PROJECT REPORT

ON

“MARKET MAPPING”

FOR

L.G ELECTRONICS PVT.LTD. INDIA

Under the Supervision of

Rajiv Choudhary(Marketing Head LG)

SUBMITTED BYKARTIKEYA PURI

PGDM (MARKETING)ROLL NO-1330

JAIPURIA INSTITUTE OF MANAGEMENT NOIDA

BATCH- (2013-15)

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ACKNOWLEDGEMENTI would like to take this opportunity to thank

LG Electronics India Pvt. Ltd. Luck now for granting the

permission to carry out my Summer Training at their

esteemed organization. I express my sincere gratitude to MR

RAJIV SIR, without whose guidance and support this

endeavor would not have been possible. His guidance and

advice played a very important role in motivating me to put

my best efforts. Special thanks to VIRENDRA SIR for

support during the project.

I also thank my friends and family members for their support

and encouragement. 

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DECLARATION

I hereby declare that the project work entitled “MARKET

MAPPING” Submitted to the JAIPURIA INSTITUTE OF

MANAGEMENT , is a record of an original work done by me under

the guidance of Mr . RAJIV CHOUDHARY Marketing head at

L.G ELECTRONICS PVT LTD Lucknow. The content of this report

is based on the information collected by me during my tenure at LG

Electronics Ltd. at LUCKNOW for two months of training from

21TH April to 20th June 2014.

KARTIKEYA PURI

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CONTENT

Sl. NO. Topic Page No.1. Declaration 3

2. Executive Summary 5-6

3. Introduction 7-22

4. Research Problem 23-28

5. Research Methodology 29-34

6. Data Collection Method 35-48

7. Comparison between LG & other

brands

49-54

8. Turnover of LG & other brand 55

9. Recommendations & Suggestion 56-57

10. Limitations 58

11. Conclusion 60

12. Questionnaire 61-63

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EXECUTIVE SUMMARY

Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian players and dominating Indian market .The major categories being CTV, REFRIGRATOR, AIRCONDTIONERS and WASHING MACHINES.

India being the second largest growing economy with huge consumer class

has resulted in consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean companies have been maintaining the lead in

the market with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower.

The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The rising income levels double-income families and consumer awareness are the main growth drivers of the industries. Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest nearly Rs 500 crore in India this year in research and development,

brand-building and other marketing initiatives.

The company, having a turnover of Rs 1,500crore and market share of 26 percent, is investing Rs 360crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas, LG’s innovative ‘211campaign’ to provide quality after-sales service, will also be expanded from the existing 22 to 40 cities by next month, the campaign, for which IT infrastructure has been set up, includes the company’s response to customer complaint within two hours. The fixing time for complaints varies from one hour to a maximum of 24hours.

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Objective of ProjectThe research will provide an invaluable opportunity to conduct a research. And practicing the theoretical knowledge while pursuing MBA and examining them against the ground realities.I am MARKETING specialization student it will provide me an opportunity to gain first hand information in depth knowledge about the market and issues related to comparative study. I have developed a questionnaire and retrieving information. This will be taken into account for this research.

PROFFESIONAL OBJECTIVE

This dissertation project is the study of “ MARKET MAPPING” of different brands at different outlet. Therefore with behest of this study we can come to know the market share, monthly turnover, number of items of LG items sold at different outlet.

PERSONAL OBJECTIVE-

Personal objective in this project is to gain experience of working in the market and interacting with the retailers and the distributors. Analyzing the market, enhancing the indirect learning about the market and comparing the brands with other brands is the another objective which will be helpful further in future in the field of marketing.

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INTRODUCTION

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INTRODUCTION

Few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market before the liberalization of the Indian economy, accounting for no less than 90% of the market. Then, after the liberalization, foreign company like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Now, these companies have controlled the major share of the consumer market.

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries.

LG Electronics is a company that thrives on innovation. Its products and technologies enhance lives and introduce our customers to a whole new world of creative designs.

They are committed to finding new ways to make your life better and easier-through simple user interfaces, stylish designs and intelligent, state-of-the-art technology.

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HISTORY OF L.G COMPANY

The company was originally established in 1958 as Gold Star

1958-1969-GoldStar the Electronics Industry Dream

1970-79 Gold Star symbol of The Technology

1980-88:- INTERNATIONALIZATION

1989-94 INOVATION

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1995-98 GLOBAL LEADERS LG ELECTRONICS

1999-2003-DIGITAL MANAGEMENT

2004-2006 GREAT PEOPLE GREAT DESIGN

2007-THE PEOPLE COMPANY

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The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

Code of conduct of LG

Responsibility and obligations to customers

RESPECTING OF CUSTOMERS CREATING VALUE PROVIDING VALUE

Fair competition

PERSUIT OF FREE COMPETITION COMPLAINCE WITH LAWS AND REGULATIONS

Fair Transaction

FAIR TRANSACTION PROCEDURE EQUAL OPPORTUNITY SUPPORT AND AID FOR BUSINESS PARTNERS

BASIC ETHICS OF EMPLOYESS

BASIC ETHICS COMPLETION OF DUTY SELF DOVLEPMENT FAIRNESS IN PERFOMANCE AVOIDANCE OF CONFLICTS WITH COMPANY INTEREST

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CORPORATE RESPONSIBILITIES TO EMPLOYEES

RESPECT FOR HUMAN DIGNITY FAIR TREATMENT PROMOTING CREATIVITY

RESPONSBLITIES TO SOCIETY AND COUNTRY RATIONAL BUSINESS AND DEVLOPMENT PROTECTION OF STOCK HOLDER AND INTEREST CONTRIBUTION TO SOCIAL DEVLOPMENT ENVIRONMENTAL CONSERVATION.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies.

LG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies.

1. SUN2. YAHOO3. PHILIPS4. TOYATA5. MICROSOFT6. HP7. GOOGLE8. GE9. INTEL10. HITACHI11. TOSHIBA12. BEST BUY13. PRADA.

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LG INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, and India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.

LG India has been set up with the aim to acquire a leading position in the global digital market by applying fast and innovative techniques in the manufacturing of products. Also, it aims to meet the maximum requirement of consumers and give them the optimum service required.

LG Electronics has been set up in India with a vision to rise high in the electronic equipment’s industry. The chief aim of LG India is to enhance its domestic market by inventing new electronic devices in state-of-art form with the best technology possible. The price range of the products of LG India is quite reasonable and affordable so as to make it easier for every class of people to go for it thereby increasing the consumer level. LG India manufactures products of high digital innovativeness to satisfy the needs of its consumers not only in the domestic market but all across the globe. The upcoming goal set by LG India for its growth is to be among the top three brands in terms of electronic devices, information, and telecommunication companies in the world. The three main capabilities of LG India are product leadership, people leadership, and market leadership that will intensify the company's abilities for teamwork. One of the recent targets of LG India is to attain its goal of doubling the sales volume and profit by 2015.

Some of the most eminent and profitable products manufactured by LG India are listed as:FLAT PANEL DISPLAYCOLOUR TELEVISIONDIGITAL AUDIO VIDEOCOMPUTER PRODUCTSMOBILE PHONEREFRIGERATORWASHING MACHINEVACUUM CLEANERMICROWAVE OVENROOM AIR CONDITIONERCOMMERCIAL AC.

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These products of LG India have their own sub-products as well. The sub-products of LG Flat Panel Display are LCD TV and Plasma TV. The sub-products of LG Color Television include Slimagic and Flatron TV; Digital Audio Video consists of 6.1 inch AV receiver, Home Theater System, Music System, and DVD Player. LG Computer Products include Notebook PC, Desktop PC, Monitor, and Optical Storage Device. Mobile Phones of LG India comprise of brand names like Shine, Dynamite, Pulse, and Bullet. The Refrigerator products of LG India comprise of Side-by-Side Refrigerator, Frost Free Refrigerator, and Direct Cool Refrigerator. LG Washing machine has a range of Dish Washer, Washer Dryer, Front Load Washing Machine, Top Load Washing Machine, and Semi-Automatic Washing Machine. The Microwave Oven range of LG India includes Solardom Microwave, Convection Microwave, Grill Microwave, and Solo Microwave. The range of LG Room Air Conditioner in India includes Split Inverter AC, Split Art Cool AC, Floor Standing AC, Multi Split AC, Hot and Cold AC, Split AC, and Window AC. The last product, that is the Commercial AC range of LG India comprise of Ductable Type AC, Cassette Type AC, Multi V plus (VRF), MPS, and ECO.

LG India is working hard on its R & D unit in order to generate products of superior value technology along with a unique style for each of its products. It has won a number of awards for its state-of-art form of manufacturing products and this had really boosted up the company's flourishing electronic industry further.

Challenges in India

The challenges faced by L.G when entered in the Indian market.

Low brand awareness about L.G in India. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India) High import duty Competition from local market players and other MNCs in consumer durable market. Price sensitiveness of the Indian consumer.

LGEI has overcome these challenges to emerge as on of the prominent brands in the consumer electronics and home appliance market by leveraging the success factor below

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Factors for success

Innovative marketing strategies-

To make itself a known brand in the consumer electronics sector, LG has taken innovative marketing and promotional initiatives.

Launch of new technologies in consumer electronics and home appliances LG was the first brand to enter cricket in a big way, by sponsoring the 1999 world cup

and followed it in 2003 as well. L.G brought in 4 captains of the Indian cricket team to endorse its products. LG

invested more than USS 8 million on advertising and marketing in this sport. LG differentiated its products using technology and health benefits. The CTV range

has ‘GOLDEN EYE’ technology, air conditioners have the ‘Health Air System’ and microwave ovens have the‘Health Wave System’.

Local and efficient manufacturing to reduce cost

To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.This has helped LGEI to reduce cost.

LGEIL is implementing a “digital manufacturing system”(DMS) as a cost-cutting innovation. This system is follow-up to the six sigma exercise LGEIL had initiated earlier.

Product localization

Product localization is a key strategy used by LG.

LG came out with Hindi and regional language menus on its TV. Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural markets. LG was the first brand to introduce gaming in CTVs. In continuation of Its association

with cricket ,LG introduced the cricket game CTVs

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Regional channel strategy and wide distribution network

LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rotation of stocks, and better penetration into the B, C, and D class markets.

LG also follows the strategy of stock rotation, rather than dumping stocks on channel partners.

LG has over 46 branch offices and another 110 area offices across the country. LG had set a target of developing 2,000 dealers in 2004, in addition to the existing 3,000 dealers all over India.

Leveraging the India Advantage

India’s IT advantage

LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM andIT-enabled services for LG Electronics’ 60 overseas subsidiaries and manufacturing facilities worldwide.

LGSI has offices in San Jose, London and Seoul with over 300 professionals in the development facility at Bangalore. All its offices are networked for swifter communication and decision making.

R&D potential

LG has set up research and development facilities in India at Bangalore and is in the process of setting up another at Pune. Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customized R&D for specific countries to which it exports products.

Future plans

LG has a positive perception of India and the Indian consumer. LG is making a foray into the e-commerce market in India and has partnered with various local websites like fabmall.com, rediff.com, indiatimes.com, and indiaplaza.com.

LG is also planning to invest over US$ 208 million in India over the next three years to expand the business. Mobile software development is also on LG’s agenda.

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Company Overview of LG Electronics India Pvt. Ltd.

Company Overview

LG Electronics India Pvt. Ltd. manufactures and sellsconsumer electronics, home appliances, computerproducts, and mobile phones in India. The company’s consumer electronics include LCD TVs, plasmadisplays, display panels, color televisions, hometheatre systems, music systems, DVDrecorders/players, and MP3 and MP4 players; andhome appliances comprise room air conditioners,commercial air conditioners, refrigerators, refrigeratorcompressors, washing machines, dishwashers, microwaves, and vacuum cleaners.The company also offers computer products, such as laptops,notebook and desktop personal computers, LCD monitors, CRT monitors, optical storage devices, and projectors; and mobile phone, including camera phones, music phones, and color screen GSM handsets. It sells its products through dealers. The company was incorporated in 1997 and is based in Greater Noida, India. LG Electronics India Pvt. Ltd. operates as a subsidiary of LG Electronics Inc.

Plot No. 51Udyog ViharSurajpur-Kasna RoadGreater Noida,  201306IndiaFounded in 1997Phone:91 12 0256 0900Fax:91 12 0256 0956

Key executives of L.G-

NAME BOARD TITLE OF

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RELATIONSHIP DISCRIPTIONSoon H. Kwon NO RELATIONSHIP MANAGING DIRECTORYasho Verdhan Verma

NO RELATIONSHIP CHIEF OPERATING OFFICER

SANJEEV AGARWAL

NO RELATIONSHIPS HEAD OF SALES

VIJAY BABU NO RELATIONSHIP Head of Frostfree Refrigerators Product Group

PRAVEEN GOSAIN

NO RELATIONSHIP HEAD OF DIRECT-COOL REFRIGRATOR PRODUCT GROUP.

VISION

GLOBAL TOP 3 ELECTRONIC/TELECOMMUNICATION COMPANY

GROWTH STRATEGY

“FAST INNOVATION FAST GROWTH”

CORE COMPENTENCY

“PRODUCT LEADERSHIP.MARKET LEADERSHIP, PEOPLE LEADERSHIP”

CORPORATE CULTURE

NO EXCUSE, “WE” NOT “I”, FUN WORK PLACE.

SLOGAN

“LIFE’S GOOD” REPRESENTS LG DETERMINATION TO PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL MAKE YOUR LIFE GOOD.

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The L.G electronics Life’s Good signature consist of the Logo seal, and the slogan, “ Life’s Good” set in charlotte sans type face curved around the LG symbol. The curving of the slogan reinforces LG personality and uniqueness. The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG electronics across globe.

THE SYMBOL

The symbol of LG is the face of the future. The letter “L” and “G” in a circle symbolizes world,future,youth,humanity, and technology. LG philosophy is based on humanity. It also represents LG efforts to keep close relationship with our customer around the world.

The symbol consist of two elements-

1. The logo in LG gray2. The stylized image of human face in the unique LG red color

RED COLOR

Represents our friendliness and gives a strong impression of LG,s commitment to deliver the best.

The circle symbolizes the GLOBE. The stylized image of smiling face in the symbol conveys “ friendliness and Aproachbilitythe one eye on the symbol represent

“goal oriented, Focused and confident”

The slogan of LG is Life’s Good. It expresses “BrandValue,Promises,Benefit,Personality

THE PARTNERSHIP

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LG chooses harmony and build constructively on a labor management relationship rather than an employee-employer relationship. This illustrates that management and workers are not vertical relationship but in horizontal one.

The culture is necessary for LG electronics as it strives to become on of the worlds top companies. Such a relationship is transformed into a value creationrelationship wherby both parties endavour to address mutual problems and create new values together.

STRATEGIC ALLAINCE

LG ELECTRONIC is making technical advances and identifying business opportunity through various associative relationships with some of the world’s leading companies.

LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with the world famous companies. “Strategic association between corporations,” in which companies with different infrastructures cooperate in the fast developing 21st century business field, is of the key significance in terms of strengthening the existing industry and creating a new one.

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POSTION OF L.G

L.G’S MARKET SHARE

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RESEARCH PROBLEM

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RESEARCH PROBLEM

The main objective of the study was to find out the market share of LG products. And the market share of L.G and other brands at different regions and to gauge the marketing strategy vis-a vis at Luck now region. Till the nineties in the area of marketing whole effort was focused on fine- turning the four P : product,price,place ,promotion. It was the early nineties that a few marketers began to realizing that companies basically existed to serve consumers- nad that consumer did not exist merely to buy a company’s products

LG and other brands such as SAMSUNG, SONY, and VIDEOCONare big white product manufacturing companies. All are equally strong, global companies, and more or less with equal presence in Indian market. So it will be quite rational to compare these brands.

ISSUES TO BE ADDRESSED

What are the factors that affect the consumer satisfaction? Determining the factors affecting the consumer satisfaction What is the magnitude of those factors regarding the consumer satisfaction? To identify and to find out the market share of L.G products, advantages,

disadvantages of L.G product from the dealers and to find out what problems they are facing with LG product s that problem can be resolved to increase the sale.

Primary objective of the product was to find out the market share of the L.G and also the display share. Turnover of LG and other brands at different outlet for the competitive analysis.Postional dealer who can sale the product in large volume. Therefore with the behest of this project we can identify potential dealers and the development of these dealers. And also the problem faced by the dealers in sales and distribution. And what are the parameters important for the sellers in selling the product to the customer.

While purchasing the consumer durables which, parameters are important for the customer. Do the customers prefer financially facility for buying consumer durable. In which pockets L.G is performing well and in which pockets other brands such as SAMSUNG, SONY, and VIDEOCON AND OTHER BRANDS giving LG a tough competition. Therefore one of the major objectives was to find out in which pocket L.G is strong and in which pocket LG is weak. And also to enhance knowledge of consumer durable market.

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Therefore, the research will provide me an invaluable opportunity to conduct a research and practicing a theoretical knowledge while pursuing MBA and examining them against the ground realities.

SCOPE OF THE PROJECT

This project gives me a great exposure of consumer durable market because it includes product knowledge and the filed job in which I have visited the store comes under the region of LUCKNOW. During this project I have visited almost 200 outlets which held for the purpose of knowing the market and performance of LG at different outlets better.

This project helps me to know the market practically. My job during this project was to know the market share, display share, number of items sold weekly of LG at different outlet. Therefore with this information I can compare the performance of LG with other brands.

LG always insist the 50% display share of LG product because LG believes “JO DIKHTA HAIN WO BIKTA HAI”

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MY JOB INCLUDE WHILE VISITING A SHOP

Calculate the display share of LG at each shop which comes under Luck now region

Collect the data of actual weekly sale of the LG product in each shop. Find out the problems faced by the retailers at different outlet while selling the

product. Find out the customer response for the LG product by asking the owner of the

shop. Calculate the average footfall of customer at different outlets To identify the most preferred brand by the customer at each shop comes under

the luck now region Calculate number of items of LG and other brands sold weekly at each shop

which comes under Luck now region To identify most preferred product at each shop which comes under Luck now

region.

INTERIOR DESIGN OF LG AT DIFFERENT OUTLETS

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LG WARE HOUSE DURING MY SURVEY

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research methodology is considered as nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and to reach any conclusion. This project was based on a survey plan. The main objective of the survey was to collect appropriate which work as a base for drawing conclusion and getting a result.

Therefore, research methodology is a way to systematically solve the research problem. Research methodology not only talks about the methods but also logic behinds used in the context of the research and it explains why a particular method has been used in the preference of other brands.

Research design

Research design is important because of the increased complexity in the market as well as the market approaches available to the researchers. In fact, it is the key to the evolution of the successful of marketing strategies and programmers. A research design specifies the methods and the procedures for conducting a particular study. According to Kerlinger,”Research design is a plan, conceptual structure and study, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Types of research

Descriptive research

The type of research adopted for study is descriptive. Descriptive studies is undertaken in many circumstances when the researchers is interested to know the characteristics of certain group such as age,sex,education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have a particular manner, in making projections of a certain things or determining the relationship between the two variables. The objective of such study is to answer the who what when where how of the subject under investigation. There is a general feeling that descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher.

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Descriptive study are well structured. An exploratory study needs to be flexible in its approach but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is necessary,the researcher give sufficient thought to framing research.

QUESTIONS AND DECIDING THE TYPES

Question and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be studied into two broad categories.Cross Sectional and longitudinal sectional. A cross sectional is considered with sample elements from a given population. Thus, it may deal with house hold, dealers, retailers or other entities. Data on a number of characteristics from sample element are analyzed and collected. Cross sectional studies are of two types-field study and survey. Although the distinction between them is not clear-cut, there are some practical differences, which need different techniques and skills. Field studies are ex-post factors scientific inquiries that aim in finding the relation and interrelations among variables in a real setting. Such studies are done in live situation like communities, schools, factories, and organization.

Another type of cross-sectional result is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtain from a sample of large population. Besides, it is economical as more information can be collected at per unit cost, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is the description of state of affairs, as it exist in present. The main characteristics of this method is that the researcher ahs no control over the variables he can report what has happened and what is happening. The method of the research utilized in descriptive research are survey method of all kinds including comparative and co rational methods. The reason for using such needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then .

MARKET MAPPING

MARKET MAPPING OF LUCKNOW REGIONS OUTLET

In Luck now region there are around 250 outlets. Therefore then have been divided into 8 pockets -

VIKAS NAGAR,RING ROAD,TEDHI PULIA

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ALIGANJ,KAPOORTHALA INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ MADIYOON,SITAPUR,JANKIPURAM GOMTI NAGAR,KANPUR ROAD HAZRAT GANJ,SADAR ALAMBAGH,CHARBAGH CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD.

POCKET 1 (VIKAS NAGAR,RING ROAD,TEDHI PULIA)- It includes the sub dealers. They have direct billing from the distributors. Their turnover is not so high , but there are fewsub dealers whose potential is quite high.

POCKET 2 (ALIGANJ,KAPOORTHALA)- It includes the sub dealers and distributor such as sahu agencies. They have direct billing from the distibutors or from the branch office. Their turnover is high as compared to POCKET-1.

POCKET 3(INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ)- includes the modern trade and they have direct billing from the dealers or from the branch office.their turnover is also high.

POCKET 4(MADIYOON,SITAPUR,JANKIPURAM)- It includes the subdealersjust like pocket-2. They have direct billing from the distibutors. There turnover is also high.

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POCKET 5 (GOMTI NAGAR,KANPUR ROAD)- It includes sub dealers and distibutors. They have the direct billing from the branch office or the distibutors there turnover is also high.

POCKET 6 (HAZRAT GANJ,SADAR)- include the modern trade and they have direct billing from the branch office. They have high turnover and the company depends heavily on them.

POCKET 6(ALAMBAGH,CHARBAGH)- include subdealer, just like other pockets they have direct billing from the distibutors and there turnover is also moderate.

POCKET 7(CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD) – Include subdealers. They have direct billing from the distributors and there turnover is also high.

OBJECTIVE OF THE STUDY

The objective was to find out the market share of L.G an d the performance of LG at each outlet coming under the region of Luck now. And also the advantage and disadvantage of LG product from dealers and to find out the problems facing by the retailers and the distibutors. So that the problem can to increase the sale.

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PICTURE SHOWING THE PRODUCT OF LG IN A SHOP

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DATA COLLECTION METHODS

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DATA COLLECTION METHODS

After the research problem, we have to identify and select which type of data is to research. At this stage, we have to organize a field survey to collect the data. On of the important tools of conducting market research is the availability of necessary and useful data.

Primary data.- for primary datacollection, we have to plan the important four aspects.

Sampling Research instrument Secondary data- The company’s profile, journals and various literature

studies are important sources of secondary data.

Data analysis and interpretation

Questionnaires Pie chart and bar chart

QUESTIONNARIES-

This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondent which is always guided by the objective of the survey.

Bar chart

This is another way to representing data graphically. As the name implies, it consist of number of whispered of bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

Prepration of report

The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

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Sampling methodology

Details of the sampling methodology, I have made a questionnaire. The one is made for the retailer.

No of questions in the questionnaires for retailers 14

No of question related to brands and items 10

No of retailers met during the research 200

No of respondent during the research 200

Sample unit

Sub dealers, distributor

retailers

DATA ANALYSIS AND INTERPETATION

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1-What is the average footfall of customers at your outlet weekly?

0150300450

AVG FOOTFALL OF CUSTOMER WEEKLY AVG FOOTFALL OF

CUSTOMER

AVG FOOTFALL OF CUS-TOMER WEEKLY AVG FOOTFALL OF CUSTOMER

INFRENCE-

Average footfall of customer among the different outlet. Where pocket 1 is the lowest and pocket 3 and 4 are the highest.

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2- In which pocket LG is selling maximum?

0306090

L.G MAXIMUM SELLING BRAND WEEKLY L.G MAX SELLING BRAND

L.G MAXIMUM SELLING BRAND WEEKLY L.G MAX SELLING BRAND

INFRENCEAs we can see in the diagram LG is selling maximum at POCKET 6. And lowest in POCKET 1 where other POCKETS such as 2, 3, 4,5,7,8 are moderate.

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3. In which pocket LG is selling maximum in terms of cost?

01,000,0002,000,0003,000,0004,000,000

L.G MAX SELLING BRAND BY COST WEEKLY MAX SELLING BRAND BY

COST

L.G MAX SELLING BRAND BY COST WEEKLY MAX SELLING BRAND BY COST

INFRENCE

As we can see in the diagram LG is selling maximum in terms of cost in pocket 6 and lowest in pocket 1.

4. Turnover this year of different pockets?

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04000000080000000

120000000160000000

TURNOVER THIS YEAR

TURNOVER THIS YEAR

INFRENCE

Just like the above diagram, we can see that highest turnover pocket is number 6 and lowest turnover pocket is number 1, whereas other pockets remain moderate.

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5. Market share of LG in terms of cost at different pockets weekly?

0%20%40%60%80%

100%

DIFFERENT BRANDS IN COST WEEKLY OTHER BRAND DIFFERENT BRANDS IN COST WEEKLY VIDEOCON DIFFERENT BRANDS IN COST WEEKLY SONY DIFFERENT BRANDS IN COST WEEKLY SAMSUNG DIFFERENT BRANDS IN COST WEEKLY L.G

INFRENCEAs we can see the market share of LG at different outlets in terms of cost is 35% whereas Samsung 20%, Sony 15%, Videocon 5%, and other brands 20%.

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6. Market share of different brands sold in numbers weekly at different outlet?

0%20%40%60%80%

100%

MARKET SHARE OF DIFFER-ENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY OTHER BRAND

MARKET SHARE OF DIFFER-ENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY VIDEOCON

MARKET SHARE OF DIFFER-ENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY SONY

MARKET SHARE OF DIFFER-ENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY SAMSUNG

MARKET SHARE OF DIFFER-ENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY L.G

INFRENCEAs we can see in the diagram, the market of different brands sold in numbers at different outlets weekly are as- LG 25%, SAMSUNG-20%,SONY- 20% VIDEOCON-10% And OTHER BRANDS-25%.

41

7. Monthly Turnover of LG,SAMSUNG,SONY,VIDOECON AND OTHER BRANDS at different pockets?

0%20%40%60%80%

100%TURNOVER OF DIF-FERENT BRANDS TILL JUNE OTHER BRANDTURNOVER OF DIF-FERENT BRANDS TILL JUNE VIDEOCONTURNOVER OF DIF-FERENT BRANDS TILL JUNE SONYTURNOVER OF DIF-FERENT BRANDS TILL JUNE SAMSUNGTURNOVER OF DIF-FERENT BRANDS TILL JUNE L.G

INFRENCE As we can see in the diagram, the turnover of different brands at different outlet. Among the 4 brands LG is the maximum with 30% SAMSUNG 25%, SONY 20%, VIDEOCON 10%, and OTHER BRANDS 20%.

42

AVG FOOTFALL OF CUSTOMER WEEKLY

REGIONSAVG FOOTFALL OF CUSTOMER

VIKAS NAGAR,RING ROAD,TEDHI PULIA 130ALIGANJ,KAPOORTHALA 260INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 410

MADIYOON,SITAPUR,JANKIPURAM 435GOMTI NAGAR,KANPUR ROAD 410HAZRAT GANJ,SADAR 190ALAMBAGH,CHARBAGH 150RAJA JI PURAM,TELIBAGH,RAIBRELLY ROAD 180CHOWK,NAKHAS,SULTANPUR ROAD,FAIZABAD ROAD 120TOTAL 2285

0150300450

AVG FOOTFALL OF CUSTOMER WEEKLY AVG FOOTFALL OF

CUSTOMER

AVG FOOTFALL OF CUS-TOMER WEEKLY AVG FOOTFALL OF CUSTOMER

43

L.G MAXIMUM SELLING BRAND WEEKLY

REGIONSL.G MAX SELLING BRAND

VIKAS NAGAR,RING ROAD,TEDHI PULIA 13ALIGANJ,KAPOORTHALA 75INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 55MADIYOON,SITAPUR,JANKIPURAM 42GOMTI NAGAR,KANPUR ROAD 56HAZRAT GANJ,SADAR 89ALAMBAGH,CHARBAGH 48CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 35TOTAL 413

0306090

L.G MAXIMUM SELLING BRAND WEEKLY L.G MAX SELLING BRAND

L.G MAXIMUM SELLING BRAND WEEKLY L.G MAX SELLING BRAND

L.G MAX SELLING BRAND BY COST WEEKLY

REGIONSMAX SELLING BRAND BY COST

44

VIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000ALIGANJ,KAPOORTHALA 1110000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 1765000MADIYOON,SITAPUR,JANKIPURAM 1365000GOMTI NAGAR,KANPUR ROAD 1715000HAZRAT GANJ,SADAR 3635000ALAMBAGH,CHARBAGH 1270000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000TOTAL 12,040,000

01,000,0002,000,0003,000,0004,000,000

L.G MAX SELLING BRAND BY COST WEEKLY MAX SELLING BRAND BY

COST

L.G MAX SELLING BRAND BY COST WEEKLY MAX SELLING BRAND BY COST

REGIONS TURNOVER THIS YEARVIKAS NAGAR,RING ROAD,TEDHI PULIA 15320000ALIGANJ,KAPOORTHALA 39,360,000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 68868000MADIYOON,SITAPUR,JANKIPURAM 56800000

45

GOMTI NAGAR,KANPUR ROAD 96320000HAZRAT GANJ,SADAR 146480000ALAMBAGH,CHARBAGH 76560000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 55040000TOTAL 554748000

04000000080000000

120000000160000000

TURNOVER THIS YEAR

TURNOVER THIS YEAR

46

COMPARASION BETWEEN LG & OTHER BRANDS

BETWEEN L.G AND SAMSUNGREGIONS L.G SAMSUNGVIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000 330,000ALIGANJ,KAPOORTHALA 1110000 310,000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 1765000 690,000MADIYOON,SITAPUR,JANKIPURAM 1365000 880000GOMTI NAGAR,KANPUR ROAD 1715000 1,015,000HAZRAT GANJ,SADAR 3635000 1,290,000ALAMBAGH,CHARBAGH 1270000 990,000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000 740,000

TOTAL12,040,00

0 6,245,000

0%20%40%60%80%

100%

BETWEEN L.G AND SAMSUNG SAMSUNGBETWEEN L.G AND SAMSUNG L.G

BETWEEN L.G AND SONYREGIONS L.G SONY

47

VIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000 0ALIGANJ,KAPOORTHALA 1110000 265,000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 1765000 310000MADIYOON,SITAPUR,JANKIPURAM 1365000 120000GOMTI NAGAR,KANPUR ROAD 1715000 1,220,000HAZRAT GANJ,SADAR 3635000 1,510,000ALAMBAGH,CHARBAGH 1270000 915,000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000 755,000

TOTAL12,040,00

0 5095000

0%20%40%60%80%

100%

BETWEEN L.G AND SONY SONYBETWEEN L.G AND SONY L.G

BETWEEN L.G AND VIDEOCONREGIONS L.G VIDEOCONVIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000 195,000

48

ALIGANJ,KAPOORTHALA 1110000 55,000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 1765000 929,000MADIYOON,SITAPUR,JANKIPURAM 1365000 415,000GOMTI NAGAR,KANPUR ROAD 1715000 1,020,000HAZRAT GANJ,SADAR 3635000 830,000ALAMBAGH,CHARBAGH 1270000 550,000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000 475,000

TOTAL12,040,00

0 4,469,000

0%20%40%60%80%

100%

BETWEEN L.G AND VIDEOCON VIDEOCONBETWEEN L.G AND VIDEOCON L.G

BETWEEN L.G AND OTHER BRANDS

REGIONS L.GOTHER BRANDS

VIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000 545000ALIGANJ,KAPOORTHALA 1110000 470000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 1765000 1710000

49

MADIYOON,SITAPUR,JANKIPURAM 1365000 1385000GOMTI NAGAR,KANPUR ROAD 1715000 1370000HAZRAT GANJ,SADAR 3635000 1690000ALAMBAGH,CHARBAGH 1270000 1060000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000 630000

TOTAL12,040,00

0 8860000

0%20%40%60%80%

100%

BETWEEN L.G AND OTHER BRANDS OTHER BRANDSBETWEEN L.G AND OTHER BRANDS L.G

MARKET SHARE OF L.G AND OTHER BRANDS IN LUCKNOW

MARKET SHARE OF DIFFERENT BRANDS IN TERMS OF COST DIFFERENT BRANDS IN COST WEEKLY

REGIONS L.GSAMSUN

G SONYVIDEOCO

N

OTHER BRAND

VIKAS NAGAR,RING ROAD,TEDHI PULIA 340,000 330,000 0 195,000 545000

ALIGANJ,KAPOORTHALA 1110000 310,000 265,000 55,000 470000INDRANAGAR ,MAHANAGAR SAPRU

MARG,NISHATGANJ 1765000 690,000 310000 929,000171000

0

MADIYOON,SITAPUR,JANKIPURAM 1365000 880000 120000 415,000138500

0

GOMTI NAGAR,KANPUR ROAD 1715000 1,015,0001,220,00

0 1,020,000137000

0

HAZRAT GANJ,SADAR 3635000 1,290,0001,510,00

0 830,000169000

0

ALAMBAGH,CHARBAGH 1270000 990,000 915,000 550,000106000

0

CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 840000 740,000 755,000 475,000 630000

TOTAL12,040,00

0 6,245,000 5095000 4,469,000886000

0

50

0%20%40%60%80%

100%

DIFFERENT BRANDS IN COST WEEKLY OTHER BRAND DIFFERENT BRANDS IN COST WEEKLY VIDEOCON DIFFERENT BRANDS IN COST WEEKLY SONY DIFFERENT BRANDS IN COST WEEKLY SAMSUNG DIFFERENT BRANDS IN COST WEEKLY L.G

MARKET SHARE OF DIFFERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY

REGIONS L.G SAMSUNG SONY VIDEOCONOTHER BRAND

VIKAS NAGAR,RING ROAD,TEDHI PULIA 13 14 1 10 21ALIGANJ,KAPOORTHALA 39 11 10 4 20INDRANAGAR ,MAHANAGAR SAPRU MARG, NISHATGANJ 59 20 10 36 71MADIYOON,SITAPUR,JANKIPURAM 42 33 5 17 46GOMTI NAGAR,KANPUR ROAD 56 32 42 42 52

51

HAZRAT GANJ,SADAR 85 44 50 37 60ALAMBAGH,CHARBAGH 48 41 28 22 33CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 35 35 39 23 41TOTAL 377 230 185 191 344

0%20%40%60%80%

100% MARKET SHARE OF DIF-FERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY OTHER BRANDMARKET SHARE OF DIF-FERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY VIDEOCONMARKET SHARE OF DIF-FERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY SONYMARKET SHARE OF DIF-FERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY SAMSUNGMARKET SHARE OF DIF-FERENT BRANDS SOLD IN TERMS OF NUMBER SOLD WEEKLY L.G

MONTHLY TURNOVER OF L.G ,SAMSUNG,SONY, VIDEOCON,OTHER BRAND AT DIFFERENT POCKETS POCKETS APPROX

TURNOVER OF DIFFERENT BRANDS TILL JUNEREGIONS L.G SAMSUNG SONY VIDEOCON OTHER BRANDVIKAS NAGAR,RING ROAD,TEDHI PULIA 1360000 1320000 0 780000 2180000ALIGANJ,KAPOORTHALA 4440000 1240000 1060000 220000 1880000INDRANAGAR ,MAHANAGAR SAPRU MARG,NISHATGANJ 7060000 2760000 1240000 3716000 6840000MADIYOON,SITAPUR,JANKIPURAM 5460000 3520000 480000 1660000 5540000GOMTI NAGAR,KANPUR ROAD 6860000 4060000 4880000 4080000 5480000

52

HAZRAT GANJ,SADAR 14540000 5160000 6040000 3320000 6760000ALAMBAGH,CHARBAGH 3360000 3960000 3660000 2200000 4240000CHOWK,NAKHAS,SULTANPUR ROAD,RAIBRELLY ROAD 3360000 2960000 3020000 1900000 2520000TOTAL 46440000 24980000 20380000 17876000 35440000

TILL JUNE 278640000 14988000012228000

0 107256000 212640000

0%20%40%60%80%

100%

TURNOVER OF DIFFERENT BRANDS TILL JUNE OTHER BRANDTURNOVER OF DIFFERENT BRANDS TILL JUNE VIDEOCONTURNOVER OF DIFFERENT BRANDS TILL JUNE SONYTURNOVER OF DIFFERENT BRANDS TILL JUNE SAMSUNGTURNOVER OF DIFFERENT BRANDS TILL JUNE L.G

53

RECOMMENDATIONS AND SUGGESTIONS

54

RECOMMENDATIONS & SUGGESTIONS

LG should improve it’s after sale service because its hits badly LGs market share in

region.

More detailed customaries service is to be provided.

The training to in shop demonstration should be given at frequent time interval and

feedback should be considered positively

The company should look into the matter of person hiring for in shop demonstration. A

big LG showroom should have at least 2 such kind of person.

LG should try new dealer who have the potential. So they can target more market.

As there is a bottle neck competition between Samsung and LG, it is necessary to take

measure steps to overcome the area of downfall in LG with respect to Samsung.

The marketing managers should make better relations with dealers and reputation of the

company.

Customer considers quality as their first preference, so the company should give more

stress on this.

The product is well aware and it is on top of mind of customer. So that company should

improve services and update their technology.

Customer considers quality as the first preference, so the company should give more

stress on it.

Display share should be increased where there is less than 50% as LG believes “JO

DIKHTA HAIN WO BIKTA HAIN”

Company should try to improve it services. No doubt the company products have

competitors but in a long run it may hamper the company profit

55

LIMITATIONS

EVERY COMPANY HAS CERTAIN LIMITATIONS. IN MY STUDY, ALSO THERE

WERE CERTAIN LIMITATION, WHICH I COULD ABLE TO SOLVE-

1. The research was conducted in a very short area.

2. My research time work witnesses the biggest ups and down in product sale of different

brands which affected the perception of the customer. This was the biggest drawback of

my study.

3. Time factor was also very important for me. I had only 60 days to complete my research,

for which a full-fledged report was insufficient for me

4. The retailer filed the questionnaire mostly in careless manner, so it was difficult to make

them hold for time.

5. I had to visit around 250 outlets in Luck now which was very difficult to cover in such a

short span of time.

6. Sometimes the respondents were not willing to fill the questionnaire or we have to wait

for a long time to talk or we have to talk only with helper boys.

My study is not recognizable in whole INDIA as well as outside LUCKNOW due to the

above limitation and less area coverage.

56

CONCLUSION

My study found that, the dealers are somewhat satisfied with the LG Company but some

retailers are not satisfied by the company neither in the way of credit facility nor by the

distribution system of LG.

About the LG company I found that LG having a good position in the market in terms of

pricing but lacking badly in terms of its retail satisfaction.

Customer get to know more by the television and they are influenced by to by new product

by the unique products that come into market.

My study also found that there are various factors influencing customer in buying decision

and the most influencing factor is the brand image and advertisment and other factors plays a

secondary role in buying decision.

BIBLIOGRAPHY

57

www.lgindia.com

www.google.com

www.wikipedia.com

Businessworld

Times of india

http://investing.businessweek.com/

http://in.reuters.com/

http://www.computerhope.com/

http://www.hoovers.com/

58

QUESTIONNAIRE

Name :

Outlet Name :

Location :

Year of operation :

Dear Sir,

I am a student of JAIPURIA INSTITUTE OF MANAGEMENT and currently doing a survey on pre-sales.I request you to kindly fill the questionnaire and assure you that the data generated shall be kept confidential.

1-What is the average footfall of customers at your outlet every day?

a) 0-5b) 5-10c) 10-20d) More than 20

2- Average number of home appliances sold every day?

a) Less than 10 b) 10 to 20c) 20 to 50d) More than 50

3- What are the brands you sell at your outlet?

a) LGb) Samsungc) Sonyd) Videocone) Any other, pls specify the names

4- Which one is the most preferred brand by the customer?

a) LGb) Samsungc) Sonyd) Videocon

59

e) Any other, pls specify the names

5- Which product is most frequently purchased by the customer at your outlet?

a) TVb) Mobile phonesc) Air condition d) Refrigerator or washing machinee) Any other product, pls specify the names

6- How many Sales representatives are there at your outlet?

a) Less than 5 b) 5 to 10 c) 10 to 20d) More than 20

7- Rank these brands in terms of popularity among the customer

a) LGb) Sonyc) Videocond) Samsunge) Any other, pls specify the name

8- Rank these brands in terms of the service provided by the company to the distributor or dealers?

a) LGb) Sonyc) Videocond) Samsunge) Any other, pls specify the name

9- Which brand is selling maximum

10- first three brands most preferred in the shop

60

11- Which brand do you think has the maximum market share in lucknow?

12- Which is the maximum selling brand in your shop?

A. By numberB. By cost

13-Which is the highest turnover season?

14- What is the highest turnover season?

15- What is the turnover of your shop?

(A) Last year(B) This year.

61