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DECLARATION
I the undersigned Mr. Amit H. Vaghela. Student of T.Y.B.B.A Grace Collage of Commerce, hereby declare that the project work presented in this report is my own work and has been carried under the supervision of Ms. Bhavna Vyas of Grace College Of Commerce, Rajkot. This work has not been previously submitted to any other industries or universities for Examination. Place Date :- Rajkot. :Amit H. Vaghela (Signature)

PREFACE

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The inclusion of practical study as a part of B.B.A curriculum has not only enhanced my knowledge but with its enriching experience corporate world of business. The object of practical training is to develop awareness among the students about Industrial atmosphere and how to manage the industry or firm in general. The popularity of most education increased because of its practical approach and field knowledge. In practical fulfillment of the study, I got the opportunity to take industrial training at LG International. The project report aims to provide all the data I have collected on my own during practical training at LG.

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ACKNOWLEDGEMENT
It is truly said that in all stages of life success depends in a very large measure upon individual initiative and exertion and cannot be achieved except by dint of hard work. In any field success demands lots of efforts knowledge guidance, co-operation and sincerity. It is my pleasure to present this report before you, which is a combination of knowledge and hard work. I am heartily thankful and give me immense pleasure to express my deep sense of gratitude to Prof. of Grace College Of Commerce who gave me complete guidance, which really helped me a lot. I am also thankful to my friends and family who have always been with me whenever I needed. Last but not the least I would thank God for helping me throughout because without his permission even a leaf cannot move. Place: - Rajkot Date: -

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Amit H. Vaghela (Signature)

Main Index Page

SR NO. 1. 2. 3. 4. 5. 6. 7. 8. PARTICULAR GENERAL INFORMATION MARKETING RESEARCH MARKETING MIX SWOT ANALYSIS FUTURE PLAN CONCLUSION SUGGESTION BIBLIOGRAPHY

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GENERAL INFORMATION
SR NO. 1. 2. 3. 4. 5. 6. 7. 8. 9.
INTRODUCTION HISTORY & DEVELOPMENT GROWTH OF COMPANY EXECUTIVES SUMMARY PRODUCT OF THE COMPANY SIZE OF UNIT & TYPE OF ORGANIZATION CORPORATE PROFILE LOGO LOGIC PHILOSOPHY & RESOLVE

PARTICULAR

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INTRODUCTION
Marketing is often dynamic, challenging and rewarding. It can also be frustrating and even disappointing. But it is never dull. It is the part of organization where The Rubber meets Road the place where an organizations ideas planning and execution are given the acid test of market acceptance or rejection. Marketing is job to convert essential needs in to profitable opportunities. Marketing consists of all activities by which a company adopts itself to its environment relatively and profitability. Before few years ago there was no need for marketing because there was no competition in market and so as compared to supply of product there was more demand so there was no use of Marketing of products. Acc. to Philip Kotler, Marketing is the process of planning, executing the competition, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individuals and organization goals.

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Marketing management includes management of demand, promotion management etc. Promotion includes advertising, publicity, sales promotion and personal selling etc Price includes strategies of products, place includes management of distribution network and its cost, effectiveness, efficiency etc. In todays era each and every step any scale of business needs marketing tools for marketing their business and providing a lifecycle to it. Today consumer marketing serves as a doctor for patient.

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HISTORY & DEVELOPMENT

LG electronic India pvt ltd. a wholly owned subsidiary of LG electronic, south korea was established in January,1997 after clearance from the Foreign Investment Promotion Board(FIPB). The trend of beating industry norms started with the fastest ever nationwide launch by LG in a period of 4 and months with the commencement of operations in May 1997.LG set up a state of the art manufacturing facility at Greater Noida, near Delhi,in 1998 with an investment of Rs 500 Crores. This facility manufactured color Televisions, Washing Machines, Air conditioners and Microwave Ovens. During the year 2001,LG also commends the home productions for eco friedly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

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In 2004 LGEIL also up its second Greenfield manufacturing unit in PUNE, Maharastra that commences operations in October this year.Covering over+ 50 acres, the facility manufactures color Televisions, Air conditioners,Refrigrators,Washing machines, Microwaves Ovens Color Monitors and GSM phones.

GROWTH OF COMPANY
We have now entered in to the world of 21st Century. This new century has put before us many new challenges, which we have to readily accept. It has also created many innovations which might have been

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unimaginable or with the change.

unbelievable

for

people

Looking ahead is Indias largest consumer. Electronic & Home Appliances Company, with increasing investment in diversify business.

EXECUTIVES SUMMARY
LG electronic India pvt ltd. a wholly owned subsidiary of LG electronic, south korea was established in January,1997 after clearance from the Foreign Investment Promotion Board(FIPB).
Name Year of LG electronic India pvt ltd 1997

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Establishment Registered Office

20A Shivaji Marg, New Moti Nagar, New delhi Corporate Office 233/234,platinum plaza, nr judges bunglow cross road. Bodakdev. Ahmedabad-54 Branch Office 301, Dhan Rajni, Nr. Dr. Yagnik Roa`d, Rajkot-360001 Gujarat, India. Form of Private Limited Company Organization Size of Large Scale Organization Products Television, Refrigerator, Microwave, Washing Machine, Air Conditioners, DVD/VCD player, Dish Washer, Music Player. Competitors Samsung, Onida, Bush/Baron, Sony, Akai, Toshiba, Panasonic, TCL, BPL, Whirlpool, Kenstar, Godrej, Philps etc. Accounting Year 1st April to 31st March Bankers State Bank of India, ICICI, HSBC, Corporation Bank, Central Bank of India. Website www.lgindia.com

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PRODUCT OF THE COMPANY

The product is the most important converser by which any firm can prove its efficiency and iteration of quality product is a symbol of the business firm. It is a center point around which all the activities of business i.e. Marketing, Finance, Production etc. are woven without a product nothing to sale, nothing to price & nothing to run business. Product is an engine of the vehicle of the company for providing consumer satisfaction.

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LG is engaged in the production of Electronic & Home Appliances. They produce television, Internet Television, Washing Machine, Refrigerators, Air Conditioners, Video Cassette Player, Video Cassette Recorder, Black & White Television, Audios, Disk Washers, Power Inverters, Hi-tech Product as well as No Frost Refrigerators.

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SIZE OF UNIT & TYPE OF ORGANIZATION

There are 3 scales of industries that is large scale, medium scale & small scale. LG International ltd. is more than 3 crores investment so we can say that it is Large Scale Industry.

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CORPORATE PROFILE
The LG group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979. Today the group operates through 4 key sectors:

Consumer Durables

Thomson CPT

CRT Glass

Oil & Gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colors Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India.

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Refrigerator manufacturing is further supported by our in house compressor manufacturing technology in Bangalore. Display industry and its components With the Thomson acquisition LG has emerged as one of the largest Color Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT. Colour Picture Tube Glass LG is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. LG will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has

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ambitious plans for expansion in this sector globally.

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LOGO LOGIC

This is the LG symbol. It reiterates the ethos of a company dedicated to maintaining the highest international standards of excellence through quality, technology and innovation. For over a decade now, LG has been bringing the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting the best of international technology to suit Indian needs, and crafting it to improve the quality of life as million of satisfied customers will agree. The new symbol of LG asserts its passion for global impact, and the two Es on either side represent the Groups wide spectrum of interests ranging from Electronics to Energy.

Along with the steely glint, this communicates the group's global ambition,

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its strength, sterling credentials and innovative drive. A symbol that proclaims a paradigm shift. A sign that represent the new force that is LG. Thus recapitulating our principle of reaching out and touching the lives of millions of people. Worldwide.

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PHILOSOPHY & RESOLVE

No business can function in a vacuum. There is the society at large with which it engages in innumerable transactions; the more involved the engagement, the better its qualitative and quantitative effect on the business. Aware of this debt to society, a successful corporate like LG is committed to fulfilling its obligations: both as providers of outstanding products as well as sterling community initiatives. They include, among others, a firstrate academic haven for the high-school education of underprivileged girls and a 100% world-class, charitable hospital specializing in cancer and heart surgery for the benefit of societys marginalized sections. LGs deep-rooted commitment to environment conservation translates into process improvements that help recycle CRT glass, curb carbon emissions and other pollutants. Among others, the groups India glass plant has supported a large-scale initiative like the plantation of over 2,00,000 teak trees. A part from material support, society

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needs spirit; that vital ingredient that makes the difference between living life and merely existing. LG is inspired heavily by the uplifting nature of sports; its power to generate mass passion, where innumerable hearts throb as in unison; its ability to draw people together irrespective of differences in race, religion, gender or caste. Unity of spirit and purpose is ultimately what builds bridges between diverse cultures. This is the core belief of a group that has operations spread over a cross-cultural milieu worldwide. LG supports mass sports for another reason: at the heart of sports is fair play, a virtue that enjoys exalted status among values cherished by LG. The groups sponsorship of cricketing events across the globe underlies its commitment and passion for sports as well as its goal to uplift the spirits of a global audience. LG has not forgotten the grassroots.

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INDEX
Sr No. 1 2. Introduction Organization chart Particulars

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3. 4. 5.

Marketing Competitiveness Market of Product Marketing Research

INTRODUCTION
Acc. to Philip Kotler, Marketing is a social & managerial process through which individual & groups can obtain what they need & want through creating, offering & exchanging product value with others. Marketing is comprehensive term, marketing is management functions to plan

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promote & deliver product to customer. A successful marketing strategy has better marketing tools by which the firm may overcome existing competition. We have to be strong either on one front as all other fronts, which create a demand for our products. At any time there may be no demand adequate and marketing management must find ways to deal with marketing different demand status. LG International Ltd. has a marketing department branches in several cities like Rajkot, Ahmdabad, Baroda, and Mumbai etc. all marketing decisions are taken from these branches.

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ORGANIZATION CHART
The main aim of marketing department is to translate consumers demand into physical product or services. It helps the whole organization. It knows the demand of consumers through marketing channels. The organization of marketing department is dependent on structure of marketing department. The marketing department of LG is in Mumbai & branches of marketing department are distributed in several cities. The organization chart of department of LG is as follows:marketing

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PRESIDENT
Executive vice president of Marketing & Sale

Sales vice president

Sales Forces

Marketing Vice President Other Marketing Forces

MARKETING COMPETITIVENESS

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LG today is a household name across the nation. Indias no. 1 brand of colour TVs, Audio Systems, VCR/VCD, Washing Machine, and Refrigerators & Air Conditioners. LG is having so many competitors in the field of each product. Some competitors of LG are Samsung, Onida, Bush/Baron, Sony, Akai, Toshiba, Panasonic, TCL, BPL, Whirlpool, Kenstar, Godrej, Philips etc. I have come to know from my survey that LG is better than other companies and consumers demand more than other companies product.

MARKET OF THE PRODUCT

The main product of LG International Limited is Television and Home Appliances.

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Now days LG sell over five and half million consumer electronic and more than million Home Appliances. All the products are designed taking in to consideration the customers convenience, entertainment and comfort etc. In short LG has both Domestic & International market.

MARKETING RESEARCH
Beside the internal report of marketing executives, the management often focused studying of specific problem & opportunities for better marketing activities. The management often has to face many problem related with marketing like pricing decision, promotion decision, market segmentation etc. these problem look to be decreased of marketing & therefore the exact cure is required.

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In marketing research the marketing is the doctor to cure all these diseases. We can find its systematic meaning from definition shown below:Marketing Research is the systematic design, collection analyses & reporting of data and finding relevant to specific market situation facing the companies. LG International Limited carried out their research work in regular interval when there is fluctuation in sale of any product of the company. Sometimes the company also carried out research work to know the view of people about the new introduced product of the company.

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INDEX

Sr. No.

Particulars

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(1) (2) (3) (4) (5)

Introduction Product Mix Price Mix Place Mix Promotion Mix

INTRODUCTION
Marketing mix is the bridge that diminishes the gap between the products and consumes without marketing all production activities would be fulfill. Therefore more production is not enough. It is equally important to make the consumer aware of the goods produced. After the consumer importance to distribute the goods

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to all prospective consumers. But the marketing activities do not here. The view and ideas of the consumers are taken into and the product is to be changed according to the consumers needs. Thus the sum total of all the activities undertaken to satisfy the consumers wants and demands constitutes the activities of marketing. Marketing is comprehensive firm and it includes all resources and a set of activities necessary to direct and facilities to direct the flow of goods and services from product to utility consumer in the process of distributing. In other words marketing comprises of all the activities involved in the determination and satisfaction of consumer needs at a profit. Thus marketing encompasses all activities of exchange conducted by producers and middleman in commerce for the purpose of satisfying consumer demand. In marketing planning, marketing information is used to assess the situation specific marketing targets are selected in the form market segments for each segment of market a combination of a number of devices or types of marketing activities that are

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Coordinated into a single management programs to reach a particular target or market segment is formulated. The combination of these marketing methods or devices is known as the marketing mix.

1.

PRODUCT

Product is an engine of Vehicle of the company for providing consumer satisfaction. The product is the most important converser by which firms can prove its efficiency identification of quality. Product is the symbol of the business firm product is the center point around which all the activities of business i.e. Finance, Marketing, Production etc. are woven. Without a Product nothing to sale, nothing to price and nothing to run a business.

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2.

PRICE

Price is the matter of vital importance to both seller and a buyer in the market place. Without pricing there cannot be marketing only when a buyer & a seller agree on price we can have exchange of goods or services.

3.

PROMOTION

Promotion is the process of Marketing, Communication. Persuasion, involving information. Promotion has three major purposes; it communicates marketing information to consumers, users & retailers. The Promotion mix includes the following:Sales Promotion, Advertising, Sales Force, Publicity, Direct Marketing. 4. PLACE

The Place mix decision, the decision of location also plays critical role for retailer

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should locate enough stores in easy city to get gain promotion & distribution economic. The place includes channels of distribution, coverage, inventory transport, warehousing etc. Distribution channel means the channel by which finished product is reached from producer to consumer or users. It is the channel through which goods are moved as smoothly as possible.

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PRODUCT MIX INDEX

SR. NO. (1) (2) (3) (4) (5) (6)

PARTICULARS Introduction Types Of Product Brand & Slogan Quality Packing Warranties

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INTRODUCTION
Product is the pivot around which all the marketing selectivities revolve without product, all the marketing activities become useless. People satisfy their needs and wants with products. Product can be defined proudly to cover anything that can be offered brings to someone to satisfy a need or want normally, the ward product brings to mind a physical object such as on automobile, a television or a soft drink. We normally use the expression product and services but in thinking about products, their importance lies not so much in owning them as in using them to satisfy our wants. Manufacturers get into a lot trouble by paying more attention to their physical product then to the services produced by

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these products. The marketers job is to sell the benefits or services built into physical products rather than just describe their physical features. Product mix is the set of all the products line and items that a particular server offers for sale to buyer the product mix.

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Types of Product
LG has Different Products & it is describe as under: 1. 2. 3. 4. 5. 6. 7. Televisions, Air Conditioners Refrigerators Washing Machines Microwave Ovens Color Monitors GSM phones.

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Brand & Slogan

Brand name is the sign, symbol, design of a mix if there used in identifies the product of any firm and to distinguish it from the competitive product in developing a marketing strategy, the seller has to comfort the branding decision. An every company tries level best to be leader or co-leader.

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The LG International Ltd. uses the brand name LG for its each & every product.

Slogan
Some slogans are used in branding & trading. The slogan with right meaning attracts the consumer to purchase particular product. some slogans collected from different magazines and any other sources but LG selected his own one slogan are as follows: Lifes

Good

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Quality
In today competitive age quality is the most important aspect so for as the success of any product is concerned quality here means the port of the physical object for which the ultimate customer is paying in terms of money. LG produce the best quality product, it is the only reason why consumer wants to purchase the LG product.

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Packing
Some marketers have called packaging a fifth p, along with product, price, promotion & place However packaging is treated as an element of packaging consists of all the activities designing & producing the container or wrapper for a product. The container or wrapper is called the package physical product require packaging decisions to create such benefits as protection, economy convenience and promotion packaging also have various elements like size, shape, materials, colour, text & brand name. LG has to sale their products in domestic & foreign exports products they have to be more care full about about it. LG packed it into the printed boxes & on the

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printed they write brand name, party cash no., party shipping name from whose send &receive and both the country name etc. are written on printed boxes. So, the transportation of products becomes easy. LG packing system is very nice to see, their logo &the MRP of the product is also include in the box. So that the people be familiar with the LG products.

Warranties
Product warranties are an important promotional tool especially as consumers because more quality sensitive warranty means authority or justification that the thing sold is fit for use and the producer accepts reproducibility for repairs over a period of time. The company can promote sales by adding a free warranty offer or service contract. Instead of changing for the warranty or service contract it offers it free or at a reduced price if the customers buy that product. Thus, warranty forms an important part of customer durables customers always except a longer period of warranty. But the cost burden on the company is very high and the company has to perform cost benefit analysis while

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deciding the period and scope of warranty only that policy should be selected where the benefits cut run the costs. But it is very difficult to calculate and maintain balance by cost and benefits. The warranty period or two year depending company replaces all movements period is over of LG is one year, a is policy. The the parts and the retailer.

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PRICE MIX INDEX

SR. NO. (1) (2) (3) (4) (5) PARTICULARS Introduction Pricing Policy Pricing Objective Discount Policy Allowance

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Price is the only element of marketing mix that produces revenue, all the other elements i.e. product, place and promotion products cost. Phil ip Kotler Price is the only element of marketing mix that produces revenue. All the other elements that is product, place and production procedure etc. Pricing composition is the first problem facing the marketing executive. All profit organizations and many non profit organization set their prices and product and service. Though most of history price were set by buyers and sellers negotiating with each other sellers would also for higher prices then they expect to receive and the buyers would offer less than their expect to pay. Through bargaining they would arrive at an acceptable price. Setting one price for all buyers is relatively a modern idea.

Introduction

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Inspite of the high degree of importance given to the price mix and the fact that the price mix is only revenue earning element, most companies do not handle pricing well price is set independent of rest of the marketing mix rather than as an interstice element of market positioning strategic and price is not valid enough for different products items and market segments. Companies handle pricing in a variety of ways. In small companies prices are often set by the top management rather than by the marketing or sales department.

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PRICING POLICY
There are various methods of pricing such as going rate pricing, customers cost plus pricing, mark up pricing, value pricing etc. Pricing policy varies from organization to organization and from company to company. The pricing policy of the two companies who are competitors may not be same. But it helps in determining the price of the products. In this competitive era, any company cannot keep cost plus pricing because the competitors will lower the prices and ultimately there will be loss as customer will buy only those products with reasonable prices. Therefore cost plus pricing is not beneficial for the company. LG gives more importance to prices they set price as possible low so that middle class and poor people can also purchase their product. The price policy of LG is formulated keeping in mind, the fact that majority of LG Consumers belong to upper class & upper middle class. Therefore the pricing policy is formulated in such a way that it is affordable by all classes of people &

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it is not burden on the income. The top most of the Company formulates all policies.

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Pricing Objective
It is only of company to decide the objectives of pricing before determining the price. The most important objectives of pricing is to maximum profit. So they fix price that gives maximum profit and other objectives are: To achieve target return on investment. To maintain or improve a large share of the market To meet or prevent competition. To survival and growth of business. In LG company determining objectives of pricing policy with considering reaction of customers, competitors , distributors and also government policy and after these all factor determine they fixed price. The main objective of price is to maximize profit and survival and growth of business.

Discount Policy
Discount is an amount deducted from the price of the product and though the

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profit of all parties can be maintained. Discount is given to the customer for early payment, to increase off season buying and to increase sales volume. Discount is very popularly used to increase the sales volume. Top management used this tool very effectively. Discount may be in term of cash, quality function or seasonal. These discounts are directly or indirectly beneficial to all parties concerned in buying and selling. LG company do not believes in such discount policy. They give some extra benefit with every sale. Because it has covered sufficient market share through its best quality. But in the festival time if declare the discount scheme in the market.

Allowance
Allowances are the other type of reduction from the list price. For e.g. trade in allowances is price reduction granted for turning all item when buying a new one. Promotion as allowances is payment of price

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reduction to reward the dealers and distribution for participation in advertising and sales support programmed. LG Company is given commission to agent for trade promotions activities.

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PLACE MIX INDEX

SR. NO. (1) (2) (3) (4) PARTICULARS Introduction Channels Of Distribution Distribution Network Location

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(5) (6)

Physical Distribution Transportation

Introduction
Marketing channels can be viewed as sets of inter dependent organizations involved in the process of marketing product or service available for use or consumption. - Philip Kotler

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This is third important element of marketing mix. It is also known as distribution mix. Between products & the final customers there are so many marketing intermediates performing a variety of function. In place mix, we take into account various distribution channel of the organization storage inventory control system & physical distribution of the products. So, place mix is related to various places where marketing activities of the firm are carried on. Therefore place mix covers all the major activities of marketing as a related place. Due to this place mix, it covers all the markets of the product transport area & also include the inventory & storage department of the firm. So, we can say that the scope of place mix is much wide.

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Channels of Distribution
Channel of distribution means router or pathways through which goods or services flow from producer to consumer. The types of channels of distribution are as follow: 1. Two consumer): level channel ;( producer &

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A producer may sale his goods directly to the consumer by employing his own personal to distribute on door to door basis. 2. Three level channel Retailer, Consumer): :( Producer,

This type of channel contains one intermediate in keeping the producer consumer. He must be retailer we often see that some big retailer purchase directly from manufactures.

3. Four level channel:(Producer ,Agent, retailer, Consumer): Many Producers prefer to vice agent. Selling agent to reach the retail market. LG Company mostly adopts the four level channels, sometimes it also adopts three level channels also. LG Company adopts the following distribution channel for the market.

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Producer Agent Dealer Retailer Consumer

For Rajkot level: The company adopts two level channel of distribution

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Dealer Consumer For saurashtra & kucth level: Dealer Retailer Consumer

Distribution Network
Some companies have small distribution network because it wants to establish its image in small market and to create monopoly of its product. Some companies have large coverage of market; generally they are large size companies. LG has coverage in whole India. In international market it covers more than 70 countries like UK, USA, UAE, Egypt, South Africa, Kenya, Hungary, Shrilling,

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Bangladesh, Vietnam, Nepal, Hong Kong, Ethiopia, Russia, Sudan, Nigeria, Spain, Austria, Singapore, Israel, Uganda, Malaysia, Indonesia etc.

Locations
In Place Mix location plays a significant role because it decides many decision like channel of distribution, its cost coverage etc. Location should be selected in taking consideration the factors as follows: Availability of raw materials Cheap and skilled Labor Transport factor Government assistance Personal Factor Market Factor

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The present location at the firm is optimum for all necessary infrastructure and other facilities are available easily. The finance & banking as well as other facilities like labour supply, accessibility to markets, and proximity to needed transportation are also easily available at this location.

Transportation
Transportation means a transport a goods from one place to another place. In export order a LG send a goods by ship way. They send goods from kandla port which is one of the free trade zone in India. LG send order by printed box shipping co. pvt. Ltd.it is natural that, in domestic market they use a road way by transportation.

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PROMOTION MIX INDEX

SR. NO. (1) (2) (3) (4) PARTICULARS Introduction Advertising Personal Selling Sales Promotion

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Introduction
Promotion has three specific purposes. It communicates marketing information to consumers, users and reseller. It is not enough to communicate ideas. Promotion persuades and convinces the buyer and influences his/her behavior to take the desired action. Promotional efforts act as powerful tools of competition providing the cutting edge of its entire marketing programme. Broadly speaking promotion means to push forward or to advance an idea in such a way as gain as its acceptance and approve. Promotion is any communicative, activity whose main objective is to move forward a product, service or idea in any channel of distribution. It is an effort by a marketer to inform and persuade buyers to accept, recommended or use the article, service or communication with an additional element of persuasion. The promotional activity always attempts to affect ideas,

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products services etc. is the heart of promotion Modern marketing causes for more than developing a good product priding attractively and making it accusable to target Customers Company must also communicate with their present and potential customers.

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Advertising
Advertising is a form of mass communication; it is a paid form by a sponsor who wants to communicate about his product or service to his customer. Advertising is any paid form of nonpersonal presentation of ideas, goods or services by business firms, identified in the advertising message intended to lead to a sale immediately or eventually. Advertising involves the uses of such media as Magazines, News Papers, Outdoor Posters, Neon Signs, Radio, Television, Catalogues, Directories, Pamphlets, and Direct Marketing etc. As far as the advertising of LG is concerned there is no doubt that, it is adequately and continuously managed with considerable efforts in very accurate directions. LG advertising is effective and attractive perhaps it is the factor by which it has been really able to generate

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and create good demand and a reputed name in the field of Electronic & Home Appliances.

Personal Selling
Personal Selling is the oral presentation in conversation with one or

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more prospective purchasers purpose of making sales.

for

the

Generally LG does not go for personal selling. As it has strong distribution network, all the products are available everywhere and the consumers are aware of the same through advertising and sales promotion schemes. The company does not need to go for Personal Selling. But if there is any prospective customer who wants to buy bulk order for his personal use, the company undertakes Personal Selling for those customers.

SELECTION OF MEDIA
There is no. of choices available to the company for advertising its products.

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Nevertheless, it has to select the most cost efficient & that media by which most of persons are attracted. The reason behind better media is to have better reach, frequency & impact. The task of management is to identify available media, evaluate them as per considered factors & select the best media in order to achieve the set objectives. LG takes into consideration the following aspects while selecting the media. 1. Target Audience:Target audience is the first & the main factor in selection of media. If the company has to give advertisement of oven or washing machine then it would select the periodicals of magazines, which are read by women. For advertisement of CTV LG branch office generally prefers newspapers & for advertisement of audio system in which their target audience is young generation, they will advertise their product in such newspaper, which are read mostly by youngsters. 2. Kinds of Product:-

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The nature of the product determines the media for the company. If any advertisement of CTV is to be given than most reasonable source is that of newspapers. For advertisement of Air Conditioner, it will choose some costly magazine as it is a high priced product. Therefore, in this way the product, which is to be advertised, is to be taken into consideration while selecting the media. 3. Budget:Budget of LG for different media is allocated so it makes easy for the executives for selection of different media. According to their budge allocation, spending of various media is divided.

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PUBLIC RELATIONS
Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects suchas economics geo-economics, fururology to several organizations (civic groups, political groups, fraternal organizations, professional associations) These speeches will enable you to develop new relationships and their cost is nil1!

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SALES PROMOTION
It includes fair trades, coupons, and discounts and are linked to the sales strategy. SALES bring in the money. Salesmen are directly exposed to the pressure of finding prospects making deals, beating competition and bringing money. Sales promotion mean any steps that are taken for the purpose of obtaining or increase sales. Sales promotion tools: Major consumer promotion tools Major dealer promotion tools Major business promotion tools

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LG Company has adopt Major dealer promotion tools. The company give commission to agent.

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SWOT ANALYSIS
STRENGTHS
LG has very reputed market position It is market leader in new innovative in plant and machine development. main strength is the brand name, LG is to no.1 in consumer electronic and home appliance category according to brand equity as well as it is mindset of consumer (2004, brand equity) it is also completive in world class market it is certified by 9002 as well as man foreign institute certified LG it was pioneer in the field of electronics and home appliance in India. it has great financial position (refer balance sheet) having support of share capital.

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Weakness
LG is having good brand name but according to research its brand name is at second position, so they have to try to improve it. LG is buying semi-finished goods from other firm rather then they should produce it at home. LG having good position in many industries but they are somewhat lacking in refrigerator industry.

Opportunities and threats:

The sale of Colour Television in the year 2003 was good and increased because of sporting events like Cricket World Cup. With no such major event scheduled in 2005, manufacturers will need to be more innovative in the coming year. The aggressive marketing and pricing by Indian Companies to counter the competition with multinationals are putting margins under pressure. The companies are working under very low margins. The decline in pricing by the manufacturers as a whole will have impact on the Companys revenues and profits.

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The cost on marketing, advertising and after sale services is increasing tremendously. The consumer electronics market is very price-sensitive. A surge has already been seen in the demand for CTV vis-vis price cuts. Pricing of a product largely depends upon the cost of input, distribution, marketing and general industry scenario in the light of the level of competition. Over the period, costs and interest rates are going to be the key issues that are likely to shape the growth rates in the industry. Costs of major inputs have been on the rise. Inflation linked increases in other expense, including wages and increasing advertising expenditure only add further to the situation. The players are operating on thin margins and it could be possible that their investments in brands would reduce sharply. Lower priced products wit basic features account for a major market share of the domestic market on account of large number of households in middle to lower income segments. Lower priced products with basic features account for a major market share of the domestic market because of

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large number of households in middle to lower income segments. The market for the consumer electronic good is increasing in the rural areas. The customers in rural areas are showing the preferences for the branded goods instead of local made products. The Government has reduced the customs duty on raw materials and inputs used for manufacturing electronic components to nil for most items, while duty on capital goods for manufacturing electronics hardware has been reduced to nil. The special additional customs duty of four percent has been abolished. The peak rate of customs duty has been reduced from 25 percent to 29 percent, which means, lower production cost for electronics manufacturers, and competition will ensure lower prices to consumers.

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FUTURE PLANS
To strengthen and maintain & its leadership status, the LG group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centers to bring out state-of-theart technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. Cost rationalization processes are in various stages - including rationalizing factories in Europe, increasing automation and improvement of efficiency in China, accessing flass shells from India for international CPT facilities and a lot more are in various stages of implementation. I internationally all existing client relationships are being strengthened. The cost competitiveness and increase in capacity in Mexico and Poland has opened up big opportunities in the business. Last but not the least, in the domestic market consolidation with multiple brands paves the way for an unassailable lead in the market. In the Oil & Gas business, having

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all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in India significantly.

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CONCLUSION
Viewing LG International Ltd. from every angle, it can be concluded that overall the

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unit is progressing good because LG International Ltd. has provided excellent quality of product due to sophisticated technology computer used & highly qualified technical staff. By this way, they can be able to create good demand of their product & satisfy the consumer. As far as advertisement is concerned this companies advertising department is effective and they spent lot of money for advertisement and attract the customers. It can be said that credit of success of the company goes to management as well as workers & Employees that LG International Ltd. has bring bright future. In short, its grip on every aspect of the business is tight which helps it in fight every uncertainty. If it continues to do well sure its future will be full of success.

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SUGGESTIONS
The key elements, which will enable LG to achieve greater progress and market share:

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In house manufacture of parts like Glass Shells, etc. can put company in cost advantageous position, but glass cell manufacturing may not long time business because new technology like LCD and Plasma do not need this. Company purchase new glass cell manufacturing factory so they have to conceder this factor. The company can also takes advantage of reduced taxes and other incentives granted by certain states in India for locating manufacturing facilities in such states and economic zone. LG should have each and every product has covered the spectrum from the least to most expensive. In their respective categories, thus meeting requirement of all class of customers. The company sells its products through a well-expanded network of independent retail outlets located throughout India, which are supported by the companys strong sales force. But this distribution network can prove sometime very expensive. So, if LG establish its own show room then they can get benefits of this price difference.

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Things done by R&D department, but promotion of refrigerator may lacking.

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BIBLIOGRAPHY
For Preparing A Project Report, We Requrie Practical As Well As Theorical Knowledge . So I Use Some Books & Site Which Helps Me To Prepare The Report . Following Are The Books & Media Which I Can Take Help For The Report .

Marketing Management -Philip Kotler Marketing Management-S.A.Sherlekar

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Www.Lgindia.Com

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