abhi project lg 07
TRANSCRIPT
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A
PROJECT REPORT
ON
SURVEYOFTHEIRWARRANTYCUSTOMERS
FOR
LGELECTRONICS
Submitted By: ABHILASH DHANIAROLL NO. 0903002
GURGAON COLLEGE OF ENGG.
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Acknowledgement
It is indeed of great moment to pleasure to express my senses to all the people who
have been supportive in making my training a rich experience. I got the opportunity
to do a challenging project in LG ELECTRONIC JALANDHAR (INDIA). The
project is the important part of our study and gives us a real practical exposure to the
corporate world and it is almost impossible to do the same without the guidance of
peoples in and around us. Specifically the summer training of from 15 of june to 27th
of July 2011.Similarly while doing the topic customer survey of our warranty
customers inorder to judge the satisfaction as a summer trainee I took help of
many for my projects.
It gives me immense pleasure to acknowledge LG
ELECTRONICS INDIA Ltd., which has been nice enough to give me a chance to
do my summer training and providing me wonderful support through out my
training period and afterward.
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I am thankful to MR. R.K ARORA for allowing me to do my research in his office
by knowing my interest in doing research on LG consumer durables and dealer
development research.
DECLARATION
I will take pleasure in declaring that the project work that is
undertaken by me is an original and authentic work done by me.
This project is being submitted in partial fulfillment for award of
degree of Post Graduate in Engineering from GURGAON
COLLEGE OF ENGINEERING.
The content of this report is based on the information collected
by me during my tenure at LG Electronics Ltd. at
JALANDHAR for SIX WEEKS of training from 15 of JUNE to
27 July 2011.
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Executive summary
Indian Consumer durables market used to be dominated by few domestic players
like godrej Voltas allwyn and kalvinater. But post liberalization much foreign
company have entered into Indian market dethroning the Indian player and
dominating Indian market the major categories in the market CTV,
REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE
India being the second largest growing economy with huge consumer class
has resulted in consumer durables as the fastest growing industries in India LG,
SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.
The rural market is growing faster than the urban market, although the penetration
level is much lower .The CTV segment is expected to the largest contributingsegment to the overall growth the industry. The rising income levels double-
income families and consumer awareness are the main growth drivers of the
industries.
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Scope of project
This project gives me great exposure to the consumer durable market because it
includes product knowledge and the filed job in which I have visited the store
comes under the region of JALANDHAR. During this project I also took part in
the exhibition of LG which held for the purpose branding and awareness of LG
product. This project helps me to know the market practically. My job was during
this project to see the market share and also the display share of the LG product in
the store. LG always insist the 50% display share of LG product because LG
believes that JO DIKHTA HAI WO BIKTA HAI.
My job include while visiting the shops
1. Calculate the display share of the LG product in every shop which comes
under JALANDHAR region.
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2. Collect the data of actual monthly sale of the LG product in every shop.
3. Check the availability of LG catalogue and the POPs in the store.
4. Find out the problems that the dealer are facing while sailing the LG
product.
5. Find out the costumer response for the LG product by asking the owner of
the shop.
6. Find out the distributer name from whom they purchasing their product and
also weather they have direct dealership and which brand.
7. Check that demo calls are attended or not .
Key findings:-
1. By calculating the display share we found that in most of store LG has 50%
display share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity
of the store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of
LG or not and it also helps to find out the new dealer who are capable of
being the dealer of LG.
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4. We also came to know while visiting the shops that there was big problemof after sale service.
5. Many dealers were facing the problem of after sale service because there is
no follow up calls from LG.
6. Demo calls also not done properly.
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo,
and Aiwa came into the picture. Today, these players control the major share of
the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008.
It is growing very fast because of rise in living standards, easy access to
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consumer finance, and wide range of choice, as many foreign players areentering in the market
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for
consumer durables has increased significantly. Products like washing machines,
air conditioners, microwave ovens, color televisions (CTVs) are no longer
considered luxury items. However, there are still very few players in categories
like vacuum cleaners, and dishwashers
Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of
MNCs in consumer durables sector is 65%. MNC's major target is the growing
middle class of India. MNCs offer superior technology to the
Consumers whereas the Indian companies compete on the basis of firm grasp ofthe local market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration level of the consumer durables
is still low in India.
Classification of consumer durables sector
1. Consumer electronic include vcd/dvd, home theatre, music player, color
television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc
2. White goods include dishwashers, air conditioners, heaters, washing machines,
refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,
microwaves, built-in appliances, Tumble dryer, personal care product etc.
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3. Moulded luggage include plastics
4. Clocks and watches
5. Mobile phones
Scope
1. In term of purchasing power parity (ppp), India is the 4th largest economy inthe world and overtake Japan in the near future become the 3rd largest.
2. India has the youngest population amongst the major countries. There are lotof people in the different income categories nearly the two third populationis below the age of 35 and nearly 50% is below 25.
3. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year. And there are 6 million rich household in India.
4. The upper-middle and high-income household in urban areas are expected to
grew to 38.2 million in 2007 as against 14.6 million in 2000.
Opportunity
1. In India the penetration level of white goods is lower as compared to other
developing countries.
2. Unexploited rural market.
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3. Rapid urbanization.
4. Increase in income level, i.e.increase in purchasing power of consumers.
5. Easy availability of finance.
Threats
Higher import duties on row materials.
Cheap imports from Singapore, China and from other Asian countries.
Brands in consumer electronic sector
MNCs NATIONAL REGIONAL
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LG )SAMSUNG ) KOREA ONIDA BUSHHYUNDAI ) VIDEOCON CROWN
BPL SALORATCL ) CHINA GODREJ T-SERIESHAIER ) VOLTAS WESTON
IFB BELTAK PHILIPS ) HOLLAND OSKAR
PANASONIC )
SHARP )HITACHI )SANSUI ) JAPANAKAI )AIWA
WHIRLPOOL )ELECTROLUX
TODAY Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNC's major target is the growing middle class
of India. MNCs offer superior technology to the
LG, SAMSUNG the two Korean companies has been maintaining the lead
in the industries with LG being leader in almost all the categories.
The company, having a turnover of Rs 9,500 crore and market share of 26 per cent,
is investing Rs 360 crore on brand-building and other marketing initiatives and
around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas,
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LG Electronics is one of the leading companies in the field of electronics with a
global presence in many countries. . Before briefing, I have divided the
introduction part into three main sub parts.
1. LG Global
2. LG India
3. LG Pune
History of company
The company was originally established in 1958 as Gold Star, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and Gold Star, from
which the abbreviation ofLG was derived. The current "Life's good" slogan is abackronym. Before the corporateName change to LG, household products were
sold under the Brand name ofLucky, while electronic products were sold under the
brand name ofGold Star. The Gold Star brand is still perceived as a discount
brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics
of the United States.
Global Operation
LG Electronics is playing an active role in the world market with its assertive
global business policy. As a result, LG Electronics controls 110 local subsidiaries
in the world with around 82,000 executive and employees.
http://en.wikipedia.org/wiki/Backronymhttp://en.wikipedia.org/wiki/Name_changehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Electronic_productshttp://en.wikipedia.org/wiki/Zenith_Electronicshttp://en.wikipedia.org/wiki/Name_changehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Electronic_productshttp://en.wikipedia.org/wiki/Zenith_Electronicshttp://en.wikipedia.org/wiki/Backronym -
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LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Business areas and main products
Mobile communications
(a) CDMA Handsets,
(b)GSM Handsets,
(c) 3G Handsets,
(d)Cellular Phones
Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
http://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacomhttp://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigeratorhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/LG_Grouphttp://en.wikipedia.org/wiki/LG.Philips_LCDhttp://en.wikipedia.org/wiki/LG_Chemicalhttp://en.wikipedia.org/wiki/LG_Telecomhttp://en.wikipedia.org/wiki/LG_Powercomhttp://en.wikipedia.org/wiki/LG_Twinshttp://en.wikipedia.org/wiki/LG_Dacomhttp://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Refrigeratorhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Washing_machine -
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e) Vacuum Cleaners,f) Home Net,
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
Digital media
a) Home TheaterSystems,
b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CDRW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
http://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Compressorshttp://en.wikipedia.org/wiki/Plasma_displayhttp://en.wikipedia.org/wiki/Liquid_crystal_display_televisionhttp://en.wikipedia.org/wiki/Computer_Monitorshttp://en.wikipedia.org/wiki/Home_cinemahttp://en.wikipedia.org/wiki/DVD_recorderhttp://en.wikipedia.org/wiki/Vacuum_cleanerhttp://en.wikipedia.org/wiki/Compressorshttp://en.wikipedia.org/wiki/Plasma_displayhttp://en.wikipedia.org/wiki/Liquid_crystal_display_televisionhttp://en.wikipedia.org/wiki/Computer_Monitorshttp://en.wikipedia.org/wiki/Home_cinemahttp://en.wikipedia.org/wiki/DVD_recorder -
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h) PDA Phones,i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
VISION
Global Top 3 by 2010
Global Top 3 Electronic/Telecommunication company
GROWTHSTRATEGY
Fast innovation, Fast growth
CORECOMPETENCY
Product leadership, Market leadership, People leadership
CORPORATECULTURE
No excuse, we not I, Fun workplace
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SLOGAN
"Life's Good" represents LG's determination to provide delightfully
smart products that will make your life good.
The LG Electronics Life's Good signature consists of the LG logo, seal,
and the slogan, "Life's Good" set in Charlotte sans typeface curved
around the LG symbol. The curving of the slogan reinforces LG's
personality and uniqueness. The consistent usage of this signature clearly
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establishes the unique identity of the company and unifies every division andproduct from LG Electronics across the globe.
THE SYMBOL
The symbol of LG is the face of future. The letter L and G in a circle
symbolizes world, future, youth, humanity & technology.LG philosophy is based
on humanity. It also represents LGs efforts to keep close relationship with our
customers around the world.
The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique LG red color.
Red color represents our friendliness and gives a strong impression of LGs
commitment to deliver the best.
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The circle symbolizes The Globe. The stylized image of a smiling face in thesymbol conveys Friendliness and Approachability. The one eye on the symbol
represents Goal-oriented, Focused & Confident.
The slogan of LG is Lifes Good. It expresses Brands Value, Promises,
Benefits, Personality.
THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a labor-
management relationship rather than an employee-employer relationship. This
illustrates that management and workers are not in a vertical relationship, but in a
horizontal one.
This culture is necessary for LG Electronics as it strives to become one of the
world's top companies. Such a relationship is transformed into a value-creation
relationship whereby both parties endeavor to address mutual problems and create
new values together.
STRATEGICALLIANCE
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LG Electronics is making technical advances and identifying businessopportunities through various associative relationships with some of the
world's leading companies.
LG Electronics is striving to become number one in the world by mingling
in various business and technological fields and making strategic alliances with
world famous companies. "Strategic association between corporations," in which
companies with different infrastructures cooperate in the fast-developing 21st
century business field, is of key significance in terms of strengthening the existing
industry and creating a new one.
LG Electronics will do its best to create new products and services with an open
mind, while developing new technologies and business fields through various
associations with some of the world's most successful companies.
1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT7. HP
8. GOOGLE
9. GE
10.INTEL
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11.NORTEL12.HITACHI
13.PRADA
14.RENESAS
15.TOSHIBA
16.BESTBUY
And the number follows many more..
In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile
services will be available from LG mobile. This service is targeting 10 million LG
mobile phones in over 70 countries.
In Mar. 2007 LG Electronics and Google formed a strategic alliance.
Both companies will work together to release, market, and offer LG mobile phones
with Google services (search engine, map, email, and blogs.)
LG BRAND IDENTITY:-
The brand of LG is delightfully smart. LG strives to enhance the customers life
and lifestyle with intelligent features, institutive functionality and exceptional
performance.
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The brand platform:-
The LG brand is composed of four basic elements
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes
Reliable products
Simple design
Ease of use
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Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer
through
Trustworthy, Considerate
Practical, Friendly
Mission
The mission of LG is to provide the customers with utmost satisfaction through
leadership.
The fundamental policy of development is to secure product leadership that the
Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
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4. Environment Friendly Product5. Low Noise & Vibration
6. Energy Saving
Quality Innovation
The policy of quality assurance is to provide customers with utmost satisfaction
by supplying zero defects.
LG proceeds in a hierarchal manner. It is named as LG WAY .
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From top to bottom:
No.1 LG is the VISION
Jeong-DO Management is LGs unique application to ethics. LG will succeed
through fair management practices and constantly developing our business skill.
A) Honest with our customer
b) Providing great values to customer through constant innovation & and
development.
c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer
Code of conduct of LG:
1. Responsibility and obligations to customers :
Respect for Customers
Creating Value
Providing Value
2 Fair competition
Pursuit of Free Competition
Compliance with Laws and Regulations
3 Fair Transaction :
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Equal Opportunity Fair Transaction Procedure
Support and Aid for Business Partners
4 Basic Ethics for Employees
Basic Ethics Completion of Duty
Self Development
Fairness in Performance
Avoidance of conflict with company interest
5 Corporate Responsibilities to employees
Respect for human dignity
Fair Treatment
Promoting Creativity
6 Responsibilities to society and country
Rational Business Development
Protection of stock holder interest
Contribution to social development
Environmental Conservation
LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 after clearance from the Foreign
Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing
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facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500Crores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road , Greater
Noida , India .
This facility manufactured Color Televisions, Washing Machines, Air-
Conditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to
launch 60 premium Brand Shoppes by the end of the first quarter of this year. At
present, LG has a total of 83 LG stores across the country, of which 45 are shoppes
and 38 are exclusive stores. Brand shoppes will be placed in the premium segment
and the target audience will comprise buyers interested in premium and high end
products.
LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a
more interactive environment and additional lifestyle orientation on display so that
the customer can actually experience the LG products in his or her own home
settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market
share, is planning a brand new image. To attract inspirational and young
consumers across India, company will roll out a new marketing strategy. The
exercise will cost the company Rs 360 crore.
LG Electronics India is the fastest growing company in the consumer electronics,
home appliances, and computer peripherals industry today.
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LG Electronics is continually providing, superior technology products & value formoney to more than 50 lakh households in India. LGEIL is celebrating the 11th
anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG
Electronics' largest R&D centre outside Korea. We at LGSI focus on niche
technology areas such as mobile application development, digital video broadcast
and biometrics software and support LG Electronics with our expertise. Motivated
by a passion for technology, a strong work culture and loyalty to the organization,
we are determined to see LG become one of the top three brands globally.
Prominent consumer electronic company, LG Electronics Inc. has said that it
expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum
Shin, managing director of LG Electronics India has said that the company has
earmarked 4.8 billion rupees for investment purpose in India this year. The said
money will be used to market as well as manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India,
informed that its sales of GSM mobile phones, color televisions, air conditioners
and other household goods in the Indian market was to the tune of 95 billion
rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be
around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on cateringto the high-end consumer market which will help boost sales this year. India
churns out six (6) per cent of LG Electronics global revenues of $42 billion. The
Indian branch of LG exports to 40 countries.
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India challenges
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995
in India).
3. High import duty4. Compitition from local market players and other MNCs in consumer durable
segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as
Innovative marketing strategy
1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring
the 1999 world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its
products. LG invested more then US$ 8 million on advertising and
marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTVhas Golden eye technology Air conditioner has Health air system and
microwave ovens have the Health wave system.
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Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manufactures TV refrigerator in India at
manufacturing facility at Noida and Pune. LGEI had already commissioned
contract manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped
LGEI to reduce cost.
LGEI implementing the Digital manufacturing system (DMS) as the cost cutting
innovation this system is follow-up to the six sigma exercise LGEI had initiate
earlier.
R&D potential
LG has the research and development facilities in Bangalore and Pune. Both the
unit carry out R&D department for the domestic as well as the parent company it
also dose customize R&D for the specific countries to which it export product.
Regional channel and wide distribution network
1. LG has adopted the regional distribution channel in India. All the
distributers work directly with the company. This has resulted in quicker
rotation of the stock and better penetration into B, C, D, class market.
2. LG also follows the stock rotation policy rather then dumping stock on
channel partners.
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Product localization:-
1. Product localization is the key strategy used by the LG
2. LG came out with Hindi and regional language menus on its TVs.
3. Introduced the low-priced Cineplus and sampooma for the rural market.
4. LG was the first brand to introduce gaming in TVs in continuations of its
association with cricket LG introduce cricket game in CTVs
MAJOR KEY SUCCESS FACTORS
1. Innovative marketing - LG was the first brand to enter cricket in a big way,
by sponsoring the 1999 World Cup and followed it up in 2003 as well.
2. Local and efficient manufacturing to reduce cost - To overcome high import
duties, LG manufactures PC monitors and refrigerators in India at its
manufacturing facility at Noida, Delhi.
3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for
CTVs.
4. Product localization - Product localization is a key strategy used by LG. It
came out with Hindi and regional language menus on its TV.
5. Regional distribution model - This has resulted in quicker rotation of stocks
and better penetration into the B, C and D class markets.
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6. Leveraging Indias IT advantage - LG Electronics has awarded a contract todevelop IT solutions to LG Soft India (LGSI). The project involves
development and support for ERP, SCM, CRM and IT-enabled services for
LG.
Strategies adopted by the organization
LG follows 10 commandments which are as follows.
1. Foster working environment-5S Environment
2. Fast execution is key to success
3. Transparent and fast communication-open communication
4. Update market -knowledge Demographics
5. Win Win relationship with the trade partners
6. Customer is the king
7. Even Billing Road to ach supplier A
8. Be in touch with the market (70% Market, 30% Office).
9. Plan and Execute annual marketing Calendar-Time to market
10.Display share of 50% -to get 50% consumer share.
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LG market share of consumer appliances and consumer electronic:-
LG position of CTV in various states in India
LG position of REF in various states in India
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LG position of WM in various states in India
LG position of AC in various States in India
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LG position of Audio & Home Theater in various in India
LG position of DVD in various in India
.
LG JALANDHAR is the branch office of LGEIL.It is located in LAJPAT NAGAR
The organization structure is one branch manager, one chief accountant, and area
sales manager of CE, HA separate for GSM, Marketing manager for CE, HA and
separate for GSM.The Pune branch has warehouse at wagoli.
Logistics is the art and science of managing and controlling the flow of goods,
energy, information, and other resources like products, services, and people, from
the source of production to the marketplace. It is difficult to accomplish any
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marketing or manufacturing without logistical support. It involves the integrationof information, transportation, inventory, warehousing, material handling, and
packaging. The operating responsibility of logistics is the geographical
repositioning of raw materials, work in process, and finished inventories where
required at the lowest cost possible.
Logistics Management is that part of the supply chain, which plans, implements
and controls the efficient, effective forward and reverse flow and storage of goods,
services and related information between the point of origin and the point of
consumption in order to meet customers' requirements.
5Rs of Logistic followed by LG:
1. Right Time
2. Right Place
3. Right Condition4. Right Cost
5. Right Handling
There are three types of Warehouse-
1. Mother Warehouse
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2. Branch Warehouse
3. Spare part warehouse
The mother warehouse is that where the products from the factory are kept and
from that warehouse, the products are sent to the branch warehouse.
A warehouse is a commercial building for storage of goods. Warehouses are used
by manufacturers, importers, exporters, wholesalers, transport businesses, customs,
etc. They are usually large plain buildings in industrial areas of cities and towns.
They come equipped with loading docks to load and unload trucks; or sometimes
are loaded directly from railways, airports, or seaports. They also often have cranes
and forklifts for moving goods, which are usually placed on ISO standard pallets
loaded into pallet racks.
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Invoicing after billing process/bill generation
Indenting requirement (Pdt Unit to branch unit)
Report distributed to all
In warehouse, there are two mode of dispersion of product from one place to
another within. a) Hydraulic b) Manual
In addition, there are 35 fire extinguishers to prevent the accidental hazard withinthe warehouse due to fire. These fire extinguishers are valid up to year 2011. One
has to follow the rule of NO Smoking within the warehouse
Logistics Ten Commandments Golden Rules
1 - Warehouse 5S to be strictly followed FG 2, 5 & 7 to be properly
maintained.
2 - 100% Bar-coding for all inward & outward transaction.
3 - Follow standard pick ship process religiously.
4 No inventory mismatch, shortage or excess monthly 100% physical
stocktaking.
5 Nil 30+ for FG 2, 3 & 5.
6 Nil transit damage.
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7 File insurance claim within 2 days. Settle all claim all within 30 days.
8 No inter branch transfer without HO clearance.
9 PSI feeding into system by 25th of every month. Ensure 90% accuracy.
10 Apply physical FMFO.
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply
Equipments
1- 100% Bar code scanner.
2- ERP Invoice Generation Process.
3- Hydraulic Trolleys for material movement.
4- Pallets for safety of material.
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keeping after sales from being used as a cutting edge marketing tool in pushingproducts across categories.
Customers support following the purchase of a product or service. In some cases,
after-sales service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is included in any
warranty (or guarantee) package. This will include the duration of the warranty
traditionally one year from the date of purchase, but increasingly two or more
years maintenance and/or replacement policy, items included/excluded, labor
costs, and speed of response. In the case of a service provider, after-sales service
might include additional training or helpdesk availability. Of equal importance is
the customer's perception of the degree of willingness with which a supplier deals
with a question or complaint, speed of response, and action taken.
LG also had a big problem of after saleservice in India. During my project I
also came to know that after sale service becomes the big issue in Pune region.
Customers as well as dealer were facing the problem of after sale service. Because
of this problem many dealer in Pune region were not ready to sale LG product. So
it becomes the big issue.
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But LG has taken some solid steps towards improving customers perception andexperience of after sales service. Because it very important in competitive market
to provide the best service.
L G Electronics has signed a memorandum of understanding with 23 Industrial
Training Institutes to strengthen its after sales service in India.
The company aims to recruit 10,000 people by the end of this year as a part of its
branding strategy to focus on service and move away from discounting.
L G Electronics has identified eight states with high after sales service call rates to
ink the deals with the ITI. Y V Verma, director HR and management system, LG
Electronics said, "The Company was trying to find a solution for effective after
sales service since last two years. There is a huge need of trained manpower for the
after sales service to align with the company's expansion and focus on the GSM
mobiles and the personal computer segments."
1. In the initial phase the company has entered into agreements with ITIs in the
states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka
and is in the last leg of signing with Uttar Pradesh.
2. L G Electronics, with 1200 service centers, has already recruited 300
students and plans to beef up the number to 10,000 by the year-end.
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3. "The company has offered a scholarship to the selected students for the lastsix months of their training programme,"
4. The company will invest Rs 8 crore (Rs 80 million) in employee
development programme this year with an aim to attain a 8 per cent attrition
rate.
5. The company moved away from the discounting strategy since last year and
is putting thrust on the quality and service in its brand communication to
position LG as a premium consumer electronics brand.
6. At the top, the Service Division in Korea reports to the Global CMO. (as
mentioned in Dermots public interview in ET on Wednesday). This shows
commitment that Service must be made into a marketing differentiator, and
leveraged thus.
7. LG has the widest service network across the country; some estimates put it
at a significant multiple of service-infrastructure from our nearest
competitor. While the sale size may also be a nice multiple from nearest, it
shows the company is ready to put our money where our mouth is.
8. The company has introduced a 211 service - once you register your
complaint, we will call you back in 2 hours (hence 2), set up an appointment
for the next convenient day for you (hence the first 1), and show up in the
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promised 1-hour slot (hence the second 1). If the next convenient day foryou is the next day, thats great too. Its a disruptive action in an industry
(including LG) having traditionally shied away from its service
responsibilities, and thus not leveraging any mileage from it.
9. The company is promoting 211 through ATL, probably the first time after-
sales service is being communicated in this fashion by any product
company. You may have seen the TV commercial or heard the radio advert
or seen the newspaper ad or in-shop posters, both of which revolve around
prompt response.
10.The first LG-owned service centre opened in Gurgaon. (Service in India
generally works through authorized service centers, in LGs case they work
exclusively for LG.) A company-owned service centre tries that much
harder, knows things better, and can even contribute as a revenue center.
CONSUMER SURVEY DURING EXHIBITION
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From 16th to 25th May a consumer exhibition was organized at the college ofEngineering ground. The exhibition was sponsored by Sakal group in which
number of companies participated.
EXHIBITIONS PICTURES SHOWING THE PRODUCTS
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Objective of the project
Primary objective
The main objective of filed survey during the project was to find out the
market share of the LG and also calculate the display share.
Find out the positional dealer who can sale the LG product in large volume.
The main objective of research was to identify potential dealer and
development these dealer. So LG can make them their direct dealer.
This will ease the dependence on the some big dealer like Maharashtra and
Mahaveer electronics.
Find out the problem faced by the dealer in sales and the distribution.
Secondary objective
The Objective was to find out that how far the exhibitions are helpful in
branding,
While purchasing the consumer durables which parameter is most important
for the consumer?
Do the consumers prefer the financial facility for buying consumer durable?
How frequently consumers change the consumer durable?
To enhances the knowledge of consumer durable market.
To increases the knowledge consumer durable product of LG.
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To enhances the knowledge about the marketing and branding activity.
Types of research is:
Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have in
particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the who, what, when, where and how of the subject under investigation.
There is a general feeling that descriptive studies are factual and very simple. Thisis not necessarily true. Descriptive study can be complex, demanding a high degree
of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be flexible
in its approach, but a descriptive study in contrast tends to be rigid and its approach
cannot be changed every now and then. It is therefore necessary, the researcher
give sufficient thought to framing research.
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Questions and deciding the types of data to be collected and the procedure to be
used in this purpose. Descriptive studies can be divided into two broad categories:
Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned
with a sample of elements from a given population. Thus, it may deal with
household, dealers, retail stores, or other entities. Data on a number of
characteristics from sample elements are collected and analyzed. Cross sectional
studies are of two types: Field study and Survey. Although the distinction between
them is not clear- cut , there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at
finding the relations and interrelations among variables in a real setting. Such
studies are done in live situations like communities, schools, factories, and
organizations.
Another type of cross sectional study is survey result, which has been taken by me.
A major strength of survey research is its wide scope. Detail information can be
obtained from a sample of large population .Besides; it is economical as more
information can be collected per unit of cost. In addition, it is obvious that a
sample survey needs less time than a census inquiry. Descriptive research includes
survey and fact finding enquiries of different kinds of the major purpose.
Descriptive research is description of the state of affairs, as it exists at present. The
main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. The
methods of research utilized in descriptive research are survey methods of all kinds
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including comparative and co relational methods. The reason for using such needsto be flexile in its approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed ever now and then.
OBJECTIVE OF THE STUDY
The objective was to find out the market share of LG products, advantages, and
disadvantages of LG products from dealers and to find out what problems they
are facing with the LG products so that problems can be resolved to increase the
sale.
PICTURE SHOWING THE PRODUCT OF LG IN ONE OF THE SHOP
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Data collection methods:After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One
of the important tools for conducting market research is the availability of
necessary and useful data.
Primary data: For primary data collection, we have to plan the following four
important aspects.
Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature
studies are important sources of secondary data.
Data analysis and interpretation1. Questionnaires
2. Pie chart and Bar chart
Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains
question that the researcher wishes to ask his respondents which is always guided
by the objective of the survey.
Pie chart:
This is very useful diagram to represent data , which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is represented
by the full create. The diagram bar chart can make comparison among the various
components or between a part and a whole of data.
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Bar chart:
This is another way of representing data graphically. As the name implies, it
consist of a number of whispered bar, which originate from a common base line
and are equal widths. The lengths of the bards are proportional to the value they
represent.
Preparation of report:
The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report itself.
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The one is
made for the Customer.
No. of questions in questionnaires for customer: 07
No. of question related to LG product: 03
No. of people met during the research: 200
No. of respondents during the research: 50
Sample unit
Professionals, Business man,
Employees, House wife,
Working women,
Students
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Analysis:
Q1. Have you purchased any consumer durable during Exhibitions?
Yes
No
Inferences
1. 65 % of Customer have not purchased any consumer durable from
exhibitions.
2. Only 35 % people have purchased.
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Inference
1. 30% of customer gives importance to price. So it shows that Indian
consumers are very price sensitive. They give more importance to price over
the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price.
3. 19% to product feature Service 16% and durability 9% Service is also a big
factor for the customer they are less interested in the durability.
Q3. From where you prefer buying consumer durables
Exhibitions
Co.shoppee
Showroom
Inference:
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1. A majority of customers prefer to buy from showrooms. Very lessproposition of customers buys from Exhibitions.
2. 47% customers are prefer to by from the showrooms because the showrooms
are more convenient to customers they also think that these shops give more
discounts.
3. People are less interested to buy from the exhibition they only visit the
exhibition for price quotation of the product and the comparison of the
product.
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
Attractive Price
Service
Demonstrations
Offers
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Inference
1. Customers buy from showrooms because of the service and convenience.
These are two main factors.
2. Customers are preferred to buy from the showroom because of they think
that these convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can get
more discounts in these showrooms.
4. Price also a factor that attract the customer in these showrooms.
Q.5.Which consumer durable you have and of which brand?
CTV
LCD
PLASMA
REF
WM
MW
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AC
InferenceIn CTV section maximum customers have Onida, in LCD Sony is the leader, In
plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM
there are companies and in AC also.
Q.6. How frequently you change your consumer durables?
1-3 years
3-5 years
5-10 years
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More than 10 years
INFERENCE
1. Customers prefer to change consumer durables within 5-10 years. In India
people do not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not prefer to change their consumer
durable frequently.
Q.7.Do you prefer any financing scheme to purchase consumer durables?
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Yes
No
INFERENCE
Majority of customers do not prefer any financial scheme.
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Dealer survey Findings
1. By calculating the display share we found that in most of store LG has 50%
display share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity
of the store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of
LG or not and it also helps to find out the new dealer who are capable of
being the dealer of LG.
4. We also came to know while visiting the shops that there was big problem
of after sale service.
5. Many dealers were facing the problem of after sale service because there is
no follow up calls from LG.
6. Demo calls also not done properly.
7. The top competitor of LG product in Pune is SAMSUNG.
8. In Pune area the performance of LG is in better position but the competitor
also hold closer margin.
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9. There is high growth of sale in market due to booming in new technologyand better service.
10.Word of mouth plays a vital role in awareness among customer. This is one
factor, which can play a good role in promotion of products as well as
demonstration given by the shopkeeper also plays a vital role for customer.
RECOMMENDATIONS AND SUGGESTIONS
1. LG should improve its after sale service because its hits badly LGs market
share in Pune region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at frequent time
interval and feed back should be considered positively.
4. The company should look into the matter of person hiring for in shop
demonstration. A big LG showroom should have at least 2 such kind of
person.
5. LG should try new dealer who have the potential. So they can target more
market.
6. As there is a bottle neck competition between Samsung and LG, it is
necessary to take measure steps to overcome the area of downfall in LG with
respect to Samsung.
7. The marketing managers should make better relations with dealers and
reputation of the company.
8. Customer considers quality as their first preference, so the company should
give more stress on this.
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9. The switching of customer from LG product to other brand is due to the bedafter sell service in shop.
10.The product is well aware and it is on top of mind of customer. So company
should always improve services and update their technology.
LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
1. The research was conducted in a very small area.
2. My research work period witness the biggest ups and downs in product sale
of different brands, which affected the perception of the customer. This was
biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete my
research, for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.5. I had only found the upper-middle class family to fill up the questionnaire,
but generally, an average middle class family was required for the study.
6. The sample size is also very small which represent my research on
consumer behavior
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My study is not recognizable in whole INDIA as well as outside Ranchi due to
the above limitations and less area coverage.
BIBLIOGRAPHY
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
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Consumer survey Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions?
a) Yes
b) No
Q.2While purchasing consumer durable which parameter influences you?
a) Price
b) Product featurec) Brand
d) Service
e) Durability
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Q3. From where you prefer buying consumer durables
a) Exhibitions
b) Co.shoppee
c) Showroom
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
a) Attractive Price
b) Service
c) Demonstrations
d) Offers
e) Convenience
Q.5.Which consumer durable you have and of which brand?
a) CTV -------------------
b) LCD -------------------
c) PLASMA -------------------
d) REF -------------------
e) WM -------------------
f) MW -------------------
g) AC -------------------
Q.6. How frequently you change your consumer durables?
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a) 1-3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
Q.7.Do you prefer any financing scheme to purchase consumer durables?
a) Yes
b) No
APPENDIX
A.S.I Area Service In charge
A.S.M Area sales manager
B.S.I Branch Service In charge
CAC Commercial Air Conditioning System
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C.S NET Customer Service Net
D.S.C. Direct service centre.
L.H.D Logistics Head of department
R.E.F Refrigerator