Nandini Project

A study on Marketing Mix of LG TV with reference to M/s Adhishwara Electro world Private Limited.
Tumkur
CHAPTER- I
Introduction
Marketing is the performance of business activities that directed to
the flow of goods and services from the producer to the consumer
- American Marketing Association
In 21st Century marketing is becoming more attractive at the company,
State, National and Global level. In the early days there was no difference
between selling and marketing. But today the difference between these two
forms has been clearly made. Marketing as a Macro and Micro process
brings home certain benefits to the society and individual firms. Many
organizations have involved in marketing activities to satisfy the needs and
wants of a group of customers.
Now-a-days marketing is not considered as a mere physical process or
set of activities connected with the exchange of goods. It is regarded as a
philosophy of business. It is concerned with creation of customers. It
includes all those activities connected with identifying the need of the
consumers and then, organizing the business according to meet the needs of
the consumers.
Marketing is a comprehensive term and it includes all resources and
set of activities necessary to direct and facilitate the flow of goods and
services from producer to consumer in the process of distribution. So
promotion is one of the activities of the marketing to push forward or
advance an idea in such a way as to gain its acceptance and approval.
Department of Studies and Research in Business Administration
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A study on Marketing Mix of LG TV with reference to M/s Adhishwara Electro world Private Limited. Tumkur
IMPORTANCE OF MARKETING
Marketing is everywhere. Formally or informally, people and
organizations engage in a vast number of activities which could be called as
marketing. Its wide range of activities continuously: affects our lifestyles. It
is embedded in everything we do - from the food we eat, the clothes we
wear, the housing that shelter us, the comforts and amenities we enjoy in our
home as well as at work places, to each and every activity which happens in
our life is connected to marketing directly or indirectly. Marketing is that
activity which avails goods and services at our doorstep, and meets our
varied and innumerable needs and wants.
Marketing nowadays has achieved social importance also because it is
entrusted with the task of creation and delivery of standard of living to
society. The modern marketing concept does not consider marketing as a
group of business activities connected to the exchange of goods and services
but also works in improving the standard of living. The essence of modern
marketing concept is the customer orientation backed by integrated
marketing aimed at generating customer satisfaction as the key to satisfying
the organizational goals.
Good marketing is also very important for the marketer as, the
financial success of the firm depends on the marketing abilities of the firm.
Good marketing is no accident, but a result of careful planning and
execution. Marketing is both art as well as science there is a constant
tension between the formulated side of marketing and the creative side.
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CONCEPT OF MARKETING
Marketing can be defined as a total system of interacting business
activities designed to plan price, promote and distribute want satisfying
products and services to present the potential consumers.
Marketing is a management function which organizes and directs all
those activities involved in assessing and converting customer purchasing
power in to effective demand for a specific product or service to final
consumer. Thus marketing in specific is a total function which is concerned
with Product planning, selling, advertising and sales promotions, market
research, after sales services and social responsibilities.
MARKETING MIX
A THEORETICAL BACKGROUND
Marketing:
Philip Kotler defines Marketing as The set of human activities
directed at facilitating and consummating exchange. The essence of
Marketing is exchange of products and the transaction is to satisfy human
needs and wants. All business activities helping and promoting the exchange
function are included in Marketing.
Marketing Mix :
Marketing Mix is a term generally used to denote a particular
combination of marketing variable which are controllable by an enterprise
and which are used to appeal to a particular market segment.
Market Mix is a blend of four variables namely product, price,
promotion and physical distribution popularly known as 4Ps.
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1) Product:
According to Philip Kotler, A product is anything that can be offered
to a market for attention satisfaction and consumption that might satisfy a
want or need. According to Alderson, Product is a bundle of utilities
consisting of various product features and accompanying services.
Essential Features of Product:
1. Product has the characteristics of tangibility.
2. Product may be intangible in the form of a service.
3. Product may have associated attributes to facilitate its identification
and acceptance by buyers.
4. Product should have an exchange value.
5. Product should have the ability to deliver value satisfaction to the
consumers for whom these are intended.
6. Product should have the attribute of satisfying a business need.
PRODUCT RELATED STRATEGIES
Branding:
American Marketing Association defines a brand as, a name, term,
symbol or design or a combination of them which is intended to identify the
goods or services of one seller and to differentiate them from those of the
competitors.
Objects of Branding
1. It helps in product identification and gives distinctive to a product.
2. Indirectly, it denotes quality or standard of product.
3. It estimates imitation.
4. It helps in advertising and packaging activities.
5. It helps to create and sustain brand loyalty to a particular product.
6. It helps in price differentiation of product.
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7. It facilitates in making a choice.

8. It is essential for competition, because without a means for
identification, there is no way of making a choice.
Advantage of Brand Name
Advantages to manufacturers
1) Product differentiation
Product differentiation by branding enables the manufacturers to
establish his own price and eliminate price competition to some extent.
2) Brand Image
The seller can build up a bright image of his product around the brand.
A brand image is built up through the years by the quality of products
produced, services offered and the companys reputation, policies and
marketing efforts.
3) Creation of Market:
Ever increasing competition leads to branding of product by a
manufacturer to face competition and create exclusive market for the
product.
4) Advertisement and publicity:
Branding helps advertising, display and sales promotion, branding and
packaging go hand to hand.
5) Brand Preference
Branding not only gives separate identity and easy recognition to the
product. But it also creates special brand preference and brand loyalty.
6) Brand patronage
Development of loyal customers, acting as talking advertisement and
repeat buyers if the greatest reason in favor of branding.
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7) Expanding the product mix

Many successful multi product firms today began with the single
product whose success created on umbrella under which additional product
could be launched with the less risk.
8) Market control
Brand reputation ensures some kind of market control in
Advantages to Customer
1. Customers have an assurance of quality and consistency in the product
attributes being offered.
2. Certain brands provide status and psychological satisfaction to the
consumers.
3. There is considerable saving of times and energy in shopping for
goods.
4. Rapid sales turnover assures fresh products due to frequent
replacement of stock with the retailer.
Advantages of Distributors
1. Widely popular brands case the selling process.
2. IT helps in advertising and sales promotion program.
3. The distributors can easily find out the quick moving products.
Limitations of Brand name
1. Brand imposes responsibility for maintaining consistent quality and
delivering value satisfaction
2. Some products by their very nature do not lend themselves to
Branding.
3. Building up brand recognition and loyalty are very expensive.
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.2) Price
Price can be defined as, The amount charged for the product or
service including any warranties or guarantees, delivery, services or other
items that are part of the conditions of sale and are not paid for separately.
Objectives of pricing:
1. Maximum short term and longrun profits.
2. Stabilise market
3. Maintain loyalty of middlemen and get their sales support.
4. Enhance image of firm and its offerings.
5. Discourage entrants.
6. Help in the sale of weak items in the line.
7. Be considered trust worthy and reliable by rivals
8. Create interest and excitement about the item.
9. Be regarded as fair by customers.
Factors influencing pricing
1. Internal factors
Internal factors are generally within the control of the organization.
They are also referred to as built-in-factors that affect the price.
a. Cost
The most deciding factor is the cost of production. Whatever the cost
of production, there is a price at which the consumer is willing to buy.
Further more, finding the cost of production is not so simple today, on
account of the various lines of production as well as distributing the over
head costs among such qualities of products.
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b. Objectives
Many companies have established marketing goals or objectives and
pricing contributes its share in achieving such goals. They are together
termed as pricing policies. Pricing policies may be classified into:
a) Target rate of return
b) Stability in prices
c) Maintenance or increase of the share of the market
d) Meeting or preventing competition
e) Maximising profits.
2) External factors
External factors are generally beyond the perfect control of an
organization, but they have to be considered in deciding the price.
a) Demand
Not only the total demand be determined, but also the rate which this
demand must be met.
b) Competition
To avoid competitive pricing, a firm may decide that its product may
be sufficiently different from that of the others this is achieved through
methods of advertising, branding, etc. Prestige pricing and price cutting are
followed to avoid competition.
c) Distribution channels
There is a middlemen working in the channel of distribution between
the manufacturer and the consumer. Each one of them has to be compensated
for the services rendered. This compensation must be included in the
ultimate price, the consumer pays.
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d) Legal restrictions
Government interference such as control of prices, levying of tax tech
are other consideration which also affect the pricing of products.
KINDS OF PRICING
Firms can choose various kinds of pricing for their products,. These
are;
i) Odd Pricing
ii) Customary Pricing
iii) Prestige pricing
iv) Prestige pricing
v) Geographical pricing
vi) Penetrating pricing
vii) Skimming pricing and so on.
3) Promotion
Promotion is defined as the co-ordinated self initiated efforts to
establish channels of information and persuation tool facilitate or faster the
sale of goods or services, or the acceptance of ideas or points of view.
Purpose of promotion
1. To communicate with customers regarding all details utilities and
attributes of the customers.
2. To convince the customers.
3. To complete with the competitors
Promotion Mix includes four ingredients namely,
1. Advertising
2. Publicity
3. Persona selling
4. All forms of sales promotion
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1. Advertising
NOTHING EXCEPT THE MINT CAN MAKE MONEY
WITHOUT ADVERTISING. Advertising is defined as, any paid form of
nonpersonal presentation and promotion of ideas, goods or services by an
identified sponsor.
a) Advertising introduces existing and new company products to
the public.
b) It enhances potential buyers responses to the company and its
offering.
c) It makes a product stand against its competitors.
d) It builds up reputation for the company goods and services.
Role of Advertising
a) Stimulates demand
b) Strengthens other components
c) Develop brand preference
d) Increase sales volume
e) Cuts costs
f) Lower prices
g) Increase profits
h) Competitive weapons
i) Enhances consumer satisfaction
j) Makes demarketing possible
Constraints of Advertising
a) No individual adaptation
b) More wasted effort
c) No regulation
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d) Expensive
e) Limited product differentiation
f) Subdued impact
g) Difficult evaluation
Advertising Campaign
Advertising campaign is defined as a planned co-ordinated series of
promotional efforts build around a central theme and designed to reach a
specified goal.
Stages in Advertising campaign
a) Identifying and analyzing advertising target
b) Determining the advertising objectives
c) Creating advertising platforms
d) Determining the advertising appropriation
e) Selecting the advertising message
f) Evaluating the effectiveness of advertising
g) Organising advertising campaign
2) Publicity
It is a non-personal stimulation of demand for a product, service or a
business unit by placing publication or obtaining favorable presentation of it
upon radio, television or stage that is not paid for by the sponsor.
Pubic Relations pubic is also called marketing public relations.
Publicity is not paid for by the organization. Publicity comes from news
reporters, columnists and journalist people. It comes to the receiver as the
truth rather than as a commercial.
3) Personal selling
Personal selling is a marketing process with which consumers are
personally persuaded to buy goods and services offered by manufacturer.
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The act of salesmanship is a human mind to convince the customer to buy

the product.
The national salesmens trading society of USA defined salesmanship
as the ability to persuade people to buy goods or services at a profit to the
seller and with the benefits to the buyer.
Features of salesmanship
1. Salesmanship is persuation
2. Creative art
3. Salesmanship aims to providing service to the buyer
4. Salesmanship aims at mutual benefits
5. Salesmanship is an educational process
6. Provides knowledge
7. It relates to the establishment of sound and lasting relations
between the salesman and his customers
8. It is an activity of one human mind influencing another human
mind
4) All forms of sales promotion
Sales promotion includes those of marketing activities, other than
personal selling, advertising and publicity that stimulate consumer
purchasing and dealer effectiveness, such as displays, shows and exhibitions,
demonstrations and various non recurring selling efforts not in the ordinary
routine.
The whole idea behind sales promotion is to bring the name of product
and that of the manufacturer constantly before whole salers, retailers and
consumers in order to stimulate their interest in the products.
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OBJECTIVES OF SALES PROMOTIONS

i) To increase the buying response by ultimate customer
ii) To increase selling efforts and intensity by dealers, retailers and sales
personnel.
iii) Improving the market share
iv) Increasing usage rate by present customers
v) Maintaining customer patronage and brand loyalty
vi) Creating talking point for sales person
vii) Providing information
viii) Increase in sales
LIMITATIONS OF SALES PROMOTION
a) Sales promotions are ineffective, when established brands have a
declining market.
b) They are non-recurring in their use
c) Advertising agencies give low status to sales promotion and gradually
appoint their junior staff to train them for sales more creative jobs.
d) Sales promotion is supplementary devices to supplement selling
efforts of other promotion tools.
4) Physical distribution
Physical distribution is a term employed in manufacturing and
commerce to describe the broad range of activities concerned with efficient
movement of finished product from the end of production line to the
consumer.
Objectives of physical distribution
1. Customer satisfaction
2. profit maximisation
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3. Minimising inventory level

4. Speedier transportation
5. Minimum handling
Function of physical distribution
1. Creation of time and place utilities
2. Improvement in customer services
3. Reduction in distribution cost
4. Larger stabilization
Why managerial attention to physical distribution is necessary?
Some of the recent developments mentioned below necessitate aspect
of marketing
1. Product proliferation
2. Increasing competition
3. Pressure for lower prices
4. Inform delivered pricing
5. Short order economy
6. Increased distribution costs
7. Government regulation of prices
Sales Analysis
Sales analysis is a term used to mean analysis of actual sales results.
Sales analysis usually are made on one or more of four bases territory,
product and customer and order size. The objective of these analysis is to
find the areas of strength and weakness, the product that are producing the
greatest and the least volume, the customer who furnish the most productive
sales results and the size of order that is more profitable. Such information
enables a company to concentrate its sales efforts where they will bring the
greatest return.
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Sales analysis by territory

To invoice usually the basic sales record. It contains the following data
essential to sales analysis:
1. Customers name
2. Customers location
3. Product sold
4. Quality of each item sold
5. Price per unit
6. Total sales per product
7. Total rupees per order
In some cases it may be considerable to add further information about
the customer such as size, type of business, user or wholesaler, chain or
independent and so on.
The first to decide what geographical control unit to use. The country
is the typical choice because (a) countries can be combined to form larger
units such as sales territories and (b) market potentials are usually developed
on a country basis since it is the smallest unit for which many items of data
are available. Thus, it will be possible to compare actual sales in a country
with the countrys market potential.
Both sales and market potential are then tabulated by territorial units
those territories in which sales fall below potential can be given special
attention. Is competition unusually strong in these areas? Has less selling
effort been put there? Is the sale force weak? Studies of these points will
help the company bloster its weak areas. Sales efforts can be concentrated
where they will the most good.
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Sales analysis by product

Over the years a companys product line tends to become
overcrowded unless strong continuing action to eliminate those items which
no longer are profitable. By eliminating weak products and concentrating on
strong ones a company can often increase its profits substantially.
As in the analysis territories, deciding what product units to in the
product analysis is a problem. AT one extreme a firm might classify products
only by such general groupings as industrial and consumer. AT the other
extreme, a firm might classify separately each product variation by color,
size and so on. Sales of the more general grouping of products may be easier
to analyze, but the poor sales performance of certain individual products may
go unnoticed due to the combining of a number of products into one group.
Analysis by detailed breakdowns is more expensive, but is more apt to show
the strong and weak products in a way that will permit constructive action.
A product decision must take into account such variables as market
share trends, contribution margins, effect of volume on product profitability
and degree of product complementarily with other items in the line. Analysis
have constructed computerized models which take the above types of data
into account. The goal is to assist management in its product deletion
decisions. It does so by dealing with the total product line Data inputs
consists of standard cost accounting and marketing data, while the output
show the value of each product in the line. Such models are particularly of
value to multi product firms where some of degree of complementary exists
between products and where individual products vary substantially in their
projected growth sales.
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Product analysis may be particularly effective when combined with

territory analysis. Such a study may show that, while territory A is above
quota in total sales, it is very weak in sales of product 2. Combined analysis
of this type makes it easier to spot the places where action should be taken.
Sales analysis by customer
Procedure similar to those described above may be used to analyze
sales by customers. Such analysis typically show that a relatively small
percentage of customers account for a large percentage of sales. Distribution
cost accounting should then be applied to determine the smallest customer it
is profitable to keep on the books. By dropping customers smaller than this
size, the firm can improve its profitability. In many cases analysis of this sort
combined with a study of sales calls will show that time is spent on the small
accounts as on the large shifting some of that sales effort to the larger
accounts may well increase sales.
Analysis by customer combined with analysis by territory and product
may be particularly helpful in pin pointing weak spots in the sales program.
Some salesman may not be developing sales with a certain type of customer
or product that has proven profitable in other territories. When this is
discovered, remedial action can be taken because the precise point of
weakness is known.
Sales analysis by size of order
Sales analysis by order may identify orders (and customers) that are
not profitable. For example certain customers may place orders, each for a
relatively small quantity. IF the customers also require a great deal of service
and attention by the sales representatives, the cost of securing and handling
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each order may be high. If cost accounting data are available, it is possible to
identify if such orders are incurring the loss. This analysis may be extended
to find territories, products and customers where small orders are prevalent.
This may lead to setting a minimum order size, to training sales
representatives to develop larger orders or to dropping certain territories,
products or customers. Dunne and Wolk report the application of such
analysis to a small appliance manufacture which incurred a loss of $ 8,695
on sales of almost $3 million. Sales were analysed by type of product, by
geographic region, by type of customer and by size of order. The results
showed that one product yielded about 50% more profit contribution than the
companys other product. They also showed that the eastern region yielded
about 25% more profit contribution than the eastern region. Most important,
however, was that the total contribution than the total four-way analysis (by
product, region, customer and size of order) showed the company was
particularly weak in the sale of one product (blenders) to one type customer
(wholesaler) in one region (western).
Distribution cost analysis
This type of analysis employs various combinations of the sales
analysis discussed above. IT is used to determine the costs associated with
specified marketing activities and to determine the profitability of different
market segments, products and customer classes. The use of this technique
can produce dramatic results. In one case profits were increased 300%, and
in another marketing expenses were cut from 22.8 to 11.5% of sales and a
net loss of 2.9% was turned into a profit of 15%. The latter was
accomplished by shifting some marketing efforts from the 8% of the
companys accounts that had unprofitable.
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More and more firms are using some form of contribution accounting
to determine the profitability of products, channel units and market
segments. Such a method first assigns al variable marketing and production
costs to a product. Variable production costs are direct labor and materials.
The variable marketing costs are due to credit, shipping, sales commissions,
merchandising and advertising. Some firms go further and allocate certain
fixed joint costs, but this should only be done when one can find a logical
relationship between the assigned expenditure and the product sales. All
questionable costs should be treated as overhead. While overhead must
eventually be absorbed, the contribution method makes it more clear what
will be gained or lost by adding or dropping a product or a customer.
Ultimately, the objectives of any distribution cost analysis and the
computation of potentials is to help the marketing manager make better
decisions regarding how to allocate the firms marketing resources. Since the
potential in area is a function of the number of worth of prospective
customers and since the cost analysis relates cost to scale of buying, the
logical next step is to undertake a marginal analysis to determine which
accounts with in which areas represent the most likely units on which to
exert additional pressure.
Since the response to marketing effort will vary by customer and by
product, marketing managers must decide how their marketing efforts will be
allocated among customers and products. Thus, marketing managers must
have knowledge of each major account, including its potential by product.
They must also know if they are getting or lesses share of an accounts
potential and whether they have been applying increasing or decreasing
amounts of marketing effort to the account. Through types of analysis or
through experiments-managers can estimate the likely results of applying
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additional marketing efforts to accounts of certain sizes, given the share of

the accounts potential that has already been obtained by firm.
HISTORY of television
The group was formed through the merger of two Korean companies, LakHui (pronounced "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 product were sold under the brand
name of Gold Star. In January 2009 LG was able to buy the domain
name LG.com for low six figures USD.
In 1994, Gold Star gained sponsorship from The 3DO Company to make the
first The 3DO Interactive Multiplayers. In 1995, Gold Star was renamed LG
Electronics, and acquired the US electronics company Zenith. LG Solar
Energy is a subsidiary formed in 2007 to allow LG Scheme to supply
politico to LG Electronics for production of solar cells. In 2008, LG took its
first dive into the solar panel manufacturing pool, as it announced a
preliminary deal to form a joint venture with Cinergy. Under the deal, set to
be completed by year's end, LG would acquire a 75 percent stake in
Cinergys Frankfurt solar-panel plant. LG has produced camcorders called
ARTCAM and DSLRs.
By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand
growth of 14%.Its display manufacturing affiliate, LG Display, is now the
world's largest plasma panel manufacturer.
On December 5, 2012, the antitrust regulators of European fined LG
Electronics and several other major companies for fixing prices of TV
cathode-ray tubes in two cartels lasting nearly a decade.
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MARKET TRENDS
Upto 1989
The T.V. (especially CTV) segment was the driving force behind the
consumer electronics boom of the mid 80s. Consumer electronics
production in India began in the early 70s with transistor radios, tape
recorders, two-in-one and music systems (essentially audio products). Black
and White TVs were also manufactured. In 1982, the assembly of CTVs
began on account of the Asian games leading to a boom.
During the early 80s there were no dominant manufacturers of TVs.
Crown Weston and Texas were the market leaders in the north; Dyanora and
Nalco were leading companies in the West ad Ecil and Dynavision in the
south. Products sold by SEDCs (State Electronics Development
Corporation) had a market into the respective states.
In the mid 80s, there was rapid proliferation of small scale units on
account of total delicernsing of this sector. With the proliferation of CTV
manufacturers the growth was greater than 30 between 1984 and 989. After
the boom of the mid 80s the peak level of CTV production at 1.3 million
units was reached in 1989. Between 1985 and 1990 the initial years
witnessed a healthy demand growth due to rising GDP. This got eroded on
account of rising inflation and the depreciating rupees in the later period.
1989-1992
There was a slump in demand with sales plummeting till 1992. 199192 saw the B & W TV, CTV and VCR/VCP market sales plummeting.
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Causes of the demand recession of 1989-1992

High prices due to high excise. Sales and other taxes (excise duties
had rises from Rs. 900 for a 20 set in 1984 to Rs. 3300 in 1988-89
while the end product prices rises from Rs. 9,000 to 16,000-17,000 in
the same period)
Devaluation of the rupees in 1991 (leading to high costs of imports in
this import intensive industry. Thus raising prices).
Temporary saturation of initial pen up demand.
Depressed state of the economy as a whole (with high inflation and
low growth. Leading to low disposable incomes and hence low
purchasing power).
After 1992
The revival of demand began in 1993 on account of
Rationalization of duty structure leading to lowering of prices (the
prices have fallen in both real and nominal terms (approximately 1%
over two year with reduction in import duties, excise and sales taxes).
Stable rupee, higher GDP growth and relatively lower inflation and
Proliferation of cable and satellite channels.
MARKETING MIX OF LG T.V.

(MIRC ELECTRONIC LIMITED)
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Marketing Mix of LG (MIRC Ltd.)

To achieve the desired target the companies have formulated various
marketing mix. The marketing mix of LG (MIRC Ltd.) is the combination of
4Ps or components which completes the marketing system namely.
1. Product
2. Price
3. Promotion
4. Physical distribution
1. Product
LG TV has upgraded its products to meet specific demands of rural
urban and semi urban customers. By introducing various models which meet
the exact demand as desired by each segment like clarity size remote system
applications, colors, child lock, volume lock, tunning lock etc. LG ltd., has
the following latest models have its unique feature
PRODUCT RELATED STRATEGIES

Branding
LG electronics produces all its TV which are branded under the name
LG on different models names like SMART series, KY thunder, LG Black,
CANDY. Because the company understood from the market trend that
maximum part of the market believes in branded products.
Packaging
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The packaging activities followed by LG TV is that the TVSs will be

packed by card board box from outside and from inside it is covered by
thermocol. The package is useful in following ways.
1. Package is protective against damages as it packed from thermocol
perfectly inside the box.
2. Packing being light weight which helps to reduce the cost of
production to certain extent.
3. The packing contains the details about the model of the TV.
Functions of packaging
1. Product protection
2. Containment function
3. Identification
4. Convenience
5. Promotional appeal
Labeling
LG is undertaking informative type of labeling the LG product possess
the following information:
1. Trade name
2. Name of the company
3. Address of the company
Price
Price is important element of the marketing mix. As it influences the
perception and helps in product or brand positioning, variations in price can
be made much faster than in any other variable of marketing mix.
PRICING STRATEGIES OF LG TV
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LG TV is widely using the following pricing strategies in pricing its

products.
1. Demand base pricing
2. Competition based pricing
3. Market based pricing
1. Demand base pricing
In this pricing strategy the management does not consider cost it is left
to demand of the product to determine the price. Pricing may be done under
this strategy in any of the following manner.
1. Based on test marketing
2. Based on fore cast
2. Competition based pricing
It is strategy where a company attempts to maintain its price more or
less or par with its competitors. Irrespective of its individual cost and
demand situations. This method is usually adopted when market is highly
competitive and products are homogeneous and not capable of
differentiation.
3. Market based pricing
a) Skimming price strategy
This strategy involves selling a new product at a very high price
initially and to reduce the price gradually as the competitors enter the
market.
This approach of pricing is an experimental search for the right price
and it may result in a market determined price.
Advantages of skim the cream pricing as per LG TV
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1. It is advantageous in case of Quality products and high value items.

2. High initial price can provide a large margin which generates cash
flow easily.
3. High initial price can keep demand within the limit of the cost
productive capacity.
Disadvantages
1. It attracts competition
2. If the competitors can easily access then this policy is risky.
Penetration pricing strategy
This pricing strategy is intended to help the product. Penetration into
market to hold a position. This can be done only by adopting a low price in
the initial period (on till such time the product is finally accepted by
customers).
Advantages
This approach is advantageous under following circumstances:
1. Mass-production provides substantial reduction in the unit cost of
production.
2. Product has greater elasticity of demand.
3. Any strong competition is expected soon after product enters the
market.
4. When maximum of the populations belong to the middle and lower
income group.
Disadvantages
1. Customers may reject the product as they are attracted towards
prestige pricing strategy.
2. Potential consumers are lost.
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3. Pay back is longer on a new product and low profit returns.

4. Product may have very short life cycle.
5. Difficult to increase the prices substantially as the initial price is very
low
Pricing Objectives of LG TV
1. To maximize current profits.
2. To increase the market share.
3. To increase market demand of the products.
4. To decrease the cost of raw materials.
5. To sustain competition.
6. To reduce the cost of raw materials.
7. Pricing is done so as to match the pricing of near competitors pricing
strategy.
8. To increase sales growth.
9. To increase present profits.
10.Attaining market leadership in terms of sales.
Price competitors of LG TV
1. BPL
2. Philips
3. Videocon
4. LG
5. Samsung
3. Promotion
Page 27
Promotion is the spoke in the wheel of marketing mix without which

marketing strategy is incomplete. It helps the product to reach the target
consumers.
Promotion mix includes the following ingredients
1. Advertisements
2. Sales promotion
3. Personal selling
4. publicity
Advertising
Advertising does the make-up work to the product by presenting it to
the customer in an attractive manner and it helps to customer to remember
about the product feature which leads to buying decision.
Media of advertising
1. Print media
a) Press advertisement
b) Newspapers
c) Magazines and journals
2. Outdoor (on manual advertisement)
a) Wall paints
b) Glow sign boards
c) Poster
3. Direct mail advertisement
a) Circular
b) Business reply envelops and cards
c) Price lists
Page 28
d) Catalogues
e) Booklets
4. Electronic media
a) Television
b) Internet
Advertisement process of LG T.V.
1. Newspaper and magazines
LG is advertising its products form time to time on all nation-wide
circulated newspapers, periodicals. The advertisement is given regularly and
at the launch of new model TVs and at the special occasions like festivals,
world cup of football/cricket.new year as these events witness the greater
purchasing power of the consumers.
2. Television
LG advertising its TVs on television about 20-25 seconds before and
in middle of popular serials and movies as it can display product to larger
portion of the population.
3. Other methods of mass advertising campaign
LG is using the following media advertising
a) Wall paints
b) Posters
c) Glow sign boards
These methods are used usually in main road, traffic signals and on
big building so that it can appeal to mass.
Advertisement function of LG T V
LG T V is performing the following functions by way of advertising
its products.
1. For the launch of new product
Page 29
2. Meeting competition
3. Generating demand
4. Maximizing sales growth
5. To help to dealer to sell
Methods adopted for promotion by LG
Methods adopted for dealer promotion
1. Price deals (on special discounts)
Special discounts are allowed by LG to dealer over and above the
regular discounts for purchase over a specified amount.
2. Commission
Dealer will get fair amount of commission of 608% of commission.
3. Free delivery of goods
To LG TV dispatch of the goods from the factory to different dealers
through depot at various states. LG has got annual rate contract from
transportation contracts.
4. Credit provisions to dealers
LG allows a maximum credit period of 20 days and for cash payment
it allows 3% cash discounts.
Methods adopted for consumer promotion
1. Customer discount
LG is offering customers discount on the products of the company on
special occasions.
2. After sales service
LG gives after sales service to its customer if there is any technical
defect by providing the service of service engineer.
3. Finance Schemes
Page 30
Company made it easy for the consumers to buy the LG because TV

has tied up with leading financier like ICICI, Citifinanciers, HDFC Bank,
Birla Global Finance to give customers but financial schemes under the head
like 12 months finance option, 18 months option. Double zero offer, 16
months finance option. 100% finance will be given and they will charge only
2% service charges.
4. Physical Distribution
The marketing process is not completed simply by creating a product
and by creating a customer by aggressive salesmanship. Delivering the
products to customers. AT the right time and place is an equally important
function in marketing the vital function is referred to as physical distribution.
Distribution policy
Any manufacturing concern will have various channel of distribution
to make the product move from the manufacturer to the ultimate consumer s
shown below.
Page 31
Manufacturer
consumer
Manufacturer
Retailer
Manufacturer
Wholesaler
Manufacture
Agent
Consumer
Retailer
Wholesaler
Retailer
Consumer
Consumer
Channels of distribution of LG
Area sales office/Depot/Godown
Authorised dealers
Sub dealers
Customers
Functions of LG distribution channels
1. Creation of time and place utility
2. Improvement in customer service
3. Reduction in distribution cost
4. Larger market share
5. Price stability
6. Minimising inventory level
7. Speedier transportation
8. Minimum handling
Page 32
COMPANY PROFILE
Background & Company Information
MIRC Electronics is among the leading television manufacturer in the
country. It sells color televisions (CTV) under its LG brand, which enjoys a
premium image. The company, whose CTV plant at Wada in Maharashtra is
among the largest in the country, has a 12% share of the CTV market and is
present in all price segments of this market. It also dominates the black and
white television market, especially in the rural areas, with a 11.2% market
share here. MIRC has also emerged as a large exporter of CTVs to markets
like the Gulf region, Africa and neighboring South Asian countries like
Bangladesh, Nepal and Sri Lanka. The company has a small presence in the
video cassette recorder and audio equipment segments besides trading in
washing machines sourced from original equipment manufacturers.
ORGANISATION STRUCTURE
BOARD OF DIRECTORS
LG Electronics' Board of Directors maintains independence from its

management and major shareholders. Currently, the Board has a total of
seven directors, four of whom are outside directors. To ensure that external
directors are appointed fairly and independently, the "External Director
Recommendation Committee," comprised of one in-house director and one
external director, nominates external directors following close examination
of their qualifications. These outside directors are then voted on at the next
shareholders' meeting.
Page 33
COMMITTEES
The BOD is supported by three Board Committees. They are the Audit
Committee, the Outside Director Candidate Recommendation Committee
and the Management Committee. The Audit Committee consists of three
Outside Directors, and is responsible for examining corporate financial
records and accounting to ensure compliance with the accounting laws and
transparency. The Management Committee reviews and determines the
agendas delegated by the BOD and ordinary management activities. In 2010,
the Management Committee reviewed a total of 52 agendas.
EVALUATION AND COMPENSATION
Compensation for the BOD members is made within regulations pertaining
to BOD compensation that has been approved at the General Shareholder's
Meeting. The evaluation of management and executives of LGE is held
annually. Top management and executives are evaluated to determine
whether they have set and achieved challenging goals, whether their job
objectives composed of quantitative and non-quantitative factors were
achieved, as well as their capability through fair and objective process, and
appropriate compensation corresponding to the outcome of the evaluation is
determined.
DIRECTOR
Bon-Joon Koo
Vice Chairman & CEO, LG Electronics Inside Director
View Biography
Page 34
David Jung
CFO of LG Electronics(Executive Vice President)Inside Director
Yu-Sig Kang
CEO of LG Corp.(Vice Chairman) Non-executive Director
Sang-Hee Kim
Lawyer, Outside Director
Chang-Woo Lee
Professor Seoul National University Outside Director
Kyu-Min Lee
Advisor SK Research Institute for Super Management Outside Director
Chong-Nam Chu
AUDIT COMMITTEE
To ensure complete independence from the companys management and
major shareholders, the Audit Committee is composed of three outside
directors. The Committee's role is to examine various financial reports and
enhance managerial transparency and fairness as supervisors. In addition, the
committee members approve the appointment of outside auditors only after
careful review of the candidates' professionalism, independence, reputation,
capability, ability to audit international businesses, as well as possibilities of
conflict of interest associated with the Company.
Page 35
Chang-Woo Lee
Kyu-Min Lee
Advisor SK Research Institute for Super Management Outside Director
sang-Hee Kim
Lawyer, Outside Director
TYPES OF LG TV PRODUCTS
LG CINEMA 3D Smart TV
LGs CINEMA 3D Smart TV brings greater immersion to the 3D home
entertainment experience. The CINEMA SCREEN Design has reduced the
bezel to 1mm, creating a more optimal and comfortable environment for
immersive 3D viewing. Based on LGs own NetCast platform, LGs Smart
TV ecosystem has grown in scale and sophistication. Featuring over 1,200
apps and rapidly growing 3D content available through premium content
services, LGs Smart TV provides the most comprehensive, yet easy-to-use,
home entertainment experience possible.
LG Pentouch Smart TV
LG Pentouch Smart TV integrates a variety of sophisticated technologies
Page 36
into a single plasma TV, delivering a thoroughly interactive Smart TV with a

wide range of utility, from entertainment and education to business. Its builtin Pentouch function (Pentouch Plus) allows you to use its Pentouch
software without a PC, and users can write, draw, or color on the TV screen
using the Magic Pen. This innovative product also comes with LG's Magic
Remote, which allows for easy and convenient control of its Smart TV
functions.
LG Monitors
LG Monitors, built with the IPS (In-Plane Switching) panel, provides a
remarkably advanced viewing experience. Synergizing with the
advantages of its IPS panel, 3D contents can be enjoyed in greater
depth, color and brightness at a wider viewing angle. Its CINEMA
SCREEN design represents an advance in design as well, owing to
technology and artistic inspiration. LG Monitors are also equipped with
MHL, Wi Di, HDMI, USB quick play and Smart Share
Vision
Our vision to be number one brand in our chosen fields and to be
recognized as one of the most prestigious organizations evoking pride of
ownership by offering unmatched quality products through innovation,
speed, flexibility and empowered employees.
Page 37
CHAPTER II
REVIEW OF LITERATURE
Boonghee Yoo
St. Cloud State University
Naveen Donthu
Georgia State University
Sungho Lee
University of Seoul
This study explores the relationships between selected marketing mix
elements and the creation of brand equity. The authors propose a conceptual
framework in which marketing elements are related to the dimensions of
brand equity, that is, perceived quality, brand loyalty, and brand associations
combined with brand awareness. These dimensions are then related to brand
equity. The empirical tests using a structural equation model support the
research hypotheses. The results show that frequent price promotions, such
as price deals, are related to low brand equity, whereas high advertising
spending, high price, good store image, and high distribution intensity are
related to high brand equity. Brand equity is the incremental utility or value
added to a product by its brand name, such as
Coke, Kodak, Levis, and Nike (Farquhar, Han, and Ijiri 1991;
Kamakura and Russell 1993; Park and Srinivasan 1994; Rangaswamy,
Burke, and Oliva 1993).
Page 38
Accordingly, research has suggested that brand equity can be estimated by

subtracting the utility of physical attributes of the product from the total
utility of a brand. As a substantial asset to the company, brand equity
increases cash flow to the business (Simon and Sullivan 1993). From a
behavioral viewpoint, brand equity is critically important to make points of
differentiation that lead to competitive advantages based on non price
competition (Aaker 1991).
Despite tremendous interest in brand equity, little conceptu development or
empirical research has addressed which marketing activities build brand
equity (Barwise1993). The focus has been on the exploration of brand equity,
not its sources and development. Shocker, Srivastava, and Ruekert (1994)
indicated that they believe more attention is needed in the development of
more of a systems view of brands and products to include how intangibles
created by the pricing, promotional, service, and distribution decisions of the
brand manager combine with the product itself to create brand equity and
affect buyer decision making. (P. 157)
In response to such a call, this study investigates the relationships between
selected marketing mix elements and the creation of brand equity.We explore
howthese marketing actions increase or decrease brand equity. The findings
provide insights into how marketing activities may be controlled to generate
and manage brand equity. As the first study of this kind, this article provides
a good starting point for further research on the linkage between marketing
activities and brand equity, Journal of the Academy of Marketing Science.
Page 39
CHAPTER III
RESEARCH DESIGN
Title of the study:
A study on Marketing Mix of LG TV with reference to M/s Adheshwara
Electro world private limited
Meaning of Research Design:
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 research design is the conceptual
structure within which research is conducted it constitutes the blue print for
the collection, measurement and analysis of data.
According to Oxford dictionary Research Design means A Search for
investigation directed to the discovery of some fact by careful consideration
or study of subject.
Objectives of the study
This study is conducted with reference to marketing mix of LG TV
and their authorized dealer M/s Adishwara electro world, B.H.Road Tumkur.
Objectives of the study are as follows:
a) To make a study on marketing mix of LG TV and its authorized dealer
M/S Adishwara Electro world Pvt Ltd B.H.Road Tumkur .
b) To make a review on television industry in India in retrospect.
c) To evaluate the effectiveness of marketing mix of LG TV with other
major competitive TVs.
Page 40
d) To know about different models of LG TV.

e) To know about the history of LG TV.
f) To draw conclusion and suggestions.
SCOPE OF THE STUDY
Scope of the study into discovers dealers reaction to the products
performance and physical characteristics. How LG perform various
marketing mix. How the product is perceived as compared to its competitors
performance with respect to quality, price advertising and company good
will.
Limitation of the study

Any study of this kind will have its own limitations.
1. Due to the information and time constraint it was not possible to go in
detail to the study of marketing mix of LG ltd.
2. The study is made in one place at one dealer show room.
3. It is restricted to certain area and limited line Tumkur only.
3.
Sources of data:
PRIMARY DATA: It is first hand data which is collected for first time
this is collected through interview schedule and questionnaires.
Secondary data:
Page 41
As the name its self suggested it is the second hand data which has been
collected from literature survey books magazines, journals, newspapers,
TV,
internet, manuals etc
Sampling Size:
The Primary Data is collected from 10 executives and 100 consumers.
RESEARCH METHODOLOGY
Research Methodology indicate blueprint of action.
1. This study involves collection of data required (both primary and
secondary in nature) regarding marketing mix adopted by the
company and regarding product marketing situation in form of typical
articles from various magazines.
2. Scope of study such as where and to whom this study could prove
useful was defined.
3. Methodological assumption if any are made for the purchase of this
study is also defined.
4. This study does not follow any sampling procedure because one
cannot studied in full detail.
Page 42
Media Profile
No.
1.
2.
Television
Medium
Cost Advantages
Rs. 1,40,000 for 10 Appealing to sense-high
Magazines
sec.
attention high reach
Around Rs. 75,000 High demographic
and
for one full color geographic & credibility

page
3.
Newspaper
LG
and prestige high quality

advertises
Newspaper
reproduction
in Flexibility times lines good
only if local
any special offer is broad

4.
market
coverage
acceptance
Outdoor
given by the company believability

Prime area are Rs. Flexibility high
(Hoardings)
300 per month for 5 exposure low cost.
High
repeat
sq/ft.
Page 43
CHAPTER IV
ANALYSIS AND INTERPRETATION
Consumer Survey Analysis
About 100 consumers were interviewed in Tumkur to collect opinion
about LG TV the findings of survey are analysed below with suitable graphs.
Table 1 Satisfaction of the product
Sl. No. Satisfaction rating
1
Yes
2
No
No. of respondents
80
20
Percentage
80%
20%
Source: Refer Table 1

According to survey conducted we come to conclusion that 80% of the
consumer were satisfied with this product and only 20% of customers really
dissatisfied with this product.
Table 2 Reason for satisfaction

Sl. No. Rating
No. of respondents
Percentage
Page 44
01
02
3
Quality
Price
Sales service
60
20
20
60%
20%
20%
No. of Respondnets
70%
60%
50%
40%
30%
20%
10%
0%
Quality
Price
Sales service
Rating

From the survey it is found that 60% of consumers are satisfied by
products good quality. 20% of consumers were satisfied by its price
(because of reasonable). 20% of consumers are satisfied by after sales
services provided by the dealers.
Page 45
Table 3 Opinion about the price of the product

Sl. No.
1
2
3
Rating
No. of
Percentage
High
Low
Reasonable
Respondents
15
10
75
15%
10%
75
15%
10%
High
Low
Reasonable
75%
Source Refer Table 3

Price is the important factor that affects the demand and supply of the
product. According to survey conducted it is found that the 15% of
consumers mentioned that price of LG TVs high (or) exorbitant; 10 of
consumers mentioned is low; and 75% of consumers are mentioned price is
reasonable.
Page 46
Table 4 Preference of brand by customers

Sl. No.
1
2
3
4
Rating
No. of
LG black
Marvel
Smart
KY Thunder
Respondents
45
20
20
15
50%
Percentage
45%
20%
20%
15%
45%
40%
30%
20%
20%
15%
20%
10%
0%
ONIDA black
Marvel
Smart
KY Thunder
Brand is the important factor that attracts the customer to buy the
goods. From the survey it is found that 45% of customers were attracted by
LG Black brand; 20% of customers attracted by marvel brand; 20% of
consumers attracted by smart series; customers attracted by LG KY Thunder
by 15%.
Page 47
Table 5 Knowledge of the product in the market
Sl. No.
1
2
3
4
Awareness
No. of
Friends
Relatives
Wholesalers
Advertisement
Respondents
12
10
8
70
70%
60%
50%
40%
30%
20%
10%
0%
Percentage
12%
10%
8%
70%
70%
12%
Friends
10%
Relatives
8%
Wholesalers
Advertisement

According to survey conducted 12% of the consumer get the
knowledge of the product through their friends; 10% of consumers through
their relatives; 8% of consumers through wholesellers and 70% of consumers
get the knowledge of the product through advertisement and which are given
in the mass medias.
Page 48
Table 6 Effective media of advertisement

Sl. No.
1
2
3
4
5
6
Ranking
No. of
Television
Radio
Newspaper
Internet
Public display
Magazines
Respondents
40
4
18
20
6
12
12%
6%
40%
20%
18%
4%
Percentage
40%
4%
18%
20%
6%
12%
Television
Radio
Newspaper
Internet
Pubic display
Magazines
Source Refer Table 6

Mass media are playing a very important role in connecting the
manufacture of the product and consumers through giving effective
advertisements to make the consumer aware of the products that are
available in market. From the survey conducted 40% people were influenced
by the advertisement which are given in the effective mass media i.e. TV;
4% of consumers were influenced by Radio; 18% were influenced by
newspaper; 20% of consumers influenced by internet; 6% were influenced
by public display and 2% of consumers influenced by magazines.
Page 49
Table 7 Satisfaction of advertisement of a product (i.e. LG TV)

Sl. No.
1
2
100%
Rating
No. of
Yes
No
Respondents
95
5
Percentage
95%
5%
95%
80%
60%
40%
20%
5%
0%
Yes
No
Advertisement which are given in the mass media may or may not
satisfies the consumers. However, from the survey conducted 95% of
consumers were satisfied with LG TV advertisement; only 5% of consumers
were really dissatisfied with advertisement of LG TV.
Page 50
Table 8 Dealers approach towards consumers

Sl. No.
1
2
3
4
Rating
No. of
Percentage
Satisfied
Dis-satisfied
Very bad
OK
Respondents
55
15
20
10
55%
15%
20%
10%
60%
50%
40%
30%
20%
10%
0%
Satisfied
Dis-satisfied
Very bad
OK

Dealers approach is the important factor that is considering mostly by
the consumers when they are going to buy their needed product. From the
survey conducted with consumers; 55% of consumers were satisfied with the
good approach of the dealers; 15% of consumers were really dis-satisfied
with the approach of dealers and they found it is very bad; for 20%
consumers the approach of dealer is OK is 10%.
Page 51
Table 9 Best advertisement of LG TV

Sl. No.
Rating
No. of
Percentage
Owners pride
Respondents
50
neighbours envy
LG HOME
30
30%
3
4
THEATRE
LG BLACK (Flat)
CANDY
15
5
15%
5%
50%
CANDY
ONIDA B & W
ONIDA Home
Onwers pride
0%
10%
20%
30%
40%
50%
60%

Giving the slogan by the manufacturer is one of the method to attract
towards their product 50% of consumers are ranking owners pride
neighbours envy; as best; only 5% consumers ranking Candy advertisement
as best; 30% of consumers ranking LG home theatre as best; 15% of
consumers attracted by LG Black slogan.
Page 52
Table 10 Facilities offered by dealers

Sl. No.
1
2
3
4
Rating
No. of
Credit facility
Cash discount
Door delivery
After sales service
Respondents
0
10
30
60
0%
0%
10%
30%
60%
10%
30%
60%
Percentage
Credit facility
Cash discount
Dooor delivery
After Sales service

Facilities are the important factors that motivate the customers to go
for buying it is necessary that dealers must offer different facilities to
different customers. According to survey 10% of consumers are mentioned
that they are getting cash discounts as their facility 30% of consumers
getting door delivery as their facility; 60% of consumers are getting after
sales service as their facility. But none of the consumers are getting credit
facility.
Dealers Survey
For knowing the dealers opinion towards LG TV I interviewed about
10 dealers in Tumkur. The opinions regarding LG TV are as follows:
Page 53
Table 1 Customers look in TV

Sl. No.
01
02
03
70%
60%
Particulars
Brand Image
Price
Model
Percentage
60%
30%
10%
60%
50%
40%
30%
30%
20%
10%
10%
0%
Brand Image
Price
Model

From the survey conducted it is clear that 60% of the customers look
for brand image of the TV 30% of customers look for price and only 10% of
customers look of model.
Page 54
Table 2: Medium of advertisement

Sl. No.
01
02
03
04
05
06
Particulars
Television
Radio
Internet
Newspaper
Magazine
Publicity hoarding
10%
Percentage
50%
8%
2%
20%
10%
10%
TV
10%
Radio
Internet
50%
20%
2% 8%
Newspaper
Magazine
Pubicity hoardings

Media is the important factor that influences the customers in
purchasing a particular product from the survey conducted it is known that
50% of customer prefer television for advertisement, 8% of radio, 2% for
internet, 20% for newspaper, 10% for magazine, 10% for publicity
hoardings.
Page 55
Table 3 Terms of purchase

Sl. No.
1
2
3
Particulars
Cash
Installment
Other
Percentage
50%
40%
10%
50%
50%
40%
40%
30%
20%
10%
10%
0%
Cash
Installment
Other
From the survey it is concluded that 50% of customers prefer cash in

their purchasing. 40% of customers prefer installment and only 0% of
customers prefer others.
Page 56
Table 4 Incentives to salesman

Sl. No.
1.
2
3
4
70%
60%
Particulars
Commission
Free tours
Quantity offers
Others
Percentage
60%
20%
10%
10%
60%
50%
40%
30%
20%
20%
10%
10%
10%
Quantity offers
Others
0%
Commission
Free tours
From the survey it is concluded that 60% of salesman prefer

commission for their effective motivation, 20% prefer for free tours, 10%
prefer for quantity offers, 10% prefer for others.
Page 57
Table 5 Preference of product by different groups
Sl. No.
1
2
3
70%
60%
Particulars
High Income Group
Middle Income Group
Low income group
Percentage
60%
30%
10%
60%
50%
40%
30%
30%
20%
10%
10%
0%
High Income Group
Middle Income Group
Low Income Group
According to the opinion of the dealers 60% of consumers who are

buying TV are belong to high income group, 30% are belong to middle
income groups, 10% belong to low income groups.
Page 58
Table 6 After sales service
Sl. No.
1
2
3
4
Particulars
Guarantee
Warranty
Free Service
Others
Percentage
60%
20%
10%
10%
10%
10%
20%
60%
Guarantee
Warranty
Free Service
Others
According to dealers 60% of consumers prefer for guarantee for their

products, 20 of them prefer for warranty, 10% prefer for free service and
only 10% prefer for others.
Page 59
Table 7 Nearest Competitors
Sl. No.
1
2
3
4
5
50%
Particulars
Videocon
Sony
BPL
LG
Others
Percentage
50%
10%
30%
5%
5%
50%
40%
30%
30%
20%
10%
10%
0%
Videocon
Sony
5%
BPL
LG
5%
Others

According to the survey videocon giving more competition i.e., 50%
Sony giving competition of 10%, 30% of competition by BPL. 5% of
competition by LG and 5% of competition from other competitors.
Page 60
Table 8 Effective sales promotion activity

Sl. No.
1
2
3
4
60%
Particulars
Videocon
LG
Sony
Others
Percentage
52%
25%
13%
10%
52%
50%
40%
30%
25%
20%
13%
10%
10%
0%
Videocon
LG
Sony
Others
Source: refer Table 8
The level of effective sales promotional activities of different

company indicates the level of competition exist in the market. According to
survey videocon has high promotional activities i.e. 52%, LG has 25%, Sony
has 13%, others 10%.
CHAPTER V
Summary of finding suggestion and conclusions
Page 61
FINDINGS
1. Product
a. LG produces the color TV that can suit all segment of the market from
portable to home theaters system (i.e., Candy to KY home theatre
system)
b. LG has occupied 3rd place in market just behind the Videocon and
Samsung because of its competitive nature and ability.
c. Most of the customers are satisfied with technical performance of the
product only few are dissatisfied with product.
d. Company by giving technical support to its customers i.e., the
company is appointed service engineer to look after the defects of the
product
2. Price
a. Price of the product are reasonable.
b. Sometimes there will be price discounts or special occasions, festival
and during world-cup and newyear occasions.
c. Company is providing credit facility to customer as it is tied up with
major financing firms like ICICI, HDFC, Bajaj, etc.
Page 62
3. Promotion
a. Some of the dealers are not satisfied with the commission they are
getting.
b. The LG has always tried to maintain good relationship with its
dealers.
c. From beginning itself LG has good reputation in advertisement and it
is successful to attract majority of people towards it.
4. Physical distribution
a. Dealers are satisfactory about the LG distribution channel in fulfilling
the product supply.
Page 63
SUGGESETIONS
1. LG can diversify to produce the television which has the ability

of internet connection just like Videocon international.
2. It is suggested that if it lower the price of certain color TVs
brand so it can penetrate into new market.
3. It is suggested to continue the warranty which is giving to TVs.
4. It is suggested to conduct timely research in market to know the
emerging demands of the customers.
5. It is suggested to utilize popularity of internet by giving
advertisement in it.
6. It is suggested to give more concentration towards rural
marketing as this area will be ignored by most of the
competitors.
7. It is suggested to maintain service engineer give after sales
service if any problem arises.
Page 64
CONCLUSION
This project work was good learning experience. The finding of the
project tries to reveal the field in which LG meet the challenges of all its
activities concerned to marketing mix. No business firm can substitute the
marketing mix the information of this project was obtained through the
dealer stated in the project.
Page 65
CONSUMER QUESTIONNAIRE LG TV
Name :
.
Address:
.
.
.
Sex:
.
Age:
.
01. Are you satisfied with this product?
a) Yes
b) No
02. In which aspect you are satisfied?

a) Quality
b) Price
c) service
03. What is your opinion about the price of the product?

a) High
b) Low
c) reasonable
04. Are you aware of the competitive products?

a) Yes
b) No
05. How do you know about this product in the market?

a) Friends
b) Relatives c) Wholesalers
d) Magazines
06. Mention the media from which you have been influenced?
a) Television
b) Radio
c) Newspaper
d)
Internet
e) Pubic displays f) magazines
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07. Are you satisfied with the advertisements of LG TV?

a) Yes
b) No
08. What are the defects you have found in the LG TV

.
09. Give your suggestions to improve the products?
a) Quality
b) Size
c) Design
d) Price
10. Whether the dealer is allowing you any facilities?

a) Credit facility
b) Cash discounts c) door delivery d) after sales
service
11. How was the dealers approach towards you when you visit the store to
purchase?
a) Good
b) Bad
c) OK
12. If you want to change your TV which one you choose?

.
13. Which one you rate as best advertisement of LG TV?
a) Owners pride neighbours envy
b) Candy advertisement
c) LG home theatre advertisement
d) LG BLACK (FLAT)
Page 67
EXICUTIVES QUESTIONNAIRE
Name of the authorized Dealer :..
Tel. No.: ..
Mobile No. :..
Designation: Proprietor/partner/manager
Percentage of commissions offered by the company
01. According to you what do most of the customer look in TV
a) Brand Image b) Prince
c) Model
02. According to you which medium of advertisement is to be employed to

increase sale?
a) Television
b) Radio
e) Magazines
f) Publicity
c) Internet
d) Newspaper
03. Which is the mode of purchase?

a) Cash
b) Installments
c) Other (Specify)
04. According to you what incentive should be given to the salesman to

affect more sales.
a) Commission b) free tours
c) Quantity d) Others (specify)
05. Preference of the product by different income groups?

a) high
b) middle
c) low
06. Which method of payment do customers prefer?

a) Installments
b) down payments
d) Exchange offers
e) Discounts
c) 0% finance
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07. What type of service do customers prefer after sales?

a) Guarantee
b) warranty c) free service
d)
Other
please
specify
08. Who are the competitors for the LG TV?
a) Sony b) BPL
c) Videocon d) Others
09. According to you which companies sales promotion is more effective

a) Sony
b) onida
c) Videocon
d) Others
10. According to you which is the highest market sale of the TV?
a) Sony
b) BPL
c) Videocon
d) onida
11. Kindly mention what is the turnover of the TV per month

.
12. Do you think product LG is capable of covering wide market area?
a) Yes
If yes
b) NO
a) because of its quality performance
b) guarantee/warranty service
c) Credit facilities
d) Brand Image
13. What are the objectives of pricing strategy of your company products?
a. growth in sales/aggressive more market price
b. to meet the market competition
c. motto of customer satisfaction
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14. Are you facing any problem while promoting your company products?
a) Yes
b) No
15. Strength of LG TVs

a) Quality
b) Price
c) Model
d) brand image
16. Weakness of LG TVs

a) Less advertisements
b) Less performance
c)
Few
colors
d) Model
Thank you for spending your precious time for filling this questionnaire so
that it will help me to complete the project.
Page 70
BIBLIOGRAPHY
Principles of Marketing- B.S. Kumar

Marketing Management- S.A. Sherlekar
Essentials of marketing management -S.A. Sharlekar
* Website
P.N. REddy
H.R. Appannaiah
www.indianinfoline.com
www.LGworld.com
www.televisionhistory.com
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A study on Marketing Mix of LG TV with reference to M/s Adhishwara Electro world Private Limited.

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

7. It facilitates in making a choice.

Department of Studies and Research in Business Administration

7) Expanding the product mix

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

The act of salesmanship is a human mind to convince the customer to buy

Department of Studies and Research in Business Administration

OBJECTIVES OF SALES PROMOTIONS

3. Minimising inventory level

Sales analysis by territory

Sales analysis by product

Product analysis may be particularly effective when combined with

Department of Studies and Research in Business Administration

additional marketing efforts to accounts of certain sizes, given the share of

Causes of the demand recession of 1989-1992

MARKETING MIX OF LG T.V.

Marketing Mix of LG (MIRC Ltd.)

PRODUCT RELATED STRATEGIES

Department of Studies and Research in Business Administration

The packaging activities followed by LG TV is that the TVSs will be

LG TV is widely using the following pricing strategies in pricing its

1. It is advantageous in case of Quality products and high value items.

3. Pay back is longer on a new product and low profit returns.

Promotion is the spoke in the wheel of marketing mix without which

c) Glow sign boards

Company made it easy for the consumers to buy the LG because TV

Department of Studies and Research in Business Administration

Area sales office/Depot/Godown

Department of Studies and Research in Business Administration

LG Electronics' Board of Directors maintains independence from its

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

Department of Studies and Research in Business Administration

into a single plasma TV, delivering a thoroughly interactive Smart TV with a

Accordingly, research has suggested that brand equity can be estimated by

Department of Studies and Research in Business Administration

d) To know about different models of LG TV.

Limitation of the study

Department of Studies and Research in Business Administration

internet, manuals etc

Department of Studies and Research in Business Administration

for one full color geographic & credibility

and prestige high quality

any special offer is broad

given by the company believability

300 per month for 5 exposure low cost.

Department of Studies and Research in Business Administration

Source: Refer Table 1

Table 2 Reason for satisfaction

Department of Studies and Research in Business Administration

Source: Refer Table 2

Department of Studies and Research in Business Administration

Table 3 Opinion about the price of the product

Source Refer Table 3

Department of Studies and Research in Business Administration

Table 4 Preference of brand by customers

Source: Refer Table 4

Department of Studies and Research in Business Administration

Table 5 Knowledge of the product in the market