Vinay Pradhan

Embed Size (px)

Citation preview

  • 7/30/2019 Vinay Pradhan

    1/48

    1 | P a g e

    A STUDY TO UNDERSTAND CUSTOMER PREFERENCE OF LG

    CONSUMER DURABLES IN INDORE

    Major Research Project

    Submitted towards partial fu lfi l lment of

    Master of Business Administration

    Awarded by

    Devi Ahi lya VishwaVidhyalaya, I ndore

    Guided By: Submitted By:

    Prof. Shahina Qureshi Vinay Pradhan

    MBA IV Semester

    Roll. No.11706674

    Facul ty of Management,

    Acropolis Technical Campus, I ndore

  • 7/30/2019 Vinay Pradhan

    2/48

    2 | P a g e

    CERTIFICATE

    This is to certify that the Major Research Project Report entitled A STUDY TO

    UNDERSTAND CUSTOMER PREFERENCE OF LG CONSUMER DURABLES IN

    INDORE, which is being submitted herewith for partial fulfillment of requirement

    for award of the degree of Master of Business Administration (Full time) by Devi

    Ahilya VishwaVidhyalaya (DAVV), Indore is successfully completed by Vinay

    Pradhan under my supervision and guidance.

    Date:

    Prof. Shahina Qureshi

    Countersigned:

    Internal Examiner External examiner

  • 7/30/2019 Vinay Pradhan

    3/48

    3 | P a g e

    DECLARATION

    I, Vinay Pradhan, hereby declare that the Project Report entitled A STUDY TO

    UNDERSTAND CUSTOMER PREFERENCE OF LG CONSUMER DURABLES IN INDOREis an

    authentic work done by me under the supervision ofProf.Shahina Qureshi.

    The Study was undertaken as a part of the course curriculum of MBA IV Semester (Full

    Time) ofFaculty of Management, Acropolis Technical Campus, and Indore affiliated to Devi

    Ahilya VishwaVidhyalaya (DAVV), Indore. This project work does not contain any part of

    any work which has been submitted for the award of any degree either in this university or in

    any other University/ Deemed University without proper citation.

    Date: Vinay Pradhan

    MBA IV Semester

  • 7/30/2019 Vinay Pradhan

    4/48

    4 | P a g e

    ACKNOWLEDGEMENT

    I would like to acknowledge my project guide Prof.Shahina Qureshi

    for guiding me in my research project. Her/his encouragement, time and effort are greatly

    appreciated. I would like to thank all the respondents who offered their opinions and

    suggestions for the survey that was conducted by me and all those who supported me directly

    or indirectly in completing my Major Research Project.

    Date: Vinay Pradhan

    MBA IV Semester

  • 7/30/2019 Vinay Pradhan

    5/48

    5 | P a g e

    INDEX

    Chapter No. Chapter Name Page No.

    1 INTRODUCTION 6-24

    2 REVIEW OF LITERATURE 25

    3 RATIONALE OF THE STUDY 26

    4 OBJECT OF THE PROJECT 27

    5 RESEARCH METHODOLOGY 28-29

    6 DATA ANALYSIS 30-37

    7 FINDINGS 38

    8 LIMITATIONS 39

    9 RECOMMENDATIONS AND SUGGESTIONS 40

    10 SCOPE OF PROJECT 41-42

    11 CONCLUSION 43

    12 BIBLIOGRAPHY 44

    13 APPENDIX/QUESTIONNAIRE 45-48

  • 7/30/2019 Vinay Pradhan

    6/48

    6 | P a g e

    INTRODUCTION

    Preface

    It is a matter of great honor for me to present before my humble readers this project based on

    Market Analysis of LG Consumer Durables. The data collected by me is both primary as

    well as secondary.

    This report on Market Analysis of LG Consumer Durables is the outcome of my effort. Thisreport can be easily understood by any person because I try to make more elaborate of thisreport.

    This report is design in easy language so that all readers dont face any problem on this

    report.

    In this report has done the analysis on LG Consumer Durables. Analysis report isrepresented by the graph so that can easily understand by any person.

    LG INDIA

    LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, SouthKorea was established in January 1997 after clearance from the Foreign InvestmentPromotion Board (FIPB). LG set up a state-of the art manufacturing facility at GreaterNoida, near Delhi, in 1998, with an investment of Rs 500 Cores.

    LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, GreaterNoida, and India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.

    ''Company is setting up a chain of exclusive premium showrooms. LG plans to launch60premium Brand Shoppes by the end of the first quarter of this year. At present, LG has atotal of 83 LG stores across the country, of which 45 are shops and 38 are exclusive stores.Brand shops will be placed in the premium segment and the target audience will comprise

    buyers interested in premium and high end products.

  • 7/30/2019 Vinay Pradhan

    7/48

    7 | P a g e

    LG Brand Shoppe goes beyond the concept of a normal exclusive store by having amore interactive environment and additional lifestyle orientation on display so that thecustomer can actually experience the LG products in his or her own home settings.

    LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share,is planning a brand new image. To attract inspirational and young consumers across India,company will roll out a new marketing strategy. The exercise will cost the company Rs 360core.

    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 more than 50 lakh householdsin India. LGEIL is celebrating the 11th anniversary this year.

    LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics'largest R&D centre outside Korea. We at LGSI focus on niche technology areas such asmobile application development, digital video broadcast and biometrics software and supportLG Electronics with our expertise. Motivated by a passion for technology, a strong workculture and loyalty to the organization, we are determined to see LG become one of the topthreebrands globally.

    Prominent consumer electronic company, LG Electronics Inc. has said that it expectsthe sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managingdirector of LG Electronics India has said that the company has earmarked 4.8 billion rupeesfor investment purpose in India this year. The said money will be used to market as well asmanufacture new products.

    LG Electronics, which is originally a South Korean Company with branch in India,

    informed that its sales of GSM mobile phones, color televisions, air conditioners and otherhousehold goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees. In orderto achieve its target, Shin said LG Electronics will concentrate on catering to the high-endconsumer market which will help boost sales this year. India churns out six (6) per cent of LGElectronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries.

    Before the liberalization of the Indian economy, only a few companies like Kelvinator,

    Godrej, and Voltas were the major players in the consumer durables market, accounting for

    no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony,Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control

  • 7/30/2019 Vinay Pradhan

    8/48

    8 | P a g e

    the major share of the consumer durables market. Consumer durables market is expected to

    grow at 10-15% in 2009-2010. It is growing very fast because of rise in living standards, easy

    access to consumer finance, and wide range of choice, as many foreign players are entering in

    the market with the increase in income levels, easy availability of finance, increase in

    consumer awareness, and introduction of new models, the demand for consumer durables hasincreased significantly. Products like washing machines, air conditioners, microwave ovens,

    color televisions (CTVs) are no longer considered luxury items. However, there are still very

    few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is

    characterized by the emergence of MNCs, exchange offers, discounts, and intense

    competition. The market share of MNCs in consumer durables sector is 65%. MNC's major

    target is the growing middle class of India. MNCs offer superior technology to the

    Consumers whereas the Indian companies compete on the basis of firm grasp of the local

    market, their well-acknowledged brands, and hold over wide distribution network. However,

    the penetration level of the consumer durables is still low in India.

    Classification of consumer durables sector

    1. Consumer electronic include VCD/DVD, home theatre, music player, color television

    (CTVs), cameras, camcorders, portable audio, HI-FI, etc

    2. White goods include dishwashers, air conditioners, heaters, washing machines,

    refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, and microwaves;built in appliances, tumble dryer, personal care product etc.

    3. Moulded luggage include plastics

    4. Clocks and watches

    5. Mobile phones

  • 7/30/2019 Vinay Pradhan

    9/48

    9 | P a g e

    History of Company

    The company was originally established in 1958 as Gold Star, producing radios, TVs,

    refrigerators, washing machines, and air conditioners.

    1958-1969-GoldStar the Electronics Industry Dream

  • 7/30/2019 Vinay Pradhan

    10/48

    10 | P a g e

    1970-79 Gold Star symbol of The Technology

    1980-88:- INTERNATIONALIZATION

  • 7/30/2019 Vinay Pradhan

    11/48

    11 | P a g e

    1989-94 INOVATION

    1995-98 GLOBAL LEADERS LG ELECTRONICS

    1999-2003-DIGITAL MANAGEMENT

  • 7/30/2019 Vinay Pradhan

    12/48

    12 | P a g e

    2004-2006 GREAT PEOPLE GREAT DESIGN

    2007-THE PEOPLE COMPANY

  • 7/30/2019 Vinay Pradhan

    13/48

    13 | P a g e

    The LG Group was a merger of two Korean companies, Lucky and Gold Star, from

    which the abbreviation ofLG 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 ofLucky, while electronic products were sold under the brand name of Gold Star. The

    Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG

    Electronics, and acquired Zenith Electronics of the United States.

    Global Operation:

    LG Electronics is playing an active role in the world market with its assertive global

    business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with

    around 82,000 executive and employees. LG Group

    1. LG. Philips LCD

    2. LG Chemical

    3. LG Telecom

    4. LG Powercom

    5. LG Twins

    6. LG Dacom

  • 7/30/2019 Vinay Pradhan

    14/48

    14 | P a g e

    Business areas and main products

    Mobile communications

    (a) CDMA Handsets,

    (b)GSM Handsets,

    (c) 3G Handsets,

    (d) Cellular Phones

    Digital appliance

    a) Air Conditioners,

    b) Refrigerators,

    c) Microwave Ovens,

    d) Washing Machines,

    e) Vacuum Cleaners,

    f) Home Net,

    g) Compressors for Air Conditioners and Refrigerators

    Digital display

    a) Plasma TVs,

    b) LCD TVs,

    c) Micro Display Panel TVs,

    d) Monitors,

    e) PDP Modules,

    f) OLED Panels,

    g) USB Memory,

    h) Flat Panel Computer Monitors

  • 7/30/2019 Vinay Pradhan

    15/48

    15 | P a g e

    Digital media

    a) Home Theater Systems,

    b) DVD Recorders,

    c) Super Multi DVD Rewriters,

    d) CDRW,

    e) Notebook PCs,

    f) Desktop PCs,

    g) PDAs,

    h) PDA Phones,

    i) MP3 Players,

    j) New Karaoke Systems,

    k) Car Infotainment

  • 7/30/2019 Vinay Pradhan

    16/48

    16 | P a g e

    VISION

    Global Top 3 by 2010

    Global Top 3 Electronic/Telecommunication

    Company

    GROWTH STRATEGY

    Fast innovation, Fast growth

    CORE COMPETENCY

    Product leadership, Market leadership, People leadership

    CORPORATE CULTURE

    No excuse, we not I, Fun workplace

    SLOGAN

    "Life's Good" represents LG's determination to provide delightfully smart

    products that will make your life good.

  • 7/30/2019 Vinay Pradhan

    17/48

    17 | P a g e

    The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan,

    "Life's Good" set in 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

    clearly establishes the unique identity of the company and unifies every division and product

    from LG Electronics across the globe.

    The Symbol

    The symbol of LG is the face of future. The letter L and G in a circle symbolizes world,

    future, youth, humanity & technology. LG philosophy is based on humanity. It also

    represents LGs efforts to keep close relationship with our customers around the world.

    The symbol consists of two elements.

    1. The logo in LG gray

    2. The stylized image of human face in the unique LG red color.

    Red color represents our friendliness and gives a strong impression of LGs commitment todeliver the best.

    The circle symbolizes The Globe. The stylized image of a smiling face in the symbol

    conveys Friendliness and Approachability.

    The one eye on the symbol represents Goal-oriented, focused & Confident.

    The slogan of LG is Lifes Good. It expresses Brands Value, Promises, Benefits,

    Personality.

  • 7/30/2019 Vinay Pradhan

    18/48

    18 | P a g e

    The Partnership

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

    relationship rather than an employee- employer relationship. This illustrates that managementand workers are not in a vertical relationship, but in a horizontal one.

    This culture is necessary for LG Electronics as it strives to become one of the world's top

    companies. Such a relationship is transformed into a value-creation relationship whereby both

    parties endeavor to address mutual problems and create new values together.

    Strategic Alliance

    LG Electronics is making technical advances and identifying business opportunities

    through various associative relationships with some of the world's leading companies.

    LG Electronics is striving to become number one in the world by mingling in various

    business and technological fields and making strategic alliances with world famous

    companies. "Strategic association between corporations," in which companies with different

    infrastructures cooperate in the fast-developing 21st century business field, is of key

    significance in terms of strengthening the existing industry and creating a new one.

    LG Electronics will do its best to create new products and services with an open mind, while

    developing new technologies and business fields through various associations with some of

    the world's most successful companies.

    1. 3M

    2. SUN

    3. YAHOO

  • 7/30/2019 Vinay Pradhan

    19/48

    19 | P a g e

    4. PHILLIPS

    5. TOYOTA

    6. MICROSOFT

    7. HP

    8. GOOGLE

    9. GE

    10. INTEL

    11. NORTEL

    12. HITACHI

    13. PRADA

    14. RENESAS

    15. TOSHIBA

    16. BESTBUY

    And the number follows many more..

    In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services

    will be available from LG mobile. This service is targeting 10 million LG mobile phones in

    over 70 countries.

    In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will

    work together to release, market, and offer LG mobile phones with Google services (search

    engine, map and email).

  • 7/30/2019 Vinay Pradhan

    20/48

    20 | P a g e

    LG Brand Identity

    The brand of LG is delightfully smart. LG strives to enhance the customers life and lifestyle

    with intelligent features, institutive functionality and exceptional performance.

    The brand platform:

    The LG brand is composed of four basic elements

    1. Value

    2. Promise

    3. Benefits

    4. Personality

    The Brands core Value that never changes.

    a. Trust,

    b. Innovation,

    c. People

    d. Passion

    The benefits that are consistently delivered to the customer includes

    a) Reliable products

    b) Simple design

    c) Ease of use

    d) Extraordinary Experience

  • 7/30/2019 Vinay Pradhan

    21/48

    21 | P a g e

    Personality describes the human characteristic that are expressed to the customer through

    Trustworthy, Considerate Practical, Friendly

    The Internal Culture of LG:

    LG practices four cultures

    1. Learning Culture

    2. Boundary less Environment

    3. A Carrier

    4. Growth

    According to LG, the Learning Culture continuously helps the employee to learn more and

    more to develop the habit of continuous learning.

    Boundary less Environment means that there is no difference between the levels of

    employees. There is transparency between the work and mutual understanding between all

    the employees.

    A carrier is highly growing in LG and one who is the employee can develop their carrier

    largely. A new comer will feel fully comfortable in the company and for a new comer the

    company is very helpful in the overall growth of personality.

    Growth in LG is very high for those who are in the company and for those who want to joinin LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of

    the examples of growth.

  • 7/30/2019 Vinay Pradhan

    22/48

    22 | P a g e

    Mission

    The mission of LG is to provide the customers with utmost satisfaction through leadership.

    The fundamental policy of development is to secure product leadership that the Customers

    may have the utmost satisfaction.

    Product Leadership

    We are focusing on six development areas to become the product leader.

    1. New Machine

    2. Reliability

    3. Conventional Installation

    4. Environment Friendly Product

    5. Low Noise & Vibration

    6. Energy Saving

  • 7/30/2019 Vinay Pradhan

    23/48

    23 | P a g e

    CUSTOMER SERVICE

    The best and the biggest international brands are here in India but the irony if it all:

    where is the after-sales service? So integral to a brand, so critical for its success and so takenfor granted in developed markets! In India, after sales service is, for want of a better

    description, the pits. So whats stopping the best companies from pulling out all the stops

    when it comes to providing the best service? Do customers expect for too much? Or is it that

    in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer

    durable companies, stockiest and dealers, analysts and market researchers to get feel of

    whats really keeping after sales from being used as a cutting edge marketing tool in pushing

    products across categories. Customers support following the purchase of a product or service.

    In some cases, after-sales service can be almost as important as the initial purchase. The

    manufacturer, retailer, or service provider determines what is included in any warranty (or

    guarantee) package. This will include the duration of the warranty traditionally one year from

    the date of purchase, but increasingly two or more years maintenance and/or replacement

    policy, items included/excluded, labor costs, and speed of response. In the case of a service

    provider, after-sales service might include additional training or helpdesk availability. Of

    equal importance is the customer's perception of the degree of willingness with which a

    supplier deals with a question or complaint, speed of response, and action taken.

    LG also had a big problem of after sale service in India. During the project we also

    came to know that after sale service becomes the big issue in the region. Customers as well as

    dealer were facing the problem of after sales service. Because of this problem many dealer in

    the region were not ready to sell LG product. So it becomes the big issue. But LG has taken

    some solid steps towards improving customers perception and experience of after sales

    service. Because it very important in competitive market to provide the best service. L G

    Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes

    to strengthen its after sales service in India. The company aims to recruit 10,000 people by

    the end of this year as a part of its branding strategy to focus on service and move away from

    discounting. LG Electronics has identified eight states with high after sales service call rates

    to ink the deals with the ITI. LG Electronics said, "The Company was trying to find a

    solution for effective after sales service since last two years. There is a huge need of trained

    manpower for the after sales service to align with the company's expansion and focus on the

    GSM mobiles and the personal computer segments."

  • 7/30/2019 Vinay Pradhan

    24/48

    24 | P a g e

    1. In the initial phase the company has entered into agreements with ITIs in the states like

    Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing

    with Uttar Pradesh.

    2. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to

    beef up the number to 10,000 by the year-end.

    3. "The company has offered a scholarship to the selected students for the last six months of

    their training program,"

    4. The company will invest Rs 8 crore (Rs 80 million) in employee development program this

    year with an aim to attain a 8 per cent attrition rate.

    5. The company moved away from the discounting strategy since last year and is putting

    thrust on the quality and service in its brand communication to position LG as a premiumconsumer electronics brand.

    6. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in

    Dermots public interview in ET on Wednesday). This shows commitment that Service must

    be made into a marketing differentiator, and leveraged thus.

    7. LG has the widest service network across the country; some estimates put it at a significant

    multiple of service infrastructure from our nearest competitor. While the sale size may also

    be a nice multiple from nearest, it shows the company is ready to put our money where our

    mouth is.

    8. The company has introduced a 211 service - once you register your complaint, we will call

    you back in 2 hours (hence 2), set up an appointment for the next convenient day for you

    (hence the first 1), and show up in the promised 1-hour slot (hence the second 1).If the next

    convenient day for you is the next day, thats great too. Its a disruptive action in an industry

    (including LG) having traditionally shied away from its service responsibilities, and thus not

    leveraging any mileage from it.

    9. The company is promoting 211 through ATL, probably the first time after sales service isbeing communicated in this fashion by any product company. You may have seen the TV

    commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of

    which revolve around prompt response.

    10. The first LG-owned service centre opened in Gorgon. (Service in India generally works

    through authorized service centers, in LGs case they work exclusively for LG.) A company-

    owned service centre tries that much harder, knows things better, and can even contribute as a

    revenue center.

  • 7/30/2019 Vinay Pradhan

    25/48

    25 | P a g e

    REVIEW OF LITERATURE

    Dynamics of Consumer Demand for New Durable Goods

    According Gautama Gowrisan Karan, Marc Ryman-Most new consumer durable goods

    experience rapid prices declines and quality improvements, suggesting the importance of

    modeling dynamics. This paper specifies a dynamic model of consumer preferences for new

    durable goods with persistently heterogeneous consumer tastes, rational expectations, and

    repeat purchases over time. We estimate the model on the digital camcorder industry using

    panel data on prices, sales and characteristics. We find that the one-year elasticity in response

    to a transitory industry-wide price shock is about 25% less than the one-month elasticity.

    Standard cost-of-living indices overstate welfare gain in later periods due to a changing

    composition of buyers.

    LG Electronics is making technical advances and identifying business opportunities through

    various associative relationships with some of the world's leading companies.

    LG Electronics is striving to become number one in the world by

    Mingling in various business and technological fields and making strategic alliances with

    world famous companies."Strategic association between corporations, "in which companies

    with different infrastructures cooperates in the fast-developing21st century business. Field is

    of key significance in terms of strengthening the existing industry and creating new one.

    13Growth in LG is very high for those who are in the company and froths who wanton join in

    LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the

    examples of growth.

    http://www.nber.org/people/gautam_gowrisankaranhttp://www.nber.org/people/marc_rysmanhttp://www.nber.org/people/marc_rysmanhttp://www.nber.org/people/gautam_gowrisankaran
  • 7/30/2019 Vinay Pradhan

    26/48

    26 | P a g e

    RATIONALE OF THE STUDY

    1. This project will give us great exposure to the consumer durable market because it

    includes product knowledge and field survey job in which the researcher will visit the

    LG stores in Indore. Through this survey the researcher will try to probe more into the

    market share of the LG Company with the consumers parameters in buying decisions.

    2. The current study will be helpful for the researchers for further research &for the

    organization on in framing marketing strategies for the coming period the mission of

    LG is to proven the customers with utmost satisfaction through leadership. The fund a

    mental policy of development is to secure product leadership that the Customers may

    have the utmost satisfaction the resigning one eve double-income families and

    consumer awareness are the main growth drivers of the industries.

    3. It will help the Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) to a

    great extent as it will invest nearly Rs 500 corrosion India this year in research and

    development, brand-building and other marketing initiatives.

  • 7/30/2019 Vinay Pradhan

    27/48

    27 | P a g e

    OBJECTIVE OF THE PROJECT

    Primary objective

    The main objective of filed survey during the project was to find out the market share

    of the LG and also calculate the display share.

    Find out the positional dealer who can sale the LG product in large volume.

    The main objective of research was to identify potential dealer and development these

    dealer. So LG can make them their direct dealer.

    This will ease the dependence on the some big dealer

    Find out the problem faced by the dealer in sales and the distribution.

    Secondary objective

    The Objective was to find out that how far the exhibitions are helpful in branding,

    While purchasing the consumer durables which parameter is most important for the

    consumer?

    Do the consumers prefer the financial facility for buying consumer durable?

    How frequently consumers change the consumer durable?

    To enhances the knowledge of consumer durable market.

    To increases the knowledge consumer durable product of LG.

    To enhances the knowledge about the marketing and branding activity.

  • 7/30/2019 Vinay Pradhan

    28/48

    28 | P a g e

    RESEARCH METHODOLOGY

    Research methodology is considered as the nerve of the project. Without a proper

    well-organized research plan, it is 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 design

    Research 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

    buyers behavior, consumptionpattern, brand loyalty, and focus 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.

    Type of research is Descriptive Research

    The type of research adopted for study is descriptive. Descriptive studies are

    undertaken in many circumstances when the researches is interested to know the

    characteristic of certain group such as age, sex, education level, occupation or income. A

    descriptive study may be necessary in cases when a researcher is interested in knowing the

    proportion of people in a given population who have in particular manner, making projections

    of a certain thing, or determining the relationship between two or more variables. The

    objective of such study is to answer the who, what, when, where and how of the subject

    under investigation. There is a general feeling that descriptive studies are factual and very

    simple. This is not necessarily true. Descriptive study can be complex, demanding a high

    degree of scientific skill on part of the researcher. Descriptive studies are well structured. An

  • 7/30/2019 Vinay Pradhan

    29/48

    29 | P a g e

    exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends

    to be rigid and its approach cannot be changed every now and then. It is therefore necessary,

    the researcher give sufficient thought to framing research.

    Questions and deciding the types of data to be collected and the procedure to be used

    in this purpose, Descriptive studies can be divided into two broad categories: Cross Sectional

    and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements

    from a given population. Thus, it may deal with household, dealers, retail stores, or other

    entities. Data on a number of characteristics from sample elements are collected and

    analyzed. Cross sectional studies are of two types: Field study and Survey. Although the

    distinction between them is not clear- cut, there are some practical differences, which need

    different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at

    finding the relations and interrelations among variables in a real setting. Such studies are

    done in live situations like communities, schools, factories, and organizations.

    Another type of cross sectional study is survey result, which has been taken by me. A

    major strength of survey research is its wide scope. Detail information can be obtained from a

    sample of large population .Besides; it is economical as more information can be collected

    per unit of cost. In addition, it is obvious that a sample survey needs less time than a census

    inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of

    the major purpose. Descriptive research is description of the state of affairs, as it exists at

    present. The main characteristic of this method is that the researcher has no control over the

    variables; he can only report what has happened or what is happening. The methods of

    research utilized in descriptive research are survey methods of all kinds including

    comparative and co-relational methods. The reason for using such needs to be flexile in itsapproach, but a descriptive study.

  • 7/30/2019 Vinay Pradhan

    30/48

    30 | P a g e

    DATA ANALYSIS

    Q1. Have you purchased any consumer durable during Exhibitions?

    Option Percentage Of Respondents

    Yes 35

    No 65

    Inferences

    1. 65 % of Customers have not purchased any consumer durable from exhibitions.

    2. Only 35 % people have purchased.

    3. It shows that consumers are coming in the exhibition for knowledge of product and

    also they want to know that weather there is actual price difference in exhibition andshop or not.

    Yes No

    -20%

    0%

    20%

    40%

    60%

    80%

    35%

    0

    0

    0

    65%

    0

    0

    0

  • 7/30/2019 Vinay Pradhan

    31/48

    31 | P a g e

    4. Consumers also want to compare to the different brand which are available in the

    exhibition.

    5. So exhibitions are more useful to increases brand awareness.

    6. People are less interested to purchase product from the exhibition.

    Q2. While purchasing consumer durable which parameter influences you?

    Option Percentage of Respondents

    Price 30

    Product Feature 19

    Brand 26

    Service 9

    Durability 16

    Price30%

    ProductFeature

    19%Brand26%

    Service9%

    Durability16%

  • 7/30/2019 Vinay Pradhan

    32/48

    32 | P a g e

    Inference

    1. 30% of customer gives importance to price. So it shows that Indian consumers are

    very price sensitive. They give more importance to price over the brand.

    2. 26% give importance to brand. So price and Brand matter a lots for the costumers.

    And they are also want best brand in best price.

    3. 19% to product feature Service 16% and durability 9% Service is also a big factor

    for the customer they are less interested in the durability.

    Q3.From where you prefer buying consumer durables?

    Exhibition

    Showrooms

    Other

  • 7/30/2019 Vinay Pradhan

    33/48

    33 | P a g e

    Inference:

    1. A majority of customers prefer to buy from showrooms. Very less proposition of

    customers buys from Exhibitions.

    2. 47% customers are prefer to by from the showrooms because the showrooms are

    more convenient to customers they also think that these shops give more discounts.

    3. People are less interested to buy from the exhibition they only visit the exhibition

    for price quotation of the product and the comparison of the product.

    Q4. You prefer to buy from the same as you have mentioned in Q.3 because of

    following reasons?

    Option Percentage of Respondents

    Attractive Price 42

    Services 27

    Offers 31

  • 7/30/2019 Vinay Pradhan

    34/48

    34 | P a g e

    Inference:

    1. Customers buy from showrooms because of the service and convenience.

    These are two main factors.

    2. Customers are preferred to buy from the showroom because of they think that these

    convenient store may provide good after sell service.

    3. Customer also thinks that there is more chance to bargain and they can get more

    discounts in these showrooms.

    4. Price also a factor that attracts the customer in these showrooms.

    AttractivePrice42%

    Services27%

    Offers31%

  • 7/30/2019 Vinay Pradhan

    35/48

    35 | P a g e

    Q5. Which consumer durable you have and of which brand?

    o CTV

    o LCD

    o PLASMA

    o REF

    o MW

    o AC

    Inference

    In CTV section maximum customers have Onida, in LCD Sony is the leader, in

    plasma BPL is the leader, In Ref LG is the leader, and MW LG is the leader. In WM

    there are companies and in AC also.

  • 7/30/2019 Vinay Pradhan

    36/48

    36 | P a g e

    Q.6. How frequently you change your consumer durables?

    1-3 years

    3-5 years

    5-10 years

    More than 10 years

    Inference

    1. Customers prefer to change consumer durables within 5-10 years. In India people

    do not change consumer durable frequently.

    2. 23% customers do not change their consumer durable within 10 year.

    3. It represent that Indian consumer do not prefer to change their consumer durable

    frequently.

    1-3 Years

    3-5 Years

    5-10 Years

    More than10 Years

    1-3 Years

    3-5 Years

    5-10 Years

    More than 10 Years

  • 7/30/2019 Vinay Pradhan

    37/48

    37 | P a g e

    Q.7.Do you prefer any financing scheme to purchase consumer durables?

    Inference

    Majority of customers do not prefer any financial scheme

    YesNo

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    Yes

    19%

    No81%

  • 7/30/2019 Vinay Pradhan

    38/48

    38 | P a g e

    FINDINGS

    Customer Survey Findings

    1. Secondary supports play an important role in the customers mind and create awareness

    among the customers. The secondary support includes Demonstration, Exhibition & Even

    Sponsors.

    2. From the survey it was found out that the majority of customers dont buy consumer

    durables from exhibitions. They just visit the exhibitions to see the co. latest model.

    3. They want to buy from the showrooms or from co. showrooms. For them service is

    important .Beside convenience and other factors service is key factor.

    4. Also majority of customers do not want any financing scheme for purchasing the durables.

    5. There was heavy rush on weekends so large numbers of ISDs were appointed that day.

    Also the live demo calls helps in selling. Exchange offers also generate sale.

    6. Customers are also now very choosy in buying the product and it is important for the

    company to make loyal customer of their brand.

    7. In survey we found that LG has captured maximum market share in every category. LG

    dominates CTV, LCD, and Refrigerator, and Washing machine, category.

    8. LG and Samsung have bottle neck competition in TV and REF. category.

    9. The product is well aware and it is on top of mind of customer.

    10. Customers are also now very choosy in buying the product and it is important for the

    company to make loyal customer of their brand.

  • 7/30/2019 Vinay Pradhan

    39/48

    39 | P a g e

    LIMITATIONS

    Every study has certain limitations. In our study, also there were certain limitations, which I

    could not able to solve.

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

    2. Our research work period witness the biggest ups and downs in product sale of different

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

    study.

    3. Time factor was also important for us. We had limited time for the research, for which a

    full-fledged report was insufficient for me.

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

    them hold for time.

    5. We had only found the upper-middle class family to fill up the questionnaire, but

    generally, an average middle class family was required for the study.

    6. The sample size is also very small which represent my research on consumer behavior.

  • 7/30/2019 Vinay Pradhan

    40/48

    40 | P a g e

    RECOMMENDATIONS AND SUGGESTIONS

    Customer Survey

    1. Exhibitions do not help to generate so much sells but they should be conducted regularly.

    This helps in generating awareness regarding the product in customers which ultimately helps

    in sales.

    2. Also it is helps in advertising for the new products. Like in this exhibition new LCD

    SCARLET was advertised. Company should always focus on service.

    3. Display share should be increased where there is less than 50% as LG also believes that

    JO DIKHTA HAI WO BIKTA HAI.

    4. Company should try to improve service. No doubt the company products have technically

    edge over competitors but in long run it may hamper the companys profit.

    5. Company should concentrate more on its major drivers LCD, IT, and GSM. Branding andpromotions should be done effectively as it creates a long lasting image in the mind of

    customers.

    6. Company should also cater to the needs of sub dealers as some of the sub dealers have

    potential of high sales.

  • 7/30/2019 Vinay Pradhan

    41/48

    41 | P a g e

    SCOPE OF PROJECT

    This project gives us great exposure to the consumer durable market because it

    includes product knowledge and field survey job in which we visited the LG stores in Delhi.

    Incidentally summer time was during our survey period which exposed us to another aspect

    of product promotion. LG always insist the 50% display share of LG product because LG

    believes that JO DIKHTA HAI WO BIKTA HAI. While visiting the shops we

    1. Calculated the display share of the LG product in every shop.

    2. Collected the data of actual monthly sale of the LG products in few shops.

    3. Checked the availability of LG catalogue and the POPs in the store.

    4. Found out the problems that the dealer are facing while selling the LG products.

    5. Found out the customer response for LG products by asking the owner of the shop.

    6. Found out the distributor name from who they were purchasing their products and also

    whether they have direct dealership and which brand.

    7. Checked whether demo calls are attended or not

    Key findings:-

    1. By calculating the display share we found that in most of store LG has 50% display share

    almost all categories.

    2. By the actual monthly sale of particular store we came to know the capacity of the store

    and how much product can they sell.

    3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not andit also helps to find out the new dealers who are capable of being an LG dealer

    4. We also came to know while visiting the shops that there was big problem of after sales

    service.

    5. Many dealers were facing the problem of after sale service because there is no follow up

    calls from LG.

    6. Demo calls also not done properly.

  • 7/30/2019 Vinay Pradhan

    42/48

    42 | P a g e

    Scope

    1. In term of purchasing power parity (PPP), India is the 4 th largest economy in the world and

    overtake Japan in the near future become the 3rd largest.

    2. Indian consumer durable market is expected to reach $400 billion by on 2010

    3. India has the youngest population amongst the major countries. There are lot of people in

    the different income categories nearly the two third population is below the age of 35 and

    nearly 50% is below 25.

    4. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year.

    And there are 6 million rich household in India.

    5. The upper-middle and high-income household in urban areas are expected to grew to 38.2

    million in 2007 as against 14.6 million in 2000.

    Opportunity

    1. In India the penetration level of white goods is lower as compared to other developing

    countries.

    2. Unexploited rural market.

    3. Rapid urbanization.

    4. Increase in income level, i.e. increase in purchasing power of consumers.

    5. Easy availability of finance.

    Threats

    1. Higher import duties on row materials.

    2. Cheap imports from Singapore, China and from other Asian countries.

  • 7/30/2019 Vinay Pradhan

    43/48

    43 | P a g e

    CONCLUSION

    LG is the most preferred brand of consumer. After the liberalization, foreign players like LG,

    Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players

    control the major share of the consumer durables market.

    We found that in most of store LG has 50% displays share almost all categories. The most

    competitor brand in market of LG is SAMSUNG. LG is high growth of sale in market due to

    booming in new technology and better service.

  • 7/30/2019 Vinay Pradhan

    44/48

    44 | P a g e

    BIBLIOGRAPHY

    www.lgindia.com

    www.google.com

    www.wikipedia.com

    Business world

    Business today

    LG magazine

    Economics times News paper

    Times of India

  • 7/30/2019 Vinay Pradhan

    45/48

    45 | P a g e

    APPENDIX/QUESTIONNAIRE

    Q1. Have you purchased any consumer durable during Exhibitions?

    Option Percentage Of Respondents

    Yes

    No

    Q2. While purchasing consumer durable which parameter influences

    you?

    Option Percentage of Respondents

    Price

    Product Feature

    Brand

    Service

    Durability

    Q3.From where you prefer buying consumer durables?

    Exhibition

    Showrooms

    Other

  • 7/30/2019 Vinay Pradhan

    46/48

    46 | P a g e

    Q4. You prefer to buy from the same as you have mentioned in Q.3

    because of following reasons?

    Option Percentage of Respondents

    Attractive Price

    Services

    Offers

    Q5. Which consumer durable you have and of which brand?

    o CTV

    o LCD

    o PLASMA

    o REF

    o MW

    o AC

    Q.6. How frequently you change your consumer durables?

    1-3 years

    3-5 years

    5-10 years

    More than 10 years

  • 7/30/2019 Vinay Pradhan

    47/48

    47 | P a g e

    Q7. Have you purchased any consumer durable during Exhibitions?

    a)Yes

    b)No

    Q8. While purchasing consumer durable which parameter influences

    you?

    a)Price

    b)Product feature

    c) Brand

    d)Service

    e)Durability

    Q9. From where you prefer buying consumer durables.

    a)Exhibition

    b)Showroom

    c) Other

    Q10. You prefer to buy from the same as you have mentioned in Q.3

    because of following reasons.

    a)Attractive Price

    b)Service

    c) Demonstrations

    d)Offers

    e)Convenience

  • 7/30/2019 Vinay Pradhan

    48/48

    Q11. Which consumer durable you have and of which brand?

    a) CTV -----------------

    b) LCD -----------------

    c) PLASMA -----------

    d) REF -----------------

    e) WM ------------------

    f) MW ------------------

    g) AC -------------------

    Q12. How frequently you change your consumer durables?

    a) 1-3 years

    b) 3-5 years

    c) 5-10 years

    d) More than 10 years

    Q13. Do you prefer any financing scheme to purchase consumer durables?

    a) Yes

    b) No