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CUSTOMER RESEARCH REPORT

Submitted to the SMU in

partial fulfillment of the requirements

for the degree of

MASTER OF BUSINESS ADMINISTRATION

( Marketing )

By

HARPREET KAUR LEGHA

Roll No. 520313461

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR

MASTER OF BUSINESS ADMINISTRATION

OF SIKKIM MANIPAL UNIVERSITY, INDIA

SIKKIM MANIPAL UNIVERSITY OF HEALTH, MEDICAL AND

TECHNOLOGICAL SCIENCES

DISTANCE EDUCATION WING

SYNDICATE HOUSEMANIPAL 576119

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EXAMINERS CERTIFICATION

This is to certify that this project entitled. "Customer Research submitted in partial

requirement for the degree of Masters in Business Administration (MBA) is a bonafide

research work carried out by Harpreet Kaur Legha (520313461) {student of ICAI

Campus, #2265A, Phase 7, Mohali}.

The assistance and help received during the course of investigation have been fully

acknowledged.

SANTOSH

Asst. Prof.

(Project Advisor)

ICAI Campus, #2265A,

Phase 7, Mohali

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DECLARATION

I hereby declare that the project report entitled Customer Research

Submitted in partial fulfillment of the requirements for the

Degree of

Masters in Business Administration

To Sikkim Manipal University, India is my original work and

Not submitted for award of any other degree, diploma

Fellowship or any other similar

Title or prizes.

Place: Mohali Harpreet Kaur Legha

Roll No.: 520313461

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ACKNOWLEDGEMENT

First of all, I bow my head in gratitude to omnipresent, omniscient, and

omnipotent god, who has given me the courage, patience and efficiency to completethis research investigation.

I would like to thank express the sense of gratitude to Mr. Vipul Shah (Regional

Manager), Mr. S.S. Sachdeva (Branch Head) and Mr. Abhishek Vohra (Mktg.

Manager) under whose assistant I am doing this research project. I owe my vote of

thanks to my Project Advisor Ms. Santosh

I would like to express my feelings of indebt ness and cordial thanks to my

family members for their valuable suggestions.

And I owe my vote of thanks to all my friends who stood by me during this research

investigation.

At least I would like to thank all the respondents who were surveyed to collect

the information for the present study.

I wish to record my gratitude for all those persons who are not mentioned here

but without whose support this task would not have been possible.

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Title of Thesis : "Customer Research

Name of Student : Harpreet Kaur Legha

Roll No. : 520313461

Field of specialization: Marketing

Name and designation : Mrs. Santosh of Major Advisor

Year : 2004

Name of the University : Sikkim Manipal University

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CONTENTS

CHAPTER TOPIC PAGE NO.

1 INTRODUCTION 1-28

2 REVIEW OF LITERATURE 29-33

3 RESEARCH METHODOLOGY 34-36

4 FINDINGS AND ANALYSIS 37-52

5 SUMMARY AND CONCLUSION 53-57

APPENDIX (questionnaire)

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Chapter-1 INTRODUCTION

About Company

LG Electronics, Inc. was established in 1958 as the pioneer in the Korean consumer

electronics market. The company is a major global force in electronics and information

and communications products with more than 64,000 employees working in 76

overseas subsidiaries and marketing units around the world. With annual total revenues

of more than US $16.9 billion (non-consolidated).

LG Electronics' goal is to enable the intelligent networking of digital products that

will make consumers' lives better than ever.

The name LG has become synonymous with innovation.

LG (Lucky Goldstar) Electronics was established in l958 as Gold star companybut

its corporate name was changed to LG Electronics in 1995, as apart of an effort to make

the company a major player in world market. LG Electronics is the original consumer

electronics, communications & household appliance company of South Korea. Founded

in 1958, it is a 50,000 strong global organization, active in 180 countries, forging digital

solutions for the home, office and mobile environments. LG Electronics is a major

global player in electronics & telecommunications, operating 72 subsidiaries around the

world with over 55,000 employees worldwide. LG Electronics focuses on Digital TV,

CD-RW, DVD, CD-ROM, DVD-ROM Drives, PCs, Monitors, Mobile Handsets, CRTs

and PDPs.

1.1 Corporate identity

1.1(1) LG Slogan / Signature

"Life's Good" signature is an expression which reflects belief that life is

enriched and enhanced by products that are ingeniously designed and expertly

built.

"Life's Good" expresses the heart or 'attitude' of LG world-wide.

"Life's Good" also expresses companies will to provide solution for an

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enriched, good life by continuously developing innovative and delightfully smart

products.

"Life's Good" is a brand promise that delivers on our conviction in making your life

good.

The LG Electronics Life's Good signature consists of the LG logo and the LG letters

and the slogan Life's Good, set in the Charlotte Sans typeface, curved around the LG

symbol. The curving of the slogan reinforces LG's personality and uniqueness. The

consistent usage of this signature helps to clearly identify and connect every division

and product form LG Electronics across the globe.

1.1(2)

Corporate Name LG Electronics Inc.

Established October 1, 1958 (As a private Company)

Corporate Office LG Twin Towers 20,Yoido-dong, Youngdungpo-

gu

Seoul, Korea 150-721

Tel: 82-2-3777-1114

URL: http://www.LGE.com

Chairman & CEO Mr. S.S.Kim

Business Area and Digital Display & Media Company

Digital TV, PDP, Monitor, CD-ROM Drives,

DVD- Main Product ROM DrWes CD Rewritable Recorder, VCR,

DVD Player, Audio, Security System, Recording

Media, Video Phone, PC Camera, Banking

Automatic System , PCB

Digital Appliance Company

Air Conditioner, Refrigerator, Microwave Oven,

Washing Machine, Vaccume Cleaner,

Compressor for Air Conditioner, Compressor for

Refrigerator

http://www.lge.com/http://www.lge.com/

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Telecommunication Equipment & Handset Company

TDX, STAREX, optical switching systems,

Implementation of advanced IBS (Information Building

System), System Integration (SI) service, etc.

Implementation of advanced IBS (Information Building

System), System Integration (SI) service, Handsets for

satellite, mobile multimedia and IMT-2000 services, etc.

Number of 64,082(27,814 in Korea/ 36,268 overseas)

Employees

1.1(3) History of LG Electronics

The 1950's

1958 GoldStar (today's LG Electronics) established

1959 Korea's first radio produced

The 1960's

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

1965 Korea's first refrigerator produced

1966 Korea's first black & white TV produced

1968 Korea's first air conditioner produced

1969 Korea's first washing machine produced

The 1970's

1974 GoldStar Communication went public

1977 Color TV produced

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

The 1980's

1980 First EU sales subsidiary in Germany (LGEWG) established

1982 Color TV plant in Huntsville in the US established

1984 Sales surpassed 1 trillion Won

1986 European-standard VCR plant in Germany established

1989 Sales subsidiary and a joint production subsidiary in Thailand established

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The 1990's

1990 Ireland-based design technology center established

1993 With the establishment of Huizhou subsidiary, China, marketing in China begun

full swing

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

1997 40-inch PDP TV and the world's first IC set for DTVs developed; India

production subsidiary (LGEIL) established

1998 World's first 60-inch PDP TV Developed

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

The 2000's

2000 LG Information & Communications merged, the word's first Internet-enabled

refrigerator launched; global sales of refrigerators reached the number one position

2001 Asynchronous 1MT-2000 equipment commercialized; the world's first Internet-

enabled washing machine, air conditioner, and microwave oven launched; LG-Philips

CRT, a joint venture with Philips established

2002 Under the LG Holding Company system, the Company spun off to LG

Electronics (LGE) and LG Electronics Investment (LGEI); the first home networking

system commercialized in the global market

2003 World's first synchronous-asynchronous IMT-2000 mobile phone developed; the

world's largest 76-inch PDP TV developed; CDMA mobile handsets took the largest

share in the US CDMA market

1.2 Vision

Global Top 3 By 2010

LG Electronics sets its mid-term and long-term vision anew to rank among the top 3

electronics, information, and telecommunication firms in the world by 2010.

As such, they embrace the philosophy of "Great Company, Great People," whereby

only great people can create a great company, and purpose to growth strategies

involving "fast innovation" and "fastgrowth." Likewise, they seek to secure three core

capabilities: product leadership, market leadership, and people-centered leadership.

1.2(1) Growth

Strategy Fast Growth

Fast growth is the result of strategies designed to expand the market size and earnings

quickly, in the process improving the growth rate in terms of monetary value rather than

quantity.

Fast Innovation

Fast innovation involves setting extremely high innovation goals and securing a

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competitive edge, aiming for a target of 30% more than what our competitors can do.

Fast innovation also means 30% more sales and

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improvement in our market share, new product development and unveiling these 30%

faster, technology development and establishment of corporate value three years ahead

of competitors.

1.2(2) Core Capabilities

Product Leadership

Product Leadership refers to the ability to develop creative, premium products through

specialized new technologies.

Market Leadership

Market Leadership refers to the ability to achieve the "LG brand is No. 1" goal backed

by its formidable market presence worldwide.

People Leadership

People Leadership refers to talented people who perform excellently by internalizing

and practicing innovations.

1.3 Corporate Culture

Though a company implements perfect management strategies and boasts of

outstanding and talented people, it should have an appropriate corporate culture to

unleash the power of these capabilities.

No 'No'- Challenge: Company foster a corporate culture whereby they suggest an

alternative before saying "no" and aggressively work towards fulfilling their goal.

'We' not 'I': Company pursues a corporate culture whereby we embrace a strong

teamwork.

Fun to work:Company creates a workplace where individuals' creativity and freedom

are respected and working is made fun.

1.4 Brand Identity : Delightfully Smart

'Delightfully Smart' brand identity stems from the spirit that is captured by LG.

LG is delightful (consumer-oriented) because those who encounter LG products

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found LG with delight. For people who are inspired by the latest digital technologies,

advanced designs and styling, and innovative yet practical functions, choosing LG is a

form of self-expression, and self-satisfaction, an amazing comfort in knowing you made

the perfect decision.

LG is smart (product-oriented) because its products are smart and developed

fundamentally to provide smart solutions for your everyday problems. 'Smart' is the

expression of the means and the way that their products are innovated. LG products

enhance consumers life with their intelligent features, intuitive functionality, and

exceptional performance.

1.5 Brand Personality

To LG signature and the graphic elements that support it also radiate the innovative

spirit is truly responsible for the development of its superior products. The final result is

an expression of premium quality that is friendly, easy-to-use, and guaranteed to make

life more livable. LG is dedicated to making life Delightfully Smart.

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1.6 Financial Highlights Financial Highlights (in billion won)

1997 1998 1999 2000 2001 2002

SALES 9,239.7 9,852.8 10,546.1 14,835.7 16,601.0 18,602.9

Domestic 3,503.2 2,569.8 2,704.0 4,881.2 6,084.1 6,654.9

Export 5,736.5 7,283.0 7,842.1 9,954.5 10,516.9 11,948.0

Ordinary

Profit

Ordinary

Profit

115.9 167.1 2,587.9 728.5 573.7 675.2

Table 1.1

Sales Revenues(in billion won)

Domestic Overseas Total

2003 1,946 3,702 5,648

2002 2,083 3,193 5,193

2001 2,210 2,753 4,963

Table 1.2

1.7 Labor-Management Relation

LG Electronics chooses to promote harmony and build constructively on a labor-

management relationship rather than an employee-employer relationship. This shows

that the company encourages horizontal type of hierarchical relationship between

management and workers. Where each party on equal footing and working together

based on mutual trust and respect.

1.8 Digital Appliance Company

The LG Digital Appliance Company is fast becoming the leader of the global home

appliances industry, ranking No.l in sales of air conditioners, microwave ovens, andcanister vacuum cleaners. LG Electronics was the first company to commercialize a full

line of Web-

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enabled home network appliances including refrigerators, washing machines,

microwave ovens, and air conditioners, and is increasingly seen as a leader in premium

appliances.

1.9 Management by Principle

(Fair and Transparent Management)

LG Electronics management seeks to employ fair and transparent methods in all its

transactions to compete fairly and to elicit customer acceptance and loyalty. LG

Electronics aims to become a superior and highly competitive company based on

customer-oriented services. A fair and transparent management is one of LG

Electronics' corporate ethical criteria.

LG Electronics strongly believes that this is the way towards achieving the status of a

superior, world-class corporation. The company will continue to pursue its goals

together with its partners in an environment of mutual trust and cooperation

1.10 Pioneering Spirit

LG Electronics takes the initiative in leading the development of Korea's electronics

industry through a pioneering spirit of transforming vision into reality. In 1959, the

company manufactured the radio, the first undertaking of its kind in Korea.

Furthermore, the company achieved other firsts in the country by developing

telephones, refrigerators, and black & white television sets.

LG Electronics is one of the country's pioneers, spearheading Korea's electronics

industry since its inception 40 years ago. This success was made possible because of

LG Electronics' boldness in product innovations and its fearlessness in accepting many

challenges.

LG Electronics espouses and believes in the dictum "No Success without

Challenge" as it proudly exercises its global leadership in the field of digital TV, PDP

TV, and other state-of-the-art products.

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1.11 Strategic Alliance

As a response to the rapidly changing digital era, LG Electronics is aggressively

pursuing global partnership in selected business and technology areas by establishing

wide-ranging strategic alliances with world leading companies. In particular, with focus

of digital management moving turning toward becoming first mover in the market and

leading the industry standard, LG Electronics is concentrating on strengthening

strategic alliances in the digital TV industry

1.12 Core Values

Changing your way of thinking can change the world. Hatching new ideas is how LG

elec. give the customer greater value. A corporation's core values are mirrored in its

business performance.

Innovation: Creating new and unique values

Openness: Open-minded response to changing environment

Partnership: Establishing cooperative relationships to ensure the best performance

1.13 Core Competences

LG's digitalists are building up marketing experience and technical expertise for greater

competence. Intriguing designs for an intricate network. Their core competences are

indispensable for growth into a global digital leader.

The ability to develop unique product concepts with new proprietary

Technology:

technology ahead of others and then commercialize them

Design: The ability to plan projects and business effectively to maximize results

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The ability to create win-win relationship opportunities based on one's

Networking:

strengths in specific sectors and make them into assets

1.14 HR Values of LG Electronics

In LG Electronics HR Values are based on an individual's creativity and autonomy.

From this four sub-values are derived - emphasis on competency, performance based

rewards, equal opportunities, and a long-term perspective.

Total five values are the basis of LG's main HR System -

Organization

Recruitment

Development

Appraisal

Compensation

The end result of this is the establishment of Human Resource systems that directly

realize company's management philosophy and business strategy.

1.15 Production Plants

LG setup its first factory in Noida in 1998 with an investment of over Rs500 crore.

Spread over 47 Acres, the plant is one of the most modern and automated installations

of its kind in India. The facility which had an initial capacity to turn out 5,00,000

CTVs, 1,00,000 Semi-Automatic washing machines, and 1,00,000 Air conditioners, has

been ramping up as well as adding new products like refrigerators, microwave Ovens,

monitors, and PCs. LG also setup a compressor plant at Noida in 2003.

From 1997 till 2003 LG pumped Rs530 crore, with another Rs 1000 crore to come in

next three years to 2007. So the cumulative investment in India till 2007 will be close to

Rs 600 crore.

On the expansion front, to start with, a second unit is coming up at Ranjangaon near

Pune. This new facility, scheduled to commence operations by August 2004,

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will initially manufacture CTs and refrigerators, and scale up to finally produce the

entire range. LG will invest Rs500 crore in Pune over the nest five years. With the

opening of this new plant the company foresees the increase in the contribution of the

Indian subsidiary from 5 percent to 10 percent by 2010.

1.15.1 Coverage

LG covers India with 72 regional offices, 61 central area offices, and 43 branches.

Additionally it has over 112 area offices at the district level. Below these area offices

there are 80 remote area offices currently, which LG plans to scale upto 200 by next

year, so that it can reach out to the rural market in a better way and feel the pulse of the

consumers and the dealers there. In addition, its association with the health platform

and cricket helped it in the wrest a strong position in the mindspace of consumers in

rural India.

1.16 Main Products

Refrigerator Air GSM CTVs Washing Microwave Vacuum

1.17 AWARDS

2003

LG Electronics DI wins Digital Management Grand Prize in Korea Digital

Competitiveness Improvement Exhibit.

March 2003 Super-thin interior wall-hung air-conditioner (Low-noise and

highly efficient super-thin wall-hung) wins IR52 Jang Yeong-sil Prize.

Cdma2000 lx color mobile phone wins 'IF Design Award 2003' gold award.

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2002

Cyon 65,000-color Handset Wins Grand Prize at Ergonomic Design Awards.

DIOS Refrigerator and PDP TV Obtain Environmental Declaration of Products

Certificate LG Electronics.

Cdma2000 IX EV-DO Handset Wins Good Design Presidential Award (with

digital camera).

LG Electronics Digital Storage Division Selected as One of Top 50 Companies

in Quality Excellence, etc.

2001

DVD of the Year, U.K. (LG Electronics DVD player)

Best Monitor Brand in Brazil (LG Electronics monitor)

TP Grand Prize, Management Association of Japan For two consecutive years

LG Electronics was the only Korean company to receive the award

Presidential Commendation, Korea Management Productivity Awards, etc.

2000

Top 50 Products for the Teenagers (MP3 player and microwave).

Diamond Award, World Best Award given by Korea Management Association.

LG Electronics' Flatron monitor and CD-RW won the award in Product Strength

area; 64 inch digital TV won the award in Development Strength.

Grand Prize, Korea Marketing Awards for FLATRON, WHISEN.

"Energy Winner," Dios inverter refrigerator

Best Product Design (Japan)

New Media Grand Prize (DVD player and iris recognition security system

And so on.

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1999

LG Electronics becomes the first in the world to obtain KITE mark (safety

standard mark) from the British Standard Institution for digital TV.

According to a survey conducted by Business Today, a leading English daily

of India, LG's initial recognition rate of 31% is the best brand among consumer

durable brands in India. LG beat out such locally well- known brands like BPL and

Onida.

LG Electronics was selected as the Company of the Year for the Marketing

Best part by A&M, a leading Indian business magazine.

Business World, an English economic daily, selected LG Electronics as No.

1 in Ethical Conduct among 100 most respected companies in India.

Etc.

1998

VCRselected as the Best Product by Choice magazine in Australia

Monitor selected as the best product by Info PC magazine of France

Air conditioner selected as one of Best consumer buy product in U.S

PC Camera selected as the best product by the PC Magazine of the U.S.

LG Electronics wins the Grand Prize forLabor-Management Partnership.

Etc.

1997

Best in Labor-Management Harmony, Kangwon region in Seoul

Industrial Technology Innovation Award

Grand Prize, Excellent Designs (for best product design, 5th time since 1993)

Presidential Award, Multimedia Technology Awards.

And so on.

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1.18 LG ELECTRONICS INDIA PVT. LTD. (LGEIL)

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South

Korea was established in January 1997 in India. It is one of the youngest consumer

durable brands in the country today, encompassing an impressive portfolio of Colour

Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators

(Direct Cool and Frost Free), PCs, Vacuum Cleaners and optical storage devices and

GSM mobile phones. During the six years of its existence in India, LG has earned a

premium brand positioning due to its superior quality, high product performance,

revolutionary technological delivery and warm service Infact, today LG is recognized

as a leader in setting industry norms starting with the fastest ever-nationwide reach,

latest global technology and product innovation. The company aims to achieve a

turnover of Rs 7000 cr in 2004 and an enviable position in the GSM mobile phone

market which they have entered late 2003.

LG Electronics India is the fastest growing company in the consumer electronics,

home appliances and computer peripherals industry today. LG Electronics is

continually providing superior technology products & value for money to over 50

lakh households in India.

1.19 Company's plan

The company envisages a total investment of US$289 million over the next 9 years to

facilitate the production of its international range of electronics and appliances.

In the first phase of investment, from 1998 to 2001, the company plans to invest US

$100 million to establish manufacturing facilities in Greater Noida. The facility has

started production since April 1998.

In the second phase (2001 to 2005), the company will see an additional investment of

$100 million, to extend the manufacturing capacities to include the manufacture of

compressors, fly back transformers, motors and deflection yokes.

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for 2003 , This years results has further established for us a more solid operational

platform . Year 2003 has seen LG being recognized as an innovative and an exciting

brand by introducing state of art product line up in the country. We are confident we

can build on the success of 2003 and can further augment our growth with more

consumer oriented and feature rich products."

1.20(3) Consumer Electronics

LG Electronics has recorded a growth of 37 per cent in the consumer electronics

division having achieved a cumulative figure of Rs2049 crores contributing to 46 per

cent of the total turnover. The key focus areas in 2004 will be the hi-end products. The

target for this division for 2004 is Rs2600 crore, which will be a growth of 27 per cent

over 2003.

1.20(4) Home Appliances

LG Electronics in Home Appliances (HA) has clocked a record turnover of Rs 1996

contributing to 44 per cent of the total turnover, an increase of 32 percent over last year.

This is a phenomenal growth as compared to the industry growth and the trends. The

Home Appliance division is expected to make major dents in the Indian market and is

expected to grow by 67 per cent over 2003. This Division expects to touch Rs 3340 cr

this contributing about 48 per cent to the total turnover in 2004 .

1.20(5) IT Division and GSM

The IT Division of LG Electronics has recoded a growth of 43 per cent contributing to

10 per cent of the total turnover. The targets for 2004 will be a growth of 70 per cent at

Rs 760 cr. The foray into GSM mobiles in the later half of 2003 has made a mark in the

the market and the company hopes to be the number two player by end 2004. To

achieve this ambitious target the company has set a target of Rs 350 cr turnover by

2004. LG Ranked World's No. 1 IT Company.

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1.20(6) Other Achievements

LG Electronics reiterates its commitment by announcing its new plant in Pune which

will become functional from August 2004.

1.20(7) In a "Great Company" Dreams Come True

We are committed to help create a world where people live with convenience and

affluence. By simply pressing a few buttons it interlinks inside and outside a home

enabled with digital, electronics, and infotech hybrids. A world in which every one gets

information and communications easily and in real time via ubiquitous wired-wireless

networks. That's what we are dreaming of now.

Presently, we carry on restructuring with the all-out support of labor-management.

Enhancement of excellence in every task is a critical ingredient for achieving the vision.

Our talented workforce is expanding as we usher in anticipated future growth.

Coordinating human and corporate resources, we make our way to become a "Great

Company."

We extend appreciation to our shareholders, customers, and employees whose

unsparing support is a vital force for us in realizing our vision." Mr. K.R. Kim,

Managing Director, LG Electronics India Ltd., said, "I am extremely pleased with our

performance, as we have been able to sustain growth during a year of slowdown in the

consumer electronics and home appliances industry." And "Our growth record has led

us to expand manufacturing presence in India. We have accordingly reinforced our

sales and distribution network through the concept of area offices to reach out more

Indian consumers in semi urban and rural India."

Mr. S.S Kim

LG is India's youngest and fastest growing consumer durable brand, LG at the no.

one slot has targeted to end the year with a turnover of Rs7,000 crore. By 2010 it is

gearing up to join the Rs30,000 crore leagues. After China, LG plans to make

India its second largest hub.

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1.21(1) LG - Ludhiana Branch

Stations coming under ludhiana branch:

Ludhiana

Patiala

Khanna

Jagraon

Fatehgarh Sahib

1.21(2) Organisation Structure

Organization-Structure of LG Electronics India (P) Ltd. Ludhiana.

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1.21(3) Departments

There are five departments at LG's Ludhiana Branch.

1. Marketing

2. Sales

3. Accounts

4. Logistics

5. Service

Marketing

Marketing department mainly works on increasing the sales of various products.

Marketing Dept. works in coordination with other departments. Here various schemes

are developed for the customers. It looks after each and every advertisement

requirements. Objective of marketing department

Create Brand Visibility across available mediums which would help generate higher

recall value, quick conversions on the floor, beat functional benefit over emotional

benefit beyond pricing architecture. Specified route is through:

1. Signage: In-shop and shop front.

2. Outdoor: Banner, Hoarding, Social signage, Traffic signage, Window display etc.

3. POP

4. PR

5. Press Innovations

6. Road Shows

7. Event Signage

8. Exhibitions

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Various activities/schemes undertaken by the Marketing Department are:

Promotion Campaigns

Exhibitions

Road Shows

Lucky Draws

Gifts with every purchase

0% Interest

Free Gifts with every purchase

Holiday coupons

Scratch cards

Cookery class

Cookery competition

Major Offers launched current fiscal are:

Sona Chandi Offer

Triple scratch offer

Gifting smiles

Exhibition - at Baron

Celebrate Monsoon with LG

Road Show for GSM

Uphaaron ki Barsaat

1.22 Advertising

The term 'advertising' is derived from a Latin word 'advertere' which means 'to turn' the

attention. Every piece of advertising turns the attention of the readers or the listeners or

the viewers or the onlookers toward a product or a service or an idea. Therefore, it can

be said that anything that turns the attention to an article or a service or an idea might

be well called as advertising.

It is a tantalizing technique of popularising a product. It is that magic force which turns

an instinct in to acquisition, a desire into demand and a dream into reality by

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influencing the consumption, directing the production, diverting the distribution and

affecting the very course of exchange.

1.22.1 Advertising at LG

LG takes advertising very seriously, to increase the visibility of their brand they are

having huge budgets for Advertising and are really spending on that too. May it be the

In-shop branding or Out door Advertising.

1.22.2 In-shop Branding

In-shop branding refers to the branding at the dealer counter.

70 % of the buying decisions are made within the three feet of the retail shelf. 42 % of

brand purchases made in-store are made when there is at least one piece of POP present

for that brand". KSA Technopak.

It includes various types of different advertisement products:

Sol.Vinyl on Sunboard One way Vision Film

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In-shop branding is done to give an impact on customers mind regarding the LG's

image.

1.22.3 Outdoor Advertising

Outdoor advertising stresses on placement of the various advertisements at prominent

locations in the city, to increase brand visibility and brand recognition. Outdoor

Advertising is mainly done to make the customers aware of the new Schemes, Offers,

etc. Outdoor Advertising consists of:

Banners

Dumps

Flex Signs

Nonlit Flex

Bus Shelters a Hoarding

Kiosks

Banner

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Huge Nonlit Flex boards are installed at various Dealers in Ludhiana:

Navrang Electronics.

Batra Gallery.

Info 2000

R.K. TV center

1.22.4 Major Advertising Vendors of LG (Ludhiana Branch):

Gorgeous (Ludhiana)

contact person: Mr. Prakash

Omways (49, Harpal Nagar, LDH.)

contact person: Mr. Sunil Mitra, Mr. Kuldeep

Kamal Arts (Opp. Freeman's, Fzr. Road. Ludhiana)

contact person: Mr. Kamal

Gorgeousis serving LG in 8 cities.

It provides:

Bus Shelters a Dumps

Guide Maps

Hoardings (Bus Stand/Railway Station)

Kiosks

Various sites where Gorgeous is providing its services (July 2004):

Ludhiana

Dump(l) Rani Jhansi Road.

Bus Shelter (2) Chandigarh Road & Model Town

Guide Maps (10) within city

Amritsar

Bus Shelters (5)

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Hoshiarpur

Bus Shelter (1) Tanda Chaowk.

Moga

Bus Shelter (2) GT Road.

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Phagwara

Bus Shelter (2) GT Road.

Khanna

Bus Shelter (1)

Bathinda

Bus Stand Hoarding 40'x20'

Railway Station Hoarding 40'x20'

Omwaysprovides various kinds of signage to LG (inshop and outdoor both).

Sol.Vinyl on Sunboard

One way Vision Film

Mirror Acrylic

Nonlit Flex

Backlit flex

Front lit flex

Solvent printed flex

All the Dealer signage is provided them. They serve various branches of LG, across the

Punjab and Jammu.

Kamal Arts supplies banners to LG for various branches of LG.]

Cloth banners, with 3-4-color printing are provided at reasonable cost.

They also make arrangements for the installation of banners at various locations in

Punjab.

Banners are considered to be the cheapest and effective mode of advertising. These

are installed at prominent locations, which provide maximum exposure to the general

public.

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Objectives

To study the effect of advertisement on purchase behavior of consumer.

To study how the Brand image/recognition of company is affected by

advertisement.

To measure the advertisement effectiveness of LG advertisements.

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CHAPTER - 2 REVIEW OF LITERATURE

STARCH devised a method for measuring readership of advertising. Numerous

studies conducted by him, these studies also found that the proportion of issuereaders who purchase, was influenced by the level of readership of the

advertisement and by the persuasive, activating powers of advertising. He

believed that informativeness, helpfulness and believability of advertisement

impressed, persuaded and activated people to buy. His findings revealed that

coloured advertising attracted about 50% more readers than black and white

ones. Findings also revealed that repetition of the same advertisement after the

interval of a month up to 6 or 7 insertions, apparently did not cause decline in

readership.

STARCH (1931) while analyzing over 3000000 inquiries received by 98 firms

from 2339 advertisements found that coloured advertisement brought 57% more

replies that the black and white of the same size and character; advertisement

inserted on right hand side of the page of the magazine/ newspaper, etc. brought

14% more replies than similar on the left side; advertisement in women

magazine brought more than twice as many replies circulation; double page

advertisement brought nearly twice as many replies as single page

advertisement, number of enquiries was almost exactly proportional to the size

of the advertisement; the advertisement in the monthly magazine brought 46%

of their total replies during the I" month after the insertion of the advertisement.

SCITOVSKY (1951) is of the opinion that advertising depends upon the

ignorance of people to whom it is addressed. The more ignorant the buyer, the

more he relies on advertisement.

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HILL(1960) explored that public concept of advertising was partially inherent in the

nature of advertising but reflects the personality of the viewer,

COFFIN(1963) conducted a pioneer experience to asses advertising effectiveness

and disclosed that the total Effectiveness of advertisement could be measured in terms

of product based on the size of Audience multiplied by Impact/number of audience.

E =A * I

GOLDMAN(1963) said that advertising is a source of information, as a time

saving device and as a assurance of a quality. While consumer is examining and

weighing various advertising messages, his/her mental attitude towards the advertised

brand in undergoing a number of changes.

ENGSTRON (1965) concluded that advertisement helped to find the commodity

where it was sold.

MCDONALD(1970) found that consumers exposed, two or more times to an

advertisement are 5% more likely to switch to the advertising brand.

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BOGURT ET AL (1970) specified that advertisements pay in the long run, even those

messages which leave virtually no discernible memory, trace at all may through the

force of repetition ,turn out to have a residual effect.

KOTTMAN(1970) reported that the truthfulness of advertising was not a serious

weakness, but incredibility of beliefs and trust in some advertising lessened the

effectiveness of all advertisements.

VALIENTE(1973) informed that the recognition of print advertisement was

dependant more on their size, colour, and number of illustration than on their content.

JOLLY(i974) conducted the study to find out the effect of advertising on the

consumer decision. She reported that there was some effect of retail advertising while

making the decision by the consumers. The respondents expressed that retail

advertising was an important source of information in order to know about newbrands

and services.

MICHAEL AND ARNON (1976) found that the recall of advertisement is widely

used as a measure of advertising effectiveness. The rationality of using it is the belief

that recall of an advertisement is a necessary condition for change in attitude and

behaviour.

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Advertisers hypothesizes that if the purpose of advertising is to sell, it must

communicate. Best and good advertisements are those that will produce the greater

memory impression.

RAJ (1982) found that-the different advertising effects on purchasing behaviour of

consumers of varying brand loyalty. In a frequently purchase product class, consumers

of high loyalty increase brand and product purchase. While advertising for that brand

increase, at low loyalties there is little impact. Effect of increased advertising carries

over a few months after advertising is lowered back to normal.

INTZ ET AL(1983)&GARDENER(1985)maintain that attitude towards the

advertisement acts as a mediator of brand attitude evaluation and high product

knowledge.

BRUKE AND SRULL (1988) suggested that advertising for competitive brands

can have detrimental effect not just on consumers memory for brands past advertising

but also on the consumers ability to learn and remember distinctive brand information

presented in the future in advertising.

From the review of various research studies it can be that the effectiveness of

advertising has been measured by research investigators using varied number of

criterion but attempts had been made to know the exact nature of processes place in

customers mind for moving toward mt. advertising is very important because of

increasing.

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The advertising has great impact on consumers; it helps the consumers to know about

the right place (the specific retail store) for the specific product. These days, due to

more competition the consumer can get the same thing from many persons. So, because

of this, the company's, through advertisement attracts the customers to come and make

purchases from their stores.

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CHAPTER - 3 Research methodology

3.1 Scope of study

The scope of the present study was extended to limited area: Ludhiana only. This study

was prepared to investigate into the important advertising factors, which affects the

sales of the company's product; to know the factors, which make advertisement more

effective.

3.2 Methodology

3.2.(l)Research plan

To meet the objectives of the study undertaken, the descriptive respondents type was

adopted.

Data source

1. Primary data

2. Secondary data

Primary data

In this study the primary data has been collected with the help of questionnaire and

personal interview.

Secondary data

The secondary data for the present study has been collected from Internet, which

includes site of LG Electronics India pvt.ltd. and others sites were also reviewed to

collect the information about advertising, consumer behaviour and also about how

advertising affect the consumer behaviour.

Various factors pertaining to objectives of research were enlisted after discussing with

the advisor. Later on they were given the shape of questionnaire; every

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attempt is made to make it as precise as possible so that the consumer can provide the

information without spending lots of time and effort. The questionnaire was

administered to the assistant manager of the branch of the company. The questionnaire

has been given in appendix.

3.2(2) Research approach

Survey research was adopted.

3.2(3) Research instrument

Information was collected with the help of questionnaire. And questionnaire includes

both open-ended as well as close-ended questions.

3.2(4) Sampling plan

3.2(4).l Universe of Study

All the customers of the Electronic Companies.

3.2(4).2 Population

All the customers of Electronic companies in Ludhiana

3.2(4).3 Sampling Unit

Any customer of Electronic companies who walks into any LG showroom in Ludhiana.

3.2(4).4 Sample Size

For collecting the data total sample size was 50 customers.

3.2(4).5 Sampling Technique

For collecting the data Non Probability Convenience Sampling Technique was used to

collect data. Various LG showrooms were visited and customers walking into the

showroom premises were selected and were given questionnaire to fill.

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3.3 Limitations of the study

Sincere efforts were made to collect authentic & reliable information from the

respondent, however the report may subject to following limitations:

The study was conducted by a student pursuing his academic studies.

Due to time constraints, a more meaningful and statistically relevant sampling

technique could not be used.

Due to resource constraints, the study was restricted to Ludhiana city only.

Biased-ness may have crept in, as some respondents were reluctant to give

information.

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Chapter - 4 Findings and Analysis

4.1. Influence of advertisement on consumer through Outdoor Advertisements as

well as Inshop Branding.

4.1.1 OUTDOOR ADVERTISEMENTS

Types of Outdoor Ads. Mean Rank

Hoarding 5.06 6

Kiosks 5.22 7

Dumps 5.28 8

Banners 2.84 1

Display vans 3.76 2

Flex Signs 4.06 3

Nonlit Flex 4.88 5

Bus Shelters 4.68 4

Table 4.1 Outdoor ads which influence the purchase decision

Outdoor Ads. Fig. 4.1

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Analysis

In Outdoor Advertising Banners are considered to be the most effective. After banners,

Display vans are ranked as the effective means of advertisement. After these, Flex

Signs, Bus Shelters, Nonlit flex are considered as the Medias having less effect on

consumer. Hoardings, Kiosks and Dumps are considered to be indifferent.

Conclusion

Banners ad is considered to be highly effective due to its placement at prominent

locations and repetition of the message coz the banner containing same message is seen

by the sane individual in lot many locations, which helps in retaining the message.

Display Vans are considered the second most effective mode of outdoor advertisement

as these provide access to the real product itself. Customer can see the product at their

convenience; customer doesn't have to go to any showroom. Hoardings, Kiosks and

Dumps are considered to be the least effective as there is lack of repetition and they are

fixed at the same location for a long period of time, and exposure to a limited no. of

people. As a Dump is on Rani Jhansi Road, Ludhiana it is exposed only to the

commuters of that specific road. Same is the case with Hoardings.

4.1.2 INSHOP BRANDING

Types of Inshop Branding Mean Rank

Sol.Vinyl on Sunboard 3.4 1

One way Vision Film 3.74 2

Mirror Acrylic 5.18 7

Nonlit Flex 4.02 6

Backlit flex 4 5

Front lit flex 3.82 3

Glass Sheet 3.92 4

Table 4.2

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Effect of Inshop Branding on Purchase decision

Inshop Branding medias

Fig. 4.2

Analysis

In Inshop advertisment, Solvent Vinyl on Sunboard is ranked as the highest effective

media . One-way Vision, Frontlit Flex and Glass Sheet are ranked after Sol. Vinyl on

sunboard, respectively. Mirror Acrylic and Nonlit flex are ranked lowest for

effectiveness in Inshop advertisements.

Conclusions

Solvent Vinyl on sunboard is considered to be the highly effective media as the prints

are really very clear and attractive. One way Vision film, frontlit flex and Glass sheet

are also considered to be the good as they are very attractive and different. Nonlit Flex

should not be used as an inshop branding media as it looks dull without any luminance.

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4.2. People who had recently seen advertisements of LG Electronics.

Yes No

People seen an advertisement of LG 92% 8%

Table 4.3

People who had seen the advertisements of LG

Fig.4.3

Analysis:

According to survey, 92% of respondents had seen the company's advertisement

recently. And advertisements are of different products viz. LG Flatron, LG GSM,

Refrigerator, Microwave, PC, Air Conditioner, DVD and also the collective

advertisements of all the products offered by the company for the convenience of the

consumers; these advertisements are exhibited through different medias, for example:

Television, Banners, Hoardings, Flex, Newspapers, Magazines, Roadside Dumps, and

so on. Only, 8% of respondents respond that they had not seen any advertisement of anyproduct of LG recently.

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Conclusion

Majority of respondents i.e. 92%, had seen the advertisements recently of one or the

other product of the company exhibited through different medias. So, they are aware of

recent discounts or promotional tactics of the company. Its good that a large chunk of

viewers had gone through recent advertisements as the more the person will awareness

the more will be the consumption. And moreover, the main motive of the company to

invest in any advertisement is to enlighten the general public about the presence of the

product in the market. But the remaining 8% should also be considered, as the

awareness of the product increases the product consumption. They should also be made

aware of the products of the company, because the advertisement follows the AIDA

model according to which through any advertisement the attention of the public can be

gathered, then interest and desire should be generated with the help of which the person

will decide for the final step i.e. action, whether to buy or not to buy the particular

product of a particular brand.

4.3 Advertisement factors which attract towards a particular product.

(In this the respondent has the choice to mark one or more)

4.3.1 OUTDOOR

Factors Percentage Rank

Message 18% 5

Model 48% 2

Media 78% 1

Color 26% 4

Location 38% 3

Table 4.4

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Factors which affect advertisement effectiveness

(outdoor)

Fig. 4.4

Analysis

According to the respondents in Outdoor Advertisement media is the most important

factor that affect the advertisement effectiveness. 78% of respondents respond that

Media is very important factor, 48% of respondents responds that model is also an

important attribute which affect the effectiveness of an advertisement. 38% respondents

considered that location where the advertisement is done is also important. Here, in this

like the advertisements exhibited roadside, etc., basically the area where the

advertisement is exhibited. 18% of respondents responds that message of an

advertisement is important.

Many people got influenced with the model which enacted in advertisement, which can

have a great effect on effectiveness of an advertisement. The media to be chosen

depends on its reach, frequency, etc. Before deciding upon any media for any type of

advertisement the person (advertiser) must take into consideration the reach, frequency

and impact of advertisement through that particular media on masses.

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The message should be properly framed, clear, and concise for an effective

advertisement. In printed advertisement the advertisement copy should be appropriately

displayed to catch the attention of the reader

Conclusion

More than half of the respondents i.e. 78% considered that media is the most important

attribute, which affect advertisement effectiveness. The media to be chosen depends on

its reach, frequency, etc. For example: an electronic company wants to give an

advertisement related to festive offer say: Diwali offer then at that time the media to be

chosen should reach the maximum number of people like: Television, Newspaper, etc.

and like for any exhibition in a particular area, the effective media for its advertisement

can be the local cable channels, local newspapers (Ludhiana Newsline, Hindustan

Times, etc.), Leaflets, Glow signs, Banners, etc.. Less than half i.e. 48% of respondents

respond that model is also an important attribute, which affect the effectiveness of an

advertisement. Many people got influenced with the model that enacted in

advertisement For Eg. As Yuvraj Singh is featuring in the ads of LG GSM, so the

people who are influenced by Yuvraj's performance in Indian cricket will be attracted

toward LG GSM mobile phones. A small number of respondents considered that

location as well as message is considered to be less effective.

4.3.2 INSHOP

Factors Percentage Rank

Message 20% 5

Model 26% 3

Media 24% 4

Colour 38% 2

Location 54% 1

Table 4.5

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Factors which affects inshop branding

Fig. 4.5

Analysis

According to survey, location is the most important attribute for affecting effectiveness

of an advertisement. 54% of respondents respond that location, where the advertisement

is exhibited is the most important attribute that affects advertisement effectiveness in

inshop advertisement. After location, it's the color of the advertisement which is

responded as second most important factor. Message and model along with media also

plays a significant role in making an advertisement effective.

Conclusion

As all these attributes are equally important to make an advertisement more effective

but different persons react differently for these attributes. Here, a little more than half

i.e. 54% of the respondents who were surveyed consider that location is one of the main

attributes, which affect the effectiveness of an advertisement. Location is the area

where the advertisement is displayed viz. in front of door, near window, walls, roof, etc.

location should be appropriate and proper i.e. the person can view the advertisement

from any side in the shop or so. The advertisement should be displayed in such a way at

proper place that the viewer or the reader could retain it. After location and color,

respondents respond that message, and model along with media also plays a significant

role in making

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an advertisement effective. Here message is basically what the advertiser wants to

convey to the other person through a particular advertisement displayed through

different Medias; model is the person used in the advertisement any superstar, cricketer

or any other famous celebrity, etc. (Yuvraj Singh, Neha Dhupia, etc.) And media is the

channel, the way through which an advertisement is being displayed by the advertiser.

4.4.1 Extent to which the Outdoor advertisement affect the purchase decision.

Findings

Affect Percentage Rank

Very High 52 1

High 38 2

Low 8 3

Very Low 2 4

Indifferent - 5

Table 4.6

Outdoor advertisement affect the purchase decision

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Analysis

52% of respondents are said that outdoor advertisement affects the purchase decision to

great extent. Less than half 38% of respondents surveyed consider that outdoor

advertisement has high effect on the buying decision of the consumer. According to the

survey a very few, i.e. 10% of the respondents consider that outdoor advertisement did

not effect the purchase behavior of any person.

Conclusion

Generally the advertisement is done to increase the sales of the product by making

people more aware of the product and affecting the purchase behavior of the masses.

According to the survey, 52% of respondents are responds that outdoor advertisements

affect the purchase decision to great extent. Less than half 38% of respondents surveyed

consider that outdoor advertisement has effect on the buying decision of the consumer.

A very few, i.e. 10% of the respondents consider that outdoor advertisement did not

effect the purchase behaviour of any person.

4.4.2 Inshop advertisements affect the purchase decision.

Findings

Affect Percentage Rank

Very High 44% 1

High 36% 2

Low 18% 3

Very Low - 5

Indifferent 2% 4

Table 4.7Ins hop advertisement affect the purchase decision

Fig. 4.7

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Analysis

According to the respondents inshop advertisement also affect the purchase decision of

the person. 44% considered that inshop advertisement affect the buying decision to

great extent, i.e. inshop advertisement has very high effect on buying behaviour of the

person. And 36% responds that advertisement has an effect on purchase decisions. 20%

of respondents consider that inshop advertisement has a low and indifferent effect on

purchase decisions.

Conclusion

According to the respondents inshop advertisement also affect the purchase decision of

the person. 44% considered that inshop advertisement affect the buying decision to

great extent, i.e. inshop advertisement has very high effect on buying behaviour of the

person. And 36% responds that advertisement has an effect on purchase decisions. 20%

of respondents consider that inshop advertisement has a low and indifferent effect on

purchase decisions

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4.5 Advertisement affects the brand image. Findings

Important Percentage

Yes 95%

No 5%

Table 4.8

Advertisements affects the brand image

Fig. 4.8

Analysis

Majority i.e.95% of respondents responds that the advertisement has an effect on brand

image. And 5% are of the opinion that they don't know whether brand image is affected

by the advertisement or not.

Conclusion

All most all the respondents included in the study believes that brand image is affected

by the advertisements by the company.

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4.6.1 Inshop branding important. Findings

Important Percentage

Yes 98%No 2%

Table 4.9

Fig. 4.9

Analysis

98% of respondents surveyed said that inshop branding is important. Just 2% of

respondents consider that inshop branding is not important.

Conclusion

Majority, all most all, 98% of respondents consider that inshop branding is very

important.

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4.7 Person got influenced by advertisement.

Findings

Influenced Percentage

Yes 80%

No 20%

Table 4.11

Person get influenced by adMatisensrts

Fig. 4.11

Analysis

80% of respondents consider that they had purchased the product after watching its

advertisement. And remaining 20% responds that advertisement has no effect on

their purchases.

Conclusion

Majority of the respondents are of the belief that advertisements influenced their

purchase decisions

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4.8 Rank the following accordingly; whether advertisements given by LG

shows the following:

Findings

Attributes Mean Rank

Honesty 3 2Reliabilit 3.8 4Readability 5.2 6

Convincing Ability 2.5 1Attention Getting 3.4 3

Sellin Abilit 4.9 5Table no. 4.12

Respondents consideration about advertisements

Fig.No. 4.12

Analysis

Here, respondents marked the convincing ability in advertisement as no. one. After

convincing ability, honesty, attention and reliability are ranked. The least ranked

attributes are considered to be he readability.

Conclusion

Majority of respondents believes that the convincing ability of advertisements of LG is

very powerful and is ranked as no. 1.

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Chapter 5 Summary And Conclusion

LG (Lucky Goldstar) Electronics was established inl958 as Gold star company but

its

corporate name was changed to LG Electronics in 1995, as apart of an effort to make

the company a major player in world market.

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). The trend of beating industry norms started with the fastest

ever-nationwide launch by LG in a period of 4years with the commencement of

operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater

Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

Marketing department mainly works on increasing the sales of various products.

Marketing Dept. works in coordination with other departments. Here various schemes

are developed for the customers. It also looks after each and every advertisement

requirement. It does activities like: Promotion Campaigns, Exhibitions, Road Shows,

Lucky Draws, Gifts with every purchase, 0% Interest, Free Gifts with every purchase,

Holiday coupons, Scratch cards, Cookery class, Cookery competition and so on.

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Findings

Objective -1

To know the effect of advertisement on buying decision of the consumer.

Majority of respondents had seen the LG advertisements recently of one or the other

product of the company exhibited through different medias. All attributes of an

advertisement are equally important to make an advertisement more effective but

different persons react differently for these attributes. In inshop and outdoor different

attributes are ranked different and even affect the buying behaviour of different

consumers in different ways. Majority of respondents consider that inshop branding as

well as ambience of showroom is very important and plays an important role in

affecting the consumers buying decision to some or great extent. In Outdoor

Advertising Banners as well as display vans are considered to be the most effective the

means of advertisement which influence the consumer buying behaviour. In Inshop

advertisement, Solvent Vinyl on Sunboard along with One-way Vision, Frontlit Flex

and Glass Sheet are ranked as effective means of advertisement.

Objective - 2

To know how brand image as well as brand recognition of company can be

affected by advertisements.

Companies spend millions building a corporate branding identity. It's no wonder, then,

that once they've established a brand their next obsession is protecting it. A large chunk,

95% of respondents agreed with that the advertisement has an effect on brand image.

And 5% are of the belief that they don't know whether brand recognition is affected by

the advertisement or not. LG is on people's mind when they go in for purchase of any

electronic product.

Objective -3

To measure the effectiveness of LG advertisements.

Effectiveness of an advertisement is related with the access of real values of

advertisement performance by measuring the positive results of advertisements, which

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always should lead to increase in the sales of the product of the company. 80% of

respondents consider that they had purchased the product after watching its

advertisement because through this they come to know about the product, about its

quality, and many more features, and moreover about the various offers and schemes,

etc. by the company. Pre-testing is done prior launching of the full advertisement

campaign & also before incurring major expense on advertising efforts. This pre-testing

is done through check-list test in which the good qualities of an advertisement are

ranked according to the characteristics. Here in pre-testing the convincing ability of the

advertisements of the company is ranked no.l, followed with honesty of advertisements,

attention and reliability.

With the pre-testing post testing through recall test is also done, in which the person is

asked about the advertisement without allowing them to look at or listen the

advertisement, while they are answering. In this lasting impression of ad can be

measured and also shows that results are true. Here, the respondents are given the clue

about like which brand has the slogan 'expand your life' or 'life's good' and here he

answer is LG. 92% of the total respondents were also able to recall the advertisements

of LG.

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Conclusion

Its good that a large chunk of viewers had gone through recent advertisements as the

more the person will awareness the more will be the consumption. But the remaining

small number of respondents should also be considered, as the awareness of the product

increases the product consumption. They should also be made aware of the different

products of the company.

Many respondents considered that in advertising media and model is the most important

attribute, which affect advertisement effectiveness. The media to be chosen depends on

its reach, frequency, etc.

More than half of the respondents who were surveyed consider that inshop branding is

one of the main attributes, which affect the effectiveness of an advertisement. Location

is the area where the advertisement is displayed viz. in front of door, near window, on

doors, etc. The advertisement should be displayed in such a way at proper place that the

viewer or the reader must retain it. Then the colors used in the advertisements may it be

a printed advertisement or be displayed through any other media; like colours used in

the background in the audio-visual i.e. basically Television advertisement, is said to be

important feature as responded by the persons who were surveyed. After location and

colour, respondents respond that message, and model along with media also plays a

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significant role in making an advertisement effective. Here message is basically what

the advertiser wants to convey to the other person through a particular advertisement

displayed through different Medias. To make an advertisement more effective, it is

necessary that the media through which the advertisement is exhibited should be proper.

Media should have proper reach, impact and Frequency

A high-quality advertisement displayed through an appropriate media with proper reach

to target audience, right impact on target consumers and most vital, the number of times

the advertisement, shown to the audience affect the brand image and recognition of the

company to great extent.

Most of the respondents believe that they had purchased the product after watching its

advertisement because through this they come to know about the product, about its

quality, and many more features, and moreover the coming offers, etc. by the company.

When the audience are fascinated by advertisement they normally go and have a look

on the product, there seller tries to create interest in the person to purchase, try to

convince the person through which the persons desire aroused to purchase the product

and his final action will be the purchase of that particular product; where as others

responds that advertisement has no effect on their purchases.

Companies spend millions building a corporate branding identity. Majority of

respondents agreed with that the advertisement has an effect on brand image. And

others a very small number are of the belief that they don't know whether brand

recognition is affected by the advertisement or not.

The most effective part in advertisement of LG is that they have a great convincing

ability, they use to create user and also convince the non-potential buyers to buy the

product. It basically shows only the real features of the product in its advertisements.

Advertisements are attractive enough, due to which people normally easily recall their

advertisements

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Recommendations

More Flex Signs, Display Vans and Banners are to be installed as they are considered to

be the important medium for outdoor advertisement, which has more effect on the

buying behaviour of local masses. And through these one can get easily aware of the

product of the company. These are to be installed at the places where it can have the

full reach, and also great impact on the masses and also these should be installed

frequently, so that every person may get aware of the present promotional as well as the

present products of the company.

Dumps to be minimized as they have the least effect on decision making of any person.

These dumps have less reach and impact on the masses as compared to the other media.

In Inshop advertisements Sol.Vinyl on Sunboard , One way Vision Film , Front Lit Flex

are to be stressed upon for advertisements as they are considered to be the most

effective in decision making by masses. And moreover, More importance to be given to

inshop branding as well as ambience of the showroom to get more and more customers,

to increase the sales of the product.

Advertisements, through Mirror Acrylic and Backlit Flex can be reduced as they

according to the survey have the least effect on the decision of the person.

As according to respondents Brand Image get affected by the advertisements of the

company and moreover, brand image of the company affects its sales and profit

earnings also.

Advertisements should be displayed in such a way that potential buyer must be fetch

from the market; he/she must be convinced through an advertisement to buy the

company's product.

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Bibliography

Pandey, Bhanu, BrandEquity (28 July,2004) a Business India, July 5 to

18, 2004

Schuman, Micheal Time, June 23, 2003

Sontakki, C.N. (2003) Advertising and sales management

www.lgezbuy.com

www.lge.com

www.researchindia.com

http://www.lgezbuy.com/http://www.lge.com/http://www.researchindia.com/http://www.lgezbuy.com/http://www.lge.com/http://www.researchindia.com/

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Appendix Questionnaire

Name:

Address:

Ph. No.

Monthly family expenditure:

Members in your family

Are you employed? Yes No please mention your profession

If married. Please mention profession of your spouse

1. According to you which advertisements have more effect on consumers? (Rank 1 to

8, ranking 1 High & 8 as Low.)

OUTDOOR RANK INSHOP RANK

Hoarding Sol.Vinyl on SunboardKiosks One way Vision FilmDumps Mirror Acrylic

Banners Nonlit FlexDisplay vans Backlit flexFlex Signs Front lit flex

Nonlit Flex Glass SheetBus Shelters

2. Have you recently seen any LG advertisement?

Yes___________ No________

If yes, which advertisement and where?

And do these advertisements have any effect on your buying behaviour?

If yes, how?

3. What all factors in an advertisement attract you toward a particular ad?

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FACTOR OUTDOOR INSHOP

Message

Model

MediaColorLocation

4. Please give the extent to which the following have effect on your purchase decision?

Outdoor Advertisement Inshop Branding

Very High Low Very Indiffe Very High Low Very Indiffer

5. According to you, does advertisement affects the brand recognition of any brand.

Yes No

6. Please answer the following questions in Yes (Y) or No (N)

Y/N

a) Is Inshop Branding important?b) Is ambience of showroom important?

7. Had you ever got influenced by any advertisement (outdoor or inshop) for the

purchase of the product?

YesNo

8. Rank the following accordingly; whether advertisements given by LG shows the

following:

Attributes Rank

HonestyReliabilityR d bilit