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DISSERTATION ON
MARKET ACCEPTABILITY OF LG REFRIGERATOR
Submitted in partial fulfillment of the requirements for the Two Year Full Time Post Graduate Diploma in Management
By:-
Ajay Bisth Under the guidence
Enrolment No. 13158 of
Batch-2011-13 Prof. Gaurav Tanwar
PGDM (Marketing)
I.T.S Institute of Management
46, Knowledge Park-III, Greater Noida
CERTIFICATE OF ORIGINALITY
I hereby declare that this Dissertation is my own work and that, to the best of my knowledge
and belief, it reproduces no material previously published or written that has been accepted
for the award of any other degree of diploma, except where due acknowledgement has been
made in the text.
.
Ajay Bisht
Enrollment No. 13158
Date:
CERTIFICATE
This is to certify that Ajay Bisht PGDM (2011-13 Batch) a student of I.T.S- Institute of
Management, Greater Noida has undertaken project on “MARKET ACCEPTABILITY OF LG
REFRIGERATOR” The survey, data collection, & analysis work for preparing the project has
been carried out by the student in partial fulfilment of the requirements for the award of
PGDM, under my guidance and supervision.
I am satisfied with the work of Ajay Bisht.
Prof. Gaurav Tanwar
Faculty Mentor
(Signature)
ACKNOWLEDGEMENT
I would like to take this opportunity and thank all those who assisted and co-ordinated me in the completion of this project. I wish to place all my gratitude to my organizational mentor of LG for cooperating in the completion of this project. I would also like to acknowledge my sincer gratitude to my college mentor Prof. Gaurav Tanwar for helping me in the project work. I also convey my sincer gratitude to Director General sir, Director sir and all the faculty members of ITS-IM. Finally I am thankful to my family members and friends for their support and encouragement.
EXECUTIVE SUMMARY
The dissertation was started on 19th of November 2012 to 19th January 2013 in LG pvt Ltd. After
knowing all the relevant information about the refrigerator varieties available in the market, under the
guidance of Mr. Tarun Singh (Area Sales Manager). Initially I use to know the customer perception and
satisfaction of LG .My work area started in South Delhi.
My main objective is to know the perception of the customers therefore I took up the total sales
responsibility of the idea telecom in South Delhi. For this I used the method of personal interviews and
questionnaires. Along with the distributors a study of retailers was conducted to better understand the
grievances and identify the gaps. For this I visited around 100 customers in the area and spoke to them.
CONTENTS
CHAPTER TITLE PAGE NO.
1. INTRODUCTION INTRODUCTION ABOUT THE COMPANY INTRODUCTION ABOUT THE PRODUCT
2. PROBLEM ENVIRONMENT PROBLEM DEFINATION OBJECTIVES OF THE RESEARCH PROBLEM AREA COMPETIVE BRAND
3. RESEARCH DESIGN RESEARCH PROCESS DATA COLLECTION SAMPELING PLAN
4. ANALYSIS AND FINDINGS
5. LIMITATION
6. CONCLUTION AND RECOMMENDATION
7. APPENDIX – SAMPLE QUESTION
8. BIBLIOGRAPHY
INTRODUCTION
INTRODUCTION ABOUT THE COMPANY
The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar the GoldStar brand is still perceived as a discount brand. 'In 1994 Goldstar gained sponsorship from the 3DO Company to make the first 3DO Interactive multiplayer. It was very pricey, but is examined to be the best out of all of the 3DO Systems.
In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the United States.
Home Appliances
LG Electronics Digital Appliance Company is a global technology innovator, a trend-setter in style, and a pioneer in home appliance convergence, providing customers with exceptional value and convenience.
LG Electronics has brought new life style choices to the home with a series of premium products, including steam washing machines, the world’s first Internet and TV refrigerator, and ARTCOOL air conditioners, Digital convergence, health conscious and eco-friendly features, and innovative styles are major traits of LG Electronics’ premium products.
As the world’s number one provider of air conditioners and with more than half a century of expertise in the home appliance industry, LG Electronics is setting new standers for home appliance innovation, style, and convergence to enhance people’s everyday lives.
Main Products
Residential Air Conditioners
LG Electronics holds the record for the greatest sales in air conditioners in the world since 2000. What's more, the newly launched, energy-saving, stylish ARTCOOL Gallery series, which uses a new refrigerant, is set to boost LG Electronics' sales, helping it to retain its number one position in the air conditioning industry.
Commercial Air Conditioners
LG provides a wide range of tailored commercial air conditioning products suited to buildings in a variety of types and sizes. Its Multi V Plus is one of the world's highest capacity units, essential for high-rise buildings. LG's Multi V Sync provides simultaneous heating and cooling with one outdoor unit, ensuring optimal temperature conditions. LG's Multi V Space is also well known for being economical, aesthetically pleasing, and is ideal for sophisticated, luxurious living spaces.
Washing Machines
LG is currently the bestselling brand for front-loading washers in the United States and is stocked by major American distributors such as Best Buy, Home Depot, and Sears. Their innovative and stylish front-loading STEAM washer was voted number one by several consumer magazines (Consumer Reports, JD Power Magazine) for two consecutive years (2006, 2007) achieving official recognition as the best product on the market. LG Digital Appliance Company provides the largest capacity washing machines, customized to each individual market.
Refrigerators
LG Electronics analyzes the hidden needs of customers and reflects these in its products. LG Electronics sells convenient, spacious, and stylish refrigerators, e.g. the Icy Elegant Style refrigerator, which is mostly sold in Europe, and the French Doors (side-by-side) SxS refrigerators that are divided into three sections in the U.S.
Cooking Appliances
LG's compact, light wave oven SolarDOM, combines the functions of a convection oven, grill, and microwave oven, allowing chefs to cook a variety of food much faster than in conventional ovens. It also helps to retain nutrients and flavour.
LG's Built-In Kitchen creates the most convenient and efficient kitchen environment by seamlessly combining individual home appliance products into well-designed packages. LG's built-in packages include cooking appliances, dishwashers and refrigerators. LG's Built-in Oven with e-Cookbook on its LCD panel helps anyone become a world-class cook while saving time and effort.
Vacuum Cleaners
The LG Electronics Kompressor vacuum cleaner is a very unique product. It compresses any dust that is collected into a mass that can be easily removed. What's more, LG Electronics also offers a Steam Vacuum Cleaner that can vacuum and steam clean a rug at the same time and a robot cleaner that cleans your place while you are away.
Home Network Appliances
LG's Home Network is an intelligent home appliance networking system that connects all home appliances, enabling easy access and exchange of information via the Internet or home server. One example of this is the Interactive TV Refrigerator that offers real convenience. It has a 15-inch TFT LCD touch-screen TV that can also accommodate a DVD player. It provides useful information such as weather information and pre-loaded cooking recipes
INTRODUCTION ABOUT THE PRODUCT
Page 5 of 44
FRESH FOR LIFE
The fresh new range of LG Direct Cool Refrigerator with new extra features are the perfect range since 2010.Health meets convenience and style in this abundantly spacious and technologically superior range of LG Direct Cool Refrigerators .While advanced features like Vitamin Plus ensure extra health, unique features like Beauty and Care Box & Freeze and Cook Box extend the realm of our cooling requirements. Also, LG Direct Cool Refrigerators are, the fastest in Ice making. High on energy efficiency, these refrigerators can work without a stabilizer too. And to top it all, this beautifully crafted range adds extra style and elegance to our home with its splendidly stylish door designs and exquisite floral patterns.
Without putting extra load on the compressor, LG Direct Cool Refrigerators make ice fastest. Get ice up to 20% faster with specially designed patented ice try and that too without pressing a button. So whenever you get an idea to surprise your loved one with a chilled drink, you’ll be ready.
A technology that supplies vitamins to fruits which keep them fresh and extend this shelf life longer than other ordinary refrigerator compartments. Its anti-oxidant properties preserve up to 70% more vitamin C.
The compressor has a better energy efficiency ratio and consumes less power. It can operate at voltage as low as 135V and as high 290V, which means your refrigerator can work without stabilizer.
The art finish enhances the style factor. It blends with your interiors and gives a ‘fresh forever’ look
.
A special airtight box is provided in the freezer section, that can be directly placed into the microwave oven for defrosting.
A place to store all your medical and beauty products separately. So now no more looking around at the time of need.
The deodorizer prevents mixing of smell and freshness inside the refrigerator.
The specially designed cover of vegetable box prevents excess moisture to ensure that fruits and vegetables remain nutritious, healthy & fresh. So fill it with as much as you want.
It restricts the entry of bacteria and moulds inside the refrigerator. It can be easily removed and washed.
Now all Direct cool Refrigerators come with 5 star Rating, which allows you to save up to Rs. 3033/- on your annual electricity bill.
An intelligent control system alarms you if the door remains open for a minute. Saving cooling loss, it keeps food fresh and healthy.
No matter how big, the refrigerator is one part of your home that is always stuffed. That’s why, the new direct cool range comes with the Unique Base Drawer. The drawer can be used to store items that do not require cooling.
With a high capacity of 21 litters, the spacious Vegetable Box allows you to stock more vegetables for your ever growing family and sets you free from visiting the market every now and then.
On the clean top you can keep a vase, photo frame etc. to give your refrigerator a more stylish look.
The soft Veg Basket stores green chilies, lemon, garlic etc. Separately.
Shelves made of toughened glass are capable of holding heavy utensils. These can also be adjusted as per need and can take load as heavy as 175kg.^
MRP 9,800
MRP 10,600
MRP 12,400
MRP 14,650
MRP 16,550
MRP 16,300
MRP 15,500
MRP 16,750
MRP 13,000
MRP 13,750
The all new range of LG Direct Cool Refrigerators is available in an array of colours and patterns. From a thrilling Peppy red to a serene Blue Lagoon, a scintillating cosmic inox to an earthy wooden Tango, a mesmerizing Hazel Green to a delightful Pink Blossom; pick one that matches your style the most.
PROBLEM ENVIRONMENT
Problem Background The Project was to ascertain the standing condition of LG refrigerator in some
areas of Durgapur. Those areas are Bidhannagar and City Centre where the resident belongs to upper and middle income group. It is also true that the resident did not co-operate with me properly while answering the question. LG refrigerator being launched new in the market compare to Whirlpool and others therefore a vast market is already captured by them. The service centers of Whirlpool and others are reachable compare to the service centers of LG refrigerator. Another reason is that majority people residing in this area have a perception that Whirlpool is the best model for refrigerator with respect to durability, compressor, price, service and other features compared to LG refrigerator.
OBJECTIVES OF THE RESEARCH
The objective was to find out the market share of LG refrigerator, advantages and disadvantages from dealers as well as customers and to find out what problems they are facing with the LG refrigerator so that the problems can be re solved to increase the sale.
Aim: Ascertain the position and scope in the Market Acceptability of LG direct cool refrigerator compared to the competitive brands in the market based on the findings that is Pie Chart, Bar Charts and SWOT analysis.
Objective of the project:
Primary Objective
To study the product profile of LG refrigerator. The main objective of field survey during the project work was to find out the market
share of the LG refrigerator and also calculate the display share. To find out the positional dealer who can sale the LG refrigerator in large volume. To find out the problem faced by the dealer in sales and distribution. To ascertain the position and scope in the market of LG refrigerator on the basis of Pie
Chart and Bar Chart for identifying and appointing probable reason for its position. To suggest areas of improvements and ways to improve the performance of the brand
LG in the areas where the project and the related survey for the fulfillment of the project.
To evaluate and measure the brand LG’s competitors and rank the brands accordingly.
Secondary Objective
The objective was to find out the parameters which are important for the consumer while purchasing the refrigerator.
To find out whether consumers prefer the financial facility for buying LG refrigerator. To find out how frequently consumers change their refrigerator. To enhance the knowledge of consumer preferences about durable products. To increase the knowledge about LG refrigerator. To enhance the knowledge about the marketing activity.
Competitive Brands
The competitive brands of LG refrigerator are :-
Whirlpool
Godrej
Samsung
Kelvinator
METHODOLOGY
RESEARCH METHODOLOGYResearch Methodology is considered as the nerve of the project. Without a proper
well-organized research plan, it impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods.
Research DesignResearch design is important primarily because of the increased complexity in the
market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study the market acceptability of a product by studying the buyer’s behavior, consumption pattern, brand loyalty and by focusing market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual structure and strategy of investigation conceived as to obtain answers to research questions and to control variance.”
Research ProcessThe research process involves identifying a management problem or opportunity,
translating that problem or opportunity into a research problem and collecting, analyzing and reporting the information’s specified in the research problem.
Data Collection Method
After the research problem, we have to identify and select which type of data is to research. At this stage, we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data.
Primary Data:- The information’s collected by me through survey are the primary data. For primary data collection, we have to plan the following important aspects.
Sampling Research Instruments Data analysis and interpretation
1 Questionnaire,2 Pie chart, 3. Bar chart.
Questionnaire:- This is the most popular tool for the data collection. A questionnaire contains questions that the researcher wishes to ask his respondents which is always guided by the objective of the survey.
Pie chart :- This is a useful diagram to represent data which are divided into a number of categories. This diagram consists of a circle divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.
Bar chart:- This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and with equal widths. The length of the bars is proportional to the value they represent.
Secondary Data:- The information’s which are collected by the company for their personal survey. The companies profile, journals and various literature studies are important sources of secondary data. The secondary data’s are collected from
Information given by the company World Wide Wave.
Preparation of Report:- The report was based on the analysis and presented with the findings and suggestions. The sample of the basic questionnaire is attached with the report itself.
Sampling PlanSampling plan consist of the random selection of customer with respect to the area
they live in. Information for sampling to these customers is done with the help of questionnaire based on questions related to LG as well as other refrigerators and other different supporting questions.
Sample Unit : Employees, Home makers, working women, Teen agers, Children, Students, Retired citizens and others.
ANALYSIS
ANDFINDINGS
User and non user of refrigerator
Catagory No. of respondent Percentage (%) of respondentUser 44 88 %
Non-user 6 12 %Total 50 100
88%
12%
USERNON-USER
FINDINGS Out of the total 50 customers
88 % of the respondents use refrigerator. 12 % of the respondents are non users of refrigerator.
BRAND ACCEPTENCE OF REFRIGERATOR
Brand No. of users Percentage (%) of usersKelvenator
14 31.81 %
Whirlpool 8 18.18 %Samsung 6 13.63 %Godrej 5 11.38 %LG 11 25
KELVENATORWHIRLPOOL SAMSUNG GODREJ LG0
5
10
15
20
25
30
35
Series1
FINDINGS
Out of the total 44 users of refrigerator 31.81 % of the customers are users of Kelvenator 18.18 % of the customers are users of Whirlpool 13.63 % of the customers are users of Samsung 11.38 % of the customers are users of Godrej 25 % of the customers are users of LG
TYPE OF REFRIGERATOR
Type No. of respondents Percentage (%) of respondentSingle Door 35 79.54 %Double Door 9 20.46 %
FINDINGS
Out of the total 44 users of refrigerator 79.45 % use single door 20.46 % use double door
80%
20%
SINGLE DOORDOUBLE DOOR
OPINION REGRADING REFRIGERATOR AS A SOCIAL
STATUS
Opinion No of respondent Percentage (%) of refrigeratorYes 14 31.81%No 25 56.81 %
Both 5 11.38 %Total 44 100 %
32%
57%
11%
YESNOBOTH
FINDINGS Out of the total 44 users of refrigerator
According to 31.81 % of the total respondent, refrigerator is regarded as a social status.
According to 56.81 % of the total respondent, refrigerator serves the purpose of need in daily life.
According to 11.38 % of the total respondent, refrigerator isRegarded both as a social status as well as utility product solving the purpose of need.
FUTURE PROSPECT of refrigerator
Opinion No. of respondent Percentage (%) of respondentYes 16 32No 34 68
Total 50 100
32%
68%
YESNO
FINDINGS
RANK the following brands
Brand No. of respondent Percentage (%) of respondentKelvenator 10 20 %Whirlpool 14 28 %Samsung 5 10 %Godrej 8 16 %
LG 13 26 %Total 50 100 %
KELVENATORWHIRLPOOLSAMSUNG GODREJLG
BRAND AWARENESS OF LG REFRIGERATORCategory No. of respondent Percentage (%) of respondentAware 38 76 %
Non-aware 12 24 %Total 50 100 %
76%
24%
AWARENON-AWARE
OPINION ABOUT REFRIGERATORBrand Compressor Durability Colour Design Price
Kelvenator 10 10 4 7 8Whirlpool 14 12 8 7 14Samsung 8 4 6 10 5Godrej 12 14 4 8 10
LG 6 4 22 18 13
COM-PRESSOR
DURABILITY COLOUR DESIGN PRICE0
5
10
15
20
25
KELVINATORWHIRPOOLSAMSUNGGODREJLG
FACILITY DURIG PURCHASE
Mode of purchase No. of customers Percentage % of customersInstallment 15 34.09 %
Cash 29 65.91 %Total 50 100 %
34%
66%
INSTALLMENTCASH
PARAMETERS INFLUENCING IN PURCHASE
PARAMETERS No. of respondent
Price 20Product features7Brand 12Service 6Durability 5
PRICE PRODUCT FEATURES
BRAND SERVICE DURABILITY0
2
4
6
8
10
12
14
16
18
20
Series1
limitations
LIMITATIONS
Every study has certain limitations. In my study there is also certain limitation which I am unable to solve.
1. The Market Analysis was conducted in a very small area.
2. My analysis work period witnessed many ups and downs in product sale of different brands, which effected the perceptions of the customers. This was a drawback of my study.
3. The time factor was also important for me. I had only six months to complete my analysis, for which a full- fledged report was in sufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was difficult to make them hold for time.
5. The sample size is very small which represent my analysis on market acceptability of LG refrigerator.
6. I had only found the upper middle class family to fill-up the questionnaire, but generally an average middle class family was required for the analysis.
CONCLUSIONAND
RECOMMENDATIONS
Conclusion and Recommendations
To generate awareness regarding the LG refrigerator among customers , which ultimately help in sales
Advertising of new product line of LG refrigerator would keep the existing customers as well as prospects with up-to-date information.
Company should always focus on after sales service. Display share should be increased where there is less than 50 % offer, as we
know, “JO DIKTA HAI WO BIKTA HAI”. Company should try to improve service. No doubt the company products have
technically edge over competitors but in long run it may hamper the company’s profit.
Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers.
Customers consider quality as their first preference with respect to price, so the company should give more stress on this.
As there is a tough competition between Whirlpool and LG, it is necessary to take measure to overcome the area of down fall in LG with respect to Whirlpool.
The training to-in-shop demonstration should be given at frequent time interval and feedback should be considered positively.
The dealer should be keep better relations with customers and insist manufacturers to improve product service quality with updated technology.
APPENDIX
