Ajeet (LG Project)

A

PROJECT REPORT

ON

“STUDYING OF CONSUMER BEHAVIOUR IN AIR CONDITION AND REFRIGERATOR OF LG ELECTRONICS”

At

LG ELECTRONICS INDIA PRIVATE LTD

Submitted By: MONIKA YADAVRoll No :

Enrol No : Semester :

As per the requirements for the course of the full –timeMaster in Business Management

Under the guidance of

Table of Contents

1

ACKNOWLEDGEMENT

PREFACE

INTRODUCTIONConsumer Behavior

Consumer Satisfaction & DissatisfactionConsumer Complaint Behavior

COMPANY PROFILEAbout LGEIL

Manufacturing Plants

Code of Ethics

H R Principles

Company Structure

Vision

Corporate Culture

Corporate Identity

Brand Identity

Online Shopping

Customer Service

Awards & Honors

Social Responsibility

Strategic Alliances

PRODUCTS PROFILEAir Conditioners

Refrigerators

RESEARCH METHODOLOGYResearch Design

Data Collection Methods

Execution of Survey Work

Analysis & Interpretations

FINDINGS

RECOMMENDATIONS

LIMITATIONS

SWOT ANALYSIS

APPENDIXQuestionnaires

BIBLIOGRAPHY

ACKNOWLEDGEMENT

2

Success often comes to those who dare and act: it seldom goes to Timid "

Jawaharlal Nehru.

Expression of mind by words is a difficult task; I find it when it comes to an appeal of

fathomless gratitude and obligation. So, first of all I owe my head heartily to all who have

been inspirational, motivating and supportive throughout my project work undertaken

and endowed me with the most precious knowledge, the most powerful of all. Yes! My

report is the sensible effort of all those people mentioned, or not mentioned here. Still, it

is too less to express my deep thanks to them.

It is my privilege to extend my deep sense of thanks to LG Electronics India Private

Limited for providing all the necessary facilities.

I am immensely thankful to all teaching and non-teaching staff members of my Institute,

and last but not least my parents for their cooperation and support to make the

dissertation a successful task.

Monika Yadav

PREFACE

3

In the general sense, the most important reason for studying consumer behavior is

the significant role it plays in our lives. Much of our time is spent directly in the

marketplace, shopping or engaging in other activities. A large amount of additional

time is spent thinking about products and services, talking to friend about them, and

seeing or hearing advertisements about them. In addition, the goods we purchase

and the manner in which we use them significantly influence how we live our daily

lives.Consumers are often studied because certain decisions are significantly affected

by their behavior or expected actions. For this reason, consumer behavior is said to

be an applied discipline. Such applications can exist at two different levels of analysis.

The Micro perspective seeks application of this knowledge to problems faced by the

individual firm or organization.

The micro perspective involves understanding consumers for the purpose of

helping a firm or organization accomplish its objectives.

On the macro, or aggregate, level we know that consumers collectively

influence economic and social conditions within an entire society.

To understanding consumer satisfaction about LG Consumer Durable Products

like Air Conditioners and Refrigerators and also know about the consumer opinion

about online shopping I choose this topic as my project. I try to cover all aspects

related to consumer satisfaction before purchase and after purchase of the product.

It provides insight into aggregate economic and social trends and can perhaps even

predict such trends. In addition, this understanding may suggest ways to increase the

efficiency of the market system of LG Products and improve the well-being of people

in society.

EXECUTIVE SUMMARY

During the winter project at LG Elecetronics India Pvt. Ltd, I have very well realized the

fact that practical learning is far better than classroom teaching. With this project I have

4

learned how the consumer behaviour pattern works towards the these two product AC

and REFRIGERATOR and also how the individual organizations take their decisions

and their current investment trend in relation to the various consumer durable products

available.

My project STUDYING OF CONSUMER BEHAVIOUR IN AIR

CONDITTION AND REFRIGERATOR OF LG ELECTRONICS involves a

detailed study of the various consumer perception towards these products . It is

then followed by a market research and detail ananlysis in order to know the

current most used products and concerns of the dealers and distributors

identifying the potential market for this product and their expectations.

The report contains at first, the brief introduction about the company, the products and

services being offered by the company, detail ananlysis of different products offered by

different companies and then the findings and analysis of the research based on which

final suggestions and conclusion has been drawn.

I have also put forward recommendations that will help LG India Electronics Private

Limited to move a step ahead to be home appliances giant in India.

Introduction

CONSUMER BEHAVIOR

5

The study of consumer behavior is the study of how individuals make decisions to

spend their available resources (time, money, effort) on consumption related items. It

includes the study of what they buy, why they buy it, when they buy it, where they

buy it, how often they buy it, and how often they use it.

Consumer behavior may be defined as:

.......... the decision process and physical activity individuals engage in when

evaluating, acquiring, using, or disposing of goods and services.

CUSTOMERS AND CONSUMERS

The term “Customer” is typically used to refer to someone who regularly purchases

from a particular store or company. The term “Consumer” more generally refers to

anyone engaging in any of the activities used in our definition of consumer behavior.

THE ULTIMATE CONSUMER

Our primary attention directed towards ultimate consumers, those individuals who

purchase for the purpose of individual or household consumption. Studying ultimate

consumers also reveals much about industrial and intermediate buyers and other

involved in purchasing for business firms and institutions.

INDIVIDUAL BUYER

The most commonly thought of consumer situation is that of an individual making a

purchase with little or no influence from other. However, in some case a number of

people can be jointly involved in a purchase decision

6

BEHAVIOUR RELATED TO THE PURCHASE

Once the consumer makes the decision to purchase a product, there can be several

types of additional behavior associated with that decision. Two activities are of

primary importance:

Decisions on the product’s installation and use

Decision on product or services related to the item purchased

Decisions on Product Set-Up and Use

One set of implications flow from decision on product set-up and use. Three topics

are relevant here:

Providing information and assistance

Understanding the user’s consumption system

Decision about Warranties

PROVIDING INFORMATION AND ASSISTANCE

If the consumer purchases a major durable good such as Air condition, refrigerator

and so forth from a full-service retailer it would ordinarily require the store to

carefully install or set up the product and explain its operation to user.

The importance of information on product set-up and use becomes even more

critical in today’s self service economy. Consumers are buying many complicated

products from self-service discount outlets which may offer very little product

knowledge or installation assistance. As a result, they must rely almost exclusively on

whether literature comes with the product. Such a situation provides an added

impetus for manufactures to asses their product literature and makes sure it is

readable and understandable.

UNDERSTANDING THE USER’S CONSUMPTION SYSTEM

Even more fundamental than the provision of the information to consumers is the

marketer’s first understanding how his product is used by consumer and how this

product fits into the consumer’s “Consumption System”. For example, the marketer

needs to know how his product is used by consumers, not only to make improvement

7

in its Quality and Functions, but also to suggest new users for it. If marketer were

research more thoroughly the use-environment and behavior of their product prior to

full-scale launching, we would undoubtedly see fewer failures and products more

carefully attuned to consumer’s lifestyle.

DECISIONS ABOUT WARRANTIES

A related factor concerning product setup and use has to do with product or service

warranty, which is promise by the manufacturer or seller that the product or service

is free from defects in materials and workmanship and that problems will be

corrected if failure occurs during the warranty period. An effective warranty can offer

several consumer benefits including the following:

Providing assurance of product quality and value

Increasing self-confidence about correctness of product choice

Reducing feelings of risk of ownership because of return or refund privileges

Reducing dissonance because if warranty assurance of Quality

Today, marketers are using warranties more as a competitive offensive

weapons than as a defensive tool.

A properly administered warranty program should include the following

components:

Use simple, clear and easy-to-understand warranty wording

Encouraging customers to use the warranty

Clarify who will execute the program and what standards must be met

Handle claims expeditiously and flexibly

Collect, analyze and use warranty information

Constantly monitor consumer and dealer response to invoking warranty

Promptly reimburse dealers or agents for warranty work

Monitor and control costs

DECISION ON PRODUCT OR SERVICES

8

A second factor for the marketer to consider with regard to post purchase activities

concerns buyers interests in related products and services. This is another area of

potential profit that should be actively cultivated.

Because Buyers may become interested in related items, they need to be

made aware of the potential products that exist. Thus, literature enclosed with a

product could present other products in the line. Thus, the marketer’s tasks are to

determine what product mix is most appropriate to the firms. This is largely a

function of applying the marketing concept to identify products that may be related

in nature and can be effectively marketed.

CONSUMERS SATISFACTION/DISSATISFACTION

Satisfaction is an important element in the evaluation stage.

Satisfaction refers to the buyer’s state of being adequately rewarded in a

buying situation for the sacrifice he has made. Adequacy of satisfaction is a result of

matching actual past purchase and consumption experience with the expected

rewards from the brand in terms of its anticipated potential to satisfy the consumer’s

motives.

The concept of satisfaction is one about which there are presently few agreed

upon definition or approaches to measurement. Hunt has summarized the concept in

the following statement:

Satisfaction is a kind of stepping away from an experience and evaluation

it…..One could have a pleasurable experience that caused dissatisfaction because even

though pleasurable, it wasn’t as pleasurable as it was supposed or expected to be. So

satisfaction/dissatisfaction isn’t an emotion, it’s the evaluation of an emotion.

9

Consumer from certain expectations prior to the purchase. These

expectations may be about:

The nature and performance of the product

The cost and efforts to be expended before obtaining the direct product or

service benefits

The social benefits or costs accruing to the consumer as a result of the

purchase

Advertising may often to be important factor influencing these expectations.

Consumer may have a variety of product performance expectations, includes what

the consumer hopes performance will be in terms of an ideal level, what would be fair

and equitable given the consumer’s expenditure of time and money in obtaining and

using the product, and what the consumer expects to actually occur.

Once consumers purchase and use a product, they may then become either

satisfied or dissatisfied. Research has uncovered several determinants which appear

to influence satisfaction, including demographic variables, personality variables,

expectation and other factors. For example, older consumers tend to have lover

expectation and to be more satisfied. Higher education tends to be associated with

lower satisfaction. Men tend to be more satisfied than women. The more confidence

one has in purchase decision making and the more competence in a given product

area, the greater one’s satisfaction to be.

The interaction between expectation and actual product performance

produces either Satisfaction or Dissatisfaction. However, there does not appear to be

merely a direct relation between the level of expectations and the level of

satisfaction. Instead, a modifying variable known as “Disconfirmation of Expectation”

is thought to be a significant mediator of this situation. When a consumer does not

get what is expected, the situation is one of disconfirmation. Such disconfirmation

can be of two varieties: a POSITIVE disconfirmation occurs when what is received is

better than expected, and a NEGATIVE disconfirmation occurs when things turn out

10

worse than anticipated. Thus, any situation which judge the consumer’s judgment is

proven wrong is disconfirmation. Confirmation occurs if the expectations of

performance are met. Consumers expectations from product as well as whether

those expectation are met, are strong determinants, then, of satisfaction.

The emotional context in which product failure occurs may affect consumers

subsequent information processing. Research on the satisfaction/dissatisfaction

process has led to the proposition that disconfirmation is mediated by attribution

processing in which consumers seek to understand why product fail. Consumers seek

to know three features about the causes of a problem:

Stability (i.e. is it temporary or permanent)

Locus (i.e. the problem with the consumer or the company)

Controllability (i.e. is the problem within or outside the control of someone)

Research on attributes also indicates that attributes can lead to specific types

of emotional reactions. For example, if a consumer is in an angry mood because of

the day’s events prior to ordering a meal in a restaurant, he is liable to engage in

greater attribution processing over a poor meal being served than if the consumer

were not in a bad mood. Emotional context, therefore, interacts with disconfirmation

to affect attribution, which results in certain emotions influencing satisfaction or

dissatisfaction.

The result of satisfaction to the consumer from the purchase of a product or

service is that more-favorable post purchase attitudes, higher purchase intentions,

and brand loyalty are likely to be exhibited in a similar purchasing situation. Thus, as

long as positive reinforcement takes place, the consumer will tend to continue to

purchase the same brand. It is true, however, that consumers will sometimes not

follow these established patterns but will purchase differently simply for the sake of

novelty. On the other hand, if consumers are dissatisfied, they are likely to exhibit

11

less-favorable post purchase attitudes, lower or nonexistent purchase intentions,

brand switching, Complaining Behavior and negative word-of-mouth.

Company Profile

About LGEIL

LG Electronics India Pvt. Ltd. (LGEIL), a wholly owned subsidiary of LG Electronics,

South Korea was established in January 1997 in India after clearance from the

Foreign Investment Promotion Board (FIPB). 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, optical storage devices and GSM

12

mobile phones. During the thirteen 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. In fact, 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. 10,000 crore in 2006 and an enviable position in the GSM mobile

phone market with plans of setting up a new GSM plant at Pune. LG has been able to

craft out in eight years, a premium brand positioning in the Indian market and is

today the most preferred brand in the segment

Various studies have shown that the consumer is well informed on the health

awareness front. LG was one of the first companies who recognized the emerging

change in consumer needs and decided to differentiate their products on the basis of

technology which appealed to the consumer on the basis of health benefits. Its vision

was to become a 'Health Partner' for its consumers worldwide and therefore

formulated its corporate philosophy to make peoples' lives better, convenient and

healthier. The entire range of LG air-conditioners have 'Health Air System', which not

just cools, but keeps pollution out. Similarly, microwave ovens have the 'Health Wave

System', refrigerators have the 'PN System', which preserve the nutrition in food and

washing machines have 'Fabricare System', which takes the health factor down to

ones clothes. All the products offered by the company have unique technologies,

developed by its R&D departments that give customers a healthier environment to

live-in.

Financial PerformanceTurnover for 1997 Rs. 125 Crores Turnover for 1998 Rs. 485 Crores Turnover for 1999 Rs. 1056 Crores Turnover for 2000 Rs. 1903 CroresTurnover for 2001 Rs. 2216 Crores Turnover for 2002 Rs. 3178 CroresTurnover for 2003 Rs. 4653 CroresTurnover for 2004 Rs. 6488 Crores

13

Turnover for 2006 Rs. 8236 Crores

The year 2001 witnessed LG becoming the fastest growing company in the

consumer electronics, home appliances and computer peripherals industry. The

company had till the month of October 2001 achieved a cumulative turnover of Rs

5000 Crores in India since its inception in 1997, making it the fastest ever Rs 5000

Crores clocked by any company in the Indian consumer electronics and home

appliances industry. Having achieved this milestone, LG achieved another benchmark

with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. LG

is poised to surpass its turnover target of Rs. 10,000 Crores next year.

This year, LG has emerged as the leader in Colour Televisions, Semi Automatic

Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens.

In Colour Televisions having set the sales target of one million units of Color

Televisions for 2005, LG has already achieved the one million mark in the month

ahead of its target.

LG India will become the export hub for LG worldwide catering to the Middle

East and African markets. The company aims to touch an export turnover of USD 3

billion by 2010, which will contribute to 30 per cent of LGEIL’s turnover.

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.

Manufacturing Plants

LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in

1998, with an investment of Rs 500 Crores. This facility manufactured Colour

14

Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the

year 2001, LG also commenced the home production for its eco-friendly Refrigerators

and established its assembly line for its PC Monitors at its Greater Noida

manufacturing unit. The beginning of 2003 roll out of the first locally manufactured

Direct Cool Refrigerator from the plant at Greater Noida.

The Greater Noida manufacturing unit line has been designed with the latest

technologies at par with international standards at Korea and is one of the most Eco-

friendly units amongst all LG manufacturing plants in the world.

LG Electronics India announced the operations of its second Greenfield facility

at Ranjangaon, Pune 06 October 2004. The new plant in addition to its current

manufacturing facility at Greater Noida, U.P. (on the outskirts of Delhi) will enable the

company to expand its consumer reach and ensure better supply chain management

that would translate into a faster response time.

The new Greenfield facility is a wholly owned subsidiary of LG Electronics India

located at Ranjangaon, 50 km from the city of Pune. Covering over 50 acres, the

facility will be manufacturing Color Televisions, Air Conditioners, Refrigerators,

Washing Machines Microwave Ovens and Color Monitors by the end of 2005. The

plant that involves an investment of Rs.150 Crore (32 million USD) till 2005 will

commence operations now.

The facility will involve an Investment of USD 60 million by the year 2010. The

company’s announcement came in line with its strategy of attaining an overall

market leadership in India in GSM market after being leaders in the Consumer

Electronics and Home Appliance.

15

Company Structure

LGEIL Management Structure and duties related to them are following:

MD (Managing Director) is responsible for all activities running by LGEIL.

VP (Vice President) is responsible for all activities related to Human Resource

& Management Structure.

Factory Head is responsible for activities related to Production

HOD (Head of Department) supervises the activities of LGEIL across India.

PGH (Product Group Head) supervise activities related to a particular product.

Name DepartmentDesignation Email ID's

K R Kim MD, LGEIL

Y V Verma HR & MS VP [email protected]

Sanjay Arora Production Factory Head [email protected]

S N Rai Logistics & Commercial HOD [email protected] V Rao Sales HOD [email protected] Gupta Sales Planning & Administration HOD [email protected] Kapoor Marketing HOD [email protected] Bose IT Products HOD [email protected] N Ajmera Finance HOD [email protected] K Gupta Account HOD [email protected] Aggarwal Corporate Planning HOD [email protected]

Abhay Sood Management Audit & Support Team Head [email protected]

R Manikandan IT Products PGH [email protected] Arora Refrigerators PGH [email protected] Bajpai Commercial Air Conditioners PGH [email protected] M Singh Consumer Electronics & GSM PGH [email protected] Chaturvedi Institutional Sales PGH [email protected] Raghwan PDP's & Home Entertainment PGH [email protected]

16

mailto:[email protected]













Praveen Velecha GSM PGH [email protected] Jain Washing Machine PGH [email protected] Bajaj AC's PGH [email protected] Baisakhiya MWO & VC PGH [email protected]

LG Electronics pursues its 21st century vision of becoming a true global digital

leader who can make its customers worldwide happy through its innovative digital

products and services.

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, we embrace the philosophy of "Great Company, Great People" whereby

only great people can create a great company, and pursue two growth strategies

involving "fast innovation" and "fast growth." Likewise, we seek to secure three core

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

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 competitive edge, aiming for a target of 30% more than

what our competitors can do. Fast innovation also means 30% more sales and

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.

Core Capabilities

17




Product Leadership: Refers to the ability to develop creative, premium

products through specialized new technologies.

Market Leadership: Refers to the ability to achieve the "LG brand is No. 1"

goal backed by its formidable market presence worldwide.

People Leadership: Refers to talented people who perform excellently by

internalizing and practicing innovations.

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: We foster a corporate culture whereby we suggest an

alternative before saying "no" and aggressively work towards fulfilling our

goal.

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

teamwork.

Fun to work : We create a workplace where individuals' creativity and

freedom are respected and working is made fun.

18

Corporate Identity

LOGO of LG Electronics

Symbol Mark

The letters "L" and "G" in a circle symbolize the World, Future, Youth, Humanity, and

Technology. Our philosophy is based on Humanity. Also, it represents LG's efforts to

keep close relationships with our customers in the world.

The logo consists of two elements; the LG letterforms in LG Grey and the face

symbol in the unique LG Red color. Red, the main color, represents our friendliness,

and also gives a strong impression of LG's commitment to the best. Therefore, the

shape or the color of this symbol mark must never be changed

Colors for Signature

Symbol mark and Logotype based on positive engraving method The reproduction of

LG colors must be carefully monitored to achieve the highest fidelity to the original

and any modifications could cause misunderstanding or misrepresentation of the LG

identity.

Therefore, it is important to use the colors that are shown here. Red(LG Red /

Pantone 207C) and gray(LG Gray / Pantone 431C) are the most recommended, but

gold(LG Gold), silver(LG Silver), and black(LG Black) could be used under certain

circumstances.

Appropriate color use is essential for the accurate use of LG's signatures.

19

LG Slogan / Signature

"Life's Good" signature is an expression which reflects our 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 our will to provide solutions for an 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.

20

Online ShoppingTouch-and-feel. It's an innate part of a consumer-durable purchase that can be

experienced on the Internet — in an Arthur C. Clarke novel, of course! It is a futile

exercise for Indian companies to retail consumer durables using the Net as an

independent medium. However, a few durable majors and even fewer entrepreneurs

still have their eye on the virtual world with their feet firmly planted in the real one.

And four web models - company-owned online services, auction sites, web portals as

a platform for sale, and entrepreneurial routes like B2B2C - have reported healthy

growth in revenues.

In March, 2001, the 1,500-crore LG Electronics India launched

www.lgezbuy.com to offer an alternative channel for consumers. It was, after all

the first major initiative by a consumer appliance company in India to leverage the

power of Internet. While net penetration was still low in India, there was nothing to

stop manufactures from bypassing stores like his hand and instead connecting

directly with consumers. In fact, LG had done just that with www.lgnana.com in

Korea, where it had bypassed the trade and chosen to sell directly to consumers.

LG has chosen an entirely different model here to circumvent the problems of

channel conflict which have plagued manufactures the world-over. After LG’s online

business was launched, LG has hand-picked 99 other dealers, 30 run its exclusive

showrooms – to be part of its online business. So far, LG is limiting itself to 18 cities,

where Net connections are stable. LG has notched up Rs. 6 crore in sales. It’s not

small beer – www.rediff.com, India’s premier portal, reported Rs. 8 crore in e-

commerce revenues.

21

http://www.rediff.com/

http://www.lgnana.com/

http://www.lgezbuy.com/

Whenever a customer visits the LG’s website and orders a product from the

catalogue, the information reaches its division located at the Greater Noida factory.

The order is then forwarded to the relevant LG branch office. The branch Office, in

turn, passes the order to the internet dealer – through email, fax or phone. After the

dealer has delivered the product to the customer and collected the payment., he

then faxes delivery challan to the LG office as proof of delivery. If the customer pays

by credit card, LG offers an additional 2% margin.

Since volumes are currently small’ LG has chosen to limit the number of Net

dealers to one in every major locality. It’s a win-win situation. The dealer does not

have to make any investment of own in software. What’s more, it helps him develop

a relationship with a well-heeled, upscale clientele.

LG has chosen a sensible merchandising policy. Much of the product mix

online is relatively high-end. Although the 21”-inch CTV’s available, the focus is on its

MP3 player and recordable CDs, which are exclusively available online. Most dealers

are loath to stock such high-value, low-off take items – and since the typical surfer is

an early adopter of cutting edge tech products, the Net becomes an excellent

showcase.

Customer Service

LGEIL enjoys extensive service Network across the

length and breadth of the country. At present LG boasts

of more than 700 Service Centres.

Apart from it, LG also focusing on:

Service Centre Networks

Call Centre Numbers

22

Product wise Service Centre commitment of response time

LG also launch a website www.lgservice.com for the consumer problems

and complaints about LGs products. Consumer first log on to website and fill all

details about product like product, model number, date of purchase, address and

description of problem face by consumer. After filling the Form consumer get the

Complaint Number. Now company takes necessary action for the resolution of

complaint as soon as possible after receiving the complaint. Consumer can also give

feedback about product he/she using.

The camp aim is at educating the customers about consumer durables and its

maintenance. The engineer at the camp guides the consumers by educating them on

the maintenance of the LG products. In addition, the customers could also avail free

service and attractive discount of 15% on spare and 15% discount on annual service

contracts of all LG electronics appliances. For LG products a service centre with a

turn-around time of two days are convene that assure to make the product as good

as new.

Awards & and Honors

Consumer Durable Retailer of the Year 2005

LG was presented the ‘Consumer Durable Retailer of the Year Award 2005’, for

outstanding performance in retailing. This award is considered as the biggest retail

award in India and hosted by ICICI.

These awards were instituted along with India’s leading consultancy firm in

the retail segment, KSA Tecnopak, as the knowledge partner. Interestingly, for the

first time in India, direct consumer feedback was taken at retail stores for the short-

listed entries and LG being the favorite, won the award for it retail excellence.

LG achieved Best Newsmaker in Consumer Durables in 2005

23

http://www.lgservice.com/

The Business Today - Cirrus review of 50 companies witness a measure of image

management. LG ranked ‘No. 1’ achieving ‘Best Press in Consumer Durables

Category’. The clear winner left its competitors way behind, beat in all the three

scores-

Total image score

Total visibility score

Quality of exposure

LG has attained the 12th position among the top 50 companies on the

Business Today- Cirrus list. It has also ranked ‘No. 5’ in marketing and sales

activities among various industries.

EFY Electronics Organization of the Year Award and Award for

Best Product Category in Television Sets

LGEIL was named the EFY Electronics Organization of the Year 2005 for excellence in

electronics. LG also received the EFY Readers’ Choice Award for ‘Best Category in

Television Sets’. This award is received as the country’s top honor in the field of

electronics. It was given away in New Delhi on February 10, 2005 at the Habitat

Centre. The objective of the award is to recognize excellence in electronics across

various products, including components.

LG bags the Coveted NASSCOM ‘Indian IT Users Award’

The award was given on the basis of a survey conducted by NASSCOM in association

with IMRB. In addition to the survey, a special team at IMRB and NASSCOM conducted

physical audits for top three companies in each category. More than 200 companies

participated in the award evaluation on innovation basis.

LG ranked among world’s Top Three Companies

LG Electronics Inc., the $38 billion leading global manufacture of consumer

electronics, home appliances, mobile phones and information technology products,

24

has been ranked among the world’s top three technology companies and as the 10 th

biggest in current sales by Business Week magazine.

Appearing in the ‘Info Tech 100’ issue of June,2005, this annual feature

spotlights an elite group of the world’s most influencing technology firms, the ‘Best

Performers’ in the global business market place. Based on financial data from

‘Standard & Poors’, Business Week evaluated the performance of different companies

over the past 12 months and ranked them on the basis of specific criteria, including

total revenue, revenue growth, return on equity and Shareholder return.

The ‘Info Tech 100’ list is compiled annually by Business week based on

10,000 publicity traded corporations, and subsequently, LG’s top 2004 ranking

recognize the successful growth and strategic focus, the company has achieved over

the past years.

Social Responsibility

LG is making efforts to minimize environmental pollution and to

prevent accidents which might occur during business operations,

to promote a policy to preserve the natural environment and

contribute to the overall health of our employees and communities

where we conduct our business.

The importance of environmental, safety, and health issue is increasing, and

demands a more active social role on behalf of our business circle. At the same time,

environmental and health policies provide new opportunities to create and nurture

new values.

25

Motivated by this trend and recognizing that the environment, safety, and

health are significant topics to be discussed in management activity, LG is striving to

improve the environment, as well as the safety and health of our employees through

the accumulated experience and innovative technology as well as developing close

cooperation with regional society.

LG employees are committing themselves towards sincerely fulfilling

individual responsibilities in laying down a foundation for a prosperous future.

LG will consider environment, safety, and health issues during all phases of

management activity and consider it as an opportunity to value creation for

our clients.

LG will set strict standards in conjunction with the laws related to the

environment, safety, and health.

Strategic Alliances

26

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.

Products Profile

LG Electronics was one of the first companies who recognized the emerging change

in consumer needs and decided to differentiate their products on the basis of

technology which appealed to the consumer on the basis of health benefits. Its vision

was to become a 'Health Partner' for its consumers worldwide and therefore

formulated its corporate philosophy to make peoples' lives better, convenient and

healthier The entire range of LG air-conditioners have 'Health Air System', which not

just cools, but keeps pollution out.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances and computer peripherals industry today. LG

27

Electronics is continually providing superior technology products & value for money

to over 50 lakh households in India.

AIR CONDITIONERS

LG’s Air Conditioners are feature packed for unmatched performance. Each

model being styled with internationally designed grills and sleeks body contours. All

power packed with state-of-art features. Just to ensure that everyone in the house

stays healthy and active.

Air Conditioners are divided into three categories.

COMMERCIAL AIR CONDITIONERS

Ceiling Cassette

28

http://lgws.studiosmile.com/category.aspx?CatID=175&MaiCatID=58



Capacity: Available in 1.5/2.0/3.0 /4.0 Tons

Features

This is a high aesthetic value machine and is mounted flush with the ceiling, exposing only 30 mm grills. The 4 Way air Distribution patterns make it ideal for commercial uses like showrooms, malls, restaurants, corporate board rooms as well as domestic applications like large living rooms.

Key Features Plasma Air Purification System Jet Cool Group Control Sleep Mode Self Diagnosis Function Auto Restart Operation Two Thermistor Operation High Ceiling Corresponding Operation

Floor Mounted Package

Capacity : Available in 11 & 16. 5 Tons

Features

These are Floor Mounted Package Units. These are ideal for offices, factories, shopping malls, multiplexes, hotels etc. The special feature of the machine is, having low noise level and high EER because of scroll compressors.

Key Features Easy Installation Compact and Light-weight Design All with Scroll Compressor High EER Long Refrigerant Piping Multiple Compressor System

LARGE AIR CONDITIONING SOLUTION

Single Packaged (Roof Top)

29

http://airconditioningwithlg.com/ceiling_concealed.asp



Capacity : Available from 15 to 30 TR

Features

These are Self contained Unitary Systems which are mounted on the roof or outside the area required to be conditioned. These are ideal for Single Storey and Double Storey structures due to the high static available Applications range from factories, shopping malls, multiplexes, hotels etc.

Key Features Compact Design Easy Installation Low Noise Level Multiple Compressor System Easy Maintenance and Service Large Centrifugal Fan and Variable Pulley Non Glasswool Insulation

Variable Refrigerant Flow System (Multi V):

Capacity : from 5HP to 40HP in R-22 And 5 to 10 HP is also available in R-407c

Application : Residential, Restaurants, Office Buildings, Hotel Industries, Hospitals, etc

Features

A Variable Refrigerant Flow (VRF) system is a Vapor Compression System with Inverter compressor, where, the compressor motor speed is varied-- to meet the required room load.

Key Features Power Saving up to 40 %. Long refrigerant pipe length of 120

Meters. Capacity Modulation from 10% to 130 % Selection of different Indoor units

according to Interior Individual Control of each Indoor Unit

with remote Precise control of room temperature. Available in Cooling Only and HEAT PUMP

Models Self dignosis Function Auto addressing of Indoor units Out door unit urethane molding

ROOM AIR CONDITIONERSRoom Air Conditioners divided into Four Categories.

30

http://lgws.studiosmile.com/productlist.aspx?CatID=154&MaiCatID=58

http://lgws.studiosmile.com/productlist.aspx?CatID=156&MaiCatID=58

http://lgws.studiosmile.com/productlist.aspx?catid=130


WINDOWS AIR CONDITIONERS

LWA22G1RAE1Model Description2.0 Ton Windows Ac

Key Features

Anti-Bacteria Filter EnergyGuard Dry Mode Cooling Capacity-22000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-4-Way Air Deflection Air Ventilation-Provided(Manual) Temp. Control-Thermistor

LWA19H1RAT5

Model Description 1.5 TON WindowsAc

Key Features Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation-Provided Manual Temp. Control-Thermistor

LWA22G1NA1

Model Description 2.0 Ton Windows Ac

Key Features

Anti-Bacteria Filter Cooling Capacity-22000 Operation Control-Mechanical Fan Speed Cooling/ Fan-3/2 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation Temp. Control-Thermostat

LWA19H1RDL5

Model Description 1.5 Ton, Windows AC

Key Features Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Energy Guard Operation Control-Electronic

31

Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation-Provided Manual Temp. Control-Thermistor

LWA12K1RPE5 Model Description

1.0 Ton, Windows AC

Key Features

Anti-Bacteria Filter 88 Segment Display+ Dry Mode Cooling Capacity-13200 Filter Cleaning Indicator Energy Guard Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-12-Way Air Deflection Temp. Control-Thermistor

LWA18A1NA1 Model Description 1.5 Ton, Windows AC

Key Features Anti-Bacteria Filter Anti-Corrosive Gold Fins 88 Segment Display+ Rotary Compressor Sleep Mode With Off Timer Dry Mode Cooling Capacity-18000 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation

SPLIT AIR CONDITIONERS

LSB24S1RAE1 Model Description 2 Ton, Split AC

Key Features Cooling Capacity-24000 Jet Cool Log Smart

32

Sleep Mode Fan Speed(Cooling/Fan)-4/3 Auto Air Swing Air Direction-4-Way Air Deflection Temp Control-Thermistor On/Off Timer Dry Mode Chaos Air Flow Logic

FLOOR STANDING AIR CONDITIONERS

LP-K3065QC

Model Description Floor Standing AC

Key Features Timer setting Temp. Control Thermistor Soft dry operation Remote controller Simple Refrigerant gas R-22 Jet Cool Indoor Display Set Temp Fan Speed COOLING / FAN 4 Compressor Recip Auto Air Swing(2 way) Provided Air Direction 4 Way Air Discharge Horizontal

MULTI SPLIT AIR CONDITIONERS

LM-3661C2I

Model Description Multi Split AC

Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way

33

Air Discharge Bottom

LM-2461C2I Model Description Multi Split AC

Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way Air Discharge Bottom

WHISEN AIR CONDITIONERS

LWA-22H1RDL1

Model Description 2 Ton, Windows AC

Key Features Temp. Control Thermistor Chaos Air Flow Magic Time Delay Function On/Off Timer Sleep mode Soft dry operation Fan Speed (COOLING/FAN) 4/3 Auto Air Swing Air Direction 3-Way Air Discharge Left/Right/Bottom Time Delay Function

34


REFRIGRATORS

LG refrigerators divided into Four major categories:

SEMI FROST FRIDGE

GL-26TMQSFF

Model Description SFF Ref

Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

GL-23TMTSFF-225L

Model Description 225 Ltr. SFF Ref

Key Features

Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

35





GL-19GMRSFF

Model Description SFF Ref

Key Features

Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner

DIRECT COOL

GL-231GPRX

Model Description 230 Ltr. Capacity Direct Cool Refrigerator

Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-201TPQX

Model Description 200 Ltr. Capacity A-One Direct Cool Refrigerator

]Key Features

Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

36

GL-191RPDX

Model Description 190 Ltr. Capacity A-One Direct Cool Refrigerator


GR-181TPLX


Key Features

Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-181TPQX


Key Features

Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray

GR-181RPGX



FROST FREE

37

GR-S592QLC

Model Description Ice Beam Door Cool Refrigerator

Key Features Kangaroo Tray Deodoriser F.I.R Lamp Sliding Door Bin Ice Tray Anti -Bacteria Seal Door Finish-Power Coated /PCM Cell Fresh Crisper

Color Options Champagne Gray Glossy Green Super White Silky Grey Super Inox Moon Silver Metallic Finish

GLT322GP Model Description Frost Free Ref

Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

GL-T262GP

Model Description Frost Free Ref

Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone External MICOM Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

GL-242QP

38

Model Description 230 Ltr. Frost Free

Key Features Deodoriser F.I.R Lamp Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper

SIDE BY SIDE REFRIGRATORS

267 NGB-Wood Cherry Perspective

Model Description DIOS Ref

Key Features

610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar

GRP267FTB

Model Description DIOS Ref

Key Features

610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar

39

Research Methodology

The purpose of the methodology is to describe the research procedure. The

methodology will reveal why a particular design is being used for conducting

research.

RESEARCH DESIGN:

A research design is the specification of methods and procedures for acquiring the

information needed. It is the over-all operational pattern or framework of the project

that stipulates what information is to be collected from which source by what

procedures. Research design denotes the description of the research design. The aim

was to collect relevant information, which fulfills our requirement and can be

analyzed at a later stage of study without any problem. This was to be done in

minimum expenditure with least efforts and in a set period of time. For my project I

select ‘DESCRIPTIVE RESEARCH DESIGN’ to know Consumer Satisfaction about LG

products. This helped us in having enough provision for protection against bias and

maximizes reliability.

DESCRIPTIVE RESEARCH:

Descriptive study, as its names implies, is designed to describe something – for

example, the characteristics of the users of a given product, the degree to which

product use varies with income, age, or other characteristics, or the number who

bought a specific air conditioner, colour television, microwave oven, refrigerator,

washing machine.

Advantages of Descriptive Study:

Involve relatively large number of observation

Analysis is more objective

Averages and Percentages are calculated

40

DATA COLLECTION METHOD:

The methodology reveals the methods of data collection. There may be primary

sources and secondary sources of data collection.

Collecting Secondary Data:

After deciding our objective I looked for collecting and studying secondary data. It

included extensive study of literature available in Annual reports of LG Electronics

India Private Limited, articles, newspapers, journals, magazines, handouts, pamphlets

describing the company and its products.

Studying of secondary data gave us an insight into the problem into hand. It

also provided us with clues and helped in designing primary research. It provided us

a more accurate picture about the functioning of LG Electronics India Private Limited.

Collecting Primary Data:

The objective of primary data is formulated on the basis of research objectives.

Objectives set the guidelines and directions of research planning. Formulating the

objectives offers the best feasible means of solution. The primary data for my study

was being collected by conducting survey. The tools for data collection used was

following types -

Telephone Interview:

The telephone interview is used in lieu of personal interviews. It is used because

information has to be collected quickly and inexpensively. By it I asked the consumer

about their satisfaction about LG Air Conditioners, Colour Television, Microwave

Oven, Refrigerator, Washing Machine. The Direct and Structured questions are asked

from consumers.

Questionnaires:

41

This method of data collection is quite popular, particularly in case of big enquiries. A

questionnaire is a method of obtaining specific information about a defined problem

so that data, after analysis and interpretation, results in a better appreciation of the

problem.

In order to motivate respondents and to get best of the information from

them, it was tried to build questionnaire that is interesting, serve our objective,

unambiguous and easy to complete and is not burden someone. The aim was to

enable ease in analysis and facilitate easy classification of response to get

meaningful outcome within acceptable limits.

A few questions were in disguised, where the true purpose was hidden but

was sufficient to bring in the right information from respondents. Depending on the

requirement, the questions were kept open ended and closed ended. The sequence

of question in questionnaire was kept in a logical order. It included question based on

Linkert Scale, where attitude was to be studied and rank order scale where ranking

was required. After following a series of trial and changes the finally evolved

questionnaire was being used for survey work. I used the following types of

Questionnaires for LG Products:

Air Conditioners Questionnaire

Refrigerator Questionnaire

EXECUTION OF SURVEY WORK:

The survey work is that was done to collect primary data. In this phase we conducted “Consumer Survey”

by using questionnaires. I individually approached to individuals and got the questionnaire filled by them.

The individuals were randomly chosen. For collecting data I focused divided the consumers in six

categories:

Consumers of Air Conditioners

Consumers of Refrigerator

42

For first five categories I take the sample of 100 consumers in each category, for last one I take the

sample of 78 consumers. As a results customer survey, I was able to pool ‘578’ records in our database.

For database, I take the lists of buyers of LG Products of previous 3 years. With it, I also take the

list from Service Centre of those consumers who complaint about product performance and problems. For

survey about online shopping, I take the list from Noida of those consumers who bought product as well as

who inquiry about products but not bought through it Online Shopping in Delhi NCR region.

ANALYSIS AND INTERPRETATION:

After collecting the questionnaire filled, I scanned each of entry ensuring that all relevant information

required for analysis is available and is in the form through which we can analyze. Adjusting was made

where required keeping in mind that it does not hampers the outcomes of our objectives. Editing of data

collected was done to detect errors and omissions and such corrections were made where required.

Further, coding of responses to assign numerated or symbols was done for easy and fast analysis.

Adopting suitable classes like Poor, Fair, Good, Very Good, Excellent helped in grouping and

categorization of responses. The data after collection, correction and classification was processed and

analyzed and compared in accordance with the outline made for the purpose at the time of developing

research plan. The classified data was finally subjected to cross tabulation analysis and represented

graphically for easy interpretation of results.

Findings

Findings are the results of the study. To know about consumer’s satisfaction about LG

products like Air Conditioners,Refrigerators, 2 questionnaires designed on following

ground:

Quality of Product Features

Quality of Product Performance

Quality of the Dealership

Quality of Dealer Salesman

43

Quality of the Delivery Process

Quality of after Sales Service & Repairs

Quality of Complaint Management & Resolution

Value for Money

The following analysis was done to obtain the findings in accordance with our

objectives determined during the course of study.

AIR CONDITIONERS

To know about Consumer Satisfaction about LG Air Conditioners following Questions

asked in the Air Conditioners Questionnaire:








According to Questions of Air Conditioners Questionnaire following facts were

revealed:

Sample Size: 100 Consumers

Poor Fair Good Very Good Excellent

Quality of Product Features 0 5 33 47 15


0 4 38 43 15

Quality of the Dealership 0 3 30 49 18

Quality of the Dealer Salesman

1 1 43 42 13

44


0 1 38 50 11


2 2 35 48 13


2 2 36 44 16

Figures are shown in Percentages

INTERPRETATIONS:

According to obtained Data, I divided the Consumers in three categories to judge the

overall performance of the Air Conditioners:

Below Expectation: It is the Mean of those Consumers who rated Air

Conditioner ‘Poor’ and ‘Fair’. Those consumers fall into the category of

Dissatisfied Consumers.

Meeting Expectations: It is the Mean of those Consumers who rated Air

Conditioner ‘Good’.

Exceeding Expectation: It is the Mean of those Consumers who rated Air

Conditioner ‘Very Good’ and ‘Excellent’. Those consumers fall into the

category of Delight / Satisfied Consumers.

ONSINTERPRETATIONS

OVERALL PERFORMANCE

Below Expectations Meeting Expectations Exceeding Expectations

3.26 36.14 60.60

Figures are in Percentages

Following is the result of Consumer Satisfaction about LG Air Conditioners:

Dissatisfied Consumers : 3.26%

Delight Consumers : 60.60%

45

REFRIGERATORS

To know about Consumer Satisfaction about LG Refrigerators following Questions

asked in the Refrigerators Questionnaire:








According to Questions of Refrigerators Questionnaire following facts were

revealed:

Sample Size: 100 Consumers

Poor Fair Good Very Good Excellent

Quality of Product Features 0 2 39 48 11


0 2 36 51 11

Quality of the Dealership 1 0 42 49 8

Quality of the Dealer Salesman

1 3 38 51 7


0 3 40 47 10


1 5 48 35 11


1 7 45 39 8

46

Figures are shown in Percentages

INTERPRETATIONS:

According to obtained Data, I divided the Consumers in three categories to judge the

overall performance of the Refrigerators:

Below Expectation: It is the Mean of those Consumers who rated

Refrigerator ‘Poor’ and ‘Fair’. Those consumers fall into the category of

Dissatisfied Consumers.

Meeting Expectations: It is the Mean of those Consumers who rated

Refrigerator ‘Good’.

Exceeding Expectation: It is the Mean of those Consumers who rated

Refrigerator ‘Very Good’ and ‘Excellent’. Those consumers fall into the

category of Delight / Satisfied Consumers.

ONSINTERPRETATIONS

OVERALL PERFORMANCE

Below Expectations Meeting Expectations Exceeding Expectations

3.71 41.14 55.15

Figures are in Percentages

Following is the result of Consumer Satisfaction about LG Refrigerators:

Dissatisfied Consumers : 3.71%

Delight Consumers : 55.15%

47

Recommendations

1. LG Electronics should give more attention on its Quality of After Sales Services

because it helps the company to increase customer’s satisfaction and retain the

customers.

2. LG Electronics should give more advertisement in Magazines & Newspapers to

remind the people about their new ranges of products.

3. LG Electronics should maintain the communication through feedback. They

should take time-to-time feedback from dealer about customer satisfaction to

know about the customer perception about durable products.

4. LG Electronics Consumer Durable Products should be economical in price.

48

5. LG Electronics should find out the factors are being looked for which the

customers are buying the brand. This will help in making appropriate message

in advertisement so that that advertisement will much focused and targeted.

6. LG Electronics should prefer the rural areas also for selling its consumer

durables products.

7. LG Electronics should make the provision for exchange offer time-to-time, it

may generate sale.

8. LG Electronics should increase knowledge and ability of Dealers to explain

finance options if requested.

9. LG Electronics should provide all details related to any promotions, company

schemes or discount applicable at the time of purchase.

10. LG Electronics should provide more information about features and

specifications of consumer durables such as size, maintenance, usage and

warranty etc.

11. LG Electronics should make sure that Salesman show better ability to listen,

understand and answer queries.

12. LG Electronics should ensure that the company is innovative and introduces

new products to meet new customer’s needs.

13. LG Electronics provide quality and latest products which help company to face

the challenges made by competitors.

49

14. Direct appeal to end-users should be made, the primary sale become very

easy.

15. Word-of-mouth can be generated by keeping the existing customers.

Limitations

1. As per the project involved the marketing research using questionnaires, views

expressed by the respondents are confined to elements of questionnaire. But I

tried to get more information through general question so that I could reach at

the clear picture of the situation.

2. Between the customer and interviewer, due to differing perceptions,

communications errors in the form of miscomprehension, selective perception

creeps in. In this case, errors were unavoidable and thus might have added to

slight inaccuracy in my results.

3. When the dealers were interviewed regarding customer’s feedback, it is quite

possible that the personal biases of dealers might have crept in.

50

4. All consumers are not alike. Thus the results may not hold true for every

individual.

5. In some instances respondents may not have revealed the truth.

SWOT Analysis

With the help of this analysis we are able to know the strength, weakness,

opportunity and threats of LG Electronics Consumer Durables Products for research

work and study.

STRENGTH

1. LG Electronics is wholly own subsidiary.

2. LG Electronics is driving comfortably on its global brand image and technology.

3. LG Electronics has well-established Research & Development Centre.

4. LG Electronics is flexible in their strategy and adjusts accordingly to the demand.

51

5. LG Electronics market share across the globe is high hence funding is not a

problem.

6. LG Electronics appointed the Indian as Product Heads because they have better

understanding Indian values.

WEAKNESS

1. LG Electronics has launched number of new ranges in consumer durables product

at a time and thus has unequal success rate of its products.

2. LG Electronics not able to utilize efficiently the image they have created at pace

rate.

3. LG Electronics could not improve their sales services up to the expectations of

customers.

4. LG Electronics left the lower segment unexplored.

OPPORTUNITY

1. The buying capacity of Indian consumer is continuously increasing.

2. India is a fast developing market, and remained unexplored fully.

3. A competitive market helped LG Electronics to create a niche for itself.

4. India can be made a base for export to other countries due to its favorable

policies and regulations.

THREATS

52

1. A large number of companies is already presenting the market, so a though

competitions prevails.

2. The new innovative consumer durables might not fulfill the expectations and may

be rejected.

3. Political destabilizations may also occur.

4. Always needs to be alert to keep an eye on changing environment.

Questionnaire for Air Conditioners

Name: ………………………………………………………………………………………………….

Address: ………………………………………………………………………………………………

Telephone Number: ……………………… Mobile: …………….……………………………

Model: …………………………………………. …………………………………………………….

1. Overall Quality of Product Features: Simplicity of understanding and applying operational instructions given in manual Ease of using remote Location and design of control panel Usefulness of auto air swing, fan and speed regulator Quality and usefulness of Dehumidifier, Temperature display Quality of anti-bacteria filter/dust filter Usefulness of Auto-off/ Memory/Sleep function Ease of using Air Conditioner Availability of Power saving options

2. Overall Quality of Product Performance: Durability of Air Conditioner Reliability of Air Conditioner (ability to work with low maintenance requirement) Ability to work with minimum sound Air throw speed and power of cooling of the room

3. Overall Quality of Dealership: Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer

showrooms

53

ExcellentVery GoodGoodFairPoor


4. Overall Quality of the Dealer Salesman: Availability of sales person to attend to you Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance,

usage and warranty etc Knowledge of salesman about all Air conditioners Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product

5. Overall Quality of the Delivery Process: Time taken for delivery of the product to your required destination Ability to deliver the Air Conditioner at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Air Conditioner Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems

6. Overall Quality Of After Sales Service and Repairs: Ease of access to authorized service/repair engineer Time taken to respond to customer requests for service/repair Convenience of time fixed for servicing /repairs Ability of the service/repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service/repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract

7. Overall Quality of Complaint Management and Resolution: Ease of contacting dealer in case of problems Availability of Helpline/FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.

8. Value for Money:

54







Date: ……………….. Signature: …………………..

Questionnaire for Refrigerators

Name: ………………………………………………………………………………………………….

Address: ………………………………………………………………………………………………

Telephone Number: ……………………… Mobile: …………….……………………………

Model: …………………………………………. …………………………………………………….

1. Overall Quality of Product Features: Simplicity of understanding and applying operational instructions given in the manual Ease of operating various features of the Refrigerator Overall exterior aesthetics / styling of refrigerator and door interior Capacity of freezer cabinet Design of the storage cabinet Compartmentalization of the storage cabinet, vegetable tray design, egg tray etc Provision and location of deodorizer, the lamp, freezer thermostat, storage cabinet thermostat etc Provision of moisture controller, door cooling system, water dispenser etc

2. Overall Quality of Product Performance: Durability of the product Reliability of the product (ability to function with low maintenance requirement) Ability to work with minimum sound Extent of cooling in refrigerators (including freezer) Durability of vegetable tray, egg tray and other internal parts of the refrigerators

3. Overall Quality of Dealership: Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer

showrooms

4. Overall Quality of the Dealer Salesman: Availability of sales person to attend to you

55




Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance,

usage and warranty etc Knowledge of salesman about all Refrigerators Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product

5. Overall Quality of the Delivery Process:

Time taken for delivery of the product to your required destination Ability to deliver the Refrigerator at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Refrigerator Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems

6. Overall Quality Of After Sales Service and Repairs: Ease of access to authorized service / repair engineer Time taken to respond to customer requests for service / repair Convenience of time fixed for servicing / repairs Ability of the service / repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service / repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract

7. Overall Quality of Complaint Management And Resolution: Ease of contacting dealer in case of problems Availability of Helpline / FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.

8. Value for Money:

56






Date: ……………….. Signature: ………………….

57

58

Documents

Ajeet (LG Project)