MEERUT INSTITUTE OF TECHNOLOGYMEERUT

Submitted By:NIKHILMBA III Sem

SEMINAR REPORTON

“A STUDY ON CONSUMER PERCEPTION TOWARDS LG

ELECTRONICS”

COMPANY PROFILE Korean firms which together account for the 5th largest foreign investment in

India have outperformed Japanese and Chinese firms.

 LG echoes the sentiments of Korean president Roh Moo-Hyun. With a littlesupport from the government in terms of fiscal incentives, we can increase our exports from India manifold.

 For LG, India is one of its biggest global markets and therefore its strategies are much more aggressive to ensure huge growth. LG India has done a creditable job of making it big in the consumer durable market, roping in massive Rs. 5,500 crores in sales in the relatively short span of seven years. As a company we manufacture almost everything in consumer durable and electronics: colour televisions, refrigerators, washing machines, mobile phones and IT products like computer monitors.

 Our new plant in Pune, in addition to our current manufacturing facility at Greater Noida, U.P. (on the outskirts of Delhi) will enable us to expand its consumer reach and ensure better supply chain management that would translate into a faster response time.

OBJECTIVE OF THE STUDY Globalization has affected today’s market very towards the

competitiveness. There are so many domestic and multinational companies are growing up rapidly. Survival is being the core concept of the companies.

A company must know the strategy of the competitors because of it’s directly affects the company. So there is need for a company to his rival’s market potential market share and selling strategies.

Today the choice and preferences of consumer is also changing. Customer is now aware about the products. Customer is better educated more sophisticated. He is aggressive and critical who demands his money’s worth and pays only for what he wants and gets.

Dealers are the customers of the company and consumers are the main source of the information. This project is also having certain objective for which I covered both dealers and consumers all over Ghaziabad region. The main objectives of the project are following:

To study the LG’s advertising strategy vis-vis its competitors To see how effective is the promotional and positioning strategy of LG. To find out the problems faced by dealers in selling the LG products. To find out the market share of products of LG in Ghaziabad. To find out the most preferred brand in the market. To know the awareness level of consumers about the products of LG.

RESEARCH METHODOLOGY Methodology is the specification of the method for acquiring the information

needed to structure the study. Universe Universe for dealer survey was Ghaziabad. Universe for consumer survey was Ghaziabad. Sampling Size:Sample size for consumer survey was 100 covering houses and markets from

different areas of Ghaziabad. Company survey consisted of visiting 20 dealers of Ghaziabad.Sampling Techniques: For Consumers survey “Convenient Sampling” techniques was applied. For Dealer’s survey systematic and random sampling technique was used.Collection of Data: Secondary CollectionInternal Data: Went through some previous market studies provided by the guide. Previous summer training reports to grasp knowledge about white goods market. Study of product manual and salesman training report to get product knowledge.External Data: Scanning of various business magazines. Collected relevant information from the newspaper.

DATA PRESENTATION AND ANALYSIS

Brand-wise classification on basis of size(sq. cm)

37 5 1 2

64

83

7

1

4

4 196

29

4

4

0%10%20%30%40%50%60%70%80%90%

100%

Brands

Per

cen

tage

>600

300-600

150-300

0-150

Brand-wise Classification of advertisement on basis of prescence of a human model

7 29

5

8

3

5 4

3

143

18

0%

20%

40%

60%

80%

100%

Brands

Pe

rce

nta

ge

Yes

No

Brand-wise Classification of advertisement on basis of mostly Text/Illustration

5 4 728 17

416

4 2

8

22

0%10%20%30%40%50%60%70%80%90%

100%

Electr

olux(5

)

Godrej

(4)

Hitach

i(7)

LG(32

)

samsu

ng(19

)

Videoc

on(8)

Voltas

(6)

whirlpo

ol(18

)

Brands

Per

cent

age

Text

Illustration

FINDINGSA total of 100 consumers were taken into consideration for the

analysis. The survey covered different houses and markets in Ghaziabad.

Consumer’s Perception in Ghaziabad:Consumer’s Perception was analyzed on basis of various

variables. They are discussed below.Perception of factors affecting buying behavior:Various factors affecting buying behavior were asked to be ranked

by consumers in the questionnaire. They are plotted in a graph. From the graph, it can be observed that Brand is the puller

followed by Durability and Price, which act as the most important factors affecting buying behavior.

Perception on basis of recall of advertisement for Consumer electronic items:

Consumer electronic items include Television, Refrigerator and Air Conditioners.

Consumers were asked to recall the advertisement of any brand and their responses are measured and plotted in the graph.

CONCLUSIONThe result of success in today’s highly charged competitive market

depends not only in product innovation and level of productivity but also in hands of efficient service network with technological advancements and more adaptability towards information edge.

It has been seen that companies are trying to lower the cost of production and trying to give more emphasis in creating value added customer base and customer service. It has lead o extreme innovation and cost inclination to the marketer. It is also seen during last few years that the companies, which have more, efficient, and meaningful service network and also the companies who have controlled the cost of distribution have eventually controlled the market. Companies are finding that they can attract more customers by giving better service or lower prices through better physical distribution. On the other hand, companies may lose customers when they fail to provide service to its customers at the right time because a satisfied customer brings five new customers while a dissatisfied customer takes away fifteen.

SUGGESTION As explained previously there are two factors which effect the

consumer perception and consideration in buying a Air conditioners.

With Respect to company factors. With Respect to Dealers Factors. The prices of LG electronic items have to be competitive and have

to be reasonably comparable with other brands. As it was observed that besides also played an important role in

buying consideration by the consumer. As it was focused by the consumer in survey that brand Image

Plays. A Vital Role in electronic Market. They are the company LG need to focus on building a higher Brand Image. Through high class promotion and advertisement.

As we came to know that in non-branded electronic market, price in the crucial factor and their segment. Accounts for the substantial part of electronic market. There fore company should largest those customers. By introducing medium to high Rang of Product.

LIMITATIONSSome of the dealers as well as the customers were not

forthcoming with information as they thought it to be a waste of time. Some customers were not able to respond due to lack of awareness.

A number of dealers were biased towards a particular brand which was giving them better returns.

Some of the shop owners were not available so, contacted person was not able to present a fair view.

Respondent’s lack of time to give information and their casual attitude was a big hindrance in the study.

The dealers were biased by some recent experiences which they had with a particular distributor regarding the service or distribution.

Respondent’s lack of time to give information and their casual attitude was a big hindrance in the study.

ANNEXUREWhich of the following Age group do you belong ? < 20 yrs 20yrs to 35 yrs 35yrs to 50 yrs >50yrs Monthly Income: Less than Rs 3000 Rs 3000 to 9000 Rs 9000 to 15000 >Rs15000 Are you planning to buy any consumer electronics item within a

year? YES NO What is your total monthly household income? Less than Rs 3000 Rs 3000 to 9000 Rs 9000 to 15000 >Rs15000What all products of consumer electronics are there in your house? CTV: LG Samsung Sansui BPL Videocon Onida Other

BIBLIOGRAPHYJohnson & Scholes, "Exploring Corporate Strategy", Text

and Cases. Prentice Hall of India, 7th Edition, 2011Kotler Philip, "Marketing Management", Prentice Hall of

India, 2011.Wilson & Gilligan, "Strategic Marketing Management",

Viva Books Private Limited.Economic Times, July 2012, "LG Unplugged", Romi

Mukherjee.Business Today, April 2013, "Will LG be Lucky Enough

to Strike Gold", George Skaria. A&M 2013, February, "LG's Fine Push & Pull Strategy".www.lgindia.com