Branding & Promotion of LG Product

INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the
consumer durables market, accounting for no less than 90% of the market.
Then, after the liberalization, foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players
control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008.
It is growing very fast because of rise in living standards, easy access to
consumer finance, and wide range of choice, as many foreign players are
entering in the market
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for
consumer durables has increased significantly. Products like washing
machines, air conditioners, microwave ovens, color televisions (CTVs) are
no longer considered luxury items. However, there are still very few players
in categories like vacuum cleaners, and dishwashers
Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of
MNCs in consumer durables sector is 65%. MNC's major target is the
growing middle class of India. MNCs offer superior technology to the
Consumers whereas the Indian companies compete on the basis of firm grasp
of the local market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration level of the consumer
durables is still low in India.
Branding & Promotion
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Classification of consumer durables sector

1. Consumer electronic include Vcd/Dvd, home theatre, music player, color
television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc
2. White goods include dishwashers, air conditioners, heaters, washing
machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen
appliances, microwaves, built-in appliances, Tumble dryer, personal care
product etc.
3. Moulded luggage include plastics
4. Clocks and watches
5. Mobile phones
Scope:1. In term of purchasing power parity (ppp), India is the 4th largest
economy in the world and overtake Japan in the near future become the
3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on
2010
3. India has the youngest population amongst the major countries. There are
lot of people in the different income categories nearly the two third
population is below the age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year. And there are 6 million rich household in India.
5.
The upper-middle and high-income household in urban areas are

expected to grew to 38.2 million in 2007 as against 14.6 million in 2000.

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Brands in consumer electronics sector:

MNCs
LG
SAMSUNG
HYUNDAI
)
)
)
TCL
HAIER
)
)
CHINA
PHILIPS
HOLLAND
PANASONIC
SHARP
HITACHI
SANSUI
AKAI
AIWA
KOREA
NATIONAL
REGIONAL
ONIDA
VIDEOCON
BPL
GODREJ
VOLTAS
IFB
BUSH
CROWN
SALORA
T-SERIES
WESTON
BELTAK
OSKAR
)
)
)
)
)
WHIRLPOOL
ELECTROLUX
JAPAN
TODAY Consumer durables sector is characterized by the emergence of
MNCs, exchange offers, discounts, and intense competition. The market share
of MNCs in consumer durables sector is 65%. MNC's major target is the
growing middle class of India. MNCs offer superior technology to the
LG, SAMSUNG the two Korean companies has been maintaining the
lead in the industries with LG being leader in almost all the categories.
The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent,
is investing Rs 360 Cr on brand-building and other marketing initiatives and
around Rs 140 Cr on research and development, besides launching new
platforms in information technology and related areas,
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LG Electronics is one of the leading companies in the field of electronics with

a global presence in many countries. . Before briefing, I have divided the
introduction part into three main sub parts.
1. LG Global
2. LG India
3. LG BAREILLY
COMPANY PROFILE
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The LG Electronics Life's Good signature consists of the LG logo,

seal, and the slogan, "Life's Good" set in Charlotte sans typeface
curved around the LG symbol. The curving of the slogan reinforces
LG's personality and uniqueness. The consistent usage of this
signature clearly establishes the unique identity of the company and
unifies every division and product from LG Electronics across the globe.
THE SYMBOL:
The symbol of LG is the face of future. The letter L and G in a circle
symbolizes world, future, youth, humanity & technology.LG philosophy is
based on humanity. It also represents LGs efforts to keep close relationship
with our customers around the world.
The symbol consists of two elements.

1. The logo in LG gray
2. The stylized image of human face in the unique LG red color.

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Red color represents our friendliness and gives a strong impression

of LGs commitment to deliver the best.
The circle symbolizes The Globe. The stylized image of a smiling face in the
symbol conveys Friendliness and Approachability. The one eye on the
symbol represents Goal-oriented, Focused & Confident.
The slogan of LG is Lifes Good. It expresses Brands Value, Promises,

Benefits, Personality.
THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a
labor-management relationship rather than an employee-employer relationship.
This illustrates that management and workers are not in a vertical relationship,
but in a horizontal one.
This culture is necessary for LG Electronics as it strives to become one of the
world's top companies. Such a relationship is transformed into a value-creation
relationship whereby both parties endeavor to address mutual problems and
create new values together.
History of company:-
The company was originally established in 1958 as Gold Star, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and Gold Star,
from which the abbreviation of LG was derived. The current "Life's good"
slogan is a backronym. Before the corporate Name change to LG, household
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products were sold under the Brand name of Lucky, while electronic
products were sold under the brand name of Gold Star. The Gold Star brand is
still perceived as a discount brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith
Electronics of the United States.
Global Operation
LG Electronics is playing an active role in the world market with its assertive
global business policy. As a result, LG Electronics controls 110 local
subsidiaries in the world with around 82,000 executive and employees.
LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Business areas and main products

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Mobile communications
(a) CDMA Handsets,
(b) GSM Handsets,
(c) 3G Handsets,
(d)Cellular Phones
Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
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f) OLED Panels,
g) USB Memory,
Digital media
a) Home Theater Systems,
b) DVD Recorders,
c) Super Multi DVD Rewriters,
d) CDRW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment
LG Electronics will do its best to create new products and services with an
open mind, while developing new technologies and business fields through
various associations with some of the world's most successful companies.
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1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
And the number follows many more..
In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo

mobile services will be available from LG mobile. This service is targeting 10
million LG mobile phones in over 70 countries.
In Mar. 2007 LG Electronics and Google formed a strategic alliance.
Both companies will work together to release, market, and offer LG mobile
phones with Google services (search engine, map, email, and blogs.)
LG BRAND IDENTITY:The brand of LG is delightfully smart. LG strives to enhance the customers life
and lifestyle with intelligent features, institutive functionality and exceptional
performance.
The brand platform:Branding & Promotion

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The LG brand is composed of four basic elements

1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.

a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes

Reliable products
Simple design
Ease of use
Extraordinary Experience
Personality describes the human characteristic that are expressed to the
customer through
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Trustworthy, Considerate
Practical, Friendly
The Internal Culture of LG:

LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to

learn more and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the

levels of employees. There is transparency between the work and mutual
understanding between all the employees.
A carrier is highly growing in LG and one who is the employee can develop
their carrier largely. A new comer will feel fully comfortable in the company

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and for a new comer the company is very helpful in the overall
growth of personality.
Growth in LG is very high for those who are in the company and for those who
want to join in LG. The company is growing with fast innovation and the BLUE
Ocean strategy is one of the examples of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through
leadership.
The fundamental policy of development is to secure product leadership that the
Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
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Quality Innovation:
The policy of quality assurance is to provide customers with utmost satisfaction
by supplying zero defects.
LG proceeds in a hierarchal manner. It is named as LG WAY.

From top to bottom:
No.1 LG is the VISION
Jeong-DO Management is LGs unique application to ethics. LG will
succeed through fair management practices and constantly developing our
business skill.
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A) Honest with our customer

b) Providing great values to customer through constant innovation & and
development.
c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer
Code of conduct of LG:

1.
Responsibility and obligations to customers :

Respect for Customers
Creating Value
Providing Value
Fair Transaction :
Equal Opportunity
Fair Transaction Procedure
Support and Aid for Business Partners
Basic Ethics for Employees

Basic Ethics
Completion of Duty
Self Development
Fairness in Performance
Avoidance of conflict with company interest
Fair competition
Pursuit of Free Competition
Compliance with Laws and Regulations
5 Corporate Responsibilities to employees

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Respect for human dignity

Fair Treatment
Promoting Creativity
6
Responsibilities to society and country

Rational Business Development
Protection of stock holder interest
Contribution to social development
Environmental Conservation
LG INDIA:
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 after clearance from the Foreign
Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing
facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500
Crs.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater
Noida, India.
This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to
launch 60 premium Brand Shoppes by the end of the first quarter of this year. At
present, LG has a total of 83 LG stores across the country, of which 45 are
shoppes and 38 are exclusive stores. Brand shoppes will be placed in the
premium segment and the target audience will comprise buyers interested in
premium and high end products.

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LG Brand Shoppe goes beyond the concept of a normal exclusive

store by having a more interactive environment and additional lifestyle
orientation on display so that the customer can actually experience the LG
products in his or her own home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market
share, is planning a brand new image. To attract inspirational and young
consumers across India, company will roll out a new marketing strategy. The
exercise will cost the company Rs 360 Cr.
LG Electronics India is the fastest growing company in the consumer

electronics, home appliances, and computer peripherals industry today.
LG Electronics is continually providing, superior technology products & value
for money to more than 50 lakh households in India. LGEIL is celebrating the
11th anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG
Electronics' largest R&D centre outside Korea. We at LGSI focus on niche
technology areas such as mobile application development, digital video
broadcast and biometrics software and support LG Electronics with our
expertise. Motivated by a passion for technology, a strong work culture and
loyalty to the organization, we are determined to see LG become one of the top
three brands globally.
Prominent consumer electronic company, LG Electronics Inc. has said that it
expects the sale of its products in India to up by 15 per cent in 2008. Moon Bum
Shin, managing director of LG Electronics India has said that the company has
earmarked 4.8 billion rupees for investment purpose in India this year. The said
money will be used to market as well as manufacture new products.
Page 17
LG Electronics, which is originally a South Korean Company with

branch in India, informed that its sales of GSM mobile phones, color
televisions, air conditioners and other household goods in the Indian market was
to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the
sales in 2008 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on
catering to the high-end consumer market which will help boost sales this year.
India churns out six (6) per cent of LG Electronics global revenues of $42
billion. The Indian branch of LG exports to 40 countries.
Challenges in India
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.

2. One of the last MNCs entered in India (Samsung, Panasonic entered in
1995 in India).
3. High import duty
4. Compitition from local market players and other MNCs in consumer
durable segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as

Innovative marketing strategy
1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring
the 1999 world cup followed it up in 2003 as well.

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3. LG brought in four captains of the Indian cricket team to

endorse its products. LG invested more then US$ 8 million on advertising
and marketing in this sport.
4. LG has differentiated its product using technology and health benefits.
CTV has Golden eye technology Air conditioner has Health air
system and microwave ovens have the Health wave system.
Local and efficient manufacturing to reduce the cost

To overcome high import duties LG manufactures TV refrigerator in India at
manufacturing facility at Noida and BAREILLY. LGEI had already
commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs.
This has helped LGEI to reduce cost.
LGEI implementing the Digital manufacturing system (DMS) as the cost
cutting innovation this system is follow-up to the six sigma exercise LGEI had
initiate earlier.
R&D potential
LG has the research and development facilities in Bangalore and BAREILLY.
Both the unit carry out R&D department for the domestic as well as the parent
company it also dose customize R&D for the specific countries to which it
export product.
Regional channel and wide distribution network

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1. LG has adopted the regional distribution channel in India. All

the distributers work directly with the company. This has resulted in
quicker rotation of the stock and better penetration into B, C, D, class
market.
2. LG also follows the stock rotation policy rather then dumping stock on
channel partners.
Product localization:1. Product localization is the key strategy used by the LG

2. LG came out with Hindi and regional language menus on its TVs.
3. Introduced the low-priced Cineplus and sampooma for the rural
market.
4. LG was the first brand to introduce gaming in TVs in continuations of its
association with cricket LG introduce cricket game in CTVs

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LG market share of consumer appliances and consumer

electronic:LG position of CTV in various states in India
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG

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90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
LG
SAMSUNG
0.0%
LG position of REF in various states in India

Page 22
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
LG
20.0%
SAMSUNG
10.0%
0.0%
LG position of WM in various states in India
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG
VOLTAS
GODREJ
L
G position of AC in various States in India
Page 23
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
PHILIPS
30.0%
LG
20.0%
SAMSUNG
10.0%
VIDEOCON
0.0%
LG position of Audio & Home Theater in various in India
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
PHILIPS
SAMSUNG
VIDEOCON
L
G position of DVD in various in India
Page 24
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LG
SAMSUNG
KENSTAR
GODREJ
L
G position of MWO in various states in India
This analysis is based on the ORG survey conducted by LG which represent

the LG position of different consumer durables in various states in India. I select
different brand in different category as per the market share and the demand of
product in market. This analysis represents the LG market position during the
period of March 2008. It shows that LG has captured maximum market share
almost in every category. LG and Samsung have the maximum market in
consumer durable market but LG dominate the almost all the category in
consumer durable.
Page 25
Shin, managing director of LG Electronics India has said that the

company has earmarked 4.8 billion rupees for investment purpose in India this
year. The said money will be used to market as well as manufacture new
products.
LG Electronics, informed that its sales of GSM mobile phones, color

televisions, air conditioners and other household goods in the Indian market was
to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the
sales in 2008 would be around 110 billion rupees.
In order to achieve its target, Shin said LG Electronics will concentrate on
catering to the high-end consumer market which will help boost sales this year.
India churns out six (6) per cent of LG Electronics global revenues of $42
billion. The Indian branch of LG exports to 40 countries. Shin remarked that the
company was targeting an increase of exports to $300 million in 2008 from
$230 million in 2007.

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Distribution and Marketing

The company has number of dealers and warehouses. They have LG exclusive
shope. For the marketing of the products a number of activities are followed
1. Exhibitions are conducted from time to time.
2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the attention of the
costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meeting at several time in the
year
7. LG divide dealer in gold silver etc. category to know the performance of
the dealers.
8. They have their sales persons at various sub dealer store and at mordent
trade store for particularly for the promotion of the LG product.
9. LG also uses the radio FM for the promotion activities.
10.Also provide capon and scratch card for festive season.

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The logistics (Supply Chain Management)

Visit to warehouse of LG BAREILLY
Logistics is the art and science of managing and controlling the flow of goods,
energy, information, and other resources like products, services, and people,
from the source of production to the marketplace. It is difficult to accomplish
any marketing or manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing, material
handling, and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible.
Logistics Management is that part of the supply chain, which plans,
implements and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the point of origin
and the point of consumption in order to meet customers' requirements.
5Rs of Logistic followed by LG:
1. Right Time
2. Right Place
3. Right Condition
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4. Right Cost
5. Right Handling
The LG Factory is located at NOIDA . There are three types of Warehouse1. Mother Warehouse
2. Branch Warehouse
3. Spare part warehouse
The mother warehouse is that where the products from the factory are kept and
from that warehouse, the products are sent to the branch warehouse.
A warehouse is a commercial building for storage of goods. Warehouses are
used by manufacturers, importers, exporters, wholesalers, transport businesses,
customs, etc. They are usually large plain buildings in industrial areas of cities
and towns. They come equipped with loading docks to load and unload trucks;
or sometimes are loaded directly from railways, airports, or seaports. They also
often have cranes and forklifts for moving goods, which are usually placed on
ISO standard pallets loaded into pallet racks.
5s of warehouse, which the LG strictly follow.

1. Sweeping
2. Sorting
3. Systematic Arrangement
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4. Simplification
5. Self- discipline
In warehouse, the products are pinup with 3-color paper to get the knowledge
about the delivery.
1. Red Card To stop the product going into market,
2. Green card To allow the product for delivery in market,
3. Yellow Card After the product labeled with green, allow this to move in
market
Distribution Time: Local delivery
4 hrs.
Upcountry delivery - 12 hrs.

Within 200 km.
24 hrs.
Beyond 200 km.
48 hrs.
The above distribution time is the time of delivery of products from warehouse
to the market place, which the logistic department follows to fulfill the demand
in the market at right time. In LG, we have the following process, which is
followed in logistic through ERP.
Order Processing
Invoicing
Indenting
Report
Order Processing
booking for dealers /distributors

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Invoicing
after billing process/bill generation
Indenting
requirement (Pdt Unit to branch unit)
Report
distributed to all
In warehouse, there are two mode of dispersion of product from one place to
another within. a) Hydraulic
b) Manual
In addition, there are 35 fire extinguishers to prevent the accidental hazard

within the warehouse due to fire. These fire extinguishers are valid up to year
2011. One has to follow the rule of NO Smoking within the warehouse
Logistics Ten Commandments Golden Rules

1 - Warehouse 5S to be strictly followed FG 2, 5 & 7 to be properly
maintained.
2 - 100% Bar-coding for all inward & outward transaction.
3 - Follow standard pick ship process religiously.
4 No inventory mismatch, shortage or excess monthly 100% physical
stocktaking.
5 Nil 30+ for FG 2, 3 & 5.
6 Nil transit damage.
7 File insurance claim within 2 days. Settle all claim all within 30 days.
8 No inter branch transfer without HO clearance.
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9 PSI feeding into system by 25th of every month. Ensure 90%

accuracy.
10 Apply physical FMFO.
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
Equipments
1- 100% Bar code scanner.

2- ERP Invoice Generation Process.
3- Hydraulic Trolleys for material movement.
4- Pallets for safety of material.

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WAREHOUSE WITH THE EQUIPMENT.

Page 33
WAREHOUSE: REFRIGERATOR AND CTV SECTION

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CUSTOMER SERVICE
The best and the biggest international brands are here in India but the irony if
it all: where is the after-sales-service? So integral to a brand, so critical for its
success and so taken for granted in developed markets! In India, after sales
service is, for want of a better description, the pits. So whats stopping the best
companies from pulling out all the stops when it comes to providing the best
service? Do customers expect for too much? Or is it that in India they dont
really care. Brand Equity fanned out to MNC as well as Indian consumer
durable companies, stockiest and dealers, analysts and market researchers to get
a feel of whats really keeping after sales from being used as a cutting edge
marketing tool in pushing products across categories.
Customers support following the purchase of a product or service. In some
cases, after-sales service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is included in any
warranty (or guarantee) package. This will include the duration of the warranty
traditionally one year from the date of purchase, but increasingly two or more
years maintenance and/or replacement policy, items included/excluded, labor
costs, and speed of response. In the case of a service provider, after-sales service
might include additional training or helpdesk availability. Of equal importance
is the customer's perception of the degree of willingness with which a supplier
deals with a question or complaint, speed of response, and action taken.

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In the initial phase the company has entered into agreements

with ITIs in the states like Maharashtra, Gujarat, Delhi, Punjab,
Assam, and Karnataka and is in the last leg of signing with Uttar
Pradesh.
1. L G Electronics, with 1200 service centers, has already recruited 300
students and plans to beef up the number to 10,000 by the year-end.
2. "The company has offered a scholarship to the selected students for the
last six months of their training programme,"
3. The company will invest Rs 8 Cr (Rs 80 million) in employee
development programme this year with an aim to attain a 8 per cent
attrition rate.
4. The company moved away from the discounting strategy since last year
and is putting thrust on the quality and service in its brand
communication to position LG as a premium consumer electronics brand.
5. At the top, the Service Division in Korea reports to the Global CMO. (as
mentioned in Dermots public interview in ET on Wednesday). This
shows commitment that Service must be made into a marketing
differentiator, and leveraged thus.
6. LG has the widest service network across the country; some estimates put
it at a significant multiple of service-infrastructure from our nearest
competitor. While the sale size may also be a nice multiple from nearest,
it shows the company is ready to put our money where our mouth is.

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7. The company has introduced a 211 service - once you register

your complaint, we will call you back in 2 hours (hence 2), set up an
appointment for the next convenient day for you (hence the first 1), and
show up in the promised 1-hour slot (hence the second 1). If the next
convenient day for you is the next day, thats great too. Its a disruptive
action in an industry (including LG) having traditionally shied away from
its service responsibilities, and thus not leveraging any mileage from it.
8. The company is promoting 211 through ATL, probably the first time
after-sales service is being communicated in this fashion by any product
company. You may have seen the TV commercial or heard the radio
advert or seen the newspaper ad or in-shop posters, both of which revolve
around prompt response.
9. The first LG-owned service centre opened in Gurgaon. (Service in India
generally works through authorized service centers, in LGs case they
work exclusively for LG.) A company-owned service centre tries that
much harder, knows things better, and can even contribute as a revenue
center.

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CONSUMER SURVEY DURING EXHIBITION

From 16th to 25th May a consumer exhibition was organized at the college of
Engineering ground. The exhibition was sponsored by Sakal group in which
number of companies participated.
EXHIBITIONS PICTURES SHOWING THE PRODUCTS

Page 38
LITERATURE
REVIEW
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 after clearance from the Foreign
Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing
facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500
Crs.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater
Noida, India.
This facility manufactured Color Televisions, Washing Machines, AirConditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to
launch 60 premium Brand Shoppes by the end of the first quarter of this year. At
present, LG has a total of 83 LG stores across the country, of which 45 are
shoppes and 38 are exclusive stores. Brand shoppes will be placed in the
premium segment and the target audience will comprise buyers interested in
premium and high end products.
LG Brand Shoppe goes beyond the concept of a normal exclusive store by
having a more interactive environment and additional lifestyle orientation on
display so that the customer can actually experience the LG products in his or
her own home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market
share, is planning a brand new image. To attract inspirational and young
Page 39
consumers across India, company will roll out a new marketing

strategy. The exercise will cost the company Rs 360 Cr.
LG Electronics India is the fastest growing company in the consumer

electronics, home appliances, and computer peripherals industry today.
LG Electronics is continually providing, superior technology products & value
for money to more than 50 lakh households in India. LGEIL is celebrating the
11th anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG
Electronics' largest R&D centre outside Korea. We at LGSI focus on niche
technology areas such as mobile application development, digital video
broadcast and biometrics software and support LG Electronics with our
expertise. Motivated by a passion for technology, a strong work culture and
loyalty to the organization, we are determined to see LG become one of the top
three brands globally.
Shin, managing director of LG Electronics India has said that the company has
earmarked 4.8 billion rupees for investment purpose in India this year. The said
money will be used to market as well as manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in
India, informed that its sales of GSM mobile phones, color televisions, air
conditioners and other household goods in the Indian market was to the tune of
95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008
would be around 110 billion rupees.

Page 40
In order to achieve its target, Shin said LG Electronics will

concentrate on catering to the high-end consumer market which will help boost
sales this year. India churns out six (6) per cent of LG Electronics global
revenues of $42 billion. The Indian branch of LG exports to 40 countries.
.
PRODUCTS
(e) CDMA Handsets,
(f) GSM Handsets,
(g) 3G Handsets,
(h)Cellular Phones
Digital appliance
h) Air Conditioners,
i) Refrigerators,
j) Microwave Ovens,
k) Washing Machines,
l) Vacuum Cleaners,
m) Home Net,
n) Compressors for Air Conditioners and Refrigerators
Digital display
h) Plasma TVs,

Page 41
i) LCD TVs,
j) Micro Display Panel TVs,
k) Monitors,
l) PDP Modules,
m) OLED Panels,
n) USB Memory,
o) Flat Panel Computer Monitors
Digital media
l) Home Theater Systems,
m) DVD Recorders,
n) Super Multi DVD Rewriters,
o) CDRW,
p) Notebook PCs,
q) Desktop PCs,
r) PDAs,
s) PDA Phones,
t) MP3 Players,

Page 42
u) New Karaoke Systems,

v) Car Infotainment
Research Methodology
Research methodology is considered as the nerve of the project. Without a
proper well-organized research plan, it is impossible to complete the project and
reach to any conclusion. The project was based on the survey plan. The main
objective of survey was to collect appropriate data, which work as a base for
drawing conclusion and getting result.

Page 43
Therefore, research methodology is the way to systematically solve

the research problem. Research methodology not only talks of the methods but
also logic behind the methods used in the context of a research study and it
explains why a particular method has been used in the preference of the other
methods
Research design:
Research design is important primarily because of the increased complexity in
the market as well as marketing approaches available to the researchers. In fact,
it is the key to the evolution of successful marketing strategies and
programmers. It is an important tool to study buyers behavior, consumption
pattern, brand loyalty, and focus market changes. A research design specifies the
methods and procedures for conducting a particular study. According to
Kerlinger, Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to
control variance.
Types of research are:

Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have
in particular manner, making projections of a certain thing, or determining the
Page 44
relationship between two or more variables. The objective of such

study is to answer the who, what, when, where and how of the subject under
investigation. There is a general feeling that descriptive studies are factual and
very simple. This is not necessarily true. Descriptive study can be complex,
demanding a high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be
flexible in its approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed every now and then. It is therefore necessary,
the researcher give sufficient thought to framing research.
Data collection methods:

After the research problem, we have to identify and select which type of data is
to research. At this stage; we have to organize a field survey to collect the data.
One of the important tools for conducting market research is the availability of
necessary and useful data.
Primary data: For primary data collection, we have to plan the following
four important aspects.
Sampling
Research Instrument
Secondary Data - The Companys profile, journals and various literature
studies are important sources of secondary data.
Data analysis and interpretation
Page 45
1. Questionnaires
2. Pie chart and Bar chart
DATA ANALYSIS & INTERPRETATION

Q1. Have you purchased any consumer durable during Exhibitions?
Yes
No

Page 46
Inferences
1. 65 % of Customer have not purchased any consumer durable from
exhibitions.
2. Only 35 % people have purchased.
3. It shows that consumers are coming in the exhibition for knowledge of
product and also they want to know that weather there is actual price
difference in exhibition and shop or not.
4. Consumer also want to compare to the different brand which are available
in the exhibition.
5. So exhibitions are more useful to increases brand awareness.
Q.2While purchasing consumer durable which parameter influences you?

Price
Product feature
Brand
Service
Page 47
Durability
Inference
1. 30% of customer gives importance to price. So it shows that Indian
consumers are very price sensitive. They give more importance to price
over the brand.
2. 26% give importance to brand. So price and Brand matter a lots for the
costumers. And they are also want best brand in best price.
3. 19% to product feature Service 16% and durability 9% Service is also a
big factor for the customer they are less interested in the durability.
Q3. From where you prefer buying consumer durables

Exhibitions
Co.shoppee
Showroom

Page 48
Inference:
1. A majority of customers prefer to buy from showrooms. Very less
proposition of customers buys from Exhibitions.
2. 47% customers are prefer to by from the showrooms because the
showrooms are more convenient to customers they also think that these
shops give more discounts.
3. People are less interested to buy from the exhibition they only visit the
exhibition for price quotation of the product and the comparison of the
product.
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
Attractive Price
Service
Demonstrations
Page 49
Offers
Inference
1. Customers buy from showrooms because of the service and convenience.
These are two main factors.
2. Customers are preferred to buy from the showroom because of they think
that these convenient store may provide good after sell service.
3. Customer also thinks that there is more chance to bargain and they can
get more discounts in these showrooms.
4. Price also a factor that attract the customer in these showrooms.
Q.5.Which consumer durable you have and of which brand?

CTV
LCD
PLASMA
Page 50
REF
WM
MW
AC
Inference
In CTV section maximum customers have Onida, in LCD Sony is the leader, In
plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM
there are companies and in AC also.
Q.6. How frequently you change your consumer durables?

1-3 years
3-5 years
5-10 years
More than 10 years
Page 51
Inference
1. Customers prefer to change consumer durables within 5-10 years. In
India people do not change consumer durable frequently.
2. 23% customers do not change their consumer durable within 10 year.
3. It represent that Indian consumer do not prefer to change their consumer
durable frequently.
Q.7.Do you prefer any financing scheme to purchase consumer durables?

Yes
No

Page 52
Inference
Majority of customers do not prefer any financial scheme.
Findings
1. By calculating the display share we found that in most of store LG has
50% display share almost all categories.
Page 53
2. By the actual monthly sale of particular store we came to know

the capacity of the store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer
of LG or not and it also helps to find out the new dealer who are capable
of being the dealer of LG.
4. We also came to know while visiting the shops that there was big
problem of after sale service.
5. Many dealers were facing the problem of after sale service because there
is no follow up calls from LG.
6. Demo calls also not done properly.
7. The top competitor of LG product in BAREILLY is SAMSUNG.
LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.

Page 54
1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product
sale of different brands, which affected the perception of the customer.
This was biggest drawback of my study.
3. Time factor was also important for me. I had only 60 days to complete
my research, for which a full-fledged report was insufficient for me.
4. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
5. I had only found the upper-middle class family to fill up the
questionnaire, but generally, an average middle class family was required
for the study.
6.
The sample size is also very small which represent my research on

consumer behavior
My study is not recognizable in whole INDIA as well as outside Ranchi due

to the above limitations and less area coverage.
RECOMMENDATIONS AND SUGGESTIONS

Page 55
1. LG should improve its after sale service because its hits badly
LGs market share in Bareilly region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at frequent time
interval and feedback should be considered positively.
4. The company should look into the matter of person hiring for in shop
demonstration. A big LG showroom should have at least 2 such kind of
person.
5. LG should try new dealer who have the potential. So they can target more
market.
6. As there is a bottle neck competition between Samsung and LG, it is
necessary to take measure steps to overcome the area of downfall in LG
with respect to Samsung.
7. The marketing managers should make better relations with dealers and
reputation of the company.
CONCLUSION
Indian Consumer durables market used to be dominated by few domestic
players like Godrej, Voltas Allwyn and Kelvinater. But post liberalization much
Page 56
foreign company have entered into Indian market dethroning the

Indian player and dominating Indian market the major categories in the market
CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE
India being the second largest growing economy with huge consumer
class has resulted in consumer durables as the fastest growing industries in India
LG, SAMSUNG the two Korean companies has been maintaining the lead in
the industries with LG being leader in almost all the categories.
The rural market is growing faster than the urban market, although the
penetration level is much lower .The CTV segment is expected to the largest
contributing segment to the overall growth the industry. The rising income
levels double-income families and consumer awareness are the main growth
drivers of the industries.
Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest
nearly Rs 500 Cr in India this year in research and development, brand-building
and other marketing initiatives.
The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent,
is investing Rs 360 Cr on brand-building and other marketing initiatives and
around Rs 140 Cr on research and development, besides launching new
platforms in information technology and related areas,
BIBLIOGRAPHY

Page 57
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
LG magazine
Economics times News paper
Times of India
Questionnaire
Q1. Have you purchased any consumer durable during Exhibitions?
a) Yes
Page 58
b) No
Q.2While purchasing consumer durable which parameter influences you?

a) Price
b) Product feature
c) Brand
d) Service
e) Durability
Q3. From where you prefer buying consumer durables
a) Exhibitions
b) Co.shoppee
c) Showroom
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
a) Attractive Price
b) Service
c) Demonstrations
d) Offers
e) Convenience
Q.5.Which consumer durable you have and of which brand?

a) CTV
-------------------
b) LCD
-------------------
c) PLASMA
-------------------

Page 59
D) REF
-------------------
E) WM
-------------------
F) MW
-------------------
G) AC
-------------------
Q.6. How frequently you change your consumer durables?

a) 1-3 years
b) 3-5 years
c) 5-10 years
d) More than 10 years
Q.7.Do you prefer any financing scheme to purchase consumer durables?

a) Yes
b) No

Page 60

Branding & Promotion of LG Product

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INTRODUCTION

Classification of consumer durables sector

The upper-middle and high-income household in urban areas are

Branding & Promotion

Brands in consumer electronics sector:

TODAY Consumer durables sector is characterized by the emergence of

LG Electronics is one of the leading companies in the field of electronics with

The LG Electronics Life's Good signature consists of the LG logo,

The symbol consists of two elements.

Branding & Promotion

Red color represents our friendliness and gives a strong impression

The slogan of LG is Lifes Good. It expresses Brands Value, Promises,

Business areas and main products

In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo

The brand platform:Branding & Promotion

The LG brand is composed of four basic elements

The Brands core Value that never changes.

The benefits that are consistently delivered to the customer includes

The Internal Culture of LG:

According to LG, the Learning Culture continuously helps the employee to

Boundary less Environment means that there is no difference between the

Branding & Promotion

LG proceeds in a hierarchal manner. It is named as LG WAY.

A) Honest with our customer

Code of conduct of LG:

Responsibility and obligations to customers :

Basic Ethics for Employees

5 Corporate Responsibilities to employees

Respect for human dignity

Responsibilities to society and country

Branding & Promotion

LG Brand Shoppe goes beyond the concept of a normal exclusive

LG Electronics India is the fastest growing company in the consumer

LG Electronics, which is originally a South Korean Company with

1. Low brand awareness about LG in India.

LGEI over comes these challenges to emerge as

Branding & Promotion

3. LG brought in four captains of the Indian cricket team to

Local and efficient manufacturing to reduce the cost

Branding & Promotion

1. LG has adopted the regional distribution channel in India. All

Product localization:1. Product localization is the key strategy used by the LG

Branding & Promotion

LG market share of consumer appliances and consumer

Branding & Promotion

LG position of REF in various states in India

Branding & Promotion

LG position of WM in various states in India

LG position of Audio & Home Theater in various in India

This analysis is based on the ORG survey conducted by LG which represent

Shin, managing director of LG Electronics India has said that the

LG Electronics, informed that its sales of GSM mobile phones, color

Branding & Promotion

Distribution and Marketing

Branding & Promotion

The logistics (Supply Chain Management)

5s of warehouse, which the LG strictly follow.

Distribution Time: Local delivery