A PROJECT REPORT

ON COMPARATIVE STUDY OF SELECTED HOME APPLIANCES OF SELECTED COMPANIES (SAMSUNG & LG)

In partial fulfillment for requirement of Research Methodology course in two years full time Masters of Business Administration

INTRODUCTION TO HOME APPLIANCES

MARKETING STRATEGIES INDUSTRY PROFILE

INTRODUCTION
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The Japanese threatened to take over the world twice in the last century: first with their military strength and later with their electronic goods. This century, it is the South Koreans' turn - at least so it seems in India. The South Korean companies - Samsung Corp and LG Electronics Corp - have proved that with their innovative and aggressive strategies, Korean products, which even until the 1990s were considered low-end mass-manufactured stuff, cannot only rule markets in India but can also push multinationals and their Indian competitors. In mid-1990s. India had just opened to foreign competition, and consumers were yet to get a taste of relatively high-technology products. The Japanese majors were undecided about India's potential, and other multinationals such as Whirlpool, GE, and Electrolux were yet to get a foothold. Indian brands, which included BPL, Videocon, Kelvinator and Godrej, had the market all to themselves. It was against this backdrop that the Koreans grabbed the opportunity India's liberalizing economy offered, and they entered the country with a simple message: we mean business and never before have Indian consumers been exposed to the price performance of the products we have to offer. And seven years down the track, while the cautious Japanese and quite a few foreign brands in the home durables sector are still struggling and some of the Indian brands - such as BPL and Kelvinator - are almost going into oblivion, Korean brands are storming in and taking over the markets in each of their product categories. Korean products are now all-pervasive in Indian homes; they are everywhere from cars, TVs, washing machines and microwave ovens to computer accessories and, ultra high-tech home networking products that can enable a refrigerator to order supplies over the Internet and control room air-conditioners and even record a DVD movie from a TV through a mobile phone. Their growth rates are stunning. For instance, in five years Hyundai has sold more than 350,000 cars - nudging the 400,000 mark - to become the fastest-growing and second-largest car manufacturer in India. Samsung and LG clocked the second and third positions in the home appliances and electronic products market, and right now they are the fastest growing home appliance companies in country.

India wasnt exactly virgin territory for the Koreans entered-consumer electronics. There was a clutch of players, both Indian and multinational, those were already present. But the Koreans grew and now they are bigger than a whole generation of FERA companies such as GlaxoSmithKline, Phillips India, Colgate-Palmolive, Cadbury, Nestle and Castrol. If we look at market domination as an indicator; L G is the clear leader in the electronic products business,

followed by Samsung. Between the two, they dominate the consumer electronics business, which includes a 30% share in colour televisions (CTVs). And companies of all nationalities Indian (BPL, Videocon), European (Electrolux, Philips), American (Whirlpool) and Japanese (Matsushita,Sony)- have collapsed before their onslaught and Koreans have emergedas winners.

The timing of their entry into India was more propitious. They came after industrial licensing made its exit. It was after imports controls on inputs and equipment had largely ended. So they were able to produce in India what was cheaper to produce here, and did not have to follow a preconceived plan of import substitution. And cheaper production meant that they had a fighting chance in competition, both in India and abroad. But timing was not everything; the Koreans have also brought with them certain gifts of great value in the Indian environment. One is the way these companies set their objectives. India is a price sensitive country and they have not neglected that. They have derived price targets from the local market; they have aimed to be competitive, not necessarily cheap. But within those price objectives they have achieved reliable quality and sought to be a step ahead in product technology. Their greatest asset has been the trust of consumers they have gained. Their next biggest advantage is their nimbleness. They have set up subsidiaries that are large by our standards; but their speed of reaction to market changes, speed of correction of course, speed of execution of strategic initiatives are too good. The working conditions in the office are also different from the others. Like European and Anglo-Saxon model has been focused on results, their approach to work place has been reasonably laissez-faire. For Koreans, its different. The work place is pretty hierarchical and seniors are given tremendous respect.

Marketing Strategies:

 They studied closely and picked up the salient features of the Japanese manufacturing and made themselves an expert in that. Their planning is very meticulous on the execution of the job in hand. The Koreans never shown any bias against India. The Americans and Japanese took their brand equity for granted. The Koreans did not. As a result of this they didnt make any value judgments of the Indian customers and introduced contemporary products. This way they got their brand noticed. Both L.G and Samsung have consistently launched contemporary models-be it fuzzy logic washing machines, flat screen TVs or microwave ovens-in step with their launch globally. o Further power was added to this strategy of dazzling Indians with global products was their high advertising spends. L.G spent Rs 110 crore in advertising while Samsung spent Rs 80 crore in 2001. In 2003 L.G spent Rs 225 crore and Samsung Rs 100 Crore. Such high voltage advertising has made the Koreans the biggest spenders in their businesses, and they outspend competition by a factor of at least two. These spends have placed the Koreans in the class of some of the highest spenders in India such as Colgate, ITC, Dabur and Hindustan Lever. They are huge buyers of advertising so they exude through a lot of visible brand building. The Koreans have also started making a name for their ability to understand what customers want. They practice this shibboleth with unusual vigor. They figure out quickly and very well what the consumer wants. But the important part is they quickly adapt their strategies accordingly. Unlike U.S companies following the office marketing strategy the Koreans follow the principle of Feet marketing. That means even the higher officials roam about the market to give boost to dealers and also to gather the first hand information on the current market conditions. This helps in knowing the ground realities better which results in a better strategy. The Koreans always think big and take risks. Thats why they have infused so investment, which is now bearing the fruits. Players like Whirlpool and Electrolux that made a foray into consumer electronics around the same time that L.G and Samsung did. They hedged bets by buying existing brands

and capacities here (Kelvinator, Maharaja, Allwyn, and the like) while the Koreans built capacity from scratch and gives them an edge over the competitors. The Koreans want to outdo the Japanese. They dont start on a hunch. Their planning is meticulous. When they take up a job they take it very seriously. All Korean managers bring on board a monk like devotion to their task at hand. This ensures quick execution of the work. The Koreans believe that manufacturing is a key strength and thats why they eschew contract manufacturing and invest in their own manufacturing facilities around the globe. They have culture sensitive workshops to ensure that the Koreans and Indians work well together. They bundle one product with another so as to promote the weaker one backed by the established product. They have well-entrenched the consumers in India by sponsoring a number of premier events like cricket matches and others with a high TRP ratings. According to prof.R.R.Krishnan at center for East Asian Studies of Jawaharlal Nehru University the insecurity element in the history of Korean comprising colonization, acquisition of their country in the past tends them to form a marketing strategy that requires best of them. Though the Koreans are making huge profits in India they have not fully presented themselves in India. Many business like chip manufacturing, humungous chemicals, energy business etc. which they are operating in other countries has not found its way to India. The reason being the instability and lack of infrastructure of India to support these businesses. This shows their marketing tactics and their inclination towards the prelaunch test that they conduct before induction of each product in India. The Koreans always do a prelaunch market survey unlike its Japanese or U.S counterparts who take their brand equity for granted. This research gives useful inputs to the Korean players and also times to adapt themselves for the new situation.

OVERVIEW OF CONSUMER DURABLE INDUSTRY

DEFINITION OF THE CONSUMER DURABLE INDUSTRY SIZE OF THE MARKET BACKGROUND MAJOR PLAYERS

Industry profile
OVERVIEW OF THE CONSUMER DURABLE INDUSTRY
Definition of the Consumer Durable Industry: Consumer goods like washing machines, motorcars, TV sets, audio-video systems etc, which yield services or utility over time rather than being completely used up at the moment of consumption can be termed as the consumer durables. Most consumer goods are durables to some degree, and the term is often used in a more restricted sense to denote relatively expensive, technologically sophisticated goods consumer durables such as the examples given above which implies high involvement at the time of purchase. The consumer durables segment can be segregated into consumer electronics (TVs, VCRs/VCPs and audio systems) and consumer appliances (also known as white goods) like refrigerators, washing machines, air conditioners (ACs), microwave ovens, vacuum cleaners and dishwashers. Over the years demand for consumer durables has increased with the rising level of incomes, double income families, changing lifestyles, availability of credit, increasing consumer awareness and the introduction of new models by the Indian as well as multinational companies. Consumer durable industry was once considered to be luxury item with targeting the uppermiddle class for consumption. With increasing competition, price wars, branding and promotional strategies, the concept has melted down to the masses and has become a part of the households necessities even in the lower-middle class and rural part of the countries. Most of the segments in this sector are characterized by intense competition, emergence of new companies (especially MNCs), and introduction of state-of-the-art models, price discounts and exchange schemes. Despite of that MNCs are entering in to Indian market because growing Indian middle class of around 250 millions. Also it is widely accepted that consumer durable penetration increases rapidly after per capita income (PCI) crosses a threshold limit of $2000. In India, the PCI is low at $370, though it is equivalent to $600 on PPP (Purchasing Power Parity) basis and expected to see a consistent growth of over 6% over the next years to come.

According to NCEAR survey estimates, the number of households in the higher and middle-income categories will rise rapidly. There will also absolute reduction in the number of households in the low incomes. This will lift large number of households to income levels at which they can become purchasers of consumer durable products. Continuous economic growth and higher income levels will drive growth in volumes, any reduction in the duties will leads to lower down of the values and this will bring more customers for the durable products.

The biggest attraction for MNCs is the growing Indian middle class (approx. 250 m). This market is characterized with low penetration levels. MNCs hold an edge over their Indian counterparts in terms of superior technology combined with a steady flow of capital, while domestic companies compete on the basis of their well-acknowledged brands, an extensive distribution network and an insight in local market conditions. The Indian middle class market of 250 million is the biggest attraction for the MNCs along with the level of the penetration of consumer durables in the India has more attracted Multinationals to the India, in the case of consumer durables penetration levels of TV is believed to the highest, and after that the penetration of the refrigerator comes. In the future, earnings will be driven by rising demand for consumer durables in general. As per the National Sample Survey Organization project of "Use of durable goods by Indian households", the per capita total expenditure on durable goods increased from Rs112.89 in 198788 to Rs148.02 in 1993-94. Similarly, NCAER estimates point to the fact that the number of households with monthly incomes above Rs 10,000 in metros and Rs 5,000 in non-metros is expected to rise from 22.7 million in 1995-96 to a huge 57.2 million in 2005-06. This will mean that firstly, there will be a perceptible shift towards branded products and secondly, the level of aspiration buying will increase.

Size of the Market:

The total Rs. 15500 crore consumer durables industry consists of Colour Televisions, Black and White Televisions, Refrigerators, Washing Machines, Air-conditioners, Microwave Ovens, Vacuum Cleaners, Audio Systems, Electronic Appliances and Water Purifiers. The table below shows the Estimated industry size and the competition in the various segments. Now considering consumer durables industry in general, the drivers that will leads to the growth of the industry in general will be: The degree of distribution network in the market. The advertising and marketing strategy adopted by the players in the industry. The brand image of the product as perceived by the consumer. The technology used by the company viz. state-of-the art technology or and older version. The ability of the company to introduce newer products and newer product features. The capability of the company to service its products. The discount schemes and consumer finance facility available. The market positioning of the product. The cost competitiveness and pricing strategy of the company. The financial strength of the players. The competition in the industry has intensified after the liberalization and more and more MNC are coming to India to target the huge middle class of the country. The competition is dependent upon the brand strength and distribution network. In other words, the advertising and marketing expenses play a vital role in competition. As a result of the increased competitive activity, the advertising and marketing costs as a percentage of operating income have increased over the years. This ratio for the industry has increased from 4.4 percent in 1993 to 6.7 percentage in 2000. However, the export prospects are least or minimal because indigenous manufacturers do not possess adequate brand equity or excellent product quality. There are even constraints like transportation due to poor infrastructure and relatively under developed markets in the neighbouring countries.

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Changes in the Strategies:

There is a shift in trend as the emphasis has moved from the manufacturing process to marketing and advertising strategies. In other words, the marketing game has become a vital factor for driving sales as against the manufacturing process of the products in the past. Players are now concentrating on the creation of brand image in order to economize their scale of operations and to increase their brand strength. The advertising expenses of the companies operating in this segment are going high every year and the returns are diminishing still the brand will play a major role in selling of the product. Because of this, most of the manufacturers like, Videocon and Electrolux are acting as OEM manufacturers for manufacturing refrigerators of Samsung and LG. Even, players have increased the percentage of their advertising and marketing costs as a percentage to operating income over the years; the ratio for the industry has increased from 4.6% in 1993 to around 7% in 2000. The brand building is very critical in the industry and constant advertising is necessary.

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BACKGROUND: Prior to liberalization, the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly 90% of the market. They were first superseded by players like BPL and Videocon in the early 1990s, who invested in brand-building and in enhancing distribution and service channels. Then, with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa. Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a large number of foreign players means the consumer is no longer starved for choice. But this has also resulted in an over-supply situation in recent times as growth levels have tapered off. MAJOR PLAYERS: The major players in the consumer durables industry, operating in different sectors such as air conditioners, washing machines, freez& television include: BOSS Portable Blenders- Manufacturer and exporter of portable blender and home appliances includes hand held mixers, juice makers, stainless steel blender and more. Eureka Forbes - Details on consumer products include vacuum cleaners, floor care equipment, high pressure water jet cleaners and electronic security systems. Kelvin Systems - Dealers for Carrier Aircon Ltd (airconditioningequipment), Honda (Siel) Power Products Ltd (portable electric generators), and Eureka Forbes Ltd Onida- Provide an online showroom to purchase the entire range of Onida products. Padmini Appliances - Manufacturers of gas stoves, oven-toaster-griller, juicer-mixer-grinder, electric hot plates, washing machines, ceiling fans. Philips - Details for consumer electronics, lighting, domestic appliances, semi conductors, components, enabling technologies, multi media projectors etc. PICASSO Home Products - Manufacturer and Exporter of various home appliances like roti maker, mixer grinder, sandwich maker, oven toaster griller, Non Stick Appliances and more. Salora- Manufactures black-and-white & colour television sets, Panasonic fax machines, printers, and digital cameras; colour monitors and cordless phones. Sansui - India - Manufacturer of electronic products, audio systems, home theatres, projection TVs, video CDs and home appliances.

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Singer - Manufacturers of sewing machines, food processors, refrigerators, televisions, oven, toasters, washing machines, electric irons etc. Sony India - Details of product ranges from colour TVs, hi-fi music systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, Wega T.V etc. Sony World - Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD players, cordless phones, walkman, disc mans, and Televisions.

Sansui - India - Manufacturer of electronic products, audio systems, home theatres, projection TVs, video CDs and home appliances. Singer - Manufacturers of sewing machines, food processors, refrigerators, televisions, oven, toasters, washing machines, electric irons etc. Sony India - Details of product ranges from colour TVs, hi-fi music systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, Wega T.V etc. Sony World - Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD players, cordless phones, walkman, disc mans, and Televisions. Sun flame Appliances - Manufacturers of kitchen appliances, home appliances and electrical appliances in India. Usha International - Manufacturer of sewing machines, fans, air conditioners, water coolers, home appliances, agricultural and domestic pumpsets, and auto products.

Usha Lexus - Makers of home appliances like sandwich toasters, juicer, mixer grinders, ovens, ventilating fans, irons and room coolers. Voltas Limited - Makers of room ac and refrigeration equipment, water coolers, cranes, pumps and office furniture; includes machine tools, industrial chemicals etc Videocon - Suppliers of home appliances, TVs, refrigerators, ACs, air conditioners, audios, tape recorder, colour monitors, digital organizers, Kenwood digital hi-fi systems, television sets etc. L.G India - Details of product ranges from color TVs, hi-fi music systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, T.V etc. Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD players, C.D.M.A mobiles, Walkman, and disc mans, and Televisions.

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Samsung Electronics India Ltd - Details of product ranges from colour TVs, hi-fi music systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, T.V etc. Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD players, mobiles, walkman, disc mans, and Televisions.

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LG
CONCEPT AND DEFINITION COMPANY PROFILE MARKETING MIX

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CONCEPT AND DEFINETION

A social definition shows the role marketing plays in society. One marketer said that marketings role is to deliver a higher standard of living. A social definition that serves our purpose follows: Marketing is a societal process by which individual & groups obtain what they need and want through creating, and freely exchanging products & services of value with others. For a managerial definition, marketing has often been described as the art of selling products. But people are surprised when they hear that the most important part of marketing is not selling! Selling is only a tip of the marketing iceberg. Peter Drucker, a leading management theorist, puts it this way: There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know & and understand the customer so well that the product & service fits him & sell itself. Ideally, marketing should result a customer who is ready to buy. All that should be needed than is to make the product available. Coping with exchange processes calls for a considerable amount of work and skill. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties .Marketing management as the art & science of choosing target market & getting, keeping & growing customers through creating, delivering and communicating superior customer value EVOLUTION THROUGH THE CHANGES:

Marketing activities should be carried out under well through out philosophy of efficient, effective, & socially responsible marketing. However, there are five competing concepts under which organizations conduct marketing activities: the production concept, product concept, selling concept, marketing concept & societal marketing concept. THE PRODUCTION CONCEPT:

The production concept holds that customers will prefer products that are Widely available inexpensive. Managers of production based business concentrate on achieving high production efficiency, low cost, & mass distribution. They assume that consumers are primarily interested in product availability and low prices. It is used when a company wants to expand the market. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its feature.

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THE PRODUCT CONCEPT :-

The product concept holds that consumers will prefer those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products & improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs. THE SELLING CONCEPT:-

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization must therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance & must be coaxed into buying. It also assumes that the company as a whole battery of effective selling & promotion tools to stimulate more buying. The selling concept is also practiced in the nonprofit area by fundraisers, college admission offices, & political parties. Most firms practice the selling concept. When they have over capacity. Their aim is to sell what they make rather than make what the market wants. THE MARKETING CONCEPT: -

The marketing concept is a business philosophy that challenges the three- business orientation. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering & communicating customer value to its chosen target market. The marketing concept has been expressed in many colorful ways: Meeting needs carefully Putting people first(British Airways) Partners for profits (Milliken & company) The marketing concept rests on four pillars: target market, customer needs, Integrated marketing, and profitability. THE SOCIETAL MARKETING CONCEPT: -

The societal marketing concept holds that the organizations task is to determine the needs, wants & interests of the target market & to deliver the desired satisfaction more effectively & efficiently than competitors in a way that preserves & enhances the consumers & the society well being. The societal marketing concept calls upon the marketers to build social & ethical consideration into their marketing practices. They must balance & juggle the often-conflicting criteria of company profit, consumer want satisfaction, and public interest.

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COMPANY PROFILE LG Electronics Inc. LG Electronics, Inc. was established in 1958 as the pioneer in the Korean consumer electronics market. The company is a global force in electronics, information and communications products with 2004 annual sales of US $38 billion (consolidated). With more than 66,000 employees working in 76 subsidiaries in 39 countries around the world, LG Electronics is comprised of four main business companies including Mobile Communications, Digital Appliance, Digital Display, and Digital Media. Corporate Name : LG Electronics Inc. Established Corporate Office LG Twin Towers 20, Yoido-dong, Youngdungpo-gu Seoul, Korea 150-721 Tel: 82-2-3777-1114 URL: http: / / www.LGE.com Vice Chairman & CEO S.S.Kim Business Area and Main Product Mobile Communications Company Wired -wireless handsets and network services, CDMA, GSM, 3G(WCDMA / cdma2000) Digital Appliance Company Air Conditioner, Refrigerator, Microwave Oven, Washing Machine, Vacuum Cleaner, Compressor for Air Conditioner, Compressor for Refrigerator Digital Display Company Digital TV, PDP, Monitor Digital Media Company CD-ROM Drives, DVD-ROM Drives, CD Rewritable Recorder, VCR, DVD Player, Audio, Security System, Recording Media, Video Phone, PC Camera, Banking Automatic System, PCB Number of Employees 66,614(31,614 in Korea/ 35,000 overseas) : October 1, 1958 (As a private Company)

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In India LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs500 Crores. The LG manufactures Color Televisions (CTVs), Washing Machines, AirConditioners (ACs), Microwave Ovens, Refrigerators PCs and Monitors. In the short span of eight years, LG has achieved the position of a premium brand in the Indian market and is today the most preferred brand in the consumer durable and home appliance segments. In 2004, the company's turnover touched Rs65bn, the highest among any company in this segment in the country. The company has set a target of achieving a turnover of Rs90bn in 2005. LG wants its Indian unit to generate US$10bn in annual revenue by 2010. Around 30% of these revenue will come from exports. During the year 2001, LG also commenced the home production for its Ecofriendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 will see 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

Financial Performance:

Turnover for1997 Turnover for 1998 Turnover for 1999 Turnover for 2000 Turnover for 2001 Turnover for 2002 Turnover for 2003 Turnover for 2004

RS.125 Crores RS.485 Crores Rs.1056 Crores Rs.1903 Crores Rs. 2216 Crores Rs.3000 Crores Rs.4500 Crores Rs.6500 Crores

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New Manufacturing Plant: Encouraged by this stupendous growth, LG Electronics India started building another manufacturing facility at Ranjangaon, some 50 km away from Pune in Maharashtra at an initial investment of Rs1.5bn (US$32mn). Spread over an area of 50 acres, the sprawling new facility is designed to manufacture CTVs, Refrigerators, ACs, Washing Machines, Microwave Ovens and Color Monitors. The plant commenced commercial production in June 2004, three months ahead of schedule. At present, it manufactures CTVs and Refrigerators besides assembling of a couple of GSM mobile handsets. The Ranjangaon facility is in line with LG's vision of making India the global export hub. The new plant, in addition to the Noida factory, will enable LG to expand its consumer reach and ensure better supply chain management that would translate into a faster response time. The company aims to pump in Rs5bn in the plant over the next five years. At present, it has manpower strength of 2,000 people, and can go up to 5,000 by the year 2010. The new plant will contribute 10% of LG's total projected revenue of Rs90bn in 2005. It aims to double this every year and plans to increase it to 30% by the end of 2007. Production Capacity: CTVs - 5 lakh units perannum ACs - 1 lakh units per annum Refrigerators - 5 lakh units per annum Washing Machines - 2 lakh units per annum Microwave Ovens -0.5 lakh units per annum Mobile phone handsets - 10 lakh units per annum Monitors -1 lakh unit.

Vision 2011 LG Electronics India aims to become Rs450bn Company in India. Out of this, Consumer Electronics will account for Rs112.5bn; Home Appliances Rs12.5bn; IT Rs67.5bn and Mobile Phones Rs157.5bn. Exports will constitute 30% of total revenue at Rs140bn.

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MAJOR KEY SUCCESS FACTORS

1. Innovative marketing - LG was the first brand to enter cricket in a big way, by Sponsoring the 1999 World Cup and followed it up in 2003 as well. 2. Local and efficient manufacturing to reduce cost - To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. 3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. 4. Product localization - Product localization is a key strategy used by LG. It came out With Hindi and regional language menus on its TV. 5. Regional distribution model - This has resulted in quicker rotation of stocks and better penetration into the B, C and D class markets. 6. Leveraging Indias IT advantage - LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG. Strategies adopted by the organization

LG follows 10 commandments which are as follows. 1. Foster working environment-5S Environment 2. Fast execution is key to success 3. Transparent and fast communication-open communication 4. Update market -knowledge Demographics 5. Win Win Customer is the king6. Customer is the king 6. Even Billing Road to ach supplier A 7. Be in touch with the market (70% Market, 30% Office). 8. Plan and Execute annual marketing Calendar-Time to market 9. Display share of 50% -to get 50% consumer share. Relationship with the trade partners

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LGs going places in Indian market And, luck has nothing to do with the way the Korean giant is striking gold, says RAHUL NEEL MAN

LG is the only company to successfully introduce and run a regional distribution model in India, claims Manikandan It hasnt been very long since this Korean electronics and home appliance giant came to India to sell color TVs and other white goods. No sooner did the company enter India than it found this to be a large market for its IT products as well. LGs experiments may have resulted in someinitial snarls, but the company is now successful in terms of both market penetration and presence. Year-on-year LG is registering tremendous growth in its PC components business. How has this been possible? Not that the company didnt face any competition when it came here, but LG has fought well to get where it has today. LG has grown by about 73 percent in monitors this year, compared to 2001-02. The company has also recorded nearly 30 percent growth in the optical storage devices (OSD) segment in 2002-03 as compared to the last fiscal. The high growth for the company in the latter segment came from the CD-Writer sub-segment. If we take this sub-segment in isolation, we see that it grew by about 200 percent this year as compared to the corresponding period last year. Sales revenues went up by 44 percent, and the company achieved 43 percent growth in volume terms. The total sales turnover for the IT division touched Rs 199 crore, against 138 crore a year ago. The company as a whole posted a 45 percent jump in sales revenue for the same period. In the IT division OSD posted a growth of 30 percent in sales revenues, while the monitor division registered a growth of 60 percent in revenue and 73 percent in volumes.

WHATS NEXT? The company is believed to be toying with the idea of introducing two new products for the Indian marketthe LG laptop and LG home-based PC server for the small office, home office environment. But when Manikandan asked evasive: "Its too early to give any information," is all hell say.

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MARKETING MIX Marketing mix is the set of marketing tools that the firm uses to pursue its Marketing objectives in the target market. McCarthy classified these tools into four broad groups called 4Ps of marketing: Product, Price, Place, & Promotion. These marketing variables are shown in the following figure:

Marketing Mix Product Promotion Price Place

The First PPRODUCT Product is a key element in the market offering. Marketing mix planning being with formulating to meet target customers need & wants. The customer will judge the offering by three basic elements- features & quality, services mix & quality & price appropriateness. Products Name:

1. Air conditioners

Split AC It has Jet Cool, 3 Eva, 4 Way Swing, Dreamz Mode, Gold Fin Condenser LG L- Arctic offers Jet Cool with which you can experience high speed cooling. The 4 way swing ensures uniform cooling which gives you maximum comfort. The sweet Dreamz mode switches off the light off the display panel to give you a peaceful sleep. It gives you maximum comfort and convenience and designed for absolute perfection

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Window A/C Gold Fin Condenser, VFO Deodorizer, Anti Bacteria Filter, Jet Cool Smart outside, expert inside is the core objective of formulating this LG Air Conditioner. Equipped with jet cool, it cools the room instantly. And sporting therepute of being star rated, reduced electricity bills can be taken for granted. The anti bacterial filter ensures every ounce of air you breathe is clean for sure.

L.C.D MONITOR This LG 43 Series monitor is a perfect combination of superior technology and convenient features that provide a clearer, crisper and more color accurate image in an economical solution.

L.G PLASMA TV Lg plasma TV 42pq30r with 20,00,000:1 dynamic contrast ration,1500 cd/m2 brightness and 1365 x 768p resolution. No action sequence is too fast for the new lg pq30 lcdtv. It comes with a superior 600 Hz sub-field driving technology that brings you 12 sub-fields per frame rather than the conventional 8. Moreover it's superior 0. 001 millisecond refresh rate between frames delivers ultra smooth image transition with zero motion blur.

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REFRIGERATOR This LG side-by-side refrigerator features tasteful exterior Red Floral art finish with Home Bar and Water and Ice Dispenser, these refrigerators are masterpieces made for you to indulge in and designed to fit seamlessly into your home with eight digital sensors and the wine rack. This LG Frost Free refrigerator features door cooling technology with internal (Micom), Humidity Controller, Cell Fresh crisper & Anti Bacterial Gasket helps in keeping the freshness of food intact. THE SECOND P- PRICE Sales are only income fore any business concern. But price is the main factor, which affects the sale of the market. If the price is high, few buyers purchase and if the price is low many buyers purchase. Therefore a sound pricing policy must be adopted to have maximum sale revenue. Moreover, it is only through proper pricing policy the already laid down marketing objective and corporate goals could be achieved. money of the product or service agreed upon in a market transaction. So, Price in money = physical product + bundle of expectations THE THIRD P PROMOTION Promotion is the process of making communication involving information, persuasion and influence. Promotion has three specific purposes. It communicates marketing information to the customers, users & retailers. Promotion persuades and convinces the buyer & enters into this consumer behavior. Promotional efforts act as powerful tools of competition providing of cutting edge of its entire marketing programmed. Promotion has been defined as the coordinated self initiated effort to establish channel of information & persuasion to facilitate or faster the saleof goods or services, or the acceptance of ideas of points of view. It is a non-price competition. Nothing until somebody promotes something Promotion can create & stimulate demand, capture demand from rivals and maintain the demand of your products even against keen competition. It is true that nothing can be sold & nothing can make money (except mint) Without means of promotion. The communication & promotion mix includes four ingredients viz.

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 THE FORTH P PLACE Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the perception of customers. Distribution Channels of LG Electronics India Pvt. Ltd. Scope 1.In term of purchasing power parity (ppp), India is the 4th largest economy in theworld 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 Higher import duties on row materials. Cheap imports from Singapore, China and from other Asian countries.

26

SAMSUNG
COMPANY PROFILE RESEARCH & DEVELOPMENT AT SAMSUNG HOME APPLIANCES SECTOR IN INDIA SWOT ANALYSIS OF SAMSUNG FUTURE PLANS 4 Ps

27

 Company Profile
1. Vision & Mission 1) Vision The vision of Samsung Electronics is Leading the Digital Convergence Revolution. Samsung Electronics aims to be a true leader in the era of digital convergence. We are developing innovative technologies and efficient processes to enrich peoples lives and build Samsung Electronics into a trusted and respected company.

2) Mission Our mission to carry out the vision is Digital-Company. Digital: Market leading products, innovative services Create new businesses, products and services by shaping new lifestyles through product and technology innovations World-class production and management processes Maximize management efficiency based on cost competitiveness and efficient processes resulting from process and marketing innovations Company: Preferred and trusted company Build a preferred and trusted company that has a dynamic culture and attracts customers worldwide through global management and organizational innovation

2. Profile 1) Overview Samsung Electronics has continued to demonstrate rapid growth since its founding in 1969. As of the end of 2006, global operations included 27 production subsidiaries, 40 sales subsidiaries, two distribution centers, and 15 R&D centers. In Korea, the Company operates eight plants. The Suwon Complex produces digital products, while semiconductors are produced at Giheung, Hwaseong, and Onyang Plants. The Giheung, Cheonan, and Tangjeong Plants produce LCDs. Digital information systems are manufactured in the Gumi Complex. information systems are manufactured in the Gumi Complex. Samsung Electronics employs 149,000 people worldwide. Of the total, 85,800 work in domestic worksites, 10,900 in our domestic subsidiaries, and 52,300 in overseas subsidiaries.

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Company profile Company name: - Samsung electronics co., ltd. Headquarters address :- 416,Maetan 3 dong,eongtong-gu,suwon,gyeonggi-do,korea. CEO: - Jong Yong Yun Date established:- January 13,1969 Number of employees:-149,000 Domestic worksites:-Eight plants Overseas network: - 156 subsidiaries and branches 1) Digital Media Business The Digital Media Business has the largest share of the world digital TV market. The unit also produces color monitors, DVD and Bluray disc players, notebook PCs, printers and portable devices such as digital camcorders and MP3 players entertainment. 2 ) Telecommunication Network Business The Telecommunication Network Business includes mobile phones and telecommunication systems. A premium brand image and distinctive designs have elevated Samsung into one of the world market leaders. We have also led the standardization of Mobile WiMAX, next-generation mobile phone technologies and led the HSDPA market. 3) Digital Appliance Business The Digital Appliance Business makes premium refrigerators, air conditioners, washers, ovens, vacuum cleaners and other appliances that are indispensible for modern homes. Standout designs and innovative technologies are leveraged to create new kinds of added value and offer products that meet customer needs to make Samsung a market leader 2. Performance by Business Samsung Electronics produces a wide range of products which are categorized into five businesses: Digital Media, Telecommunication Network, Digital Appliance, Semiconductor, and LCD. The Company has built a well balanced business portfolio which has made earnings less vulnerable to cyclical fluctuations in the IT sector

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1)Digital Media Business The Digital Media Business has the largest share of the world digital TV market. The unit also produces color monitors, DVD and Bluray disc players, notebook PCs, printers and portable entertainment devices such as digital camcorders and MP3 players .2) Telecommunication Network Business The Telecommunication Network Business includes mobile phones and telecommunication systems. A premium brand image and distinctive designs have elevated Samsung into one of the world market leaders. We have also led the standardization of Mobile WiMAX, next-generation mobile phone technologies and led the HSDPA market. 3) Digital Appliance Business The Digital Appliance Business makes premium refrigerators, air conditioners, washers, ovens, vacuum cleaners and other appliances that are indispensible for modern homes. Standout designs and innovative technologies are leveraged to create new kinds of added value and offer products that meet customer needs to make kinds of added value and offer products that meet customer needs to make Samsung a market leader. 4) Brand Value Samsung Electronics has engaged in diverse marketing activities to elevate brand value. A brand value survey jointly conducted by Business Week and Inter brand in 2006 ranked Samsung Electronics in 20th place among all corporations in the world and 7th in the IT sector. According to the survey, the Samsung Electronics brand value continued to increase, rising to US$16.2 billion in 2006 from US$15.0 in 2005 and US$12.6 billion in 2004 Research & Development at Samsung Innovation is crucial to Samsung's business. As new technologies are being constantly introduced to the market, speed is essential for remain-ing competitive in today's digital era, and new markets have to be pioneered continuously. Through the interplay of creative, imaginative people; a global R&D network; an organization that encourages collaboration and cooperation among business partners all along the supply chain; and a strong commitment to ongoing investment, Samsung has put R&D at the heart of everything we do.

People

One of Samsung's strongest assets is our team of talented researchers and engineers. More than a quarter of all Samsung employees 42,000 people work every day in research and development, and we expect that number to surpass 50,000 by 2010. At and among our 42 research facilities around the world, they collaborate on strategic technologies for the future and original technologies designed to forge new market trends and set new standards for excellence.
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Organization

Samsung's R&D organization has three layers. The Samsung Advanced Institute of Technology (SAIT), Samsung's technology competitiveness in core business areas, identifies growth engines for the future, and oversees the securing and management of technology. The R&D centers of each business focus on technology that is expected to deliver the most promising long-term results. Division product development teams are responsible for commercializing products scheduled to hit the market within one or two years. Investment

A critical way that Samsung responds to the highly uncertain business environment and the increasingly competitive marketplace is through our commitment to R&D. Each year we invest at least 9% of our sales revenue in R&D activities. Samsung is committed to leading technology standardization and securing intellectual property rights. Global R&D Network

Innovation is a global enterprise at Samsung. Our research and development network spans six Samsung centers in Korea and 18 more in nine other countries, including the United States, the United Kingdom, Russia, Israel, India, Japan and China, as well as other research centres and universities. Closely linked, these centers are tasked with hiring top-notch local talent, investigating the latest local technology trends, and bringing to life those technologies that offer the greatest benefits. Samsung home appliance sector in India

Samsung India is the hub for Samsung's South West Asia Regional operations. The South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the country. The Samsung manufacturing complex housing manufacturing facilities for Colour Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung 'Made in India' products like Colour Televisions, Mobile phones and Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida manufacturing complex. In November 2007, Samsung commenced the manufacture of Colour televisions and LCD televisions at its stateof-the-art manufacturing facility at Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic front loading washing machines at its Sriperumbudur facility.

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 Swot analysis of Samsung

Vision Leading the digital convergence revolution growing to be the best. Mission Digital-e Company SWOT analysis is the tool which helps the organization to understand where it stands. The SWOT analysis of Samsung make it understand that where Samsung stand in the market. STRENGTHS Samsung is technologically very advanced; it has heavy assets of technology. It is known for its technologically advanced products. Samsung crushed new product concepts in five months. It is strong corporate brand and known for its quality products and advanced technology use. It attracts customers by offering new and innovative design through understanding the customers that which type of designs are suitable to customers and what they want or asked about. It heavily invest in technology, product design and human resource, because for the success of every organization human resource plays a major role, without human resource no product can be made thats why Samsung gives more important to the human resource. Samsung focuses more towards the innovations and try to keep improving the products to attract more customers and capture more market share. WEAKNESSES Although Samsung focuses innovation but it is not proactive to introducing new products, it waits to attack the competitors. It also lacks in product differentiation. Samsung caters mass market instead of niche market so for this purpose it sets low prices of products and low price products seem as low quality products, so Samsung products perceive as low quality as compared to competitors products.

OPPORTUNITIES Through make itself distinctive from competitors, it can gain more market share. By providing distinguish services it can increase its customer base. Another opportunity is product variation, by introducing unique products and existing products with variety; it can attract its target market and can get more market share.

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As the demand for the cell phone is increasing as compared to other electronic market, Samsung has the great chance to introduce user friendly mobile phones at affordable price. It would help to beat customers and also to lead market share. THREATS Samsung competitors in electronic market are more dominant e.g. Sony, Panasonic, LG etc in home appliances and Nokia, rim, 3G, etc in mobile phones market so it has to struggle a lot to be the market leader. Telecommunication industry is growing day by day so the no. competitors also increasing so it is difficult for Samsung to establish in that industry, it is more behind in this industry as compared to other electronic items. Samsung advertisement is not excessive while the competitors advertise their products excessively which can take away the existing customers of Samsung. Future plans

Samsung plans to create an apparitional digital lifestyle for the average Indian consumer with the introduction of innovative digital products that represent the absolute high end of technology and design. The company also plans to revolutionist retail in the country by launching a massive retail rollout of its exclusive outlets - Digital World, Digital Homes and Digital Plaza. The company believes that with an increasing footprint of Samsung Digital Worlds and Samsung Digital Homes, Indian consumers today can experience the finest in technology in a world class environment. The company also plans to set up 600 technology retail counters to bring technology closer to the consumers, allowing them to touch, feel and experience the same Samsung is also investing in setting up the Samsung Marketing Academy to train sales personnel to engage in lifestyle selling. The emphasis is clearly on providing customers a richer and more informed buying.

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Four Ps:-

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RESEARCH METHODOLOGY

INTRODUCTION
This project examines the emergence of innovation and value creation for enhancing customers' experience, as a result of increasing competition in the Indian Home appliances industry. The project provides a detailed account of the evolution of the Indian Home appliances industry and current trends in the locality of Gandhinagar. It traces various developments in the industry before, during and after the liberalization of the Indian Home appliances sector. It also provides information about the increasing popularity of Home appliances which led to the emergence of several private Home appliances Companies like LG, SAMSUNG Home appliances Ltd, etc. The fast track growth of the Indian Home appliances industry has made it a key contributor to Indias progress. India adopted a phased approach for reforming the Home appliances sector right from the beginning. The Indian Home appliances industry is growing at the fastest pace in the world.

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 OBJECTIVES:
Finding out the popularity of different companys products. Understanding the buying behavior. Satisfaction of customers

Why has this topic been selected:

Because electronics product are used for daily usage. People are loyal in used of electronics products Electronic product makes the work easier and faster.

METHODOLOGY

1. Target population and sample size to be covered:Gandhinagar Households. Sample size: 100

2. Method of data collection: Simple random (Questionnaire)

3. Sources of the data: Primary data : By Questionnaire Secondary data: Net or companys sites.

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QUESTIONNAIRE ANALYSIS
1 TO 13 QEUESTIONS...
CHATS SORCE INTERPRITETION

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QUESTIONNAIRE ANALYSIS Gender:

Gender Cumulative Frequency Valid Male Female Total 87 13 100 Percent 87.0 13.0 100.0 Valid Percent 87.0 13.0 100.0 Percent 87.0 100.0

It graphs shows that there are more male respondent than female respondent.

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 Age:
Age
Cumulative Frequency Valid 10-20 21-30 30 and more Total 8 58 34 100 Percent 8.0 58.0 34.0 100.0 Valid Percent 8.0 58.0 34.0 100.0 Percent 8.0 66.0 100.0

There is more respondents age between 21 to 30 year.

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 Profession:
Profession Cumulative Frequency Valid service student privet others Total 38 34 12 16 100 Percent 38.0 34.0 12.0 16.0 100.0 Valid Percent 38.0 34.0 12.0 16.0 100.0 Percent 38.0 72.0 84.0 100.0

This chart shows that, respondents are more in no. of service men and students than private business holder and other.

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 No. Of family member:

No_of_family_members Cumulative Frequency Valid 1-5 6-10 11 and more Total 82 16 2 100 Percent 82.0 16.0 2.0 100.0 Valid Percent 82.0 16.0 2.0 100.0 Percent 82.0 98.0 100.0

This chart shows that, most of the family members are 1 to 5.

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 Income:
Income Cumulative Frequency Valid below 5000 10000-20000 21000 nd above Total 25 25 50 100 Percent 25.0 25.0 50.0 100.0 Valid Percent 25.0 25.0 50.0 100.0 Percent 25.0 50.0 100.0

This chart shows that, there more respondents income is above 20000. Below 10000 and 10000 to 20000 income group respondents are similar.

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Q.1
Statistics

Which product do you use from the following list?_tv N Valid Missing 100 0 Freeze 100 0

Which company do you prefer for TV from the following list? Cumulative Frequency Valid lg-tv samsung-tv other-tv Total 39 32 29 100 Percent 39.0 32.0 29.0 100.0 Valid Percent 39.0 32.0 29.0 100.0 Percent 39.0 71.0 100.0

As per our survey in market, we found that more people prefer the TV of LG company TV than other company.

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Frequency
lg-freeze samsungfreeze otherfreeze Total 31 41 25 100

Percent
31 41 25 100

Valid Percent
31 41 25 100

Cumulative Percent
31 74 100

Frequency

lg-freeze samsung-freeze other-freeze

As per our survey in market, we found that more people prefer the FREEZE of Samsung Company FREEZE than other company.

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Q.2 Which company's advertisements pass the correct message more effectively?
Cumulative Frequency Valid lg samsung others Total 40 49 11 100 Percent 40.0 49.0 11.0 100.0 Valid Percent 40.0 49.0 11.0 100.0 Percent 40.0 89.0 100.0

As per our survey, we found that according to respondents, Samsung Company passes the correct message more effectively than LG and other company.

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 Q.3
According to ypu which company provide atractive advertisement but not quality products?
Cumulative Frequency Valid lg samsung others Total 24 42 34 100 Percent 24.0 42.0 34.0 100.0 Valid Percent 24.0 42.0 34.0 100.0 Percent 24.0 66.0 100.0

According to respondents, Samsung company provide the attractive massage but not quality product than LG company and other.

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 Q.4
How do you decide to purchase the product?
Frequency Valid tv adv. Newspaper friends & relatives internet data family discussion seller help Total 19 23 23 12 20 3 100 Percent 19.0 23.0 23.0 12.0 20.0 3.0 100.0 Valid Percent 19.0 23.0 23.0 12.0 20.0 3.0 100.0 Cumulative Percent 19.0 42.0 65.0 77.0 97.0 100.0

According to respondents, they decide purchase the products with reference of newspaper advertisement, friends and relatives views and family discussion. There are less people who purchase the product with reference of internet data and sellers help.

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 Q.5
Does company's adver. attract you to buy products?
Cumulative Frequency Valid tv freeze Total 63 37 100 Percent 63.0 37.0 100.0 Valid Percent 63.0 37.0 100.0 Percent 63.0 100.0

Mostly TV advertisements attract the customer to buy the products than FREEZE advertisements.

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 Q.6
According to you which company provide best quality at moderate price?
Cumulative Frequency Valid lg samsung others Total 39 44 17 100 Percent 39.0 44.0 17.0 100.0 Valid Percent 39.0 44.0 17.0 100.0 Percent 39.0 83.0 100.0

According to respondents Samsung provide best quality at moderate price than LG and others.

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 Q.7
From which source do you purchase?

Frequency Valid company showroom Elec.showroom Mall Road show Other Total 37 27 25 9 2 100

Percent 37.0 27.0 25.0 9.0 2.0 100.0

Valid Percent 37.0 27.0 25.0 9.0 2.0 100.0

Cumulative Percent 37.0 64.0 89.0 98.0 100.0

According to our respondents, mostly people prefer to purchase the products from company showroom. After that they give preference to electric showroom and malls. They give less preference to road shows and others.
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Q.8_LG

sheare views on the following elements of the company.For LG;quality of product 100 responce to consumer need 100 commitment to protecting environment 100 product/service are reasonably priced 100 Truthfulness of adverticement 100 Emotional connection/appeal 100 overall perception of the company 100

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sheare views on the following elements of the company.For LG;quality of product

Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 8 17 45 22 8 100 6 106

Percent 7.5 16.0 42.5 20.8 7.5 94.3 5.7 100.0

Valid Percent 8.0 17.0 45.0 22.0 8.0 100.0

Cumulative Percent 8.0 25.0 70.0 92.0 100.0

As per our survey, according to respondents LGs quality of product and services are average

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responce to consumer need Cumulative Frequency Valid poor below average average above aveg excellent 53.00 Total Missing Total System 8 23 31 31 6 1 100 6 106 Percent 7.5 21.7 29.2 29.2 5.7 .9 94.3 5.7 100.0 Valid Percent 8.0 23.0 31.0 31.0 6.0 1.0 100.0 Percent 8.0 31.0 62.0 93.0 99.0 100.0

According more respondents, LG give response to consumer need is average.

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commitment to protecting environment Cumulative Frequency Valid Poor below average average above aveg excellent Total Missing Total System 6 19 35 29 11 100 6 106 Percent 5.7 17.9 33.0 27.4 10.4 94.3 5.7 100.0 Valid Percent 6.0 19.0 35.0 29.0 11.0 100.0 Percent 6.0 25.0 60.0 89.0 100.0

According more respondents, LGs commitment to protecting environment is average.

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product/service are reasonably priced Cumulative Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 3 24 39 22 12 100 6 106 Percent 2.8 22.6 36.8 20.8 11.3 94.3 5.7 100.0 Valid Percent 3.0 24.0 39.0 22.0 12.0 100.0 Percent 3.0 27.0 66.0 88.0 100.0

According more respondents, LGs products and services reasonably price are average

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Truthfulness of advertisement Cumulative Frequency Valid poor below average average above aveg excellent Total Missing Total System 6 23 35 28 8 100 6 106 Percent 5.7 21.7 33.0 26.4 7.5 94.3 5.7 100.0 Valid Percent 6.0 23.0 35.0 28.0 8.0 100.0 Percent 6.0 29.0 64.0 92.0 100.0

According more respondents, LGs truthfulness of advertisement is average

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Emotional connection/appeal Cumulative Frequency Valid poor below average average above aveg excellent Total Missing Total System 7 20 38 23 12 100 6 106 Percent 6.6 18.9 35.8 21.7 11.3 94.3 5.7 100.0 Valid Percent 7.0 20.0 38.0 23.0 12.0 100.0 Percent 7.0 27.0 65.0 88.0 100.0

According more respondents, peoples emotional connection with LG is average

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overall perception of the company Cumulative Frequency Valid Poor below average Average above aveg Excellent Total Missing Total System 3 16 41 25 15 100 6 106 Percent 2.8 15.1 38.7 23.6 14.2 94.3 5.7 100.0 Valid Percent 3.0 16.0 41.0 25.0 15.0 100.0 Percent 3.0 19.0 60.0 85.0 100.0

According more respondents, peoples overall perception towards the LG is average.

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Q.8_ samsung

Statistics

sheare views on the following elements of the company.For Samsung;quality of product N Valid Missing 100 0 responce to consumer need 100 0 commitment to protecting environment 100 0 product/service are reasonably priced 100 0 Truthfulness of adverticement 100 0 Emotional overall perception of the

connection/appeal company 100 0 100 0

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sheare views on the following elements of the company.For Samsung;quality of product Cumulative Frequency Valid poor below average average above aveg excellent Total 7 26 35 28 4 100 Percent 7.0 26.0 35.0 28.0 4.0 100.0 Valid Percent 7.0 26.0 35.0 28.0 4.0 100.0 Percent 7.0 33.0 68.0 96.0 100.0

According more respondents, SAMSUNG provide average quality of product and services.

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responce to consumer need Cumulative Frequency Valid Poor below average Average above aveg Excellent Total 13 20 28 29 10 100 Percent 13.0 20.0 28.0 29.0 10.0 100.0 Valid Percent 13.0 20.0 28.0 29.0 10.0 100.0 Percent 13.0 33.0 61.0 90.0 100.0

According more respondents, SAMSUNG give response to consumer need is average.

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commitment to protecting environment Cumulative Frequency Valid poor below average average above aveg excellent Total 3 19 38 33 7 100 Percent 3.0 19.0 38.0 33.0 7.0 100.0 Valid Percent 3.0 19.0 38.0 33.0 7.0 100.0 Percent 3.0 22.0 60.0 93.0 100.0

According more respondents, SAMSUNGs commitment to protecting environment is above average.

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product/service are reasonably priced Cumulative Frequency Valid poor below average average above aveg excellent 13.00 Total 4 23 31 28 13 1 100 Percent 4.0 23.0 31.0 28.0 13.0 1.0 100.0 Valid Percent 4.0 23.0 31.0 28.0 13.0 1.0 100.0 Percent 4.0 27.0 58.0 86.0 99.0 100.0

According more respondents, SAMSUNGs product and services prices are average.

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Truthfulness of adverticement Cumulative Frequency Valid Poor below average Average above aveg Excellent Total 9 28 26 23 14 100 Percent 9.0 28.0 26.0 23.0 14.0 100.0 Valid Percent 9.0 28.0 26.0 23.0 14.0 100.0 Percent 9.0 37.0 63.0 86.0 100.0

According more respondents, SAMSUNGs truthfulness of advertisement is below average

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Emotional connection/appeal Cumulative Frequency Valid poor below average average above aveg excellent Total 4 24 31 33 8 100 Percent 4.0 24.0 31.0 33.0 8.0 100.0 Valid Percent 4.0 24.0 31.0 33.0 8.0 100.0 Percent 4.0 28.0 59.0 92.0 100.0

According more respondents, peoples emotional connection with SAMSUNG is above average.

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overall perception of the company Cumulative Frequency Valid poor below average average above aveg excellent Total 6 19 27 32 16 100 Percent 6.0 19.0 27.0 32.0 16.0 100.0 Valid Percent 6.0 19.0 27.0 32.0 16.0 100.0 Percent 6.0 25.0 52.0 84.0 100.0

According more respondents, peoples overall perception towards the SAMSUNG is average.

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 Q.9
Do you wait for special festival offers?
Cumulative Frequency Valid Yes No 77 23 Percent 77.0 23.0 Valid Percent 77.0 23.0 Percent 77.0 100.0

Total

100

100.0

100.0

As per our survey, more people are wait for the special offer in festival for purchase products.

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 Q.10
which is the after sales service provided by the company /dealer?

Frequency Valid after sales service free service maintenance free home delivery free instillation & replacement Future purchase discount Total 24 20 31 16 9 100

Percent 24.0 20.0 31.0 16.0 9.0 100.0

Valid Percent 24.0 20.0 31.0 16.0 9.0 100.0

Cumulative Percent 24.0 44.0 75.0 91.0 100.0

As per our survey, company provides more extra facility of free home delivery, and also they provide after sales service and free service maintenance. Company less provide facility of future purchase discount.

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 Q.11 TV.
How will you dispose old TV?
Cumulative Frequency Valid tv-exchange with the same company tv-exchange with the same other company tv-scrap Total Missing Total System 15 99 1 100 15.0 99.0 1.0 100.0 15.2 100.0 100.0 33 33.0 33.3 84.8 51 Percent 51.0 Valid Percent 51.5 Percent 51.5

As per our survey, more than 50 % people like to dispose old TV exchange TV with same company.

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Freeze:
How will you dispose old freeze?
Cumulative Frequency Valid freeze-exchange with the same company freeze-exchange with the same other company freeze-scrap Total Missing Total System 19 99 1 100 19.0 99.0 1.0 100.0 19.2 100.0 100.0 51 51.0 51.5 80.8 29 Percent 29.0 Valid Percent 29.3 Percent 29.3

As per our survey, more than 50 % people like to dispose old TV exchange TV with other company.

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 Q.12 LG
Will you exchange recently bought LG TV for new scheme offered by the company?
Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 19 16 6 15 56 44 100 Percent 19.0 16.0 6.0 15.0 56.0 44.0 100.0 Valid Percent 33.9 28.6 10.7 26.8 100.0 Percent 33.9 62.5 73.2 100.0

Frequency

after 2 yr after 4 yr after 5 yr more than 5 yrs

According to respondents, more people like to exchange their LG Companys TV after 2 year.

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LG_freeze Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 5 15 13 6 39 61 100 Percent 5.0 15.0 13.0 6.0 39.0 61.0 100.0 Valid Percent 12.8 38.5 33.3 15.4 100.0 Percent 12.8 51.3 84.6 100.0

Frequency

after 2 yr after 4 yr after 5 yr more than 5 yrs

According to respondents, more people like to exchange their LG Companys FREEZE after 4 year.

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SAMSUNG:
Samsung_TV Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 6 12 16 11 45 55 100 Percent 6.0 12.0 16.0 11.0 45.0 55.0 100.0 Valid Percent 13.3 26.7 35.6 24.4 100.0 Percent 13.3 40.0 75.6 100.0

Frequency

after 2 yr after 4 yr after 5 yr more than 5 yrs

According to respondents, more people like to exchange their SAMSUNG Companys TV after 4 year.

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Samsung_freeze Cumulative Frequency Valid after 2 yr after 4 yr after 5 yr more than 5 yrs Total Missing Total System 6 11 16 20 53 47 100 Percent 6.0 11.0 16.0 20.0 53.0 47.0 100.0 Valid Percent 11.3 20.8 30.2 37.7 100.0 Percent 11.3 32.1 62.3 100.0

Frequency

after 2 yr after 4 yr after 5 yr more than 5 yrs

According to respondents, more people like to exchange their SAMSUNG Companys FREEZE after 5 year.

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 Q.13 As per your view which product is best of LG company?

Frequency lg-tv lg-freeze Total 55 45 100 Percent 55 45 100

Frequency
60 50 40 30 20 10 0 lg-tv lg-freeze Frequency

According to respondents TV is best product of LG Company than freeze.

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SAMSUNG:
Frequency samsungtv samsungfreeze Total 46 52 100 Percent 46 52 100

Frequency
53 52 51 50 49 48 47 46 45 44 43 samsung-tv samsung-freeze

Frequency

According to respondents FREEZE is best product of SAMSUNG Company than TV.

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HYPOTHESIS

Chi-square method.

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HYPOTHESIS Chi-square table of income and customer preference of moderate price and satisfaction [question-6]

income * According to you which company provide best quality at modrete price? Crosstabulation Count According to you which company provide best quality at modrete price? Lg Income below 5000 10000-20000 21000 nd above Total 7 11 21 39 samsung 12 8 24 44 others 6 6 5 17 Total 25 25 50 100

Case Processing Summary Cases Valid N income * According to you which company provide best quality at modrete price? 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.025a 5.267 2.540 100 df 4 4 1 sided) .285 .261 .111

a. 2 cells (22.2%) have expected count less than 5. The minimum expected count is 4.25.

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 Chi square table for customers view which company provide best product for LG and SAMSUNG
Case Processing Summary Cases Valid N As per your view which company's and product is best?_lg * samsung 92 Percent 92.0% N 8 Missing Percent 8.0% N 100 Total Percent 100.0%

As per your view which company's and product is best?_lg * samsung Crosstabulation Count Samsung samsung-tv As per your view which company's and product is best?_lg 3.00 4.00 Total 0 0 43 1 1 47 0 0 2 1 1 92 lg-tv lg-freeze 14 29 samsung-freeze 36 9 3.00 0 2 Total 50 40

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 24.586a 27.080 5.300 92 df 6 6 1 sided) .000 .000 .021

a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is .02.

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 Chi square table for customers from which source they came to know about product and from which source they purchase.
Case Processing Summary Cases Valid N How do you decide to purchase the product? * From which source do you purchase? 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

How do you decide to purchase the product? * From which source do you purchase? Crosstabulation Count From which source do you purchase? company showroom How do you decide to purchase the product? tv adv. newspaper friends & relatives internet data family discussion seller help Total
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33.058a 36.657 .480 100 df 20 20 1 sided) .033 .013 .489

Elec.showr oom 9 4 7 8 4 0 6 2 27

mall 2 8 7 1 7 0 25

Road show 1 3 1 4 0 0 9

other 0 0 0 1 1 0 2

Total 19 23 23 12 20 3 100

11 6 6 1 37

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Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33.058a 36.657 .480 100 df 20 20 1 sided) .033 .013 .489

a. 19 cells (63.3%) have expected count less than 5. The minimum expected count is .06.

Chi square table shows the relation between peoples income and their preference for special festival offer
Case Processing Summary Cases Valid N income * Do you wait for special festival offers? 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

income * Do you wait for special festival offers? Crosstabulation Count Do you wait for special festival offers? yes income below 5000 10000-20000 21000 nd above Total 21 23 33 77 no 4 2 16 22 3.00 0 0 1 1 Total 25 25 50 100

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.584a 8.450 4.553 100 df 4 4 1 sided) .108 .076 .033

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Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.584a 8.450 4.553 100 df 4 4 1 sided) .108 .076 .033

a. 3 cells (33.3%) have expected count less than 5. The minimum expected count is .25.

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 Bibliography Annexure

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Bibliography

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Annexure

Questionnaire
Dear Respondent, As a part of are project research on Home appliance comparative study on select home appliance LG and Samsung under the guidance of Professor Amish Soni, N.R.Institute of Business Management - GLS Ahmedabad, we request you to spare a few minutes and share your views on the Home appliance comparative study of the company whose product/services you are consuming. We assure you that the information disclosed will be used only for academic purpose.
Name: Age: Education: _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ Female 10,000-20,000 Above 20,000

No. Of members: Profession: Gender: Male

Income: Below 5000 1)

Which Product do you use from the following list? Company

TV LG Samsung Others

Product
Refrigerator

2) Which Companys Advertisement Pass the correct Message more effectively?

LG

Samsung

Others

3) According to you which company provide attractive Advertisement but not quality products?

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LG Samsung Others

4) How do you decide to purchase the product? TV Advertisement Newspaper Advertisement Friends & Relatives Internet Data Family Discussion Seller Help

5) Does companys Advertisement attract you to buy the Products? Product Please Tick Mark TV Refrigerator

6) According to you which company provide best quality at moderate price? LG Samsung Others

7) From which source do you purchase?

Company Showroom Electric Showroom Mall Road Show Others

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8) Share your views on the following elements of the company. Please put a tick mark () against each of these elements.

LG :Extremely Poor Quality of products/service Response to consumer needs Commitment to protecting environment Products/Services are reasonably priced Truthfulness of advertisement Emotional connection/appeal Overall perception of the company Below Average Average Above Average Excellent

Samsung:Extremely Poor Quality of products/service Response to consumer needs Commitment to protecting environment Products/Services are reasonably priced Truthfulness of advertisement Emotional connection/appeal Overall perception of the company Below Average Average Above Average Excellent

9) Do you wait for special festival offers? Yes No

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10) Which is the after sales service provided by the company/company dealer? After sales service Free service maintenance Free home delivery Free instillation & replacement Future purchase discount 11) How will you dispose old product? Product Exchange with the company same Exchange with the same other Scrap

TV Refrigerator

12) Will you exchange recently bought product for new scheme offered by the company? Company LG Product TV Freeze Samsung TV Freeze After 2 year After 4 year After 5 year More than 5 yrs

13) As per your view which companys and product is best?

LG Samsung ::TV TV Freeze Freeze

14) Give your suggestion itll help us.

Thank you for your time.

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