A Comparative Marketing Study of LG Electronics

INTRODUCTION

Introduction

A comparative marketing study of LG Electronics vis-à-vis competitor’s(Samsung,

Haier, Videocon, Godrej ) in the area of Noida and Delhi……………

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to

inquiry and inquiry leads to investigation” Research inculcates scientific and inductive

thinking and it promotes the development of logical habits of thinking and organization.

Research is a common parlance refer to a search of knowledge. The advanced learner’s

Dictionary of current English lays down the meaning of research as a careful

investigation or inquiry specially through search for new facts in any branch of

Knowledge.

What is comparative Marketing study? In comparative marketing research we take our

competitor’s products and make comparison through consumer with our own products.

Why Comparative Marketing study? Comparative marketing study/research comprise

one of the most important and fascinating task of marketing. It provides information for

marketing decision making, any problem that are identified and investigated further by

using problem solving techniques with the objective of arriving at solution. The most

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important innovation in the new approach is to study simultaneously different

organizational forms of business interest representation. The aim of the study is to point

out the best (in this respect) among the alternatives that are being studied. The final

aim perhaps is not only to find the best, but also to improve it or similar objects later

on.

LG Electronics India Ltd. (LGEIL) is the youngest and fastest growing consumer durable

brand. Today, LGEIL is an US$ 1456 million behemoth, with a sprawling product range,

and market leadership in nearly all product categories.

The study will also include the survey which will be targeting about 20 dealers and

around 100 consumer in the NCR . The main emphasis in the survey will be given on the

sales of LG in comparison to its competitors in CTV, WASHING MACHINE,

REFRIGRATOR & AC segment, the consumer perception about the brand will also be

taken into consideration while conducting this survey.

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The analysis of the buying behavior in respect to CTV, WASHING MACHINE,

REFRIGERATOR & AC will be another important component of my study. Buying

behavior of the consumer is a study of how individuals make decisions to spend their

available resources ( time, money & effort ) on consumption related items(what they buy,

why they buy, where they buy , how often they buy and use a product or service). The

heterogeneity among people across the world makes understanding consumer buying

behavior an intricate and challenging task. The consumers’ identity, his beliefs, specific

needs, attitudes and the kind of product and brand available in that product category

influence his buying behavior. The marketing efforts of a firm have a profound impact on

the buying decisions of customers. Therefore the attempt of my survey will be to obtain

an in- depth knowledge of the customers buying behavior.

The effect of external variables on purchasing pattern of customer will also be considered

here the external variables refer to all those factors which will be affecting the consumer

purchasing decisions, these can be price of the goods and on its attitude to respond to

functional needs. The critical variable under this approach is the availability of adequate

information about purchase alternatives (price, product functionalities) to support the

decisional process .

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HISTORY

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1. HISTORY

1958GoldStar (today's LG Electronics) established

1959Korea's first radio produced

1962Radio exported to the US and Hong Kong as Korea's first

1965Korea's first refrigerator produced

1966Korea's first black & white TV produced

1968Korea's first air conditioner produced

1969Korea's first washing machine produced

1974GoldStar Communications went public

1977Color TV produced

1978Exports surpassed US$100 million as Korea's first in the electronics industry

1980First EU sales subsidiary in Germany (LGEWG) established

1982Color TV plant in Huntsville in the US established

1984Sales surpassed one trillion won

1986European-standard VCR plant in Germany established

1989Sales subsidiary and a joint production subsidiary in Thailand established

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1990Ireland-based design technology center established

1993With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing

1995Company name changed to LG Electronics and the US-based Zenith acquired

199740-inch PDP TV and the world's first IC set for DTVs developed; India production subsidiary (LGEIL) established

1998World's first 60-inch PDP TV developed

1999LG.Philips LCD, a joint venture with Philips, established

2000LG Information & Communications mergedThe world's first Internet-enabled refrigerator launchedGlobal sales of refrigerators reached the number one position

2001Asynchronous IMT-2000 equipment commercialized; the world's first Internet- enabled washing machine, air conditioner, and microwave oven launched; LG.Philips Displays, a joint venture with Philips established

2002Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) and LG Electronics Investment (LGEI); the first home network system commercialized in the global market

2003World's first synchronous-asynchronous IMT-2000 mobile phone developed; the world's first 76-inch PDP TV developed; CDMA mobile handsets took the largest share in the US & world CDMA market

2004EVSB, the next-generation DTV transmission technology chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55" LCD TV, the world’s first and largest among LCD TVs, commercialized The world’s largest and first LG 71" plasma TV commercializedThe world’s first terrestrial DMB phone developed

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A. Overview of the Consumer Durable Sector

Background: Prior to liberalisation, the Consumer Durables sector in India was restricted

to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together,

they controlled nearly 90% of the market. They were first superceded by players like

BPL and Videocon in the early 1990s, who invested in brand-building and in enhancing

distribution and service channels. Then, with liberalisation came a spate of foreign

players from LG Electronics to Sony to Aiwa. The graph of top three consumer durable

giant is shown blow,

Both rising living standards, especially in urban India, and easy access to consumer

finance have fuelled the demand for consumer durables in the country. Also, the entry of

a large number of foreign players means the consumer is no longer starved for choice.

But this has also resulted in an over-supply situation in recent times as growth levels have

tapered off.

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Major Players: The major players in the consumer durables industry, operating in

different sectors such as air conditioners, washing machines, refrigerators & television

include:

Blue Star Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation

Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd. &

Thomson Ltd.

Demand/Supply: The colour television (CTV) segment of the consumer durables industry

has been hit by stagnant demand in recent times. CTV manufacturers like BPL and

Videocon have effected price cuts while others have lowered production levels in the face

of rising inventories. They have also initiated drives to clear old stocks.

The results are mixed. For instance, demand for 14-inch CTVs was hit by the reduction in

the prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has also slowed

because of the price factor. So companies like LG and Samsung are now expected to

reduce prices in the premium categories.

As for the other segments, air conditioner demand was up in recent months. In the case of

refrigerators, a chunk of the sales are still in the direct cool segment as against the frost-

free one, But replacement buyers tend to go for technologically improved models. Hence,

sales of frost-free refrigerators have grown steadily over a period of time.

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The washing machine market consists of two broad segments - semi-automatic and fully

automatic. The first accounts for a chunk of the market. In terms of loading type, top

loading machines sell in greater numbers than front-loading ones.

CONSUMER DURABLES MARKET PIE IN FY06

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COMPANY

PROFILE

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B. LG Electronics: Company Profil

Corporate Governance

Following the launch of the holding company, LG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors. This structure helps us deploy more transparent, value creating management activities that help increase corporate and shareholder value.

Management System

When LG Electronics removed the ‘Circulating Investment Structure’ of its affiliated companies through the launch of a holding company system, this enabled the holding company to take full charge of investments. Consequently, LG Electronics has been able to focus on its own businesses while increasing the overall value of the Company. This corporate governance structure has laid the groundwork for increasing managerial transparency. Through a responsible management system comprising the CEO of LG Electronics and a Board of Directors, we are taking huge steps in strengthening our competitiveness at domestic and international level in order to maximize corporate and shareholder value.

Board of Directors

LG Electronics' Board of Directors maintains independence from its management and major shareholders. Currently the Board has a total of seven directors, four of whom are outside directors. To ensure that external directors are appointed fairly and independently, the "External Director Recommendation Committee," comprising one in-house director and one external director, nominates external directors following close examination of their qualifications. These outside directors are then voted on at the next shareholders' meeting.

Outside directors are always well qualified individuals with professional knowledge and experience in key areas. Their main role is to carry out check and balance functions, as well as monitor the Company's overall management activities. They also act as objective advisors to the Company. The Board meetings take place every month, and every member is required to participate in the meeting.The board members review the meeting agenda provided by the Company management prior to the board meeting, evaluate and supervise the Company management's performance and business transactions with

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affiliated companies, and other important management issues. Since 2005, LG Electronics has given the board members an opportunity to actively participate in the Company's management activities by offering an 'On-The-Spot Management Program' that allows the members to directly visit Company business venues based both locally and abroad. The Company also encourages participation in outside director training programs that are hosted by the Korean Directors Association.

Internal

Yong Nam

Vice Chairman and CEO, LG Electronics

Read More

David Jung

CFO of LG Electronics(Executive Vice President)Director

Read More

Yu-Sig Kang

CEO of LG Corp.(Vice Chairman)Director

External

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http://www.lge.com/about/corporate/executives_YongNam.jsp

http://www.lge.com/about/corporate/executives_david.jsp

Suk-Jean Kang

Chairman of CEO Consulting GroupOutside Director

In Ki Joo

Professor of Yonsei UniversityOutside Director

Suk Chae Lee

Consultant of Taepyoungyang Lawfirm (Bae, Kim & Lee)Outside Director

Sung-Won Hong

President of JeollanamdoInnovation Agency for Strategic IndustryOutside Director

Audit Committee

To ensure complete independence from the company’s management and major shareholders, the Audit Committee is composed of three outside directors. The Committee's role is to examine various financial reports and enhance managerial transparency and fairness as supervisors. In addition, the committee members approve the appointment of outside auditors after careful review of the candidates' professionalism,

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independence, reputation, capability, ability to audit international businesses, as well as possibilities of conflict of interest associated with the Company.

In Ki Joo

Professor of Yonsei UniversityOutside Director

Suk Chae Lee

Consultant of Taepyoungyang Law firm (Bae, Kim & Lee)Outside Director

Suk-Jean Kang

Chairman of CEO Consulting GroupOutside Director

Executives Take a look at LG's corporate business and organization.

Corporate Vision LG aims to become a global leader, providing happiness for customers worldwide.

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http://www.lge.com/about/corporate/executives.jsp

http://www.lge.com/about/corporate/vision.jsp

It started as a big dream in small town of the north Indian state of Utter Pradesh -----a

township by the name of Greater Noida.

Back in 1997, it was just a piece of wilderness. Nobody, least of all the owner of a

fortune 500 company would have dared to choose it as a canvas to script a transnational

corporation’s success story in India, but, then, LG, if you go into the history of the seoul-

based company that has footprints in nearly all parts of the glove, is a different kind of an

entity altogether.

LGIL has competition yet it has managed to become one of the most admired companies

in India though innovation.

(The economic times 12 jan 2001)

LGEIL-THE NEXT INDUSTRIAL GIANT: LGIL is youngest and fastest growing

consumer durable brand. LG at the no. one slot is targeted to end the year with a turnover

of us$ 1.5 billion. After China, LG plans to make India its second largest manufacturing

hub. Today, LGIL is an US$ 1456 million behemouth, with a sprawling product range,

and market leadership in all product categories. The Indian operation of LG Electronics

in fact rank among the best three in LG Electronics world-wide.

To be sure, life was not always this good for LGEIL. The mud trail that led us to plot

no.51,Uydyog Vihar, Surajpur Kasna Road in Greater Noida was strewn with massive

potholes and road blocks

Before 1997, LG had made two concerted attempts at penetrating the Indian market.

Unfortunately, both met with miserable failure. The first was in the form of a joint

Venture with Bestavision and second a JV with a Birla Group company. For several

unaccountable reasons, both the attempts came to a naught and talks petered off as

quickly as they had started.

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They came a vital policy shift. The Government of India liberalized its economic policy

and allowed transnational corporations to set up shop in India. One of the first to respond

to this invitation was LG-Korea, a corporation that strait took the dive and this time made

the strategic decision of setting up a 100 per cent subsidiary of the Korean company in

India. This time, it did not need the support of any partners.

In March,1997, K R Kim who was the serving in panama was called to India to spearhead

the Indian operations. However no sooner was the announcement made that the business

magazine and newspapers in India started to write us off predicting a bleak future for the

company. Some went started to write us off predicting a bleak future for the company.

Some went so far as to forecast our premature demise mainly because of our earlier,

failed attempts at breaching the Indian turf. A few industry watchers also felt that our

timing was bad, as the consumer durable market in India was already saturated with

indigenous and global players, leaving no room for another entity; worst a foreign one at

that.

LGEIL-OF, BY AND FOR INDIANS : The unchallenged trend those days at most

transnational corporations was that expatriates manned all crucial functions. All the

policies were formulated at the headquarter and then unquestioningly executed at the

various branch office. This left very little elbow room for local managers to maneuver

things at their end. Consequently, none of these initiative factored in local considerations

leading to huge disconnect between what the local consumer wanted and what the

corporate office though they wanted!

In contrast, the LGIL story in India got scripted very differently from this, as it bore a

strong local imprint. In retrospect, I think, it must have made for a bold, cultural strategy

implemented with lot of internal conviction.

The strategy got vested in three crucial decisions, which have now entered into the very

fabric of our organizational cultural. Briefly, the three decision were:

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1. Indian employees would be appointed as the key decision makers at LGEIL. The role

of the Foreign Service Employees (FESs) would at best remain limited to that of

facilitators, which implied that they would co-ordinate with LG korea and provide

expertise, where needed.

2. The head of Human Resources division and the head of Sales & Marketing division

would always be Indians.

3. The Head of Manufacturing and the Head of Finance and Accounts would be FSEs but

even they would be assisted by Indian managers: who would provide key support to these

functions.

These decision became the cornerstone of LG’s operational strength in India the evident

of which can be found in the following statistics :

From a turnover of US$ 31 million in 1997, it went to US$ 583 million in 2002

and further to US$ 1456 million in the last financial year 2005

Our headcount, meanwhile has grown from 402 in 1997 to 2900 in 2005

In just over five-six years, we have shot to NO#1 in the rerfrigrators (29,4 per

cent market share); and No#1 in washing machine (30% market share) No#1 in

microwave oven(36.7% market share ) products category and No#1 in the air

conditioner (34% market share )

LGEIL POLICIES : SETTING PRECISE TARGETS: How a Korean company managed to outsmart

its foreign and Indian rivals is a story about culture change. Like the other Korean

companies that have been successful in India- Samsung and Hyundai, India’s no -

2 car producer. LG had good products and smart marketing. But LG went further

by challenging Indian work habits……negative management traits, such as

ducking challenges and tolerating excuses, Indian work habits….. negative

management traits such as duckling challenges and tolerating excuses, are

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overcome with bonus schemes that can add 80% to salaries Employee are

assessed against precise targets.

BENCHMARKING AGAINST THE BEST: Around this time, we had also

begun to realize that any exercise at setting up a KPI system was incomplete

without benchmarking our parameters against the best in the industry. We also

discovered that most companies hired external(read foreign ) consultant to handle

this job that not just charged an exorbitant fee, but also took six-seven months’

timeframe to accomplish y task, next year, use X/2 resources to accomplish y, or

better still 2y tasks. Sounds impossible? But we know the system works.

THE “PUSH” AND THE “PULL” STRATEGY: from the word go, LGIL has

had a very strong customer and sales-driven ideology. Dub is as a strategic

balance of the push and pull factors. The push came from the loyal customers. To

reinforce this vision, we made it a customary practice that any LGEIL executive,

visiting any city or branch had to first do field visit of the local market and

experience the market first hand. There were no two ways about it. The feedback

had to come straight, honest and delivered direct to each one of us. This requires

that every LG brands ambassador had to meet a few local dealers/distributors and

sell one or two products over a direct interface with the customers. Later at the

corporate managers meeting, they had to make a presentation and be quizzed on

what values customers looked for in LGEIL products could be sent back to the

R&D.

POLICY ON PRICE CUT: LG has also shaken things up on the marketing side.

It has driven prices down by 18% to 20%. Over the past two years LG has

steadily increased distribution outlets and the breadth of products ranges

STRONG AND SPEEDY EXECUTION: Strategy planning, as reiterated

above, has always been a dynamic process at LGEIL, and, Prompt execution our

hallmark.This bring prompt execution our hallmark. At LGEIL,execution also

became strong because we genuinely empowered our employees and held them

accountable for their, as well as the company eventual progress.This also

generated a strong sense of ownership in them. And secondly passion and positive

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energy kept their emotional involvement high at all times. They were

experiencing a start-up environment, which always bring out the best in

everybody while simultaneously honing their survival instincts.

PRODUCT DIVERSITY : LGEIL had a strong portfolio of products, viz CTV, air

conditioners, washing machines, refrigerators and microwave ovens, to name just a few ,

from the very beginning, we were among the few , front- running consumer durable

companies in India to command such a vast array of products. The benefits is that even if

one or two are not performing very well in the market there are others to tide us through.

In fact, there is always one product that remains on at any point of time in the year, so

there was never a rainy season.

RURAL MARKETING : By the year 2000-2001, LGEIL had a strong presence through

the length and breadth of the country. We were dong ewll in almost all metropolitan

cities, especially in the northern and eastern belts of the country although we still had

some catching up to do in the south and west

This was achieved in 2002-2003, when LGEIL emerged as the undisputed market leader.

Yet, it was hardly the reason to sit on our laurels. The problem of further growth had to

be addressed and there was this pressing need to explore and find new markets. In the

metros, although we were doing pretty well the cost of selling was too steep to enable us

to cut good profits as our competitors were also focused on developing just these

markets.

DUAL MARKETING: As would be clear from the preceding discussion, so far, we had

only incurred cost and made little profit in executing all these expansion plans so now

was the time to reap the fruits of our earlier labour and the only acceptable way of doing

that was without compromising on the quality factor. That left just one option nip corner

at the cost end.

Since this was also the only route that would not have diluted the perception of the

premium of the premium brand, the corporation started making serious efforts at cutting

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cost through product innovation. A portion of even these saving we intended to pass on to

the Indian customer.

In short, our endeavour was to try and improve our market share without denting our

profitability. We had already reduced our overheads by increase capacity. Now the next

logical steps was to attack the cost end of our production.

This LGEIL concept that was later lauded by McKinsey as Premium marketing to the

masses and was communicated to the customers in the form of a strong marketing

campaign more value at much less than the price!

With this done, the affordability of our products became the bulwark of all our marketing

campaigns. This strategy caught our competitors in the form of a strong marketing

campaign. A few reacted by announcing price cuts of their own their own, not realizing

that LGEIL was not just cutting prices we were also focusing strongly on cost innovation

at our end. So while their price cuts led to more losses and pressures on cost, ours led us

to more customers and increased profitability in the end, with this simple strategy, we

managed to kill two birds with one stone.

Some of our competitors later saw through our game plan, but by then it was too late for

them to follow suit and in any case, they still hadnot unravelled the full strategy, which

was not to cut prices uninformly across the country, but stagger them across different

segments

Very cleverly while we were launching premium products in different categories we were

also varying our pricing strategy from state to state that kept competition guessing and on

tenterhooks all the while. I remember how one MNC sought to hike its subsidy from the

parent company simply to counter our prices strategy, at the core of which lay simple

fiscal discipline measure that they too could have followed but probably couldnot

because of lack of focus or strong execution.

Time and efforts were both in our favour. And the rest as they say is history.

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LGEIL-ORGANISATIONAL STRUCTURE

As it is clear from the figure Except for the CEO, VP-Manufacturing and VP-finance &

Accounts, all other position were held by the Indians.

This kind of people planning was deliberate and the result of a carefully 1thought-out

strategic intent, initially, when we recruited people, we took them in their respective area

of expertise, but onse the company stabilized, we started rotating them as per their

request, inclination, acquired skills and expertise.

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CEOExpatriate- Korean

VP(Human Resource)

VP(Sales & Marketing)

VP(Manufacturing

Expatriate- Korean )

VP(Finance & Accounts

Expatriate-Korean)

GMManufacturing

GMManufacturing

STRONG EMPLOYEE FOUNDATION : the enormous speed at which LGEIL grew

in those days would possible without logical and rational system. The management knew

they had to do something remarkable different from competition. So we set about

recruiting people, who among other things, were perceived to be high on:

Physical energy

Emotional energy

Next, they were provided with:

1. a big vision

2. Melt-ins so that all decisions could be made by consensus and nothing got

unilaterally imposed on any one

3. each was given absolute freedom within certain pre-defined parameters and held

accountable for results.

Meanwhile, the tools that the employees were encouraged to use mainly comprised of;

1. creating total transparency relating to the company’s performance including a

discussion of sensitive issue , such as profitability

2. Sharing with them news and details of the future line-up of our products

3. Showing genuine respect and acceptance of everybody ideas and suggestions

4. Resposing total trust and faith in their intention endeavours and capabilities

5. Building strong communication links (these details are discussed in a later

chapter )

Proactively sorting out employee grievances, even when immediate solutions were

not within as issue went beyond the scope and policies of the originations

LGEIL : LOGO Any attempts at understanding LG would be incomplete ,without

understanding LG Logo: Life is Good. Our vision, our corporate philosophy and our core

values are all encapsulated in this simple logo. The circle in the logo represents the globe,

i.e. the full reach or our aspiration to emerge as a global company. It also implies the face

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of a smiling customer, conveying that we are extremely customer-focused, or that we

represent a world that is futuristic youthful and humane.

The bull’s eye on the circle represent the organization ‘s single minded focus on goals

and determination to achieve results with a smile. The white space deliberately left at the

upper right end stand for of creativity. The red color conveys friendliness and LG’s

commitment to quality, while the gray stands for technology and reliability.

Products or other exterior manifestations of a company to my mind do not reveal its true

character which is manifest in its value system, practiced philosophies and accepted

norms. Products people system are all outcome of this core value system and this is what

the LG logo conveys.

LGEIL is like a gushing, turbulent river, cascading at full length and speed from a rugged

mountain. A powerhouse of raw energy, it resounds unilaterally but at times collide head

on with each other but that is ok,so strong bulwarks on either direction to contain all the

roaring action of mightly river.

LG Electronics : vision

LG Electronics vision for the 21st century is to become a true global digital leader

through fast growth and fast innovation and to be known as a company who can make its

worldwide customers happy through its innovative digital products and services. LG

Electronics has set its mid-term and long-term goal to rank among the top 3 electronics,

information, and telecommunication firms in the world by 2010. We aim to utilize our

core capabilities of product leadership, market leadership and people leadership and

enhance our corporate culture of team work and fun workplace to achieve our mission of

becoming "2 by 10", that is, double our sales volume and profit by year 2010.

LGEIL – Product Portfolio

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Flat Panel Display

GSM IT Products TelevisionsRefrigerators

Washing Machine

Air Conditioner

Microwave Ovens

Vacuum Cleaner

Digital Audio / Video

Internal Culture

As we all know requirement of trained and experienced Professional with the desired mindset is the need of the hour for any Organization to Survive and Grow in this competitive environment.

To cope with the growing expectations of business and in order to give the organization a

competitive edge to the business we in LG have streamlined the whole system by

integrating the HR fundamentals with Information Technology and have adopted some

practices unique to LG.

LG as a brand and a market leader in India attracts candidates in hordes and its Industry

leadership status serves as a major factor in attracting employees. Therefore LG has the

ability to hire the best in the industry.

Once these candidates are hired, they undergo and exhaustive induction programmed for

duration of 14 days under which the candidate is acquainted which each and every aspect

of the organization. A thorough integration with HR & Business Processes takes place

and the formulation of a KPI is done within three days of taking the candidate onboard.

Customer Department/Vendor Department interaction also takes place.

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http://www.lgindia.com/Product/Products-dav.aspx?catid=45


http://www.lgindia.com/Product/Products-Listing.aspx?CatID=79&subcatname=Vacuum%20Cleaner&categoryname=Vacuum%20Cleaner


http://www.lgindia.com/Product/Products-mwo.aspx?catid=13


http://www.lgindia.com/Product/Products-ac.aspx?id=58



http://www.lgindia.com/Product/Products-wm.aspx?id=55


http://www.lgindia.com/Product/Products-ref.aspx?id=50


http://www.lgindia.com/Product/Products-Television.aspx

http://www.lgindia.com/Product/Products-it.aspx?id=67

http://www.lgindia.com/Product/Products-Listing.aspx?CatID=71&subcatname=GSM&categoryname=GSM

http://www.lgindia.com/Product/products-flatpanel.aspx?id=213



http://www.lgindia.com/Product/Products-Listing.aspx?CatID=71&subcatname=GSM&categoryname=GSM

http://www.lgindia.com/Product/Products-it.aspx?id=67

http://www.lgindia.com/Product/Products-Television.aspx







LG as an organization takes pride in the fact that they have the highest manpower

productivity and the lowest manpower cost in comparison to the industry. Infect LG is

benchmarked in terms of manpower costing.

Employees are given a chance to visit Korea on completion of...years in LG. Apart from

this LG also has a family ambassador programme where a dedicated mentor goes to the

workers house and talks to his family, their problems etc. and tries to make their

Situation better. All workers are served lunch along with the other senior employees so

that no demarcation is made. Infect lunch is first served to workers and then to the white

collar employees. On the first Monday of every month the workers meet the MD and 50

workers amongst of them get awards for outstanding performance.

Corporate Social Responsibility (CSR):

With the advent of globalization in India, the concept of Corporate Social Responsibility

has emerged as one of the most important aspects of corporate behavior. Acknowledging

this responsibility is crucial for an organization's sustainable development and future

access to the global market. A definite corporate social responsibility(CSR) plan has

therefore not only become an integral part of an organization's brand building strategy,

but has also emerged as an important tool to enhance the organization's credibility, attract

potential investors and clients and employ the best of industry talent.

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As a leading corporate in India, we at LG believe that corporate contribution to society

when guided by self-interest results in long term goodwill building, and have therefore

endeavored to assume responsibility for the needs of its people, the environment and the

society. We have consistently looked beyond its immediate business environment to

address larger societal issues. This concern springs from the belief that a true corporate

vision must embrace the wider community rather than just shareholders, customers and

suppliers. At the same time, there is nothing idealistic about LG's CSR vision, nor is it in

conflict with hard-headed business sense. It is purely an understanding on LG's part that

the time, resources and in-house professional expertise invested in social development

projects pay rich dividends to the company and the communities in which it operates.

Therefore at LG the message is clear: creating profits can and should go hand-in-hand

with generating goodwill.

A slew of numerous initiatives have been undertaken by LG ever since its inception in

India. The company has been actively involved in providing social benefits to the

disadvantaged sections of the society. We also have a focused plan for providing health

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services to the under privileged children, undertake animal health care and enhance

professional skills of the unemployed youth.

LG India has worked jointly with Prayas, a Delhi-based NGO by undertaking

campaigns / activities for the welfare and upliftment of Underprivileged Street and slum

children and providing those services in the field of education, health care, shelter,

vocational training and other rehabilitation programmes. The company also tied up with

HELPAGE India, the country's largest voluntary organization working for the cause and

care of disadvantaged older people.

LGEIL also takes care of 24 villages around Greater Noida out of which six have been

adopted formally. The company has on its pay roll three doctors who visit these villages

daily and offer Free Medical Care, which comprises of free check ups and a free

distribution of medicines.

LG's commitment to contribute substantially to the community led to the formation of the

'Tinkha,' a community development club consisting of 10 people. It recently organized

Blood Donation Camp where 172 employees donated blood in one day.

- 28 -

FUTURE CHALLENGES AND TRENDS

- 29 -

C. Future challenges and trends

Companies like LG Electronics are exploring the online route to grow their business. It

plans to connect around 1,700 direct dealers and distributors to its recently launched B2B

portal, www.lgdealernet.com as part of its drive to become an integrated online business

undertaking by the end of 2003.

In the CTV segment, a number of new and innovative products are being launched.

Technological upgradation and pricing are the key drivers in this highly competitive

market.

Even in the case of washing machines and refrigerators, new models are being developed.

In refrigerators, companies like Electrolux (which has four established brands in

Electrolux, Kelvinator, Voltas and Allwyn) are specially targeting high-end consumers.

The demand for fully automatic washing machines is expected to increase over semi-

automatic ones. Also, second-time buyers are likely to go in for larger machines.

Research and development is expected to be a key issue in future as players try to keep

pace with changing consumer preferences and expectations as well as the ever-growing

competitio

FUTURE PLAN

Hyderabad, Aug. 5 Customers of LG branded products can look forward to better service from the electronic giant in the near future.

LG India has decided to put in operation at least 24 company-owned Direct Service Centres (DSCs) across the country in the next one year.

- 30 -

The company, which reported a turnover of Rs 9,250 crore last year, has established two DSCs in Gurgaon and Bangalore. More centres will come up in Hyderabad and other major cities soon, said Dr Yasho V. Verma, Director (HR & MS).

LG India recently launched the 2-1-1 customer service concept. The idea is to provide fast and reliable service to the customer, said Mr Prashant K. Das, Regional Manager South (AP & Karnataka) operations.

For the customer it means an engineer will call a customer within two hours of a complaint registered at the call centre. He will give a specific time to attend within one hour and once the complaint is understood, the service or rectification would be completed in one day, Mr Das explained.

The novel customer service is now available in select centres in the country where LG has a strong presence, including in Hyderabad. It would be expanded soon, he said.Another effort launched by the company to bolster customer care is tie-ups with ITIs (Industrial Training Institutes) to train technicians. With an agreement from 22 ITIs (including 3 in Andhra Pradesh), about 2,000 such professionals are being hired by LG, Dr Verma said.

The company is also training the faculty in these institutes so that the training process is expedited. This exercise would be continued and extended in the near future.

- 31 -

OBJECTIVE

- 32 -

D. OBJECTIVES OF THE STUDY

The consumer durable market has grown considerably in last few years in India. With the

growth, the level of competition has grown with the entry of new players & existing

players expending their product portfolio. Literally every day companies come up with

new attractive offers to grab the better share of the market. The challenge is not only to

get the new customer but also to continue with the existing customers.

The objectives are :

1. Identify the Dealer as well as Consumer perception about the LG products with respect

to its competitor.

2. To suggest some differentiating strategies like (Product differentiation strategy,

Price differentiating, Service differentiating, Channel Differentiation) to stay ahead in

competition

for LG .

3. To identify the factor affecting the purchasing decision like

(price,promotion,Advertising)

4. To identify the aesthetics and USP’s of other competitive brands.

- 33 -

IMPORTANCE OF STUDY

- 34 -

E. Importance of Study

As far as the topic Comparative Marketing Study of LG Electronics vis-à-vis its

competitor is concerned, The project study follow Consumer as well as Dealer perception

(attitude) Toward LG products (CTV, Refrigerator, AC, Washing Machine) with respect

to other competitor products.

In this study the research work is to find out the Strengths, Weakness, Opportunities and

Threats (SWOT) Analysis of LGEIL and this will help LG to improve its weak areas.

These are mention blow-

1. Display Share Tracking: Display share tracking helps us to find out these

information

1.1 It helps to reveale potential demand of each product.

1.2 With the help of display tracking we can find out the highest selling product and lowest selling product in the market.

1.3 It helps in tacking decision during the line expansion and line pruning.

2. Consumer perception: This is done with the aim of capturing the true words and

emotions of consumer, and in turn using this information to improve or developed

products or to determine people attitude toward the products.

2.1 It helps company to get feedback from consumer.

2.2 It prevents the undervaluation of competitor and we can find the strength

and Weakness of our products

2.3 This helps us to stay ahead in competition.

2.4 It encourage value creating investment.

2.5 It help in maximizing the consistency of value creation.

2.6. Measuring performance

- 35 -

2.7 It helps us for market share analysis.

So as to conclude I can say this study is more suitable for LG to compete and survive

in global market.

LIMATIONS OF STUDY

- 36 -

F. Limitations of the study:

1. The study was limited in its scope because of the relatively short time available (Three

months ) for completing the whole study including literature survey, development of

hypothesis, collection of data, analysis of data and writing the draft report. Due to

constraints of time and opportunity, the sample for the study had been collected from

Chandigarh and Mohali from few selected dealers. For the sake of simplicity few variable

were taken into account

2. The Data which has been collected from the Dealer and Consumer might not be very

correct to tack strategic decision as they may hide a lot of information

3. Lack of interest in giving responses by Dealer and Consumer.

4. The sample size which I have taken is too small to make a universal statement.

5. The final conclusion can be affected by some of the extraneous variables like

Promotional offer and new launch of product.

6.Lack of sufficient information about the company because we cannot access

confidential data of company.

7. Lack of the instruments to find out the reasonable outcome.

- 37 -

8. Lack of proper experience.

9. Though the study will represents the position of LG in Chandigarh and Mohali. Due to

small sample size, the finding may not be a true representative and it cannot be

generalized. However it will provide a good base for future study and may have wider

application in future.

- 38 -

RESEARCHMETHODOLOGY

- 39 -

4. Proposed Methodology:

a. Research Design: Exploratory research study

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in

procedure. The method of research utilize in exploratory research are survey methods of

all kinds, including comparative and co relational methods. My research is comparative

in nature so I am using exploratory research study

b. Method of Data collection:

In order to study the consumer perception regarding the uses of LG Products with

respect to other companies :- Samsung, Videocon, Haier in NCR, both primary and

secondary data has been collected.

The study proposed to collect Primary data through questionnaire using survey

method. So as to give a precise, accurate, realistic and relevant data.

The secondary data as it has always been important for the completion of any

report provides a reliable, suitable, equate and specific knowledge. The data is

collected from various magazines, fact sheets newspapers and websites

published by the company.

- 40 -

c. Sampling Technique: The study proposed to use convenience sampling.

This sampling methods involves purposive or deliberate selection of particular unit of the

universe for constituting a sample which represents the universe. In this research I will

secure data from consumer durable buyers which are homogeneous in nature.

d. Sample Area: In order to study the consumer perception as well as dealer perception

of LG products with respect to its competitor, the data for the study has been collected

through a survey of people residing in NCR.

e. Sample Size:

Consumer sample size: 100

Dealer sample size: 20

f. Statistical Technique: The data is analyzed uses percentage, Ranking and analysis of

variance (ANOVA) method and finally shown with the help of BCG metrics. The

respondent in Consumer questionnaire was asked to indicate their preferences on a five

point -Likert Scale. They were asked to choose among the option Excellent, Very Good,

Good, Poor and Very Poor regarding various statement. The data was processed and

analyzed using means, standard deviation and f-value to present the result of the study.

- 41 -

g. Proposed Questionnaire:

Questionnaire for Consumer: It consists of data pertaining to the activities, interests and

opinions relating to purchase behavior, socialization, brand opinion and the like. A five-

point scale ranging from 1 – strongly disagrees to 5 strongly agree is used.

Parameters measuring the consumer perception are

Price

Packaging

Product Features

Brand name

Quality

Design

Durability

After sales service

- 42 -

Questionnaire for Dealer: The questionnaire for dealer has been used to find out

following facts

How many brands products a dealer is selling.

How many models of each brand they are displaying.

Highest selling brand of each company

Level of preference of LG with respect to other brands.

Is customer is ready to pay premium price or not.

The parameters on which consumer makes his purchase decision

Annual estimated sales

Dose customer come with prior knowledge/information about the product or not

What is the most acceptable size of these products CTV, AC, Refrigerator and

Washing Machine

What are the different complaints faced by the consumer

- 43 -

Review of Literature

While Research on consumer durable is extensive in developed countries, Little has been

done in this area in developing economies. Consumer durable sector in India is not

mature enough and its having huge opportunities so companies are concentrating on

advertising and promotion.

Research which has been conducted by Business world at national level in year(2007) in

major Cities i.e. Bombay, Bangalore, Calcutta, Chennai and Delhi. The aim of the survey

was to find out the market leader in CTV, Washing Machine, Refrigerator and AC

Segment. The survey was conducted through structured questionnaire followed by

personal interview. The Research brings out one point very sharply: there is no single

brand that has managed to delight customers in all the categories. A brand may excel in,

say, refrigerators, but turn in a sub-par performance in another catagory like air-

conditioners.

The second important finding is that the difference between the best and the also-rans

has narrowed even more. The difference between the topper and the number four or five

in any category is mostly in single digit percentage points.

Finally, the survey also brings out how companies have excelled in one area of product or

service delivery, only to falter in another. There are brands which score extremely high

on product quality - but fall way behind in complaint management. And vice versa.

Check out the category tables (page 48 to 57) to get a handle on how each brand fares on

each parameter.

And now for some of the other findings. Almost two-thirds of the customers rate the

durable brands they own as excellent or very good. This phenomenon is common across

all categories. By and large, customers in Mumbai and Chennai give high ratings to the

brands they own. However, customers from Bangalore are significantly more

circumspect.

- 44 -

FINDING AND ANALYSIS

- 45 -

Analysis 5.Data and Interpretation

An attempt has been made to compare the four consumer durable brands namely LG,

Samsung, Videocon and Haier, I had picked up four different product categories - frost-

free refrigerators, Colour televisions of 21" or bigger size, air-conditioners, and washing

machines, by understanding the perception of 100 Consumers and 60 Dealers, So as to

conclude which consumer durable brand is more suitable to compete and survive in the

global market.

The survey hasn't merely measured the customer satisfaction for different brands but has

actually ranked brands on the basis of customer delight. The difference is simple. Almost

every big brand in the market today meets a certain threshold level of product and service

performance. But certain brands exceed customer expectations. These are the brands

which delight the customer, not merely satisfy him

DEALERS SURVEY ANALYSIS

DEALERS SURVEY ANALYSIS

a. Intorduction

In order to understand dealers’ perception about consumer behavior towards purchase of

refrigerators, ctv, washing machine and ac a survey was on dealers. The survey was

conducted on small scale. Due to time constraint, survey was conducted on 15 dealers of

each products.rs.

- 46 -

The data collection instrument was a questionnaire which consisted of 14 questions on

each product and which measured different attributes

b. Analysis of Survey<Refrigerators>

b1. How long are customers in the retailing of refrigerators? (Please Tick)

Response:

ATTRIBUTES NO. OF RESPONDENTS

% AGE OF RESPONDENTS

< 1 Year 2 101 < 2 Year 4 20

2 < 3 Year 6 30

3Years or Above

8 40

- 47 -

NO. of RESPONDENTS

2

4

6

8

< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been

in retailing of refrigerators. As can be seen from the pie chart that 60% of the dealers

have been in retailing of refrigerators for than 3 years and 40% have an experience more

than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2

yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs

but less than 2yrs. While 10% of the total respondents have been in the retailing of

refrigerators for less than 1yrs.

This particular aspect was considered in the research because after knowing about the

work experience of different dealers we can interpret the kind of perception about

customer behaviors

B2.. Which of the following brands of refrigerators, You are dealing in? (Please Tick)

Response:

BRAND NO. of RESPONDENTS

% age of respondents

LG 19 93.33Haier 11 76.67Samsung 17 86.67Videocon 13 76.67

- 48 -

Any Other 10 36.67

The above given graph tells us how frequently respondents (dealers) deals in above given

brands of refrigerators. 93.33% of dealers are preferred to deal LG brand while 37% of

dealers are preferred to deal with other brand (BPL, Allwyn etc.). Samsung is second

most brand preferred by dealers.

As we can see from the graph that Samsung, LG, Videocon are most likely brand among

the dealers whereas Godrej, BPL, Allwyn are less preferred by dealers than other brands.

B3.. To what extents, following brands of refrigerators are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Response:

Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0

ATTRIBUTES RESPONSE PREFERANCE LEVEL

LG 17 3.56Samsung 14 3.47Haier 12 2.70

- 49 -

Videocon 17 3.17

Brands of Refrigerator prefered by customer

0

5

10

15

20

25

LG Samsung Haier Videocon

RESPONSE Preference LEvel

The above given graph gives us the information regarding the preference level given to

different brands by customers with preference level of ‘0’ for the brand that is not

preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’

standing for that brands which are most likely by customers. As we can see from the

graph that LG is first preference by the customers followed by Samsung that is second

most preferred by customers. While Haier is less preferred by customers.

B4. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature

Feature Rank Order

a) Space _________

b) Front Door Design _________

c) Cooling Effect _________

d) Colour _________

e) Brand Name _________

- 50 -

Response:

ATTRIBUTES Rank order Space 2Front Door Design 5Cooling Effect 3Colour 4Brand Name 1

This helps company to concentrate on the most important factor so that they company

could get the competitivd edge over competitor.

B5.. In which season, customer mostly purchase refrigerator? (Please Tick)

Response:

Attributes No. of DealersOff Season

16Summer Season

84Any Other

00

- 51 -

Season in Which Customer Mostly Purchase Refrigerator

16%

84%

0%

Off Season Summer Season Any Other

As above pie-chart tells us about in which season customer mostly purchase refrigerator

i.e. in which season most of the sales happen. As we can be seen from the pie chart that

84% of dealers say that customers purchase refrigerators in summer while 16% of dealers

say that customers purchase refrigerators in off season.

B6. At which visit, customer generally finalize his/her decision for buying a refrigerator?

Response:

Attributes No. of DEALERS At Fist Visit 60

At Second Visit 33.33

At Third Visit 06.67

Any Other 00

- 52 -

Visit In Which Customer Finalize their Decision

60%

33%

7% 0%

At First Visit At Second Visit At Third Visit Any Other

This chart tells us about the customers’ willingness towards purchase of refrigerators. As

can be seen from the pie chart that 60% of the dealers said that customers finalize that

their decision towards purchase of refrigerators in first visit to showroom and 33% of

dealers said customer does second visit while 7% of dealers said customers need third

visit to finalize their decision.

B7. Does customer come with prior knowledge/information about particulars brands of refrigerator?

a) Yes b) No

Response:

ATTRIBUTES NO. of DEALERSYes 54No 46

- 53 -

Prior Knowledge/Informations

54%

46%

Yes No

As above pie-chart tells us about prior knowledge about refrigerators among the

customers. As we can be seen from the pie chart that 54% of dealers say that customers

come with some information or knowledge about refrigerator while 46% of dealers say

that customers doesn’t have prior knowledge about refrigerators.

B8.. When customers mostly visit customersr showroom for buying refrigerator?a) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:

Attributes No. of DEALERSDuring Exchange Offer 50

During Gift Option Offer 23

During discount Offer 27

Any Other 00

- 54 -

Customer Mostly Visit Showroom

50%

23%

27%0%

Exchange Offer Gift Option Discount Offer Any Other

B9.. What is the most acceptable size in refrigerator now days?a) 165 L e) 365 L b) 210 L f) 410 L c) 310 L g) 600 L d) Any Other (Please Specify) ___________________________

Response:

Attributes No. of RESPONSE AVERAGE SCORE165 L 20 0.67

210 L 21 0.70

310 L 21 0.70

365 L 11 0.37

410 L 11 0.37

600 L 06 0.20

Any Other 00 00

- 55 -

Acceptable Size in Refrigerator

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

165 L 210 L 310 L 365 L 410 L 600 L

Size of Refrigerator

Ave

rag

e S

core

B10. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)

a) Television ________ e) Radio ________

b) Newspapers ________ f) Magazines ________

c) Pamphlets ________ g) Internet ________

d) Trade Shows ________

Response:

Attributes RankTelevision 01

Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04

Internet 07

- 56 -

B11. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment

Modes of payment Rank

a) Cash in Full _________

b) Installments Through _________ Cash

c) Cheque _________

d) Installments Through Cheques _________

e) Credit / Debit Card _________

Response:

Attributes RankCash in Full 1

Installments Through Cash 3

Cheque 4

Installments Through

Cheques 2

Credit / Debit Card 5

- 57 -

c. Analysis of Survey<Color Television>

c1. How long are Dealer in the retailing of CTV? (Please Tick)

Response:



< 1 Year 2 101 < 2 Year 4 20

2 < 3 Year 6 30

3Years or Above

8 40

NO. of RESPONDENTS

2

4

6

8


- 58 -


in retailing of CTV. As can be seen from the pie chart that 60% of the dealers have been

in retailing of CTV for than 3 years and 40% have an experience more than 2 yrs but less

than 3yrs same i.e. they have been into this business for more than 2 yrs but less than

3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs.

While 10% of the total respondents have been in the retailing of CTV for less than 1yrs.



customer behaviors

C2. To what extents, following brands of CTV are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Response:


ATTRIBUTES RESPONSE PREFERENCE LEVEL

LG 14 3.56Samsung 17 3.98Videocon 12 3.17Haier 9 2.67

RESPONSE

LG Samsung Videocon Haier

- 59 -





graph that Samsung is first preference by the customers followed by LG that is second

most preferred by customers. While Haier is less preferred by customers

C3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank

o Price ……..o Packaging .…….o Product Features …….o Brand Name …….o Product Quality …….o Product Design . ……

Parameters Rank order Price 1Packaging 6Product Features 4Brand Name 3Product Quality 2Product Design 5

C5. At which visit, customer generally finalize his/her decision for buying a CTV?

Response:




- 60 -

Any Other 00


60%

33%

7% 0%


This chart tells us about the customers’ willingness towards purchase of CTV. As can be

seen from the pie chart that 60% of the dealers said that customers finalize that their

decision towards purchase of CTV in first visit to showroom and 33% of dealers said

customer does second visit while 7% of dealers said customers need third visit to finalize

their decision.

C6. Does customer come with prior knowledge/information about particulars brands of CTV?

e) Yes b) No

Response:

ATTRIBUTES %age of DEALERSYes 54No 46

- 61 -


54%

46%

Yes No

As above pie-chart tells us about prior knowledge about CTV among the customers. As

we can be seen from the pie chart that 54% of dealers say that customers come with some

information or knowledge about CTV while 46% of dealers say that customers doesn’t

have prior knowledge about CTV.

C7. When customers mostly visit customersr showroom for buying a CTV?b) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:

Attributes %age of DEALERSDuring Exchange Offer 50



Any Other 00

- 62 -


50%

23%

27%0%


C8. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)

e) Television ________ e) Radio ________

f) Newspapers ________ f) Magazines ________

g) Pamphlets ________ g) Internet ________

h) Trade Shows ________

Response:Attributes Rank

Television 01

Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04

Internet 07

- 63 -

C9. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment


f) Cash in Full _________

g) Installments Through _________ Cash

h) Cheque _________

i) Installments Through Cheques _________

j) Credit / Debit Card _________

Response:



Cheque 4


Cheques 2


- 64 -

d. Analysis of Survey<AC>

d.1. How long are Dealer in the retailing of AC? (Please Tick)

Response:



< 1 Year 2 101 < 2 Year 4 20

2 < 3 Year 6 30

3Years or Above 8 40

NO. of RESPONDENTS

2

4

6

8


This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of AC. As can be seen from the pie chart that 60% of the dealers have been in retailing of AC for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of AC for less than 1yrs. This particular aspect was considered in the research because after knowing about the work experience of different dealers we can interpret the kind of perception about customer behaviors

- 65 -

D2.. To what extents, following brands of AC are preferred by customers?

(Mark the appropriate preference level by ticking against respective brand)

Response:



LG 17 3.85Samsung 14 3.47Haier 12 2.7Videocon 17 3.17

RESPONSE

LG

SamsungSony

Videocon





graph that LG is first preference by the customers followed by Samsung that is second


- 66 -

D3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank



D4. At which visit, customer generally finalize his/her decision for buying a AC?

Response:




Any Other 00

- 67 -


60%

33%

7% 0%


This chart tells us about the customers’ willingness towards purchase of AC. As can be

seen from the pie chart that 60% of the dealers said that customers finalize that their

decision towards purchase of AC in first visit to showroom and 33% of dealers said

customer does second visit while 7% of dealers said customers need third visit to finalize

their decision.

D5. Does customer come with prior knowledge/information about particulars brands of AC?

f) Yes b) No

Response:


- 68 -


54%

46%

Yes No

As above pie-chart tells us about prior knowledge about ACamong the customers. As we

can be seen from the pie chart that 54% of dealers say that customers come with some

information or knowledge about AC while 46% of dealers say that customers doesn’t

have prior knowledge about AC

- 69 -

D6.. In which season, customer mostly purchase AC? (Please Tick)

Response:

Attributes No. of DealersOff Season

16Summer Season

84Any Other

00


16%

84%

0%


As above pie-chart tells us about in which season customer mostly purchase AC i.e. in

which season most of the sales happen. As we can be seen from the pie chart that 84% of

dealers say that customers purchase AC in summer while 16% of dealers say that

customers purchase refrigerators in off season.

- 70 -

D7. When customers mostly visit customersr showroom for buying a AC?

c) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:




Any Other 00


50%

23%

27%0%


- 71 -

D8. Below are different modes of promotion. Please rank following modes from 1

to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)

i) Television ________ e) Radio ________

j) Newspapers ________ f) Magazines ________

k) Pamphlets ________ g) Internet ________

l) Trade Shows ________

Response:


Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04

Internet 07

D9. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment


k) Cash in Full _________

l) Installments Through _________ Cash

m) Cheque _________

n) Installments Through Cheques _________

o) Credit / Debit Card _________

- 72 -

Response:Attributes Rank

Cash in Full1

Installments Through Cash 3Cheque

4Installments Through Cheques 2Credit / Debit Card

5

e Analysis of Survey<Washing Machine>e1. How long are Dealer in the retailing of Washing Machine? (Please Tick)

Response:



< 1 Year 2 101 < 2 Year 4 20

2 < 3 Year 6 303Years or Above

8 40

NO. of RESPONDENTS

2

4

6

8


- 73 -


in retailing of Washing Machine. As can be seen from the pie chart that 60% of the

dealers have been in retailing of Washing Machine for than 3 years and 40% have an

experience more than 2 yrs but less than 3yrs same i.e. they have been into this business

for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of

more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the

retailing of Washing Machine for less than 1yrs.



customer behaviors

e.2. To what extents, following brands of Washing Machine are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Response:



LG 14 3.56Samsung 17 3.47Sony 12 2.7Videocon 17 3.17

RESPONSE

LG

SamsungSony

Videocon

- 74 -





graph that Samsung is first preference by the customers followed by LG that is second


e.3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank



E4. At which visit, customer generally finalize his/her decision for buying a Washing Machine?

Response:




Any Other 00

- 75 -


60%

33%

7% 0%


This chart tells us about the customers’ willingness towards purchase of Washing

Machine. As can be seen from the pie chart that 60% of the dealers said that customers

finalize that their decision towards purchase of Washing Machine in first visit to

showroom and 33% of dealers said customer does second visit while 7% of dealers said

customers need third visit to finalize their decision.

- 76 -

E5. Does customer come with prior knowledge/information about particulars

brands of Washing Machine?g) Yes b) No

Response:



54%

46%

Yes No

As above pie-chart tells us about prior knowledge about Washing Machineamong the

customers. As we can be seen from the pie chart that 54% of dealers say that customers

come with some information or knowledge about Washing Machinewhile 46% of dealers

say that customers doesn’t have prior knowledge about Washing Machine.

- 77 -

E6. When customers mostly visit customersr showroom for buying a Washing

Machine?d) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:




Any Other 00


50%

23%

27%0%


- 78 -

E7. Below are different modes of promotion. Please rank following modes from 1


m) Television ________ e) Radio ________

n) Newspapers ________ f) Magazines ________

o) Pamphlets ________ g) Internet ________

p) Trade Shows ________

Response:


Newspapers 02

Pamphlets 06

Trade Shows 03

Radio 05

Magazines 04

Internet 07

E8. Please rank each of the following” modes of payment” from 1 to 5 opted by customers.Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment


p) Cash in Full _________

q) Installments Through _________ Cash

r) Cheque _________

s) Installments Through Cheques _________

t) Credit / Debit Card _________

- 79 -

Response:

Intorduction:

Consumer survey has been completed on four brands namely LG, Samsung, Videocon

and Haier by taking four products CTV, Washing Machine, Refrigerator and AC.

Customers were administered a structured questionnaire that covered their entire

relationship with the consumer durable company, including an assessment of overall

attitudes and loyalty, as well as specific aspects of the relationship, starting from

purchase experience, dealership, product features, quality, design and performance, after-

sales service, complaint management and resolution, and advertising.

As has been highlighted above, the approach has been to measure the brands on their

ability to delight their customers on the perceived quality of products and service, and not

just to satisfy them. Thus, the numbers and the rankings are based on the percentage of

customers who have given an excellent or a very good on the relevant parameters (which

are the top two boxes on the 5-point scale of excellent, very good, good, Poor & Very

poor). I also looked at those giving a fair or poor to arrive at the extent of dissatisfaction

with any brand. Based on their answers, I first mapped out the total customer experience

index and also the overall loyalty index. The customer delight index was derived by

taking the mean of the two indices.

The questioning aimed to find out Which brand customers like and why they like that

brand only.and their attitudes and practices around them. Then more particular questions

were asked about technology in everyday life

- 80 -



Cheque 4


Cheques 2


16 60 14 6 4

28 50 12 7 3

13 35 14 27 11

8 34 16 17 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Consumer Quality Rating Chart

Excellent Very Good Good Poor Very Poor

23 57 15 5

19 68 13

12 25 14 38 11

15 24 6 30 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Consumer Features Rating Chart for CTV


- 81 -

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

LG

Samsung

Vediocon

Haier

Conumer After Sales Service Rating Chart For CTV

Excellent Veryood G Good Poor Very Poor

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

LG

Samsung

Vediocon

Haier

Conumer Design Rating Chart


Refrigerator

- 82 -

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Consumer Quality Rating Chart

Excellent Very good Good Poor Very Poor

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Conumer Features rating Chart


- 83 -

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

LG

Samsung

Vediocon

Haier

After Sales Service Rating


- 84 -

- 85 -

Washing Machine

15 39 47 9

14 38 43 5

11 31 15 32 11

7 24 14 30 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Consumer Rating on Quality

Excllent Very Good Good Poor Very Poor

15 39 47 9

14 38 43 5

11 31 15 32 11

7 24 14 30 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Conumer Design Rating Chart


- 86 -

15 39 47 9

14 41 40 5

11 51 15 12 11

7 24 14 30 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier


10 20 33 9 28

14 38 48

11 15 41 22 11

7 24 14 30 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier


Customer experience index is the composite of his total experience with the brand, from product quality to after sales service.

Loyalty index is a composite measurement of the proportion of consumers who will buy the product again and will also recommend it.

The delight / dissatisfaction indices are derived by finding the mean of the experience and the loyalty indices. The delight indice measures only the people who rated their product better than 'good'. The dissatisfaction index measures only the people who rated the product as less than 'good'.

- 87 -

The loyalty stakes looks at only the 'most loyal' and the 'most likely to defect', not the people in between.

- 88 -

- 89 -

AC

26 60 14

20 50 20 7 3

13 35 14 27 11

8 34 16 17 25

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier


0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Features chart

Excellent

Very Good

Good

Poor

Very Poor

24 53 20

23 50 20 7

13 35 14 27 11

13 34 16 17 20

0% 20% 40% 60% 80% 100%

LG

Samsung

Vediocon

Haier

Excellent

Very Good

Good

Poor

Very Poor

- 90 -

5 4 3 2 1

31 55 10 4

19 47 21 7 5

13 35 14 27 11

11 37 13 17 22

0% 20% 40% 60% 80% 100%

Rating

LG

Samsung

Vediocon

Haier

After Sales Service Chart


- 91 -

- 92 -

After showing the diagram of the all four product analysis of variance is also used

perform the SWOT analysis of these four brands with the help of mean and standard

devialtion

CTV

Mean Std. Deviation Std. Error Lower Limit Upper LimitQuality LG 3.78 .927 .093 3.598 3.962 Samsung 3.93 1.076 .108 3.72 4.4142V/C 3.12 1.277 .128 2.869 3.371

FeatureLG 3.98 .838 .083 4.143 3.817Samsung 4.08 .567 .057 3.948 4.172V/C 2.96 1.41 .114 2.736 3.184

After Sales Services

LG 3.92 .762 .076 3.771 4.068Samsung 4.14 .613 .063 4.016 4.264V/C 2.83 1.216 .121 2.592 3.068

DesignLG 4.16 .663 .066 4.036 4.29Samsung 3.63 1.012 .101 3.432 4V/C 2.75 1.341 .134 2.642 3.012

Refrigerator

QualityLG 6.38 2.391 .239 5.912 6.848Samsung 3.98 .633 .063 3.857 4.103V/C 3.09 1.115 .111 2.287 3.307

featuresLG 3.81 .935 .094 4.120 3.837Samsung 3.84 .663 .066 3.710 5.133V/C 2.97 1.414 .141 2.69 3.24 After Sales Services

- 93 -

Lg 3.97 .956 .096 3.78 4.158Samsung 3.56 1.012 .101 3.363 3.757v/c 3.02 .875 .078 1.5 4.548Design LG 3.81 .926 .093 3.62 3.992Samsung 3.70 .736 .074 2.25 5.950Videocon 3.04 .635 .063 1.80 4.27

Washing Machine

QualityLG 3.90 .678 .068 2.57 5.232Samsung 3.61 .935 .094 1.77 5.452V/c 3.00 1.232. .123 2.759 3.241

FeaturesLG 3.90 .678 .078 2.38 5.42Samsung 3.24 1.246 .124 2.97 3.48V/c 3.39 .935 .094 1.548 5.232DesignLG 3.90 .876 .087 2.195 5.605Samsung 3.61 .325 .032 2.983 4.267V/C 3.39 .932 .093 1.568 5.212

After Sales Services

LG 2.75 1.265 .126 2.504 2.99Samsung 3.66 2.135 .213 3.243 4.077V/C 2.83 1.255 .122 2.591 3.069

AC

QualityLG 4.07 2.115 .210 3.653 4.48Samsung 3.89 .885 .098 1.97 5.81Haier 3.24 .675 .067 1.93 4.35FeaturesLG 4.07 2.101 .210 3.653 4.48Samsung 2.87 1.987 .198 2.482 3.25Haier 3.04 1.111 .111 2.823 3.257

After Sales ServiceLG 4.13 2.101 .210 3.718 4.54Samsung 3.89 .285 .018 3.855 3.92Haier 3.04 1.111 .111 2.823 3.257

- 94 -

DesignLG 4.32 .125 .120 4.084 4.56Samsung 3.54 .675 .067 2.2268 4.853Haier 3.29 .852 .085 3.124 3.45

In order to compare the component like (Quality, Features, Desing, After Sales Service )

of four brands LG, Samsung, Videocon and Haier t-test was used. Then the total sample

is devided into groups and mean standard deviation, standard error and t- value was

calculated.

The result from this analysis is divided into four categories.

Catagories1. <CTV>

The result from this category explain that, Samsung is far better than LG in

terms of quality, features and after sales services. It was found that LG is only ahead in

terms of design.

CTV Analysis OF LG With Samsung

Factors Brand Name Mean Std. Deviation Std. Error T-value

LG 3.78 .927 .093 -10

Quality Samsung 3.93 1.076 .108

LG 3.98 .838 .083

Features Samsung 4.06 .567 .057 -6.92

LG 4.16 .663 .066

Design Samsung 3.63 1.012 .101 15.14

LG 3.92 .762 .076

ASS Samsung 4.14 .613 .063 -16.92

- 95 -

CTV Analysis of LG With Videocon

Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 3.78 .927 .093 18.85

Quality Videocon 3.12 1.227 .128

LG 3.98 .838 .083

Features Videocon 2.96 1.141 .141 17.586

LG 4.16 .663 .066

Design Videocon 2.75 1.341 .134 20.73

LG 3.92 .762 .076

ASS Videocon 2.83 1.216 .121 24.22

Refrigerator Analysis

Differentiation LG With Samsung

Factors Brand Name Mean Std. Deviation Std. Error T-value Significanc

LG 6.38 2.391 .239

Quality Samsung 3.98 .633 .063 13.63

LG 3.81 .935 .094

Features Samsung 3.84 .663 .066 .071

LG 3.81 .926 .093

Design Samsung 3.70 .736 .074 5.71

LG 3.97 .956 .096

ASS Samsung 3.56 1.012 .087 12.23

- 96 -

Refrigerator Analysis of LG with Videocon


LG 6.38 2.391 .239

Quality Videocon 3.09 1.115 .111 25.70

LG 3.81 .935 .094

Features Videocon 2.97 1.414 .142 17.5

LG 3.81 .926 .093

Design Videocon 3.04 .635 .063 25.66

LG 3.97 .956 .096

ASS Videocon 3.02 .875 .078 32.77

Washing Machine

Analysis Between LG and Samsung


LG 3.90 .678 .068

Quality Samsung 3.61 .935 .094 11.15

LG 3.90 .678 .078

Features Samsung 3.24 1.246 .123 10.15

LG 3.90 .876 .087

Design Samsung 3.61 .325 .032 3.22

LG 2.75 1.265 .126

ASS Samsung 3.66 2.135 .213 -10.70

- 97 -

Differentiation between LG and Videocon


LG 3.90 .678 .068

Quality Videocon 3.00 1.232 .123 16.36

LG 3.90 .678 .078

Features Videocon 3.39 .935 .093 34

LG 3.90 .876 .087

Design Videocon 3.39 .932 0.93 7.28

LG 2.75 1.265 .126

ASS Videocon 2.83 1.225 .011 .072

AC

In ACs, LG had a slight lead over Samsung . Videocon made up the median on

quality of product. Those who fell below the median were National, Haier managed

to stay just below the median.

Differentiation between LG and Samsung


LG 4.07 2.105 .210

Quality Samsung 3.89 .885 .088 1.44

LG 4.07 2.101 .210

Features Samsung 2.87 1.987 .198 100

LG 4.32 .125 .012

Design Samsung 3.61 .325 .032 35.5

LG 4.31 1.265 .126 .087

ASS Samsung 3.66 2.135 .213 3.05

- 98 -

Differentiation between LG and Haier


LG 4.07 2.105 .210

Quality Haier 3.24 .675 .067 5.80

LG 4.07 2.101 .210

Features Haier 3.04 1.111 .111 10.40

LG 4.32 .125 .012

Design Haier 3.29 .852 .085 14.10

LG 4.31 1.265 .126

ASS Haier 3.04 .935 .093 38.48

CTV Segment: In CTV segment 38 percent dealer recommend the Samsung

brand, 32 percent dealer recommend LG, 18 percent recommend Videocon and

12 percent recommend the Haier.

In urban areas CTV-29” is the most acceptable size now a days and in other areas

CTV-21” is the most acceptable size.

The colour television (CTV) segment of the consumer durables industry has been

hit by stagnant demand in recent times. CTV manufacturers like Haier and

Videocon have effected price cuts while others have lowered production levels in

the face of rising inventories. They have also initiated drives to clear old stocks.

Washing Machine Segment: In washing machine segment LG got the highest

dealer recommendation 32 Percent , Samsung got 28 percent, Videocon got 26

percent and Haier got 14 percent dealer recommendation.

- 99 -

The washing machine market consists of two broad segments - semi-automatic

and fully automatic. The first accounts for a chunk of the market. In terms of

loading type, top loading machines sell in greater numbers than front-loading ones

Refrigerator Segment: In refrigerator segment LG got 36 percent dealer

recommendation , Samsung got 28 percent dealer recommendation , Videocon got

23 percent and Haier 13 percent respectively

In the case of refrigerators, a chunk of the sales are still in the direct cool segment

as against the frost-free one, But replacement buyers tend to go for

technologically improved models. Hence, sales of frost-free refrigerators have

grown steadily over a period of time.

AC segment: In AC segment LG also got the Highest recommendation 42

percent, Samsung got 26 percent, Haier got 22 percent and Videocon got the 10

percent recommendation .

The important finding is that the difference between the best and the also-rans has

narrowed even more. The difference between the topper and the number four or

five in any category is mostly in single digit percentage points.

Dealer disclosed the fact that approx 85 percent customer come with Prior

knowledge of product price, features, discount offer, exchange offer only 15

percent are unknown customer.

Almost two-thirds of the customers rate the durable brands they own as excellent

or very good. This phenomenon is common across all categories.

The survey also brings out how companies have excelled in one area of product or

service delivery, only to falter in another. There are brands which score extremely

- 100 -

high on product quality - but fall way behind in complaint management. And vice

versa.

The Survey highlights the positive growth trends in consumer durable segments –

white goods and consumer electronics during April-March 2004-05 and points

tosustained growth during 2005-06 because of emerging opportunities and strong

fundamentals of the economy.

Unlike automobiles, consumer durables do not require regular servicing. And

reliability is something that most customers take as a given these days. Despite

that, no company can afford to slip up on the after-sales service and complaint

management front. This is one factor that can make or break a brand

The price difference between branded and unbranded goods has narrowed down

and with branded players providing good after sales services and support

consumer prefer to buy branded products.

The consumer durables industry appears to have two clearly differentiated

segments. The MNCs have an edge over their Indian counterparts in terms of

technology combined with a steady flow of capital. The domestic companies

compete on the basis of their well-acknowledged brands, anextensive distribution

network and an insight into local market conditions.

Competitive strategies revolve around strong brand differentiation and prices.

Bargaining power of customers is high due to availability of many brands.

Demand is Cyclical and seasonal. Demand is high during festive season and is

generally dependent on good monsoons. Purchase necessarily is done only

- 101 -

during the harvest, festive and wedding seasons — April to June and October to

November in North India and October to February in the South.

Rural India, which accounts for nearly 70% of the total number of households,

offers plenty of scope and opportunities for the white goods industry. The urban

consumer durable market for products including TV is growing annually by 7 to

10 % whereas the rural market is zooming ahead at around 25 annually.

Increasing consumer awareness and preference for new models have added the

demand. Products like air conditioners are no longer perceived as luxuryproducts

but are treated as necessities in the changed socio-economicenvironment with

changed life styles.

Attractive consumer loan schemes with reduced interest rates over the years by

the financial institutions and commercial banks and the hire-purchase schemes

have added to the surge in demand. Besides, the consumer goods companies are

themselves coming out with attractive financing schemes to consumers through

their extensive dealer network.

The phenomenal growth of media in India and the flurry of television channels

and the rising penetration of cinemas have spread awareness of products in the

remote markets.

The Internet being now used by the market functionaries that will lead to

intelligence sales of the products. It will help to sustain the demand boom

witnessed recently in this sector.

- 102 -

CONCLUSION

RECOMMEDATION

- 103 -

Recommendations and conclusion

Penetration of consumer durables would be deeper in rural India if banks and financial

institutions come out with liberal incentive schemes for the white goods industry

segment, growth in disposable income, improving lifestyles, power availability, low

running cost, and rise in temperatures.

While the consumer durables market is facing slowdown due to saturation in the urban

market, rural consumers should be provided with easily payable consumer finance

schemes and basic services, after sales services to suit the infrastructure and the existing

amenities like electricity, voltage etc.

Currently, rural consumers purchase their durables from the nearest towns, leading to

increased expenses due to transportation. Purchase necessarily done only during the

harvest, festive and wedding seasons — April to June and October to November in

North India and October to February in the South, believed to be months `good for

buying’, should be converted to routine regular feature from the seasonal character.

Rural India that accounts for nearly 70% of the total number of households, has a

2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of

scope and opportunities for the white goods industry. The urban consumer durable

market for products including TV is growing annually by 7 to 10 % whereas the rural

market is zooming ahead at around 25 % annually. According to survey made byindustry,

the rural market is growing faster than the urban India now. The urban market is a

replacement and up gradation market now.

- 104 -

e-business solutions integrate knowledge across the supply chain. Easy access to

information on customers, products and trends can be a competitive advantage by

offering better customer service, accurate product data and up to date forecasts.

e-Procurement solutions provide electronics companies with access to parts catalogs

and to place orders at anytime with contracted distributors. With the information

collected from these systems, companies can provide the value-added services of

manufacturer negotiation, rebate management, inventory planning and reporting.

Purchasing volume can be leveraged and more emphasis can be placed on product

negotiation and selection.

Warehouse Management Systems are software packages that help distributors optimize

their use of warehouse space and warehouse labor. In addition, warehouse systems

dramatically reduce mispicks.

From the above stated discussion, it is revealed that although LG is market leader in AC,

Washing Machine and Refrigerator Segment in NCR, yet LG is getting tough

competition from Samsung Due to excellent design , Display of Products at store and

after sales services. To stay ahead in competition LG should improve it’s after sales

service in rural areas and it should offer better display at store. In this present era it is not

an option to adopt few differentiations strategies but they should be in advance in every

area to stay ahead in competition.

- 105 -

BIBLIOGRAPHY

- 106 -

BIBLIOGRAPHY

1. Dr. Yasho V, Verma (2007), “Passion The Untold Story of LG Electronics

India”(WEAkLY)

2. Hair/ Bush/ Ortinau (2006). pearson“ Marketing Research” (page 145)

3. ECONOMICS TIMES

4. www.lgindia.com

5. http://www2.uiah.fi/projects/metodi

6. http://creativecommons.org/licenses/by/2.0

7. http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html:

8. http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html

9. www.winebusiness,com

10. http://www.researchandmarkets.com/reports/53984

11. www.marketingpower.com

12. www.godrej.com

13. www.haier.com

14. www.videocon.com

15. www.samsung.com

- 107 -

http://www.samsung.com/

http://www.videocon.com/

http://www.haier.com/

http://www.godrej.com/

http://www.marketingpower.com/

http://www.researchandmarkets.com/reports/53984

http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html

http://creativecommons.org/licenses/by/2.0

http://www2.uiah.fi/projects/metodi

http://www.lgindia.com/

APPENDIX

Questionnaire for CTVPURPOSE OF STUDY

I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.

Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential

Q1. Which of the following brands of CTV, you are dealing in? (Please Tick)a) LG b) Samsung c) Videocon c) Haier d) Any Other (Please Specify) ________

Q2 How many models do you display for each brand?

15Samsung LG Haier Videocon

2129LCDPLASMA

Q3 which are the two highest selling models of each company in CTV & their prices?

Samsung -………………………………………………………… LG…… -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………

Q4. To what extents, following brands of CTV are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low NilLGSamsung

- 108 -

HiearVideoconSony

Q5 What is the price band for which the customer looks for while making purchase decision?Segment Brand Price 15 ………… ………… 21 ………… ………… 29 ………… ………… LCD ………... ………… Plasma ………… …………

Q6 Is customer ready to pay premium for additional features? ………………………………………………………………………….. Q7 What is the expected percentage of customers who are willing to pay? Premium ……………. Low-end ………….. Q8. What are the parameters on which consumer makes his purchase decision?

Parameters Rank


Q9 What is the annual estimated sales of CTV?

Brand Amount

o Samsung …………..o L.G …………..o Videocon .………….o Sony .………….o Haier …………..

Q10. Does customer come with prior knowledge/information about particulars brands of CTV?

h) Yes b) No If yes, what types of information/knowledge, they have?

- 109 -

a) About Discount Offer. b) About Exchange Offer. c) About New Features. d) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying CTV?e) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Q12. What is the most acceptable size in CTV now days?b) 14inch b) 21inch 29 inch LCD 26 PLASMA 42 32 50 40 46 52 d) Any Other (Please Specify) ___________________________

Q13. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer.(Rank1 = high, Rank 7 = low)

q) Television ________ e) Radio ________

r) Newspapers ________ f) Magazines ________

s) Pamphlets ________ g) Internet ________

t) Trade Shows ________

Q14. What different complaints are faced by you from your customer?(Mark √ to appropriate one)

BrandComplaints

LG Samsung Haier Videocon Sony

Bad Picture qualityProblem with Picture tube High Electricity ConsumptionFading of Colour

Q15. Which Brand you Recommend and why?

………………………………………………………………………………………………

PERSONAL PROFILE

- 110 -

Dealer’s Name: ____________________________Address: ____________________________

_______________________________________________________________________________________

Ph. No.:- ____________________________Date: Sign/ Stamp

- 111 -

Apendix……………………………………………………………………2

Questionnaire for AC

PURPOSE OF STUDY



Q1.Which of the following brands of AC, you are dealing in? (Please Tick)b) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________

Q2 How many models do you display for each brand? Capacity Samsung

W/S LG W/S

Haier W/S

Videocon W/S

0.75 Ton1 Ton1.5 Ton1.6 Ton2 Ton

Q3 Which are the two highest selling models of each company in AC & their prices?

Samsung -………………………………………………………… LG…… -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………

Q4.To what extents, following brands of AC are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low NilLGSamsungHiearVideoconBlueStar

- 112 -

Q5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price 0.75Ton ……………… ………… 1.0Ton ………………. …………. 1.5Ton ……………….. ………… 1.6Ton ……………….. ..………… 2.0Ton ……………….. ………… Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..

Q7. What is the expected percentage of customers who are willing to pay?

Premium ……………. Low-end …………..Q8. What is the annual estimated sales of AC?

Brand Amount

o L.G …………..o Samsung …………..o Videocon .………….o Haier …………..

Q9. Please rank each of the following features from 1 to 5 on the basis of their importance to customers.Rank 1= the most importance featureRank 5=the least important feature

Feature Rank Order

f) Price _________

g) Design _________

h) Features _________

i) Dealers Communication _________

f) Brand Name _________

Q10. Does customer come with prior knowledge/information about particulars brands of AC?

i) Yes b) No

If yes, what types of information/knowledge, they have?e) About Discount Offer. f) About Exchange Offer.

- 113 -

g) About New Features. h) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying AC?f) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Q12. What is the most acceptable size in AC now days?c) 1Ton b) 1.5Ton c) 2 Tond) Any Other (Please Specify) ___________________________


u) Television ________ e) Radio ________

v) Newspapers ________ f) Magazines ________

w) Pamphlets ________ g) Internet ________

x) Trade Shows ________


BrandComplaints

LG Samsung Haier Videocon Blue Star

Bad cooling quality

Problem with Noise

High Electricity ConsumptionCost of Maintenance


………………………………………………………………………………………………

PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ______________________________________________________________________________________

- 114 -

_____________________________Ph. No.:- __________________________

Address:-

- 115 -

Apendix……………………………………………………………………3

Questionnaire for Washing Machine

PURPOSE OF STUDY



Q1.Which of the following brands of Washing Machine you are dealing in? (Please Tick)

c) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________

Q2 How many models do you display for each brand? Capacity Samsung

LG

Haier Videocon

Semi automaticTop LoadingFront Loading

Q3 Which are the two highest selling models of each company in Washing Machine & their prices ?

LG -………………………………………………………… Samsung -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………

Q4.To what extents, following brands of Washing Machine are preferred by customers?(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low NilLGSamsungHiearVideoconBlueStar

- 116 -

Q5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price Semi Automatic ……………… ………… Top Loading ……………….. ………… Front Loading ……………….. …

Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..

Q7 What is the expected percentage of customers who are willing to pay?

Premium ……………. Low-end …………..Q8 What is the annual estimated sales of Washing Machine?

Brand Amount



Feature Rank Order

j) Space _________

k) Colour(s) _________

l) Brand Name _________

m) Features

Q10. Does customer come with prior knowledge/information about particulars brands of Washing Machine?

j) Yes b) No

If yes, what types of information/knowledge, they have?i) About Discount Offer. j) About Exchange Offer. k) About New Features. l) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying Washing Machine?

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g) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Q12. What is the most acceptable size in Washing Machine now days? Catagorys Model

d) Semi Automatic …………….. k) Top Loading …………… l) Front Loading ……………….

Any Other (Please Specify) ___________________________


y) Television ________ e) Radio ________

z) Newspapers ________ f) Magazines ________

aa) Pamphlets ________ g) Internet ________

bb) Trade Shows ________


BrandComplaints

LG Samsung Godrej Videocon Electrolux Kelvinator

Spinning Problem

Problem with Compressor High Electricity ConsumptionNoiseFading of Colour

Time consuming


………………………………………………………………………………………………PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ______________________________________________________________________________________

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Apendix……………………………………………………………………4

Questionnaire for Refrigerators

PURPOSE OF STUDY



Q1.Which of the following brands of Refrigerators, you are dealing in? (Please Tick)d) LG b) Samsung c) Videocon d) Haier f) Any Other (Please Specify) ________

Q2 How many models do you display for each brand?e) 165 L e) 365 L m) 210 L f) 410 L n) 310 L g) 600 L

Q3 Which are the two highest selling models of each company in Refrigerators & their prices?

LG -………………………………………………………… Samsung -………………………………………………………… Haier… -………………………………………………………… Videocon-………………………………………………………… Any other-…………………………………………………………Q4.To what extents, following brands of Refrigerators are preferred by customers?

(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low NilLGSamsungHiearVideoconQ5. What is the price band for which the customer looks for while making purchase decision? Segment Brand Price (a) 165L ……….. …………(b) 210L ……….. …………(c) 310L ………… ………….(d) 410L ……….. ..………Q6. Is customer ready to pay premium for additional features? …………………………………………………………………………..

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Q7 What is the expected percentage of customers who are willing to pay ?

Premium ……………. Low-end …………..Q8 What is the annual estimated sales of Refrigerators?

Brand Amount



Feature Rank Order

n) Space _________

o) Front Door Design _________

p) Cooling Effect _________

q) Colour(s) _________

r) Brand Name _________

s) Features _________

Q10. Does customer come with prior knowledge/information about particulars brands of Refrigerators?

o) Yes b) No

If yes, what types of information/knowledge, they have?m) About Discount Offer. n) About Exchange Offer. o) About New Features. p) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying Refrigerator?h) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Q12. What is the most acceptable size in Refrigerator now days?f) 165 L e) 365 L p) 210 L f) 410 L q) 310 L g) 600 L

Any Other (Please Specify) ___________________________

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Q13. Below are different modes of promotion. Please rank following modes from 1


cc) Television ________ e) Radio ________

dd) Newspapers ________ f) Magazines ________

ee) Pamphlets ________ g) Internet ________

ff) Trade Shows ________


BrandComplaints

LG Samsung Godrej Videocon Electrolux Kelvinator

Low Cooling Effect

Problem with Compressor High Electricity ConsumptionInadequate Storage SpaceFading of Colour


………………………………………………………………………………………………

PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ___________________________________________________________________________________________________________________

Ph. No.:- ____________________________

Date: Sign/ Stamp

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1 Response:

NO. of RESPONDENTS

2

4

6

8


2 Response:

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3 Response:


Brands of Refrigerator prefered by customer

0

5

10

15

20

25

LG Samsung Haier Videocon

RESPONSE Preference LEvel

4


16%

84%

0%


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5


60%

33%

7% 0%


6


54%

46%

Yes No

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7


50%

23%

27%0%


8

Acceptable Size in Refrigerator

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

165 L 210 L 310 L 365 L 410 L 600 L

Size of Refrigerator

Ave

rag

e S

core

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9 Response:

NO. of RESPONDENTS

2

4

6

8


10

RESPONSE

LG Samsung Videocon Haier

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11


60%

33%

7% 0%


12


54%

46%

Yes No

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13


16%

84%

0%


14


50%

23%

27%0%


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A Comparative Marketing Study of LG Electronics

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Transcript of A Comparative Marketing Study of LG Electronics