A PROJECT REPORT ON

COMPARITIVE ANALYSIS OF CONSUMER DURABLE INDUSTRY SAMSUNG AND LG

Submitted in the partial fulfillment of the requirement for the award of the diploma OF Post Graduate Diploma in Management
Academic Session
SUBMITTED BY: GROUP NO-F563/SS10-12 Batch UNDER THE GUIDANCE OF MR.PUSHP LUMBA

March 2012

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT, CHATTERPUR, NEAR CHANDAN HAULA, NEW DELHI.

DECLARATION I hereby declare that the project entitled as Comparative Study of Consumer industrySamsung and LG Submitted for the PGDM Degree at INDIAN INSTITUTE OF PLANNING & MANAGEMENT DELHI, is my original piece of work done by me and has not been submitted to any other institute/college/university in any manner possible.

ACKNOWLEDGEMENT

I would like to express my sincere gratitude and thanks to my College project guide Sir Pushp lumba for his constant support , advice , guidance in the preparation of this report. My heartfelt acknowledgement of the ever present motivation and encouragement provided by my internal guide Prof.PushpLumba, IIPM, New Delhi. Last but not the least, a big thank you to all my friends and colleagues for constantly motivating me to give every endeavor my best effort..

INTRODUCTION 1.PROJECT TITLE-Comparitive study and analysis of Samsung and LG. 2.Objectives: 1.To Analyse the positon of samsund and lg 2.To identify weak areas & provide recommendation for the sales organisation. 3.To identify the salesman about the Samsung products with respect to its competitors in consumer durable segments. 3.Scope of the study: This Project gives us great expose to the consumer durables market because it includes product knowledge & also the sales operation and strategies adopted by Lg and Samsung and field work which we visited stores in Delhi/NCR. 4.Methodology: Primary Data: Concerning to Sales Person of lg and Samsung in diferent areas in Delhi/NCR. Secondary data: Websites, informal discussion, Reference from search engine

5.Research Area: Malviya Nagar,Saket,Gurgoan

SWOT ANALYSIS OF SAMSUNG AND LG Swot Analysis of Samsung: Strength: 1. Focus on new articles for the high end market place. 2. Created a unique Brand. 3. Heavy asset in technology and staff.

Weakness: 1.Lack of different models 2. No actual user affordable Design. 3.Not targeting the mass market. Oppurtunity: 1.Differentiate its account from competitors. 2. Tie up with Account providers. 3. Indian mass market. 4. Samsung well known for its product Differentiation. Threats: 1. Downtrend in the consumer market. 2. Agitated competitors including nokia, Panasonic. 3. Increased Emergence of modern retail chains.

LG Swot Analysis: Strengths: 1.LG is a multinational company and a recognized brand around the world. It has successful established not only in developed countries but also in developing countries. 2.LG products are reliable, easy to use, and have simple designs which satisfy customers thats why LG have the advantage of having loyal customers. 3.In LG Corporation the research and development has given greater importance because to satisfy the customers and provide the customers what they want the research and development id required. 4.LG try to keep products innovative to attract the customers and to capture more market share. 5.LG is at its growing stage and its growing quickly. It is producing solid products which rapidly satisfying the customers. Weaknesses The big weakness of LG is that it has very few competent employees mostly are not skilled and also there is no training and development concern for employees. Opportunities 1.The electronic market is expanding rapidly which is a great opportunity for LG to expand itself in new market and to capture more market share. It also can expand its target market geographically and socially both by introducing new products in existing market and existing products in new markets. 2.Through the innovation in existing products it can attract more customers because at present it is behind the market leadership so to become a leader it has to make innovations to attract potential buyers and retain existing customers.

Threats 1.As the competitors of LG are more dominant in the market and continuously improving their products so they can take away the existing customers of LG, so it has to work very hard to retain and attract customers. 2.The condition of economy all around the world is not good and it is affecting the purchasing power and priorities of the customers, people are facing difficulties in satisfying basic and needs so how they can spend on electronics which is considered as luxury items. This situation can affect the sales of the company. COMPARISON OF SAMSUNG(LCD TV) AND LG(LCD TV):

It provides information for marketing decision problems are identified and investigated further by using problem solving techniques with the objectives of arriving at solution. Comparative analysis of Samsung electronics is done with its various competitors like (Videocon,Panasonic,Sony )especially with Lg. 1. Sales position: Samsung is currently top sellers of LCD TVs these are sold more than LG LCD TVs 2. Manufacturing Report: Samsung TVs manufacturing is greatly being seen over the web. Although this might be due to the fact that their TVs are selling more than lg.

3. Picture quality: Quality of image varied from model to model of Samsung and lg manufacturing & also depends on settings which are used on the tvs. 4.Audio quality: Generally I found that LG had better speaker and their overall sound quality was better than those samsungs 5.Features: I found Samsung tvs to be studded with better features than the lg tvs. 6.After sale services: Many complaints from Samsung lcd tvs that their customer service is bad and they get delayed to get repaired.and Lg provides good service to their customers. Conclusion: We must say that comparison between two leading manufacturer is dividing which one is better seems to be much more of a personal preference than anything else. They both have similar price offerings, similar picture quality in same price range and similar almost whichever brand you purchase you are going to get good TV. You must also take a look at our guide to buy lcd tv before buying one. Happy shopping!.

Findings: 1.we came to know while visiting the shop most of the dealers sold entire consumer durable product including TV, refrigerator, washing machine , Dvd, Micro wave oven. 2.we know that during the field work in consumer durable industry,delhi,gurgoan.lg is leading in colour television, washing machine.Refrigerator since their products are of labour cost as compared to Samsung. 3.while visiting the shop we came to know that the quality is most important parameter which is affect on more sales of washing machines. 4.Videocon has given high profit margin as compare to other competitors. 5.After sale service is the most important factors which contributes towards the sales of consumer durables.LG has very good after sale service compared to Samsung. 6.Sales promotion schemes were suffiecient. 7.Demonstration are not given properly. 8. Lg, Videocon are the biggest competitors of Samsung. 9. Samsung products are costlier as compare to LG,Videocon. Suggestion and Recommendation: 1. Samsung company should improve the after sale service of products as it is the main factor of the sales of consumer products. 2.If Samsung ltd reduces their product price like LG,Videocon then Samsung will take over the LG in all categories. 3.Company should produce free key chains,calendar,t-shirts for making brand popular among people. 4.Dealer should more add to be done through local newspaper and cable tv adds .to make consumers aware abpout the products.

5.Branding and promotional activities should be done effectively as it creates a long lasting image in the minda of consumer. 6.Samsung company should try to trap the rural market as well as in order to increase its market share and to be at the top. CONCLUSION : In order to secure future success in a very competitive market they need to focus on being innovative and expand their product into new markets and countries, Samsung should also invest heavily into establishing its brand name into foreign countries to attract talent. Applying all of these Recommendation and suggestion will generate a better future for Samsung and LG and will make them be able to compete with each other companies in the industry. Ssmsung provides the electronics market with a full range of great consumer products,ranging from mobile market to home appliances.They have proved themwselve as innovative and effiecient company that strives to provide their customers with the newest products for a great price with wide range of products that have generated a powerful supply of products.the limitability of their resources that Samsung has to think of new ways to stay on top of the market and stay profitable in long run.

Thank you