to provide comprehensive and reliable solutions and
services, and how to set up a win-win cooperation with customers in
order to keep a competitive advantage of long-term and sustainable
partnership.
Undoubtedly, products are the basic element for marketing no matter
in any service mode. However, enterprises during the initial developing
stages, in order to get profits, develop urgent needed products by
customers, but more mature enterprises define their core mission as
improving user's comprehensive living quality. Most of the developing
enterprises run after economic expansion, while more mature
enterprises target in brand buildup, derivation of corporate culture,
and create overall values by activities that benefit human beings. This
has been proven by outstanding enterprises of various industries,
which all take creating overall values for customers as their core
mission. The telecom manufacturing industry is a very competitive
area. Many leading players in the line have taken slogans indicating
their missions or visions, for example "Enrich Life Through
Communication", "Connecting People", "Taking You Forward" and
"Welcome to the Human Network".
Modern enterprises aim at creating overall values for customers and
the society rather than manufacturing material, which is fulfilled via
services rather than pure products. Hence in today's market, pursuing
customer satisfaction is not a short-term action or medication for
better earning power, but an essential sign for the enterprise's
modernization. In other words, customer satisfaction is a management
standard and a performance result. Any activities of an enterprise will
be evaluated from perspectives of total customer satisfaction.
2. To satisfy customers perception is the biggest challenge
In meeting customers' requirements and measuring customers'
satisfaction indexes, customer perception should be definitely a key
consideration. Qualified services in the operation execution layer,
technical management layer and business development layer are
necessary. However, it is even more important to efficiently understand
customer expectations and make efforts to exceed their expectations.
Therefore, customer perception management becomes a central topic.
Frankly speaking, among all indexes in customer satisfaction
management, the biggest challenge is customer perception
management, or customer perception satisfaction.
As a matter of fact, one of the major characteristics of service is
intangible, hence the core value of services is not like a physical

56

product but the spiritual experience and perception of customers. The

final aim and ideal effect of service provisioning is to have customers
perceive and enjoy the service. Such perception is both at
psychological and behavior levels, and it is the contents of high quality
life in the modern society. Customers are seeking for material
deliverables as well as perceptive enjoyment when purchasing a
service product. Since perceptive enjoyment is a vital service
objective, one of the key service management objectives shall be
meeting customers' perceptive enjoyment.
For instance, in selecting a telecommunication service, beyond all
doubt customer will consider its service price, delivery quality, service
features, service stability, and service convenience. However, many of
the considerations are actually spiritual concerns, such as service
convenience, maturity of service delivery engagement model, service
effect, and customer loyalty. Involuntarily, indexes concerning service
product functions and delivery quality are all shifted to spiritual
perception.
Physical products can be relatively easily developed in this modern
society; however there is no apodeictic approach to achieve customer
perception satisfaction, which is the ultimate goal of services. The
customer satisfaction management approach varies with different
engagement model and interactions between the services providers
and customers, and it is not an easy to be managed. It requires high
psychology and behavior knowledge to measure customer perception
and evaluate the subsequent effect of the perception.
3. Customer perception, no matter how difficult to be measured,
can be improved via continuous practice.
It's always pleasant and easy to pursuing customers' perception,
though sometimes measuring it would be relatively difficult. Constantly
taking customers oriented and standing in their shoes to consider their
requirements, shall be the precondition of improving customers'
perception. Furthermore the key method of improving customers'
perception is to fully understand, elaborately configure, effectively
manage, and exceed customers' expectations.
Huawei has set up 103 local and customized service organizations
throughout the world with its rapid development of global market, and
it provides telecommunication service for over one billion subscribers
in more than 100 countries. Its excellent and stable service team, clear
and efficient business flow, and integrated and effective support
platform are the foundation of satisfying customers, meanwhile, there
are more important elements which have been attracting hundreds of

57

telecommunication operators, such as timely delivery, professional

services, customized service portfolio without stopping optimization,
all-around managed services, and innovated business models, etc.
"Total Customer Satisfaction" and "Service Creates Value" truly reflect
the truth of establishing and developing win-win partner relationships
with customers. Whenever you are thinking what you can do for
customers, how and to what extent you shall serve the customers, or
how to realize your differentiated service value, please don't forget to
think the question: "How to improve customers' perception?" Let's
practice together, do the right thing and do it wisely.
Customer perception is an important component of our relationship with
our customers. Given that 90% plus of our orders at some point involve
the phone, how we handle the telephone is essential to creating a
perception for our customer that aligns with the company mission of
service. The following is a great way of handling the phone.

1. The greeting is: Good Morning/Afternoon this is Joshua with (your

company name). How may I help you?

2. Always ask and receive a response from people before you put them on
hold: Would you please hold...? Then be sure they are not on hold very
long otherwise offer to call them back.

3. Remember to smile on the phone. Slow down and speak plainly and
clearly. Smiling stretches your vocal cords, and gives a more upbeat
presentation to the customer. Slowing down ensures that the customers
perception is of an organized systematic company that can handle their
project. Getting it done right and on time consistently.
4. If you transfer a call and know who is calling, tell the name of the
caller to your co-worker so they can greet the person by their name.
5. Under no circumstances should any interaction with a client be used to
express any sense of overwhelm that you may have. We are swamped,

58

we are so busy, etc. may be acceptable office banter in most companies

but it really should not be! If I am a customer and I am looking to get a
rush project done, this type of comment tells me that I might want to
consider looking elsewhere. Customers do not care how busy we are
when they call and ask: How busy are you? What they really care about is
can we take care of another project they have for us.
We know from talking to clients that often they feel that they are bothering
us or have a concern that they might be overloading us. It is curious to
know that sometimes these are our best clients that have this concern.
Therefore, anything that might reinforce this is something we want to avoid
(you do not need to send your work to other vendors even though you have
given us a lot of work already, we can handle it). One possible response to:
Are you busy? - is to say: We are busy, but never too busy to help you what can I do for you? or words to that effect. They are the customers.
They do not want to hear about our situation they want to talk about what
we can do for them.
6. If we have to contact a customer with bad news of any kind realize
that your tone of voice and approach to it set the tone. We do not want to
be nonchalant as if it is not big deal. Nor do we want to act like a terrible
calamity occurred. Here are keys to contacting customers with bad news:
* Prepare rehearse and organize what you are going to communicate to
them and how you are going to communicate it to them.
* Be sure there is no hint of blame or avoiding responsibility. Customers
do not care about the folder being broken, the copier jamming or any
other things. That is our problem. It is not their problem and they actually
do not want to hear about it. Certainly, later in the conversation if they
ask what the source of the delay or problem is, you can share that with
them, but it should not be something that you want to volunteer early in
the conversation.
* Be absolutely certain that you have options to give the customer in
these situations. This allows them to be more in control rather than a
victim. What are options? What are solutions? Do not call them with the
problem unless you are also providing solutions to them.
* Learn what you could have done to prevent this problem from occurring
and do so next time. Again, the customer is calling us to take on their

59

problems and to solve their problems. They really do not want (nor do
they care) to know about our problems.
7. Remember to always thank the customer. Thank them for calling.
Thank them for their business. Thank them for cooperation and
understanding. Thank them for a well prepared electronic file. Thank
them for a referral. Thank them for the professional manner in which they
and their company interact with us.

We want LG to be an aspirational brand

Repositioning is in the air at LG Electronics India, says MD Moon
B. Shin
Kamal Narang

Moon B. Shin, Managing Director, LG Electronics India, and President South-West Asia, LG
Electronics

R. Ravikumar

60

Lifes Good, announces a huge billboard in front of LG Electronics Indias

headquarters at Greater Noida. Located away from the Capitals traffic
congestion, on the Surajpur-Kasna highway, alongside the likes of Moser Baer,
Delphi Automotive and Asian Paints, all in the same belt, the 50-acre confine
flaunts a lush green lawn as its frontage. The tiled causeway on the left that takes
you to the corporate wing is spotted with small signboards that read either 2 X
10 or Drive 3Qs achieve 555 all the way. Once in the plush interiors of the
building, there is a staircase that leads to LGs India head Moon B. Shins office on
the first floor. A few more signs and you are in the well-appointed room where Shin
meets his visitors.
Shin is the second Managing Director of the company since its launch in India in
1997. In a freewheeling interview with BrandLine, he answered a range of
questions on LGs marketing and R&D efforts to 2X10s and 3Qs. He asserts
that LG believes in offering differentiated products to stand out in the cluttered
market place. He also believes that only a quality workforce can bring out quality
products. At LG, the emphasis is clearly on quality, come what may, he said. His
prime agenda is to change the customer perception of the brand LG from valuefor-money to aspirational.
Shin, who is also the President South-West Asia, LG Electronics, refers to
Hindustan Unilever as a marketing genius. Ask him about LGs competition with
Samsung, he says, with his tongue firmly in cheek, Interesting. Its a romantic
love story.
Excerpts:
How has the brand LG grown in consumers perception over the years in India?
In the last ten years, thanks to the strong infrastructure we have established, we
are in the No. 1 slot across the product range. The Indian consumer perceives LG
as a value-for-money brand. This is mainly due to our mass market products. But,
we dont want to continue that. Now we want to reposition our brand as an
aspirational one.
From the beginning of this year we started working on that and we have been
interacting with our customers and dealers for their insights, and it will be
completed by the end of this year.
In future, even our advertisements will not talk about product pricing. Instead, they
will talk about product quality, features and after-sales service support. We are
going to communicate the real benefits customers would get from our products.
LG is in four verticals home appliances, consumer electronics, GSM handsets
and IT products. Which one do you think you are the strongest in?
Actually, we are very strong and No. 1 in the home appliances segment. In the
consumer electronics segment, particularly in the flat panel display products, we
are No.2 after Samsung. And right now, we are a small player as far as the GSM

61

handsets and IT products are concerned. Going forward, we would focus more on
flat panel displays both LCD and Plasma TVs, GSM handsets and personal
computers as they are going to be our growth engines. From the year 2010, we
want to move away from the brand imagery of consumer electronics and home
appliances maker to that of a manufacturer of GSM and IT products. We want to
achieve market leadership in these segments through differentiated product
offerings, product quality, after-sales service and finally customer satisfaction.
Does it mean that LG would slowly get away from other categories?
No. In fact, as I told you, our strength lies in the home appliances segment. We are
planning to expand our product portfolio with a slew of launches next year. For
example, in the washing machine segment, we have developed a new technology
that is more energy-efficient and consumes less water. We will be launching it next
year. We will also launch a 40-bottle-capacity wine cellar, air purifier, a new range
of microwave ovens and more powerful vacuum cleaners. We are also planning to
foray into the inbuilt kitchen segment for which we will tie up with some builders
and architects. This is in the initial stages of planning. We see a good scope for
this concept. There is always a good demand for differentiated products in the
market.
Will your new products be India-specific?
Of course. Even our existing products are. We have a separate R&D team here and
an India-customised testing lab. Every year, LG is investing over 5 per cent of its
turnover in R&D. We know that India is a vast country with different climatic
conditions. Our products are designed and tested to suit Indian conditions. From
time-to-time, we conduct lifestyle studies in various parts of the country to find out
what customers aspire for and their insights, and design our products accordingly.
Its an ongoing process.
For example, in India, in most of the households washing machines are operated
by servant maids. So our washing machines are designed to be easy to operate.
Now we are developing refrigerators for households where pure vegetarians and
non-vegetarians live together. Our new microwave ovens will be more suitable to
cook Indian cuisines. Here, colour preferences also differ. Indians may not like the
colours that European or Americans like. But, basically, whatever we produce, we
want them to be differentiated, futuristic and of high value. We dont want to
compromise on quality. In LG, the emphasis is clearly on quality, come what may.
In the audio-video category, which technology will LG support HD DVD or
Blu-Ray?
Blu-Ray. We have already launched our Blu-Ray disc players in other countries.
We keep watching the Indian market and demand levels. As we feel it is too
expensive for the Indian market right now, we are developing a new chip that

62

would reduce the cost of the product. So I think we will be able to launch it here
in the next one year, for a price of around $200.
Whats your take on the competition with Samsung? You compete with them
here as well as in the rest of the world
Oh! (Laughs) Interesting. Its a romantic love story. Even back home in Korea,
we are almost neck-to-neck. Globally, and in India, they are pretty strong in flat
panel display TVs and monitors. We are strong in the home appliances segment.
However, with our latest launch of Pearl Black series of LCD TVs, we hope to
catch up with them very fast. Our Pearl Black LCD TVs and the Shine range of
GSM handsets are a great success in the market here.
To be honest, in terms of brand visibility in the South, Samsung is more
prominent than LG. Whats your market share now and how do you intend to
make further inroads in the market further?
Overall in the consumer electronics category, we are No. 2 after Samsung with a
market share of 24.6 per cent during January September 2007. And, in the home
appliances category we have 27.2 per cent share. LG is traditionally strong in the
Northern belt. We are now planning to focus more on the South.
This year, with two more months to come, we spent $80 million on advertising, and
are planning to increase it by 30 per cent for 2008. With that increased ad budget
we hope to penetrate the southern market with ease. In the meantime, we are also
working on beefing up our service-support network in the South and planning to
establish some more LG Shoppes.
Are you planning to pump more investments into the country?
Yes. Every year we invest around $30 million in the Indian company. We will
continue to do that in 2008 too. Depending on the demand, it may be increased
after that.
Will you make India facilities your export hub?
Oh, yes! Right now our Pune plant, apart from catering to the southern market,
produces goods for the export market. We are currently exporting products such as
TVs, optical storage devices, refrigerators, air-conditioners, personal computers
and washing machines to over 40 countries across the world from here. Last year
we exported goods worth $140 million and we hope to finish the year 2007 with at
least $240 million. Our target is to increase it by 60 per cent next year.
What is your target turnover for 2010?
Last year (2006) our turnover was Rs 8,250 crore. This year we hope to cross the
Rs 9,500-crore mark. We want to double our present turnover and profitability by
2010 (Thats what those 2 X 10 signs stand for). This will be achieved through
driving quality-consciousness among our workforce Environmental quality,
transaction quality and product quality (3Qs) whereby we can achieve 5 per cent

63

increase in profits, 5 per cent in market share and 5 per cent in brand equity (those
555s).
Are you planning any more facilities in India?
At the moment, no. Our Pune factory is very spacious, where we can add a few
more production lines in future. If the demand grows and should we need one, then
it will be in the South.

RESEARCH METHODOLOGY

RESEARCH METHOLOGY is the process, which guide the researcher during

the whole course of research. It works as a device without which an effective
research cannot be done. Hence it is, very much necessary for the
researcher that he / she has to adopt the design best suited to them.
If the due importance is not given to the research design it would create
impurities in the research process, thus the work would lose the reliability.
This is the reason that it is not desirable but also important to construct a
good research methodology.
During the course of this research, a descriptive research design is
used due to the following reasons:
a. It provides a sequential form to the whole process of research.
b. It helps to connect the whole research process to the objective of
research which otherwise would have departed thus disfigured the whole
research.
c. The design would help to make any change in future to the process and
check any major shortcomings which otherwise would have taken place.

Mainly three approach for conducting the research work:

64

1. Observation method
2. Survey method
3. Experimental method

The method that I use.

1. Direct interviews
2. Phone interviews
3. Market survey
4. Through question

Among of all these methods market survey and direct

interviews is the best method of data collection so I use 95%
research with the help of this method.

DATA COLLECTION:

The study involved collecting primary data. The details are as follows:

65

SOURCE OF DATA
The primary data was collected from the customers directly by the use of
questionnaires.

TOOLS FOR DATA COLLECTION

The tolls for collecting data from customers were structured questionnaires
containing both open ended and close-ended questions.

SAMLING
For both purpose of study the sample is collected from ALWAR (RAJASTHAN)

1. Sampling Techniques :
The techniques used for collecting the
sample was the convenience sampling.
2. Sampling Area

: Sampling area to be covered was ALWAR

Primary datas most important role is in knowing the

Demographic and socioeconomic characteristics

Attitude and opinions

Customer awareness about the product/brand.

66

In order to know the customers perception about Ashok Leyland commercial

vehicle primary data are required. Primary data can be gathered by survey,
visit to customers to get the primary data. This is needed for successful
completion of study.

QUESTION
Question have been used in the questionnaire provide a respondents a
fixed selection of answer the choose form. These questionnaire are easier to
administer and analysis. It also offers the least scope for interviewer to
produce data for rating and quality the strength to response.

SAMPLING
The purpose of sampling is to select a small numbers of units from the target
population in such a way that the sample truly represents the total
population being surveyed. The exact customers to be surveyed were
carefully selected before actually meeting them in person. This method is
simple, since one need only to ask the customer and then try to look into the
meaning that is assigned by him to the product.

The primary data collected not only give first hand information about the
customer s view of the product but also give valuable information about
their awareness about the competitors product.

67

CUSTOMER SELECTION
The total population can be split into two major segments i.e. product
segment and customer segment. Product segment of Ashok Leyland can be
further segregated as LCV/HCV. Customer segment is determined based on
fleet size and goods & passenger type.

SAMPLING TECHNIQUE
In determining the technique for drawing the sample three important aspects
were paid attention to:-

Sampling unit:
Who is to be surveyed The sampling unit defines the target
population. In the present research all the transport companies of Jaipur,
Dausa, Shahpura, Kotputli, Chomu, and Ringus constitute the entire
population.

Sample frame
It was database provided by the sales and services
department of Ashok Leyland, Jaipur.

Sample size:

68

The total sample size is chosen is 90. The sample was

chosen from sample frame and was based on method of convenience
sampling. This method is used taking into consideration the cost and time.
There are many transport companies, unions, hence those companies,
unions are chosen for study.

SUGGESTION & RECOMMANDATION

The following suggestion can be used for solving these

problems:

Reduce the maintenance cost

Canteen facilities should be improve in the company

Company should make more investment on advertisement to make it

more effective.

Regular advertisement should be done.

69

 Provide some scheme for customers.

LIMITATIONS

1.

The Research was conducted in a very small area.

2.

My Research work period witness the biggest ups and down in product

sale of different bands, which affected the perception of customer. This was
biggest drawback of my study.

3.

The customer filled the questionnaire mostly in careless manner. so it

was difficult to make them hold for time.

4. The sample size is also very small which represents my research on

customer perception against electronic market.

70

5. The project more or less functioned like clockwork and interviews had
ample time to collect the data.

APPENDIX

A.S.I

AREA SERVICE

IN CHARGE
A.S.M

AREA SALES

MANAGER
B.S.I

BRANCH

SERVICE IN CHARGE
CAC

COMMERCIAL AIR

CONDITIONING SYSTEM
C.S NET

CUSTOMER

SERVICE NET

71

D.S.C

DIRECT SERVICE

LOGISTIC HEAD

REFRIGERATOR.

CENTRE
L.H.D
OF DEPARTMENT
R.E.F

ANNEXURES

CUSTOMER PERCEPTION
QUESTIONS -

Customer satisfaction survey

72

1.

The whole process of getting your product services

Reception at the dealer workshop

1. Time taken to attend to you

Service Advisor

1. Explanation of service to be performed

2. Courtesy and respect shown
3. Honesty
4. Knowledge/Expertise
5. Fulfillment of commitments
6. Leason to requests
7. Questions asked to clarify needs
8. Understanding of the vehicles problems

In-service experience

1. Your time spent at the dealership

2. Customer lounge cleanliness
3. Customer lounge comfort
4. Customer lounge amenities

Service delivery

73

1. Promptness in delivering vehicle

2. Explanation of work performed
3. Explanation of charges
4. Process of paying for services
5. Cleanliness and appearance of vehicle

Service quality

1. Ability to diagnose problems

2. Quality of work performed
3. Thoroughness in fulfilling requests
4. Availability of parts for service

User-friendly service

1.

Fairness of charges

2.

Value of service received

3.

Consideration for your time

4.

Dealership values your business

5.

Dealer stands behind service

6.

Convenience of location

7.

Convenience of operating hours

8.

Cleanliness and appearance of facility

Problem experienced

74

1.

Trouble free operation

2.

Freedom from squeaks and rattles

3.

Ease of maintenance and repair

Other details

1.

Were you notified when our vehicle was due for service?

2.

Were you contacted after service to check your satisfaction with the
service done?

3.

Were you informed when the service was completed?

4.

Was transportation/shuttle service provided to you up to a

convenient location?

5.

Would you re-visit your dealer for a paid service/repair

RESONSE OF 60 CUSTOMERS BY THE SURVEY

Customer satisfaction survey

The whole process of getting your product services

75

40/60

Reception at the dealer workshop

Time taken to attend to you

58/60

Service Advisor

Explanation of service to be performed

50/60

Courtesy and respect shown

53/60

Honesty52/60
Knowledge/Expertise

51/60

Fulfillment of commitments

55/60

Leason to requests

52/60

Questions asked to clarify needs

49/60

Understanding of the vehicles problems

50/60

In-service experience
Your time spent at the dealership

49/60

Customer lounge cleanliness

52/60

Customer lounge comfort

45/60

Customer lounge amenities

48/60

76

Service delivery

Promptness in delivering vehicle

42/60

Explanation of work performed

46/60

Explanation of charges

40/60

Process of paying for services

50/60

Cleanliness and appearance of vehicle

52/60

Service quality

Ability to diagnose problems

42/60

Quality of work performed

51/60

Thoroughness in fulfilling requests

49/60

Availability of parts for service

53/60

User-friendly service

Fairness of charges

42/60

Value of service received

47/60

Consideration for your time

44/60

Dealership values your business

45/60

Dealer stands behind service

45/60

Convenience of location

40/60

Convenience of operating hours

48/60

Cleanliness and appearance of facility

52/60

77

Problem experienced
Trouble free operation

51/60

Freedom from squeaks and rattles

48/60

Ease of maintenance and repair

49/60

Other details
Were you notified when our vehicle was due for service?

42/60

Were you contacted after service to check your satisfaction

with the service done?

52/60

Were you informed when the service was completed?

48/60

Was transportation/shuttle service provided to you up to

a convenient location?

40/60

Would you re-visit your dealer for a paid service/repair?

42/60

BIBILIOGRAPHY

1.

www.lgindia.com

2.

www.google.co.in

3.

www.wikipedia.com

4.

Business world

5.

Business Today

6.

LG magazine

78

7.

Economic Time News paper

8.

Times of India

CONCULUSION
The survey work has done on the project topic Customer perception against
electronic market out with the following conclusion.

In survey work I covered near about 100 to 150 out lets in Bharatpur Region.
The following conclusions come out after the survey work:-

Most of the customer satisfied of the LG products.

The LG product mainly focuses on the competitors & mostly business

segment.

79

 Through the dealer and users satisfied with the sale of LG but there
are many problems, which come into picture after the finding.

Mainly in city area & urban area the LG sale is high.

80