“MARKETING STRATEGIES OF TOP FIVE BRANDS OF MICROWAVE”

“MARKETING STRATEGIES OF TOP FIVE BRANDS OF MICROWAVE”

CONTENT

1. INTRODUCTION

● About Product

● In Insight of Company History

● Mission & Vision

● Objectives

● Standing Position of Company

● Brand Value

2. OBJECTIVES OF THE STUDY

3. RESEARCH METHODOLOGY

4. MARKET ANALYSIS

5. CONSUMER GROUPS

6. PRODUCT PROFILE

7. MARKETING STRATEGY

● Pricing

● Positioning & Distribution

● Promotion

8. ABOUT COMPETITOR

● Competitor Product

● Price up Competitor Profile

9.   DATA ANALYSIS & ENTERPRETATION

10. LIMATATION

11. SUGGESTION

12. BIBLOGRAPHY

13. CONCLUSION

                              INTRODUCTION

          

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, 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 were 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 MICROWAVEs (C-TV) were no longer considered luxury items. However, there were 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. 

Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian players and dominating Indian market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and WASHING MACHINES.

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 have been maintaining the lead in the market 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 of the industry. The rising income levels double-income families and consumer awareness were the main growth drivers of the industries.

INDUSTRY PROFILE

The Consumer Durables industry consists of durable goods and appliances for domestic use such as MICROWAVEs, refrigerators, air conditioners and washing machines. Instruments such as cell phones and kitchen appliances like microwave ovens were also included in this category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment were as follows.

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08. More than 7 million units of consumer durable appliances have been sold in the year 2006-07 with colour MICROWAVEs (CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Air-conditioners together constitute more than 60 per cent of the sales in terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have registered double-digit growth in the direct cool refrigerator market.

In the case of washing machines, the semi-automatic category with a higher base and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32 per cent and that of split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite high, the markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas. The growth across product categories in different segments is assessed in the following sections.

Consumer Electronics

The CTV production was 15.10 million units in 2007-08 and is expected to grow by at least 25 per cent. At the disaggregated level, conventional CTV volumes have been falling while flat TVs have grown strongly. Market sources indicate that most CTV majors have phased out conventional TVs and have been instead focusing more on flat TVs. The flat segment of CTVs now account for over60 per cent of the total domestic TV production and is likely to be around 65 per cent in 2007-08.High-end products such as liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per

Cent respectively in 2009–10 following a sharp decline in prices of these products and this trend is expected to continue. The audio/video player market has seen significant growth rates in the domestic market as prices have dropped. This trend is expected to continue through 2009- 2010, as competition is likely to intensify to scale and capture the mass market.

                                                                                                   

COMPANY PROFILE

SAMSUNG – Introduction

Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunity for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader

Our Mission

Everything we do at Samsung is guided by our mission: to be the best “digital-Company”.

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our dedicated people will continue to embrace many challenges and come up with creative ideas to develop products and services that lead in their markets. Their ingenuity will continue to chart Samsung’s course as a profitable, responsible global corporation.

GROWING TO BE THE BEST 

Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best Company’ in terms of both the internal workplace environment as well as the external context in which the Company operates. Samsung aims to grow in India by contributing to the Indian economy and making the lives of its consumers simpler, easier and richer through its superior quality products.

“Our aim is to gain technological leadership in the Indian marketplace even as our goal is to earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh, President & CEO Samsung South-West Asia Regional Headquarters.

STRATEGY IN INDIA

Samsung India is the hub for Samsung’s South West Asia Regional operations. The South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India, which commenced its operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located all over the country. The Samsung manufacturing complex housing manufacturing facilities for Colour MICROWAVEs, Colour Monitors,

Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in India’ products like Colour MICROWAVEs, Colour Monitors and Refrigerators were being exported to Middle East, CIS and SAARC countries from its Noida manufacturing complex. Samsung India currently employs over 1600 employees, with around 18% of its employees working in Research & Development. 

The DNA of Digital Innovation

Samsung Electronics is a global leader in semiconductors, telecommunications, digital media and digital convergence technologies with 2004 parent company sales of US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over 90 offices in 48 countries, the company has of 5 main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics Corporation is the world’s largest pro ducer of Colour Monitors, Colour TVs, Memory Chips and TFT LCD’s. 

 Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its products according to the Indian market. It has set up a “usability lab” at the Indian Institute of Technology in New Delhi to customize Samsung products to meet the specific needs of Indian consumers. This industry-institute partnership is helping Samsung to study and analyze consumer response in aspects of product design, including aesthetics, ergonomics and interface.

 Through its research done on consumer preferences in India, Samsung has concluded that Indian consumers want more sound oriented products. Thus, the Samsung MICROWAVEs for India have a higher sound capacity than their foreign counterparts.

 For the semi-automatic segment of Samsung washing machines, Samsung has introduced for the first time in India a feature called Super Dry. It is present in three of Samsung’s semi automatic models and dries the clothes better than the rest.

 Samsung washing machines have an additional menu that takes care of the local Indian wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power failures in India.

PRODUCT PROFILE

650 Series Full HD LC D TV

Developed using our unique Crystal Design with a hint of

rose-red color accentuating a traditional piano-black

bezel frame, the 650 Series LCD TV features Auto Motion

Plus 120Hz, an Ultra Clear Panel, DNIe Pro and Wide

Color Enhancer Pro to provide perfect picture quality.     

                                                                                     

Wide Video MP3 Player (YP-P2)

Equipped with Bluetooth and a touch screen interface,

the YP-P2 lets consumers enjoy vivid videos on a 3-inch

wide LCD screen. Samsung’s proprietary DNSe 2.0

technology with EmoTure™ UI enhances the ultimate multimedia experience.

VRT Front Loading Washer

Designed with Vibration Reduction TechnologyTM (VRT),

our washer dramatically reduces barrel vibration—even

at the highest speed. It also reduces energy and water

consumption to the world’s lowest levels. Further, we’ve

enhanced washing performance and eco-friendly performance

with a diamond-shaped embossing drum.

6-in-1 Steam Oven

Simple, yet stylish, our 6-in-1 steam oven combines all of

the features of a conventional oven with advanced steam

cooking technology to stimulate healthier eating.

Samsung’s versatile steam cooking solution adds a

steam function to the conventional oven, grill and microwave,

as well as dry heat and fermenting.

Haptic Touch Screen Phones (SC H-W420/W4200)

Built with TouchWiz UI software, our Haptic model promises

a unique user experience, one that touches all of the

senses. The Samsung Haptic features one-touch access,

a widget for creating customized desktops and a G sensor

for automatic horizontal rotation of photos and videos.

It is designed for the innovative, ‘on-the-go’ user who

demands cutting-edge multimedia features, including a web browser.

 

Ultra-messaging BlackJack II (SG H-i617)

Microsoft’s Windows Mobile software-enabled HSDPA

smart phone boasts a bigger screen than the BlackJack

ROYAL PHILIPS ELECTRONICS

Royal Philips Electronics of the Netherlands is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”.

Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. Global Footprint Philips is a global leader across its healthcare, lighting and lifestyle portfolio: We are the world’s largest home healthcare company, being number one in: Monitoring systems, Automated External Defibrillators, Cardiac Ultrasound, Cardiovascular X-ray. We are number one in lamps in Europe, Latin America and Asia Pacific and number two in North America; in Automotive lighting, we are leading in Europe, Latin America, Japan and Asia Pacific. We are number one in the electric shavers and male grooming category globally. Philips is one of the leading flat-TV brands globally. Mission "Improve the quality of people’s lives through timely introduction of meaningful innovations." Vision “In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.” Values “Our Values reflect the ambitions we have laid down in “Vision 2010”, our recent strategy update. The Values, the four Ds, are like a compass – guiding us in how we behave every day, and reminding us of the attitudes we should have towards our work, our customers and our colleagues.” Delight Customers We anticipate and exceed customer expectations We demonstrate Passion for Philips and "sense and simplicity" We create superior customer experiences, based on deep insights We act as One Philips ambassadors all the time Deliver great results We continually raise the bar We play to win big and always set ambitious targets We challenge the status quo and experiment with new ways We take clear decisions and implement with speed and discipline Develop people We get the best from ourselves and each other We attract the best players to create strong and diverse teams We take risks by giving people stretch assignments to accelerate their development We personally invest significant time to coach and recognize people. Depend on each other We deliver more value by working as One Philips We think as One Philips and act as owners We trust and empower each other to contribute our best We team up and allocate resources to the most promising opportunities. Philips Electronics India Limited

Philips Electronics India Limited, a subsidiary of the Netherlands-based Royal Philips Electronics, is the leading Health and Wellbeing company. Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing people’s Health and wellbeing needs and aspirations as its overarching theme.                As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life. With recent launch of Philips Respironics product categories in obstructive sleep apnea management and home respiratory care, home decorative lighting range and ALU range, Philips products find use in virtually every aspect of an individual’s daily life 24X7 - at home, at work, on the move and at rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products with superior design and technology that enhance the quality of consumers' professional and personal lives.               Philips has been operating in India for over 75 years and employs over 4,500 employees around the country.  The company has an excellent pan India distribution and after-sales service network.             EVOLUTION OF PHILIPS AS A “BRAND” Wherever encountered, the Philips brand is a familiar sight in millions of households and buildings throughout the world with its instantly recognizable word mark of seven blue capitalized letters. Although the company has evolved and grown over more than hundred years, Philips’ visual brand identity is rooted in its early years at the beginning of the 20th century. Philips Identity Trademarked: Origins of the Shield Emblem              The now familiar Philips waves and stars first appeared in 1926 on the packaging of miniwatt radio valves, as well as on the Philigraph, an early sound recording device. The waves symbolized radio waves, while the stars represented the ether of the evening sky through which the radio waves would travel.                    In 1930 it was the first time that the four stars flanking the three waves were placed together in a circle. After that, the stars and waves started appearing on radios and gramophones, featuring this circle as part of their design. Gradually the use of the circle emblem was then extended to advertising materials and other products.                  At this time Philips’ business activities were expanding rapidly and the company wanted to find a trademark that would uniquely represent Philips, but one that would also avoid legal problems with the owners of other well-known circular emblems. This wish resulted in the combination of the Philips circle and the word mark within the shield emblem.               In 1938, the Philips shield made its first appearance. Although modified over the years, the basic design has remained constant ever since and, together with the word mark, gives Philips the distinctive identity that is still embraced today. Advertising Philips Brand Today      Whilst the logo of the company has been consistent since the1930s the way in which Philips has advertised and communicated to the outside world has varied. In general, until the mid-1990s all advertising and marketing campaigns were carried out at product level on a local market basis. This led to many different campaigns running simultaneously, not giving a global representation of Philips as a global company.               To establish consistent global presence, in 1995 Philips introduced the first global campaign in 1995 under the tagline “Let’s make things better”. This theme encapsulated the “One Philips” thinking and was rolled out globally in all markets and on all Philips products. This was also the first campaign that bought the whole company together, giving the employees a sense of belonging and providing a unified company look for an external audience.            In September 2004, Philips launched its “sense and simplicity” brand promise, which marked a new way forward for the company. “Sense and simplicity” reflects Philips’ commitment to be a market-driven company that provides products and services that fulfill the promise of being “designed around you, easy to experience and advanced”.              In 2008, the total estimated value of Philips brand increased by 8% to USD 8.3 billion and was ranked the 43rd most valuable brand in Inter brand’s 2008 ranking of best global brands. PHILIPS’ STRATEGY IN INDIA                  Philips India, is in a bid to aggressively push its sales in the rural/semi-urban segment and has designed an innovative strategy for these regions. Called the `Philips Mahasangram Integrated Marketing Programmes', the rural initiative will be taken across the country from July 2, focusing on rural towns with a population of less than 5,000 and semi-urban towns with a population between 5,000 and 50,000. , The Philips Mahasangram is aimed at taking Philips' new products to the semi-urban and rural customers and increasing their awareness where product knowledge, information and availability are concerned. An indication of the size of this initiative can be obtained from the fact that Philips will be spending about 4.5 per cent of its turnover from the rural/semi-urban areas on the Mahasangram alone.                   Meanwhile, the key reason behind this initiative lies in the growing potential of the rural market. According to industry data, while in 1997-98, rural sales formed about 25 per cent of the total sales for CTVs, refrigerators and washing machines, it increased to 36 per cent in 2001-2002 and is expected to go up to as high as 41 per cent in 2006-07. Apart from initiating new marketing and distribution programmes, Philips will also be launching a range of new products during the rural initiative. Meanwhile, Philips plans to implement an innovative FMCG style marketing strategy to push its durables in the rural segment. The Mahasangram Integrated Marketing Programme is essentially about implementing a non-durables strategy marketing in a consumer durable segment. The management is planning effective use of a number of media vehicles to ensure efficient communication of the message and maximum utilization of the money spent. The advertising and marketing strategy will be a combination of above-the-line and below-the-line/ on-ground activities.               Various promotional activities which Philips plans to initiate during the Mahasangram include a series of on-ground activities such as point of sale material at retailers' counters, road-shows, mobile vans with Philips products on display and games, innovative tactics like advertising on an inland letter form or postcard (a popular form of communication in rural areas) and sponsorship of local events, among other things.                   On the distribution front, Philips claims to have the biggest distribution network (as compared to other consumer electronics companies) and a high degree of penetration even in the rural and semi-urban areas. The company has carried out an extensive product-wise mapping exercise over 540 districts across India. Keeping in mind the objective of extensive physical reach of 80 per cent plus, where portable audio is concerned, the company has developed a second line of activity in the distribution set-up. Also, in order to cater to volume drivers i.e., major retailers, company has identified the main retailers of each distributor and practice the Key Account Management Approach with them, so that there is a focus on improving relations, trade with these retailers, and catering to their needs. These steps have helped in developing their volume reach, geographical reach and counter share significantly. Philips is hoping that its innovative rural marketing initiative coupled with the high growth in the rural market will boost its market share. How Philips India doubled its sales                    The company launched an aggressive new advertising campaign in print, MICROWAVE and online. The new tagline "Sense and simplicity" showcases the new brand promises -- using technology to make life simpler and easier. Company sources say Philips is counting on the new campaign to help it grow by at least 25 per cent this year. That's in the future, but how did Philips almost double its market share in under four years? Interestingly, the company didn't adopt radically different strategies. It paid attention to what customers wanted; passed on cost benefits; and brushed up its admittedly fuddy-duddy image. According to Mr. D Shivkumar, executive director, consumer electronics, Philips, "We have managed to grow the business by focusing on the price -- quality equation." The battle of perception                 Philips has been a household name in India for 75 years, but consumers associated the brand more with tube lights and transistors than cutting-edge technology. That's ironic, considering the company has made its mark globally as a technology leader -- it invented the cassette recorder, the compact disc and the DVD; the last in association with Sony.                But a survey by advertising agency JWT, which held the Philips account from 2001 (it has recently moved to Mudra), revealed that Philips technology was seen as reliable but not state-of-the-art.               Clearly, Philips needed an image makeover. It began by taking the technology route. Post-2001, advertising campaigns emphasised the company's technologically-advanced features.               Philips was the first audio company to launch an MP3 player (May 2002), and it made sure its communication played that up: "Don't buy a system if it doesn't have an MP3 player." Then there was the October 2002 campaign, in which a little boy uses the power of the music system to nudge the cookie jar off the top-most kitchen shelf.               The company was constantly refining the image of the company in the minds of the consumer, making it more modern. But that wasn't enough. That's where in-store displays and promotions that demonstrated the abilities of Philips products came in. In October 2003, JWT broke the "Ramu kaka" ad, where the manservant inadvertently inserts a roti into the DVD player.              The tagline made the message clear: "The new Philips DVD player plays anything". The campaign proved immensely popular - it was used in other Asian countries as well -- and Philips wasn't slow in leveraging its appeal. At live demos, customers would be invited to slip rotis into the player, creating a buzz around the product and the brand.             But that would probably appeal more to families and Philips needed to reach out to the youth, its target customer base. So it went to where the action was -colleges and rock festivals.            Philips set up stalls, complete with a professional DJ. Youngsters were invited to man the console, while the DJ gave them tips on mixing and spinning. And had huge walk-ins and could provide an involvement and experience with the brand. Clinch the dealer              Philips has successfully played the price card, but not all price cuts have been due to better or cheaper technology. In some segments like radios, it did away with trade discounts and passed on the savings to the customer. Two years ago, Philips' radios sold at Rs 600 -- a huge premium compared to the Rs 200 or so that other brands cost. In mid-2003, the company slashed the price to Rs 400 and even introduced new models at the Rs 160 price point, especially targeting the non-urban youth segment.              Not surprisingly, dealers were upset at their shrinking margins. Some started stocking competing brands, only to return, claim company officials, when they found volumes were increasing exponentially.             They soon realized it was more profitable to sell Philips radios because the turnover is much higher. To ensure the penetration and distribution happens, Philips changed its distribution strategy around two years ago. Distributors were now allocated smaller geographical territories so they can concentrate on getting firmer footholds in their areas. Distributor in upcountry markets, who were earlier allotted five or six districts are now given only two or three. And not all are given the entire product range so that the focus is sharper. Creating the value proposition              Philips realized early on that maintaining the price-quality equation is critical. That's especially true of the minis (DVD and VCD hi-fi systems) segment, which accounts for a quarter of the audio market in value terms. Even as Philips constantly raised the technology bar (MP3 players, deeper bass, sleeker, more streamlined systems), it's kept its prices competitive. The company prices its minis at Rs 8,000-25,000, compared with the market range of Rs 7,500-30,000.              Moreover, prices have been falling by 10 per cent on average every year. Of course, that's true for other brands as well but, Philips "found the sweet spot at which youngsters could buy".             How did it do that? By ensuring that it was perceived neither as a price warrior like Aiwa or Sansui nor prohibitively expensive -- Sony products are on average 10 per cent more expensive. Philips also brought in help from outside. In late 2002, it tied up with Countrywide and Citibank to provide accessible finance schemes for its products. Compared to equal monthly installments of about Rs 1,000 earlier, the new schemes let customers pick up state-of-the-art sound machines for as little as Rs 333 a month - that too, without a down-payment.            Has that helped? Consider: Philips entered the minis segment only in 2000, a year behind Sony. But it's now carved up the market with Sony, with 45 per cent share each. The company also paid close attention to customer feedback. It has ramped up the number of service centres across the country to 190, from 125 two years ago. Today, over 900 technicians now attend to complaints, up from 600 in 2002. LG ELECTRONICS VISION Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company GROWTH STRATEGY “Fast innovation, Fast growth” CORE COMPETENCY “Product leadership, Market leadership, People leadership” CORPORATE CULTURE No excuse, “we” not “I”, Fun workplace SLOGAN "Life's Good" represents LG's determination to provide delightfully smart products that will make your life good. The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good" set in Charlotte sans typeface curved around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature clearly 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 LG’s efforts to keep close relationship with our customers around the world. The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color. Red color represents our friendliness and gives a strong impression of LG’s 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 “Life’s Good”. It expresses“ Brand’s 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. STRATEGIC ALLIANCE LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies. LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies. "Strategic association between corporations," in which companies with different infrastructures cooperate in the fast-developing 21st century business field, is of key significance in terms of strengthening the existing industry and creating a new one. LG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies. 1. 3M 2. SUN 3. YAHOO 4. PHILLIPS 5. TOYOTA 6. MICROSOFT 7. HP 8. GOOGLE 9. GE 10.INTEL 11.NORTEL 12.HITACHI 13.PRADA 14.RENESAS 15.TOSHIBA 16.BESTBUY And the number follows many more………………………….. In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries. In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will work together to release, market, and offer LG mobile phones with Google services (search engine, map, email, and blogs). LG BRAND IDENTITY:- The brand of LG is delightfully smart. LG strives to enhance the customer’s life and lifestyle with intelligent features, institutive functionality and exceptional performance. The brand platform:- The LG brand is composed of four basic elements – 1. Value 2. Promise 3. Benefits 4. Personality The Brands core Value that never changes. a. Trust, b. Innovation, c. People d. Passion The benefits that are consistently delivered to the customer includes a)    Reliable products b)    Simple design c)     Ease of use d)    Extraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly LG INDIA LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility manufactured Color MICROWAVEs, Washing Machines, Air-Conditioners and Microwave Ovens. ''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shops and 38 are exclusive stores. Brand shops will be placed in the premium segment and the target audience will comprise buyers interested in premium and high end products. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings. LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new image. To attract inspirational and young consumers across India, company will roll out a new marketing strategy. The exercise will cost the company Rs 360 crore. LG Electronics India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today. 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. LG Electronics, which is originally a South Korean Company with branch in India, informed that its sales of GSM mobile phones, color MICROWAVEs, air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees. In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. INDIA CHALLENGES The challenges faced by LG when entered in Indian market 1. Low brand awareness about LG in India. 2. One of the last MNCs entered in India (Samsung, Panasonic        entered in 1995 in India). 3. High import duty 4. Compitition from local market players and other MNCs in      consumer durable segment. 5. Price sensitiveness of the Indian consumer LGEI over comes these challenges to emerge as Innovative marketing strategy 1.    Launch new technologies in consumer electronic and home       appliances. 2.    LG was the first brand to enter in cricket in big way a way,      by  sponsoring the 1999 world cup followed it up in 2003 as      well. 3.    LG brought in four captains of the Indian cricket team to  endorse its products. LG invested more then US$ 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 . 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 . Both the unit carry out R&D department for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product. Regional channel and wide distribution network 1.    LG has adopted the regional distribution channel in India. All the distributers work directly with the company. This has resulted in quicker rotation of the stock and better penetration into B, C, D, class market. 2.    LG also follows the stock rotation policy rather then dumping stock on channel partners. 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

             

        

COMPANY PROFILE

Brief Profile

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors:

1. Consumer durable

2. Thomson CPT

3. CRT glass

4. Oil and gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour MICROWAVEs, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Our compressor manufacturing technology in Bangalore further supports refrigerator manufacturing.

Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China,continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high

level of experience and technical expertise operating through Poland and India.

Videocon will leverage on this synergy after the Thomson acquisition to internally

source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Vision & Mission

Videocon’s mission: a reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and emerging realities:

“To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…”: the end

This segment not only underlines the importance of the ultimate goal – customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable

Videocon value chain (‘deliver’). As a result of its focus on developing loyal

customers and reliable associates, Videocon is able to exceed expectations.

“…Through ingenious strategy…”: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game plans, or sometimes changes the rules of the game.

STRATEGY IN INDIA

“…Intrepid entrepreneurship…”:

An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefooted

competence of the company’s in-house managerial talent.

“…Improved technology…”

Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the best-in-class offers of the times.

“…Innovative products…”

Product development, innovation and customisation are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front

“…Insightful marketing…”

The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences.

“…Inspired thinking about the future.”

The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon extrapolates future trends on the basis of current changes in

technology and preferences as well as sheer gut feel

.

The Haier Group is China’s largest home appliance brand and one of the world’s leading white goods home appliance manufacturers. Haier was founded in 1984 in Qingdao, Shandong Province, China and manufactures home appliances in over 15,100 different specifications under 96 categories. By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589 software intellectual property rights. Haier products are sold in over 100 countries. Haier is the official Home Appliances Sponsor of the Beijing 2008 Olympic Games.

v  Headquarters: Qingdao, Shandong Province, China

v  Employees: Over 50,000 worldwide

v  Financial Information: Haier’s global revenue in 2005 reached RMB 103.4 billion

v  Average annual growth of 68% between 1984 and 2005

v  No. of Subsidiaries Over 240

v  Listed Subsidiaries: Haier Electronics Group Co., Ltd. listed on the Hong Kong Stock Exchange

Qingdao Haier Co., Ltd. Listed on the Shanghai Stock Exchange

v  Business Scope: Technology research

o   Product development and manufacturing Trade

o   Financial services

v Global Presence:

·         Trading Companies: 64

·         Design Centers: 8

·         Industrial Complexes: 15

·         Sales Network: Over 58,000

v  Board of Directors

·         Chairman and CEO: Mr. Zhang Ruimin

·         President: Ms. Yang Mianmian

·         Vice Chairman: Mr. Wu Kesong

v  Recognition:

• Ranked 86^th among the world’s 500 Most Influential Brands by World Brand Lab in 2006. Only Chinese brand to be ranked in top 100 for three consecutive years

• Ranked 1^st among Chinese brands with the most potential by Glebors Global Financial Reports of Canada, 2006

• Ranked 1^st among China’s Top 10 Global Brands by the Financial Times in 2005

• Ranked 1^st among China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines in 2005
• CEO Zhang Ruimin ranked 6^th among Asia’s 25 Most Powerful People in Business by Fortune magazine in 2004

The Haier Group was founded in 1984 with headquarters in Qingdao, Shandong Province, PRC. In 1984, Haier produced only a single model of refrigerator, today it is one of the world’s leading white goods home appliance manufacturers. Under the leadership of Chairman and CEO Zhang Ruimin, Haier manufactures home appliances in over 15,100 different specifications under 96 categories. Haier products are now sold in over 100 countries around the globe.

Haier has over 240 subsidiary companies, over 110 design centers, plants and trading companies and over 50,000 employees throughout the world. Haier’s focused industries include technology research, manufacturing, trade and financial services.

The global revenue of Haier for 2005 was RMB 103.4 billion. Haier Electronics Group Co., Ltd. (HKG: 1169), a subsidiary of Haier Group, is listed on the Main Board of the Stock Exchange of Hong Kong. Qingdao Haier Co., Ltd. (SHA: 600690), also a Haier subsidiary, is listed on the Shanghai Stock Exchange. On 12 August, 2005, Haier signed an agreement with Beijing Organizing Committee for the Olympic Games (BOCOG) in Qingdao to become the official sponsor of the 2008 Beijing Olympic Games for white goods home appliances.

Unmatched Home Appliance Product Offerings Haier’s product categories range from refrigerators, refrigerating cabinets, air conditioners, washing machines, MICROWAVEs, mobile phones, home theatre systems, computers, water heaters, DVD players and integrated furniture, among which 9 are ranked market leaders in China, and 3 are ranked among the top 3 worldwide in their respective industries. Haier is also a world leader in the technology domains of intelligent integrated home furniture, networked home appliances, digitalization and large scale integrated circuits.

By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589 software intellectual property rights. Haier’s proposal for safe care water heater technology initiative was accepted at the 66th IEC Conference in 2002 and Haier dual drive washing machine technology was included in the 2006 IEC standard proposal. This clearly demonstrates Haier’s world-class innovation capabilities in product R&D.

GLOBAL BRANDING STRATEGY

Haier’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Haier’s international business framework encompasses a global network of design, procurement, production, distribution and after-sale services. Today, Haier has established 15 industrial complexes, 30 overseas production factories and bases, 8 design centers and over 58,000 sales agents worldwide.

In China, Haier’s 4 leading product categories - refrigerators, refrigerating cabinets, air conditioners and washing machines - have over 30% market share. In overseas markets, Haier products are available in 12 of the top 15 chain stores in Europe and 10 leading chain stores in the USA. Haier is now approaching its goal of being “local” in American and European markets via localized design, manufacturing and sales processes. In addition, Haier has set up production facilities and plants in the USA, Italy, Pakistan, Jordan and Nigeria.

Haier’s innovative management principles, such as Haier’s OEC management model, “market-chain” management and “individual goal combination” – a system of assigning incentives-based responsibility to staff to ensure the quality of products delivered to their customers – have gained high recognition among international management institutes. Haier business case studies are included in the text books of Harvard University, University of Southern California, Lausanne Management College, European Business College and Kobe University.

Services

With the concept of “customers as the foundation of growth”, Haier provides a one-stop star service to its customers. In a joint survey conducted by the China Consumer Association and the China Enterprise Research Centre of Tsinghua University on China’s domestic durable commodities for 2003 and 2004, 8 of Haier’s product categories were ranked No. 1 for customer satisfaction and overall satisfaction.

In addition to high quality home appliances, Haier is also focused on offering best-of-breed service solutions to its customers. Haier’s service system runs throughout the production process from product design, production, manufacturing, to pre-sale, under sales and after sales service. Since 2002, Haier has successfully established a network of over 5,000 domestic professional service suppliers to deliver timely customized service.

Partners

Haier has established an extensive sales network around the globe. Key partners in perspective markets include:

• China: Strategic alliance with Suning and Gome chain stores

• America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME DEPOT,   Best Buy, PC-Richard, Wal-Mart, Sam's, Costco, BrandsMart and Target

• Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and JUSCO

• Europe: Cooperation with KESA, Media Market and Carrefour

OBJECTIVES OF THE PROJECT

·       To find number of brands of consumer durable

·       To study brand preference of consumer for consumer durable goods..

·       To find most important parameter for selection of brand of MICROWAVE,

·       To study profit margin of major brands in consumer durable.

                        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.

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 buyer’s 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.  Research design specifies methods and procedures for study. In this study the company was interested to know the demand of different consumer durable product, about competitors, and potential for tv industry procedures to be used for the study among retailers/dealer and. However it was exclusively personal interview.

Data Collection:

This report was prepared after collecting data from the retailers/ dealers and past data was arranged from the various studies conducted in last few years and various other records of company. 

Primary Data:

These data were collected by personal interview with retailers/ dealer. For this purpose questionnaires were prepared in such that all necessary data would be collected.

Secondary Data:

Information regarding the project, secondary data was also required. These data were collected from various past studies and other sources of the company.

SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
100 Dealers
Research tools:
Questionnaires
RESEARCH AREA    SAGAR DISTRICT-

SCOPE OF THE STUDY

This project gives us great exposure to the consumer durable market because it includes product knowledge and field survey job in which we visited the consumer durable stores in SAGAR district.

While visiting the shops we 

1. Calculated the display share of the tv product in shop.

2. Collected the data of actual monthly sale of the tv  product in few shop.

3 Found out the problems that the dealer were facing while selling the different product.

4. Found out the customer response for different  products by asking the owner of the shop.

5. Checked whether demo calls were attended or not

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 $450 billion by on 2010

3. India has the youngest population amongst the major countries. There were 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 were 56 million people in middle class, who were earning us$4,400-US$21,800 a year. And there were 6 million rich household in India.

5. The upper-middle and high-income household in urban areas were expected to grew to 38.2 million in 2007 as against 14.6 million in 2000.

 

OPPORTUNITY 

1. In India the penetration level of white goods is lower as   compared to other developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e. increase in purchasing power of consumers.

5. Easy availability of finance.
 

THREATS 

1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian countries.

LIMITATION OF STUDY

Although I tried my best in preparation of this project, but this study has some limitation:

1.The period of the project was not sufficient to study all the factors in deep. 

2.Visiting various places for the study consumed a lot of time.

3.We cannot say that what the consumer have revealed will be right for each and every situation because their perception is influenced by many factors.

4.Many consumer and dealers/retailers showed less interest in providing information and haven’t cooperated.

5.Some of confidential information viz. credit period, schemes, policies and sales figure were not disclosed by the competitors.

THEORETICAL BACKGROUND OF THE STUDY

Scope of market research in view of modern global business.

            Research methods provide you with the knowledge and skills you need to solve the problems and meet the challenges of a fast-paced decision-making environment. Business research courses are a recognition that students in business, not-for-profit, and public organizations – in all functional areas – need training in the scientific method and its application to decision making. Two factors stimulate an interest in more scientific decision making: (1) the manager’s increased need for more and better information and (2) the availability of improved techniques and tools to meet this need.

During the last two decades, we have witnessed dramatic changes in the business environment. Emerging from a historically economic role, the business organization has evolved in response to the social and political mandates of national public policy, explosive technology growth, and continuing innovations in global communications. These changes have created new knowledge needs for the manager. Other knowledge demands have arisen from problems with mergers, trade policies, protected markets, technology transfers, and macroeconomic savings – investment issues.

The trend toward complexity has increased the risks associated with business decisions, making it more important to have a sound information base. Increased complexity means there are more variables to consider. The competition is more vigorous, with many business downsizing to make competitive gains. Workers, shareholders, customers, and the public are better informed and more sensitive to their self-interest. Government continues to show concern with all aspects of society. Each of these factors demands that managers have more and better information upon which to base decisions.

To do well in such an environment, you will need to be equipped with an understanding of scientific methods and a means of incorporating them into decision making. You will need to know how to identify good research and how to conduct it. This book addresses these needs.

As the complexity of the business environment has increased, there has been a commensurate, increase in the number and power of the tools to conduct research. There is vastly more knowledge in all fields of management. We have begun to build better theories. The computer has given us a quantum leap in the ability to deal with problems. New techniques of quantitative analysis take advantage of this power. Communication and measurement techniques have also been enhanced. These trends reinforce each other and are having a massive impact on business management.

 sources of collection of primary and secondary data for market research.

ta sources may be classified as either internal (organizational) or external sources of information.

Internal Sources

Internal sources of organizational data are so varied that it is difficult to provide generalizations about their use. Accounting and management information systems create and store much of the internal data. Research and development, planning, and marketing functions also contribute. Examples are departmental reports, production summaries, financial and accounting reports, and marketing and sales studies. The collection methods used are unique to the specific situation, and collection success depends on knowing just where and how to look. Sometimes the information may exist in central files (i.e., at headquarters), in computer database, or in departmental chronological files.

 In other organizations, a central library keeps all relevant information. Systematic searches should be made through exploratory interviews with everyone who handles the information. Often company librarians, MIS. PR/communications, or departmental secretaries can help in pinpointing critical data sources. Internal data sources may be the only source of information for many studies.

External Sources

External sources are created outside the organization and are more varied than internal sources. There are also better defined methods for finding them. This discussion is restricted to published sources, although other sources of information may be useful.

Published sources of data can be classified into five categories. The newest and fastest growing one is computerized database. They are composed of interrelated data files. The files are sets of records grouped together for storage on some medium. Access may be through online search or CD-ROM. Online databases are often specialized and focus on information about a particular field.

Major source of published information consists of diverse materials from special collections. Within this category there are many reference books, each a compendium of a range of information. A second group includes university publications, of which there are master’s theses, doctoral dissertations, and research records. A third group includes company publications such as financial reports, company policy statements, speeches by prominent executives, sales literature, product specifications, and many others. There are miscellaneous information sources consisting of the productions of various trade, professional and other associations. These organizations often publish statistical compilation, research report, and proceeding of meeting.

DATA ANALYSIS AND INTERPRETATION

Table No.1         Number of company’s product sold by dealers.

Sr. No.	PRODUCT	NO. OF RESPONDENTS
1	SAMSUNG	86
2	PHILIPS	67
3	LG	56
4	ABOVE ALL	92
	TOTAL	301

          Source:- Survey

Graph No. 1

INTERPRETATION:-

 According to survey, 86 dealers were sold only SAMSUNG, 67 dealers were sold PHILIPS and LG- 56 dealers were sold .and MOST OF THEM SOLD ALL  and 92 dealers were sold all product.

Table no. 2 shows no. of company’s product sold from dealer’s shop.

Sr. NO.	NO. OF COMPANIES PRODUCT	NO. OF RESPONDENTS
1	FIVE	33
2	FOUR	24
3	THREE	9
4	TWO	34
	TOTAL	100

                                                                                                                      Source:- Survey

                Graph No. 2

INTERPRETATION-

According to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2 brands from their shops.

Table No.3 Shows Major brand of C-TV sold by dealers.

Sr. NO.	BRAND	NO. OF RESPONDENTS	PERCENTAGE
1	LG	39	39
2	VIDEOCON	23	23
3	SAMSUNG	18	18
4	SANSUI	11	11
5	ONIDA	9	9
	TOTAL	100	100

          Source:- Survey

                                                           Graph No. :- 3

INTERPRETATION-

 According to dealers, in SAGAR district LG is leading in

C-TV with 39%, after that VIDEOCON is 2^nd with 23% and then SAMSUNG is on 3^rd with 18%.

Table No.4       Most important parameter for more sale of C-TV

Sr. NO.	REASONS FOR MORE SALES	NO. OF RESPONDENTS	PERCENTAGE
1	Price	28	28
2	Quality	30	30
3	Service	17	17
4	Advertisement	15	15
5	Schemes	10	10
	TOTAL	100	100

                      Source:- Survey

                                                            Graph No.4

INTERPRETATION-

According to dealers, Price is most important parameter for more sale of C-TV

and then Quality, Services, Advertisement and Schemes.

Table No. 5 shows the major brands of LCD TV sold by dealers.

Sr. NO	BRAND	NO. OF RESPONDENTS	PERCENTAGE
1	LG	22	22
2	VIDEOCON	13	13
3	SAMSUNG	9	9
4	GODREJ	12	12

                     Source:- Survey

               Graph No. 5

INTERPRETATION-

According to dealers, LG also leading in the LCD TV market in SAGAR district with 22%,

.

Table No.6 shows      most important parameter for more sale of LCD TV

Sr. NO.	REASONS FOR MORE SALES	NO. OF RESPONDENTS	PERCENTAGE
1	Price	27	27
2	Quality	32	32
3	Service	19	19
4	Advertisement	13	13
5	Schemes	9	9
	TOTAL	100	100

           Source:-Survey

Graph No. :- 6

INTERPRETATION-

According to dealers, most important parameter for more sale of LCD TV

is Quality and then Price, Services, Advertisement and Schemes.

Table No.7 shows Major brands of DVD sold by dealers.

Sr. NO.	BRAND	NO. OF RESPONDENTS	PERCENTAGE
1	LG	11	11
2	VIDEOCON	13	13
3	SAMSUNG	10	10
4	ONIDA	15	15
5	PHILIPS	22	22
6	SANSUI	12	12
7	SONY	8	8
8	INTEX	9	9
	TOTAL	100	100

           Source:-Survey

                 Graph No. :- 9

INTERPRETATION-

According to dealers, PHILIPS is the most popular brand in DVD market with 22%, after that ONIDA with 15% and VIDEOCON with 13% on 3^rd position.

Table No.8 shows most important parameter for more sales of DVD

Sr. NO.	REASONS FOR MORE SALES	NO. OF RESPONDENTS	PERCENTAGE
1	Price	21	21
2	Quality	42	42
3	Service	17	17
4	Advertisement	8	8
5	Schemes	12	12
	TOTAL	100	100

          Source:- Survey

Graph No. 10

INTERPRETATION-

According to dealers, Quality is major factor in respect of more sale of DVD, and then Services and prices were to be considered.

Table NO.9 shows High Profit margin brands

Sr. No.	BRANDS	NO. OF RESPONDENTS	PERCENTAGE
1	LG	21	21
2	SAMAUNG	18	18
3	WHIRLPOOL	16	16
4	VIDEOCON	13	13
5	SONY	11	11
6	GODREJ	9	9
7	PHILIPS	7	7
8	KENSTAR	5	5
	TOTAL	100	100

          Source:- Survey

                  Graph No.13

INTERPRETATION-

According to dealers, in Indian consumer durable industry

LG is leading company because of their low pricing policy and the better quality of product. SAMSUNG is on 2^nd position, if SAMSUNG will change their pricing policy like LG and VIDEOCON then SAMSUNG should be on 1^st position.

Table No.14 shows Suggestion from dealers for SAMSUNG to increase the business         

Sr. No.	SUGGESTION	NO. OF RESPONDENTS
1	FAST AND REGULAR AFTER SALES SERVICE	31
2	REDUCE PRICES	21
3	INCREASE DEALER MARGIN	15
4	ADVERTISMENT AT RURAL AREA	13
5	IMPROVE QUALITY	10
6	REGULAR SCHEMES	9
	TOTAL	100

                      Source:- Survey

    Graph No.14

INTERPRETATION-

According to suggestion of dealers, AFTER SALES SERVICE is most important factor which is helping to the SAMSUNG for increase the sales.  After that PRICES OF THE PRODUCT should be economic. DEALER MARGIN should increase for motivation of dealers.

FINDING

1. We came to know while visiting the shop most of the dealers sold entire consumer tv product including C-TV, LCD ,LED,PLASMA ETC. 

2. We know that during the survey in consumer durable industry in SAGAR district and       rural area of SAGAR district LG is leading in MICROWAVE,

3. Study shows that quality is most important parameter for more sale of MICROWAVE and then price is considered by consumers.

4. Study shows that quality of the product is most important parameter for tv  then price is considered by consumers.

5. While visiting the shop we came to know that quality is most important parameter which is affect on more sales of LED TVs.

6. According to Survey, Philips is most popular brand for DVD.

8. While visiting the shop we know that LG is gives high profit margin as compare to other competitors. 

9. While visiting the shop dealers suggested that after sales service is most important factor which contributes towards the sales of Consumer durables.

10. All the dealers were not satisfied with the profit margin.

11. SAMSUNG product is costly as compare to LG and VIDEOCON.

12. Maximum rural area is covered by the VIDEOCON because of their low price products.

13. We came to know while visiting the shops that there was big problem of after sales service.

14. Many dealers were facing the problem of after sale service because there is no follow up calls from SAMSUNG.s

15. Demo calls also not done properly.

16. LG and Videocon is the main competitor of   SAMSUNG.

17. Advertising of SAMSUNG CTV is more effective as compare to the competitors.

18. Sales promotion scheme were sufficient.

SUGGESTIONS &RECOMANDETION

·        Company should improve the after sales service of products as it is the main factor for the sales of consumer products.

·         If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then SAMSUNG will take over the LG in all categories.

·         Company should distribute free key chain, calendar,   t-shirts for making brand popular among people.

·         Company should introduce low price and low power consumption TVs for acquiring the middle income group.

·         Dealer desire more advertisement to be done through local newspaper and cable TV ads.  To make consumers aware about the product.

·         Prompt of service in time.

·         Advertisements of the company’s products should focus on quality rather then price.

·         Company should target upper middle class or premium class customers.

·         Company should introduce low cost products to satisfy the needs of low or middle class.

·         Demo calls as well as follow up Help Company to maintain customer relationship and hence the company should focus on these aspects.

CONCLUSION

·         With respect to the above study and the findings thereby, the company has definitely entrenched into the urban market.

·         With few more concerted efforts, the said organization needs to enter the rural market in order to completely establish itself all over.

                                     ANNEXURE

     A. Questionnaire

     Study of Consumer Durable Market for SAMSUNG Electronics Ltd. With                         

                                    Special reference To SAGAR district.

Name of shop:

Address:

 Contact no.:

1)      Which is consumer durable product you sold from your shop?

       □C-TV             □Refrigerator             □Washing Machine

             □DVD             □Microwave  

2)      How many no. of company’s product you sold from your shop?

            □ONE_______________________________________________

□TWO_______________________________________________

□THREE_____________________________________________

□FOUR______________________________________________

□FIVE_______________________________________________

□SIX________________________________________________

3)      Which is major brand of Colour-MICROWAVE you sold from your shop?

            □SAMSUNG                 □LG                 □ Videocon                  □ Onida

            □ Sansui

4)      What is the important parameter for more sales of Colour-MICROWAVE brand?

□Price                       □ Quality           □ Services               □ Advertisement                 □ Schemes 

5)      Which is major brand of Refrigerator you sold from your shop?

□ Godrej                      □ Whirlpool                 □ Kenstar                    □ LG

            □ SAMSUNG                □ Videocon                  □ Kelvinator

6)      What is the important parameter for more sales of Refrigerator brand?

            □ Price                       □ Quality          □ Services               □ Advertisement

            □Schemes

7)      Which is major brand of Washing Machine you sold from your shop?

            □ IFB                            □ Whirlpool                 □ Kenstar                    □ LG

            □ SAMSUNG                □ Videocon                  □ Kelvinator                □ Godrej

8)      What is the important parameter for more sales of Washing Machine brand?

□ Price                       □ Quality          □ Services               □ Advertisement       

□ Schemes

9)       Which is major brand of DVD you sold from your shop?

□SAMSUNG                 □ LG                □ Videocon                  □ Onida

             □ Sansui                     □ Philips          □ Intex                         □SONY

10)   What is the important parameter for more sales of DVD brand?

□ Price                       □ Quality          □ Services               □ Advertisement       

□ Schemes

11)    Which is major brand of Microwave you sold from your shop?

            □SAMSUNG                 □ LG                □ Videocon                  □ Kenstar

            □ Godrej                      □ Philips          □ Bajaj                                    □SONY

12)   What is the important parameter for more sales of Microwave brand?

□Price                       □ Quality           □ Services               □ Advertisement

            □ Schemes

13)  Which company’s product you give high profit margin?

□SAMSUNG                 □LG                     □VIDEOCON                   □SONY

            □WHIRLPOOL □GODREJ            □PHILIPS                         □KENSTAR

      14) What are your suggestions for SAMSUNG to increase the sales?

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BIBLIOGRAPHY

REFERENCES

BOOKS:-

Kottler Philip                                       :     Marketing Management

Chunawall S.A.                                    :     Essentials of Marketing Research

Kothari C.R.                                         :     Research Methodology

Sherlerkar S.A.                                    :     Marketing Management

Schiff man Leon. G.                             :     Leslie Lazar Kaunk                      

        

Magazines

Ø  Business world

Ø   Company’s Booklet

Websites

Ø  www.samsung.com

Ø  www.lgelectronics.com

Ø  www.videocon.com

Ø www.google.com

Newspaper

Ø  Times of India

Ø  Economic Times