1 A PROJECT REPORT ON DEALER SATISFACTION OF LG PRODUCTS WITH THE CONSIDERATION OF CUSTOMER VALUE AND SATISFACTION In Meerut region during 15 Feb to 8 March Submitted To: Resp. Mr. Shushant Mittal Sir Submitted By:SHIVANI ARORA YAMINI MUDGAL GOVIND SHARMA RAMESH ROY PGDM (IInd sem.) Acknowledgement

2 It is indeed of great moment to pleasure to express my senses of per found gratitude & indebt ness to all the people who have been instrumental in ma king my tanning a rich experience. I got the opportunity to do a challenging pro ject in dealer. The project is the important part of our study and gives us a re al practical exposure to the corporate world and it is almost impossible to do t he same without the guidance of peoples in and around us. Practical study is the area which confirms the theoretical idea of a subject. Both are essential tool in order to provide any marketing strategy, design implementation and their uses . The survey is nothing but gathering data of any theoretical marketing strategy . These two aspects are in similarity to the learning and knowledge. I acknowled ge the in depth guidance provided by Mr. Shushant Mittal sir. They are provided us the valuable information regarding RESEARCH METHODOLOGY. I am also thankful f or providing me the computer lab as when required in order to complete the proje ct in time I feel very pleased to express my gratitude to all those people who h elped me out during the preparation of this project. At last but not the least I would like to thanks to my friends and seniors for their valuable suggestions a nd encouragement. PREFACE

3 A project training program has been incorporated in the PGDBM curriculum of Insti tute Of Productivity and Management where the surveyor (student) has to apply all experience and knowledge, which he has gained during his management study. A pr oject gives training where the surveyor has to prepare a synopsis by interpretin g the data, which they received in the form of answers of his questions, which h e has prepared during his project work. The student has to apply all his classro oms and practical study in such a way that they receives the response as per the re wish. As we are in the initial stage of our management study so this project has helped us a lot and helped us to clearly understand the marketing behavior a nd to closely face the marketing trends, which would help us in our near future, so that we can sustain ourselves in adverse marketing situation and bring out a perfect solution whenever required. So in this project, which was assigned to u s , I have undertaken the survey on dealer satisfaction of LG products. In Meeru t region. I have applied all my experience which I have gained during my study p eriod. index

4 Introduction... ..1 Company profile.. ..2 Vision .

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Research methodology.. ....24 Data analysis 27 Findings

6 INTRODUCTION Dealer behavior is the study of how he purchases, how he sells, how they get fee dback from consumers and after that he came to conclusion about particular LG pr oduct. It is a subcategory of marketing that blends elements from different fiel ds. It attempts to understand the buyer decision making process, both individual ly and in groups. It studies characteristics of individual consumers such as dem ographics, psychographics and behavioral variables in an attempt to understand p eoples wants. It also tries to assess influences on the consumer from groups suc h as Family, friends, reference groups, and society in general. By understanding the consumer, we will be able to make a more informed decision as to which stra tegy to employ.

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8 History of LG company About LG Group The LG Group is South Korea's third largest conglomerate]] that p roduces electronics, mobile phones, and petrochemical products and operates subs idiaries like LG Electronics, LG Telecom, Zenith Electronics and LG Chem in over 80 countries. LG Group sponsors the LG Cup Go Tournament. LG Group founder Koo In Hwoi established Lak Hui Chemical Industrial Corp. in 1947.[3] In 1952, Lak H ui (currently LG Chem) became the first Korean company to enter the plastics ind ustry. As the company expanded its plastics business, it established GoldStar Co ., Ltd., (currently LG Electronics Inc.) in 1958. In 1959, Goldstar produced Kor ea's first radio. Many consumer electronics were sold under the brand name GoldS tar, while some other household products (not available outside South Korea) wer e sold under the brand name of Lucky. The Lucky brand was famous for its hygiene products line such as soaps and Hi-Ti laundry

9 detergents, but most associated with its Lucky and Perioe toothpaste. In 1995, i t was renamed "LG", the abbreviation of "Lucky GoldStar". More recently, the com pany associates its tagline "Life's Good", with the letters LG. About LG Company Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, e mploying more than 82,000 people working in over 110 operations including 81 sub sidiaries around the world. With 2007 global sales of USD 44 billion*, LG is com prised of four business units - Mobile Communications, Digital Appliance, Digita l Display and Digital Media. LG is the worlds leading producer of CDMA/GSM handse ts, air conditioners, front-loading washing machines, optical storage products, DVD players, flat panel TVs and home Theater systems.

10 LG has created reputation for progressive technology and innovation with the rel ease of some of the latest technological developments in consumer electronics, h ome appliances and IT products. For example, LG is currently the world's number one manufacturer of plasma display modules. LG Electronics' goal is to enable th e intelligent networking of digital products that will make consumers' lives bet ter than ever. LG Electronics has established itself as a major international sp orts sponsor with partnerships including the LG Super Racing Weekend touring car s tournament in conjunction with Eurosport and the ICC cricket tournaments for e xample the ICC Trophy in England 2004 and the Cricket World Cup 2007. In 2005 LG are proud to sponsor all of ITVs Formula 1 coverage for the duration of the 2005 F1 season. For more information, visit the sponsorship page. 2005 will see LG s trengthen our range of large screen, HD and Digital Ready Plasma and LCD TVs. Our TV products are not just leaders in technology and innovation but also offer sl eek design and style, our TV products really will be the centre of attention thi s year. This year our Digital Appliances will reinforce our presence in the UK i n 2005. New and unique products will see us playing a major role in the home app liances market. Flagship products

11 that will lead our ranges include a stylish Side by Side Refrigerator with built in LCD TV, large capacity Direct Drive Washing Machines, round cavity Microwave s and new Vacuum Cleaners with multi-cyclonic technology. Also new in 2005 are L Gs stylish and innovative 40 & 80 series LCD Monitors and a growing range of the award winning Optical Storage Super Multi Drives. Corporate Name Established Company Number The Place of registration Corporate Of fice LG Electronics U.K. Ltd January 30th 1985 02143888 Registered in England and Wal es LG House, 250 Bath Road, Slough, Berkshire, SL1 4DX Tel: 01753 491500 Fax: 01 753 693 061 URL: http://uk.lge.com esident Mr Brian Na

12 Vision LG Electronics continues to pursue its 21st century vision of becoming a worldwi de leader in digitalensuring customer satisfaction through innovative products an d superior service while aiming to rank among the worlds top three electronics, i nformation, and telecommunications firms by 2010. On our way, we hold tight to a philosophy of Great Company, Great People, underscoring our belief that only grea t people can create a great company. LG strives for greatness in what weve identi fied as our three core capabilities: Product Leadership, Market Leadership, and People Leadershipeach strength a key part of realizing our growth strategies for f ast innovation and fast growth.

13 VISION Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company GR OWTH STRATEGY Fast innovation, Fast growth CORE COMPETENCY Product leadership, Mark et leadership, People leadership CORPORATE CULTURE No excuse, we not I, Fun workplace Global Operation

14 LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiar ies in the world with around 82,000 executive and employees. LG Group 1. 2. 3. 4. 5. 6. LG.Philips LCD LG Chemical LG Telecom LG Powercom LG Twins LG Dacom Business areas and main products Mobile communications (a) CDMA Handsets, (b) GSM Handsets, (c) 3G Handsets, (d) Cellular Phones Digital appliance a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net, g) Compressors for Air Conditioners and Refrige rators

15 Digital display a) b) Plasma TVs, LCD TVs, Micro Display Panel TVs, Monitors, PDP Modules, OLED Panels , USB Memory, Flat Panel Computer Monitors c) d) e) f) g) h) Digital media a) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CDRW, e) Notebook PCs, f) Desktop PCs, g) PDAs, h) PDA Phones, i) MP3 Players, j) New Karaoke Systems, k) Car Infotainment SLOGAN

16 "Life's Good" represents LG's determination to provide delightfully smart produc ts that will make your life good. The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good" set in Charlotte sans typeface curved around the LG symbol . The curving of the slogan reinforces LG's personality and uniqueness. The cons istent usage of this signature clearly establishes the unique identity of the co mpany and unifies every division and product from LG Electronics across the glob e. THE SYMBOL

17 The symbol of LG is the face of future. The letter L and G in a circle symbolizes wo rld, future, youth, humanity & technology.LG philosophy is based on humanity. It also represents LGs efforts to keep close relationship with our customers around the world. The symbol consists of two elements. 1. The logo in LG gray 2. The s tylized image of human face in the unique LG red color. Red color represents our friendliness and gives a strong impression of LGs commitment to deliver the best . The circle symbolizes The Globe. The stylized image of a smiling face in the s ymbol conveys Friendliness and Approachability. The one eye on the symbol represen ts Goal-oriented, Focused & Confident. The slogan of LG is Lifes Good. It expresses Br ands Value, Promises, Benefits, Personality. THE PARTNERSHIP----LG Electronics chooses to promote harmony and build construct ively on a labor-management relationship rather than an employee-employer relati onship. This illustrates that management and workers are not in a vertical relat ionship, but in a horizontal one. This culture is necessary for LG Electronics a s it strives to become one of the world's top companies. Such a relationship is transformed into a valuecreation relationship whereby both parties endeavor to a ddress mutual problems and create new values together.

18 LG BRAND IDENTITY:The brand of LG is delightfully smart. LG strives to enhance t he customers life and lifestyle with intelligent features, institutive functional ity and exceptional performance. The brand platform:The LG brand is composed of four basic elements 1. 2. 3. 4. Value Promise Benefits Personality The Brands core Value that never changes. a. b. c. d. Trust, Innovation, People Passion The benefits that are consistently delivered to the customer includes 1. Reliabl e products 2. Simple design 3. Ease of use 4. Extraordinary Experience

19 Personality describes the human characteristic that are expressed to the custome r through 1. Trustworthy, Considerate 2. Practical, Friendly The Internal Cultur e of LG: LG practices four cultures 1. Learning Culture 2. Boundary less Environ ment 3. A Carrier 4. Growth According to LG, the Learning Culture continuously helps the employee to learn m ore and more to develop the habit of continuous learning. Boundary less Environment means that there is no difference between the levels o f employees. There is transparency between the work and mutual understanding bet ween all the employees. A carrier is highly growing in LG and one who is the emp loyee can develop their carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall g rowth of personality.

20 Growth in LG is very high for those who are in the company and for those who wan t to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth. Mission The mission of LG is to provide the customers with utmost satisfaction through l eadership. The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. Product Leadership We are focusing on six development areas to become the produc t leader. 1. New Machine 2. Reliability 3. Conventional Installation 4. Environm ent Friendly Product 5. Low Noise & Vibration 6. Energy Saving Quality Innovation

21 The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects. LG proceeds in a hierarchal manner. It is named as LG WAY. From top to bottom: No. 1 LG is the VISION( MANAGEMENT IN ACTION (LG's management system) Jeong-DO Management is LGs unique application to ethics. LG will succeed through fa ir management practices and constantly developing our business skill. A) Honest with our customer b) Providing great values to customer through consta nt innovation & and development. c) Equal opportunities d) Equal Treatment Manag ement Principle - Creating value for customer

22 Code of conduct of LG: 1. Responsibility and obligations to customers : Respect for Customers Creating Value Providing Value 2 Fair competition Pursuit of Free Competition Compliance with Laws and Regulations 3 Fair Transaction : Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partners 4 Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company inte rest 5 Corporate Responsibilities to employees

23 Respect for human dignity Fair Treatment Promoting Creativity 6 Responsibilities to society and country Rational Business Development Protection of stock holder interest Contribution t o social development Environmental Conservation LG INDIA:

24 LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, Sou th Korea was established in January 1997 after clearance from the Foreign Invest ment Promotion Board (FIPB). LG set up a state-ofthe art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG c orporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida , India. This facility manufactured Color Televisions, Washing Machines, AirCond itioners and Microwave Ovens. ''Company is setting up a chain of exclusive premi um showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the firs t quarter of this year. At present, LG has a total of 83 LG stores across the co untry, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will b e placed in the premium segment and the target audience will comprise buyers int erested in premium and high end products. LG Brand Shoppe goes beyond the concep t of a normal exclusive store by having a more interactive environment and addit ional lifestyle orientation on display so that the customer can actually experie nce the LG products in his or her own home settings. LG Electronics India Ltd (L GEIL), consumer durables leader with 27% market share, is planning a brand new i mage. To attract inspirational and young consumers across India, company will ro ll out a new marketing strategy. The exercise will cost the company Rs 360 crore .

25 LG Electronics India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today. LG Electronics is con tinually providing, superior technology products & value for money to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this year . LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electro nics' largest R&D centre outside Korea. We at LGSI focus on niche technology are as such as mobile application development, digital video broadcast and biometric s software and support LG Electronics with our expertise. Motivated by a passion for technology, a strong work culture and loyalty to the organization, we are d etermined to see LG become one of the top three brands globally. Prominent consu mer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing dir ector of LG Electronics India has said that the company has earmarked 4.8 billio n rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products. LG Electronics, which is original ly a South Korean Company with branch in India, informed that its sales of GSM m obile phones, color televisions, air conditioners and other household goods in t he Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees. In o rder to achieve its target, Shin said LG Electronics will concentrate on caterin g to the high-end consumer market which will help boost sales this

26 year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. India challenges The challenges faced by LG when entered in Indian market 1. Low brand awareness about LG in India. 2. One of the last MNCs entered in Ind ia (Samsung, Panasonic entered in 1995 in India). 3. High import duty 4. Compiti tion from local market players and other MNCs in consumer durable segment. 5. Pr ice sensitiveness of the Indian consumer Objective

27 1. To find out the dealer satisfaction with the consideration of Customer value. 2. To determine the role of media in marketing awareness of existing and its la test innovative technology. 3. To identify the factor and features by which a co nsumer influenced to buy the LG products. 4. To find out the services provided b y the LG is appropriate or not. OBJECTIVE OF THE STUDY

28 The objective was to find out the dealer satisfaction of LG products, role of media in marketing awareness of LG products from dealers and the services they are getting from LG so that if any problems then can be resolv ed to increase the sale. PICTURE SHOWING THE PRODUCT OF LG IN ONE OF THE SHOP RESEARCH METHODOLOGY:

29 Research comprises defining and redefining problems, formulating hypothesis or s uggested solutions, collecting, organizing and evaluating data; making deduction s and reaching conclusions to determine whether they fit the formulating hypothe sis. RESEARCH METHODS OF MY PROJECT: DESCRIPTIVE RESEARCH: Descriptive research inclu des surveys, fact-findings enquiries of different kinds. The major purpose of th is research is description of the state of affairs, as it exists at present. The main character of this method is that the researcher has no control over the va riables; he can only report what has happened or what is happening. It also incl udes attempts by researchers to discover causes even when they cannot control th e variables. The method of research utilized in descriptive research is survey m ethods of all kinds including comparative and co relational methods. RESEARCH METHOD: Data collection method

30 TYPES OF DATA: In my project I have classified the data into two specific types: PRIMARY DATA PRIMARY DATA: As it is known that primary data are collected a fre sh and for the first time, and thus happen to be original in character. So, in o rder to collect this type of data various methods are being used, such as: OBSER VATION QUESTIONNAIRE INTERVIEW SAMPLE DESIGN: The sample technique adopted is random sampling method. Since sam ple is going to be chosen from different areas so it is geographical sampling wh ich is predefined so as to get maximum information, which rare true and reliable without biasness. SAMPLING METHOD: Random sampling

31 SAMPLE SIZE:I have used sampling method for survey purpose. The sample size for questionnaire is 20. PERIOD OF STUDY: This study is carried out for a period of 15 days. It commenced on 21thFerburary 2009 and completed on 5th March 2009. FIE LD AREA: This research study work is carried out in MEERUT. RESEARCH INSTRUMENT: The research instrument for the purpose was questionnaire a nd some personnel interviews of some whole sellers.

32 Data analysis Q1-You are dealing with the LG brands from?

33 No of years 5 years 5-10 years More than 10 years No of respondents 10 6 4 %age of respondents 50% 30% 20% %age of dealers dealing w LGbrand ith 2% 0 50% 30% 5 years 5 years -10 m oretha 1 yea n 0 rs Interpretation: - Above graph shows that half of the dealers selling from 5 year s and rest of them more than 5 years that means they are satisfied with company. So they are doing regularly. Q2-Which products of LG are most preferable by customers? Product No of responde nts %age of

34 respondents TV Washing machine Refrigerator AC Computer Mobile 8 4 5 2 4 2 % g o s lin o p o u t a e f a g f r d cs 32% 16% 20% 8% 16% 8% 1% 6 8 % 2% 0 8 % T V 3% 2 W . .M Rf er A . .C 1% 6 Cmu r o p tes Mb o ile Interpretation:-This chart is showing that %age of sales of TV is 32% which is m ore than that of others. It means the selling of TV is more than that of other L G products Q3. In which season the selling of products is more? Months No of res pondents %age of respondents Jan-March Apr-June 3 9 15% 45%

35 July-Sep Oct-Dec 1 7 selling of product 5% 35% 15% 35% jan-mar apr-june july-sep oct-dec 5% 45% Interpretation:-This chart is showing that in the month of April to June the sal es of LG products is very high than that of other which is 4%.it mean it may aft er that in the month of October to December the sales of LG product is also more . Q4.Which factors influence the consumers to purchase the LG products? Factors No of respondent %age of respondents Quality Price 4 3 18% 14% 9% Sales promotion activities 2

36 Brand image Services 12 1 54% 5% %age of factors influence consumer to purchase LG product quality 5% 18% price sales promotion activities brand image services 54% 14% 9% Interpretation:-Brand image is influenced most of the people to purchase the con sumer durable. Q5.Opinion of the credit facilities are provided by the company? Level of satisf action Very satisfied Somewhat satisfied Somewhat dissatisfied Very satisfied No of respondents 2 4 11 3 %age of respondents 10% 20% 55% 15%

37 %age of level of satisfaction of dealers very satisfied 15% 10% 20% somewhat satisfied somewhat dissatisfied very dissati sfied 55% Interpretation: - the dealers are not getting the credit facility by the LG whic h make them more dissatisfied. Q6. Media plays an important role of making the awareness of the product. What d o you think? Percentage 20%-30% 30%-50% No of respondents 1 4

38 50%-70% 70%-90% 9 6 30% 5% 20% 20%-30% 30%-50% 50%-70% 70%-90% 45% Interpretation:-60%to 70% of the people get aware from media. Q7. What are the f actors in media which makes the consumer more attentive towards the new, improve d and innovative products and technology? Factors of media Television News paper Internet Magazine Hoardings No of respondents 17 5 2 1 2 %age of respondents 59 % 17% 14% 3% 7%

39 % of respondents 14% 3% 7% telev ision news paper intrnet 59% magazines hoardings 17% Interpretation: - the factor in media which makes the consumer more attentive to wards the new, improved and innovative products and technology is Television whi ch plays important role in advertisement in comparison to others. Q8. Are you sa tisfied with the promotional activities of the company? Level of satisfaction No of respondents Very Satisfied Somewhat satisfied Somewhat dissatisfied Very dis satisfied 2 13 5 0 %age of respondents 10% 65% 25% 0%

40 %of respondents v satisfied ery 25% 0% 10% somew hat satisfied somew hat dissatisfied v dissatis fied ery 65% Interpretation:-This chart is showing that most of the dealers are somewhat sati sfied with the promotional activities of the company because the %age of somewha t satisfied is more than that of other which is 65 % and 25% dealers are somewha t dissatisfied also. Q9. What is your annual sale of LG products? Income level No. of respondents Les s than 5 lac 5 to 10 lac 10 to 15 lac More than 15 lac 4 9 5 2 %age of responden ts 20% 45% 25% 10%

41 %of respondent's annual income 10% 25% 20% >5 lac 5-10 lac 10-15 lac