PROJECT REPORT ON

COMPARATIVE STUDY OF LG ELECTRONICS WITH ITS COMPETITORS

Report submitted for the requirement of the degree of MASTERS OF BUSINESS ADMINISTRATION (FALL WINTER/2010-12)

INDUSTRY GUIDE Mr. Varun Mehta

SUBMITTED BY Sandeep chauhan Section fe1 Idno:D1012FWISBE-

A1027-(DEL-5A-1267)

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI

E-MAIL: ACADEMICS@IIPM.EDU; WWW.IIPM.EDU

STUDENT DECLARATION

This is to certify that the Dissertation titled COMPARATIVE STUDY OF LG ELECTRONICS WITH ITS COMPETITORS in partial fulfillment of the requirement for the award of degree MASTERS OF BUSINESS ADMINISTRATION IIPM NEW DELHI is an authentic work carried out by me with the best of my efforts. To the best of my knowledge the content of this thesis is original and authentic being practical to every nature.

Date:

Place: SANDEEP CHAUHAN

ACKNOWLEDGEMENT
I wish to express my heartfelt appreciation to many who have contributed to this study. I would like to thank to my Faculty Guide Mr. Aman Chug & Industry Guide Mr. Varun Mehta for their valuable guidance. I wish to express my gratitude to my faculty guide, who provided me with constant impetus to complete this project.

I wish to convey my heartfelt thanks to all my friends for their encouragement and moral support during the course of my project work. The inspiration behind successful completion of my project work is their endurance, everlasting strong support and endless prayers. Lastly I express my thanks to all those who helped me directly or indirectly for the successful completion of this project.

SANDEEP CHAUHAN

PREFACE
The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customers grievances. Moreover, the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market. The topic given to me was:

COMPARATIVE STUDY OF LG ELECTRONICS WITH ITS COMPETITORS

I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute. I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please ignore it.

TABLE OF CONTENTS
1.INTRODUCTION 2.COMPANY PROFILE 3.OBJECTIVE OF STUDY Limitations 4.RESEARCH METHODOLOGY a) Research Design b) Data Collection c) Selection of Sample d) Sample Area e) Sample size f) Statistical Technique g) Proposed Questionnaire DATA ANALYSIS & FINDINGS CONCLUSION SUGGESTION & RECOMMENDATION REFRENCE QUESTIONNAIRE

EXECUTIVE SUMMARY

All human actions have one of these seven causes: chance, nature, compulsion, habit, reason, passion and desire. As a human being the major cause to take over this project was reason. The reason is to accomplish my task, aim, and motive of enhancing my knowledge and to know more about the consumer durable industry. Consumer durables have become inseparable in this era of modernization and thus influence even the common mens life. This is one of the fastest growing industry with an growth of about 8% every year. Invention and the launch of new technology is the most important tool of this industry. To maintain the quality of products provided to the customers the companies dealing in the consumer durable products has to undergo extensive study and research work. This project work is a small attempt to understand the dealer, retailer as well as the consumer behavior in regards to the Colour television, Washing machine, Refrigerator & Air conditioners and to find out the position of LG Electronics among its competitors. This SIP project is being conducted on Consumer durables i.e. CTV, Washing Machine, Refrigerator & Air conditioner for (LG Electronics India private limited), I am focusing on Comparative Market and consumer behavior study of consumer durables of LG vis--vis its competitors i.e. Samsung, Videocon, Haier, Bluestar in CTV, Washing Machine,

Refrigerator & A.C segment. For this, Survey was conducted with a set of questionnaire containing the questions which helped in obtaining the desired information from the dealers & retailers. In the next segment of study the consumers will be targeted with a set of questionnaire for the desired information. Till date around 50 dealers and Retailers were approached in the Noida and its neighboring districts. The information was obtained through questionnaire. The copy of questionnaire is being attached with this report. The method of personnel interview was also adopted for those who were unwilling to give any information in writing. At present around 100 of such interviews have been conducted keeping in mind the requirements of the survey being conducted.

INTRODUCTION

A comparative marketing study of LG Electronics vis--vis competitors(Samsung, Haier, Videocon, Godrej ) in the area of Noida and Delhi All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to investigation Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. Research is a common parlance refer to a search of knowledge. The advanced learners Dictionary of current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of Knowledge. What is comparative Marketing study? In comparative marketing research we take our competitors products and make comparison through consumer with our own products.

Why Comparative Marketing study? Comparative marketing study/research comprise one of the most important and fascinating task of marketing. It provides information for marketing decision making, any problem that are identified and investigated further by using problem solving techniques with the objective of arriving at solution. The most important innovation in the new approach is to study simultaneously different organizational forms of business interest representation. The aim of the study is to point out the best (in this respect) among the alternatives that are being studied. The final aim perhaps is not only to find the best, but also to improve it or similar objects later on. LG Electronics India Ltd. (LGEIL) is the youngest and fastest growing consumer durable brand. Today, LGEIL is an US$ 1456 million behemoth, with a sprawling product range, and market leadership in nearly all product categories.

The study will also include the survey which will be targeting about 20 dealers and around 100 consumer in the NCR . The main emphasis in the survey will be given on the sales of LG in comparison to its competitors in CTV, WASHING MACHINE, REFRIGRATOR & AC segment, the consumer perception about the brand will also be taken into consideration while conducting this survey. The analysis of the buying behavior in respect to CTV, WASHING MACHINE, REFRIGERATOR & AC will be another important component of my study. Buying behavior of the consumer is a study of how individuals make decisions to spend their available resources ( time, money & effort ) on consumption related items(what they buy, why they buy, where they buy , how often they buy and use a product or service). The heterogeneity among people across the world makes understanding consumer buying behavior an intricate and challenging task. The consumers identity, his beliefs, specific needs, attitudes and the kind of product and brand available in that product category influence his buying behavior. The marketing efforts of a firm have a profound impact on the buying decisions of customers. Therefore the attempt of my survey will be to obtain an in- depth knowledge of the customers buying behavior. The effect of external variables on purchasing pattern of customer will also be considered here the external variables refer to all those factors which will be affecting the consumer purchasing decisions, these can be price of the goods and on its attitude to respond to functional needs. The critical variable under this approach is the availability of adequate information about purchase alternatives (price, product functionalities) to support the decisional process .

a. Overview of the Consumer Durable Sector

Background: Prior to liberalisation, 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 superceded by players like BPL and Videocon in the early 1990s, who invested in brand-building and in enhancing distribution and service channels. Then, with liberalisation came a spate of foreign players from LG Electronics to Sony to Aiwa. The graph of top three consumer durable giant is shown blow,

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, refrigerators & television include: Blue Star Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd. & Thomson Ltd. Demand/Supply: The colour television (CTV) segment of the consumer durables industry has been hit by stagnant demand in recent times. CTV manufacturers like BPL and Videocon have effected price cuts while others have lowered production levels in the face of rising inventories. They have also initiated drives to clear old stocks.

The results are mixed. For instance, demand for 14-inch CTVs was hit by the reduction in the prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has also slowed because of the price factor. So companies like LG and Samsung are now expected to reduce prices in the premium categories. As for the other segments, air conditioner demand was up in recent months. In the case of refrigerators, a chunk of the sales are still in the direct cool segment as against the frost-free one, But replacement buyers tend to go for technologically improved models. Hence, sales of frostfree refrigerators have grown steadily over a period of time. The washing machine market consists of two broad segments - semi-automatic and fully automatic. The first accounts for a chunk of the market. In terms of loading type, top loading machines sell in greater numbers than front-loading ones.

CONSUMER DURABLES MARKET PIE IN FY06

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2.LG Electronics: Company Profile

It started as a big dream in small town of the north Indian state of Utter Pradesh -----a township by the name of Greater Noida. Back in 1997, it was just a piece of wilderness. Nobody, least of all the owner of a fortune 500 company would have dared to choose it as a canvas to script a transnational corporations success story in India, but, then, LG, if you go into the history of the seoul-based company that has footprints in nearly all parts of the glove, is a different kind of an entity altogether. LGIL has competition yet it has managed to become one of the most admired companies in India though innovation. LGEIL-THE NEXT INDUSTRIAL GIANT: LGIL is youngest and fastest growing

consumer durable brand. LG at the no. one slot is targeted to end the year with a turnover of us$ 1.5 billion. After China, LG plans to make India its second largest manufacturing hub. Today, LGIL is an US$ 1456 million behemouth, with a sprawling product range, and market leadership in all product categories. The Indian operation of LG Electronics in fact rank among the best three in LG Electronics world-wide. To be sure, life was not always this good for LGEIL. The mud trail that led us to plot

no.51,Uydyog Vihar, Surajpur Kasna Road in Greater Noida was strewn with massive potholes and road blocks Before 1997, LG had made two concerted attempts at penetrating the Indian market. Unfortunately, both met with miserable failure. The first was in the form of a joint Venture with Bestavision and second a JV with a Birla Group company. For several unaccountable reasons, both the attempts came to a naught and talks petered off as quickly as they had started. They came a vital policy shift. The Government of India liberalized its economic policy and allowed transnational corporations to set up shop in India. One of the first to respond to this invitation was LG-Korea, a corporation that strait took the dive and this time made the strategic

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decision of setting up a 100 per cent subsidiary of the Korean company in India. This time, it did not need the support of any partners. In March,1997, K R Kim who was the serving in panama was called to India to spearhead the Indian operations. However no sooner was the announcement made that the business magazine and newspapers in India started to write us off predicting a bleak future for the company. Some went started to write us off predicting a bleak future for the company. Some went so far as to forecast our premature demise mainly because of our earlier, failed attempts at breaching the Indian turf. A few industry watchers also felt that our timing was bad, as the consumer durable market in India was already saturated with indigenous and global players, leaving no room for another entity; worst a foreign one at that. LGEIL-OF, BY AND FOR INDIANS : The unchallenged trend those days at most

transnational corporations was that expatriates manned all crucial functions. All the policies were formulated at the headquarter and then unquestioningly executed at the various branch office. This left very little elbow room for local managers to maneuver things at their end.

Consequently, none of these initiative factored in local considerations leading to huge disconnect between what the local consumer wanted and what the corporate office though they wanted! In contrast, the LGIL story in India got scripted very differently from this, as it bore a strong local imprint. In retrospect, I think, it must have made for a bold, cultural strategy implemented with lot of internal conviction. The strategy got vested in three crucial decisions, which have now entered into the very fabric of our organizational cultural. Briefly, the three decision were: 1. Indian employees would be appointed as the key decision makers at LGEIL. The role of the Foreign Service Employees (FESs) would at best remain limited to that of facilitators, which implied that they would co-ordinate with LG korea and provide expertise, where needed. 2. The head of Human Resources division and the head of Sales & Marketing division would always be Indians.

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3. The Head of Manufacturing and the Head of Finance and Accounts would be FSEs but even they would be assisted by Indian managers: who would provide key support to these functions. These decision became the cornerstone of LGs operational strength in India the evident of which can be found in the following statistics : From a turnover of US$ 31 million in 1997, it went to US$ 583 million in 2002 and further to US$ 1456 million in the last financial year 2005 Our headcount, meanwhile has grown from 402 in 1997 to 2900 in 2005 In just over five-six years, we have shot to NO#1 in the rerfrigrators (29,4 per cent market share); and No#1 in washing machine (30% market share) No#1 in microwave oven(36.7% market share ) products category and No#1 in the air conditioner (34% market share )

LGEIL POLICIES : SETTING PRECISE TARGETS: How a Korean company managed to outsmart its foreign and Indian rivals is a story about culture change. Like the other Korean companies that have been successful in India- Samsung and Hyundai, Indias no -2 car producer. LG had good products and smart marketing. But LG went further by challenging Indian work habitsnegative management traits, such as ducking challenges and tolerating excuses, Indian work habits.. negative management traits such as duckling challenges and tolerating excuses, are overcome with bonus schemes that can add 80% to salaries Employee are assessed against precise targets. BENCHMARKING AGAINST THE BEST: Around this time, we had also begun to realize that any exercise at setting up a KPI system was incomplete without benchmarking our parameters against the best in the industry. We also discovered that most companies hired external(read foreign ) consultant to handle this job that not just charged an exorbitant fee, but also took six-seven months timeframe to accomplish y task, next year, use X/2 resources to accomplish y, or better still 2y tasks. Sounds impossible? But we know the system works.

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 THE PUSH AND THE PULL STRATEGY: from the word go, LGIL has had a very strong customer and sales-driven ideology. Dub is as a strategic balance of the push and pull factors. The push came from the loyal customers. To reinforce this vision, we made it a customary practice that any LGEIL executive, visiting any city or branch had to first do field visit of the local market and experience the market first hand. There were no two ways about it. The feedback had to come straight, honest and delivered direct to each one of us. This requires that every LG brands ambassador had to meet a few local dealers/distributors and sell one or two products over a direct interface with the customers. Later at the corporate managers meeting, they had to make a presentation and be quizzed on what values customers looked for in LGEIL products could be sent back to the R&D. POLICY ON PRICE CUT: LG has also shaken things up on the marketing side. It has driven prices down by 18% to 20%. Over the past two years LG has steadily increased distribution outlets and the breadth of products ranges STRONG AND SPEEDY EXECUTION: Strategy planning, as reiterated above, has always been a dynamic process at LGEIL, and, Prompt execution our hallmark.This bring prompt execution our hallmark. At LGEIL,execution also became strong because we genuinely empowered our employees and held them accountable for their, as well as the company eventual progress.This also generated a strong sense of ownership in them. And secondly passion and positive energy kept their emotional involvement high at all times. They were experiencing a start-up environment, which always bring out the best in everybody while simultaneously honing their survival instincts. PRODUCT DIVERSITY : LGEIL had a strong portfolio of products, viz CTV, air conditioners, washing machines, refrigerators and microwave ovens, to name just a few , from the very beginning, we were among the few , front- running consumer durable companies in India to command such a vast array of products. The benefits is that even if one or two are not performing very well in the market there are others to tide us through. In fact, there is always one product that remains on at any point of time in the year, so there was never a rainy season. RURAL MARKETING : By the year 2000-2001, LGEIL had a strong presence through the length and breadth of the country. We were dong ewll in almost all metropolitan cities,

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especially in the northern and eastern belts of the country although we still had some catching up to do in the south and west This was achieved in 2002-2003, when LGEIL emerged as the undisputed market leader. Yet, it was hardly the reason to sit on our laurels. The problem of further growth had to be addressed and there was this pressing need to explore and find new markets. In the metros, although we were doing pretty well the cost of selling was too steep to enable us to cut good profits as our competitors were also focused on developing just these markets. DUAL MARKETING: As would be clear from the preceding discussion, so far, we had only incurred cost and made little profit in executing all these expansion plans so now was the time to reap the fruits of our earlier labour and the only acceptable way of doing that was without compromising on the quality factor. That left just one option nip corner at the cost end. Since this was also the only route that would not have diluted the perception of the premium of the premium brand, the corporation started making serious efforts at cutting cost through product innovation. A portion of even these saving we intended to pass on to the Indian customer. In short, our endeavour was to try and improve our market share without denting our profitability. We had already reduced our overheads by increase capacity. Now the next logical steps was to attack the cost end of our production. This LGEIL concept that was later lauded by McKinsey as Premium marketing to the masses and was communicated to the customers in the form of a strong marketing campaign more value at much less than the price! With this done, the affordability of our products became the bulwark of all our marketing campaigns. This strategy caught our competitors in the form of a strong marketing campaign. A few reacted by announcing price cuts of their own their own, not realizing that LGEIL was not just cutting prices we were also focusing strongly on cost innovation at our end. So while their price cuts led to more losses and pressures on cost, ours led us to more customers and increased profitability in the end, with this simple strategy, we managed to kill two birds with one stone.

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Some of our competitors later saw through our game plan, but by then it was too late for them to follow suit and in any case, they still hadnot unravelled the full strategy, which was not to cut prices uninformly across the country, but stagger them across different segments Very cleverly while we were launching premium products in different categories we were also varying our pricing strategy from state to state that kept competition guessing and on tenterhooks all the while. I remember how one MNC sought to hike its subsidy from the parent company simply to counter our prices strategy, at the core of which lay simple fiscal discipline measure that they too could have followed but probably couldnot because of lack of focus or strong execution. Time and efforts were both in our favour. And the rest as they say is history.

LGEIL-ORGANISATIONAL STRUCTURE

As it is clear from the figure Except for the CEO, VP-Manufacturing and VP-finance & Accounts, all other position were held by the Indians.

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This kind of people planning was deliberate and the result of a carefully 1thought-out strategic intent, initially, when we recruited people, we took them in their respective area of expertise, but onse the company stabilized, we started rotating them as per their request, inclination, acquired skills and expertise. STRONG EMPLOYEE FOUNDATION : the enormous speed at which LGEIL grew in those days would possible without logical and rational system. The management knew they had to do something remarkable different from competition. So we set about recruiting people, who among other things, were perceived to be high on: Physical energy Emotional energy Next, they were provided with: 1. a big vision 2. Melt-ins so that all decisions could be made by consensus and nothing got unilaterally imposed on any one 3. each was given absolute freedom within certain pre-defined parameters and held accountable for results.

Meanwhile, the tools that the employees were encouraged to use mainly comprised of; 1. creating total transparency relating to the companys performance including a

discussion of sensitive issue , such as profitability 2. 3. 4. 5. Sharing with them news and details of the future line-up of our products Showing genuine respect and acceptance of everybody ideas and suggestions Resposing total trust and faith in their intention endeavours and capabilities Building strong communication links (these details are discussed in a later chapter ) not

Proactively sorting out employee grievances, even when immediate solutions were within as issue went beyond the scope and policies of the originations. LGEIL : LOGO

Any attempts at understanding LG would be incomplete ,without

understanding LG Logo: Life is Good. Our vision, our corporate philosophy and our core values are all encapsulated in this simple logo. The circle in the logo represents the globe, i.e. the full

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reach or our aspiration to emerge as a global company. It also implies the face of a smiling customer, conveying that we are extremely customer-focused, or that we represent a world that is futuristic youthful and humane. The bulls eye on the circle represent the organization s single minded focus on goal s and determination to achieve results with a smile. The white space deliberately left at the upper right end stand for of creativity. The red color conveys friendliness and LGs commitment to quality, while the gray stands for technology and reliability. Products or other exterior manifestations of a company to my mind do not reveal its true character which is manifest in its value system, practiced philosophies and accepted norms. Products people system are all outcome of this core value system and this is what the LG logo conveys. LGEIL is like a gushing, turbulent river, cascading at full length and speed from a rugged mountain. A powerhouse of raw energy, it resounds unilaterally but at times collide head on with each other but that is ok,so strong bulwarks on either direction to contain all the roaring action of mightly river. LG Electronics : vision LG Electronics vision for the 21st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. LG Electronics has set its mid-term and long-term goal to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010. We aim to utilize our core capabilities of product leadership, market leadership and people leadership and enhance our corporate culture of team work and fun workplace to achieve our mission of becoming "2 by 10", that is, double our sales volume and profit by year 2010. LG as a brand and a market leader in India attracts candidates in hordes and its Industry leadership status serves as a major factor in attracting employees. Therefore LG has the ability to hire the best in the industry.Once these candidates are hired, they undergo and exhaustive

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induction programmed for duration of 14 days under which the candidate is acquainted which each and every aspect of the organization. A thorough integration with HR & Business Processes takes place and the formulation of a KPI is done within three days of taking the candidate onboard. Customer Department/Vendor Department interaction also takes place.

LG as an organization takes pride in the fact that they have the highest manpower productivity and the lowest manpower cost in comparison to the industry. Infect LG is benchmarked in terms of manpower costing.

Employees are given a chance to visit Korea on completion of...years in LG. Apart from this LG also has a family ambassador programme where a dedicated mentor goes to the workers house and talks to his family, their problems etc. and tries to make their Situation better. All workers are served lunch along with the other senior employees so that no demarcation is made. Infect lunch is first served to workers and then to the white collar employees. On the first Monday of every month the workers meet the MD and 50 workers amongst of them get awards for outstanding performance.

Corporate Social Responsibility (CSR):

With the advent of globalization in India, the concept of Corporate Social Responsibility has emerged as one of the most important aspects of corporate behavior. Acknowledging this responsibility is crucial for an organization's sustainable development and future access to the global market. A definite corporate social responsibility(CSR) plan has therefore not only

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become an integral part of an organization's brand building strategy, but has also emerged as an important tool to enhance the organization's credibility, attract potential investors and clients and employ the best of industry talent.

As a leading corporate in India, we at LG believe that corporate contribution to society when guided by self-interest results in long term goodwill building, and have therefore endeavored to assume responsibility for the needs of its people, the environment and the society. We have consistently looked beyond its immediate business environment to address larger societal issues. This concern springs from the belief that a true corporate vision must embrace the wider community rather than just shareholders, customers and suppliers. At the same time, there is nothing idealistic about LG's CSR vision, nor is it in conflict with hard-headed business sense. LG India has worked jointly with Prayas, a Delhi-based NGO by undertaking campaigns / activities for the welfare and upliftment of Underprivileged Street and slum children and providing those services in the field of education, health care, shelter, vocational training and other rehabilitation programmes. The company also tied up with HELPAGE India, the country's largest voluntary organization working for the cause and care of disadvantaged older people. LGEIL also takes care of 24 villages around Greater Noida out of which six have been adopted formally. The company has on its pay roll three doctors who visit these villages daily and offer Free Medical Care, which comprises of free check ups and a free distribution of medicines. LG's commitment to contribute substantially to the community led to the formation of the 'Tinkha,' a community development club consisting of 10 people. It recently organized Blood Donation Camp where 172 employees donated blood in one day.

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OBJECTIVES OF THE STUDY

The consumer durable market has grown considerably in last few years in India. With the growth, the level of competition has grown with the entry of new players & existing players expending their product portfolio. Literally every day companies come up with new attractive offers to grab the better share of the market. The challenge is not only to get the new customer but also to continue with the existing customers. The objectives are : 1. Identify the Dealer as well as Consumer perception about the LG products with respect to its competitor. 2. To suggest some differentiating strategies like (Product differentiation strategy, Price differentiating, Service differentiating, Channel Differentiation) to stay ahead in competition for LG . 3. To identify the factor affecting the purchasing decision like (price,promotion,Advertising)

4. To identify the aesthetics and USPs of other competitive brands.

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Limitations of the study:

1. The study was limited in its scope because of the relatively short time available (Three months ) for completing the whole study including literature survey, development of hypothesis, collection of data, analysis of data and writing the draft report. Due to constraints of time and opportunity, the sample for the study had been collected from Chandigarh and Mohali from few selected dealers. For the sake of simplicity few variable were taken into account 2. The Data which has been collected from the Dealer and Consumer might not be very correct to tack strategic decision as they may hide a lot of information 3. Lack of interest in giving responses by Dealer and Consumer. 4. The sample size which I have taken is too small to make a universal statement. 5. The final conclusion can be affected by some of the extraneous variables like Promotional offer and new launch of product. 6.Lack of sufficient information about confidential data of company. 7. Lack of the instruments to find out the reasonable outcome. 8. Lack of proper experience. 9. Though the study will represents the position of LG in Chandigarh and Mohali. Due to small sample size, the finding may not be a true representative and it cannot be generalized. However it will provide a good base for future study and may have wider application in future. the company because we cannot access

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RESEARCH METHODOLOGY
a. Research Design:
Exploratory research study

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The method of research utilize in exploratory research are survey methods of all kinds, including comparative and co relational methods. My research is comparative in nature so I am using exploratory research study

b. Method of Data collection:

In order to study the consumer perception regarding the uses of LG Products with respect to other companies :- Samsung, Videocon, Haier in NCR, both primary and secondary data has been collected. The study proposed to collect Primary data through questionnaire using survey method. So as to give a precise, accurate, realistic and relevant data. The secondary data as it has always been important for the completion of any report provides a reliable, suitable, equate and specific knowledge. The data is collected from various magazines, fact sheets newspapers and websites published by the company.

c. Sampling Technique:

The study proposed to use convenience sampling.

This sampling methods involves purposive or deliberate selection of particular unit of the universe for constituting a sample which represents the universe. In this research I will secure data from consumer durable buyers which are homogeneous in nature.

d. Sample Area:

In order to study the consumer perception as well as dealer perception

of LG products with respect to its competitor, the data for the study has been collected through a survey of people residing in NCR.

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e. Sample Size:
Consumer sample size: 100 Dealer sample size: 20 The data is analyzed uses percentage, Ranking and analysis

f. Statistical Technique:

of variance (ANOVA) method and finally shown with the help of BCG metrics. The respondent in Consumer questionnaire was asked to indicate their preferences on a five point -Likert Scale. They were asked to choose among the option Excellent, Very Good, Good, Poor and Very Poor regarding various statement. The data was processed and analyzed using means, standard deviation and f-value to present the result of the study.

g. Proposed Questionnaire:
Questionnaire for Consumer: It consists of data pertaining to the activities, interests and opinions relating to purchase behavior, socialization, brand opinion and the like. A five-point scale ranging from 1 strongly disagrees to 5 strongly agree is used.

Parameters measuring the consumer perception are Price Packaging Product Features Brand name Quality Design Durability After sales service

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Questionnaire for Dealer: The questionnaire for dealer has been used to find out following facts How many brands products a dealer is selling. How many models of each brand they are displaying. Highest selling brand of each company Level of preference of LG with respect to other brands. Is customer is ready to pay premium price or not. The parameters on which consumer makes his purchase decision Annual estimated sales Dose customer come with prior knowledge/information about the product or not What is the most acceptable size of these products CTV, AC, Refrigerator and Washing Machine What are the different complaints faced by the consumer

Data Interpretation:
An attempt has been made to compare the four consumer durable brands namely LG, Samsung, Videocon and Haier, I had picked up four different product categories - frost-free refrigerators, Colour televisions of 21" or bigger size, air-conditioners, and washing machines, by

understanding the perception of 100 Consumers and 60 Dealers, So as to conclude which consumer durable brand is more suitable to compete and survive in the global market. The survey hasn't merely measured the customer satisfaction for different brands but has actually ranked brands on the basis of customer delight. The difference is simple. Almost every big brand in the market today meets a certain threshold level of product and service performance. But certain brands exceed customer expectations. These are the brands which delight the customer, not merely satisfy him

DEALERS SURVEY ANALYSIS

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DEALERS SURVEY ANALYSIS

a. Intorduction In order to understand dealers perception about consumer behavior towards purchase of refrigerators, ctv, washing machine and ac a survey was on dealers. The survey was conducted on small scale. Due to time constraint, survey was conducted on 15 dealers of each products.rs. The data collection instrument was a questionnaire which consisted of 14 questions on each product and which measured different attributes b. Analysis of Survey<Refrigerators> b1. How long are customers in the retailing of refrigerators? (Please Tick)Response:
ATTRIBUTES NO. OF % AGE OF RESPONDENTS RESPONDENTS

< 1 Year 1 < 2 Year 2 < 3 Year 3Years Above or

2 4 6 8

10 20 30 40

NO. of RESPONDENTS

2 8 4

< 1 Year

1 < 2 Year

2 < 3 Year

3Years or Above

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This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of refrigerators. As can be seen from the pie chart that 60% of the dealers have been in retailing of refrigerators for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of refrigerators for less than 1yrs. This particular aspect was considered in the research because after knowing about the work experience of different dealers we can interpret the kind of perception about customer behaviors B2.. Which of the following brands of refrigerators, You are dealing in? (Please Tick) Response:
BRAND LG Haier Samsung Videocon Any Other NO. of RESPONDENTS 19 11 17 13 10 % age of respondents 93.33 76.67 86.67 76.67 36.67

The above given graph tells us how frequently respondents (dealers) deals in above given brands of refrigerators. 93.33% of dealers are preferred to deal LG brand while 37% of dealers are

27

preferred to deal with other brand (BPL, Allwyn etc.). Samsung is second most brand preferred by dealers. As we can see from the graph that Samsung, LG, Videocon are most likely brand among the dealers whereas Godrej, BPL, Allwyn are less preferred by dealers than other brands. B3.. To what extents, following brands of refrigerators are preferred by customers? (Mark the appropriate preference level by ticking against respective brand) Response: Very High -4, High 3, Low 2, Very Low 1, Nil 0

ATTRIBUTES LG Samsung Haier Videocon

RESPONSE 17 14 12 17

PREFERANCE LEVEL 3.56 3.47 2.70 3.17

Brands of Refrigerator prefered by customer

25 20 15 10 5 0 LG Samsung RESPONSE Haier Preference LEvel Videocon

The above given graph gives us the information regarding the preference level given to different brands by customers with preference level of 0 for the brand that is not preferred, 1 standing for the brand that is preferred by less customers while 4 and 3 standing for that brands which

28

are most likely by customers. As we can see from the graph that LG is first preference by the customers followed by Samsung that is second most preferred by customers. While Haier is less preferred by customers. B4. Please rank each of the following features from 1 to 5 on the basis of their importance to customers. Rank 1= the most importance feature Rank 5=the least important feature Feature a) Space b) Front Door Design c) Cooling Effect d) Colour e) Brand Name Rank Order _________ _________ _________ _________ _________

Response:

ATTRIBUTES Space Front Door Design Cooling Effect Colour Brand Name

Rank order 2 5 3 4 1

This helps company to concentrate on the most important factor so that they company could get the competitivd edge over competitor. B5.. In which season, customer mostly purchase refrigerator? (Please Tick) Response:

Attributes Off Season Summer Season Any Other

No. of Dealers 16 84 00

29

Season in Which Customer Mostly Purchase Refrigerator

0%

16%

84%

Off Season

Summer Season

Any Other

As above pie-chart tells us about in which season customer mostly purchase refrigerator i.e. in which season most of the sales happen. As we can be seen from the pie chart that 84% of dealers say that customers purchase refrigerators in summer while 16% of dealers say that customers purchase refrigerators in off season.

B6.

At which visit, customer generally finalize his/her decision for buying a refrigerator? Response:

Attributes At Fist Visit At Second Visit At Third Visit Any Other

No. of DEALERS 60 33.33 06.67 00

30

Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit

At Second Visit

At Third Visit

Any Other

This chart tells us about the customers willingness towards purchase of refrigerators. As can be seen from the pie chart that 60% of the dealers said that customers finalize that their decision towards purchase of refrigerators in first visit to showroom and 33% of dealers said customer does second visit while 7% of dealers said customers need third visit to finalize their decision. B7. Does customer come with prior knowledge/information about particulars brands of refrigerator? a) Yes b) No Response:

ATTRIBUTES Yes No

NO. of DEALERS 54 46

31

Prior Knowledge/Informations

46%

54%

Yes

No

As above pie-chart tells us about prior knowledge about refrigerators among the customers. As we can be seen from the pie chart that 54% of dealers say that customers come with some information or knowledge about refrigerator while 46% of dealers say that customers doesnt have prior knowledge about refrigerators. B8.. When customers mostly visit customersr showroom for buying refrigerator? a) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________ Response:

Attributes During Exchange Offer During Gift Option Offer During discount Offer Any Other

No. of DEALERS 50 23 27 00

32

Customer Mostly Visit Showroom 0% 27%

50% 23%

Exchange Offer

Gift Option

Discount Offer

Any Other

B9.. a) b) c) d)

What is the most acceptable size in refrigerator now days? 165 L e) 365 L 210 L f) 410 L 310 L g) 600 L Any Other (Please Specify) ___________________________

Response:

Attributes 165 L 210 L 310 L 365 L 410 L 600 L Any Other

No. of RESPONSE 20 21 21 11 11 06 00

AVERAGE SCORE 0.67 0.70 0.70 0.37 0.37 0.20 00

33

Acceptable Size in Refrigerator

0.8 0.7
Average Score

0.6 0.5 0.4 0.3 0.2 0.1 0 165 L 210 L 310 L 365 L 410 L 600 L Size of Refrigerator

B10.

Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer. (Rank1 = high, Rank 7 = low) a) Television ________ e) Radio ________ b) Newspapers c) Pamphlets ________ ________ f) Magazines ________ g) Internet ________

d) Trade Shows ________ Response:

Attributes Television Newspapers Pamphlets Trade Shows Radio Magazines Internet

Rank 01 02 06 03 05 04 07

B11. Please rank each of the following modes of payment from 1 to 5 opted by customers.

34

Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment Modes of payment a) Cash in Full b) Installments Through Cash c) Cheque d) Installments Through Cheques e) Credit / Debit Card Response:
Attributes Cash in Full Installments Through Cash Cheque Installments Through Cheques Credit / Debit Card Rank 1 3 4 2 5

Rank _________ _________ _________ _________ _________

c. Analysis of Survey<Color Television>

c1. How long are Dealer in the retailing of CTV? (Please Tick) Response:
ATTRIBUTES NO. OF % AGE OF RESPONDENTS RESPONDENTS

< 1 Year 1 < 2 Year 2 < 3 Year 3Years Above or

2 4 6 8

10 20 30 40

35

NO. of RESPONDENTS

2 8 4

< 1 Year

1 < 2 Year

2 < 3 Year

3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of CTV. As can be seen from the pie chart that 60% of the dealers have been in retailing of CTV for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of CTV for less than 1yrs. C2. To what extents, following brands of CTV are preferred by customers? (Mark the appropriate preference level by ticking against respective brand) Response: Very High -4, High 3, Low 2, Very Low 1, Nil 0
ATTRIBUTES RESPONSE PREFERENCE LEVEL LG Samsung Videocon Haier 14 17 12 9 3.56 3.98 3.17 2.67

36

RESPONSE

LG

Samsung

Videocon

Haier

The above given graph gives us the information regarding the preference level given to different brands by customers with preference level of 0 for the brand that is not preferred, 1 standing for the brand that is preferred by less customers while 4 and 3 standing for that brands which are most likely by customers. As we can see from the graph that Samsung is first preference by the customers followed by LG that is second most preferred by customers. While Haier is less preferred by customers C3. What are the parameters on which consumer makes his purchase decision? Parameters o o o o o o Price Packaging Product Features Brand Name Product Quality Product Design
Rank order 1 6 4 3 2 5

Rank .. .. . . . .

Parameters Price Packaging Product Features Brand Name Product Quality Product Design

37

C5.

At which visit, customer generally finalize his/her decision for buying a CTV? Response:
Attributes At Fist Visit At Second Visit At Third Visit Any Other No. of DEALERS 60 33.33 06.67 00

Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit

At Second Visit

At Third Visit

Any Other

This chart tells us about the customers willingness towards purchase of CTV. As can be seen from the pie chart that 60% of the dealers said that customers finalize that their decision towards purchase of CTV in first visit to showroom and 33% of dealers said customer does second visit while 7% of dealers said customers need third visit to finalize their decision. C6. Does customer come with prior knowledge/information about particulars brands of CTV? e) Yes b) No

38

Response:

ATTRIBUTES Yes No

%age of DEALERS 54 46

Prior Knowledge/Informations

46%

54%

Yes

No

As above pie-chart tells us about prior knowledge about CTV among the customers. As we can be seen from the pie chart that 54% of dealers say that customers come with some information or knowledge about CTV while 46% of dealers say that customers doesnt have prior knowledge about CTV. C7. When customers mostly visit customersr showroom for buying a CTV? b) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:
Attributes During Exchange Offer During Gift Option Offer During discount Offer Any Other %age of DEALERS 50 23 27 00

39

Customer Mostly Visit Showroom 0% 27%

50% 23%

Exchange Offer

Gift Option

Discount Offer

Any Other

C8.

Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer. (Rank1 = high, Rank 7 = low) e) Television ________ e) Radio ________ f) Newspapers g) Pamphlets ________ ________ f) Magazines ________ g) Internet ________

h) Trade Shows ________ Response:

Attributes Television Newspapers Pamphlets Trade Shows Radio Magazines Internet Rank 01 02 06 03 05 04 07

40

C9.

Please rank each of the following modes of payment from 1 to 5 opted by customers. Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment Modes of payment f) Cash in Full g) Installments Through Cash h) Cheque i) Installments Through Cheques j) Credit / Debit Card Rank _________ _________ _________ _________ _________

Response:
Attributes Cash in Full Installments Through Cash Cheque Installments Through Cheques Credit / Debit Card Rank 1 3 4 2 5

d. Analysis of Survey<AC> d.1. How long are Dealer in the retailing of AC? (Please Tick) Response:
ATTRIBUTES < 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above NO. OF RESPONDENTS 2 4 6 8 % AGE OF RESPONDENTS 10 20 30 40

41

NO. of RESPONDENTS

2 8 4

< 1 Year

1 < 2 Year

2 < 3 Year

3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of AC. As can be seen from the pie chart that 60% of the dealers have been in retailing of AC for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of AC for less than 1yrs. D2.. To what extents, following brands of AC are preferred by customers? (Mark the appropriate preference level by ticking against respective brand) Response: Very High -4, High 3, Low 2, Very Low 1, Nil 0

ATTRIBUTES LG Samsung Haier Videocon

RESPONSE 17 14 12 17

PREFERENCE LEVEL 3.85 3.47 2.7 3.17

42

RESPONSE

Videocon

LG

Sony

Samsung

The above given graph gives us the information regarding the preference level given to different brands by customers with preference level of 0 for the brand that is not preferred, 1 standing for the brand that is preferred by less customers while 4 and 3 standing for that brands which are most likely by customers. As we can see from the graph that LG is first preference by the customers followed by Samsung that is second most preferred by customers. While Haier is less preferred by customers D3. What are the parameters on which consumer makes his purchase decision? Parameters o o o o o o Price Packaging Product Features Brand Name Product Quality Product Design
Rank order 1 6 4 3 2 5

Rank .. .. . . . .

Parameters Price Packaging Product Features Brand Name Product Quality Product Design

43

D4.

At which visit, customer generally finalize his/her decision for buying a AC? Response:

Attributes At Fist Visit At Second Visit At Third Visit Any Other

No. of DEALERS 60 33.33 06.67 00

Visit In Which Customer Finalize their Decision
7% 0%

33%

60%

At First Visit

At Second Visit

At Third Visit

Any Other

This chart tells us about the customers willingness towards purchase of AC. As can be seen from the pie chart that 60% of the dealers said that customers finalize that their decision towards purchase of AC in first visit to showroom and 33% of dealers said customer does second visit while 7% of dealers said customers need third visit to finalize their decision. D5. Does customer come with prior knowledge/information about particulars brands of AC? f) Yes b) No Response:

ATTRIBUTES Yes No

%age of DEALERS 54 46

44

Prior Knowledge/Informations

46%

54%

Yes

No

As above pie-chart tells us about prior knowledge about ACamong the customers. As we can be seen from the pie chart that 54% of dealers say that customers come with some information or knowledge about AC while 46% of dealers say that customers doesnt have prior knowledge about AC D6.. In which season, customer mostly purchase AC? (Please Tick) Response:

Attributes Off Season Summer Season Any Other

No. of Dealers 16 84 00

45

Season in Which Customer Mostly Purchase Refrigerator

0%

16%

84%

Off Season

Summer Season

Any Other

As above pie-chart tells us about in which season customer mostly purchase AC i.e. in which season most of the sales happen. As we can be seen from the pie chart that 84% of dealers say that customers purchase AC in summer while 16% of dealers say that customers purchase refrigerators in off season.

D7.

When customers mostly visit customersr showroom for buying a AC? c) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:

Attributes During Exchange Offer During Gift Option Offer During discount Offer Any Other

%age of DEALERS 50 23 27 00

46

Customer Mostly Visit Showroom 0% 27%

50% 23%

Exchange Offer

Gift Option

Discount Offer

Any Other

D8. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer. (Rank1 = high, Rank 7 = low) i) Television ________ e) Radio ________ j) Newspapers k) Pamphlets ________ ________ f) Magazines ________ g) Internet ________

l) Trade Shows ________

Response:

Attributes Television Newspapers Pamphlets Trade Shows Radio Magazines

Rank 01 02 06 03 05 04

47

Internet

07

D9. Please rank each of the following modes of payment from 1 to 5 opted by customers. Rank 1 = the most adopted mode of payment Rank 5 = the least adopted mode of payment Modes of payment k) Cash in Full l) Installments Through Cash m) Cheque n) Installments Through Cheques o) Credit / Debit Card Rank _________ _________ _________ _________ _________

Response:
Attributes Cash in Full Installments Through Cash Cheque Installments Through Cheques Credit / Debit Card Rank 1 3 4 2 5

e Analysis of Survey<Washing Machine> e1. How long are Dealer in the retailing of Washing Machine? (Please Tick) Response:
ATTRIBUTES < 1 Year 1 < 2 Year 2 < 3 Year 3Years Above or NO. OF % AGE OF RESPONDENTS RESPONDENTS 2 4 6 8 10 20 30 40

48

NO. of RESPONDENTS

2 8 4

< 1 Year

1 < 2 Year

2 < 3 Year

3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been in retailing of Washing Machine. As can be seen from the pie chart that 60% of the dealers have been in retailing of Washing Machine for than 3 years and 40% have an experience more than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the retailing of Washing Machine for less than 1yrs. This particular aspect was considered in the research because after knowing about the work experience of different dealers we can interpret the kind of perception about customer behaviors e.2. To what extents, following brands of Washing Machine are preferred by customers? (Mark the appropriate preference level by ticking against respective brand) Response: Very High -4, High 3, Low 2, Very Low 1, Nil 0
ATTRIBUTES LG Samsung Sony Videocon RESPONSE 14 17 12 17 PREFERENCE LEVEL 3.56 3.47 2.7 3.17

49

RESPONSE

Videocon

LG

Sony

Samsung

The above given graph gives us the information regarding the preference level given to different brands by customers with preference level of 0 for the brand that is not preferred, 1 standing for the brand that is preferred by less customers while 4 and 3 standing for that brands which are most likely by customers. As we can see from the graph that Samsung is first preference by the customers followed by LG that is second most preferred by customers. While Haier is less preferred by customers e.3. What are the parameters on which consumer makes his purchase decision? Parameters o o o o o o Price Packaging Product Features Brand Name Product Quality Product Design
Rank order 1 6 4 3 2 5

Rank .. .. . . . .

Parameters Price Packaging Product Features Brand Name Product Quality Product Design

E4.

At which visit, customer generally finalize his/her decision for buying a Washing Machine?

50

Response:
Attributes At Fist Visit At Second Visit At Third Visit Any Other No. of DEALERS 60 33.33 06.67 00

Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit

At Second Visit

At Third Visit

Any Other

This chart tells us about the customers willingness towards purchase of Washing Machine. As can be seen from the pie chart that 60% of the dealers said that customers finalize that their decision towards purchase of Washing Machine in first visit to showroom and 33% of dealers said customer does second visit while 7% of dealers said customers need third visit to finalize their decision. E5. Does customer come with prior knowledge/information about particulars brands of Washing Machine? g) Yes b) No

51

Response:

ATTRIBUTES Yes No

%age of DEALERS 54 46

Prior Knowledge/Informations

46%

54%

Yes

No

As above pie-chart tells us about prior knowledge about Washing Machineamong the customers. As we can be seen from the pie chart that 54% of dealers say that customers come with some information or knowledge about Washing Machinewhile 46% of dealers say that customers doesnt have prior knowledge about Washing Machine. E6. When customers mostly visit customersr showroom for buying a Washing Machine? d) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

Response:
Attributes During Exchange Offer During Gift Option Offer During discount Offer Any Other %age of DEALERS 50 23 27 00

52

Customer Mostly Visit Showroom 0% 27%

50% 23%

Exchange Offer

Gift Option

Discount Offer

Any Other

E7. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer. (Rank1 = high, Rank 7 = low) m) Television ________ e) Radio ________ n) Newspapers o) Pamphlets ________ ________ f) Magazines ________ g) Internet ________

p) Trade Shows ________

Response:
Attributes Television Newspapers Pamphlets Trade Shows Radio Magazines Internet Rank 01 02 06 03 05 04 07

53

E8. Please rank each of the following modes of payment from 1 to 5 opted by customers. Rank 1 = the most adopted mode of payment Rank 5 = Attributes Rank the least Cash in Full 1 adopted mode of Installments Through Cash 3 payment
Cheque 4 2 5 Installments Through Cheques Credit / Debit Card

Modes of payment p) Cash in Full q) Installments Through Cash r) Cheque s) Installments Through Cheques t) Credit / Debit Card Response:

Rank _________ _________ _________ _________ _________

Intorduction: Consumer survey has been completed on four brands namely LG, Samsung, Videocon and Haier by taking four products CTV, Washing Machine, Refrigerator and AC. Customers were

administered a structured questionnaire that covered their entire relationship with the consumer durable company, including an assessment of overall attitudes and loyalty, as well as specific aspects of the relationship, starting from purchase experience, dealership, product features, quality, design and performance, after-sales service, complaint management and resolution, and advertising.

As has been highlighted above, the approach has been to measure the brands on their ability to delight their customers on the perceived quality of products and service, and not just to satisfy them. Thus, the numbers and the rankings are based on the percentage of customers who have given an excellent or a very good on the relevant parameters (which are the top two boxes on the 5-point scale of excellent, very good, good, Poor & Very poor).

54

Consumer Quality Rating Chart

Haier Vediocon Samsung LG 0%

8 13 28 16 20% Excellent

34 35

16 14 50 60 40% Very Good Good 60% Poor

17 27 12 14 80% Very Poor

25 11 7 6 3 4 100%

Consumer Features Rating Chart for CTV

Haier Vediocon Samsung LG 0%

15 12 19 23 20% Excellent

24 25

6 14 68 57 40%

30 38

25 11 13 15 5 100%

60% Good Poor

80% Very Poor

Very Good

55

Conumer After Sales Service Rating Chart For CTV

Haier Vediocon Samsung LG 0% 10% 20% 30% Excellent 40% Veryood G 50% Good 60% Poor 70% Very Poor 80% 90% 100%

Conumer Design Rating Chart

Haier Vediocon Samsung LG 0% 10% 20% 30% 40% 50% Good 60% Poor 70% Very Poor 80% 90% 100%

Excellent

Very Good

56

Refrigerator
Consumer Quality Rating Chart

Haier Vediocon Samsung LG 0% 20% Excellent 40% Very good Good 60% Poor 80% Very Poor 100%

After Sales Service Rating

Haier Vediocon Samsung LG 0% 10% 20% 30% Excellent 40% Very Good 50% Good 60% Poor 70% Very Poor 80% 90% 100%

57

Washing Machine
Consumer Rating on Quality

Haier Vediocon Samsung LG 0%

7 11 14 15

24 31 38 39 20% Excllent

14 15

30 32 43 47

25 11 5 9 80% Very Poor 100%

40% Very Good Good

60% Poor

Conumer Design Rating Chart

Haier Vediocon Samsung LG 0%

7 11 14 15

24 31 38 39 20%

14 15

30 32 43 47

25 11 5 9 80% Very Poor 100%

40% Very Good Good

60% Poor

Excellent

58

Haier

24

14

30

25

Vediocon

11

51

15

12

11

Samsung

14

41

40

LG 0%

15 20% Excellent

39 40% Very Good Good 60% Poor

47 80% Very Poor

9 100%

Haier

24

14

30

25

Vediocon

11

15

41

22

11

Samsung

14

38

48

LG 0%

10

20 20% 40% Very Good

33 60% Good Poor

9 80%

28 100%

Excellent

Very Poor

Customer experience index is the composite of his total experience with the brand, from product quality to after sales service. Loyalty index is a composite measurement of the proportion of consumers who will buy the product again and will also recommend it. The delight / dissatisfaction indices are derived by finding the mean of the experience and the loyalty indices. The delight indice measures only the people who rated their product better than 'good'. The dissatisfaction index measures only the people who rated the product as less than 'good'.

59

AC
Haier Vediocon Samsung LG 0% 8 13 20 26 20% Excellent 40% Very Good Good 34 35 50 60 60% Poor 80% Very Poor 16 14 17 27 20 25 11 7 3 14 100%

Features chart

Haier Vediocon Samsung LG 0% 20% 40% 60% 80% 100%

Excellent Very Good Good Poor Very Poor

Haier

13

34

16

17

20 Excellent Very Good Good Poor Very Poor

Vediocon

13

35

14

27

11

Samsung

23

50

20

LG 0%

24 20% 40%

53 60% 80%

20 100%

60

After Sales Service Chart

Haier Vediocon Samsung LG Rating 0%

11 13 19 31 5 20% Excellent

37 35 47

13 14

17 27 21 55

22 11 7 10 5 4 1 100%

4 40% Very Good Good 60% Poor

3 80%

Very Poor

After showing the diagram of the all four product analysis of variance is also used perform the SWOT analysis of these four brands with the help of mean and standard devialtion

CTV
Mean Std. Deviation Std. Error Quality LG 3.78 Samsung 3.93 V/C 3.12 Feature LG Samsung V/C .927 1.076 1.277 .093 .108 .128 3.598 3.72 2.869 3.962 4.4142 3.371 Lower Limit Upper Limit

3.98 4.08 2.96

.838 .567 1.41

.083 .057 .114

4.143 3.948 2.736

3.817 4.172 3.184

After Sales Services LG Samsung V/C Design LG Samsung 3.92 4.14 2.83 .762 .613 1.216 .076 .063 .121 3.771 4.016 2.592 4.068 4.264 3.068

4.16 3.63

.663 1.012

.066 .101

4.036 3.432

4.29 4

61

V/C

2.75

1.341

.134

2.642

3.012

Refrigerator
Quality LG Samsung V/C features LG Samsung V/C 6.38 3.98 3.09 2.391 .633 1.115 .239 .063 .111 5.912 3.857 2.287 6.848 4.103 3.307

3.81 .935 3.84 .663 2.97 1.414

.094 .066 .141

3.710 2.69

3.837 5.133 3.24

After Sales Services Lg Samsung v/c Design LG Samsung Videocon 3.97 3.56 3.02 3.81 3.70 3.04 .956 1.012 .875 .926 .736 .635 .096 .101 .078 .093 .074 .063 3.78 3.363 1.5 3.62 2.25 1.80 4.158 3.757 4.548 3.992 5.950 4.27

Washing Machine
Quality LG Samsung V/c Features LG Samsung V/c Design LG Samsung V/C 3.90 3.61 3.00 .678 .935 1.232. .068 .094 .123 2.57 1.77 2.759 5.232 5.452 3.241

3.90 3.24 3.39 3.90 3.61 3.39

.678 1.246 .935 .876 .325 .932

.078 .124 .094 .087 .032 .093

2.38 2.97 1.548 2.195 2.983 1.568

5.42 3.48 5.232 5.605 4.267 5.212

After Sales Services LG Samsung 2.75 3.66 1.265 2.135 .126 .213 2.504 3.243 2.99 4.077

62

V/C

2.83

1.255

.122

2.591

3.069

AC
Quality LG Samsung Haier Features LG Samsung Haier 4.07 3.89 3.24 4.07 2.87 3.04 2.115 .885 .675 2.101 1.987 1.111 .210 .098 .067 .210 .198 .111 3.653 1.97 1.93 3.653 2.482 2.823 4.48 5.81 4.35 4.48 3.25 3.257

After Sales Service LG 4.13 Samsung 3.89 Haier 3.04 Design LG Samsung Haier

2.101 .285 1.111

.210 .018 .111

3.718 3.855 2.823

4.54 3.92 3.257

4.32 3.54 3.29

.125 .675 .852

.120 .067 .085

4.084 2.2268 3.124

4.56 4.853 3.45

In order to compare the component like (Quality, Features, Desing, After Sales Service ) of four brands LG, Samsung, Videocon and Haier t-test was used. Then the total sample is devided into groups and mean standard deviation, standard error and t- value was calculated. The result from this analysis is divided into four categories. Catagories1. <CTV> The result from this category explain that, Samsung is far better than LG in terms of quality, features and after sales services. It was found that LG is only ahead in terms of design.

63

CTV Analysis OF LG With Samsung

Factors Brand Name Mean Std. Deviation Std. Error T-value

LG Quality Samsung LG Features Samsung LG Design Samsung LG ASS Samsung

3.78 3.93 3.98 4.06 4.16 3.63 3.92 4.14

.927 1.076 .838 .567 .663 1.012 .762 .613

.093 .108 .083 .057 .066 .101 .076 .063

-10

-6.92

15.14

-16.92

CTV Analysis of LG With Videocon

Factors

Brand Name Mean Std. Deviation Std. Error

T-value Significance

LG Quality Videocon LG Features Videocon LG Design Videocon LG ASS Videocon

3.78 3.12 3.98 2.96 4.16 2.75 3.92 2.83

.927 1.227 .838 1.141 .663 1.341 .762 1.216

.093 .128 .083 .141 .066 .134 .076 .121

18.85

17.586

20.73

24.22

64

Refrigerator Analysis
Differentiation LG With Samsung Factors Brand Name Mean Std. Deviation Std. Error T-value Significanc

LG 6.38 Quality Samsung 3.98 LG Features 3.81

2.391 .633 .935 .663 .926 .736 .956 1.012

.239 .063 .094 .066 .093 .074 .096 .087 12.23 5.71 .071 13.63

Samsung 3.84 LG 3.81

Design

Samsung 3.70 LG 3.97 3.56

ASS

Samsung

Refrigerator Analysis of LG with Videocon Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 6.38 Quality Videocon 3.09 LG Features 3.81

2.391 1.115 .935 1.414 .926 .635 .956 .875

.239 .111 .094 .142 .093 .063 .096 .078 32.77 25.66 17.5 25.70

Videocon 2.97 LG 3.81

Design

Videocon 3.04 LG 3.97

ASS

Videocon 3.02

65

Washing Machine
Analysis Between LG and Samsung Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 3.90 Quality Samsung 3.61 LG Features 3.90

.678 .935 .678 1.246 .876 .325 1.265

.068 .094 .078 .123 .087 .032 .126 .213 -10.70 3.22 10.15 11.15

Samsung 3.24 LG 3.90

Design

Samsung 3.61 LG 2.75 3.66 2.135

ASS

Samsung

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CONCLUSION
The result of success in todays highly charged competitive market depends not only in product innovation and level of productivity but also in hands of efficient service network with technological advancements and more adaptability towards information edge. It has been seen that companies are trying to lower the cost of production and trying to give more emphasis in creating value added customer base and customer service. It has lead to extreme innovation and cost reduction to the marketer. It is also seen during last few years that the companies, which have more, efficient, and meaningful service network and also the companies who have controlled the cost of distribution have eventually controlled the market. In order to multiply sales volume, only an efficient dealer and retail network can widen the geographical reach of a companys products. There is substantial over capacity in the industry. A shakeout is most likely and survival will depend upon technology, pricing power, efficient after sales service and to a limited extend branding power. One thing has become quite clear now, strategic marketing is critical for survival and growth. Assessment of environmental information and determining the relative significance of threats and opportunities is an important aspect carried by all the major players. For this preparation of a profile of threats and opportunities is done

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Suggestions & Recommendations

Penetration of consumer durables would be deeper in rural India if banks and financial institutions come out with liberal incentive schemes for the white goods industry segment, growth in disposable income, improving lifestyles, power availability, low running cost, and rise in temperatures. While the consumer durables market is facing slowdown due to saturation in the urban market, rural consumers should be provided with easily payable consumer finance schemes and basic services, after sales services to suit the infrastructure and the existing amenities like electricity, voltage etc. Currently, rural consumers purchase their durables from the nearest towns, leading to increased expenses due to transportation. Purchase necessarily done only during the harvest, festive and wedding seasons April to June and October to November in North India and October to February in the South, believed to be months `good for buying, should be converted to routine regular feature from the seasonal character.

Rural India that accounts for nearly 70% of the total number of households, has a 2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of scope and opportunities for the white goods industry. The urban consumer durable market for products including TV is growing annually by 7 to 10 % whereas the rural market is zooming ahead at around 25 % annually. According to survey made byindustry, the rural market is growing faster than the urban India now. The urban market is a replacement and up gradation market now.

e-business solutions integrate knowledge across the supply chain. Easy access to information on customers, products and trends can be a competitive advantage by offering better customer service, accurate product data and up to date forecasts. e-Procurement solutions provide electronics companies with access to parts catalogs and to place orders at anytime with contracted distributors. With the information collected from these systems, companies can provide the value-added services of manufacturer negotiation, rebate

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management, inventory planning and reporting. Purchasing volume can be leveraged and more emphasis can be placed on product negotiation and selection. Warehouse Management Systems are software packages that help distributors optimize their use of warehouse space and warehouse labor. In addition, warehouse systems dramatically reduce mispicks.

From the above stated discussion, it is revealed that although LG is market leader in AC, Washing Machine and Refrigerator Segment in NCR, yet LG is getting tough competition from Samsung Due to excellent design , Display of Products at store and after sales services.

REFERENCES
1. 2. Dr. Yasho V, Verma (2007), Passion The Untold Story of LG Electronics India Naresh K. Malhotra (2006), Marketing Research- An Applied Oriented

3. Hair/ Bush/ Ortinau (2006). Marketing Research 4. Philip Kotler Marketing Management 5. www.lgindia.com 6. http://www2.uiah.fi/projects/metodi 7. http://creativecommons.org/licenses/by/2.0 8. http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html: 9. http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html 10. www.winebusiness,com 11. http://www.researchandmarkets.com/reports/53984 12. www.marketingpower.com 13. www.godrej.com 14. www.haier.com 15. www.videocon.com 16. www.samsung.com

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Questionnaire PURPOSE OF STUDY

Information in the questionnaire will be: Used for academic purposes only Kept strictly confidential Q1. Which of the following brands of CTV, you are dealing in? (Please Tick) a) LG b) Samsung c) Videocon c) Haier d) Any Other (Please Specify) ________ Q2 How many models do you display for each brand?
Samsung 15 21 29 LCD PLASMA LG Haier Videocon

Q3

which are the two highest selling models of each company in CTV & their prices? Samsung - LG - Haier - Videocon- Any other- To what extents, following brands of CTV are preferred by customers? (Mark the appropriate preference level by ticking against respective brand)
Very High High Low Very Low Nil

Q4.

Brands LG Samsung Hiear Videocon Sony

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Q5 What is the price band for which the customer looks for while making purchase decision? Segment Brand Price 15 21 29 LCD ... Plasma Q6 Is customer ready to pay premium for additional features? .. Q7 What is the expected percentage of customers who are willing to pay? Premium . Low-end .. Q8. What are the parameters on which consumer makes his purchase decision? Parameters o Price o Packaging o Product Features o Brand Name o Product Quality o Product Design Q9 What is the annual estimated sales of CTV? Brand o o o o o Samsung L.G Videocon Sony Haier Rank .. .. . . . . Amount .. .. .. .. ..

Q10. Does customer come with prior knowledge/information about particulars brands of CTV? h) Yes b) No If yes, what types of information/knowledge, they have? a) About Discount Offer. b) About Exchange Offer. c) About New Features. d) Any Other (Please Specify) ___________________________ Q11. When customers mostly visit showroom for buying CTV? e) During Exchange Offer c) During discount Offer b) During Gift Option Offer d) Any Other (Please Specify )_________

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Q12. What is the most acceptable size in CTV now days? b) 14inch b) 21inch 29 inch LCD 26 PLASMA 42 32 50 40 46 52 d) Any Other (Please Specify) ___________________________ Q13. Below are different modes of promotion. Please rank following modes from 1 to 7, on the basis of their influence on customer. (Rank1 = high, Rank 7 = low) q) Television r) Newspapers s) Pamphlets ________ ________ ________ e) Radio ________

f) Magazines ________ g) Internet ________

t) Trade Shows ________ Q14. What different complaints are faced by you from your customer? (Mark to appropriate one)
Brand Complaints Bad Picture quality Problem with Picture tube High Electricity Consumption Fading of Colour LG Samsung Haier Videocon Sony

Q15. Which Brand you Recommend and why? PERSONAL PROFILE Dealers Name: ____________________________ Address: ____________________________ _____________________________ _____________________________ _____________________________ Ph. No.:____________________________ Date:

Sign/ Stamp

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