MEERUT INSTITUTE OF TECHNOLOGY

MEERUT

SEMINAR REPORT
ON

A STUDY ON CONSUMER
PERCEPTION TOWARDS LG
ELECTRONICS
Submitted By:
NIKHIL
MBA III Sem

COMPANY PROFILE
Korean firms which together account for the 5 th largest foreign investment

in India have outperformed Japanese and Chinese firms.

LG echoes the sentiments of Korean president Roh Moo-Hyun. With a

littlesupport from the government in terms of fiscal incentives, we can

increase our exports from India manifold.
For LG, India is one of its biggest global markets and therefore its

strategies are much more aggressive to ensure huge growth. LG India has
done a creditable job of making it big in the consumer durable market,
roping in massive Rs. 5,500 crores in sales in the relatively short span of
seven years. As a company we manufacture almost everything in
consumer durable and electronics: colour televisions, refrigerators,
washing machines, mobile phones and IT products like computer monitors.
Our new plant in Pune, in addition to our current manufacturing facility at

Greater Noida, U.P. (on the outskirts of Delhi) will enable us to expand its
consumer reach and ensure better supply chain management that would
translate into a faster response time.

OBJECTIVE OF THE STUDY

Globalization has affected todays market very towards the

competitiveness. There are so many domestic and multinational companies

are growing up rapidly. Survival is being the core concept of the companies.
A company must know the strategy of the competitors because of its

directly affects the company. So there is need for a company to his rivals
market potential market share and selling strategies.
Today the choice and preferences of consumer is also changing. Customer is

now aware about the products. Customer is better educated more

sophisticated. He is aggressive and critical who demands his moneys worth
and pays only for what he wants and gets.
Dealers are the customers of the company and consumers are the main

source of the information. This project is also having certain objective for
which I covered both dealers and consumers all over Ghaziabad region. The
main objectives of the project are following:
To study the LGs advertising strategy vis-vis its competitors
To see how effective is the promotional and positioning strategy of LG.
To find out the problems faced by dealers in selling the LG products.
To find out the market share of products of LG in Ghaziabad.
To find out the most preferred brand in the market.

RESEARCH METHODOLOGY
Methodology is the specification of the method for acquiring the information

needed to structure the study.

Universe
Universe for dealer survey was Ghaziabad.
Universe for consumer survey was Ghaziabad.
Sampling Size:
Sample size for consumer survey was 100 covering houses and markets from
different areas of Ghaziabad.
Company survey consisted of visiting 20 dealers of Ghaziabad.
Sampling Techniques:
For Consumers survey Convenient Sampling techniques was applied.
For Dealers survey systematic and random sampling technique was used.
Collection of Data:
Secondary Collection
Internal Data:
Went through some previous market studies provided by the guide.
Previous summer training reports to grasp knowledge about white goods market.
Study of product manual and salesman training report to get product knowledge.
External Data:
Scanning of various business magazines.
Collected relevant information from the newspaper.

DATA PRESENTATION AND

ANALYSIS

Percentage

Brand-wise classification on basis of size(sq. cm)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

4
4

19

8
6
3
7

4
5

Brands

>600
300-600
150-300

0-150

7
1

BrandwiseClassificationofadvertisementon
basisofprescenceofahumanmodel

Pe rce ntage

100%

80%
60%
40%
20%
0%

14
29
5

Brands

3
8

Yes
18

No

BrandwiseClassificationofadvertisement
onbasisofmostlyText/Illustration

Percentage

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

2
T ext

28

17

Brands

8
4

16

Illustration

FINDINGS
A total of 100 consumers were taken into consideration for the
analysis. The survey covered different houses and markets in
Ghaziabad.
Consumers Perception in Ghaziabad:
Consumers Perception was analyzed on basis of various variables.
They are discussed below.
Perception of factors affecting buying behavior:
Various factors affecting buying behavior were asked to be ranked
by consumers in the questionnaire. They are plotted in a graph.
From the graph, it can be observed that Brand is the puller
followed by Durability and Price, which act as the most important
factors affecting buying behavior.
Perception on basis of recall of advertisement for Consumer
electronic items:
Consumer electronic items include Television, Refrigerator and Air
Conditioners.
Consumers were asked to recall the advertisement of any brand
and their responses are measured and plotted in the graph.

CONCLUSION
The result of success in todays highly charged competitive market

depends not only in product innovation and level of productivity but

also in hands of efficient service network with technological
advancements and more adaptability towards information edge.
It has been seen that companies are trying to lower the cost of
production and trying to give more emphasis in creating value added
customer base and customer service. It has lead o extreme
innovation and cost inclination to the marketer. It is also seen during
last few years that the companies, which have more, efficient, and
meaningful service network and also the companies who have
controlled the cost of distribution have eventually controlled the
market. Companies are finding that they can attract more customers
by giving better service or lower prices through better physical
distribution. On the other hand, companies may lose customers when
they fail to provide service to its customers at the right time because
a satisfied customer brings five new customers while a dissatisfied
customer takes away fifteen.

SUGGESTION
As explained previously there are two factors which effect the

consumer perception and consideration in buying a Air conditioners.

With Respect to company factors.
With Respect to Dealers Factors.
The prices of LG electronic items have to be competitive and have
to be reasonably comparable with other brands.
As it was observed that besides also played an important role in
buying consideration by the consumer.
As it was focused by the consumer in survey that brand Image
Plays. A Vital Role in electronic Market. They are the company LG
need to focus on building a higher Brand Image. Through high class
promotion and advertisement.
As we came to know that in non-branded electronic market, price in
the crucial factor and their segment. Accounts for the substantial
part of electronic market. There fore company should largest those
customers. By introducing medium to high Rang of Product.

LIMITATIONS
Some of the dealers as well as the customers were not

forthcoming with information as they thought it to be a waste

of time. Some customers were not able to respond due to lack
of awareness.
A number of dealers were biased towards a particular brand
which was giving them better returns.
Some of the shop owners were not available so, contacted
person was not able to present a fair view.
Respondents lack of time to give information and their casual
attitude was a big hindrance in the study.
The dealers were biased by some recent experiences which
they had with a particular distributor regarding the service or
distribution.
Respondents lack of time to give information and their casual
attitude was a big hindrance in the study.

ANNEXURE
Which of the following Age group do you belong ?
< 20 yrs 20yrs to 35 yrs
35yrs to 50 yrs >50yrs
Monthly Income:
Less than Rs 3000
Rs 3000 to 9000
Rs 9000 to 15000
>Rs15000
Are you planning to buy any consumer electronics item within a
year?
YES NO
What is your total monthly household income?
Less than Rs 3000
Rs 3000 to 9000
Rs 9000 to 15000
>Rs15000
What all products of consumer electronics are there in your house?
CTV: LG Samsung Sansui BPL
Videocon Onida Other

BIBLIOGRAPHY
Johnson & Scholes, "Exploring Corporate Strategy",

Text and Cases. Prentice Hall of India, 7 th Edition, 2011

Kotler Philip, "Marketing Management", Prentice Hall
of India, 2011.
Wilson & Gilligan, "Strategic Marketing Management",
Viva Books Private Limited.
Economic Times, July 2012, "LG Unplugged", Romi
Mukherjee.
Business Today, April 2013, "Will LG be Lucky Enough
to Strike Gold", George Skaria.
A&M 2013, February, "LG's Fine Push & Pull Strategy".
www.lgindia.com