Marketing Strategy of LG PROJECT

A Project Report On MARKETING STRATEGIES OF LG ELECTRONICS INDIA LTD.

“PROJECT SUBMITTED FOR THE PARTIA P ARTIAL L FULFILLMENT TOWARDS THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION ADMINISTRA TION IN APPLIED MANAGEMENT”

Under Supervision of: Mr. Narendra Singh A!A"   No.$%$&'&&&()

Submitted by: LALIT KUMAR #nr.

DIRECTORATE OF DISTANCE EDUCATION,

ANNAMALAIUNIVERSITY, 2!!

ii

FORM OF SU"MISSION OF PRO#ECT  Name of the student Enrolment number  Program with subject

LALIT KUMAR YADAV $%$&'( M"A )n App*)e+ Mn-eent (Customer Relationship

management,Mercentile

Period of stud. Address of the candidate

And Commercial Law, Project Management, ales Management, Product And !rand Management, Mar"eting of er#ice $ MAR&E%'N %RA%A) *+ L ELC%R*N'C / ) ear s LALIT KUMAR YADAV, S/O S0RI RAG0UVEER SING0 YADAV, MO01 S0RI NAGAR, PIPAL C0O3K, MAT0URA ROAD, 0AT0RAS, POST 4 DISTT1 0AT0RAS, 0AT0RAS12$!! 0AT0RAS12$!! 5U.P.6 Mb0 123 2/42536/24

 Name of the guide

Mr. NARENDRA SING0

7esign 7esignatio ation n with with e8per e8perien ience ce

TERRITORY SALES OFFICER  MARKETING 7 YEARS 9RA!:' %RA7'N C*MPAN)

%itle of the project

Address of the uide   5OFFICIAL6

;<=3/4, ARAN NAAR, *PP0 >'%A !REA7 +AC%*R) NEAR RA?7EEP APPAR%MEN%, NE@ ARA, 7A)AL !A:, ARA/B/4

    (RE'7EN%'AL$

45/64326; (7/'12A NE3 LAS0KERPUR MUG0AL ROAD, KAMLA NAGAR, AGRA12827 &(!(!%22&

Dte o9 :;<)::)on o9 project

iii

*+a,e: student-----

Signature of the

!ate: uide-----..

Signature of the

DECLARATION I here here

by

de,+ de,+ar are e

that that

the the

pro/ pro/e, e,tt

repo report rt

enti entit+ t+ed ed

MARKETING

“  

STRATEGIES OF L.G. ELECTRONICS” Submitted me as a

part 0f My M.1.A. ++nd year of master of 1usiness Adminiatration 2App+ied Management3 To The NIS A,ademy4Agra.

2 Annama+ai University 5hennai 3

i#

Lalit Kuma !a"a#

E$.N%.&'&()(((*+

BATCH,-(()  -(//

ACKNO3LEDGEMENT This This repo report rt bear bears s the the impr imprin intt of many many pers person ons s 6ho 6ho have have he+ped me in numerous 6ays in 6riting this report. It gives me grea greatt p+ea p+easu sure re in pres presen enti ting ng this this repo report rt to the the “T01 “T01 NIS A2a"1m3”. I 6ou+d +i7e to ta7e this opportunity to e8,hange

my heart fu++ gratitude to a++ those 6ho he+ped me in presenting this report.

I 6ou+d +i7e to ta7e this opportunity to than7s  M. NARENDRA for prov provid idin ing g the the atte attent ntio ion4 n4 guid guidan an,e ,e44 ,ons ,onsis iste tent nt44 SINGH for en,ouragement and support I needed to ,omp+ete this pro/e,t. It stipu+ated time 6ith out his a,tive guidan,e.

I 6ou+d a+so +i7e to ta7e this opportunity to than7s a++ tea,hers tea,hers and fa,u+ty fa,u+ty members spe,ia++y for ,ooperating ,ooperating me a +ot in this pro/e,t and for providing providing advi,e to ma7e my pro/e,t pro/e,t more usefu+ and impressive.

#

My overriding debt is to my parents 6ho provided me mora+ support 9 inspiration needed to prepare prepare this report. report.

LALIT KUMAR YADAV M"A5AM6 **n+ Yer

CERTIFICATE

Certified that the “marketing strategy of L.G. electronics” Is work done by Mr./Ms. LALIT KUMAR YADAV during the period of his/her study under my guidance, and that the  project has not previously formed the basis for the award of any Degree, Diploma, associate ship, fellowship or similar other titles and that it is an independent work done by his/her. 

#i

Signature of the guide:  Place: Date: with seal: 

Name:   Official address

This This is cert certif ifyy that that Mr.Lalit Kumar Yadad,  Yadad,   a student of M.B.A. (AM) llnd year has done this project under my (Nare (N arendr ndraa Sin Singh)  gh)  supe upervis rvisio ionn .The .The titl itle of proj projeect is “Marketing strategies of L.G. Electronics”.  To the best of my knowledge this is his original work and has not been submitted for the award of any degree/diploma any where he has been a science student of this institute. I wish him all success in life. 

#ii

DATE: PLACE:

Mr.Narendra Singh  

#iii

E=E=UTIVE SUMMARY This report is an ana+ysis of the Mar7eting Strategies of L. L is a Mu+tinationa+ 5ompany having its presen,e a++ over the 6or+d. A thor thorou ough gh stud study y of L #+e, #+e,tr tron oni, i,s4 s4 ho6 ho6 it ,ame ,ame into into e8is e8iste ten, n,e e 9 operations of L #+e,troni,s India4 has been presented a+ong 6ith an Indian industry ana+ysis.  Ana+ying the ,ompany in the ba,7drop of the Indian ;ome #+e,troni,s 6as 6as ,ons ,onsid ider ered ed to be impo import rtan antt be,a be,aus use e it is a high high+y +y ,omp ,ompet etit itiv ive e mar7et and it is very important to 7no6 6here a ,ompany stands in this industry. There after an intense study has been done into L
P%"u2t, ;igh+ights the addition and ,hange in the produ,t range of the ,ompany and the signifi,an,e of ea,h of its i ts produ,t +ines. basis used for for pri,ing and and ho6 the produ, produ,ts ts have been been Pi2i$4, The basis pri,ed.

Pla21, The 7ind of distribution net6or7 used to mar7et its produ,ts. P%m%ti%$:  A++ the promotion a,tivities to promote the ,ompany
i8

>indings and re,ommendations have been dra6n 7eeping the industry and ,ompany ana+ysis in mind. raphs 9 Tab+es have been in,+uded in the data ana+ysis ,hapter.

8

ACKNOWLEDGEMENT etting a pro/e,t report ready re=uires the hard 6or7 and effort of many peop+e. >irst of a++4 I gratefu++y a,7no6+edge the ,ontinuous assistan,e and inspiration given to me by the >a,u+ty of Rohini4 ?IMS. Spe,ia+ than7s to 5555555555555555555555    for her inva+uab+e support  5555555555555555555555  for and guidan,e during my training period and supervising my 6or7.  A+so I 6ou+d a+so +i7e to than7 a++ those 6ho have ,ontributed in ,omp+eting this pro/e,t report. >ina++y4 I 6ou+d +i7e to than7 my fami+y for providing me monetary and non@monetary support4 as and 6hen re=uired4 6ithout 6hi,h this pro/e,t report 6ou+d not have been ,omp+eted.

8i

TABLE OF CONTENTS C0a6t1 /, I$t%"u2ti%$

(/7&)

. 0vervie6 of the Industry

&

.B *rofi+e of the 0rganiation

B

.) *rob+ems of the 0rganiation

$B

.$ 5ompetition Information

$$

.C S.D.0.T. Ana+ysis of the 0rganiation

$E

C0a6t1 -, O8912ti#1 : M1t0%"%l%43

;(7;+

B. Signifi,an,e of the study

C&

B.B Manageria+ usefu+ness of the study

C&

B.) 0b/e,tives of the study

C&

B.$ S,ope of the study

C

B.C Methodo+ogy

C

  Li Limitation

C)

C0a6t1 +, C%$216tual Di<2u<
;&7=-

C0a6t1 &, Data A$al3
=+7==

C0a6t1 ;, Fi$"i$4< : R12%mm1$"ati%$<

=)7)&

A$$1>u1

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C0a6t1  / INTRODUCTION

/./ A PRE?IEW TO THE INDUSTR! T" perhaps is a most po6erfu+ media today in India. The so,io e,onomi, impa,t of this media in a ,ountry +i7e India is tremendous. The e8tensive use of the media as a po6erfu+ too+ for entertainment information and edu,ation by other ,hanne+ o6ners added impetus to this gro6th.  After +ibera+iation in ''4 one sa6 a +ot of p+ayers in the #+e,troni,s mar7et due due to 6hi, 6hi,h h in,r in,rea ease se in the the #+e, #+e,tro troni ni,s ,s that that boos booste ted d the the sa+e sa+e of home home #+e, #+e,tr tron oni, i,s. s. Afte Afterr +ibe +ibera ra+i +iat atio ion n boug bought ht itse+ itse+ff a dram dramat ati, i, ,han ,hange ge in the the ,ompetitive stru,ture of the mar7et. Ana+ying the mar7et stru,ture one finds that +ong@term dominan,e of Mou+ine84 1raun4 *hi+ips4 5rompton4 Ina+sa4 1a/a/ et,. The ,omings of the MN5s have resu+ted in a de,+ine in profit margins for the domesti, p+ayers. Most of these MN5s started operations in ''B and by '')4 had some infrastru,ture in p+a,e. Some of them started 6ith fu++y o6ned subsidiaries and some 6ent in for a tie up 6ith domesti, p+ayers. >or e.g.4 1raun estab+ished themse+ves in '''@'%F Mou+ine8 in ''BF *hi+ips in ''$@'CF Ken6ood4 L4 Softe+4 fo++o6ing in '''@'%F L in ''B. The entry of these mu+tinationa+s ,hanged the mar7et. As a first step4 they started to set up distri distribut bution ion and servi, servi,e e net6o net6or7s r7s.. Simu+t Simu+tan aneou eous+y s+y they they ,on,en ,on,entra trated ted on in,rea in,reasin sing g the visibi+it visibi+ity y of their their produ, produ,ts ts in the shops shops of the dea+ers dea+ers they they

3

appointed appointed.. They +aun,hed te,hno+ogi,a++y te,hno+ogi,a++y advan,ed advan,ed mode+s mode+s 6ith attra,tive attra,tive pri,e tags4 7eeping the dea+ers margins inta,t to he+p push the produ,ts. Indian ,omp ,ompan anie ies s that that 6ere 6ere ,omp ,omp+a +a,e ,ent nt ear+i ear+ier er44 fe+t fe+t the the heat heat.. Afte Afterr some some =ui, =ui,7 7 rethin7ing they +aun,hed ne6 mode+s at attra,tive pri,es. !espite a++ this the Indian ,ompanies have remained strong. The rate at 6hi,h foreign brands are gro6ing is on+y due to the fa,t of a dynami, business environment. !omesti, #+e,troni,s firms are guided by ob/e,tive of ma8imiing short run profit rather than +ong term gro6th and the firms< ,ompetitive strategy is guided by produ,t differentiation and pri,e manipu+ation@Ina+sa
/

The domesti, p+ayers have a B$H mar7et share. MN5s have managed to grab a %(H in a very short span. #ar+ier this 6as ':(. The mar7et +eaders ,urrent+y in the #+e,troni,s industry are 1a/a/ and 5rompton 6ith H and )H share respe,tive+y in B&&E@B&&'. #ar+ier ti++ B&&&@B&& these t6o +eaders had shares of $$H and C$H respe,tive+y. #ven today4 1a/a/ is ,onsidered to be the mar7et +eader. Ma9% Pla31<

!omesti,

,

5rompton4 1a/a/4 *hi+ips4 1+a,7 and !e,7er.

Internationa+

,

L4 Ken6ood4 1raun4 Mou+ine84 L4 Ina+sa4 ?"5

5urrent+y the four ma/or p+ayers in the mar7et are

1A?A?

H mar7et share

L

EH mar7et share

*hi+ips

'H mar7et share

Mou+ine8

BH mar7et share

Ken6ood

H mar7et share

These >ive p+ayers ,over (H of the mar7et.

;

Ma@1t <0a1< i$ t01 +(((((( u$it< ma@1t -(() a1, Cu1$t S21$ai%, The re,ent he+p age e8tempo has spurred a sudden gro6th

Bla2@ a$" D12@1 '

S01i1l" //

Ot01< //

LG =

C%m6t%$ )

Ba9a9 //

P0ili6< /)

K1$%%" //

1l12t%lu> /-

in the ?ui,er Mi8er rinder segment. The segment gre6 by $$H in August B&&' over the same period +ast year.  August B&&' a+so sa6 the highest sa+es during the one@year period Apri+ B&&C to Augu August st B&&' B&&'.. The The 6or+d 6or+d he+p he+p age age e8te e8temp mpo o have have been been a trigg trigger er but4 but4 under+ying this boom is the story of mar7eting te,hni=ues by the MN5s.

6

The The ne6 ne6 MN5 MN5 ;ome ;ome #+e, #+e,tr tron oni, i,s s bran brands ds are are on a ro++ ro++ arme armed d 6ith 6ith +ate +atest st te,hno+ogy4 aggressive mar7eting and advertising budgets. These ,ompanies are ,apturing a signifi,ant share of the Indian ;ome #+e,troni,s mar7et. In terms of sa+es and mar7et share Indian ,ompanies sti++ o,,upy the top s+ots but MN5s are s+o6+y gaining ground. These MNC< 0a#1 6%t1m6%

Ba9a9 +.(E

S01FFi1l" /(.(E Ot01< /+.(E

 

I$al
K1$%%" =.(E C%m6t%$ ;.(E

M%uli$1> /&.(E LG ;.(E

P0ili6< /).(E

4

 A,,ording the +atest survey ,ondu,ted by 0R@#K for ?u+y B&&C4 the he+p age e8tempo driven spurt in ;ome #+e,troni,s sa+es appears to have spi++ed over to ?u+y<&'.

Top ( ?& @ere L

B%H

*hi+ips

BEH

Mou+ine8

%H

Seeing the figures for May
*hi+ips

(H

Ken6ood

%H

Mou+ine8

EH

Ina+sa

'H

L

'H

5rompton

$H

1a/a/

(.CH

0thers

BH

L

'H

1raun

%H

TOSTERS

India has been one of the rapid+y e8panding mar7ets for Toasters for the past ,oup+e of years. The Indian mar7et has ,onsiderab+e demand potentia+ for this produ,t.

5

This attra,ted most of the ma/or mu+tinationa+ p+ayers. The entry of p+ayers su,h as L4 Mou+ine8 and 1raun had the effe,t of ga+vaniing the industry. The industry p+ayers as a ,onse=uen,e are gearing up for both the ,ustomers and the ,ompetition.

The Toasters industry ,an be broad+y ,+assified into $ segments: a. 5oo+ body

,. 1ag 1ody

b. Sheet meta+

d. *op@up@toasters

5oo+ body4 1ag body4 Sheet Meta+ are Sand6i,h toasters and pop@up@toasters are use for 5risping. The 5oo+ body and *op@up@toasters segment is the +argest in terms of va+ue4 a,,ounting for an estimated Rs.B ,rores. This segment has been the fastest gro6ing amongst the +ot4 6ith a gro6th rate of EH or so in B&&'@&. The 6or+d over4 sa+e of 5oo+ body dominates the tota+ shipments. In India4 ho6ever the sa+e of pop@up@toasters a,,ounts for a +arger share. ;o6ever this phenomenon has been ,hanging in the past ,oup+e of years. The demand for pop@up@toasters and Sand6i,h toasters main+y ,omes from house

<

ho+ds. ;ouse ho+ds are estimated to a,,ount for around EBH of the tota+ demand. The demand from the hote+ se,tor though it a,,ounts for a sma++er portion4 is the fastest gro6ing segment. A+so4 a +arge portion of the demand from this segment@around (H re+ates to buyers of se,ond units. The demand for Toaster is genera++y restri,ted to ma/or ,ities and to6ns. #ight ,ities 6hi,h in,+ude the four metros are estimated to a,,ount for %BH of the tota+ househo+d demand. !e+hi and Mumbai a+one is estimated to a,,ount for one@third of the tota+ industry sa+e to househo+ds. The ma/or p+ayers in the mar7et for Sand6i,h Toasters are 1a/a/4 Mou+ine84 1raun4 *hi+ips4 Ken6ood4 Ina+sa4 L4 5rompton. There are a+so a host of other sma++er p+ayers su,h as 1+a,7 and !e,7er4 Su/ata4 Usha et,. The Sand6i Sand6i,h ,h toaste toasters rs segme segment nt is ho6eve ho6everr domina dominated ted by Usha4 Usha4 La8man La8man S+yvania though L is ma7ing a +arge head6ay into this segment too. The *op@up@toaster mar7et is dominated by *hi+ips.

S01FFi1l" *./E

Ot01< /+.&E

M%uli$1> /=.-E

I$al
B Bau$ -/.-E

P0ili6< -=.;E

Ma@1t <0a1< i$ t01 =(((( u$it< ma@1t R1tail -(()

WHITE WHITE GOO GOODS DS Mi>1 Mi>1 Gi$"1 Gi$"1 : Citu< Citu< Jui21, Jui21, A PRE?IE PRE?IEW W OF THE THE INDUSTR!

The 6hite goods industry is 6itnessing dynami, ,hanges. A,=uisitions of units by some4 some4 e8its e8its by a fe6 others others44 mar7et mar7eting ing tie@up tie@ups4 s4 ,apa, ,apa,ity ity e8pan e8pansio sions4 ns4 booming vo+ume gro6th in the first si8 month of B&&'@& a++ these ,hanges are the ,hara,teristi,s of the industry. Mi>1 Gi$"1, Mi8er rinder a,,ounts for the +argest segment in the 6hite

goods industry. It ,an be ,+assified into: a. !o !omes mesti, Mi8er r rinder

i. Th Three ree at atta,hment 6i 6ith $$& 6at 6attts

b. Industria+ rinder

i. Three atta,hment 6ith CC& 6atts

!omesti, grinder industry 6ith a turnover of $& ,rores is dominated by the organied se,tor. The sie of the industry is about B.C mn units. This industry has benefited from the ,onsumers buying prefer5reated by MA;A?AN RA*;I5Sen,es. After a T" and Toasters4 the most +i7e+y produ,t on the buying +ist 6ou+d be a Mi8er rinder. This has resu+ted in a higher penetration +eve+ for Mi8er rinder.

2

 After a good year in B&&E4 the sie of the Mi8er rinder segment ,ontra,ted in B&&. This trend has reversed in B&&E@&'. In the first si8 months of B&&E@&'4 the vo+ume gro6th 6as in doub+e digits i.e.4 i .e.4 BCH. The rinding mar7et ,onsist of $$& 6atts and CC& 6atts mode+s 6hi,h has the fo++o6ing demand: $$& 6atts@ CH of the demand for refrigerators. CC& 6atts GECH of the demand for refrigerators. The a,tion is s+o6+y moving to6ards CC& 6atts mode+s of the grinding segment. 5ompanies are steadi+y upgrading the e,onomy mode+s ,apa,ity from $$& 6atts to CC& 6atts. The CC& 6atts Mi8er rinder segment has been gro6ing faster than the $$& 6atts segment in re,ent past. The s+o6er rate of gro6th of $$& 6atts mode+s for,ed for,ed 5rompton 5rompton to fina++y fina++y +aun,h +aun,h CC& 6atts mode+s in 0,t<'(. 0,t<'(. 1oth Usha and *hi+ips made signifi,ant inroads in B&&%. *hi+ips and Ina+sa ,ontinue to be the mar7et +eader in the CC& 6atts segment a+th a+thou ough gh its its mar7 mar7et et shar share e has has ,ome ,ome do6 do6n. In the the $$& $$& 6att 6atts s segme egment nt44 5rompton ,ontinues to be the +eader. ;o6ever the year B&&' sa6 the entry of many >ran,e and Korean ,ompanies.  A++ these ,ompanies have entered in the CC& 6atts and above ,apa,ity ni,he

3

segment that ,an be imported in fu++y assemb+ed form and 6here margins are high higher er.. The The entr entry y of thes these e gian giants ts has has open opened ed up an enti entire re+y +y ne6 ne6 and and te,hni,a++y superior segment ,omprising $$& 6atts rinding. The g+oba+ giants +i7e Ina+sa4 Mou+ine84 1raun4 *hi+ips4 L have entered the Indian mar7et 6ith their internationa+ range of produ,ts. There has been signifi,ant e8pansion in ,apa,ity in this industry. Ina+sa4 p+ants at ;aryana and Mou+ine8 p+ants 6ere ,ommissioned re,ent+y 6ith ,apa,ities of )&+a,s 9 C +a,s units respe,tive+y. The e8,ess ,apa,ity in the Mi8er rinder industry has deterred p+ayers su,h as Usha4 1a/a/ and L from going ahead 6ith their p+ans. This has +ed to ,ertain mar7eting tie@ups 6hi,h Usha4 1a/a/4 Su/ata and L have ta7en advantage of. 1oth L are outsour,ing Mi8er rinder from *o+ar manufa,turing fa,i+ity4 6hi+e Mou+ine8 and 1raun are sour,ing Mi8er rinder and 5itrus /ui,er from 5hina respe,tive+y. Ma@1t <0a1< i$ t01 =(((( u$it< ma@1t &&( att<  ;;( att< i$ 61 21$t -(().

33

K1$%%" //.&

2%m6t%$ =.=

Ba9a9 /.=

Ot01< ;.-

S01i1l" =.= U<0a ;.'

Bau$ /-.+
M%uli$1> /'.*

Citu< Jui21 , The sie of the 5itrus ?ui,er industry is sma++ ,ompared to the

Mi8er rinder industry4 at around $$4&&& units. The psy,he of the ,onsumer 6ho +oo7s at 5itrus ?ui,er as a +u8ury produ,t and the infrastru,tura+ prob+ems su,h as the non@avai+abi+ity of e+e,tri,ity has been the ma/or hindran,es for the gro6th of the industry.  After a good year in B&&E4 the sie the 5itrus ?ui,er segment ,ontra,ted in B&&'. The trend has reversed in B&&'@&. In the first si8 months of B&&'@&4 the vo+ume gro6th 6as in doub+e digits i.e.4 gro6th of B(H. There are t6o types of 5itrus ?ui,er in this segment: a. ;a+f +tr  b. 0ne +tr 

3/

*hi+ips has mar7et share of CCH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is: ,. ;a+f +tr

BBH

d. 0ne +tr

%EH

*hi+ips is the +eader in both ha+f and one +tr. Segments. The ,ompany
5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of 5itrus ?ui,er. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of 5itrus ?ui,er 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+iation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over )&H in the ne8t fe6 years from the present gro6th rate of (H.

3;

Ma@ Ma@1t 1t <0a <0a1 1 i$ t01 t01 &&( &&((( ((7u 7u$i $itt ma@ ma@1t 1t 0al 0al lt lt  %$1 %$1 lt lt i$ 61 61 21$t 21$t -(().

Ba9a9 Bau$ +.* ;.;

S01i1l" *.+

Ot01< *.;

M%uli$1> /&.*

P0ili6< &(.'

K1$%%" +.* I$al
Ju4 K1tt1l: The sie of the ?ug Kette+ is +arge ,ompared to the 5itrus ?ui,er

industry4 at around %'4&&& units. The psy,he of the ,onsumer 6ho +oo7s at ?ug Kette+ as a +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry.  After a good year in B&&C4 the the sie the ?ug Kette+ segment segment inf+ated in B&&'. The trend has reversed in B&&'@&. In the first si8 months of B&&'@&4 the vo+ume gro6th 6as in doub+e digits i.e.4 gro6th of BEH. There are t6o types of ?ug Kette+ in this segment:

36

a. Dith ,ord b. 5ord+ess *hi+ips has mar7et share of $%H in B&&E4 dominating the mar7et. The demand for the above types in the mar7et is: ,. Dith ,ord BH d. 5ord+ ord+e ess EEH *hi+ips is the +eader in 6ith ,ord and 5ord+ess segments. The ,ompany
5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of  /ug Kette+. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of ?ug Kette+ 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+iation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing men and 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the

34

mar7et is e8pe,ted to gro6 by over )$H in the ne8t fe6 years from the present gro6th rate of EH. Ma@1t Ma@1t <0a1 i$ t01 ')((( u$it ma@1t it0 2%"  2%"l1<< 2%"l1<< i$ 61 21$t -(()

Bla2@ a$" D12@1  '.-E

Ot01< +./E

 

R1m<%$ '.-E

S01FFi1l" -(.*E

K1$%%" /(.+E

Bau$ //.+E

P0ili6< -=.)E

M%uli$1> //.+E

Hai D31<: The sie of the ;air !ryers industry is higher ,ompared to the

5itrus ?ui,er industry4 at around (E4&&& units. The psy,he of the ,onsumer 6ho +oo7s at hair dryers as a +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry.

35

 After a good year in B&&E4 the sie the hair dryers segment inf+ated in B&&C. The trend has in,reased in B&&'@&. In the first si8 months of B&&'@&4 the vo+ume gro6th 6as in trip+e digits i.e.4 gro6th of CBH. There are t6o types of ;air dryers in this segment: a. Thre Three e K G Mor More e po6 po6er er b. >our >our K G +o6 +o6 po6 po6er Nati Nation ona+ a+ has has mar7 mar7et et shar share e of $EH $EH in B&&' B&&'44 domi domina natin ting g the the mar7 mar7et et.. The The demand for the above types in the mar7et is: ,. Thre Three e K G More More po6e po6err ($H ($H d. >our >our K G Lo6 Lo6 po6e po6err

)(H )(H

Nationa+ is the +eader in both Three K and >our K segments. The ,ompany
*anasoni,4 1a/a/.

3<

5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of ;air ;air !ryer !ryer.. As +ong +ong as ,omp ,ompan anie ies s ,an ,an not not /ust /ustify ify the the prem premiu ium m prie pries s to ,ustomers4 +o6 pri,es of domesti, brands of ;air !ryer 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+iation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. Ma@1t <0a1 i$ t01 *=((( u$it ma@1t T011 K  F%u K i$ 61 21$t -(().

3B

Ot01< -.'E

P0ili6< /-E

S01FFi1l" 'E

Nati%$a -=E

Ba9a9 ;E K1$%%" *E Bau$ &E

M%uli$1> *E

S%$3 =E Pa$a<%$i2 &E

I%$, The sie of the Iron industry is +argest industry4 at around B +a,s units.

The psy,he of the ,onsumer 6ho +oo7s at Iron as a a++ ,+ass +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry.  After a good year in B&&E4 the sie the Iron segment inf+ated in B&&C. The trend has in,reased in B&&'@&. In the first si8 months of B&&'@&4 the vo+ume gro6th 6as in & time
32

b. !ry Iron ,. Ligh Lightt 6ei 6eigh ghtt Iro Iron n d. ;eav ;eavy y 6ei 6eigh ghtt Iron Iron *hi+ips has mar7et share of CBH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is: e. Stea Steam m Iron Iron

CBH CBH

f. !ry Iron

B$H

g. Light 6eight Iron

$H

h. ;eavy 6eight Iron

&H

*hi+ips and Nationa+ are the +eader in both Steam Iron and !ry Iron segments. The ,ompany
Usha4 5rompton and Kenstar. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of

/

;air !ry Iron. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of !ry Iron 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+iation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. Sti,7 1+ender: The sie of the sti,7 1+ender industry is medium industry4 at around BE4&&& units. The psy,he of the ,onsumer 6ho +oo7s at Sti,7 1+ender as a a++ ,+ass +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity 9 high speed 6or7 have been the ma/or advantages for the gro6th of the industry.  After a good year in B&&E4 the sie of the sti,7 b+ender segment inf+ated in B&&C. The trend has in,reased in B&&'@&. In the first si8 months of B&&'@&4 the vo+ume gro6th 6as in t6i,e i.e.4 gro6th of B$H. There are t6o types of sti,7 b+ender in this segment: i. Dith Dith atta atta,h ,hme ment nt G 6ith 6ith ,hop ,hoppe perr

/3

ii. Dithout atta,hment G6ithout ,hopper  Mou+ Mou+in ine8 e8 has has mar7 mar7et et shar share e of )EH )EH in B&&' B&&'44 domi domina nati ting ng the the mar7 mar7et et.. The The demand for the above types in the mar7et is i.

Dith at atta,hment

ii. Dithout atta,hment *hi+ip *hi+ips4 s4 1raun4 1raun4 Mou+in Mou+ine8 e844 is the +eader +eader in both both 6ith 6ith atta,h atta,hmen mentt 9 6ithou 6ithoutt atta,h atta,hmen mentt segmen segments. ts. The ,ompan ,ompany< y
Usha4 5rompton and Kenstar. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of sti,7 b+ender. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of sti,7 b+ender 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+iation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing

//

6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. R1ma@<, R1ma@<, !omesti, ,ompanies 6i++ have to gain a,,ess to +atest te,hno+ogy

from outside4 +aun,h ne6 produ,ts in =ui,7 su,,ession4 +everage their strong dea+er net6or7 and promote their produ,ts effe,tive+y to remain ,ompetitive in this this e8tr e8trem eme+ e+y y ,omp ,ompet etit itiv ive e mar7 mar7et et.. The The stra strate tegy gy used used by the the MN5s MN5s is te, te,hn hno+ o+og ogy y< and and they they have have posi positio tione ned d them themse se+v +ves es by offe offerin ring g supe superio riorr te,hno+ogy4 6hi,h the Indian ,ompanies have fai+ed to do so. >oreign brands hen,e are e8pe,ted to gain the mind spa,e of the pri,e dis,erning Indian ,onsumer in not very distant future.

/.- LG ELECTRONICS 7 CORPORATE PROFILE The US J%) bi++ion L group is one of the 6or+dran,en 6ar4 the

/;

Lu,7y< brand emerged as the representative brand of >ran,e4 offering dreams and and /oy to the impov impoveris erished hed >ran,en >ran,en e,onom e,onomy. y. L 6as 6as the first >ran,e >ran,en n ,ompany to ma7e ,osmeti,s and to enter the syntheti, resins industry. L estab+ished o+dstar< in 'CE4 opening the door to the home #+e,troni,sin >ran, >ran,e. e. Sin,e Sin,e deve+o deve+opin ping g >ran,e >ran,eran,en ;ome #+e,troni,sfor over four de,ades .L# 6as a+so the first ,ompany to produ,e the first e+e,troni, fan 1D te+evision. In '(&ran,en industria+ gro6th. Lran,en government and the organiation. The South >ran,en overnment guided the five ,haebo+s into different industries and produ,t +ines. In the the beginning of '%&ran,eran,en ,ompany to do so4 6hi,h served as a ba,7 bone for strengthening internationa+ ,ompetitiveness. 1y mid E&
/6

and ,ommuni,ation se,tor4 e8panded its resour,es and materia+s business promoted the gro6th of the industria+ e+e,troni,s and ,omponent e+e,troni,s indu indust stry ry44 stre streng ngth then ened ed its its fina finan, n,e e ,ons ,onstru tru,t ,tio ion4 n4 dist distri ribu buti tion on and and serv servi, i,e e business and e8panded its none profit business and sports sponsorshipF a++ of 6hi,h ,ontributed to enhan,ing the image of L group. L
short period the L brand 6as su,,essfu++y transformed. L# no6 meets the 6or+ds ,ustomer 6ith L brand. L is 7no6n as a premium =ua+ity brand 6ith more usefu+ fun,tions and produ,ts popu+ar for their superior design. LG< #i
The smi+ing smi+ing fa,e fa,e +ogo +ogo symbo symbo+i +ies es five five 7ey ,on,ep ,on,epts ts 6or+d 6or+d44 future future44 youth youth ;uman and Te,hno+ogy. L be+ieves that an effe,tive ,ombination of these e+emen e+ements ts for the organi organiat ation ion.. L# has been been e8p+o e8p+orin ring g 6ays 6ays to deve+o deve+op4 p4 ,ombine4 app+y te,hno+ogies that 6ou+d ,ustomie produ,ts and servi,es to

/4

meet ,ustomer needs and e8,eed their e8pe,tations L# is performing this tas7 by identifying its fo,us on R 9 ! ,entres. 0utside >ran,e4 L# has seven R 9 ! ,entres in ?apan4 United States4 Ire+and and Russia4 among other ,ountries and t6o R 9 ! ,entres in >ran,e. L#
The mu+tim mu+timedi edia a divisi division on hand+e hand+es s a range range of mu+tim mu+timedi edia a produ, produ,ts ts su,h su,h as ,ompu ,omputer ters4 s4 5!@R0M 5!@R0MS4 S4 0A e=uipm e=uipment ent inform informati ation on and ,ommu ,ommuni, ni,ati ations ons e=uipment4 opti,a+ data devi,es4 audio e=uipment4 "5R
/5

produ,ts be,ome more ,ommon in business operations. The division posted US J B.C bi++ion sa+es in B&&). H%m1 El12t%$i2< Di#i
This division is divided into t6o main produ,t ,ategories 6ith Air 5onditioners4 6ashing ma,hines4 refrigerators4 mi,ro6ave ovens4 va,uum ,+eaners et,. in the home #+e,troni,s ,ategory4 and the e+e,troni,s ,omponents ,ategory 6hi,h ma7es ,ompressors and motors for use in home #+e,troni,s. In B&&)4 this division posted US J ) bn in sa+es. The divisions< produ,ts have p+ayed a signifi,ant histori,a+ ro+e at L# and embra,e a so+id share of mar7ets throughout the 6or+d. The division has a,,e+erated its g+oba+iation strategy and has manufa,turing p+ants in seven ,ountries4 6hi,h has great+y enhan,ed overseas produ,tion and sa+es efforts. L#
/<

Mi,ro6ave Mi,ro6ave ovens are the +eading produ,ts in #urope #urope and North Ameri,a. Ameri,a. Air@ ,onditioner sa+es have in,reased tremendous+y 6ithin the +ast )@$ years and have re,eived a,,o+ades from ,ustomers in Afri,a4 Latin Ameri,a and #astern #urope. Di<6la3 Di#i
The !isp+ay division produ,es T" sets 2;ome #+e,troni,s34 5o+our *i,ture Tubes 25*T3 5o+our disp+ay Tubes 25!T3 Monitors 2MNT34 !ef+e,tion o7es 2!>3 and other disp+ay re+ated produ,ts and has gro6n rapid+y amidst +arge s,a+e s,a+e mar7et mar7et e8pans e8pansion ion.. The The !isp+a !isp+ay y !ivisio !ivision n is fighti fighting ng va+ian va+iant+y t+y as the ,ompetitio ,ompetition n intensifie intensifies s 6ith pri,e depre,iati depre,iation on due to ,ompetitor ,ompetitors s dumping dumping produ,ts. ;o6ever4 ;o6ever4 the division is standing firm in the mar7et and is re,ognied as high =ua+ity brand a++ a,ross the g+obe. Dith the 5hinese and Indonesia ,omp+e8es running fu++ s,a+e sin,e<'(4 a vast g+oba+ produ,tion net6or7 has been been ,rea ,reate ted. d. In the the turm turmoi oi++ of ,ons ,onsta tant nt+y +y risin rising g ta8e ta8es4 s4 the the divi divisi sion on sti+ sti+++ managed to boost sa+es in B&&& by USJ ).( bi++ion4 a B%H in,rease over the previous year. The ,ompany registered as the mar7et share +eader in over B& ,ountries throughout #urope4 Afri,a and Latin Ameri,a. L# has estab+ished fa,i+ities in B% ,ountries 6ith a g+oba+ net6or7 of C$ subsidiaries and offi,es 6ith C&4&&& dedi,ated emp+oyees.

/B

L is an estab+ estab+ish ished ed brand brand in more more than than % ,ountr ,ountries ies offeri offering ng futuri futuristi sti, , te,hno+ogy and ,ustomied produ,ts that de+iver u+timate satisfa,tion to the ,onsumers. L# is no6 in the pro,ess of forging its image as a +eading g+oba+ enterprise. The produ,ts that are manufa,tured g+oba++y in,+ude mu+timedia p+aye p+ayers4 rs4 "ideo "ideo 9 Audio Audio produ, produ,ts4 ts4 ;ome ;ome #+e,tr #+e,troni oni,s4 ,s4 Inform Informati ation on syste systems ms produ, produ,ts4 ts4 5ommun 5ommuni,a i,atio tion n !evi,e !evi,es4 s4 !isp+a !isp+ay y produ, produ,ts4 ts4 Magnet Magneti, i, re,ord re,ording ing Media4 #+e,tri,  #+e,troni, ,omponents. T01 T01 2%m6 2%m6a$ a$3 3< < $1 $1 6%" 6%"u2 u2tt t74 $1>t741$1 1$1at ati%$ i%$ "i<6la "i<6la3 3 "1#i21 "1#i21< < a< it< 2%1 2%1 6%"u2t 4%u6 . L# is a+ready re,ognied for its te,hno+ogy superiority in

digita+ digita+ te+evision te+evision and is ,hanne+in ,hanne+ing g appropriate appropriate resour,es resour,es into this ,ategory to a,hieve gro6th and +eadership position. oing oing for6ard4 for6ard4 LGE i< ma@i$4 41at
/2

LG< ?i
L #L#5TR0NI5S envisions a future 6here +ife is ,onvenient and p+easant 6here +iving spa,es are fu++ of happiness. And 6here the promise of the future 6e a++ dream of ,omes true. LG O8912ti#1<







 A,hieve gross sa+es of USJ%E bi++ion. Se,ure ordinary in,ome of ( per,ent of gross sa+es.  Attain a return on investment of C per,ent. per,ent.



1ui+d a brand reputation for tota+ satisfa,tion.



5reate 5reate more more ,omfor ,omfortab tab+e4 +e4 ,onv ,onveni enient ent homes homes e+e,tr e+e,troni oni,s ,s ,ompan ,ompanies ies .in every ,orner of our g+oba+ vi++age4 the ,ompany is dedi,ated to ,reating a better future for a++ ,onsumers4 6herever they may +ive.

;

LGE 6la$< t% 8uil" “DIGITAL 1  LG” a< it< 61mi1 8a$" ima41 a$" i< ma@i$4 2a1ul 616aati%$< t% ta@1 t01 21$t1
L
%he face made from the DLand Ds.mboliFes that human  beings are the central aspect of our business and e8presses the resolution to do our customers and ensure their satisfaction0

Re+ Co*or re)n9orce: n )-e o9 @rt n+ 9)*)r)t> @)t o;r -*o<* c;:toer:.

;3

LG< 7R : D

L# has estab+ished fa,i+ities in B% ,ountries 6ith a g+oba+ net6or7 of C$ subsidiaries and offi,es 6ith C&4&&& dedi,ated emp+oyees L# has reinfor,ed R 9 ! a,tivities in higher digita+ te,hno+ogy to get to the g+oba+ digita+ mar7et 6ith smart produ,ts that ,an simp+ify +ife. M%1 t0a$ * % t01 t%tal 1#1$u1< a1 <61$t %$ R : D 1#13 31a. B3 t01 31a -((= at l1a
L nurtur nurtures es its emp+oy emp+oyees ees44 obtain obtains s patent patents s for revo+u revo+utio tionar nary y produ, produ,ts ts and en,ourage R 9 ! a,hievement 6ith diverse in,entive. It
sensa ensati tion ona+ a+

prod produ, u,ts ts

performan,e to better your +ife LG7R:D ?i
;/

that that

6ith ith

de+i de+ive verr

outs outsta tand ndin ing g

. >o,us >o,us on performan, performan,e e ma8imiatio ma8imiation n based on on mar7et +eading +eading R 9 ! 2B&&&3 2B&&&3 B. 5reate 5reate g+oba+ g+oba+ +eading +eading produ, produ,ts ts 2B&&&@B 2B&&&@B&&B3 &&B3 ). Se,ure Se,ure te,hno+ogi te,hno+ogi,a+ ,a+ identity identity to +ead +ead the gro6th gro6th of L# 2B&&B@B&& 2B&&B@B&&C3 C3 R:D A66%a20 a$" "i12ti%$

. Se,u Se,ure re prof profit itab abi+i+ity ity base based d team team 6or7 6or7 6her 6here e busi busine ness ss and and te,h te,hno no+o +ogy gy be,ome one B. #nha #nhan, n,e e R 9 ! perf perfor orma man, n,e e to prom promot ote e prod produ, u,ti tion on of mar7 mar7et et driv driven en produ,ts. ). #n,ourag #n,ourage e busines business s mindset mindset of R 9 ! teams. teams. LG7Stat14i2 I$itiati#1<



R1"1
It is impo import rtan antt to reva revamp mp the the ,omp ,ompan any< y
;;

). The hea+th hea+th and and environme environmenta+ nta+ e=uipment e=uipment $. Ma/or Ma/or parts parts and and ,ompo ,omponen nentt se,tor  se,tor   And others by pursuing friend+y M 9 A
Gl%8aliati%$

L# p+ans to have five more regiona+ head=uarters in operation by B&&& and & by B&&E4 as resu+t4 L# hopes to raise its overseas sa+es by US J (&(n4 or E&H of its tota+ sa+es and in,rease its overseas produ,tion to %&H of its tota+ produ,tion.  A,=uiring promising differentiated te,hno+ogy entai+s beating the ,ompetition on gaining a footho+d in 7ey industries of future 6here ho+ding a ,ompetitive advantage is feasib+e. L# 6ou+d attra,t and ,u+tivate +eading individua+s in the ,ore te,hno+ogy fie+ds and estab+ish R 9 ! ,enters at ma/or regiona+ bases around the 6or+d and thereby boost te,hno+ogi,a+ ,o@ordination. 

Culti#at1 HPL< “Hi40 61%mi$4 l1a"1<

In order to produ,e ear+y and effe,tive management resu+ts great efforts 6i++ be made to train and foster the most promising management graduates. At +east BC& subsidiary +eaders 6ho are e8e,utive +eve+ or higher 6i++ be ,u+tivated and

;6

trained as spe,ia+ists on ne6 business deve+opment4 M 9 A4 ,ore te,hno+ogy and other areas. LG C%6%at1 Cultu1 “C%ut1%u< 8%u$"a3 l1<< a$" 1m6%1i$4”

The drive is to evo+ve a highenergy 1oundry+ess ,orporate ,u+ture4 6here inte++e,tua+ freedom is high4innovative thin7ing is va+ued and ,ross fun,tiona+ bonhomie ,reates a ,o++e,tive 6i++ to a,hieve goa+s. #mp+ #mp+oy oyee ee empo empo6e 6erme rment nt is the the righ rightt 6ay 6ay to go. go. Not Not on+y on+y are are the the peop peop+e +e empo empo6 6ered ered44 the the righ rightt peop peop+e +e are are empo empo6 6ered ered.. #.g #.g the the >ran >ran,e ,ens ns have have empo6ered the Indians@ the peop+e peop+e 6ho 7no6 the mar7et 6e++. LG 8a


5ompete in the internationa+ mar7et 6ith a g+oba+ mindset



Ma8imie va+ue for ,ustomers4 emp+oyees and shareho+ders



*ursue the best in the ,+ass through management by prin,ip+e<



5ontribute to so,iety through good ,orporate ,itienship.

LG Ma$a41m1$t P0il%<%603

;4

C1ati$4 ?alu1 % t01 Cu
the produ,ts and to serve the ,ustomers in every thing 6e do. Dith satisf satisfied ied ,ustom ,ustomers ers44 L 6i++ 6i++ natura natura++y ++y ,ontin ,ontinuou uous+y s+y and and ,onsis ,onsisten tent+y t+y innovate and deve+op to a,hieve our goa+ of providing the a+most va+ue per ,ustomers. Ma$a41m1$t Ba<1" E
va+ue va+ues s in a++ manage managemen mentt a,tivi a,tivitie ties. s. Manag Manageme ement nt based based on human human dignity he+ps us a,hieve a++ goa+s. *eop+e shou+d pra,ti,e ,ompany
;5

LG 7 LG  7 +D LOGO

CORPORATE CORPORAT E LOGO

;<

I"1$tii2ati%$ % t01 <3m8%l Ma@

Symbo+ mar7 is the most important e+ement of ,orporate identifi,ation system. It is the representative symbo+ of L# throughout the 6or+d. Symbo+ mar7 ,reat reates es a

unifie ified d

ment menta+ a+ imag image e

of

L# L#

ne,e e,essar ssary y in inte interrnati natio ona+ na+

,ommuni,ation. The symbo+ symbo+ mar7 mar7 6hi,h 6hi,h repres represent ents s the >a,e >a,e of >uture >uture in,orp in,orpora orates tes five five ,on,epts and sentiments of 6or+d4 future4 youth4 human and te,hno+ogy. The ,ir,+e 6ith the +etters L and  symbo+ies that human being are the most important aspe,t of our business and e8presses the reso+ution to do our best to maintain ,+ose ties 6ith our ,ustomers and to ensure their satisfa,tion. The red ,o+or reinfor,es an image of 6armth and fami+iarity 6ith our g+oba+ ,ustomers and high+ights L
1rand mar7 is the most important e+ement of brand identifi,ation system. It is the representative symbo+ of L# throughout the 6or+d. 1rand mar7 ,reates a unified menta+ image of L# ne,essary in internationa+ ,ommuni,ation. LG i$ I$"ia

;B

L #+e,troni,s India Limited 2L#IL3 is a 6ho++y o6ned subsidiary of L e+e,troni,s4 South >ran,e. The ,ompany 6as estab+ished in ?anuary B&&& after ,+earan,e from the >oreign Investment *romotion 1oard 2>I*13. Its ear+ier t6o attempts one in ''B and one in ''C had fai+ed. It first entered the ,ountry in ''B 6ith the o+dstar brand name se++ing ;ome #+e,troni,s
;2

These These entire entire produ, produ,ts ts bear bear the L brand brand name4 name4 6hi,h 6hi,h the ,ompa ,ompany ny has has de,ided to ,hange from its previous brand o+dstar around the 6or+d starting from B&&&. Today in a short span of B$ months4 L has t6enty si8 mode+s of ,o+our te+evision ranging from $ in,hes to (& in,hesF $ mode+s of +arge ,apa,ity Mi8er rinder ranging from %C +t to E'& +tF seven mode+s of 5itrus ?ui,er ranging from C.C 7gs to B& 7gsF nine mode+s air ,onditionersF three mode+s of mi,ro 6ave ovensF t6o "5!
6

,ondi ,onditio tioner ners s and C4&&4& C4&&4&&& && Mi,ro6 Mi,ro6av ave e ovens ovens per per annum annum.. The fa,i+it fa,i+ity y has started produ,tion sin,e Apri+ B&&. In the the <12%$ <12%$" " 60a<1 60a<1 from B&& to B&&C4 L e+e,troni,s 6i++ invest J B&& mi++ion 2Rs. C&& ,r3 to in,rease its e8isting ,apabi+ities in finished produ,ts and add ,apabi+ities to manufa,ture ,ompressors4 p+y ba,7 transformers4 motors and def+e,tion yo7es.  After setting up of L soft6are 5enter in 1anga+ore in '''4 L# a+so 6i++ set up an in house R 9 ! and A!"#RTISIN ,enter in India not on+y to train the Indian emp+oyees4 but a+so to serve foreign emp+oyees of L# in South #ast  Asia and Northern Afri,a. I$ i#1 31a< %m $% LGEIL ill 812%m1 %$1 % t01 2%l%<
the period ?an@?u+y
63

Today L#IL is regarded as one of the top home #+e,troni,s ,ompanies in India 20R@MAR Survey3. L#IL has E ,ompany o6ned and $& authoried servi,e ,entres a,ross the ,ountry 6here the servi,e engineers are avai+ab+e t6enty@four hrs throughout the 6ee7. The ,onsumer durab+e industry 6i++ ,ontinue to 6itness the gro6th in demand. The ,ompany 6i++ a+so have to ta7e a +eap for6ard by in,reasing the vo+ume of sa+es. It is e8pe,ted that in the ,oming years there 6i++ be stiffer ,ompetition. The ,ompany is ta7ing measures to redu,e ,osts and improve produ,tivity. Dith Dith emph emphas asis is on =ua+ =ua+ity ity and and impro improve ved d serv servi, i,e e to the the ,ust ,ustom omer ers s at an affordab+e pri,e4 the ,ompany 6i++ endeavor to gain additiona+ mar7et share.  A+so in vie6 of the +ibera+iation of the Indian e,onomy4 ,ompany
♦ L #+e,troni,s India Limited

♦ L Soft6are

♦ L 5hemi,a+s

♦ L 5onstru,tion

6/

P%"u2ti%$ Fa2ilit3

L#IL set up its $% a,res manufa,turing fa,i+ities at reater Noida in Apri+ B&&. B&&. Today Today the fa,tor fa,tory y ,huns ,huns out 6ashi 6ashing ng ma,hin ma,hines4 es4 ,o+our ,o+our te+evi te+evisio sions4 ns4 Toasters and mi,ro 6ave ovens. Mi8er Mi8er rinde rinderr is e8tern e8terna++y a++y sour,e sour,ed d from from A++6y A++6yn
LG< P%"u2ti%$ Ca6a2it3

6;

;ome ;ome

5o+ur T"
C&&4&&& units

Semi Automati, 5itrus ?ui,er

B&&4&&& units

 Air 5onditioners

&&4&&& units

Mi,ro 6aves

C&4&&& units

Mi8er rinder

#8terna++y sour,ed

Ma$ua2tui$4

 At its state of the art manufa,turing p+ant a,ute ,ost ,ontro+ has been on the agenda from day one. Some of the 6ays used to ,ontro+ ,osts at the p+ant are: a. >u++@o >u++@opti ptimi miati ation on of reso resour, ur,es es b. Smooth Smootheni ening ng the ,+o,7 ,+o,7 6or7 6or7 ,. Raisin Raising g the effi, effi,ien ient+y t+y of emp+ emp+oy oyees ees d. Minima Minima++ inve invento ntory ry +eve+s +eve+s..  At the p+ant4 it is made sure that there is no no 6astage of materia+ and every every thing must 7eep moving a++ the time. Sin,e money has time va+ue4 nothing that has hogged money shou+d +ie id+e for too +ong. Inventory is 7ept minima+4 for 6hi,h stri,t guide+ines are fo++o6ed re+igious+y a++ through the ,hain. The p+ant 7eeps no more than seven days sto,7 of materia+ from vendors and C@B& days of imported parts. 1ran,h offi,es must have4 at

66

the end of every month4 /ust $& per,ent of the re=uirement for the ne8t month4 6ith the rest being rep+enished by the Cth. 5ost ,utting has a+6ays been a high priority for L operations around the 6or+d. In 7eeping 6ith this aim4 the ,ompany has been trying to a,hieve mu,h +o,a+iation as possib+e4 as fast as possib+e. At 61<1$t t01 a#1a41 l1#1l % i$"i41$iati%$ i$ LG 6%"u2t< i< a8%ut &; 61 21$t. The ,ompany hopes to in,rease that to ECH 6ithin the ne8t ,oup+e

of years or so4 thus insu+ating insu+ating itse+f from e8,hange e8,hange rate vo+ati+ity vo+ati+ity and ,rushing ,rushing ,osts in genera+. The ,ha++enge is to ,u+tivate high =ua+ity +o,a+ vendors =ui,7+y. Dhen Dhen L firs firstt star starte ted d ma7i ma7ing ng A5s A5s in Indi India4 a4 the the indi indige geno nous us ,omp ,ompon onen entt a,,ounted for a mere B& per,ent of the va+ue of the fina+ produ,t4 but 6ithin a fe6 months4 the the figure shot up up to '& per per ,ent +eve+. ;ome #+e,troni,s 6i++ hit a ,omparab+e position by the end of B&&C. Sin,e the US* of L has been high te,hno+ogy4 it ,annot +et any defe,tive produ,t produ,t pass through the gates. gates. #ven ensuring ensuring that the ma,hines ma,hines ,an hand+e Indian ,onditions has been top priority for L. #very produ,t is put to an #ar+y Life Test 2#LT34 6hi,h sub/e,ts of to the misery of $& degrees ,entigrade heat for a pro+onged period. The defe,t e+imination programme fo++o6s a statisti,a++y optimied pro,ess of random samp+e ,he,7s.

64

I$$%#ati%$ at LG

 At L innovation is a po+i,y. The management
L e+e,troni, India *vt. Ltd.4 has in a very short span of si8 months a,hieved a turnover of Rs. && ,rores 6hi,h is a brea7through in the #+e,troni, industry. The performan,e a,hieved in L
65

a,hieved the number one position in the $$& 6atts Mi8er rinder in the )&& +t and above ,ategory and Neuro@>uy segment 6ashing ma,hine. In the ;ome #+e,troni,s segment L is No.(. Moreover it has +aun,hed 6or+d ,+ass state of the art te,hno+ogies as *N system and refrigerators4 o+den eye series of ;ome #+e,troni,suy 6ashing Ma,hines. This 6as by far one of the most impressive performan,e any ,ompany had in its first year of operation. In B&&'4 its first ,omp+ete ,omp+ete year of operation operation in India4 it so+d produ,ts produ,ts 6orth Rs. $%% ,rore The ,ompany for the period ?an@?une
/.+ PROBLEMS OF THE ORGANISATION has so+d so+d 4E& 4E&4& 4&&& && Cu Cu1$ 1$tl tl3 3 LG 0a< 0a< a ma@ ma@1t 1t <0a <0a1 1 % ). ). It has

;ome ;ome

#+e,troni,s in the first si8 month4 ti++ ?une<&B4 ma7ing it the fifth +argest p+ayers in the ;ome #+e,troni,s #+e,troni,s mar7et.

6<

In the $$& 6atts refrigerator4 )&& +t  ,ategory4 L is a+ready the mar7et +eader 6ith a+most )(H mar7et share4 it has so+d (4BC& units against a mar7et sie of appro8 $C4&&& units in the first ( months of ,urrent ,a+endar year. This is a gro6th of )H over +ast year ,orresponding period. In the CC& 6atts refrigerator segment ho6ever the ,ompany has on+y )H mar7et share be,ause of ,apa,ity ,onstraints due to out sour,ing. It has so+d $B4&&& units in the first si8 month4 6hi,h is a gro6th of about ))&H over +ast ,rores pounding period. In the fu++y automati, 2>uy Logi, ,ategory3 5itrus ?ui,er too L is the mar7et +eader 6ith )%H mar7et share. It so+d about (4(&& units against the industry sa+e of E4&&& units in the first si8 months of ,urrent ,a+endar year. This is a gro6th of 'BH over ,ost year ,orresponding period. 0vera++ in the semi automati, 5itrus ?ui,er ,ategory the ,ompany has BH mar7et share and a No. $ ran7ing. It so+d about $4B&& units against the industry sa+e of ).$C +a,s units in the first si8 month of ,urrent ,a+endar year. This is a gro6th of %'&H over +ast year ,orresponding period. In the mi,ro6ave oven segment ,ompany has a BH mar7et share and a No. B overa++ position. It so+d about %&&& units against the industry sa+e of ))4&&& units in the first si8 months of ,urrent ,a+endar year. This is a gro6th of $(&H over +ast year ,orresponding period.

6B

In the Air 5onditioner organied segment the ,ompany has a %H mar7et share and a No. B position on overa++ basis. It so+d about B$4B&& units against the industry sa+e of .$C +a,s units in the first si8 month of ,urrent ,a+endar year. This is a gro6th of $&H over +ast year ,orresponding period. >or any ,ompany to a,hieve su,h a position in su,h a short time is a re,ord.  Amongst the MN5s in this industry L no6 is the undisputed Numero Uno.  A,,ording to ,ompany sour,es4 at L it ,an be said 6ith pride that in B( months of e8isten,e4 L stands at a +eve+ that many ,ompanies in this industry have attained in B( years of their e8isten,e.

/.& ABOUT LGS COMPETITORS P0ili6< I$"ia

*hi+ips is one of the o+dest mu+tinationa+s to enter India near+y (& years ago. *hi+ips has had a fair+y su,,essfu+ run as a ma/or p+ayer in the te+evision mar7et. The ,ompany has identified domesti, #+e,troni,s4 persona+ ,omputers and monitors4 soft6are as its target business. In the year ending !e,<'E *hi+ips India has not,hed up sa+es of Rs. $E) ,rore.

62

Sam
Samsung e+e,troni,s4 another >ran,e ,ompany +aun,hed +aun,hed about five years ba,7 entered India 6ith a sta7e of J C mi++ion in the India subsidiary Samsung India e+e,troni,s Ltd.4 in 6hi,h it ho+ds a C per ,ent ,ontro++ing share. The produ,t portf portfo+ o+io io of Sams Samsun ung g #+e, #+e,tr tron ons s rang ranges es from from Mu+ti Mu+time medi dia a prod produ, u,ts ts44 home home #+e,troni,s and te+e,ommuni,ation produ,t systems. In India the ,ompany has estab+ished a +eadership position in the produ,t ,ategories in ;ome #+e,troni,s
5rom 5rompt pton on Ltd. Ltd.44 the the mar7 mar7et et +ead +eader er in ,ons ,onsum umer er e+e, e+e,tro troni ni,s ,s44 the the f+ag f+agsh ship ip ,ompany of the Rs. )&&& ,rore 5rompton group has turned in an improved

4

performan,e in B&&&@'E over the previous year. The ,ompany
This ,ompany invested in India in 'E% beginning 6ith the venture 6ith T"S private +imited. In ''$4 T"S Dhir+poo+ Ltd. ,hanged its name to Dhir+poo+ 5itrus ?ui,er Ltd. Its dominan,e is main+y in the 6hite goods industry. It ''C Dhir+poo+ re=uired ,ontro++ing interest in Ke+vinators of India4 one of ,ountry
43

IFB

I>1 stands for Indian fine ban7. It started its operations in 'E' 6hen it +aun,hed its first 6ashing ma,hine. It has a signifi,ant presen,e in the high end 5itrus ?ui,er mar7et4 6ith its fu++y automati, 6ashing ma,hine. I>1 has p+ans to in,rea in,rease se its ,ustom ,ustomer er base base by in,rea in,reasin sing g its produ, produ,tt range. range. 5urren 5urrent+y t+y the ,ompany is into the manufa,ture of mi,ro6ave ovens4 dish6ashers dish6ashers and ,+othes dryers. Its mar7et shares in B&&E 6ereF 5itrus ?ui,er (.CF mi,ro6ave BB.$H. Amt1> Hita20i

It has strategi, a++ian,e 6ith ;ita,hi Ltd.4 of ?apan. It entered 6hite and bro6n goods mar7et in India about seven to eight years ba,7 and is aiming at a mar7et share gro6th by (H. It is ma/ority into the mar7eting of high end A5
The ,ompany has posted a +oss of Rs. (& ,rore in '''. It posted a )& per ,ent gro6th in sa+es vo+ume in the refrigerator business during the si8 G month period ended !e,<'%4 higher than the industry average. odre/ is the mar7et +eader in the refrigerator segment. In B&&4 it re,orded a mar7et share of ).H. In the 5itrus ?ui,er segment it re,orded a mar7et share of C.CH. It is the on+y nationa+ p+ayer in the ,oo7ing range mar7et in India. It is a a+so

4/

p+anning to venture into business +i7e 6ater purifier systems in the near future4 a strategy 6hi,h has enab+ed it to be,ome a mu+ti app+ian,e ,ompany. El12t%lu>

 A1 #+e,tro+u84 the 6or+dorbes #+e,tro+u8 p+ans to +aun,h a 6ide 6ide rang range e of envi enviro ronm nmen entt frie friend nd+y +y hous househ eho+ o+d d #+e, #+e,tr tron oni, i,s s in Indi India. a. The The ,ompany has presen,e main+y in the refrigerator and 5itrus ?ui,er segment. It has been +aun,hing 6or+d ,+ass produ,ts in India at regu+ar interva+s. B&&) 6itnessed the +aun,h of seven upgraded 6or+d ,+ass mode+s of Ke+vinator refrig refrigera erator tor.. In B&& B&& it +aun, +aun,hed hed premiu premium m o+d o+d ,o++e, ,o++e,tio tion n from from Ke+vin Ke+vinato ator. r. Mar7et shares in B&&E 6ere: refrigerator '.%H.

/.; S.W.O.T. ANAL!SIS OF THE ORGANIATION St1$4t0<

•

*remium pri,ing4 no dis,ounts

•

>o,us on te,hno+ogy and =ua+ity

4;

•

Strong ,ommitment from parent

•

In G house manufa,turing ,apabi+ity

•

*rodu,ts +o,a+ied to suite Indian tastes

W1a@$1<<1<

•

La,7 of transparen,y 6ith dea+ers

•

>o,us on ni,he segments

•

!ominan,e of >ran,en 6or7 ,u+ture

•

Litt+e presen,e in A91 ,+ass to6ns

O66%tu$it3

•

5onvert image into mar7et share

•

Dide produ,t portfo+io

•

*ositive rub@off due to high =ua+ity

•

;ea+thy resour,e generation

T01at<

•

Day behind mar7et +eader 

46

•

Stagnant urban demand

•

Nothing uni=ue about strategy

•

;igh+y ,ompetitive mar7et

44

C0a6t1  - OBJECTI?E : METHODOLOG! -./ SIGNIFICANCE 5onsidering the 6ide variety and avai+abi+ity of produ,ts in the ,ategory of home #+e,troni,s as a industry on+y the five fo++o6ing produ,ts have been ,onsidered for study: ?ui,e #8tra,tor4 Sand6i,h Toaster4 *opup Toaster4 ;and Mi8e Mi8er4 r4 Sti, Sti,7 7 1+en 1+ende der4 r4 ;air ;air !rye !ryer4 r4 ?ug ?ug Kett Kett+e +e44 Stea Steam m Iron4 Iron4 !ry !ry Iron Iron44 ;eat ;eat 5onve,tor4 ?ui,er Mi8er rinder4 Mi8er rinder4 0.T..4 Light Deight Automati, Iron. L being a ,ompany having its operations in diversified areas4 on+y L e+e,troni,s is a part of this study.

-.- MANAGERIAL MANAGERIAL USEFULNESS OF THE STUD! It 6i++ 6i++ be very very usef usefu+ u+ for for the the Mana Manage gers rs to 7no6 7no6 the the posi positio tion4 n4 mar7 mar7et etin ing g strategies and the performan,e of the L #+e,troni,s India.

-.+ OBJECTI?ES •

To find out 6hether S,heme has he+ped to in,rease the sa+e of the !ea+ers or notO

•

Dhether this S,heme has he+ped to ,hange the 1rand Loya+ty of the 5ustomers or notO

•

To find out the 0vera++ Response of this S,hemeO

•

To identify and ana+yse the position in the ,onsumer durab+e industry of L #+e,troni,s India.

45

•  Ana+ying the Mar7eting Mar7eting Strategies of the above ,ompany. ,ompany. •

To ana+ye its performan,e sin,e to in,eption.

-.& SCOPE OF THE STUD! Identify and ana+yse the position of L #+e,troni,s in the 5onsumer !urab+e Industry and its performan,e sin,e in,eption 6i++ he+p ,ompany to 7no6 6here L #+e,troni,s stand in this ,ompetitive mar7et.

-.; METHODOLOG! Info Inform rmat atio ion n

rega regard rdin ing g

the the

5ons 5onsum umer er

;ome ;ome

#+e, #+e,tr tron oni, i,s4 s4

orga organi nisa sati tion on44

Mar7e Mar7etin ting g Strate Strategie gies4 s4 ;uman ;uman Resour Resour,e ,e Manag Manageme ement nt has been been obtain obtained ed through: 2a3 *rimary *rimary Sour,es Sour,es 2b3 Se,ondary Se,ondary Sour,es Sour,es 0ffi,ers of the fo++o6ing departments 6ere approa,hed to obtain information about the ,on,erned sub/e,t. •

Mar7eting

•

;uman Resour,e Management

Pima3 S%u21<,

4<

Puestionnaire4 Intervie6 and !is,ussions 6ith the Senior Mar7eting #8e,utives of the 5ompanies to get re+evant information. S12%$"a3 S%u21<

2i3

Internet

2ii3

Libraries

2iii3

Arti,+es

2iv3 2iv3

5omp 5ompan any y bro bro,h ,hur ures es44 +ite +itera ratu ture re and and pam pamph ph+e +ets ts..

5on,+usions and re,ommendations have been thereby given. Thus in my opinion4 this 6as the best method4 that ,ou+d have been used 6hi,h in,+uded the use of both the primary and se,ondary sour,es sin,e on+y the se,ondary or the primary sour,es ,ou+d not have provided su,h an in@depth and detai+ed information.

4B

LIMITATIONS In every Resear,h pro,ess4 there is ,han,e of errors and errors +ead to un,ertainity. #rrors4 6hi,h have affe,ted the study4 6ere:



!ue to +a,7 of time4 I ,ou+d not ,over a++ over !e+hi so that my study

6as restri,ted to North !e+hi on+y.



Some time 5o@operation from respondents 6as missing.



Most of the time respondents 6ere not interested to ans6er the

=uestion4 ta7ing it as ordinary matter of the ,ompany.



Most of the times respondents 6ere biased and having shortage of

time.

42

C0a6t1  + CONCEPTUAL DISCUSSION Ma@1ti$4 Stat143

In a short span of /ust B( months4 sin,e its in,eption in May B&&'4 t01 8a$" 0a< attai$1" attai$1" a 8a$" 8a$" aa1$ aa1$1<< 1<< l1#1l % a8%ut a8%ut )( i$ t01 2%$
5onsidering the fa,t that L e+e,troni,s is a >ran,en mu+tinationa+4 entering the Indian mar7et meant estab+ishing itse+f in a different mar7et a+together 6ith varie varied d ,u+tu ,u+ture re and ,onsum ,onsumer er tastes tastes and prefer preferen, en,es. es. A+so A+so that that so many many mu+tinationa+s are s6eeping into the ,ountry4 it is evident that ea,h and every ,ompa ,ompany ny has has a ,uttin ,utting g edge edge over over anothe another. r. T01<1 4l%8al 2%6%ati%$< a1 "1#iati$4 %m t01i i$t1$ati%$al m1t0%"%l%4i1< a$" im6%#i
L
,onsidered better if the ,ompany has a +o,a+ partner but4 sin,e L
Noida. The B& month s,hedu+e to ,ommission its manufa,turing p+ant 6as ,ompressed to & months. The ,ompany de,ided to go in for a green fie+d pro/ pro/e, e,tt rath rather er than than a,=u a,=uis isit itio ions ns or merg merger ers. s. 2>or 2>or a++ a++ prod produ, u,ts ts e8,e e8,ept pt refrigerators3. P%"u2t<, L de,ided to go in for P%"u2t A"a6tati%$ Stat143. +oba++y L

does not operate in the dire,t ,oo+ refrigerator4 semi automati, 5itrus ?ui,er

5

and and B in,h in,h ;ome ;ome #+e, #+e,tr tron oni, i,sQ sQ.. 1ut 1ut the the ,omp ,ompan any y had had to deve deve+o +op p thes these e produ,ts for the Indian mar7et be,ause these areas ,onstitute a ma/or bu+7 of buys for the Indian ,onsumer. A+so L +aun,hed4 sampoorna4 IndiaQs first T" 6ith a devangiri s,ript on s,reen disp+ay on the C&th  anniversary of Indian independen,e. L
on6ard segment in the initia+ stages4 sin,e most of the Indian brands 6ere targeting the +o6 and midd+e end ,ustomers. In the past ) years due to L
+ead +eader er . It did did not not opt opt for for any any esta estab+ b+is ishe hed d bran brands ds in the the ,oun ,ountr try y to be asso,iated 6ith it. L1a"1<0i6,   At L e+e,troni,s4 7eeping the +o,a+ied strategy in mind4 an

Indian heads the strategi, areas su,h as sa+es and mar7eting. enera++y it happens that the senior management is deprived of Indians in a transnationa+ but L did to 6ant to fo++o6 this path4 it 6anted that the mar7eting division be headed by an Indian be,ause he 6ou+d be versed of the Indian mar7et and ,u+tures. U+timate+y it is this4 6hi,h determined 6hether the ,ompany 6ants to ma7e profits or obtain a mar7et share. L definite+y 6ants to be the +eader in the home home #+e,tr #+e,troni oni,s ,s indust industry ry.. Seein Seeing g the progre progress ss that that the ,ompa ,ompany ny has made in the past ) years4 it has revised its p+ans for be,oming the number one home #+e,troni,s ,ompany to the year B&&E from B&&'. The ,ompany even p+ans p+ans to brea7 brea7 even this year. year. B3 t01 31a -(() it< tu$%#1 i$ I$"ia ill 2%m6i<1 $1al3 - 61 21$t % it< 4l%8al tu$%#1.  This is signifi,ant for a

mu+tinationa+ that has been in the mar7et for /ust t6o years.

53

1efo 1efore re +aun +aun,h ,hin ing g itse+ itse+ff in the the mar7 mar7et et in B&&) B&&)44 it ,arr ,arrie ied d out out an e8te e8tens nsiv ive e rese resear ar,h ,h stud study y to unde unders rsta tand nd ,ons ,onsum umer er motiv motivat atio ions ns to ,rea ,reate te magn magnet eti, i, produ,ts4 pri,e them strategi,a++y4 position them sharp+y and 7eep ma7ing the magnetism more potent. ;aving understood the finer differen,es in ,onsumer motivations4 it opted for sharp arro6 reason to buy< differentiation over the b+an7et a++@approa,h 2,ategory 6ise3 ta7en by most of the other p+ayers.

5/

LG< Gl%2ali
   G    N    I    T    E    K    R    A    M

THE SEGMENT

THE PRODUCT

THE BRAND

Ni,he Mass

Top@of@+ine  Mass Mar7et

+oba+

*remium mid@ rangeO

ro6n THE PRICE

*remium  #,onomy    S    N    0    I    T    A    R    #    *    0

ALLIANCE

ENTR! STRATEG!

LEADERSHIP

>u++y@o6ned

reenfie+d

Indian

IN?ESTMENT

In,rementa+ BOTTOMLINE OBJECTI?E

Mar7et share

 After the initia+ pre+iminary mar7et studies the sa+es9 mar7eting department de,ided to start off 6ith ) produ,t ,ategories: •

5o+or te+evisions

•

5itrus ?ui,er 2Automati,3

5;

•

Mi8er rinder 2)&& +t  >>3

Dith Dithin in the the firs firstt $.C $.C mont months hs the the ,omp ,ompan any y 6ent 6ent a++@I a++@Ind ndia ia.. As the the ,omp ,ompan any y business began to rise4 L introdu,ed the fo++o6ing produ,ts to e8pand its produ,t portfo+io:

•  Air ,onditioners •

CC& 6atts refrigerator 

•

Semi automati, 5itrus ?ui,er

•

Mi,ro6ave ovens.

In a broad perspe,tive4 L
The most important 6inning fa,tor of the sa+es and mar7eting has been its *assion<. It is this attribute 6ithin a++ the 6or7ers that drives the other ( *
P1mium pri,ing to maintain margins

•

1reathta7ing Pa21 to ,reate ri,hes

•

!eep P1$1tati%$ to in,rease vo+umes.

56

P1m P1miu ium m Pi2 Pi2i$ i$4 4 , L e+e,tr e+e,troni oni,s ,s 6as 6as one

of the +ate +ate entrants entrants44 the Eth

p+ayer. Dhi+e other other ,ompanies 6ere /ost+ing to p+ay p+ay the +o6 pri,e pri,e high vo+umes game4 L de,ided to ,on,entrate on on the high high end of a++ the produ,t segments. segments. The ma8imum pri,e of a ;ome #+e,troni,s 6as Rs. B4&&& for a Bin,h mode+4 6as & per ,ent higher than Sony
enter the mar7et. The B&@month s,hedu+e to ,ommission its manufa,turing p+ant 6as ,ompressed ,ompressed to & & months. It a+so de,ided de,ided to go in for a nation 6ide 6ide +aun,h and appointed &&& dea+ers in /ust C months in B&&). >ina++y4 the ,ompa ,ompany ny entere entered d ) produ, produ,tt ,atego ,ategorie ries s simu+t simu+tane aneous ous+y +y ensuri ensuring ng ade=u ade=uate ate retai+@spa,e. The ,ompany 6as ab+e to bui+d up the mar7et for its produ,ts faster than it 6ou+d have been ab+e to do so if its had +aun,hed one produ,t at a time and mar7eted them region 6ise. ;o6ever4 to 7eep pa,e 6ith the ,ompetitive mar7et p+a,e it 6i++ have to +aun,h mode+s 6ith innovative features at regu+ar interva+s. >or e.g.4 the proposed

54

+aun,h of a digita+ T" by B&&) and many other digita+ produ,ts is a step to6ards this dire,tion. P1$1tati%$, *a,e 6as fo++o6ed by aggressive penetration ;aving estab+ished

E brand offi,es4 and 59> agents in oa and *ondi,herry to ta7e advantage of the sa+es ta8 benefits in these areas and to6ns +i7e Ran,hi4 Raipur and Nagpur the ,ompany has e8panded e8panded its dea+er net6or7 to B4C&&. 1y the end of this year4 this 6i++ rise to BC&& dea+ers. To ,ater to the rura+ ri,h4 the ,ompany
 L be+ieves in "a+ue Mar7eting. It is e8a,t+y opposite of 6hat A7ai Stands for. A7ai is pushing vo+umes by sa,rifi,ing va+ue. 0n the other hand L is sa,rifi,ing vo+ume for va+ue. The refusa+ to interpret Indian pri,e sensitivity as va+ue@insensitivity seems to have pushed L in to de+ving deep into ,onsumer behavior for insights missed by e8,essive+y se+f@,entri, ,ompanies. The big gain of doing it this 6ay of ,ourse is pri,ing po6er and maintaining this 6i++ remain ,ru,ia+.

55

P%"u2t 6%
The ,ompany 6anted a US* for its produ,ts4 6hi,h no other ,ompany in the industry had4 hen,e it piggyba,7ed on hea+th. This is a ni,he 6hi,h none of the other ,ompany
o+den #ye te+evision@ #nsuring 6rin7+e free vie6ing

•

Mi8er rinder G *N system 2preserve 2preserve nutrition system3 system3

•  Air ,onditioners G ;ea+th Air A5
5itrus ?ui,er G 5haos *un,h )@>abri,are system

•

Mi,ro6ave 0ver 0ver G;ea+th 6ave ,oo7ing ,oo7ing system

P%"u2t O1i$4< : R1lat1" Stat14i1<

L has4 right from its in,eption +aun,hed a series of state@of@the@art te,hno+ogy ba,7ed produ,ts. The sa+es and the mar7eting department 7eeps a+tering 9 refining the produ,t portfo+io a,,ording to the re=uirements of the ,onsumers. L #+e,troni,s has the fo++o6ing produ,t +ines i.

5o+our te+evisions

ii.

Refrigerators

iii.

Dashing ma,hines

iv.

Air ,onditioners

5<

v.

Mi,ro6ave ovens

vi.

"5! p+ay p+aye ers 2no 2not a++ that that popu+a pu+ar3 r3..

Init Initia ia++++y y in B&&' B&&'44 the the ,omp ,ompan any y had had +aun +aun,h ,hed ed on+y on+y B mode mode+s +s of ;ome ;ome #+e,troni,s4 E mode+s of Mi8er rinder 2)&& +t  frost@free3 and ) mode+s of fu++y autom automati ati, , 6ashi 6ashing ng ma,hin ma,hines. es. radua radua++y ++y as the ,ompan ,ompany y sho6e sho6ed d signs signs of profitabi+ity it e8panded its range of produ,ts in its portfo+io. The in,rease in the produ,t range ,an be /udged from the fo++o6ing tab+es. P%"u2t a$41 -((=7()  !1a

CT?<

R1i41at%<

Wa<0i$4

AC<

Mi2%

?CD

Ma20i$1 FF

DC

FA

B&&%

√

√

√

B&&E

√

√

√

B&&'

√

√

√

√

SA

√

O#1$

√

√

√

√

√

√

Num81 % m%"1l< -((=7()  !1a

CT?<

R1i41at Citu< % FF

AC<

Mi2%a

Jui21 DC

FA

B&&%

B

E

)

B&&E

$

E

)

B&&'

(

'

)

)

?CD

#1 %#1$ SA

)

Terms used :

5B

S6lit

%

$

B

B

%

$

)

B

>>.@ >rost free !5 G !ire,t ,oo+ SA G Semi Automati, >A@>u++y Automati, *rod *rodu, u,tt feat featur ures es of any any ,omp ,ompan any y prod produ, u,tt are are the the ,omp ,ompet etit itiv ive e too+ too+ for for differentiating the ,ompany produ,ts from other produ,ts. The features of L
Dhen L +aun,hed its range of ;ome #+e,troni,s in B&&)4 it 6as ,aught amidst at +east E ,ompetitors a++ over India in the industry. Dhat it needed 6as a US* to its range of ;ome #+e,troni,s apart from ,ompetition. It +aun,hed its T" 6ith the o+den #ye range 2this 6as a simu+taneous g+oba+ +aun,h3 6hi,h it positioned as the right set for 6rin7+e free vie6ing. Wit0 t0i< "i11$tiati$4
In order to meet the needs of the Indian rura+ mar7et4 L +aun,hed on Cth  August B&& sampoarna te+evision4 Indiao++o6ing are the range of T"s offered: ♦ L go+den #ye. ♦ L Roving #ye T"

52

♦ ;ome 5inema ♦ L

Super >+at 6ide vision

♦ L >+atron LG G%l"1$ E31: It is ,onsidered to be the 6or+d
6rin7+e free vie6ing. It ,onsists of a +ight sensitive natura+ a Lorithms ##< and an advan,ed ,ir,uit deve+oped by L. The ##< automati,a++y ad/usts ,o+our4 brightness4 ,ontrast4 sharpness tint and 6hite ba+an,e in response to any any ,han ,hange ge in ambi ambien entt +igh +ightt ,ond ,ondit itio ions ns.. This This ensu ensure res s that that one one en/o en/oy ys unmat,hed pi,ture =ua+ity 6ithout straining the eyes. U$iu1 1atu1< % a LG T.?., 

Su61 Su61 lat lat T?, The features of the ,omp+ete+y f+at s,reen pi,ture tube

designed by L
Multi i$"%< PIP, This fun,tion disp+ays ' or $ sub s,reens on the T"

s,reen s,reen 6ith )@se, )@se,ond ond updates updates.. Any of these these ,an be se+e,t se+e,ted ed for main main s,reen vie6ing at the tou,h of a button. 

C%l%u
preferred ,o+ours. 

C0a$$1l <2a$, This is very usefu+ 6hen users 6ant to see 6hi,h program

is sho6ing on ea,h ,hanne+. ?ust by tou,hing a button one ,an see every ,hanne+ for a 6hi+e. 

Gam1 m%"1, This is an e8isting in bui+t ) +eve+ e+e,troni, game *o6er 1a++<

6hi,h one ,an p+ay 6hen ever one does not fee+ +i7e 6at,hing a T" program.

<



Aut% ?%lum1 ?%lum1 l1#1ll1 l1#1ll1,, The sudden ,hanges in vo+ume 2different sound

+eve+s of ea,h broad,asting ,entre3 6hi,h is e8perien,ed 6hen you s6it,h ,hanne+s are automati,a++y e+iminated 6ith the he+p of a smart ,ir,uit to ensure a ,omfortab+e4 uniform sound +eve+ a,ross a++ the ,hanne+s. 

Multi La$4ua41 OSD M1$u, ives users an option to have the entire on

s,reen disp+ay of the menu in #ng+ish4 ;indi4 Marathi4 Tami+ and 1enga+i. 

+ Ba$" Ga60i2 Euali<1,  A++o6s to tai+or the sound =ua+ity a,,ording to

persona+ ,hoi,e. 

Tu8% Tu8% S1a20, S1a20, Sear,hes and memories ,hanne+s B times faster than

other ordinary T"s. L ,+aims4 that none of the features ,ited above are avai+ab+e in the ,ompetitor produ,ts. LG R%#i$4 E31, T" 6ith a bui+t in se,urity system. It has a door ringer 6ith an

in bui+t se,urity ,amera. 0n,e put on the door4 the ,amera ,an be ,onne,ted to the T" any time a ,a++er presses a ringer at the door4 the T" indi,ates through a beep and a +ive visua+ of the ,a++er appears on the s,reen. L has +aun,hed its Flat%$ T1l1#i
/(( /(( lat lat 6i2tu 6i2tu1 1 tu81, tu81, Ni+ +ight refra,tion for ,+earer and most rea+isti,

s,reens images. 

Di4ital /(( H, >or f+i,7er free vie6ing be,ause of doub+e s,anning speed

than ordinary T"s 

Di4ital E31, To ,reate 6rin7+e free vie6ing

<3



Pi2tu17i$76i2tu1, !isp+ays sub s,reens on the T".



Pi2tu17%ut76i2tu1, 5ompress the main pi,ture of the s,reen 6hi+e so6ing

*I* pi,tures too. L has mode+s ranging from $ in,hes to $) in,hes 6ide s,reen. >o++o6ing is the range: $ in, hes

) mode+s

B in,hes

' mode+s

B' in,hes

$ mode+s

)B in,hes

 mode+s

$) in,hes

 mode+s

The ,ompany has more variety in the B in,h segment be,ause the ;ome #+e,troni,s mar7et is dominated by regu+ar Bin,h sets. ii. R1i41at%<

In the domesti, rinding segment there are t6o types: a. CC& 6atts: 6atts: This Mi8er Mi8er rinder ,oo+ ,oo+ through through the dire,t dire,t ,onta, ,onta,tt of air 6ith the the ,oo+ing ,oi+s bound around the freeer. This system has severa+ dra6ba,7s: dra6ba,7s: I,e forms fre=uent+y around the ,oi+@redu,ing ,oo+ing effi,ien,y and ,reating the the need need for for manu manua+ a+ defr defros osti ting ng.. Addi Additi tion ona+ a++y +y44 a+so a+so the the temp temper erat atur ure e distribution is uneven 6ith the various ,ompartments. b. $$& 6atts atts refri efrig gerat erator or:: is des design igned to ove over,om r,ome e the the dra6 dra6ba ba,7 ,7 of ,onventiona+ refrigerators. ;en,e the ,oo+ing ,oi+s are +o,ated outside the stro7e area. No frost even forms inside these4 thus giving high ,oo+ing effi,ien,y and ma8imum storage spa,e a++ the time.


L entered the refrigerator mar7et 6ith )&&+t. $$& 6atts mode+s. It introdu,ed E mode+s initia++y and no6 it has a ' mode+s in the $$& 6atts type and ) in the CC& 6atts type. After estab+ishing itse+f as the mar7et +eader in the )&&+t. p+us $$& 6atts 6atts Mi8er Mi8er rinder 6ith a share share ,+ose to )% per,ent per,ent in B&&C4 L is no6 targeting the CC& 6atts segment 6hi,h is the fastest g ro6ing ,ategory among refrigerator in India 2nine out of every & mode+s of fridgerom the above three ,ategories4 ,ategory 2i3 is ,atering to the midd+e ,+ass segment4 ,ategory 2ii3 is ,atering to the midd+e upper and upper ,+ass 6hereas ,ategory 2iii3 is ,atering e8,+usive+y to upper e+ite ,+ass 6ho are see7ing the trendy and ri,h +ifesty+es of the 6est in India. LG< Mi>1 Gi$"1 0a#1 811$ 6%.I.R.

Lamp4 the moisture ,ontro++er and the !eodorier. The three 6or7 together to ,ounter fa,tors that ,ause unp+easant odors4 degeneration and sta+eness of food. This maintaining the natura+ f+avour4 freshness and nutritive va+ue of food.

<;

The uni=ue features of a L refrigerator are: 

Su61 2%%li$4 <3
party for instan,e34 the super ,oo+ing systems ;I@speed fan 6i++ +et out ,oo+ air mu,h faster and more po6erfu++y. 

F%2u<1" 2%%li$4 <3
refrigerator a bui+t in neuro fuy ,ontro+ system dete,ts the item and ,hi++s it instant+y by ,on,entrating ,oo+ air on it. It is the best and the most effi,ient ,oo+ing system for refrigerators. 

N1u% Fu3 2%$t%l <3
,omputer this system provides behaviora+ ,ontro+ fun,tions. It ,a+,u+ates the +east used moments for defrosting4 automati,a++y ad/usts the refrigerator temperature 6hen there is a ,hange in the room temperature. 

E$#i%$m1$t i1$"l3: L has ,onverted its entire )&& >> range to 5>5

free ,ompressors. The 5>5 25h+oro f+ouro ,arbons3 free gas does not dep+ete the oone +ayer and does not add to g+oba+ 6arming. 

A2ti#1 2a8%$ ilt1 : #ffe,tive+y absorbs unp+easant odors from onoons4

sta+e mi+7 et,. 

M%i
and vegetab+es nutrition +ast +onger. This %)& %)& +t. +t. Di%< Di%< R1 R1i4 i41 1at at% % D1l D1lu> u>1 1 I$t1 I$t1ll lli4 i41$ 1$tt O6ti O6timu mum m Sil1 Sil1$2 $21 1,, This refrigerator refrigerator 6as +aun,hed +aun,hed in August B&&B. It i< 2%$
<6

mar7ets4 6hi,h 6i++ prove instrumenta+ in the su,,ess of su,h state of the art te,hno+ogies. T01 ta41t au"i1$21s are the top end ,ustomers 6ho are see7ing the trendy

and and ri,h ri,h +ifes +ifesty ty+e +e of the the 6est 6est in Indi India. a. >ore >oreig ign n dip+ dip+om omat ats4 s4 NRIs NRIs and and top top e8e,utives ,onstitute this segment. L is ,onfident that 6ith $$& 6atts Mi8er rinder doing 6e++ in the Indian mar7et4 the future for su,h super premium ,ategory Mi8er rinder is bright. This produ,t 6ou+d be disp+ayed at se+e,t ,ounters 6ithin the targeted %@& to6ns. The ,ompany fee+s that the su,,essfu+ ,ampaign of its *N system Mi8er rinder in the >> segment is bound to have a spi++over effe,t on this ne6 segment. This refrigerator is dire,t+y imported from >ran,e and a team from >ran,e e8tensive+y trains the servi,e engineers for this produ,t. T01 u$iu1 1atu1< % t0i< 6%"u2t a1, 

Dor+ds +o6est noise +eve+



Dor+d +o6est po6er ,onsumption



5>5 free



Uniform I,e ma7ing dispenser 6ith one tou,h system



1ui+t in home bar.



Tempered g+ass she+ves



Uni=ue e+e,troni,s temperature ,ontro+ system.

<4

LG F1<0 Ma
CC& 6atts Mi8er rinder ,ome under this ,ategory. They give more spa,e a+ong a+ong 6ith 6ith better better va+ue va+ue for money money.. The interiors interiors are e8tre e8treme+y me+y f+e8ib+e f+e8ib+e to ,omfortab+y ad/ust she+ves and a,,ommodate a++ the food. It is targeted at the mass mar7et 7eeping the Indian industry trends in mind. U$iu1 1atu1<, 

"ersati+e and ,onvenient



Unerring effi,ien,y



reat +oo7s



Strong ,ompressor for ,oo+ing

iii. Citu< Jui21

In the 5itrus ?ui,er ,ategory there are t6o types of ma,hines: a. Semi Semi Automati Automati,: ,: User has to transfer transfer ,+othes ,+othes bet6e bet6een en the 6ashing 6ashing and drying ,ompartments manua++y. b. >u++y automa automati,: ti,: 6ashing 6ashing and and drying drying is done done in the same same unit. unit. L has about ( mode+s of 5itrus ?ui,er avai+ab+e in the mar7et out of 6hi,h three are fu++y automati, and three@semi automati,. The ,ompany introdu,ed 5itrus ?ui,er in the mar7et in B&&. The ,ompany has entered the semi automati, segment be,ause bu+7 of 5itrus ?ui,er bought are semi automati,. Dor+d over the ,ompany does not ,ater to this ,ategory.

<5

L has a )% per,ent share in the mar7et in the fu++y automati, 5itrus ?ui,er mar7et. In the semi automati, ,ategory it has a B per ,ent share. P%"u2t 6%
The te,hno+ogy used in its produ,ts in the 5haos pun,h ). C0a%< Pu$20 + a<0: a 6ater pun,h that detang+es ,+othes before 6ashing

them 2effi,ient+y3. The pun,h prope+s 6ater through every pore of the fabri, and )< are ) additiona+ pu+sates 2te,hno+ogy used by L3. L
*u *un,h n,h 6as 6ash< h< semi emi aut auto omati mati, , : B mo mode+s de+s of ( 7g 7g ,ap ,apa, a,it ity y

ii. ii.

5+e 5+ea an ma maste ster< semi auto utomati mati, ,: %7 %7g ,ap ,apa a,ity ity.

iii. iii.

Tur Turbo bo !rum !rum<< fu+ fu++y +y auto automa mati ti,: ,: ) mod mode+ e+s s in in C.C C.C7g 7g44 ( 7g and and & & 7g. 7g.

Fa8i2a1 <3
L has introdu,ed this system to its range of 6ashing ma,hines. It is a distin,t prin,ip+e that he+ps preserves +ife of the fabri,. Dhenever ,+othes are rubbed against hard surfa,es +i7e agitators to remove dirt4 the fabri, 6ears out. out.

A ,+ot ,+othe hes s gets gets tang+ tang+ed ed and are stre stret, t,he hed d out out of shape shape.. #8,e #8,ess ss

deterg detergent ent and improp improper er rinsin rinsing g ma7es ma7es fabri, fabri, +oose +oose its origin origina+ a+ fee+ fee+ and ,o+our. The fabri, fabri,are are syste system m has a 6ashi 6ashing ng a,tio a,tion n that that ,reate ,reates s po6erf po6erfu+ u+ 6ater 6ater ,urrents and 6ater *un,h4 to give ,+othes a ,+eaner4 more effe,tive and tang+e free 6ash. Pu$20 a<0 <1mi aut%mati2,

<<

This This is the the Dor+ Dor+d d on+y on+y 5itr 5itrus us ?ui, ?ui,er er 6ith ith t6in t6in tub tub a+on a+ong g 6ith 6ith *un, *un,h h te,hno+ogy. ?ust 6ithin a ) months of its +aun,h in May<'E4 the L *un,h 6ash be,ame the +argest se++ing semi automati, 5itrus ?ui,er in the ( 7g and above ,ategory4 in to6ns and ,ities a,ross the ,ountry. Sin,e then it has so+d about4 '$4E$& ma,hines. The sing+e most important fa,tor that ,ontributed to the su,,ess of *un,h 6ash is the fa,t that it is designed on the basis of a deep understanding of ,onsumer needs. The uni=ue features of this produ,t are: 

gushing g up6a up6ard rd moveme movement nt of 6ater 6ater remove removes s Pu$20 Pu$20 t120$%l%43 t120$%l%43: The gushin dire,ts effe,tive+y. 5reates 6ater 6hir+s to 6ash ,+othes mu,h better than other types of ,onventiona+ 6ashers. *revents damage to the ,+othes by using 6ater rather than fri,tion to ,+ean.



* @47ti$ tu8: This is the first t6in@tub 5itrus ?ui,er to boast of a (7g

,apa,ity. 

made of a high high impa impa,t ,t resi resist stan antt mate materi ria+ a+ ,a++ ,a++ed ed T%u4 T%u40 0 a<0 a<0 tu8 tu8: made po+ypropy+ene that ma7es it +onger +asting. Uni=ue 6ater dynami, pu+sates that


S6i$ tu8: The ,apa,ity of spin tub mat,hes 6ith the 6ash tub su,h that a++

the ,+othes that have been 6ashed ,an be dried in one go. Cl1a$ Ma
This is the India

Its 6ashing a,tion invo+ves an e8tra rinse option and a suds free system ensures that every bit of detergent is 6ashed a6ay from your ,+othes. The uni=ue feature s of this produ,t are: 

?umbo drum 2% 7gs3



*o6erfu+ dua+ fi+ter 



#,onomi,a+ 6ater ,onsumption



Lo6 noise +eve+



Suds free system

T01 Tu8% "um ull3 aut%mati2

This 5itrus ?ui,er ?ui,er provides provides 6ith features that are uni=ue to L. The drum and pu+sators rotate in opposite dire,tions4 ,reating mu+tip+e 6ater 6hir+s inside the ma,hine. The uni=ue features of this produ,t are: 

The turbo drum



*u+sators



Trip+e 6ater pun,h



Trip+e 6ater fa++ system



Lo6 po6er ,onsumption



$ 6ash programs.

i#. Ai C%$"iti%$1<

<2

L
its uni=ue anti@ba,teri anti@ba,teria a fi+ter4 it drives drives air borne germs out of the boundary boundary.. Its de@od de@odori oriin ing g fi+ter fi+ter does does a6ay a6ay 6ith 6ith unp+ea unp+easan santt odors odors.. And the anti@f anti@fung ungus us e+e,trostati, air purifi,ation unit traps dust parti,+es as +itt+e as &.& mi,rons and even smo7e. smo7e. Its 5haos< Logi, airf+o6 system ,reates natura+ air ,urrents4 and and ,oo+s in gent+e puffs rather than 6ith b+asts of 6o+d air. Thus it prevents any unhea+thy4 abrupt drops in the body temperature. T01 u$iu1 1atu1< % LG T%a
U$iu1 ai 6ui3i$4 ilt1<: The fi+tering system uti+ies t6o fi+ters. The

e+e,trostati, fi+ter removes the finest dust parti,+es as sma++ as &.& mm and even even toba toba,, ,,o4 o4 smo7 smo7e e and and po++ po++en en.. The The de@o de@odo dori rii ing ng fi+t fi+ter er remo remove ves s unp+easant odors4 espe,ia++y those ,aused by airborne fungi. 

W%l"< i
body ,an be found 6ithin nature. 5ount+ess data and verifi,ation have resu+ted resu+ted in the app+i,atio app+i,ation n of the ne6 5haos< 5haos< theory theory to L A5
B



provid ide e a ,omfo ,omfort rtab ab+e +e p+ea p+easa sant nt and and 6e++ 6e++ W%l"< W%l"< ui1t ui1t1
F%ll%i$4 i< t01 a$41 % m%"1l<,

i.

Sp+it A5
ii.

Dindo6 A5
L is +aun,hing the Di4ital Pla
The uni=ue features of this A5 are: 

A$ti7Ba2t1ia ilt1 : It removes dust in the air as 6e++ as inhibits ba,teria

pro+ife pro+iferat ration ion44 ma7ing ma7ing the indoor indoor atmosp atmospher here e hea+th hea+thy. y. L A5 6ou+d 6ou+d be 'E.CH ba,teria free. 

N1u% Fu3 C%$t%l : A,,ording to the temperature4 air vo+ume and air

ve+o,ity the sensor 6i++ automati,a++y operate ,reating a more p+easant atmosphere. 

'7H%u %$% Tim1 : this fun,tion a++o6s setting the timer from one hour to

a ma8imum of % hours. 

This fun, fun,ti tion on pres presen ents ts ,hi+d ,hi+dre ren n or othe others rs from from C0il" C0il" L%2@ L%2@ Fu$2ti Fu$2ti%$ %$: This tampering 6ith the ,ontro+ buttons on the unit. A++ the buttons on the indoor

B3

disp+ay pane+ ,an be +o,7ed. The unit ,an then4 on+y be ,ontro++ed by remote. #. Mi2%a#1 %#1$

L +aun,hed mi,ro6ave ovens in the se,ond phase in B&&. The ,ompany initia++y introdu,ed t6o mode+s of mi,ro6aves and no6 it has +aun,hed some mode+s in different ,o+ors. *rodu, *rodu,tt positio positionin ning: g: LG< %#1$< 0a#1 811$ 6%
L
B/

U$iu1 1atu1< % a LG mi2%a#1, 

6ave has W%l"< %$l3 %$17t%u20 I$"ia$ 2%%@i$4 <3


Famil3
utensi+s and suits Indian fami+y sies. 

H1alt0 H1alt0 a#1 t120$%l%4 t120$%l%43 3: Uni=ue t6in sour,e te,hno+ogy emits 6aves

from top and bottom resu+ting in faster and even ,oo7ing 6ithout destroying nutrients. L has p+ans to introdu,e a mi,ro6ave oven 6ith pre@set Indian menus. It a+so a+so p+ans p+ans to +aun,h +aun,h India
L be+ieves in #thi,a+ *ri,ing. The ,ompany has made various p+ayers in the industry no ,ompromise on the pri,e front despite the ,utthroat pri,e 6ar e8isting amongst various p+ayers in the industry. In e+e,troni,s it 6as one of the +ate entrants to enter the mar7et in B&&&. Dhi+e other ,ompanies that time 6ere p+aying the +o6 pri,e high vo+umes game4 the ,ompany de,ided to ,on,entrate on the high end of a++ the produ,t segments. Dhen the ,ompany ,ompany entered entered the mar7et4 mar7et4 1aron internati internationa+ ona+ 2A7ai3 2A7ai3 6as on a rampage then4 6ith the A7ai te+evision e8,hange s,heme. *ri,e offs 6ere in

B;

and the trade 6as en/oying ,redit periods of any thing bet6een $C and '& days. LG 81li1#1< i$ #alu1 ma@1ti$4 . It is e8a,t+y opposite of 6hat A7ai stands for.

 A7ai is pushing vo+ume by sa,rifi,ing va+ue. L is sa,rifi,ing vo+ume for va+ue. The refusa+ to interpret Indian pri,e@sensitivity4 as va+ue insensitivity seems to have pushed L into de+ving deep into ,onsumer behavior for insights missed by other ,ompanies. The big gain of doing it this 6ay is pri,ing po6er and maintaining this 6i++ remain ,riti,a+. The ,ompany 6hen it entered the mar7et in B&&& 6as targeting the premium end ,onsumer. >or e8amp+e: a. In the refriger refrigerator ator ,ategory ,ategory itit entered entered the $$& 6atts 6atts )&&+t. )&&+t.  Segment Segment 6hi,h 6hi,h form forms s a very very +itt+e +itt+e port portio ion n of the the entir entire e refri refrige gera rato torr mar7 mar7et et.. Its Its ))&+ ))&+t. t. refr refrig iger erat ator or 6as 6as pri, pri,ed ed at Rs. Rs. B(4& B(4&&& &&.. 0n the the othe otherr hand hand odr odre/ e/ and and 5rompton 6ere offering >> Mi8er rinder any thing bet6een Rs. (4&&& to Rs4 B&4&&&. b. L1 9 5rompton 5rompton 2Mar7et +eaders for mi,ro6aves3 are se++ing them for +ess than Rs. &4&&& a+so. ;o6ever the ,ompany after three years in the mar7et4 has ,ome do6n to mass mar7 mar7et etin ing. g. No6 No6 it is targ target etin ing g a++ a++ the the segm segmen ents ts in the the mar7 mar7et et.. It is even even ,on,entrating on the rura+ areas no6. It has a refrigerator for as +o6 as Rs. '4)&& and a T " for as +o6 as Rs. '&&&. Di
B6

L is ,urrent+y se++ing its produ,ts in E&& to6ns and ,ities 6ith popu+ation of one +a7h and above. It has E( bran,h offi,es4 $& distributors and B4&&& dea+ers a++ over the ,ountry. 1y the end of B&&B4 the ,ompany p+ans to rea,h another %&&& to6ns 6ith a popu+ation of C&4&&& or more. In this pro,ess it 6i++ add on to (& distributors and &&& dea+ers. To a,hieve this sends eight vans to ,riss,ross the ,ountry ,overing C&&& 7m every month4 to fami+iarie the trade tr ade and the ,ustomers 6ith L produ,ts. In every ,ity4 L approa,hed the best dea+ers but in a s,heme@ridden mar7et4 it refus refused ed to offer offer any s,hemes s,hemes.. It positio positione ned d itse+f itse+f as an ethi,a ethi,a++ ,ompan ,ompany. y. Instead of dis,ounts L 6anted dea+ers to pay an advan,e for L produ,ts. This ensured that the dea+er 6ou+d push the brand in the mar7etp+a,e4 even if it 6ere /ust to 7eep his oven ,ash from staying b+o,7ed. In the +ong run this ,reated a pent@up demand for the brand. L sin,e sin,e its in,epti in,eption on +aid stress stress on P%61 P%61 C0a$$1l C0a$$1l M120a$" M120a$"i
the fastest dea+er net6or7 e8pansion in the industry and the highest dea+er produ,tivity. !ea+er +oya+ty and retention has been high right from the the begi beginn nnin ing g due due to prop proper er inve invent ntory ory mana manage geme ment nt high higher er dea+ dea+er er profitabi+ity and in,entives4 proper *0* and other promotiona+ materia+ to the dea+ers and a bas7et fu++ of produ,ts for the dea+ers to ,hoose from. Su66l3 C0ai$ at LG

L fa,tory

#8,+usive 0ut+ets

B4

5 9 > agents

!istributor

!ea+er P%m%ti%$ A$" R1lat1" Stat14i1<

>o++o6ing are the promotion too+s used by L e+e,troni,s to promote the ,ompany as 6e++ as its produ,ts: •  Advertising •

*ub+i, Re+ations

•

Sa+es *romotion

L has devised an effe,tive A!"#RTISIN and promotiona+ strategy. 1y using appr approp opri riat ate e posi positi tion onin ing g stan stan,e ,e and and appr approp opri riat ate e medi media a vehi vehi,+ ,+es es44 stro strong ng ,on,epts and US*s 6ere deve+oped.  A+so4 various aspe,ts about the brand performan,e4 the produ,ts and strategies to the media4 have been ,ommuni,ated very 6e++ to the media 6ith its e8,e++ent pub+i, re+ations. T%"a3 LG
B5

i. A"#1ti
The ,ompany started 6ith A!"#RTISIN on print and outdoor media in B&&&. The A!"#RTISIN had to be straight and simp+e aimed at both the head and heart. >or e.g. to advertise for Mi8er rinder the ad +ine 6ent  >rom today a++ other Mi8er rinder 6e++ 6e++ be,ome history. history. This 6as something something that pushed the end benefit further to6ard the ,onsumer. 0ver time4 the media used e8tensive+y to advertise are e+e,troni,4 print and outdoor. It is (&H T"4 )&H print and &H outdoor. A+so the ,ompany has a+so started 6ith 6eb A!"#RTISIN over the site. Rati% % it< 6%"u2t< i< t01 t 01
In order to boost se,ondary sa+es the sa+es and mar7eting department has +aun,hed a ne6 a,tivity. T6o L +ady ,hefs have been ta7en on board for ,oo7ing demonstration 6ith the he+p of L Mi,ro6ave oven. The demos 6i++ be he+d at 7itty parties arranged by !SL members4 at dea+er ,ounters 2to attra,t 6a+7 in ,ustomers34 to ne6 L mi,ro6ave ,ustomers 2they 6ou+d be re=uested to invite at +east (@% peop+e to their house at the time of demo3. 5urrent+y this a,tivity has started on+y in !e+hi and Mumbai and 6i++ be gradua++y e8tended to other bran,hes. No6 that L is ,oming up 6ith its digita+ range of produ,ts4 the vehi,+e that the ,omp ,ompan any y p+an p+ans s to adop adoptt 6ou+d ou+d be dire dire,t ,t se++ se++in ing g ma/o ma/ori rity ty44 in orde orderr to demonstrate the produ,ts 6herever possib+e. The ,ompany 7eeps in mind the seasona++y of produ,t in mind 6hi+e promoting for its produ,ts. It advertises heavi+y during festive season and a+so during summers 6hen the demand for  A5s4 5itrus ?ui,er is on the rise.

B<

Lintas is the ad agen,y hand+ing the a,,ount. Its A!"#RTISIN budget sin,e B&&' is as fo++o6s:  !1a

Bu"41t

O8912ti#1

B&&E

C ,rore

To inform about L
B&&C B&&C

)& ,ror ,rore e

To prom promot ote e addi additi tion ona+ a+ prod produ, u,tt +aun +aun,h ,hes es

B&&'

)& ,rore

To promote the brand

The ,ompany ,onsiders the A!"#RTISIN: Sa+es ratio4 if sa+es are in,reasing the ,ompany tries to redu,e the ad G budget. O lat1 LG 0a< 4%t m%1 i$t% 2%6%at1 AD?ERTISING i.1. 6%m%ti$4 t01 8a$" a$" it< a20i1#1m1$t< at01 t0a$ 6%m%ti$4 t01 6%"u2t. E#1$ t01 a"< <11$ %$ T? t01<1 "a3< LG i< t3i$4 t% 6%m%t1 t01 8a$" a$" $%t t01 6%"u2t. F% 1.4. it <6%$<%< a -7 mi$ut1 6%4amm1 %$ EE T? 83 $am1 % “LG “LG H1%< H1%<” ” 011 011 a 61<%$ 61<%$ali alit3 t3 % a$38%" a$38%"3 3 0% 0a< 1>21ll 1>21ll1" 1" i$ 0i<01 i1l" <61a@< % a8%ut t% mi$ut1<. T01 2li66i$4 <0%i$4 61%6l1 0% a1
In today
,ustomers by being sensitive to them.

BB

E>t1$al E>t1$al Cu
money money i.e.4 i.e.4 the highest highest =ua+it =ua+ity y at the +o6est +o6est pri,e pri,e and then reinfo reinfor,e r,e the ,ommitment through good servi,e thereafter. >or e.g.4 the ,ompany has a different servi,e po+i,y. It goes by the name of happy ,a++s. Immediate+y after pur,hase4 the ,ustomer servi,e team ,a++s on ,ustomers to find out if they are satisfied 6ith the produ,t and they are given a ,a++ /ust before the guarantee of the produ,t e8pires. Ba$" St1$4t0

done +as +ast year ear to see 6here here L stan stands ds in the the A 6at0i 6at0i$"1 $"1< < 1 Mi>1 G Gi$ i$"1 "1 a$" a$" Cit Citu< u< Jui2 Jui21 1 it0 it0 l1a" l1a"i$ i$4 4 8a$ 8a$"< "< i$ t01 t01
The surv survey ey 6as 6as a$" a$"
In ;ome #+e,troni,s 2!e+hi34 L ran7s a+ongside Sony as a status symbo+. It a+so a+so +eads +eads on 6i++ing 6i++ingnes ness s to re,omm re,ommen end d 2a+ong 2a+ong 6ith Sony Sony and 1*L34 and produ,t differentiation. 0n spontaneous re,a++4 5rompton and 1a/a/ +ead and L are at the ne8t +eve+ a+ong 6ith Sony4 0nida and Samsung. In Mi8er rinder 2!e+hi34 odre/ +eads by far on spontaneous re,a++. 1ut on 6i++ingness to re,ommend4 L is the +eader4 and so top on status and produ,t differentiation.

B2

In 5itrus ?ui,er ?ui,er 2!e+hi34 2!e+hi34 L doesn
2

O4a$i
Traditiona++y L 6as primari+y a mar7eting driven ,ompany and ;R department 6hi,h 6as ear+ier dominant has gained importan,e over the +ast B years. A number of interventions have been ,oordinated by the mar7eting department. the ;R department has he+ped in maintaining them and is more responsib+e at ,orporate +eve+ than at p+ant +eve+ but this is undergoing a ,hange. The ;R dept. has a ,onveyor ,hain setup. ?.P. HR

D.G.M. HRM

S1$i% P1<%$$1l Ma$a41 Pla$t<

S1$i% P1<%$$1l Ma$a41 Sal1< : Ma@1ti$4

23

C0a6t1  & DATA ANAL!SIS : INTERPRETATION Cit1ia m%
Ra$@i$4 / t% ;

1rand Image >oreign 5o++aboration  After Sa+es Servi,es !ea+er Te,hno+ogy

 B ) $ C

 25omputation in Appendi8 I3 ♦ Ba$" Aa1$1<< % LG

-(

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/= /* /& //( = * &

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(  !1<

N%

♦ S201m1< 6111" 83 2%$
5ash !is,ount Insta++ment S,heme #8,hange offer >ree ift

$B BB BB $

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F11 Git /&

Ca<0 Di<2%u$t &-

20a$41 20a$41 %1   -- I$
♦ M%
Ra$@i$4

Refrigerator



Mi,ro6ave

B

 A5

)

Te+evision

$

Dashing Ma,hine

C

2;

-;

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AC

R1 F  i4 1  at % 

26

M i2 % a# 1

Wa<0 i$ 4 Ma20i$1

R1la R1lati# ti#1 1 8a$ 8a$" " aa1 aa1$1 $1<< << % LG 6%" 6%"u2 u2t< t< #i<77 i<77#i #i< < 2%m6 2%m61t 1tit% it%< < % % #ai%u< 6%"u2t< /* /& //( = * & ( BPL

O$ i" a

Sam < u $ 4

S% $3

T%6 % Mi$" 12all % R1i41at%<

/= /* /& //( = * & (

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    l    %    %    6     l         i     0     W

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C0a6t1  ; DATA ANAL!SIS : INTERPRETATION ;./ FINDINGS I Fi$"i$ Fi$"i$4< 4< Ba<1" Ba<1" %$ Ma@1t Ma@1ti$4 i$4,, It is no doubt about the fa,t that L is

,onsid nside ered red to be A 0u41 0u41 ma@ ma@1t 1ti$ i$4 4
throng thronged ed the Indian Indian ,onsu ,onsumer mer durab+ durab+e e mar7et mar7et.. 5ompan 5ompanies ies su,h su,h as *hi+ips4 Sony4 Nationa+4 Samsung et,.4 have entered the mar7et over the past years. L 6as one of the +ate entrants into the mar7et and it has bro7en bro7en a++ re,ords. These mu+tinationa mu+tinationa+s +s that are ,oming ,oming into the mar7et mar7et have the +atest te,hno+ogy4 aggressive mar7eting and fat A!"#RTISIN budgets. budgets. ;o6ever ;o6ever in terms of sa+e and mar7et shares Indian ,ompanies ,ompanies sti++ o,,upy the top s+ots but MN5s are s+o6+y gaining ground. L is one ,ompany that p+ans to be,ome No. in this industry by the year B&&'. Dhen MN5 brands ,ome in4 they have the advantage of o6ning their te,hno+ogy. Indian brands fa,e prob+ems 6hen it ,omes to additiona+ features be,ause they have to buy from other sour,es and this ma7es their produ,ts move e8pensive vis@@vis the MN5 brand. In the past too4 the Indian mar7et has seen MN5 brands +i7e Sony4 0ptoni,a4 Sharp Sharp44 Thomso Thomson n et,. et,. but none none of these these ,ompan ,ompanies ies have have perfor performed med 6e++. 6e++. Reason being that these brands ,ou+d not estab+ish themse+ves hen,e there 6as no +asting impressions. No64 the trend is s+o6+y ,at,hing up in favour of MN5s 6ho are offering te,hno+ogi,a++y superior produ,ts. The reason for this

3

being that these MN5s has managed to ,onvin,e the Indian ,onsumer that there is more to them. Most of these ,ompanies have or are in the pro,ess of setting up manufa,turing fa,i+ities. This gives the ,onsumer a fee+ing of se,urity that they are here to stay. Another reason for their su,,ess ,ou+d be that MN5s entered the mar7et 6hen many Indian brands 6ere on a de,+ine and they have moved into those empty s+ots. Wit0 t01 2%mi$4 i$ % t01 %1i4$ 8a$"< t01 i$"u61 1>61$< $<1 1 % %u %u %$ %$ I$"i I$"ia$ a$ 2%m6a$i1<.

The attra,tiveness of L #+e,troni,s India in the ,onsumer durab+e industry ,an ,an be /udg /udged ed from from the the fo++ fo++o6 o6in ing g FI?E7FAC FI?E7FACTOR TOR INDUSTR! INDUSTR! ANAL!SIS ANAL!SIS MODEL E>ii
today f+an7s the ,onsumer durab+e mar7et. Dhen L entered the mar7et it had ,ompetition from E ,ompanies. The ,ompany at present fa,es ,ompetition from severa+ MN5 brands as 6e++ as +o,a+ Indian ,ompanies. 5rompton and 1a/a/ are the mar7et +eaders in this industry fo++o6ed by ,ompanies +i7e 0nida4 *hi+ips et,.4 giving ,ompetition to the ,ompany.  A+so every no6 and then ,ompanies 7eep on ,oming 6ith e8,hange offers 2A7ai3 ,onsumer s,hemes4 pri,e offer et,. L is one ,ompany 6hi,h 6hi,h be+iev be+ieves es in

No s,heme s,heme44 no s,hemin s,heming. g. Sti++ 7eeping 7eeping a++ these

offers into ,onsideration L has defied a++ the ru+es. I$ ma$3 a3< LG 0a< 6%#1" t% 81 t01 P16
7no6 6hat the ,ompetition is doing. >or e.g.4 in the +ast 6ee7 of May 6hen Sony 6as about to +aun,h its %),m "ega f+at monitors at Rs. C(4'C&4 dire,t+y ta7ing on L+atron monitor pri,ed at Rs. C%4'C&4 the ,ompany re+eased L

33

ads in the same pub+i,ation 6here the Sony ad 6as being re+eased4 on the same dates4 and on pages pre,eding the Sony adF L
;o6ever4 the ,ompany does +oo7 to have a bright future and its p+ans to be the No.  home #+e,troni,s 5ompany might /ust ,ome true ,onsidering the ne6 digita+ range that the ,ompany has +ined up for the ne6 mi++ennium.

3/

Li@1l3 N1 C%m61titi%$, The on+y ne6 ,ompetition that the industry is going

to fa,e in the ,oming years is from foreign brands. Sin,e in this industry there are tremendous entry barriers 2te,hno+ogy4 manufa,turing et,.3 on+y a foreign brand ,an pose threat to the ,ompany. A+so if mar7et +eaders su,h as 5rompton and 1a/a/ go in for some te,hno+ogy tie@ups 6ith foreign brand to have a,,ess to te,hno+ogy4 it ,ou+d be a threat to the ,ompany in the +ong run. These ,ompanies are ,onsidered to be the mar7et +eaders and if they start ,oming up 6ith produ,ts simi+ar to 6hat L is offering it ,ou+d pose a serious threat to the ,ompany. This 6ou+d ho6ever re=uire huge investments4 tie@up 6ith a g+oba+ +eader et,.4 to beat the MN5s4 6hi,h is not +i7e+y to be possib+e in the near future. ;o6ever4 any other g+oba+ ,ompany that ,omes into the mar7et 6ith its uni=ue mar7eting strategy 6ou+d definite+y be a serious threat to L. Su8
have a substitute to them. 1ut ho6ever a ,oo+er ,ou+d be a substitute to an A5 or an oven ,ou+d be a substitute to a mi,ro6ave Any6ay these t6o substitute are not very signifi,ant hen,e the industry is attra,tive to stay in.

3;

Ba4ai$i$4 6%1 % 8u31<, The buyers in this business ,an be divided into

t6o t6o i.e. i.e. the the dea+ dea+er ers s and and the the ,ons ,onsum umer er.. The The dea+ dea+er ers s in ,ase ,ase of L e+e,troni,s don
,an be divided into vi +o,a+ vendors and imported supp+ier from >ran,e. The ,ompany has greater ,ontro+ over the supp+ies from >ran,e. ;o6ever in ,ase of +o,a+ vendors vendors ,ompany ,ompany +ays do6n the terms and ,onditions ,onditions in advan,e so that no negotiations are ,arried out in +ater stages. The +eve+ of indegen indegenia iatio tion n in

L produ,t produ,ts s in about about $C per,ent. per,ent. The ,ompan ,ompany y

hopes to in,rease that to ECH 6ithin the ne8t ,oup+e of years and for that the ,ompany 6ou+d have to deve+op high =ua+ity +o,a+ vendors. L #+e,troni,s India being a subsidiary of >ran,e mu+tinationa+ has its o6n e8port division in the ,ountry. This 6as on+y set up after the ,ompany had estab+ished itse+f 6e++ in the +o,a+ mar7et. Its e8port operations 6ere started in ?an B&&B. The ,ompany p+ans to e8port in B&&)4 US J ).E mi++ion 6orth of goods to the e8porting ,ountries. 1y the year B&&% it p+ans to e8port US J %.( mi++ion 6orth of goods and by B&&' US J && mi++ion 6orth of goods. The ,ompany fo++o6s a

36

rigorous pro,edure in order to ,omp+y 6ith the ru+es and regu+ations of the ,ountry. ;o6ever4 in order to meet its above target of USJ && mi++ion e8ports4 the ,ompany 6ou+d have to ,onsider e8p+oiting more ,ountries in the neighboring areas and e8p+oit the potentia+ mar7ets to the fu++est. The e8porting ,ountryran,e. In the ,oming years it is p+anning to e8p+ore more internationa+ potentia+ mar7ets for its produ,ts.

;.- RECOMMENDATION Though L e+e,troni, has done fair+y 6e++ in the Indian mar7et4 but in order to gain a mar7et share in the +ong run4 ,ertain re,ommendation are high+ighted be+o6 based on the ana+ysis ,ondu,ted ear+ier and the ,on,+usions. •

LG <0%ul" 21at1 a ma<< ma@1t ima41 % it<1l i it a$t< t% a20i1#1 it< %8912ti#1 t% 812%m1 t01 ma@1t l1a"1 83 t01 31a -((), #ven to day

after three years of its e8isten,e in the mar7et4 the ,ompany has a premier image in the ,onsumers mind. If it 6ants to a,hieve the above stated ob/e,tive the ,ompany shou+d go in for mass mar7eting. The ,ompany has started moving on this path4 but despite that its premium image sti++ e8ists. To a,hi a,hiev eve e this this the the ,omp ,ompan any y shou shou+d +d ,rea ,reate te su,h su,h ,amp ,ampai aign gns4 s4 6hi, 6hi,h h high+ight the midd+e and the +o6er end ,onsumer a+so. >or produ,ts su,h as

34

the !I0S refrigerator4 >+atron T.". et,4 it shou+d high+ight them as premium produ,ts for the e+ite ,+ass. 0ther produ,ts su,h as $ ;ome #+e,troni,s or %C+t. Mi8er rinder shou+d target the +o6er end of the ,ustomer. •

LG <0%ul" 2%$21$tat1 m%1 %$ t01 ual ma@1t<, 5urrent+y sa+es of the

,ompany form a very insignifi,ant portion from the rura+ mar7et. It on+y a,,o a,,oun unts ts for for abou aboutt )& per per ,ent ,ent of the the tota tota++ sa+e sa+es. s. This This is very very +itt +itt+e +e ,onsidering the vast potentia+ that +ies in our ,ountry. The ,ompany shou+d ,onsid ,onsider er e8p+oi e8p+oitin ting g the untou, untou,hed hed areas areas of popu+a popu+atio tion n even even +ess +ess than than C&4&&&. It ,ou+d probab+y form groups of & to B su,h to6ns in a state and appoint a sing+e distributor for ea,h group. The entire responsibi+ity of se++ing the produ,ts shou+d be given to the distributor and his per performan,e shou+d be eva+uated after every C days. The ,ompany ,ou+d offer him attra,tive s,hemes and in,entives to do this. This ,ou+d be test mar7eted in a ,oup+e of states initia++y to find its su,,ess rate. •

I$ %"1 t% 1a6 l%$4 t1m 81$1it< t01 2%m6a$3 <0%ul" 4% i$ % 21tai$ 0%$1
se++ing their produ,ts via s,hemes4 offers et,.4 in order to survive in this ,ompetitive mar7et. It is =uite doubt fu++ that L 6ith its po+i,y of no s,hemes4 no s,heming 6ou+d be ab+e to do mu,h. The ,ompany definite+y does not have to go the A7ai 6ay but ,ertain s,hemes and offers 6ou+d he+p the ,ompany in the +ong run. Sin,e L be+ieves in va+ue mar7eting it does not have to go in for e8,hange offers 6here by you get a ne6 5itrus ?ui,er or T" if return the o+d one. ;ere the ,ompany has to sa,rifi,e on va+ue to get vo+umes 6hatever said and done. Some of the s,hemes that the ,ompany ,ompany ,ou+d opt for is 1uy a refrigerato refrigeratorr 2)&&+t.3 and a mi,ro6ave mi,ro6ave and get some rupees off or buy refrigerator  5itrus ?ui,er and get the 5itrus ?ui,er at ha+f the pri,e.

35

ANNEURES LG< Tu$%#1 i$ R<. C%1

B&&E B&&C B&&'

&)%& ,r )&&&,r '&&& ,r

   

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NA &4&&& B$B&&

NA C&&& %&&&

LG7Ma@1t S0a1 -(() P%"u2t Nam1

P121$ta41

Te+evision Refrigerators CC& 6atts $$& 6atts 5itrus ?ui,er >u++y Automati, Semi Automati,

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3<

 Air 5onditioners

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UESTIONNAIRE •

;o6 is L positioned versus other p+ayers in the mar7etO

•

;o6 is ea,h of its produ,t +ine differentiated from others: ;ome #+e,troni,s

A5
Refrigerators

Mi,ro6aves

Dashing Ma,hines •

;o6 has the produ,t mi8 ,hanged sin,e B&&EO

•

Dho are the target audien,es for ea,h of its produ,t +inesO 0n 6hat basis has segmentation been doneO

•

;o6 does the L supp+y ,hain operateO

•

Dhat is the ,urrent mar7et share of LO

•

Dhat does the +ogo !igita+ e< stand forO

•

Dhat are the most ,ommon+y used media to advertise for L produ,tsO

•

;o6 has the ad budget ,hanged sin,e B&&)O

•

Dhat a++ promotiona+ promotiona+ a,tivities does the ,ompany underta7e for: 

5onsumers



!ea+ers

3B

•

In Indi India4 a4 6hat 6hat is L
Cu
Name  Add 5onta,t

: : :

. !o you o6n  a6are of 5T"  !"! S,heme of L O  

es No

B. Dhere did you ,ome to 7no6 about these S,hemes from O     

 Ads on T"  Ads in magaine Through friends and fami+y  At sho6room  dea+er  dea+er  *aper Insert

). Dhat do you thin7 about this S,heme  ;o6 6i++ you rate it O     

*oor   Average ood "ery ood #8,e++ent

32

$. Are you satisfy 6ith this S,heme O  

es No

If No : C. Is there4 any ,omp+aint regarding this S,heme O  

es No

If es : (. Dhat 7ind of ,omp+aint4 you registered O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ %. Das there4 any a,tion ta7en by the ,ompany O  

es No

If No : E. If you had to ma7e improvements in this S,heme4 6hat 6ou+d they be O

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

33

333

D1al1< u1
. Dhether 5T"  !"! S,heme of L attra,ted the ,ustomers O  

es No

B. Dhat do you thin7 about this S,heme  ;o6 6i++ you rate it O     

*oor   Average ood "ery ood #8,e++ent

). Dhether the S,heme has he+ped to in,rease the sa+e O  

es No

$. Are you you satisf satisfy y 6ith 6ith the promot promotion iona+ a+ progra programs ms for the S,heme O  

es No

C. Is there any ,omp+aints against the S,heme O  

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ (. If es4 !etai+s of ,omp+aints O

 

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

33/

%. our suggestions for further improvement of the S,heme O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

BIBLIOGRAPH! BOOKS

Mar7eting Management @ *hi+ip Kot+er ;uman Resour,e Management @ Ash6athapa ;uman Resour,e Management @ T.N. 5hhabra INTERNET

666.+gei+.,om 666.goog+e.,om NEWS PAPERS

#,onomi, Times >inan,ia+ #8press Times of India Indian #8press MAGAINES

1usiness Today  A 9 M 1usiness India 1usiness Dor+d 1usiness Standard INDUSTR! REPORTS

Investors uide to Indian Industry B&&'

33;

COMPAN! LITERATURE

L *arivar the L in@house i n@house magaine. +oba+ Ne6s L 6ee7+y ne6s bu++etin.

336