A Project Report On

MARKET ANALYSIS OF LG 21 INCHES T.V

Submitted By Mr. Vishal Devanand Panchal
In partial fulfillment of the requirements for the award of

MBA (Marketing)

Under The Guidance Of

Mr. Sourav Shukla

Submitted To J.M.S.S.G. Sansthas

Nandigram Institute Of Management Studies,Pangri, Nanded

March 2012

Swami Ramanand Teerth Marathwada University, Nanded

Certificate
This is to certify that Project Report on

MARKET ANALYSIS OF LG 21 INCHES T.V.

Was successfully carried out By

Mr. Vishal Devanand Panchal

In the partial fulfillment of MBA course being conducted by Nandigram Institute Of Management Studies,Nanded during the academic year 2011 2012

Mr.Sourav Shukla
Project Guide

Dr.Uday Kumthekar
DIRECTOR

Declaration
I hereby declare that the Project Report entitled Market Analysis of LG 21 inches TV in Nanded has been composed by me under the guidance of

Mr.sourav Shukla

and submitted to the of

Nandigram Institute

Of Management Studies,Nanded

SWAMI RAMANAND TEERTH

MARATHWADA UNIVERSITY, NANDED for the award of degree of Master

of Business Administration (MBA). I assure that this project has not been submitted by any degree anywhere in any college or University so far.

Date: Place: Nanded

Mr. Vishal Devanand Panchal MBA IV (Sem)

Acknowledgement
I wish to take opportunity to convey my profound gratitude to several key personalities involved in the success of my project and I am deeply indebted to all of them.

I would like to thank in particular

Mr. Sourav Shukla

who has

given her valuable time and taken the efforts to help me to prepare this project. I would like to thank for her numerous suggestions and discussions.

I am also thankful to my Director

Dr. uday Kumthekar

for his

constant support and kind co-operation. I would like to thank to all the staff members of MBA department for their suggestions and encouragement time to time. Finally I thank to my parents and my colleagues who have directly or indirectly helped me in the completion of this project work.

Mr.Vishal Devanand Panchal MBA IV Sem

Contents
Sr. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Particulars
Introduction Scope of project Objectives of project Limitations History of company Customer service Research methodology Data Analysis & interpretation Findings Conclusion Recommendations & suggestions Bibliography Questionnaire

Page No.

INTRODUCTION
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 the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. 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 has increased 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.

SCOPE OF PROJECT
This project gives great exposure to the consumer durable market because it includes product knowledge and field survey job of LG stores in Nanded. LG always insist the 50% display share of LG product because LG believes that JO DIKHTA HAI WO BIKTA HAI.

This project consist the survey of the following - Calculate the display share of the LG product in every shop. Collected the data of actual monthly sale of the LG products in few shops. Checked the availability of LG catalogue and the POPs in the store. Found out the problems that the dealer are facing while selling the LG products. Found out the customer response for LG products by asking the owner of the shop. Found out the distributor name from who they were purchasing their products. Checked whether demo calls are attended or not.

Objective
1. The main objective of filed survey during the project was to find out the customer satisfaction of the LG 21 inches TV. 2. To find out the positional dealer who can sale the LG product in large volume. 3. To find out the problem faced by dealer in the sales and in the distribution. 4. To find out that how far the exhibitions are helpful in branding. 5. While purchasing the consumer durables which parameter is most important for the consumer? 6. Do the consumers prefer the financial facility for buying consumer durable? 7. To enhances the knowledge of consumer durable market. 8. To enhances the knowledge about the marketing and branding activity.

LIMITATIONS
Every study has certain limitations. In this there were certain limitations, which could not able to solve. 1. The research was conducted in a very small area. 2. The research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer. 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. This project 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.

Introduction OF COMPANY
The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, Household Products were sold under the brand name of Lucky, while Electronic Products were sold under the brand name of 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.

1958-1969 : Gold Star the Electronics Industry Dream

1970-1979 : Gold Star symbol of The Technology

1980-1988 : Internationalization

1989-1994 : Inovation

1995-1998 : Globle Leaders LG Electronics

1999-2003 : Digital Management

2004-2006 : Great People Great Design

2007 : The People Company

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 :
LG Philips LCD LG Chemical LG Telecom LG Powerco LG Twins LG Dacom LG has the different business areas and main products. These are as follows --

1. Mobile Communications
CDMA Handsets GSM Handsets 3G Handsets Cellular Phones

2. Digital Appliance
Air Conditioners Refrigerators Microwave Ovens Washing Machines Vacuum Cleaners Home Net Compressors for Air Conditioners and Refrigerators

3. Digital Display
Plasma TVs LCD TVs Micro Display Panel TVs Monitors PDP Modules OLED Panels USB Memory Flat Panel Computer Monitors

4. Digital media
Home Theater Systems DVD Recorders Super Multi DVD Rewriters CDRW Notebook PCs Desktop PCs PDAs PDA Phones MP3 Players New Karaoke Systems

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 the LG's determination to provide delightfully smart products that will make your life good.
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 to deliver 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.

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 management and 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. 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. 3M YAHOO PHILLIPS TOYOTA MICROSOFT HP GOOGLE INTEL NORTEL HITACHI

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.

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 are as follows-a. Trust b. Innovation c. People d. Passion The benefits that are consistently delivered to the customer includes -i. Reliable products ii. Simple design iii. Ease of use iv. Extraordinary Experience

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 taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. 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. 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. LG 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. Y V Verma, director HR and management system, 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."

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 premium consumer electronics brand. 6. At the top, the Service Division in Korea reports to the Global CMO. 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. 8. The company has introduced a 211 service - once you register your complaint, they 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.

9. The company is promoting 211 through ATL, probably the first time after sales service is being communicated in this fashion by any product company. 10. The first LG-owned service centre opened in Gurgaon. (Service

in India generally works through authorized service centers, in LGs case they work exclusively for LG.)

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.

Research Design :
Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. It is an important tool to study buyers behavior, consumption pattern, 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 :
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. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. 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. 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.

Data Collection Methods :

After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data.

Primary Data :
For primary data collection, we have to plan the following important aspects. Sampling Research Instrument Data analysis and interpretation 1. Questionnaires 2. Pie chart 3. Bar chart

Secondary Data :
The Companys profile, journals and various literature studies are important sources of secondary data.

Data analysis and Interpretation

Table 1 : You have LG 21 TV

You Have Yes No Total Respondents 33 17 50 Percentage 66 34 100 Source: Field Survey

Chart No. 1 : You have LG 21 TV

You have LG 21 TV
No 34%

Yes 66%

Interpretation :
1) 66% of the respondents have said that they have LG 21 TV. 2) 34% of the respondents have said that they do not have LG 21 TV.

Table 2 : Preferable products of LG T.V.

Variety preference LCD CRT Flatron Plasma Total

No. of respondents 7 13 10 3 33

Percentage 20 40 30 10 100 Source: Field Survey

Chart No. 2 : Preferable products of LG T.V.

No. of respondents
LCD CRT Flatiron Plasma

10% 30%

20%

40%

Interpretation :
1) 20 % of the respondents has preferred for LCD TV. 2) 40 % of the respondents has preferred for CRT TV. 3) 30% of the respondents has preferred for Flatron. 4) 10% of the respondents has preferred for Plasma.

Table 3: Parameters influencing purchasing of L.G. 21 T.V.

Variety preference Price Product Feature Brand Service Durability Total No. of respondents 7 8 10 4 4 33 Percentage 20 26 30 12 12 100 Source: Field Survey

Chart No. 3 : Parameters influencing purchasing of L.G. 21 T.V.

Parameters Influences
Price Product feature Brand Service Durability

12% 12%

20%

26% 30%

Interpretation:
1) 20% of the respondents have preferred for price. 2) 26% of the respondents have preferred for product feature. 3) 30% of the respondents have preferred for brand. 4) 12% of the respondents have preferred for service. 5) 12% of the respondents have preferred for durability.

Table 4: Point of Purchase of L.G. 21 T.V.

Purchase Dealer Retailer Total Respondents 23 10 33 Percentage 70 30 100 Source: Field Survey

Chart No. 4: Point of Purchase of L.G. 21 T.V.

Point of Purchase of L.G. 21 T.V.

Dealer Retailer

30%

70%

Interpretation:
1) 70% of respondents have preferred for purchasing the T.V. from the dealer. 2) 30% of the respondents have preferred for purchasing the T.V. from the retailer.

Table 5: Preference to buy T.V.

Reason Attractive Prices Services Demonstration Offers Convenience Total Respondents 10 7 8 5 3 33 Percentage 30 20 26 16 8 100 Source: Field Survey

Chart No. 5 : Preference to buy T.V.

Preference to Buy
Convenience 8% Offers 16% Attractive Prices 30%

Demonstratio n 26%

Services 20%

Interpretation:
1) 30% of the respondents have preference to buy T.V. because of attractive prices.

2) 20% of the respondents have preference to buy T.V. because of good services. 3) 26% of the respondents have preference to buy T.V. because they get from demonstration. 4) 16% of the respondents have preferred to buy T.V. because they firstly preferred to services. 5) 8% of the respondents have preferred to buy T.V. because they get convenience.

Table 6: Initiators to prefer LG T.V.

Initiators Father Mother Self Children Other Total Respondents 12 10 6 4 1 33 Percentage 36 28 18 16 2 100 Source: Field Survey

Chart No. 6: Initiators to prefer LG T.V.

Initaitors at the time of buying

Father, 36 40 30 20 10 0 Father Mother Self Children Other Other, 2 Self, 18 Children, 16 Mother, 28

Interpretation:
1) 36% father initiates the shopping of LG 21 TV. 2) 28% mother initiates the shopping of LG 21 TV. 3) 18% self initiates the shopping of LG 21 TV. 4) 16% children initiates the shopping of LG 21 TV. 5) 2% other people initiates the shopping of LG 21 TV.

Table 7: Advised to purchase LG TV

Advisor Advertisement Friends Dealer Any Other Total Respondents 15 9 4 5 33 Percentage 44 26 12 18 100 Source: Field Survey

Chart No. 7: Advised to purchase LG TV

Advised to purchase LG TV
Any Other 18%

Dealer 12%

Advertisement 44%

Friends 26%

Interpretation:
1) From the survey it is to be found that 44% of the respondents have influenced by the advertisement. 2) 26 % of the respondents have influenced by friends. 3) 12 % of the respondents have influenced by dealer. 4) 18 % of the respondents have influenced by some other reason.

Table 8: Opinion about service Quality of LG T.V

Service quality Good Moderate Bad Total Respondents 17 12 4 33 Percentage 50 36 14 100 Source: Field Survey

Chart No. 8: Opinion about service Quality of LG T.V

Opinion about service Quality of LG T.V

Bad 14%

Moderate 36%

Good 50%

Interpretation:
1) 50 % of the respondents have satisfied by service quality.

2) 36% of the respondents have moderately satisfied by service quality. 3) 14% of the respondents have not satisfied by the service quality.

Table 9: Easy availability of product

Easy Available Yes No Total Respondents 22 11 33 Percentage 66 34 100 Source: Field Survey

Chart No. 9: Easy availability of product

Easy availability of product

No 34%

Yes 66%

Interpretation:
1) 66% of the respondents have said the product is easily available to them. 2) 34% of the respondents have said that product is not easily available to them.

Table 10: Specialty of LG T.V.

Specialty Good quality Good features Good durability Any Other Percentage Respondents 13 10 7 3 33 Percentage 40 30 20 10 100 Source: Field Survey

Chart No. 10: Specialty of LG T.V.

Specialty of LG T.V.
Any Other 10%

Good durability 20%

Good quality 40%

Good features 30%

Interpretation:
1) 40% of the respondents have preferred the T.V. because of good quality. 2) 30% of the respondents have preferred the T.V. because of good features. 3) 20% of the respondents have preferred the T.V. because of good durability. 4) 10% of the respondents have preferred the T.V. because of any other reason.

Table 11: Satisfaction Level of the Respondents

Satisfaction level Fully Satisfied Satisfied Partially Satisfied Unsatisfied Total Respondents 10 22 12 6 33 Percentage 20 44 24 12 100 Source: Field Survey

Chart No. 11: Satisfaction Level of the Respondents

Satisfaction Level
Unsatisfied 12% Partially Satisfied 24% Satisfied 44% Fully Satisfied 20%

Interpretation:
1) 20% of the respondents are fully satisfied after buying the TV. 2) 44% of the respondents are satisfied after buying the TV. 3) 24% of the respondents are partially satisfied after buying the TV. 4) 12% of the respondents are unsatisfied after buying the TV.

Findings
1) 40% of the respondents have preferred for CRT TV. 2) 30% of respondents have preferred for brand. 3) Most of the respondents near about 70% have preferred to buy TV from dealer. 4) Near about 30% respondents have preferred TV because of attractive prices. 5) As per the survey it is to be found that 36% of the respondents are father as initiator. 6) Most of the respondents i.e. near about 44% have influenced by advertisement while at the time of purchasing. 7) Near about 50% of the respondents have satisfied by the service quality. 8) Most of the people i.e. 40% have preferred TV because of good quality. 9) As per the survey 44% of the respondents are satisfied after buying the TV.

Conclusions
1. As per the changing needs of the customers the company is providing good quality of products as they earlier also do. 2. Most people are buying the T.V. because it is durable and eye sensitive also which is firstly done by this company. 3. Due to various demonstration and price satisfaction by the customers it could help them enormously. 4. While after purchasing the T.V. the response of the people is also quite good. 5. As per the part of service quality and durability respondents shows a good feedback.

Suggestions
Along with respondents, dealer and observation this report came to know that; 1) Company should provide some additional facilities of product. 2) Various issues regarding to the new series of product could be launched in the city like Nanded so it more consumption may also takes place. 3) As per the growth of the consumption they should follow some additional features of the product. 4) Company should always focus on service so it could get maximum output. 5) 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. 6) Company should also be focus on LCDs other size of T.V. it will also helpful for them.

Bibliography
1. Kothari C.R, Methodology Research 2. www.lgindia.com 3. www.google.com 4. www.wikipedia.com 5. LG magazine

Questionnaire
Consumer Satisfaction Questionnaire for LG 21 T.V.
Name of the customer: Address: . Income (Monthly): Sex: - Male Female

Q.1 Do you have a LG 21T.V.? a. Yes b. No Q.2 Which LG 21T.V. does you has? a. CRT b. LCD c. Flatiron d. Any Other

Q.3 While purchasing L.G. 21 T.V. which parameter influences you? a. Price b. Product feature c. Brand d. Service e. Durability

Q.4 From where you purchase LG 21 T.V.? a. Dealer b. Retailer Q.5 You prefer to buy from the same as you have mentioned in above question because of following reason; a. Attractive price b. Service c. Demonstrations d. Offers e. Convenience Q.6 Who initiates the shopping of LG 21 T.V. in your family? a. Father b. Mother c. Self d. Children/Teenager e. Other

Q.7 Who has advised you to purchase the LG 21 T.V.? a. Advertisement b. Friends c. Dealer d. Any Other

Q.8 How is the service quality of L.G. 21 T.V.? a. Good b. Moderate c. Bad Q.9 Can you get the LG product easily from dealer? a. Yes b. No Q.10 What is the specialty of LG 21 T.V.? a. Good quality b. Good features c. Good durability d. Any other Q.11 Are you satisfied by the services offered LG 21T.V. products? a. Fully Satisfied b. Satisfied c. Partially Satisfied d. Unsatisfied