Documentos de Académico
Documentos de Profesional
Documentos de Cultura
RESEARCH REPORT
ON
Lucknow
ACKNOWLEDGEMENT
It is indeed of great moment to pleasure to express my senses of per found gratitude & indebt ness
to all the people who have been instrumental in making my tanning a rich experience. I got the
opportunity to do a challenging project in dealer. 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.
Practical study is the area which confirms the theoretical idea of a subject. Both are essential tool in
order to provide any marketing strategy, design implementation and their uses. The survey is
nothing but gathering data of any theoretical marketing strategy. These two aspects are in similarity
to the learning and knowledge.
I acknowledge the in depth guidance provided by Mr. Zubair Ahmed sir. They are provided us the
valuable information regarding RESEARCH METHODOLOGY.
I am also thankful for providing me the computer lab as when required in order to complete the
project in time
I feel very pleased to express my gratitude to all those people who helped me out during the
preparation of this project.
At last but not the least I would like to thanks to my friends and seniors for their valuable
suggestions and encouragement.
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PREFACE
A Research report has been incorporated in the PGDBM curriculum of “Institute Of Productivity
and Management” where the surveyor (student) has to apply all experience and knowledge, which
he has gained during his management study. A project gives training where the surveyor has to
prepare a synopsis by interpreting the data, which they received in the form of answers of his
questions, which he has prepared during his project work.
The student has to apply all his classrooms and practical study in such a way that they receives the
response as per there wish. As we are in the initial stage of our management study so this project
has helped us a lot and helped us to clearly understand the marketing behavior and to closely face
the marketing trends, which would help us in our near future, so that we can sustain ourselves in
adverse marketing situation and bring out a perfect solution whenever required.
So in this project, which was assigned to us , I have undertaken the survey on customer satisfaction
of LG products.
In Lucknow region. I have applied all my experience which I have gained during my study period.
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INDEX
Introduction…………...
………………………………………………..1
Company profile….……………………………….
…………………..2
Vision .
………………………………………………………………
……..7
Global
opportunities………………………………………………
…9
Slogan………………………………………………………
……………. 11
Mission………………………………………………………
……………15
Quality
innovation………………………………………………….
.16
5
Code of conduct of
LG……………………………………………..17
LG
India…………………………………………………………
………..19
objective……………………………………………………
…………...22
Research
methodology………………………………………......24
Data
analysis……………………………………………………
………27
Findings……………………………………………………
………….….38
Suggestions and
recommendations…………………….....39
Limitations…………………………………………………
……………40
Conclusion…………………………………………………
……………42
Bibliography………………………………………………
……………43
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INTRODUCTION
Customer behavior is the study of how he purchases, how he sells, how they get
feedback from consumers and after that he came to conclusion about particular
LG product. It is a subcategory of marketing that blends elements from
different fields. It attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics and behavioral variables in
an attempt to understand peoples wants. It also tries to assess influences on the
consumer from groups such as Family, friends, reference groups, and society in
general. By understanding the consumer, we will be able to make a more
informed decision as to which strategy to employee.
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History of LG company
About LG Group
The LG Group is South Korea's third largest conglomerate]] that produces electronics, mobile
phones, and petrochemical products and operates subsidiaries like LG Electronics, LG Telecom,
Zenith Electronics and LG Chem in over 80 countries. LG Group sponsors the LG Cup Go
Tournament.
LG Group founder Koo In Hwoi established Lak Hui Chemical Industrial Corp. in 1947.[3] In 1952,
Lak Hui (currently LG Chem) became the first Korean company to enter the plastics industry. As
the company expanded its plastics business, it established GoldStar Co., Ltd., (currently LG
Electronics Inc.) in 1958.
In 1959, Goldstar produced Korea's first radio. Many consumer electronics were sold under the
brand name GoldStar, while some other household products (not available outside South Korea)
were sold under the brand name of Lucky. The Lucky brand was famous for its hygiene products
line such as soaps and Hi-Ti laundry detergents, but most associated with its Lucky and Perioe
toothpaste.
In 1995, it was renamed "LG", the abbreviation of "Lucky GoldStar". More recently, the company
associates its tagline "Life's Good", with the letters LG.
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About LG Company
Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in
consumer electronics, home appliances and mobile communications, employing more than
82,000 people working in over 110 operations including 81 subsidiaries around the world.
With 2007 global sales of USD 44 billion*, LG is comprised of four business units - Mobile
Communications, Digital Appliance, Digital Display and Digital Media. LG is the world’s
leading producer of CDMA/GSM handsets, air conditioners, front-loading washing machines,
optical storage products, DVD players, flat panel TVs and home Theater systems.
LG has created reputation for progressive technology and innovation with the release of some
of the latest technological developments in consumer electronics, home appliances and IT
products. For example, LG is currently the world's number one manufacturer of plasma display
modules. LG Electronics' goal is to enable the intelligent networking of digital products that
will make consumers' lives better than ever.
LG Electronics has established itself as a major international sports sponsor with partnerships
including the LG Super Racing Weekend touring cars tournament in conjunction with
Eurosport and the ICC cricket tournaments for example the ICC Trophy in England 2004 and
the Cricket World Cup 2007. In 2005 LG are proud to sponsor all of ITV’s Formula 1 coverage
for the duration of the 2005 F1 season. For more information, visit the sponsorship page.
2005 will see LG strengthen our range of large screen, HD and Digital Ready Plasma and LCD
TV’s. Our TV products are not just leaders in technology and innovation but also offer sleek
design and style, our TV products really will be the centre of attention this year.
This year our Digital Appliances will reinforce our presence in the UK in 2005. New and
unique products will see us playing a major role in the home appliances market. Flagship
products that will lead our ranges include a stylish Side by Side Refrigerator with built in LCD
TV, large capacity Direct Drive Washing Machines, round cavity Microwaves and new
Vacuum Cleaners with multi-cyclonic technology.
Also new in 2005 are LG’s stylish and innovative 40 & 80 series LCD Monitors and a growing
Corporate Office LG House, 250 Bath Road, Slough, Berkshire, SL1 4DX
Tel: 01753 491500
Fax: 01753 693 061
URL: http://uk.lge.com
Vision
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LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital
—ensuring customer satisfaction through innovative products and superior service while aiming to
rank among the world’s top three electronics, information, and telecommunications firms by 2010.
On our way, we hold tight to a philosophy of “Great Company, Great People,” underscoring our
belief that only great people can create a great company.
LG strives for greatness in what we’ve identified as our three core capabilities: Product Leadership,
Market Leadership, and People Leadership—each strength a key part of realizing our growth
strategies for “fast innovation” and “fast growth”.
VISION
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GROWTH STRATEGY
CORE COMPETENCY
CORPORATE CULTURE
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.
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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
Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
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,
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f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors
Digital media
SLOGAN
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The LG Electronics Life's Good signature consists of the LG logo, seal, and the
slogan, "Life's Good" set in Charlotte sans typeface curved around the LG symbol.
The curving of the slogan reinforces LG's personality and uniqueness. The consistent
usage of this signature clearly establishes the unique identity of the company and
unifies every division and product from LG Electronics across the globe.
THE SYMBOL
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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 LG’s efforts
to keep close relationship with our customers around the world.
The circle symbolizes The Globe. The stylized image of a smiling face in the symbol conveys
“Friendliness and Approachability”. The one eye on the symbol represents “Goal-oriented, Focused
& Confident”.
The slogan of LG is “Life’s Good”. It expresses “Brand’s Value, Promises, Benefits, Personality.
THE PARTNERSHIP-----
This culture is necessary for LG Electronics as it strives to become one of the world's top
companies. Such a relationship is transformed into a value-creation relationship whereby both
parties endeavor to address mutual problems and create new values together.
LG BRAND IDENTITY:-
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The brand of LG is delightfully smart. LG strives to enhance the customer’s life and lifestyle with
intelligent features, institutive functionality and exceptional performance.
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
1. Reliable products
2. Simple design
3. Ease of use
4. Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer through
1. Trustworthy, Considerate
2. Practical, Friendly
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to learn more and more to
develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels of employees.
There is transparency between the work and mutual understanding between all the employees.
A carrier is highly growing in LG and one who is the employee can develop their carrier largely. A
new comer will feel fully comfortable in the company and for a new comer the company is very
helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who want to join in LG.
The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples
of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through leadership.
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The fundamental policy of development is to secure product leadership that the Customers may
have the utmost satisfaction.
Product Leadership
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
Quality Innovation
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The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero
defects.
“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed through fair
management practices and constantly developing our business skill.
3 Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
• Environmental Conservation
Strengths:-
Strong desire among the employees to improve the existing system and procedure;
Opportunity:-
In India the penetration level of white goods is lower as compared to other developing
countries.
Rapid urbanization.
Threats:-
Cheap imports from Singapore, China and from other Asian countries
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Numbers of competitors
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 facility at Greater Noida, near Delhi, in 1998, with an
investment of Rs 500 Crores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India.
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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.
LG Electronics is continually providing, superior technology products & value for money 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.
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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 catering to 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.
India challenges
The challenges faced by LG when entered in Indian market
OBJECTIVES
1. To find out the dealer satisfaction with the consideration of Customer value.
2. To determine the role of media in marketing awareness ofexisting and its latest innovative
technology.
3. To identify the factor and features by which a consumer influenced to buy the LG products.
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The objective was to find out the dealer satisfaction of LG products, role of media in marketing
awareness of LG products from dealers and the services they are getting from LG so that if any
problems then can be resolved to increase the sale.
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RESEARCH METHODOLOGY:
DESCRIPTIVE RESEARCH:
Descriptive research includes surveys, fact-findings enquiries of different kinds. The major purpose
of this research is description of the state of affairs, as it exists at present. The main character of this
method is that the researcher has no control over the variables; he can only report what has
happened or what is happening. It also includes attempts by researchers to discover causes even
when they cannot control the variables. The method of research utilized in descriptive research is
DATA ANALYSIS
Q1-You are Customer Buying with the LG brands from?
5 years 10 50%
5 years
20%
5-10 years
50%
30% More than 10 years
Interpretation: - Above graph shows that half of the dealers selling from 5 years and rest of
them more than 5 years that means they are satisfied with company. So they are doing regularly.
TV 8 32%
Refrigerator 5 20%
AC 2 8%
Computer 4 16%
Mobile 2 8%
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TV
8%
16% 32% W.M.
Refr
8% A.C.
Computers
20% 16%
Mobile
Interpretation:-This chart is showing that %age of sales of TV is 32% which is more than that of
others. It means the selling of TV is more than that of other LG products
Jan-March 3 15%
Apr-June 9 45%
July-Sep 1 5%
Oct-Dec 7 35%
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selling of product
15%
35% jan-mar
apr-june
july-sep
oct-dec
5% 45%
Interpretation:-This chart is showing that in the month of April to June the sales of LG products
is very high than that of other which is 4%.it mean it may after that in the month of October to
December the sales of LG product is also more.
Quality 4 18%
Price 3 14%
Services 1 5%
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quality
5% 18% price
sales promotion
14% activities
54% brand image
9%
services
Interpretation:-Brand image is influenced most of the people to purchase the consumer durable.
very satisfied
15% 10%
20% somewhat
satisfied
somewhat
dissatisfied
55%
very dissatisfied
Interpretation: - the dealers are not getting the credit facility by the LG which make them more
dissatisfied.
Q6. Media plays an important role of making the awareness of the product. What do you think?
Percentage No of respondents
20%-30% 1
30%-50% 4
50%-70% 9
70%-90% 6
35
5%
30% 20% 20%-30%
30%-50%
50%-70%
70%-90%
45%
Q7. What are the factors in media which makes the consumer more attentive towards the new,
improved and innovative products and technology?
Television 17 59%
Internet 2 14%
Magazine 1 3%
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Hoardings 2 7%
% of respondents
3% 7% television
14% news paper
intrnet
59% magazines
17%
hoardings
Interpretation: - the factor in media which makes the consumer more attentive towards the new,
improved and innovative products and technology is Television which plays important role in
advertisement in comparison to others.
Q8. Are you satisfied with the promotional activities of the company?
Very dissatisfied 0 0%
37
%of respondents
very satisfied
25% 0% 10%
somewhat
satisfied
somewhat
dissatisfied
65%
very dissatisfied
Interpretation:-This chart is showing that most of the dealers are somewhat satisfied with the
promotional activities of the company because the %age of somewhat satisfied is more than that
of other which is 65 % and 25% dealers are somewhat dissatisfied also.
5 to 10 lac 9 45%
10 to 15 lac 5 25%
10% 20%
>5 lac
25%
5-10 lac
10-15 lac
<15 lac
45%
Interpretation:-By this chart we have come to know that the area where we have done survey the
%age of annual income of dealers is more within the limit of 5 to 10 lac and after that the %age
of 10 to 15 lac takes place.
Satisfied 3 15%
Very dissatisfied 0 0%
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%age of respondents
very satisfied
25% 0% 15%
somewhat
satisfied
somewhat
dissatisfied
60%
very dissatisfied
Interpretation:-By this chart we have come to know that 60%of dealers are some what satisfied
with the distribution system of LG Company but 25% people are somewhat dissatisfied also and
only 15% dealers are satisfied with the distribution system of company.
RESEARCH FINDING
Most of the revenue generated by LG TV in the comparison to its others products.
With this research we find that the awareness about the LG products is more.
The role of media is very effective in making people aware about the LG brand specially
Television plays an important role to influence the peoples.
So we found that the products are many more with the dealers but the demand of Television
is very high as selling of TV is much more than that of others.
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After analyzing the data we find that LG having a good position in the market and almost
taking advantages in every area as compared to the other brands.
We also get that customers get influenced by various factors and make their buying
decision. The most influencing factor is brand image and advertising is the second
influencing factor in buying decision.
By calculating the display share I found that in most of store LG has 50% display share
almost all categories.
I also came to know while visiting showrooms that there was a big problem concerning
after
sales service.
• Company should provide credit facility to the dealer in a better way by which they can
increase their sale
• Dealers should consider the demand of people time to time so that they come to know
what people want in a particular period of time.
• LG needs to mend and maintain its service network and adopt a good pricing strategy.
LIMITATIONS
• No of dealers were very less in Meerut so we had to reduce our sample size.
• Sample size could be more so that the better results could come.
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From 21th feb. to 09th march a consumer exhibition was organized at the college of Engineering
ground. The exhibition was sponsored by Sakal group in which number of companies participated.
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CONCLUSION
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Coming to home from a tiring job and then to open the wardrobe just to bad
smelling dirty clothes waiting to receive the delicacies of your hand can easily
draw tears from your eyes, but now an easy solution available in almost all
households is the presence of LG refrigerator.
My study found that, the dealers are somewhat satisfied with the LG Company
but some retailers are not satisfied by the company neither in the way of credit
facility nor by the distribution system of LG.
About the LG company I found that LG having a good position in the market in
terms of pricing but lacking badly in terms of its retailer satisfaction.
Customer gets to know more by the television and they are influenced to buy
new products by the unique products that are newly come to the market.
My study also found that there are various factor influencing customer in
buying decision and the most influencing factor is brand image and
advertisement and other factors play a secondary role in buying decision.
BIBLIOGRAPHY
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Websites:--
1.http://www.lge.com/about/sustainability/management_system.jsp
2. http://www.lg.net/about/history/history01.jsp
** http://www.lginnotek.com/ethics/english/Justice/JusticeAct/LGrule/LGrule_main.htm